Although invaluable for nonprofits, the request for proposal (RFP) process can also be extremely complex.
To ensure you do things right, you need to know what questions to ask yourself at the outset and what mistakes to avoid during the process.
We've listed seven of the most common RFP mistakes below and how to avoid them.
Who are you?
You know what your business needs. You know what you want. You've put together a complete list of your requirements.
You're ready to submit your RFP, right?
Not exactly. Remember that you're communicating with an organization that presumably knows nothing about you. They're going to need background details:
Make sure vendors know the basics of your organization and use case.
What do you actually need?
Another mistake we see organizations make all too often involves going overboard with requirements. They throw together a massive list that includes everything and the kitchen sink. This often results in them asking for stuff they don't actually need.
Our recommendation? Organize your requirements by priority. Start with the features that are absolutely non-negotiable, followed by what you're willing to compromise on, then things that, though nice to have, aren't deal-makers.
Map out your requirements, but be realistic about them.
What happens after deployment?
You know what your organization needs today. But what about tomorrow, and the day after, and in the years that follow? Do you have a roadmap of what your future looks like?
If not, define one. Think about how your needs might change as your use case evolves. Share that information with prospective vendors when you submit your RFP — that way, you're more likely to find one that'll grow alongside your organization.
Do you know how the RFP process works?
Given how complicated the RFP process tends to be, it shouldn't come as any great surprise that many organizations don't have a realistic understanding of it. As a result, they end up going in without a clear vision. Generally, this causes them to fall short in the following areas.
When are things meant to happen?
A lot of organizations don't really have a timeline in place for their RFP. They have no idea when they'll choose a vendor, sign their contract, start their project, and go live. On the opposite end of the spectrum, you've got organizations who want things to happen way too fast.
Before starting the RFP process, make sure you have a basic understanding of the different stages it will involve.
Map out each step, including outreach, engagement, and implementation, but remember that you're not the expert. Vendors will communicate a realistic timeline to you. Your role is to align your objectives to that timeline and understand the different milestones that need to happen at each stage.
Who will make things happen?
It's all too common for organizations to move forward without defining their key stakeholders. Who owns the project, who drives it, and who will oversee implementation? Who is accountable for keeping things moving and making sure nothing falls through the cracks?
Define the people who will ensure the project fulfills each milestone, keeps people accountable, and troubleshoots challenges as they arise. Not doing so can derail everything.
What do you need in order for things to happen?
Any engagement, no matter the scope, needs resources to succeed. Unfortunately, this is where a lot of organizations fall short. They either lack the necessary internal resources or forget what resources they're going to need to push things forward.
Think about your people. Who are they? What do they do? How available are they, and how will assigning them to this project impact your business?
To put it another way, you need to ask yourself if you have the internal capabilities to support both your day-to-day and this project — and if the answer is no, you need to think about how you're going to find them.
Are you blinded by dollar signs?
Plenty of organizations have a tendency to place way too much emphasis on pricing. As a result, they frequently rule out the best vendors simply because they're too blinded by costs. Fortunately, there's a simple way to fix this.
Put pricing to the side at first and nail down the best vendors based strictly on what they can provide.
Once you've created a shortlist of the top vendors for your project, you can compare them with one another based on pricing and how well they fulfill your requirements to find the best fit. If you're realistic with your requirements and willing to work with prospective vendors, you may even be able to secure a discount.
How are you approaching your budget?
Money might not be everything, but it still plays a huge part in your decision-making process. You need to do the necessary legwork to secure the budget for your project. Start by identifying the market.
You might consider submitting a request for information (RFI) to vendors so that you can get a gauge for market rates and realistic pricing. Once you've gotten a response from a few vendors, take the information to your board to get a budget range. Your budget range should cover how much you ideally want to spend and how much you're able to spend.
Are you asking the right questions?
As we've mentioned before, one of the most important keys to success in the RFP process is asking specific, highly targeted questions. Too many organizations either ask too many questions or use generic copy and paste templates filled with irrelevant questions.
Eliminate anything that isn't specifically related to your use case and requirements. That way, you can get the best information possible and position your RFP for success. Wondering how Enterprise Resource Planning software can help you improve your RFP process? Reach out to our team to learn.