Bob Lohfeld

COMMENTARY

10 reasons why you need capture management

A successful strategy requires buy-in from corporate leaders and a documented process

Bob Lohfeld is chief executive officer at Lohfeld Consulting Group.

When we examine why companies win or lose new business in the government market, the reasons are amazingly similar. Companies win more often when they focus on understanding customer requirements and objectives. They predictably lose more often when they don’t. Similarly, qualifying new business opportunities early in the business development life cycle results in better win rates, while late qualification results in fewer wins and cost increases in business development.

These and other activities are strong indicators of how well a company will do in competitive procurements. This correlation provides clear evidence that companies can raise their win probabilities by performing certain activities well and in the right sequence, thereby establishing the basis for an efficient process known as capture management.

Each company implements its capture management process to fit its culture and management structure, and all implementations should include the same fundamental activities.

  • Qualify the opportunity. Assess the new business opportunity and make an appropriate decision to invest in the pursuit.
  • Build the capture plan and resource the capture team. Develop a realistic, achievable plan that can be accomplished within the time available and against which capture progress can be measured.
  • Understand the customer’s objectives and requirements. Take the time to fully understand the customer’s scope of work and the objectives to be achieved.
  • Develop a preliminary solution linked to objectives. Create a solution to perform the work that achieves the customer’s objectives.
  • Position with the customer. Preview your solution with the client to shape the procurement strategy and the client’s thinking.
  • Assess the competition. Build a thorough, competitive assessment on which to base your win strategy and price to win.
  • Develop a win strategy. Identify your company’s strengths and competitors’ weaknesses so you can mitigate your weaknesses, neutralize their strengths and accentuate your positive discriminators.
  • Establish a price to win. Establish a target price based on your competitive strategy and expected competitor pricing.
  • Plan and execute a teaming strategy. Identify where teammates can bolster your position and select the best teaming partners and negotiate teaming agreements.
  • Assess risk. Identify, analyze and mitigate contract performance risk as perceived by the customer.

Defining your process is the first step toward implementing capture management. This requires developing detailed procedures that mesh with your company’s corporate culture, along with supporting templates to make the process efficient. It takes several iterations to ensure that you establish a defined, repeatable process that works.

Full endorsement and support by corporate leadership and management are critical to capture process success. Some stakeholders are reluctant to establish a prescribed process, arguing that they were successful without it and don’t want to change what has worked for them. Winning them over is a cultural transformation challenge that takes the full support of corporate leadership.

Over time, you accumulate data from your pursuits and can analyze that data to measure the effectiveness and efficiency of your capture process. Based on that analysis, you can measure results and adjust your processes, providing a quantifiable basis for capture process optimization for your company, culture and market segmentation.

So why capture management? A defined, repeatable, managed, measured and optimized approach provides multifaceted benefits. It will:

  • Result in winning more business from fewer, better-qualified opportunities.
  • Raise overall win probability.
  • Decrease costs.
  • Improve the quality of life for everyone involved.

Additionally, the process is scalable as your business grows.

Why not? Maybe you think your firm is too small and that defining and implementing a process takes too much time and investment. Maybe there’s a sense that everyone is just too busy to stop and think about doing it better. Maybe your firm’s heroes think they don’t need a process.

There are myriad reasons for or against a capture management process. Use the comment field below to share your experiences with us.

About the Author

Bob Lohfeld is the chief executive officer of the Lohfeld Consulting Group. E-mail is robert.lohfeld@lohfeldconsulting.com.

Reader Comments

Mon, Nov 12, 2012 Contracts Manager

Can you explain where capture management is in the Contracts Management cycle? Many Contracts Managers are involved in the proposal phase so how to the two discplines interface in your world? Does capture management reside in Business Development?

Wed, May 12, 2010 Bob Lohfeld

Rol, you are right about reassessing opportunities during the pursuit stage and making decisions to continue. This is the hardest decision for management to make, i.e, shutting down an opportunity that is in pursuit. We watched Northrop Grumman do this on the Tanker procurement and their decision will likely prove to be a very good one. I always applaud management teams who have the conviction to review pursuit progress and shut down a pursuit when victory is not likely. It is a good lesson for all.

Mon, May 10, 2010 Rol

I would add one more critical item to the list. After all the items are completed, reassess whether the opportunity is really worth the effort. I've seen too many companies call an opportunity a "must win" when they are clearly not qualified/positioned for the win. The Capture Manager must have the strength to "just say no". That ability will go a long ways toward increasing the win rate.

Mon, May 3, 2010

Generic outline... Article would have had more punch if it provided examples or focussed on one or more of the bullets.

Sun, May 2, 2010 Maryland

Use the 10 reasons as a checklist for ensuring a successful bid. Missing anyone of the 10 items results in a high risk rate.

Show All Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
SEARCH
contracts DB

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More

Webcasts

  • How Do You Support the Project Lifecycle?

    How do best-in-class project-based companies create and actively mature successful organizations? They find the right mix of people, processes and tools that enable them to effectively manage the project lifecycle. REGISTER for this webinar to hear how properly managing the cycle of capture, bid, accounting, execution, IPM and analysis will allow you to better manage your programs to stay on scope, schedule and budget. Learn More!

  • Sequestration, LPTA and the Top 100

    Join Washington Technology’s Editor-in-Chief Nick Wakeman as he analyzes the annual Top 100 list and reveals critical insights into how market trends have impacted its composition. You'll learn what movements of individual companies means and how the market overall is being impacted by the current budget environment, how the Top 100 rankings reflect the major trends in the market today and how the biggest companies in the market are adapting to today’s competitive environment. Learn More!