Home Career

The terms bid management and proposal management are often used interchangeably. In my approach there is a considerable difference between the two, which I can best illustrate by stating that bid management includes proposal management and by giving some examples.

The first example is when you respond to a request for proposals that has appeared "out of the blue". You may read the RFP as a newspaper advertisement or you may be invited by a letter or email to respond to a statement of requirements. Your main task will be to develop and present your proposal. I refer to this as proposal management.

Proposal management usually works under the following conditions.

1. The process is initiated by the prospect.
2. The prospect has a fixed set of requirements.
3. The prospect may not be easily accessible. In some cases, the prospect may operate "at arms-length", through a formal communication procedure.
4. Few, if any, products can be re-used in future proposals. The content of the proposal will consist of standard "boiler-plated" sections and of responses to the questions in the RFP.
5. On occasion, your proposal may offer products and services that are out of your main line of business.

The second example is when you have a product or service that you wish to offer to new or existing customers. Whether or not a prospect issues a request for proposals as above, your intention in responding to a prospect's needs will be to offer a response based upon your main lines of business.

One purpose of bid management can be to shift the prospect's expectations to fit with your existing products and services. Although you are still likely to respond with a proposal, there will be more work done before proposal management begins to develop a shared view with the prospect.

Bid management differs from "stand-alone" proposal management in the following ways.

1. The process may be initiated as a result of previous work for the prospect. It may therefore fit into your ongoing business development plan for that prospect.
2. The prospect may have a set of requirements in mind, but is either focused on objectives or can be persuaded to focus on objectives.
3. The prospect must be easily accessible. There must be a two-way communication channel. If this does not already exist, the bid manager must set it up.
4. The content of the proposal will have two major characteristics. First, much of it is likely to be "inherited" from previous proposals and sales material. Second, the changes made to it during a bid are likely to be useful in subsequent bids. The "boiler-plated" material is likely to become more diverse, with more options available within it, as a result of the bid management process.
5. Your bid and your proposal are likely to offer products and services that are within your main line of business or within a line of business that you have already planned to enter.

It is sometimes assumed that bid management may work only when the proposal is not competitive and when timing is not critical. This is not true. Bid management actually works best in competition, with deadlines.