Request for proposal: Difference between revisions
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(RFP). | (RFP). | ||
1. Treasury - banking. | |||
A request for proposal is a formal tender which communicates a customer’s requirements to the banks which are being asked to bid to provide services. | A request for proposal is a formal tender which communicates a customer’s requirements to the banks which are being asked to bid to provide services. | ||
The | The request for proposal is used to facilitate selection of a bank or banks. | ||
2. Operations - procurement. | |||
By analogy, similar communications in relation to the provision of non-banking services, or of goods. | By analogy, similar communications in relation to the provision of non-banking services, or of goods. | ||
:<span style="color:#4B0082">'''''Automating a bad RFP process doesn't turn it into a good one'''''</span> | |||
:"Well-meaning organisations tell you how to run an RFP in the old-fashioned way. | |||
:It doesn't work. Most treasurers will tell you RFPs produce poor results and most bankers - in fact suppliers in general - will tell you it's not an effective process either. | |||
:And, for the Lord's sake, Treasurers and Procurement, automating a bad process does not make it better! | |||
:Consider the following: | |||
:* When in an RFP, scorers mentally compare the responses versus a benchmark. Is there a step in the normal process that aligns scorers' benchmarks before looking at the responses? No. | |||
:* Are there strong personalities in the scoring group who dominate others, leading to skewed decisions? | |||
:* Will most junior staff managing the day-to-day work stand up to senior executives involved? They provide the base data and workload that feeds the information needed by the senior executives in their reports. How will the process consider the importance of one versus the other, considering they're bound together? | |||
:* Do you really believe suppliers can be scored through a one-dimensional analysis? Are you, as an individual, one-dimensional? How, therefore, can organisations - entities with many individuals, working in different cultures and facing different contexts, be one-dimensional? | |||
:* Does your RFP process minimise the impacts of unconscious individual and group biases? | |||
:'''1:10:100:''' | |||
:1 = amount of time spent improving your RFP process first will save you at least | |||
:10 in implementation plus | |||
:100 and more in day-to-day use afterwards. | |||
:There's research and practical implementation on how to improve decision-making selections - it's just not been used by Treasury (or Procurement) yet." | |||
:''RFPs - Stop making the same mistakes - Nicholas Franck, Treasury Executive - September 2024.'' | |||
== See also == | == See also == | ||
* [[Cognitive bias]] | |||
* [[Procurement]] | |||
* [[Request for information]] | * [[Request for information]] | ||
* [[Tender]] | * [[Tender]] | ||
* [[Treasury]] | |||
==Other resource== | |||
*[https://www.linkedin.com/posts/nicholasfranck_download-the-afp-treasury-in-practice-guide-activity-7237785984342323200-Mnch?utm_source=share&utm_medium=member_desktop RFPs - Stop making the same mistakes - Nicholas Franck AMCT, Treasury Executive - September 2024] | |||
[[Category:The_business_context]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Revision as of 01:03, 12 September 2024
(RFP).
1. Treasury - banking.
A request for proposal is a formal tender which communicates a customer’s requirements to the banks which are being asked to bid to provide services.
The request for proposal is used to facilitate selection of a bank or banks.
2. Operations - procurement.
By analogy, similar communications in relation to the provision of non-banking services, or of goods.
- Automating a bad RFP process doesn't turn it into a good one
- "Well-meaning organisations tell you how to run an RFP in the old-fashioned way.
- It doesn't work. Most treasurers will tell you RFPs produce poor results and most bankers - in fact suppliers in general - will tell you it's not an effective process either.
- And, for the Lord's sake, Treasurers and Procurement, automating a bad process does not make it better!
- Consider the following:
- When in an RFP, scorers mentally compare the responses versus a benchmark. Is there a step in the normal process that aligns scorers' benchmarks before looking at the responses? No.
- Are there strong personalities in the scoring group who dominate others, leading to skewed decisions?
- Will most junior staff managing the day-to-day work stand up to senior executives involved? They provide the base data and workload that feeds the information needed by the senior executives in their reports. How will the process consider the importance of one versus the other, considering they're bound together?
- Do you really believe suppliers can be scored through a one-dimensional analysis? Are you, as an individual, one-dimensional? How, therefore, can organisations - entities with many individuals, working in different cultures and facing different contexts, be one-dimensional?
- Does your RFP process minimise the impacts of unconscious individual and group biases?
- 1:10:100:
- 1 = amount of time spent improving your RFP process first will save you at least
- 10 in implementation plus
- 100 and more in day-to-day use afterwards.
- There's research and practical implementation on how to improve decision-making selections - it's just not been used by Treasury (or Procurement) yet."
- RFPs - Stop making the same mistakes - Nicholas Franck, Treasury Executive - September 2024.
See also
