The Flawed RFP: A Time Sink in the Digital Age

In the age of the internet, AI, and social networks, traditional Requests for Proposals (RFPs) often waste valuable time for both the organizations issuing them and the vendors responding.

George Dean

Why RFPs Fall Short

Organizations typically issue RFPs for three main reasons:

  1. To formally communicate their needs to vendors.
  2. To gather information and knowledge about potential vendors and their solutions.
  3. To use vendor proposals as a basis for their acquisition decision.

However, RFPs frequently become an inefficient drain on resources.

The RFP Paradox

Here's the core problem: 

Overly bureaucratic procurement policies can further restrict vital communication and discovery between business users and vendors during the RFP process, hindering the flow of crucial information.

Given the significant time and effort most RFPs demand, where's the true value? The process is expensive and time-consuming, and often leads to less-than-optimal decisions. Time is an organization's most precious and irreplaceable resource, and RFPs frequently deplete it for marginal returns.

Enhanced RFP Selection Journey

1. Initiate

Engage all stakeholders, organize requirements clearly, and establish a fair, rational evaluation process.

Deliverable: Charter (Mission Statement)

2. Define Requirements

Beyond application-specific needs, consider vendor stability, management and support capabilities, reporting, and analytics. 

Deliverable: Requirements

3. Create RFP

Develop and publish an RFP that includes questionnaires covering technology standards, vendor profiles, user census, functional requirements, and cost analysis. 

Deliverable: RFP

4. Evaluate RFP

Use quantitative scoring methods to assess proposals. Select top-scoring vendors for interviews and software demonstrations. 

Deliverable: Vendor Proposal Scores

5. Conduct Interviews

Invite high-scoring vendors to present their solutions and demonstrate their software onsite. 

Deliverable: Interview and Demo Scores

6. Check References

Connect with vendor customer references to gain insights into vendor performance and solution capabilities. 

Deliverable: Reference Call Notes

7. Conduct Visits

Arrange onsite visits to the headquarters of top-scoring vendors. Meet senior leadership and tour facilities, including data centers. 

Deliverable: Field Visit Scores

8. Select Vendor

Recommend the vendor with the highest cumulative score across all evaluation stages. 

Deliverable: Vendor Recommendation