October 2015, Getting Lean with Your Go/No
Transcription
October 2015, Getting Lean with Your Go/No
Getting Lean with Your Go/No-Go Decisions Business Development Best Practice Series For those in the manufacturing world, Lean Principles have been commonly practiced for decades. Recently, Lean has also become popular in the construction industry. One key tool of Lean, the Plan, Do, Check, Act Cycle, which originated in the 1930’s, can be used as a great foundation for a strong Go/No-Go decision making process. Published October 2015 based selection process, you must also consider your ability to differentiate from the competition and provide more value to the customer. DO – The process then moves to the DO stage, where the Go/No-Go decision for the pursuit is reached based on honestly answering the questions posed during the PLAN stage. It is imperative that good records are kept, not only of the final decisions, but of how the process worked. PLAN – The first step is to develop a process for bid pursuit and Go/No-Go decision making that fits your company’s overall strategy. The process should not be too cumbersome, balancing simplicity with the sufficient rigor needed to properly identify the correct pursuits which fit the financial and strategic goals of the organization. A best practice is to have as many of the key decision makers as possible involved in the planning process, so that a decision in the next phase can be reached efficiently. There are two overarching questions to ask the team when considering a pursuit: 1. Does this project fit our overall corporate strategy? 2. If so, can we win? When answering, “Does this project fit our strategy?,” consider how well the scope of work fits your core competencies. Remember to consider your company’s “A” clients, those that you have a great past relationship with, and/or potential new clients that have been identified as being a good fit. Possibly, expanding geography or broadening your scope of work makes sense for the “A” clients if pursuing a customer focus strategy. When answering, “Can we win?,” some important external factors to consider are the expectations of the client as well as potential competitors’ past experiences and similar work scopes. Internally, it’s beneficial to look at your resources: financial, human, and equipment, available for deployment at the projected start date of the project. For a qualification CHECK – Once the project is awarded and results are identified, three key metrics should be evaluated during a group debrief activity: 1. What were the results? 2. Was the decision made in the DO stage the correct one? 3. How did the process work? What could be changed? ACT – Utilizing the data obtained from the CHECK stage, alter the process for the next bid (if necessary) and begin the process all over again. It may not be worthwhile to make changes after a single bid, but if a pattern develops, it may be time to rethink the process. Key Takeaways: • Follow company strategy in Go/No-Go decisions (plan) • Do keep good records of the process • Debrief to check your results and processes • Act to adjust the process, if needed About the Author: Katie Spear, CPSM Marketing Director, i+iconUSA Infrastructure & Industrial Constructors USA Katie has over 25 years of experience, including strategic planning, bid proposals, and social media. i+iconUSA is a family of heavy civil construction companies which creates safe and innovative infrastructure solutions. Interested in writing a future one-page article for the Business Development Best Practices Series and marketing yourself and your company to thousands of readers? Contact Sarah Gallegos at gallegoss@agc.org. Layout designed by i+iconUSA.