“Oh, &$@%#, not another &%^ing RFP!”
Requests for Proposal (RFPs) and runners have two shared characteristics. First, you see a lot of both of them. Second, nobody ever seems to actually enjoy either one. (To the runners I just offended: how come I never see you smiling?)
Clearly, we’ve become a nation of masochists.
But how else than an RFP to evaluate vendors and products? Form Follows Function. Your method of evaluation depends on the circumstances.
You generally face one of these three situations: (1) you fully understand your requirements and the market, and you need equivalent information from all suppliers; (2) you understand your business, have a general understanding that technology can improve it, and want open-ended suggestions on how different products can help improve or transform your organization; or (3) you need to choose a product from a well-defined category and need something that’s good enough. These situations call for different approaches.
When You Know Your Requirements
Here’s when you should write an RFP. Quite a few books (including my own Telecommunications for Every Business, Bonus Books, Chicago, 1992) provide detailed guidance. Three principles are worth mentioning here.
First, specify your design goals, not the means by which vendors should address them. For example, if you need a fault-tolerant database server, don’t say you need a system with redundant power supplies, backplanes, CPUs, and network interface cards. If you do you’ll get what you asked for (in this case, a system that frequently fails from software bugs). Instead, ask how the vendor ensures fault tolerance. Then you’ll learn one of the vendors provides mirrored servers with shared RAID storage for a lower overall cost and higher reliability.
Second, don’t withhold information. If you’re a Windows/95 shop, for example, don’t pretend to be open to other solutions. Just say so in your RFP. You’ll save both your vendors and yourself a lot of work.
And finally, if any vendor offers to “help you write your RFP” just laugh gently, compliment them on their sense of humor, and go onto the next vendor (who will make the same offer). Don’t take offense – they’re just doing their job. Don’t take them up on the offer, either.
Looking for Help
Sometimes, you don’t know all the questions. You know you want to phase out your nationwide SNA network, for example, but have an open mind regarding the best replacement strategy.
You can hire a consultant to help you write an RFP, I suppose … or, you can hold extensive conversations with a variety of vendors to learn what each has to offer. By doing so you’ll get a broader look at the market, and you’ll also get a wonderful education into the strengths (from each vendor) and weaknesses (from their competitors) of each approach currently selling.
In this example, you may find yourself talking to two frame relay vendors, a Transparent LAN Service provider, AT&T and Novell regarding their Netware Connect Services, and an independent systems integrator. You’ll benefit from an unstructured dialog in which each vendor can assess your situation in depth and describe a scenario of how their approach will work for your company.
When Good Enough Will Do
Let’s imagine you’ve been asked to select a new standard Ethernet network interface card (NIC). You could write an RFP or hold extensive conversations with sales reps, but why? Read a few reviews, ask a few basic questions, insist on a few evaluation units (to make sure they work and to learn about any installation glitches) and pick one. Flip a coin if you have to. It’s a low impact decision.
Oh yeah, just one more thing: very few of us make decisions based on logic. Salespeople know we make emotional decisions, then construct logical arguments to justify them. Don’t fall into this trap: recognize your emotional preference up front, figure out how much weight you should give it, and keep it from dominating your process.
All Posts in Policies and Procedures
Dealing with vendors (first appeared in InfoWorld)
When dealing with vendors, you’re probably your own worst enemy.
In a recent Peer-to-Peer, I wrote about unscrupulous sales tactics. From the flood of responses it seems many of you have had experiences that make you cry, “Foul!”
Some sales professionals do stretch an ethical point past its reasonable limits. Many get tarred with that brush unfairly. Whenever someone pushes every button available trying to make a sale, the button-owner may feel put-upon.
Nobody subordinates their own best interests to mine when our goals don’t match perfectly. Not my employer, not my wife, not my kids. Maybe our dog, Mrfe (I’ll explain that sometime), an airdale with a nice temperament and the IQ of burnt toast.
But I digress.
Don’t you make the mistake of confusing conflicting goals with a breach of ethics. People in sales don’t have your best interests at heart. That’s not their responsibility. They get paid to make the cash register ring. Helping their customers succeed should be an excellent way to make that happen, but it’s a tactic – a means to an end – not the end itself.
When achieving your goals doesn’t also benefit the vendor – when it’s not a win-win – guess whose fault it is. Hint: it isn’t the salesperson.
That leads us to the First Rule of Vendor Relations: The Responsibility for Creating a Win-Win Situation Belongs to the Customer.
You thought that was the vendor’s responsibility? Maybe from some notion of idealized, non-capitalist ethics. Not in any realistic business sense.
B.F. Skinner described the reality more than a century ago in his theory of behaviorism. Translated to sales it goes like this: sales professionals try a bunch of stuff. When something works, they do it again. When something doesn’t work, they stop doing it and try something different.
Over time, it’s the stuff that works that covers the landscape like behavioral kudzu.
Who’s responsible for deciding what works? You are! If you want salespeople to only sell you what actually helps move your business forward, then you have to buy only from the ones who exhibit that behavior, proudly showing the others the outside of your door.
Like pigeons in Skinner boxes, salespeople do what they’re rewarded for doing, and you get to play Skinner.
In interacting with sales people you have all the advantages. You define what you’re looking for – they have to find out. You define what you’re willing to spend to get it – they have to guess. You create the rules of interaction (and if you’re smart, you’ll enforce them) – they have to persuade you within those rules. Most importantly, you write the check and they want it, probably more than you want their merchandise.
Salespeople have to be polite to you. Your good manners are a matter of choice (and believe me, many customers see little need for exhibiting good manners to salespeople). Salespeople have to return every phone call and run down information as you ask for it. Most prospective customers put salespeople at the end of their return-phone-messages list.
And so on.
When you’re selling, your goal is to sell. When you’re buying, your goal is to obtain maximum value. These goals may conflict. Don’t take it personally. Recognize the situation and turn it to your advantage.
As a business tactic, sellers routinely create the appearance of a win-win situation. The vendor’s goal is to describe its products and services so as to create the perception of value in your mind, and to then deliver the specified products and services.
Do those products and services create real, as opposed to perceived value? That’s up to you.
Your vendor has to make sure its products and services do what they’re supposed to do. You (and your end-users) are responsible for defining clear business goals, attaching a dollar value to achieving them, and making sure the vendor’s products and services will actually change your business for the better.
And, it’s up to you to choose the right vendors and products. We’ll cover that subject next week.