In the June 1 issue of Employee Benefit News, Patrick J. Haraden discusses how employers should streamline their RFP (Request for Proposal) processes in order to get better results (note: click on the Current Issue to get to the article). His tips are in reference specifically toward health care insurance vendors, but the ideas presented work well for any RFP process. Having just finished three RFPs that were due in the last two weeks, I agree whole-heartedly with Mr. Haraden’s thoughts.
The RFP is a necessary evil. You need RFPs in order to determine who the best partner is for you (in our case, of course, that would be the best employee benefits consultant/broker). Unfortunately, most RFP responses tend to look the same and I can only imagine what a daunting task it is for those folks whose job it is to read through the numerous 60-page responses (not including the sometimes 100-200 pages of exhibits and appendices!). It isn’t until the finalist presentations and the face-to-face meetings that you’re really going to get a sense of whether or not we’re going to be a good partner for you.
I work with the members of the sales team to put together responses to RFPs, and I have completed a large number of these over the last several years (at least a few dozen). Using my experience, I would like to make some suggestions of my own, on top of Mr. Haraden’s, to make this process easier for all involved:
- You would not believe the number of RFPs that are sent out without specific instructions as to how the firm would like to receive the responses. Please tell me if you want a copy emailed, or if you need 5 hard copies. I’m happy to provide either, but I need to know what you want.
- If your deadline is the Friday before a holiday, please tell me if your office will be closing early (or won’t be open at all). If you’re deadline is 5pm, but no one will be at the office past noon, I need to know that.
- Review your questions. Many RFPs ask the same questions multiple times and in multiple ways. This may not be the most efficient way of getting to the information you really want.
- Give us enough time to really respond to your questions, especially if you are issuing a long, complex RFP. One week is not enough time. Ever. Two weeks is the minimum, but 3-4 weeks is best. We want to be able to take the time and really delve into the questions and show you how great we are. Ideally, you should have a thorough timeline in place that includes preparing the RFP, issuing the RFP, allowing time for questions, due date, finalist selection and meetings, and final selection of winner. Also, in this timeline, make sure you leave enough time for your new vendor/partner to actually implement the plan. If you want your new plan to be effective, it needs enough time to be implemented correctly.
- Know what your key focus areas are. Provide information on your current plans, employee demographics, locations, etc. The more info we have about you, the better information we can provide.
In short, plan ahead. Those of us who really want your business are going to take the time to give you a great proposal. Make sure that you’re getting what you want and need out of the process.
Having never personally been on the other side of the RFP table, what are some tips that you have for potential vendors who are responding to RFPs?
#1 by Audrey Collins on June 2nd, 2009
As someone who also responds to RFPs, I wholeheartedly agree with both you and Mr. Haraden. I would like to add some technical suggestions for those who develop and issue RFPs. 1. Please issue your RFP in Word. I have received scanned documents where I had to re-type all the questions in order to respond to them. If there are descriptive portions that you don’t want people to alter, then have those separate from the parts that need responses. Also, Excel spreadsheets can be OK if you are limiting responses to yes/no or brief data points, but are not the best for “essay” responses — especially if you have locked the size of the cell. Which brings me to my next point . . . 2. If you decide to limit the length of a response, please consider the type of question and allow an appropriate amount of space for a thoughtful response. It is quite frustrating to be asked a question like, “In 50 words or less, please give a detailed description of your process and show how it complies with government regulations.” Just citing the names of the government regulations can require more than 50 words! We realize that you don’t want to wade through 3″ thick binders, but some responses need more detail (or even diagrams) to answer the question fully. Thanks!