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Managing Successful Bids with PRINCE2™ 2009
A road-map for successful business development
David Warley.
Bid to Win Ltd
1
After this workshop you will have:
• Be able to apply PRINCE2 principles on your next bidKnowledge
• Have applied PRINCE2 techniques to proposal developmentExperience
• Be able to scale PRINCE2 approaches appropriatelyAbility
© Copyright Bid to Win Ltd 2009 3
Bids are projects:
© Copyright Bid to Win Ltd 2009 4
Project Definition:“A temporary organisation established to achieve a defined objective within a specific timeframe.”
Most projects fail:
• cancelled before being finished31%
• completed, but impaired.53%
• Average cost overruns 189%
• Average time overruns 222%
• completed on time, on budget, and on scope.16%
© Copyright Bid to Win Ltd 2009 5
Over 80% of all projects will fail to deliver the desired outcome.
Source: Standish Group
How many bids deliver the desired outcome?- Profitable business / measurable business objective- On time- Within budget
Optimal
Typical
Traditional
Business Development projects need the right scope:
Positioning Pursuit Proposal Negotiation Delivery
© Copyright Bid to Win Ltd 2009 6
Agenda:
PRINCE2
• Pedigree
• Principles
• Themes
• Processes
Business Justification
• Qualification
• Treatment of Risk
Learn Lessons
• Suck, don’t blow
Governance Principles
• Roles & Responsibilities
• Manage by Exception
• Case Study
Product Focus
• Product Based Planning
• Outlining
• Practical Exercise
Manage by Stages
• Controlling progress, change and quality.
Tailor
• Scalability
• Sizing the Bid
• Case Study
Review and Wrapup
• Takeaways from today
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World’s most used project method:
© Copyright Bid to Win Ltd 2009 8
PRINCE2™, ITIL®, M_o_R®, MSP™, P3O®, P3M3™, the Cityscape logo and Swirl logo are Trade Marks of the Office of Government Commerce in the United Kingdom and other countries.
PRINCE2™ is member of the OGC family of best practice methods.
PRINCE2
• Pedigree
• Principles • Themes
• Processes
Seven PRINCE2 Principles
© Copyright Bid to Win Ltd 2009
PRINCE2 Projects
Continued Business
Justification
Learning from
Experience
Defined and Agreed Roles
Managed by Stages
Managed by Exception
Focus on Products
Tailored
Principles:
Guiding obligations
for the project
Based on observed
best practice
Principles are:
Self Validating
Empowering
PRINCE2
• Pedigree
• Principles • Themes
• Processes
9
Seven PRINCE2 Themes
PRINCE2 Recurring Themes
Business Case
Organis-ation
Quality
PlansProgress
Change
Risk
© Copyright Bid to Win Ltd 2009
PRINCE2 Themes:
Aspects of the project that need to be addressed continually
Enable integration of PRINCE2 processes
Provide integrating ‘thread’ for the
processes
PRINCE2
• Pedigree
• Principles • Themes
• Processes
10
PRINCE2 Processes
Directing
Managing
Delivering
© Copyright Bid to Win Ltd 2009
Start Up
Directing a Project
Initiating a Project
Closing a Project
Controlling a Stage
Managing Stage
Boundaries
Managing Product Delivery
PRINCE2
• Pedigree
• Principles • Themes
• Processes
11
Applying PRINCE2
Continued Business Justification
© Copyright Bid to Win Ltd 2009 12
Why are we bidding?
© Copyright Bid to Win Ltd 2009
PRINCE2 Principle:
A PRINCE2 project has continued business
justification
Business Justification
• Qualification
• Treatment of Risk
13
Different focus by process:
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Start Up
Directing
Initiating Closing
Controlling a Stage
ManagingBoundary
Managing Product Delivery
Business Justification
• Qualification
• Treatment of Risk
The Business Case ‘drives’ a PRINCE2 project. It is maintained and monitored continually but particularly at:• Start Up• Initiation• Stage Boundaries
Some risks get different treatment. Why?
Project Methods
Proposal Methods
© Copyright Bid to Win Ltd 2009
Business Justification
• Qualification
• Treatment of Risk
15
Applying PRINCE2
Learning from experience
© Copyright Bid to Win Ltd 2009
Learn Lessons
• Suck, don’t blow
16
Don’t leave it to the White Team!
Standard PRINCE2 process steps :
Review lessons learnt
Apply Lessons
• -
• -
Record lessons learnt
© Copyright Bid to Win Ltd 2009 17
Learn Lessons
• Suck, don’t blow
Principle:A PRINCE2 project learns from experiencelessons are sought, recorded and acted upon throughout the life of the project
PRINCE2White Team
Review
Applying PRINCE2
Creating a structure for governance
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Let’s get organised:
Direct
Manage
Deliver
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Governance Principles
• Roles & Responsibilities
• Manage by Exception
• Case Study
Principle:A PRINCE2 project
has defined and agreed roles and reponsibilities
with an organisation structure that engages the business, user and supplier
stakeholder interests
Project Executive
Project Manager
Team Manager
Senior Supplier
Senior User
Team Manager
Team Manager
Support Office
• Business InterestProject Executive
• User ChampionSenior User
• Provide ResourcesSenior Supplier
• Deliver the bidProject Manager
• Manage Area of OfferTeam Leader
• Create Response PartsTeam Member
• Support the BoardProject Assurance
• Support the PMProject Support
Services Manager
Designing a proposal organisation:
PRINCE2 Roles: BD Resources:
© Copyright Bid to Win Ltd 2009 20
Programme Director
Account Director
VP Business Development
Account Manager
Bid ManagerSales
Executive
Proposal Manager
Services Manager
Systems Architect
SMEQuality
ManagerProduct
Specialist
Technical Expert
Graphics Designer
Technical Author
Internal Auditor
Roles define:• Accountabilities• Activities performed• Product types created• Competencies required
Resources are mapped to roles according to skills and availability
Governance Principles
• Roles & Responsibilities
• Manage by Exception
• Case Study
Start Up
Directing
Initiating Closing
Controlling a Stage
ManagingBoundary
Managing Product Delivery
Roles
KeyTasks
BID
CO
RE
TEA
MBid Steering Group
Support core team, find decisions that cannot be agreed upon within bid team.
Red team
Review of Planningand Bid Deliverables
Bid Team SetupBlue Print
Executive Summary Project Calculation / Internal Business Case
Customer Pricing
Service Solution Management
Service Risk Management
System Solution
Configuration / BoQ (with List Price)
Network planning
Value based argumentation
Bid Manager
Overall responsibility of bid (content and quality, in time)
TechnicalStream Leader
Overall Responsibility for technical part (E2E) of bid (completeness, quality, availability dates)
ServiceStream Leader
Overall Responsibility for Service Portfolio & Implementation (from “EDC” to “end of obligations”)
CommercialStream Leader
Overall Responsibility for commercial, pricing and legal part of bid
Why NSN ?
Work out customer benefits to chose NSN
Opportunity Lead(Case owner)
Responsible forWin Plan
Bid Production
Electronic, extranetPaper version and delivery
PricingSCASolution Sales
ServicesSolution Sales
Bid MgtIP N&TSolution Sales
Network Solutions
Lin
e O
rgan
isat
ion
Sales Director
Account Manager
F&C
CT
Bid Manager
Overall responsibility of bid (content and quality, in time)
TechnicalStream Leader
Overall Responsibility for technical part (E2E) of bid (completeness, quality, availability dates)
ServiceStream Leader
Overall Responsibility for Service Portfolio & Implementation (from “EDC” to “end of obligations”)
CommercialStream Leader
Overall Responsibility for commercial, pricing and legal part of bid
Why NSN ?
Work out customer benefits to chose NSN
Opportunity Lead(Case owner)
Responsible forWin Plan
Bid Production
Electronic, extranetPaper version and delivery
21© Copyright Bid to Win Ltd 2009© Copyright Nokia Siemens Networks 2007
Tolerance levelsand accountabilities
Managing Limits of Authority
Project
Stage
Work Package
Product
Time
Cost
Scope
Risk
Quality
Benefits
© Copyright Bid to Win Ltd 2009
Principle:A PRINCE2 project has defined tolerances for each project objectiveto establish limits of delegated authority (management by exception)
Governance Principles
• Roles & Responsibilities
• Manage by Exception
22
Project / Bid Executive
Bid / Proposal Manager
Team Leader
Team Member
Applying PRINCE2
Focus on deliverables & quality
© Copyright Bid to Win Ltd 2009 23
Products are PRINCE2’s cornerstone
Proposal
Executive Summary Technical Volume
Solution Descripti
on
Implementation Plan
Organisation
Schedule
Support Plan
Training
Maintenance
Commercial Volume
Investment
Appraisal
Commercial Terms
Price Schedule
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Principle:A PRINCE2 project
focuses on the definition and delivery of products
in particular their scope and qualityrequirements
Product Breakdown Structure
Product Flow Diagram
Product Descriptions
PRINCE2 Product types:Management Products
• Purpose, Composition
• Derivation, Quality CriteriaA.2 Business case
• Purpose, Composition
• Derivation, Quality Criteria
A.17 Product Description
• …
• …A.19 Project Brief
• …
• ...
A.20 Project Initiation Documentation
• …
• …Etc…
• …
• …A.26 Work Package
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Specialist Products
• Purpose, Composition
• Derivation, Quality Criteria
PBS n.n
E.g. Proposal Section
• Purpose, Composition
• Derivation, Quality Criteria
PBS n.nE.g. Design Drawing
• …
• …Etc…
• …
• ...Etc…
• …
• …Etc…
• …
• …Etc…
References A.1, A.n etc are to the manual “Managing Successful Projects with PRINCE2”, published by The Stationery Office
Some cherished proposal management tools are PRINCE2
management products
© Copyright Bid to Win Ltd 2009 26
Outlines are Product Breakdowns
Product Breakdown Structure: Proposal Outline:XYZ Proposal
1. Executive Summary2. Technical Volume
1. Solution Description2. Implementation Plan
1. Organisation2. Schedule
3. Support Plan1. Break Fix Service2. Updates
3. Commercial Volume1. Investment Appraisal2. Commercial Terms3. Price Schedule
© Copyright Bid to Win Ltd 2009 27
XYZ Proposal
Executive Summary Technical Volume
Solution Description
Implementation Plan
Organisation
Schedule
Support Plan
Break Fix Service
Updates
Commercial Volume
Investment Appraisal
Commercial Terms
Price Schedule
Storyboards are Product Descriptions:Product Description Storyboard
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Exercise
Creating PRINCE2 product descriptions for common proposal
artefacts
© Copyright Bid to Win Ltd 2009 29
Applying PRINCE2
Providing management control through planned stages
© Copyright Bid to Win Ltd 2009 30
Principle: Manage by StagesManagement opportunity to:
• progress and statusReview
• on continuingDecide
• for next stageReview Plans
• organisationReview
© Copyright Bid to Win Ltd 2009 31
Principle:A PRINCE2 project is
plannedmonitored and controlled
on a stage by stage basis(management by stages)
Plans
Planning Process
Define plan format
Define and analyse products
Identify activities and dependencies
Prepare estimates
Create the schedule
Document the plan
Product Based Planning
Write the Project Product Description
Create the product breakdown structure
Write the product descriptions
Create the product flow diagram
© Copyright Bid to Win Ltd 2009 32
An
alys
e t
he
ris
ks
For Project Plan only
For all levels of Plan
Controlling progress, change and quality.
© Copyright Bid to Win Ltd 2009 33
Start Up
Directing
Initiating Closing
Controlling a Stage
ManagingBoundary
Managing Product Delivery
Using PRINCE2 approaches you can create simple management checklists to monitor status and quality.
Stages and stage products match to familiar proposal phases
© Copyright Bid to Win Ltd 2009 34
Positioning
Interest List
Pursuit List
Pursuit
Opportunity Brief
Initial Stage Plan
Business Case
Win Strategy
Solution Strategy
Solution Scope
Pro-Forma Budget
Proposal Strategy
Proposal
Completed Proposal
Deal Approval Pack
Closure Plan
Negotiation
Submitted Proposal
Negotiated Contract
Handover Pack
Delivery
Exploitation Plan
Start Up
Directing
Initiating Closing
Controlling a Stage
ManagingBoundary
Managing Product Delivery
The Manage Stage Boundary process defines how to prepare for and manage a stage transition
Example products by Stage
Applying PRINCE2
Tailoring the method to the situation
© Copyright Bid to Win Ltd 2009 35
One size does not fit all:
Non-projects
Small projects
Typical projects
Scary projects
Non-projects
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Principle:A PRINCE2 project
is tailored to suit the project’s environment size complexity importance capability and risk.
Themes can be tailoredPrinciples cannot
© Copyright Bid to Win Ltd 2009 37
• Detail presented
• Analysis and evidence Business Case
• Size of Team and experience
• Split / combine rolesOrganisation
• Number of reviews
• Level of reviewersQuality
• Level of detail
• # of management productsPlanning
• Number of stages
• Frequency of reportingProgress
• Change board and budget?
• Level of approval requiredChange
• Level /Detail of Analysis used
• Level of stakeholders engagedRisk
Opportunityspecific proposal management plan
Risk
Importance
Time
Case study
Applying tailoring rules to standard industry process
© Copyright Bid to Win Ltd 2009 38
PRINCE2™ processes mapped to standard selling process phases
© Copyright Bid to Win Ltd 2009 39
Opportunity Assessment
Capture Proposal Planning
ProposalPreparation
Post Submittal
Handover
Directing
Initiating Closing
Controlling a Stage
Managing Product Delivery
MSB MSB MSB
Start Up
Directing
Managing
Delivering
Standard Documents (Products)
Pursuit Recommendation
Opportunity / Lead Description
Capture Plan
Sales Presentation
Bid Recommendation
Proposal Plan
Writers Packages
Draft ExectiveSummary
Storyboards
Red Team Draft
Business Case
Final Proposal
Closure Plan
Oral Presentation
Final Offer
Lessons Learned
Program Transition Plan
Pursue Prelim. Bid Bid Submit Approve
Scaling the bid process
© Copyright Bid to Win Ltd 2009 40
Opportunity Assessment
Capture Proposal Planning
ProposalPreparation
Win Case Handover
Sample Products
Outline Business Case
Project Brief
Business as Usual
Small Bids
TypicalBids
LargeBids
Size Task
Develop Proposal
Submit Offer& Win Case
Win /LossHandover &
Close
Start Up & Initiation
Develop Proposal
Submit Offer& Win Case
Win /LossHandover &
Close
Win Strategy / Project Approach
Initial Solution & Price to Win
Proposal Strategy
Proposal Stage Plan
Detailed Business Case
Proposal Final Draft
Submitted Proposal
Negotiated Contract
Lessons Learned
Benefits Realisation Plan
Start Up InitiationDevelop Proposal
Win /LossHandover &
Close
Sub-mit
Win Case
Start Up
InitiationDevelop Solution
Develop Proposal
Win /LossHandover &
Close
Sub
-m
it
Pre
-se
nt
BA
FO
Pursue Prelim. Bid Bid Submit Approve Close
Conclusion
Success = Winning Winning bids are successful projects
PRINCE2 is proven Use it, you’re more likely to succeed
Bid Less, Win More
PRINCE2 bids are driven by theBusiness Case
Focus on products and quality
Are this bids outputs:
Fit for purpose? On time? On cost?
Be Adaptable Principles apply universally
Tailor the process to the case
© Copyright Bid to Win Ltd 2009 41
Thank you!
Please visit us on the Bid Alliance stand.
© Copyright Bid to Win Ltd 2009 42