Death by RFP? How Agencies and Clients Can Stop the Madness
Lately, it appears that the whole world has gone “RFP-crazy.” These things come in all shapes and sizes (and, I add, all budgets, when one is stated, which is not often the case).
The RFP process has to be one of the most loathsome processes ever perpetrated on communications firms. For the uninitiated, “RFP” stands for Request for Proposal (it goes under various guises such as Request for Qualifications, Request for Information, etc.). Companies contemplating an agency change typically send RFPs out to a bunch of firms regardless of their suitability to handle the task at hand; while some agencies decline to participate, many firms dutifully answer them. First-time buyers are the worst offenders.
Why loathsome? These things take hours to complete and are often replete with perfectly ridiculous questions such as “How many accounts has your agency won in the past five years on Tuesdays between the hours of 2:30 pm and 4:00 pm?” Of course, I exaggerate (but not by much) for effect. And, while agencies complete these idiotic things and comply with the deadlines, the potential client often fails to respond or even acknowledge receipt of the submission. My suspicion is that clients have it in for agencies as they labor under the false impression that all we in the agency business do is spend countless hours dining at the best places in town, working out at the gym, chatting with prospects and so forth (I believe the Don Draper character from the hit cable TV series “Mad Men” is partially to blame for this impression). Perhaps, the RFP process is way of striking back for some real or imagined offense.
Another particularly offensive aspect of the process is that some prospective clients will request program ideas… Aren’t we supposed to get paid for these? Would you ask an attorney you were considering retaining for free legal advice? If you want ideas, pay for them. A friend of mine who was formerly with a major accounting firm ran an agency search via the RFP process some years ago. Given that he was asking for ideas, he paid the participating agencies a token amount of money.
There is a better way… A much better way. Allow me to elaborate:
- Know Your Budget. You get a lot of tire kickers who will often answer the budget question by saying, “We want the best program possible and don’t have a budget in mind.” Once the prospective client sees the budget estimate for the “best program possible,” he or she faints. Your budget will help you determine the agency that is right for you. Sure, I’d like a Porsche; however, my budget only permits me to own a ‘97 Camry.
- Know What You Need. Some companies might feel comfortable with a specialist firm (e.g., health, financial services, investor relations, technology, etc.) while others might prefer a boutique or a generalist. Look for a firm that possesses the requisite experience, matches your needs and offers the resources that might be important to your program’s success. Most firms will offer services on an “a la carte” basis so you can choose what you need immediately and utilize other services as time and budget dictate.
- Do Some Research. There is no reason to send an RFP to every firm in town. Get recommendations from friends. Talk to people. Of course, there’s always Google (my search utilizing the phrase, “Selecting a Public Relations Firm,” yielded 51 million results in 0.49 seconds). Surely out those 51 million results, there are a few helpful hints. For comparison purposes, you might want to a narrow your search to include firms of varying sizes.
- A Personal Visit is Best. Scheduling meetings with agencies is an indication that you are sincere in your search as opposed to going on a fishing expedition. Meeting with the firm’s executives will give you a good idea about many things that typically can’t be learned from an RFP submission. I’m talking about chemistry, the human element, if you will. Most agencies will present their credentials as well as recommendations for your company. It will be easy for you to see if they’re on the mark fairly quickly. In addition, you should insist on meeting the engagement team (avoid the “bait and switch” thing whereby the best presenters are in the room for the pitch and vanish after the account is landed). Also, when you visit a firm you can pick up other cues. How are you greeted? Are you kept waiting? Are the offices unkempt? Is the place buzzing with activity? Do staffers look happy? Of course, there are many other criteria by which you should base your decision, far too many to elaborate on here.
Finally, I do recognize that many companies have to follow certain procedures in their procurement processes and an RFP may be one of them. However, if you do have to go that route, remember that somebody (or a group of somebodies) spent a lot of time completing your RFP. A simple response or acknowledgement is all that is required. And, while delivering bad news to the losers is never fun, it is the right thing to do and will reflect positively on your company.
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Published: April 19, 2012 By:
Not unlike when someone asks to “pick my brain.” I’ve learned where to draw the line, and when they want details (ideas), I respond along the lines of, “Oh! I didn’t realize you meant to hire me.” They either hire me or stop asking me to give away what real clients willingly pay for.
Vague and generic consultations prior to submitting are free – they’re an opportunity to determine compatibility. It’s not unheard of for me to decline to submit after one of these consults. I’ve been guilty of naively responding to one too many RFPs that resulted in hours of research and planning with no ROI, but at least there were lessons learned. Comprehensive proposals now require a deposit, which will be applied as a credit to the client’s first invoice. My time, knowledge and expertise have value, and it’s healthy to establish that up front with a prospective client. Does a nice job of eliminating tire kickers.
Hello Carole,
Thank you for reading and commenting.
Your comments and suggestions are spot on.
Cheers,
Gene
I completely agree with the Gene’s post and Carole’s comments. We had a substantial RFP come across and one we pursued even though they didn’t have a budget noted. I specifically asked them if there was an incumbent and if they were serious. I also told them all ideas and concepts and other IP were our property until contracted and we include a really legalistic warning about ownership. Ironically they killed the program before it got started.
Hello David,
Thanks for reading and commenting.
Your suggestion about including a “legalistic warning” is a good one which we should all use.
Cheers,
Gene
Great idea! I’ve always taken care to address Intellectual Property and Copyright, but like the idea of a ‘legalistic’ warning about use without permission.
Hello Carole,
Thanks for reading and weighing in.
Cheers,
Gene
A colleague and I started RFP Associates about a year ago to improve the agency search and selection process for both sides. With agency and corporate experiences behind us we agree with all your points and require client’s issuing RFPs to be more transparent, give each agency an equal chance, and not to expect spec work without compensation, among others. The process has become uncontrolled for a host of reasons. We feel it will improve the reputation of the profession if there’s a more unified structure to selecting and hiring a firm – large, small, independent – because it will result in better, more strategic work. We’re working on it, one RFP at a time.
Hello Robert,
Thank you for reading and commenting.
Undoubtedly my colleagues would agree with my assessment that anything that improves the process is a good thing.
I’m sure my readers would like to learn more.
Cheers,
Gene