Ever felt run over by a truck once that RFP is out the door?
Decades and hundreds of Requests for Proposals later, I continue to lament the agony and ecstasy of business development. A colleague recently posted about the exorbitant cost of travelling and accommodation to present the proposal. He cited it could easily be done just as well over Zoom. Perhaps he is right. For me, the bigger issue is the dog and pony show itself. Ridiculous deadlines, enormous amounts of research and employee time all for a 10-20% chance of winning, I could go on. The process is flawed and more often than not, it fails to realize its goal.
Choosing an agency for an annual mandate or significant project is important. But it is not like comparison shopping on Amazon. An agency relationship that is viewed as a commodity is doomed to fail.
The RFP has been defined as a process bringing structure to the procurement decision allowing the risks and benefits to be identified up front. A written brief is expected to reflect the clients’ strategy and short/long-term business objectives and provide enough insight so that the recipients can offer a matching perspective. Therefore, in principle the RFP requires the issuer to specify what it proposes to purchase; alerts suppliers that the selection process is competitive and will generally follow a structured evaluation and selection procedure so that an organization can demonstrate impartiality. For the most part, that’s wishful thinking.
I include the definition because from where I sit RFPs have taken on a life of their own consuming vast amounts of time and effort on both sides of the equation.
Finding the right agency partner might be easier if we considered the end game and looked at how successful businesspeople make really important decisions. They use research, word of mouth, track record, reputation, references or more often than not, gut and chemistry. As for budget, if you pick the firm aligned with your corporate culture and their understanding of your business, I’d venture that you will arrive at a mutually satisfactory budget, assuming expectations are reasonable.
Is approaching ten firms, interviewing 6 and getting four to pitch with full-blown plans and granular budgets the way to go? Are you looking for a specific program to implement or a team able to generate great, strategic transformational concepts that become even better after getting to know you? Corporate governance indeed demands a stringent procurement process and most of the agency heads I know could easily live with that for seven-figure, complex, annual or multi-year mandates. However, as I have observed, the RFP is mostly overused or poorly developed, both compromising effectiveness.
Does the RFP process guarantee that what you see is what you’ll get?
When I am on the purchasing end I favor an informal meeting as a first step where it becomes abundantly clear as to first impressions and that gnawing question “can we work with these folks”. While it’s no secret that RFPs signify a huge investment of time and money across the board, they are not likely to disappear anytime soon, though some agencies have developed thoughtful screening processes to improve the win/loss ratio. I am all for improving the process and promoting a best-practice RFP that satisfies clients and agencies alike. After all, we want to be good business partners and have a little fun together.
Some unsolicited advice to companies on the hunt for an agency:
When I am on the purchasing end I favor an informal meeting as a first step where it becomes abundantly clear as to first impressions and that gnawing question “can we work with these folks”. While it’s no secret that RFPs signify a huge investment of time and money across the board, they are not likely to disappear anytime soon, though some agencies have developed thoughtful screening processes to improve the win/loss ratio. I am all for improving the process and promoting a best-practice RFP that satisfies clients and agencies alike. After all, we want to be good business partners and have a little fun together.
Things to keep in mind:
- Be specific. Tell us what you want, what’s important to you. Yes, we are vendors but generally sincere and good people.
- Be discerning – it’s quality that counts. Sending the RFP to 20 firms tells us you are unclear about what you need. The more you know about the firms BEFORE you invite them, the happier you will be and the less time you will spend finding the fit. Many agencies, including ours, will decline the RFP if more than 3 or 4 agencies are in the running.
- Budget matters. What purpose is served if you get ideas that cost ten times the budget you have? Firms can be very creative if they know what the budget is, even if it is not huge. Likely they will provide some additional ideas to whet your appetite. Many agencies will not accept an RFP invite if the budget is not provided.
- Be as generous with your time as the agencies are with theirs. Submissions made by email are void of the human element that is fundamental in a trusted relationship. Wherever possible meet the agency and have them present in person. This is easier to manage when only a few are pitching.
- Provide feedback. It is hard to deliver bad news, but honest feedback is constructive. For the RFP system to work, agencies need to believe that it is a worthwhile exercise. Ghosting is becoming a serious issue. If you fail to provide a timely response or feedback, word will get around.
- Tell us who is pitching. I fail to see the downside of knowing the competition. This lets us know if we are on a level playing field. Since we know our colleagues and competitors, we can make an educated decision on whether to respond.
- If your selection comes down to something not asked for in the RFP, give the other firms the courtesy of providing that information as well.
- Mutual respect is key. PR agencies work hard on RFPs. If you have no intent to replace an incumbent, putting out an RFP is not constructive for your current agency or the firms you are meeting with.
What do many agencies consider when answering an RFP?
- Should we participate? While keeping new business flowing is necessary, we are cautious about where to devote our resources. We have criteria to evaluate the risk/benefit of participating in a pitch and pay attention to how the RFP is written and structured. If there isn’t a written brief, if no budget is indicated (not even a range), and if 5 agencies are pitching, it’s unlikely we will participate.
- Is the timeframe reasonable? Cynicism comes from having a few days to prepare and waiting months for a response. Unless you are a Fortune 500 company, giving us a three-day deadline to answer a vague RFP rarely flies unless the agency is desperate, or has a lot of folks on the beach. And please, do not time your RFP deadline for the first week of January. We will never make our team work over the holiday period.
- Has this client worked with a PR firm, do they understand what PR is and have reasonable expectations? Having numerous failed agency relationships is a red flag.
- What is the client’s reputation and values? Canada’s leading PR agencies comprise a relatively small group and many of us are friends and colleagues. How companies value their agencies is as important as the reverse. Treating the agency poorly is a no-no.
- Is the RFP bonafide? Is it intended to get the incumbent back on track? Is it an attempt to get ideas that will be implemented internally? Will it result in business? The past few years have been challenging for agencies and clients alike. The pool of senior, skilled PR practitioners is limited, precious and comes at a high cost – which is why we’ve become super strategic in evaluating opportunities.
Navigating the world of RFPs demands a delicate balance between structured processes and human understanding. While these exercises serve a purpose in procurement decisions, their overuse or misuse can lead to inefficiencies and missed opportunities. As we strive for better partnerships and meaningful engagements, let’s not forget the value of clarity, transparency, and mutual respect. By approaching agency selection with a blend of strategic insight, genuine communication, a shared vision and even some compassion, we can move beyond the limitations of the traditional RFP model and forge relationships that truly drive success.