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www.iccaworld.com
Bidding Masterclass 45 th ICCA Congress & Exhibition Monday 30 October 2006
International Congress & Convention Association
Malcolm Ross, Principal, Merlin Consulting Ltd. PO Box 153, 75 Old Bakery Street, CMR 01, Valletta, Malta Tel: +49+177625 2656 Fax: +4917799625 2656 Skype: callmalcolm eMail: [email protected] Web: www.consultmerlin.com
Bidding Masterclass, 16:00 – 17:30
2006 ICCA, Rhodes, Greece 30 th October 2006
Can bidders to host MegaCongresses learn from processes that yield 80% success rate in telecom license bidding?
There is no silver medal
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
3
Definition of an Expert: Someone who knows what they don‘t know
1. Presentation on process for bidding for telecom licenses, to provide new insights on bidding psychology, principles and techniques for senior, experienced ICCA members,
2. Openfloor discussion on which of these insights are useful for bidding for megacongresses
3. Discussion for ICCA members to share case study information on recent successful or unsuccessful bids for large scale events
4. Conclusions and actions
Agenda
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Our process has led to highestscore bid and/or win in 80% of bids Why is Merlin Consultants here?
Awarded License No. 1 NA Austria
Awarded License No. 1 NA Portugal
Awarded License No. 1 NA – Fixed Poland
Awarded License No. 1 NA – 3G Italy
Lost Did not follow advice NA – PCS Czech Rep.
Awarded License No. 1 NA – GSM Spain
Won, Won No. 1 NA – two regions Brazil
Lost No. 1 Fiat/Fininvest – GSM Italy
Lost No. 1 NA Israel
Acquired share 2nd highest bid Telkomsel partner Indonesia
Awarded License No. 2 PPlus Hong Kong
Lost No. 1 Coditel Belgium
Awarded License No. 1 NA Australia
Bought at lower price later No bid Bouygues France
Avoided loss No bid NA Canada
Lost No. 1 NA – GSM Spain
Awarded License No. 1 PCCW – GSM Taiwan
Awarded License Auction TCC – 3G Taiwan
Awarded License No. 1 TFN – Fixed Taiwan
Awarded License Auction KPN – 3G Netherlands
Awarded License Auction KPN – extension Netherlands
Awarded License No. 2 KPN – GSM Netherlands
Awarded License No. 1 EPlus Germany
Lost to Mannesmann (rank 5th) No. 1 BMW Germany
Result Bid Book Rank Bidder Country
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Our associates at CSKManagement have applied the same process to winning large industrial contracts
"The approach was professional, logical and effective, and the result was excellent. I can confirm our perfect satisfaction with the commitment and the output!"
Stephan Schüpbach, COO, Ascom Network Integration, Ascom AG
"CSK's contribution to produce the two worldclass bids was extraordinary, both in terms of the bid preparation procedures and work control and in terms of the quality of the final result. This work, prepared in a very short time frame, led to the award of two FWA licenses. CSK clearly have exceeded our expectations"
Leandro Fernandes, G9 SA Telecomunicações SA., Portugal
"Our proposals have improved drastically." Martin Brunner, Client Service Principal,
Global Services, IBM (Schweiz) AG
“The BidMaster approach is the most efficient and best structured method to increase the probability to win bids irrespective of the industry or complexity of the bid"
Brian Rüeger, COO, bmd wireless AG, Zug
Why is Merlin Consultants here?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Can bidders for association congresses learn from processes that yield 80% success rate in telecom license bidding?
n Situation: Many big congress centers and local congress bureaus, bid to host relatively few MegaCongresses (> 10k delegates?)
n Complication: Average bid hitrate is 20%, and a successful Congress Centre wins 3 – 4 MegaCongresses/year that fully utilise the facility. 50 – 150 days it is partially used, the rest empty
n Critical Question: Should we adapt to MegaCongress bidding any of the elements of successful telecom bidding?
n Value of Answering: Higher occupancy and so revenue yield; higher hitrate means can afford more effort per bid and fewer bids
n Answer: Explore our process to find the bits valuable to you 1. How much is it worth investing in a bid? 2. Should you even bid? 3. The process we use to capture and develop the bidprocess 4. The (now) 7 step bid process 5. The best team to win bids 6. Get the back office and logistics right for efficient bidding
Summary of Presentation
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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The (now) 7step process for winning telecom license bids increases both effectiveness and efficiency of bidding, but is still hard work
n Effective work: àIncrease hitrate from peeraverage of 20% to sustainable 80% àWe can then afford to put 4 times as much effort into all of the elements that potentially increase the chances of winning
n Efficient work: àFocus on the key winning elements, and save 50% of the work others do that is either not used in the final bid, or is „filling“
n Still hard work: àBidding is always highly competitive, as there are few other (legal) business activities with such a high RoI the value of winning is hundreds of times the investment in bidding, and can be achieved fast
àBursts of intense work AND intellectual challenge to create the best bid àCompetitors will learn from your success and copy, so next time you need to do even better!
1. How much is it worth investing in a bid?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Winning a telecom license bid and hosting a major sports event are similar in value, so it is worth applying the full process
n Value of a mobile license €100 – 250 per pop àGerman 2G mobile license: €3B Mannesmann share price uplift àGerman 3G mobile licenses: €8.4B paid each by six „winning“ bidders August 2000
à€2.32 B 3rd Egypt mobile license (2006) n Value of a major sports event
àWorld Cup (soccer) Germany 2006: €1.3B on building/renovating stadiums; €400M Government spending €3B spent by 5M spectators
àVancouver Winter Olympics 2010 (some double counting): CDA$ 0.2B surplus from entry tickets CDA$ 1.6 – 3.5B NPV Incremental longterm tourism impact CDA$ 0.6 1.4B NPV Incremental longterm congress impact!! CDA$ 1.1 B broadcasting rights
à„Hidden“ benefits: longterm awareness as destination; „goodwill“; cutting redtape in getting big infrastructure projects approved
1. How much is it worth investing in a bid?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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The effort involved in bidding for a telecom license bid and hosting a major sports event are similar n Bidding for a mobile license – once every few years
àActivity over 6 months – 8 years àTeam from 60 – 150 full time during peak activity (3 – 6 months) à10 – 40 external (e.g. Consultants, designers) so as not to disrupt day today business
àBudget €10 – 50M àMake firm performance commitments, often requiring major financial performance bonds or guarantees
n Bidding for a major sports event (e.g. Vancouver 2010 Winter Olympics) – once every few years àBegan preparations to bid in 1998; awarded host in 2003 for 2010 àBudget €24M à50% of team external specialists, consultants àMust show in bid all necessary construction approvals, funding guarantees, commitment of local and national Governments, and high approval ratings of local population
àSanction for missed deadlines is moving the Games to another venue
1. How much is it worth investing in a bid?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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The value of even a MegaCongress is 5% of a telecom license, and the Congress Center gets only 5% of this most goes to the host city
n Value of a Major Congress – but host several per year àMarch 2006 European Congress of Radiology
15,000 delegates, 45,000 overnights €27 M indirect yield for city of Vienna = €600/delegateday
àIMC Munich 25,000 at European Society of Cardiology, 15,000 at the European Society for Diabetes
€2 – 5 M fees from large meetings to the Congress Center €70 – 100 M to the Host City
n Value of Congresses is to the city not the Congress Centers àVienna (2005)
€503M to GDP, 10,600 jobs from 512 conventions and 1,236 corporate events; 863k overnights (11.8% of city totals)
àSan Diego Convention Center $25.5 M total revenue (2005) versus costs of $12.5 M $1.2 B economic impact on city
1. How much is it worth investing in a bid?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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So how much effort is worth putting into bidding for a mega congress?
n Based on bidding for telecom licenses or major sports events: à2 – 5% of license or event value à1 manday (specialist or external) per €50k €150k of value àCan afford 4 times this if an effective bid process raises success rate from 20% to 80%
àThrough efficient bid process this can be reduced 50% 4 – 10% of license or event value 1 manday (specialist or external) per €25 – €75k of value
n Does this mean for a megacongress: à1 manday (specialist or external) per 40 – 125 delegate days à300 – 1,000 mandays (specialist or external) for a 3 day 15,000 delegate MegaCongress – budget €0.6M – €4M!
àIf 50% of this effort is put in during a 3 month intensive bidding process, the team can be 2 – 7 full time equivalents
àThis level of investment makes sense to the host city, but not to the Congress Centre!!!
àSingapore Government funded the €8.3M budget to win World Bank Congress (Sept 2006) – 16,000 delegates, €50M income to city
1. How much is it worth investing in a bid?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Observations on Congress bidding from an outsider‘s perspective: n Boosting bidding effectiveness might shift the distribution of
megaevents, and reduce wasted bidding effort, but will not solve the global overcapacity in big Congress Centers àMany big Congress Centers should refocus away from megaevents àThe primary business of most big Congress Centers will remain soliciting subsidies from their host cities
àSpecialisation means fewer bidders per event, so less pricecutting n Seek some relief from proactivily creating more, new megaevents
àDemonstrate that congresses create supervalue to participants n Host cities rather than the Congress Centres should fund more
effective and efficient bidding for megaevents, n Bidding should be a professional process
àThoughtful selection of which megaevents to bid for, specialise and aim for 80% success rate
àPut full efforts into topquality for each of fewer megabids àExploit this to optimise a „production line“ of standard processes for the many smaller bids
1. How much is it worth investing in a bid?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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One of the most valueadding decisions is to „nobid“: half our bid success is choosing the right bidder to work for! n A financial analysis of a mobile network for Canada showed low
population density, vast coverage area and additional expenses working in extreme winter conditions make a 3rd mobile license nonviable, so we convinced our client to nobid
n In most bids there is no „silver medal“ – if you are not the best, you get nothing
n Also look for any possible „consolation prize“ – „offsetting“; prefered bidder next time round; practice to gain experience
n There is no emotion, optimism or pessimism in the bid/nobid decision – it is a cold evaluation of your performance relative to other potential bidders on the „client‘s“ decision criteria
n Walk away if for example: à They have already made up their minds, or have a strong, long
term relationship with a competitor à They need „two more bidders to meet our competitive bid rules“
n Nobid on a lowchance opportunity leaves you more resources to focus on opportunities where you have an 80% chance
2. Should you even bid?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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In most bids most bidders are wasting their time and money: only rarely do unexpected winners emerge
n As in most open competitive bids, half the bidding cities for hosting Olympics get 1 or no votes, and in 37 of the last 41 games, the leading city in round one is the eventual winner; in the other 4 cases the winner was number 2 in the 1st round
n In many cases the winner is predetermined before the request for bids is issued à By formal or informal agreement – „Barcelona will host 3GSM for
next X years“; „we always meet in Chicago“; the association Chairman has set his/her mind on a specific city;
à By rotation – „it is London‘s turn“ à By logistics – „only five congress centres are big enough“ à One bidder wrote the RFP (request for proposal)!
n In many bids, the rules insist on a minimum number of bids, and so the bid organisers scurry around persuading nohopers to bid
n To pressure the preferred bidders to improve their offers, often bid organisers attract „no hope“ bidders desperate for any contract
2. Should you even bid?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Rank our ability relative to rivals to meet decision makers’ and bid requirements What is our optimal positioning?
nThe National consortium
nRollout within X months (faster, more features than required) nBest track record with suppliers
1 = poor; 5 = excellent
FILL IN
Familiar with local environ.
Fast rollout Strong relations
w/ suppliers
Employment growth
Advanced features at launch
5 2 4.5 4 5
Stakeholders’ Requirements Bid Requirements
99% geographic coverage
5
Consortium
illustrative!
2. Should you even bid?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Our bidding process is based on experience: we learn from each loss, mistake or new idea – develop/improve your own bidding process! n When Tiger Woods (worlds best golfer) makes a mistake he goes
back after the game and replays that shot hundreds of times until he consistently gets it right
n Our 7step (was until recently 6step) originated after losing bids à German 2nd mobile license – not present in the „establishment“
that saw this as an element of bigger stories à Italy 2nd mobile license – we had the two most powerful men in
Italy (Agnelli; Bellisconi), but they were lobbying for other prizes à Belgium 2nd mobile license – we prepared 8 years longer than
others, but another bidder offered an unrealistically high price à Israel – we did not push hard enough to use a temporary „zero
tariff“ to exploit a „bug“ in the bidding process n Rigorously postmortem every bid, lost or won learn the good, the
bad, the ugly from the client‘s evaluation of you and ALL competitors
n Use a rapporteur to capture both content and process of all your discussions on approaches to bidding
3. The process we use to capture and develop the bidprocess
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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We have identified seven factors that are essential for winning bids – what is the analogous list for winning „MegaCongresses“? 1. Political connections and consortium commitment
2. Identify all interested parties and decision makers and attempt to satisfy each.
3. Construct a logical and complete message tree why they must choose you
4. Produce a totally compliant response to the invitation
5. Produce the best possible credible promise
6. Ensure it is easier for the decision makers to say “no” to rival bidders than to us
7. Behave as if you have already won
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
18
1. Political connections and consortium commitment
n Politics is always important as a license is seen as a public asset to be bestowed wisely
n There are more bidders than there are licenses
n Winning therefore often will depend upon lobbying and the power of the connections
n The bidder should have at least one local member who can
à within 20 minutes arrange a meeting with any influencer of the decision (including the Head of State),
à be committed to spending at least one day a week lobbying for our success,
à and NOT to have any other agenda during the bid duration
à best if they can give key inputs to the RFP
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Example: Germany wins right to host 2006 World Cup
n „...the most powerful country in Europe did everything they could to make this happen. Their bid was led by footballing legend Franz Beckenbauer, who was joined by Chancellor Gerhard Schroeder, tennis superstar Boris Becker and supermodel Claudia Schiffer.“
n The New Zealand delegate abstained, making it 12:11 in favour of Germany – „...there was nothing imagined about the pressure on Dempsey. .... amongst the calls he had received were ones from former South African President Nelson Mandela and British Prime Minister Tony Blair.“
Source: http://www.wsws.org/articles/2000/jul2000/cupj12.shtml
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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1. Connections to the top levels of the MegaCongress organisation – who do we need to persuade, who should do the persuading and how do we get them committed to doing it?
n Who locally can influence the opinion of the toplevel? Any old school friends live here? Who are local respected world experts in the field?
n How do we get these local people to lobby on our behalf? How do we ensure they are 100% committed to us and our cause?
n How do we support them to lobby effectively?
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Good citizen culture, tennis, beer, glass Proof of fast rollout (May 15) Affordable pricing for consumers (20% NMT) Regional jobs and technology transfer/training Support move to EU Create a healthy business
Introduce new services and technology Local content Reliability and accessibility Economic gains and jobs Boost industry become a leader again Show ease of regulation Credibility, experience and low risk
Improve management training in country
Seen as a local entity through partners Nationality of technical partner
Stimulate fixed network growth large customer Help exports through increased reachability
Marketing: market share, distribution Support constructive competition
Boost local economy Educate decision makers
51% equity of operator with 100K GSM subs. Financial consideration with high equity
Requirements Jones Smith ... ... ... ... ... ... ...
4. The (now) 7 step bid process
2. Identify all interested parties and decision makers and attempt to satisfy each a matrix of all influencers, and each of their key drivers that the bid book and /or lobbying should seek to satisfy
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Higher percentage of members turnup Primary business of congress achieved Memorable location Fun events Great feedback from the delegates Everything goes right No problems, no scandals
Easy to get to Seen as a business not resort destination
We can try new elements Safe, secure and healthy location
Get reelected as head of Association Congress makes a big financial surplus
Requirements ... ... ... ... ... ... ...
4. The (now) 7 step bid process
Who are the MegaCongress decision makers and influencers, and what are their key drivers?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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3. Construct a logical and complete message tree why they must choose you tell the decision maker why they must choose you, with a pyramid of unassailable arguments supported by proven evidence
n The team develops a complete and logical ‘pyramid’ for the bid document to sell the offer effectively and facilitate writing
n Messages capture and sell vision and strategy at main, section, and subsection levels
n Messages comply with RFP (request for proposal) requirements and relate logically (RFP usually not logical!)
n Messages identify what to write in every few paragraphs, drastically reducing writing time/effort (50% or more)
n Use summaries as the 30 second „elevator pitch“ at each level of the document and in lobbying
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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Writing and editing the bid according to the logical pyramid structure ensure that the team produces an unbeatable document
n Imposes one voice, one style
n Identifies remaining gaps
n Fully coordinates messages and text
n Facilitates translation
n Ensures 100% compliance with RFP
n Strengthens team spirit à Simplified process
à Intensive, sidebyside effort à Everyone can see where their bits fit and support the pyramid
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
25
Strategic partnership between PhoneCo and TeleCorp will enable both companies to leverage our strengths and to position in the Freedonian market a leading, profitable, worldclass mobile network operator, whose highly skilled staff continually meets customer needs with
competitive, innovative services.
Strategic partnership between PhoneCo and TeleCorp will enable both companies to leverage our strengths and to position in the Freedonian market a leading, profitable, worldclass mobile network operator, whose highly skilled staff continually meets customer needs with
competitive, innovative services.
Together, we will grow the Freedonian mobile communications market to X million subscribers in YEAR, and obtain a leading PP% market share in YEAR by targeting segments over time with high quality services and
competitive packaging, using the most effective distribution channels and aggressive communications.
Together, we will grow the Freedonian mobile communications market to X million subscribers in YEAR, and obtain a leading PP% market share in YEAR by targeting segments over time with high quality services and
competitive packaging, using the most effective distribution channels and aggressive communications.
TeleCorp offers its experience and
expertise to ensure that our partnership rapidly designs, rollsout,
operates and maintains a costeffective,
flexible, and reliable network offering basic and Value Added
Services.
TeleCorp offers its experience and
expertise to ensure that our partnership rapidly designs, rollsout,
operates and maintains a costeffective,
flexible, and reliable network offering basic and Value Added
Services.
Together we will build an organization based
on effective and efficient customer and operation processes, working together as peers to nurture our
partnership.
Together we will build an organization based
on effective and efficient customer and operation processes, working together as peers to nurture our
partnership.
We will effectively design and rapidly deploy a frequency efficient PCS 1800
mobile communications network comprising XX sites that provides a broad range of the
highest quality services in the WestOcean
region and conforms to international standards and best practices
We will effectively design and rapidly deploy a frequency efficient PCS 1800
mobile communications network comprising XX sites that provides a broad range of the
highest quality services in the WestOcean
region and conforms to international standards and best practices
CH 1 CH 2 CH 3 CH 4
illustrative
4. The (now) 7 step bid process
A pyramid is the most powerful way to organize our thinking and our writing
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
26
We will effectively design and rapidly deploy a frequencyefficient PCS 1800 mobile communications network comprising XX sites that provides a broad range of the highest quality services in the WestOcean region and conforms to international standards and best practices
Chapter 4
By optimally positioning AA base stations, including YY microbase stations, we guarantee XX% population coverage and capacity of YY subscribers in just ZZ months after license award, the highest credible levels for the Freedonian Republic while achieving regional leadership in quality of service
4.1 4.2 4.3 4.4 4.5 The Consortium’s regional experience in PCS 1800 in SouthParadise [and ...] and CT2 in the Freedonian Republic, and long standing relations with worldclass suppliers enable us, using the world’s most advanced radio planning tools, to provide spectrum efficiency of xx Erlang/sq km, the highest credible capacity, and leading service quality in the Freedonian Republic
The Consortium’s experience designing and deploying high quality mobile networks in the Freedonian Republic and abroad enables us to apply and adapt the modern and efficient PCS 1800 system architecture in a way that best matches the Freedonian Republic’s needs
At launch, our network will support all PCS 1800 Phase 2+ standard tele services, bearer services and supplementary services, and we will roll out other enhancements and valueadded services such as Voice Mail in accordance with the needs of each segment of the Freedonian Republic market
We will conform to the internationally recognized PCS 1800 standard, and drive the application of all developments in the WestOcean region (for example, microcell extenders, smart antennas) to enhance network performance and efficiency
4.6
To minimize intra network interference, the base stations will be manually adjustable within the range xx to yy dBm, and can issue dynamic power control messages to handsets in accordance with the PCS 1800 standard. [subject to possible edit as a result of vendor input]
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
27
By optimally positioning AA base stations, including YY microbase stations, we guarantee XX% population coverage and capacity of YY subscribers in just ZZ months after license award, the highest credible levels for the Freedonian Republic while achieving regional leadership in quality of service
Section 4.1
Using the MSI tool, calibrated for the Freedonian Republic, we select sites and a frequency plan that optimally cover XX% of population and provide (sufficient) capacity
4.1.1 4.1.2 4.1.3 4.1.4 4.1.5
Our team and partners use six methods to ensure rapid and successful location, acquisition, and approval of optimal sites
The Consortium has pre ordered equipment and obtained delivery guarantees ensuring that we enter service within XX months of license award
Our program management and engineering experience in Freedonian Republic mobile communications, combined with our international partner’s experience in cellular and PCS 1800, ensures that we will roll out 25% (substitute if supplier can do better) of base stations within yy months
The Consortium’s recognized leadership in PCS 1800 network optimization, R1 modified interconnection, and tuning in the Freedonian Republic’s complex radio environment enable us to commission our network rapidly at guaranteed system performance levels
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
28
Chapter
.1 .2 .3 .4 .5 .6
What are the elements of a promise to a MegaCongress that says „You must choose our Congress Center because....“
Our faciities and our support services and staff enable you to do everything you want and inspire you to go even further Your congress will over achieve its goals
Our city will attract a higher number of your members and their spouses, and they will give positive feedback on their experiences here
?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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4. Produce a totally compliant response to the invitation n Best if, prior to the issuing of the RFP, we can influence the rules
so it is easy for us to comply and more difficult for rivals
n Find out if a rival has already had that influence!
n If they ask for the document to be printed in Japanese on blue toilet paper, that is how they get it!
n Speak their language: culture, business, technical, political, social
n If a requirement is uncertain, clarify it – also an excuse to show you are interested in satisfying the smallest the detail
n We only argue with the license conditions either
à before the formal invitation to bid is offered (e.g. there might be formal consultation phase – if not, make one),
à or renegotiate after license award,
à but never during the bidding process.
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
30
5. Produce the best possible credible promise
n Produce an optimal bid, that is the best possible promise which nobody else is able to do any better.
n The promise is SMART = specific, measurable, achievable, relevant and timely (in each message at every level of the pyramid)
n If anyone offers a “better promise” the document will show why that is not credible.
n We give the maximum credible promise, within the constraint of commercial viability, which is usually a threshold financial parameter such as an IRR.
n We show why we are committed to deliver on that promise
à Track record
à Promise by top officials; bidbond;
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
31
The best promise should look at maximising the business value to the Association and the social value to the decision makers
n Business values
à Increase revenues (e.g. more participants, higher prices) à Lower total costs (e.g. unit costs, less waste, lower cost of sale) à Longer lifetime (e.g. assets, customers, staff,) à Lower uncertainty (contingencies, offset risk, shorter exposure) à Better story (e.g. clear value story, all evidence available)
n Social values
à Hope (e.g. for „immortality“) à Belong (to my peers, to my community) à Feel important (to me, to my peers, to my community) à Get more out of life (excite my emotions, personalise) à Security (doing the right things, things right, everything is OK)
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
32
5. Produce the best possible credible promise – what elements should we include in a promise to a MegaCongress and what is the criteria?
n Maximise the number of delegates and so the financial success of the congress
n ?
n ?
n ?
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
33
6. Ensure it is easier for the decision makers to say “no” to rival bidders than to us n Often there is more than one attractive, highscoring bid – turning
one down is more difficult than saying “yes” to the winner, so make it easier to say “no” to the others
n Make sure you avoid any excuses to say “no” to you – no accidents, no incidents, no scandals
n Lay out your bid document so it is “easy for the Minister to find all the good reasons for choosing you when he/she has to stand up in Parliament to defend the decision against an opponent with a vested interest in your rival winning the bid”
n Include an evaluation matrix with rational criteria that rank your bid first – it might influence the decision maker to adopt your evaluation method!
n Show the decision maker how they can give a “consolation prize” to your rival, the loser
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
34
6. Ensure it is easier for the decision makers to say “no” to rival bidders than to us – why should a MegaCongress turn others down?
n The right third of each page is left blank for the evaluator’s hand written notes
n Key messages repeated big & bold in that broad margin
n What are the rational and measurable key criteria that the decision maker should use to choose your Congress Centre?
n The rival can be given a “consolation prize” – they have a historically anniversary in 6 years and so it makes more sense to give them the contract then; their “turn” will come later;
n ?
n ?
n ?
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
35
7. Behave as if you have already won
n Provided this is not done arrogantly, this shows a very strong commitment so helps win the bid
n Planning for service launch in advance allows quicker rollout which may have an NPV of several million per month earlier to market.
n We have been involved in bids where we have started infrastructure procurement, site selection and building before license award.
n If we lose, we sell those assets to the winner, potentially at a premium, and so the risk is zero!
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
36
7. Behave as if you have already won – can we use this in bidding for MegaCongresses?
n Does planning in more detail than required in RFP make our process more efficient or the client more likely to choose us?
n Does our early commitment enable them to delay their decision and is that a benefit to them?
n What sort of investments can we make that help win a bid, and that we can resell or use for other purposes if we lose?
n ?
n ?
n ?
4. The (now) 7 step bid process
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
37
Lobbying Director
Regulatory
Technical
Economic
Political
Steering Committee
Bid Team Manager
Bid Strategy Committee Editing Graphics and
Printing Security Facility Management
Network Planning Manager
Fixed Network
• Switching
• Interconnect Arch.
Radio Layout
• Topology data
• Tools
Operational Plan
Billing
Customer Care
Operations & Maintenance
Site Selection
Market Research
Market Strategy
Distribution Strategy & Channels
Promotion
Marketing Plan Financial Plan
Sizzle
Typical Merlin Involvement
5. The best team to win bids
At the peak of bidactivity, the telecom licensebid team might consist of 60 – 150 staff, with many external experts and consultants
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
38
All team members’ roles and responsibilities must be clearly defined
n Core team develop strategy, lobby government officials
n Project Manager(s) oversee process, manage vendors, liaise between core teams and writers of different elements, and capture good ideas to escalate them
n Bid element teams collect information, apply approaches, build structure, write/edit text
n Lobbyists – who says what to whom and why
n Backoffice: legal; facilities; document preparation; translation; etc.
5. The best team to win bids
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
39
Even with a standardised process, every bid is different, so the team should be fresh and should customise to the specifics of the bid
n Recycle the team to prevent the process becoming routine and bureaucratic
n Use occasional external resources to keep challenging the team
n Bring in external experts to customise the bid
n Ensure the team is hungry and motivated for success
5. The best team to win bids
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
40
Lobbying Director
Client decision makers and their
influencers
Client Operational
Team
Sponsors
City Resources
Steering Committee
Bid Team Manager
Bid Strategy Committee Editing Graphics and
Printing Security Facility Management
Infrastructure
Event locations
Transport
Hotels
Spouse Events
City support
Operational Plan
Logistics
Catering
Security, entry and Authentication
Presentations & rights management
Delegates
Sponsors & Exhibitors
Spouses
Marketing Plan Financial Plan
Sizzle
Typical Merlin Involvement
5. The best team to win bids
So what is the team size and structure for winning MegaCongresses?
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
41
So how much effort is worth putting into bidding for a mega congress? How do we fund this and what is the organisation?
n Based on bidding for telecom licenses or major sports events: à2 – 5% of license or event value à1 manday (specialist or external) per €50k €150k of value àCan afford 4 times this if an effective bid process raises success rate from 20% to 80%
àThrough efficient bid process this can be reduced 50% 4 – 10% of license or event value 1 manday (specialist or external) per €25 – €75k of value
n Does this mean for a megacongress: à1 manday (specialist or external) per 40 – 125 delegate days à300 – 1,000 mandays (specialist or external) for a 3 day 15,000 delegate MegaCongress – budget €0.6M – €4M!
àIf 50% of this effort is put in during a 3 month intensive bidding process, the team can be 2 – 7 full time equivalents
àHow do we get this level of budget from the city, which is going to gain the vast majority of value from hosting the Congress
5. The best team to win bids
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
42
Challenges in organising a professional bidding organisation
n Establishments in the city are the principal beneficiaries, but are fragmented and have differing agendas àHotels – the biggest are international chains, so get the business wherever the Congress decides to go
àRestaurants, bars, shops àAirlines, trains, buses, taxis
n Responsibility for bidding is split/shared between different agencies with different agendas, funding levels etc. and the interaction, skilllevels/professionalism, strength, motivation and cooperativeness varies greatly between cities àCongress Bureau(s) – city/state; public/private; political appointee versus elected versus recruitment
àCongress Centers àCongress Organisers àAssociations of Hoteliers, Restauranteers etc. àLocal, national chapters and HQ of the professional associations
5. The best team to win bids
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
43
There are numerous elements to produce the optimal, credible bid nGeneral BidMaster™ approach covers all phases of bid production
àPreBid Preparations and Bid Office Setup
àRFP Analysis, Bid Strategy and Bid Structure
àBid Writing and Editing, incl. Message Tree and Style Guidelines
à Formatting and the use of the BidMaster™ Templates, Bid Production (Printing, Binders, CDROM etc.)
àPost–Submission Activities
nTraining for Peak Performance
à Training customised to provide bid managers with all the necessary skills and tools to successfully manage and control a winning bid process.
à Training the Bid Team to develop crisp and convincing storylines for winning proposals.
nBid Content Development à Workshops to develop the message tree story line and to plan the work required to produce the supporting evidence
àCoaching and support of writers; Selected inputs
àEditing and rewriting
n Bid Office Logistics 1. Bid Process
Analysis of existing procedures and recommendations to establish an optimal Bid Process.
2. Bid Production Analysis and assessment of the bid office to ensure a smooth and efficient bid production (layout, software, templates, printing, translation, etc.)
3. Bid Infrastructure Establishing a first class bid infrastructure, covering IT environment (backup, version control,
templates, security etc.) Process Design Bid Office Setup
n Proposal Presentation and Negotiation Skills Once you have submitted your documents, the bid is not over yet. We set you up with all the skills you need to differentiate your proposal from the competition.
6. Get the logistics right for efficient bidding
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
44
CSK developed the BidMaster TM Approach to cover the entire bid process, from RFT to document production, from bid office installation to bid presentation
RFT Analysis
KickOff: • The perfect Tenderer
• Partner Concept
• Lobbying Matrix
• Message Tree
• Structure of Tender
Trans lation
Final For matting
Physical Pro duction
Lobbying and Partnering
Editing Iterations
Logistics • IT & Security • Translators • Packaging, Dividers
• Versioning • Layouts, Templates • Corporate Identity (CI)
• etc.
PostBid Activities • Bid Presentation
• Negotiation
PreRFT
Preparatio
ns
Core Activities
Support Activities
RFT received
Submission
The BidMaster TM Process
The BidMaster™ Modules are:
nPreBid Preparations
nRFT Analysis
nBid Strategy (Merlin‘s seven Winning Elements)
nPartner Evaluation & Contracting
n Translations
n Physical Production
n Submission
n PostBid Activities
n Project Setup and Planning
n Development of Message Tree
n Bid Writing, incl. version control, file naming, iterative rounds etc.
Determine Product Package, Network Design
Storyline Development and 1 st Draft
Pricing, Terms and Conditions
6. Get the logistics right for efficient bidding
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
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With CSK‘s BidMaster™, we provides methods, tools, and structures to allow a smooth and efficient bid production
6. Get the logistics right for efficient bidding
Templates Templates
• MS Word based • Easytouse • ensures consistent layout • corresponds to message tree • allows stringent version control
Templates Templates
• MS Word based • Easytouse • ensures consistent layout • corresponds to message tree • allows stringent version control
Version Control System Version Control System
• Allows permanent version tracking • Includes file naming conventions
Save the file using the file naming system. Make sure, you update the version number.
Bid Production Handb ook S tep 3 T he File Nam ing System
IDLSVVAA.EXT ID: Document ID Get it from the Logistics Office! L: Language G=German, E=English S: Chapter S= Executive Summary, D=Description of the Bidder
T= Technical, C= Commercial, A= Appendix VV: VersionNr. After each change: Increase by one! AA: Author Your initials EXT FileExtension e.g . “doc” for MS Word files
Example: 04EC07CK.DOC 04EC07CK.DOC Also possible Also possible 04EC07CKresearch.DOC 04EC07CKresearch.DOC
This is document number 04, English version, Commercial Chapter, Vers ion 7, la st edited by Chris Kaelin (CK). It is a Word document.
1 2 3 4 5
Version Control System Version Control System
• Allows permanent version tracking • Includes file naming conventions
Save the file using the file naming system. Make sure, you update the version number.
Bid Production Handb ook S tep 3 T he File Nam ing System
IDLSVVAA.EXT ID: Document ID Get it from the Logistics Office! L: Language G=German, E=English S: Chapter S= Executive Summary, D=Description of the Bidder
T= Technical, C= Commercial, A= Appendix VV: VersionNr. After each change: Increase by one! AA: Author Your initials EXT FileExtension e.g . “doc” for MS Word files
Example: 04EC07CK.DOC 04EC07CK.DOC Also possible Also possible 04EC07CKresearch.DOC 04EC07CKresearch.DOC
This is document number 04, English version, Commercial Chapter, Vers ion 7, la st edited by Chris Kaelin (CK). It is a Word document.
1 2 3 4 5
Revision History Revision History
• Allows tracking of changes within documents
• Easy to use
Revision History Revision History
• Allows tracking of changes within documents
• Easy to use Project Mgmt Tools Project Mgmt Tools
• Enable Bid Writing Team to work most efficiently
Translation IT Pricing Technical Chapter Logistics
Trans lators
rea dy
B ackup p ro
ce dure
u nclea r
Ma na gem ent
SignOff
miss in g
Ba sic P ricing
ok ...
Binders
not ready ROI
missing
Critical Issues Illustrative
Project Mgmt Tools Project Mgmt Tools
• Enable Bid Writing Team to work most efficiently
Translation IT Pricing Technical Chapter Logistics
Trans lators
rea dy
B ackup p ro
ce dure
u nclea r
Ma na gem ent
SignOff
miss in g
Ba sic P ricing
ok ...
Binders
not ready ROI
missing
Critical Issues Illustrative Translation IT Pricing Technical Chapter Logistics
Trans lators
rea dy
B ackup p ro
ce dure
u nclea r
Ma na gem ent
SignOff
miss in g
Ba sic P ricing
ok ...
Binders
not ready ROI
missing
Critical Issues Illustrative
Filing System Filing System
• File naming system and file structure
Filing System Filing System
• File naming system and file structure
Layout Guidelines Layout Guidelines
• Allow consistent layout without complex formatting procedures
• Increases efficiency
Layout Guidelines Layout Guidelines
• Allow consistent layout without complex formatting procedures
• Increases efficiency
Style Guidelines Style Guidelines
• Style Guidelines to use a consistent and effective language in order to maximise communication efficiency
Style Guidelines Style Guidelines
• Style Guidelines to use a consistent and effective language in order to maximise communication efficiency
Checklists Checklists Checklists Checklists
BidMaster BidMaster™ ™ Process Process BidMaster BidMaster™ ™ Process Process
Message Tree Message Tree
Chapter 1 (Description of the Bidder)
Chapter 3 (Business Case)
Chapter 2 (Marketing Strategy)
The Main Message
Message Tree Message Tree
Chapter 1 (Description of the Bidder)
Chapter 3 (Business Case)
Chapter 2 (Marketing Strategy)
The Main Message
There is no silver medal: Bidding Master Class, ICCA Rhodes. 30 th October, 2006 Malcolm Ross, Merlin Consulting, Valletta, Malta eMail: [email protected] Web: www.consultmerlin.com
46
Definition of an Expert: Someone who knows what they don‘t know
1. Presentation on process for bidding for telecom licenses, to provide new insights on bidding psychology, principles and techniques for senior, experienced ICCA members,
2. Openfloor discussion on which of these insights are useful for bidding for megacongresses
3. Discussion for ICCA members to share case study information on recent successful or unsuccessful bids for large scale events
4. Conclusions and actions
Agenda
www.iccaworld.com
Thank you! 45 th ICCA Congress & Exhibition Monday 30 October 2006
International Congress & Convention Association