Capture 1

Winning More Business
Presented By:

Gregory A. Garrett, CPCM, PMP
Steven Shipley, &
Chanan Greenberg

December 2003
The Capture Management Life-Cycle
1
Key Topics of
Discussion:
The World WE Live In!
Creating Value for Customers
2
Increased U.S. Government
focus on outsourcing and
Privatization.
Increased pricing flexibility
More demanding Buyers
with special focus on Past
Performance
R
e
g
u
l
a
t
i
o
n

Supply Drivers
New Supply
Environment
Growth of Internet
architecture
Continued Growth of
wireless technology
product and software
applications
Rapid growth of
Enterprise software
tools
T
e
c
h
n
o
l
o
g
y

Pros
+ Wider range of products
and services
+ More modular products
and services
+ Improved price/
performance
+ Accelerated pace of
change
Cons
- More complexity
- Higher cost of
integration
- Less reliability
- Accelerated pace of
change
- Rapid Obsolescence
Dramatic Increase in Products and Services
Choices for Customers
The World WE Live In
3
Creating Value for Customers
Availability
of Resources
Trust

Best in
Class
Service
Quality of
Service
Speed
On-Time
Delivery
Trust
On-Time
Delivery
Maintainability
Breakthrough
Technology
Reliability

Best in
Class
Product
s
Capacity
Customer
Loyalty
Value
Trust

Best
Value
Deal
Price
Discounts
Financing
Relationship
Third
Parties
Quantity
Payment
Terms
Type of
Contract
Supply
Chain
Management
Supply
Chain
Management
From: The Capture Management Life-Cycle, by Gregory A. Garrett and Reginald J. Kipke, CCH 2003, pg. 4
4
Opportunity
Profile
Stakeholder
Buy-In
Capture
Project
Plan
Capture
Team
Kickoff
Bid
Development
Bid
Reviews
Opportunity
Growth
Contract
Fulfillment
Negotiation
and Contract
Formation
Stakeholder
Approval
Pre-Bid
Phase
Bid Phase
Post-Bid
Phase
3 Phases
10 Stages
Reference Text, pg. 15
5
The Capture Management Life-Cycle (Phases & Stages)
Pre-Bid Phase Bid Phase Post-Bid Phase
Opportunity Profile Stage
Qualify Opportunity and Risks
Gather Competitive Intelligence
Develop Win Strategy
Outline Opportunity
Stakeholder Buy-In Stage
Conduct Bid/No Bid Review
Obtain Strategy Alignment
Get Resource Commitment
Ensure Escalation Support
Capture Project Plan Stage
Identify Deliverables
Identify Work Tasks
Identify Timeline
Identify Resources
Develop Communication Plans
Capture Team Kickoff
Stage
Review Bid
Validate Capture Project Plan
Review Communication Plans
Review Proposal Development Plans
Bid Development Stage
Execute Capture Project Plan
Develop Solution
Develop Risk Mitigation Plans
Develop Business Case(s)
Develop Proposal
Bid Reviews Stage
Conduct Pink Team Reviews
Conduct Red Team Reviews
Obtain Offer Certifications
Stakeholder Approval
Stage
Review Changes, Solution, Risks
Review Business Case
Obtain Authority To Bid
Negotiation and Contract
Formation Stage
Respond to Customer Q&A
Conduct Oral Presentations
Conduct Negotiations
Develop Contract
Contract Fulfillment
Stage
Administer Contract
Manage Changes
Closeout Contract
Opportunity Growth
Stage
Collect Lessons Learned
Conduct Win/Loss Review
Solicit Feedback on Delivery
Identify Future Opportunities
Reference Text, pg. 27
6
7 Shipley Associates. Proprietary Information. All rights reserved.
A Case Study for Transforming the
Business Development Enterprise
Applying the BD-CMM
-- Business Development
Capability Maturity Model
in Real Time

Presented by Steve Shipley, President & CEO, Shipley
Associates

Capability Maturity Model

and CMM
are registered trademarks of Carnegie Mellon Software

Engineering Institute
Agenda
What is the BD-CMM?
Understanding the Fundamental Case A Real Life
Example
Attachments
Understanding the Origins of the BD-CMM
Partnering for Business Development Excellence
What is the BD-CMM?
What is it?
How does the BD-CMM fill a void in current
industry?
BD-CMM Overview
Key Process
Categories
Customers Focus People Capabilities
Themes
Increasing
Customer Value
Improving Performance
and Synergy
Building Competencies
and Teams
Enhancing Systems
and Processes
Levels Key Process Areas (KPAs)
5. Optimizing Innovation and Transformation
4. Managed
Relationship
Management
Enterprise Influence
Quantitative Process
Management
High-Performance
Teams
Business Development
System Integration
Infrastructure
Management
3. Defined
Solution
Development

Organizational Tactics
Quality Management
Organizational
Competencies
Development
Business Development
Processes
Support Systems
2. Repeatable
Response
Generation
Business Develop-
ment Administration
Quality Control
Individual Skills
Development
Sales/Capture
Procedures
Work Environment
1. Initial Ad hoc
BD-CMM Strategic Objectives
Provide a Framework
Description of key elements
of business development
Describe a Path
Evolutionary business
development improvement
path
Give support from a Guide
Key practices for measuring
and managing business
development performance
Being developed primarily as a
framework, guide, and path for
managing and improving
business development processes
Not currently envisioned for
process certification
BD-CMM, Other CMMs, and CMMI
CUSTOMER
COMPANY
BD-CMM PM-CMM
SW-CMM SA-CMM
SE-CMM HR-CMM
CMMI
Addresses major void in
CMM family
Typically not addressed
in business process
reengineering (BPR)
Provides customer-
facing dynamic to CMM
integration
Complements Project
Management CMM (PM-
CMM) in seeking to
improve the customer
interface
Understanding the
Fundamental Business Case
What is the business development challenge?
How does the BD-CMM envision success?
What are the potential benefits?
Is there a compelling value proposition?
Whats the resulting business case?
Emerging Benchmark Concept
Win
Rate
Capture
Ratio
Win
Rate
Capture
Ratio
Win
Rate
Capture
Ratio
BD-CMM Level-2 BD-CMM Level-3 BD-CMM Level-4/5
Note: Projections based on data collected during APMP Benchmark Study 2002,
prior national benchmark studies, and Shipley process consulting experience
BD-CMM Bottom Line Benefits
BD-CMM
Level
Numerical
Win Rate
Dollar
Capture Ratio
Numerical
Win Rate
Dollar
Capture Ratio
4/5 >40% >50% >65% >80%
3 >30% >40% >50% >65%
2 <20% <20% <50% <50%
1 <10% <10% <25% <25%
Focus: Few Large,
Strategic Opportunities
Focus: Many Small,
Routine Opportunities
Process Continuum
Note: Projections based on data collected during APMP Benchmark Study 2002,
prior national benchmark studies, and Shipley process consulting experience
Value Proposition Real Results!
Managed Implementation:
Mid-size company in the
Washington DC area
IT services industry
Federal, state, and local
government markets
Aggressive growth targets
Broad-based process
development in partnership
with Shipley
Effort begun in January 2003
Implemented BD-CMM
Level 1 in January 2003
Level 3 by end of July 2003
RESULTS:
Number of
Proposals
2
0
0
2

2
0
0
3

Y
T
D

1200
400
Win Rate
2
0
0
2

2
0
0
3

Y
T
D

65%
30%
Annual
Sales
2
0
0
3

A
n
n
u
a
l

G
o
a
l

2
0
0
3

S
a
l
e
s

b
y

M
i
d
-
Y
e
a
r

150%
100%
Business Case
What Success Really Means!
Assumptions at BD-CMM level 1:
$250M annual revenue, with average 2-year turnover
5% reinvested in BD = $12.5M
2% allocated to proposals = $5M
1200 proposals/year at a cost of $4.2K per proposal
30% win rate
360 wins per year to maintain $125M turnover
Average value of proposals won = $347K
Relative proposal process inefficiency = 35% (minimum)
Note: Notional analysis not based on actual client costs
Business Case
Assumed cost of BD-CMM implementation to grow
capability from level 1 to level 3:
Scenario #1 Managed services
Change management provided by outside consultants
Typical project duration of 6-12 months
$250K for outside process services, training, etc.
$500K for internal costs and charges
Scenario #2 Organic development
Change management provided by inside personnel
Typical project duration of 18-24 months
$1000K for internal costs and charges
Note: Notional analysis not based on actual client costs
Business Case
What Success Really Means! (contd)
Benefits derived at BD-CMM level 3:
$375M annual revenue, with average 2-year
turnover
$125M increase in annual revenue
3.3% reinvested in BD = $12.5M (constant)
1.0% allocated to proposals = $3.75M (reduced due to
greater efficiency)
400 proposals/year at a cost of $9.4K per proposal
65% win rate
260 wins per year to maintain $188M turnover
Average value of proposals won = $723K
Business Case
Calculated return on investment:
1.7% gain in BD effectiveness = $6.4M to bottom
line
Return on investment
Managed services ($6.4M $0.75M)= 8.5 to 1
Organic development ($6.4M $1.0M) = 6.4 to 1
Note: No other cost impacts considered in
calculation
Summary
Why should you implement the BD-CMM in
your organization?
Where can you get additional information?

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What is the Capture Management Life-Cycle?

What factors are driving changes in the supply environment?

Winning More Business

are registered trademarks of Carnegie Mellon Software

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