RFPs – are they worth the effort?

If you are involved in running a business, size notwithstanding, chances are you will have encountered the Request for Proposal (RFP) process as part of your business development effort. On the surface, this age-old tradition will appear to be a standard practice for soliciting bids from potential contractors or suppliers for specific projects. However, if you take a deep dive, you could start to question whether the considerable investment of time, money, and effort required by the RFP process truly pays off. One of the most glaring issues with the RFP process is its demand for key senior personnel within an organization, especially if it’s a small one with few personnel playing multiple roles. This diversion of talent and resources can most certainly detract from current paid and time-bound projects, potentially impacting their delivery and most importantly, the bottom line. Moreover, despite the commitment of resources, there's no guarantee that your organization will emerge victorious, given the often extensive field of competitors, some with huge budgets, vying for the same opportunity. A typical case of too many predators chasing one elusive prey. 

Respect for expertise 

Increasingly, many agencies are expressing frustration, albeit silently, with the laborious nature of the RFP process. Some are even declining to participate altogether due to past experiences. Consider this: Would you approach a doctor, lawyer, or therapist with an RFP? The answer is a no-brainer! Here’s the thing. Professionals in any field should be treated as such. There’s a need for a process that respects their expertise, time, know-how, and most importantly, experience. In particular, industries like Public Relations (PR) highlight the disconnect between the RFP process and the nature of the services or expertise being sought. Companies seeking professional communication partners often bypass creative and innovative sections of the RFP, prioritizing pricing above all else. This, in turn, raises a fundamental question: Is the RFP truly an effective means of 
identifying the most qualified partner? Industry players are now increasingly advocating for a more interactive selection process, akin to an interview. According to industry experts, this approach fosters a two-way exchange of ideas, allowing both parties to assess the potential for a fruitful and mutually beneficial partnership. Rather than relying solely on bulky written proposals, agencies can present their credentials, and client testimonials, and discuss their overarching strategy and account management processes, providing a more holistic and realistic view of their capabilities. 

Building stronger relationships 

Indeed, a PR agency's process in account management can be a crucial factor in distinguishing between a seasoned professional and an amateur operation. Yet, the rigid structure of the RFP often stifles the much-needed creativity and innovation. This, in turn, further reduces complex decisions to a matter of price. In the long run, this will ultimately undermine the value an agency can bring to the project and even limits the potential for truly transformative and progressive partnerships. The truth is relationships are fundamental in business and the transactional nature of RFPs can strain these connections. Agencies, and all businesses for that matter, invest significant time and effort into nurturing these relationships, which is not recognized in the RFP process. 

In essence, RFPs can very easily transform what could be enduring, strategic partnerships into tedious vendor transactions, where the lowest bidder, and not necessarily the most qualified, often prevails. Unfortunately, this short-term mindset does little to foster innovation, creativity, or sustainable business growth. As businesses evolve, so too should the methods and processes by which they identify and engage with potential partners. 

So, while the RFP process may have its place in certain contexts, it is essential to evaluate its efficacy in today's dynamic business landscape. Rather than defaulting to the familiar route of issuing RFPs, businesses should explore alternative approaches prioritizing collaboration, innovation, and cultivating enduring partnerships. Only then can they unlock the full potential of their endeavors. 

Four ways to improve the RFP process 

Do you want to turn the RFP process into an "opportunity" as opposed to a frustrating tedious process with zero results? Follow these tips: 

Limit the Shortlist: Consider limiting the RFP shortlist to a maximum of three firms. This ensures that PR agencies are motivated to invest effort in the proposal process. Having too many contenders can overwhelm both parties involved and diminish the quality of responses. 

Identify relevant experience: A key criteria should include the agency’s track record with similar businesses. Have they worked on this specific industrial category before? Have they got published work and testimonials to prove it? This would go a long way in aiding the decision-making process. 

Streamline the RFP: Keep the RFP concise and focused. Beyond basic company details, include approximately 10 questions covering basic aspects such as competitors, team structure, fees, client relationships, and relevant case studies. You may want to include a key inquiry about your industry position or challenges. Encouraging an open-ended response allows agencies to showcase their strategic thinking abilities, fostering more meaningful partnerships. 

Specify Budget Range: Providing a budget range facilitates agencies in tailoring their proposals accordingly. This prevents wasted time and resources on both sides. Transparent budget expectations ensure alignment between proposed strategies and financial feasibility, enhancing the efficiency of the selection process. 
 

Contributed by 
Hilmarie Hutchison (MCIPR, MPRCA), CEO, Matrix Public Relations