Presentation Title

Using CMMI, ITIL, and PMBoK to Improve Proposal Operations

Presenter:Brenda Crist Lohfeld Consulting Group

“Knowledge is Power”June 9-12, 2009, Chandler, AZ 2

Current Proposal Practices

Proposal Management Books Often Focus on Proposal Management Basics: Capture and Positioning Bid Request Bid Decision Proposal Scheduling and Development Proposal Planning Review Teams

These processes are tried and true and promote collaboration and delivery on schedule


Do These Processes Meet All Your Job Needs?

“Knowledge is Power”June 9-12, 2009, Chandler, AZ

Does Your Job Involve Multiple Functions?

Do You Manage Multiple Projects? Staffing and Resources Budgets and Communications Cost and Quality Control

Do You Provide These Services? Proposal Systems Design Pipeline Management Knowledge Management Configuration Management Template Creation Training Services

Do You Promote Continual Improvement?

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What Can We Learn from Industry to Improve Our Management of These Tasks?


We Can Take Best Practices From:

The Project Management Institute, Project Management Body of Knowledge (PMBoK) can help us effectively manage multiple projects

Information Technology Infrastructure Library (ITIL) can help us deliver better proposal services

Capability Maturity Model Integrated (CMMI) can help us smoothly integrate proposal functions

ISO 9001:2000 can help us improve consistency and quality

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We write about “industry best practices” daily; let’s use them to improve proposal management


What Can We Learn from PMBoK?


PMBoK Highlights

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Offers a framework for project management backed by project management best practices


What Can We Take From PMBoK?

Specific practices for improved:– Project Planning– Schedule

Management– Quality

Management– Communications

Management– Cost Management – Risk Management

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We can also use PMBoK methods for managing two or more projects concurrently


Project Planning and Scheduling

In advance of proposal activities: Develop a realistic pipeline to determine workload

(preferably Using a Customer Relationship Management (CRM) Tool)

Develop project plans with WBSs and schedules for 10, 15, 30, and 45 day turnarounds

Establish milestones for major capture/proposal activities Establish agreements with vendors and consultants

Manage to the schedule; reporting status daily against the milestones

Proactively monitor and record variance of planned vs. actual activities

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Pre-planning + Commitment = Success


Examples

ID# Agency

Name Description Capture

Status RFP Date

Value

110 DOE ELMS Program

BPR Smith Pre-RFP 5/1/09 $25M

210 DOC IPS Program Help Desk Jones RFP 6/1/09 $50M330 Navy TACS

ProgramCall Center Turner Future 9/1/09 $40M

Create a PipelineID Task Name Duration Start Finish

1 RFP Release 0 days Wed 4/1/09 Wed 4/1/09

2 Kick-Off Meeting 0 days Fri 4/3/09 Fri 4/3/09

3 Storyboards 0 days Thu 4/9/09 Thu 4/9/09

4 Pink Team 0 days Fri 4/10/09 Fri 4/10/09

5 Red Team 0 days Mon 4/20/09 Mon 4/20/09

6 Gold Team 0 days Mon 4/27/09 Mon 4/27/09

7 Production 0 days Wed 4/29/09 Wed 4/29/09

8 Delivery 0 days Thu 4/30/09 Thu 4/30/09

4/1

4/3

4/9

4/10

4/20

4/27

4/29

4/30

M W F S T T S M W F S T T S M W F S TMar 29, '09 Apr 5, '09 Apr 12, '09 Apr 19, '09 Apr 26, '09 May 3, '09

Create a Work Breakdown Schedule


Budget realistically

Plan ways to drive down proposal development costs

Proposal costs are often unpredictable; leave plenty of cushion in the budget

Implement cost controls and break down work into small incremental pieces

Measure performance

Maintain historic cost data for the next budgeting cycle

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Cost Management

You will be a hero if you deliver your proposal under your B&P budget


Tips for Driving Down Costs

Buy supplies in discounts like paper, toner cartridges, and binders and tabs

Negotiate discount rates for hardware maintenance (printers, copiers)

Establish agreements with set rates for services vendors like writing or editing

Create a knowledgebase of reusable written materials (resumes, graphics)

Hold brainstorming sessions after hours w/dinner so billable hours are not lost

Limit review team membership

Control color printer use

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Re-invest savings back into the training of your staff


Quality Management

Incorporate quality standards

ISO 9001:2000, PMBoK, CMMI

Implement a Quality Assurance Program

Define quality metrics

Define processes for accomplishing milestones

Identify artifacts resulting from reviews

Implement Quality Controls

Compliance and solution reviews

Editorial and document reviews

Book check and media reviews

Evaluate and continuously improve quality

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The quality of the proposal reflects your company’s quality


Incremental Quality Controls

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Build time in for quality reviews throughout the proposal life cycle


Human Resources Management

Define Staffing Plan Define roles, authority, and

responsibilities Define competencies, experience,

education, certifications Maintain a realistic staffing plan for

program and specific proposals

Develop a Training Plan Define Program-Level Plan Define Individual Development Plans Attend APMP events

Develop a Retention Plan Spot bonus pool or bonus plan Alternate work schedules for long hours Morale boosters

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Develop plans and objectives for training and retaining valued capture and proposal

management employees


Communications Management

Five things we can learn from PMBoK: Create a communications plan and train

members in its use

Identify the most effective and secure methods for information distribution

Define the best way for communicating with stakeholders/participants

Identify how to report status

Define your risk escalation path

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Communications represent a significant part of a proposal manager’s daily activities


Communications Plan

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Risk Management

Define a risk management plan or processes with escalation paths

Identify major risks Proposal program risks: Lack of

resources (personnel, technology, funds), Lack of training, Lack of time

Proposal risks: Solution gaps, Lack of key personnel, Missing price information, Unforeseen RFP changes/amendments

Maintain a risk mitigation log Identify the risk Person responsible for mitigating the

risk Risk mitigation timeframe and due

date Risk mitigation outcome

Discuss risk mitigation during daily standup meetings and at routine staff meetings

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Keep management aware and focused on potential capture and proposal risks to mitigate deficiencies

Date

Risk Due Assigned To

6/16 No Solution for Reports

6/26 James Smith

6/17 Missing Key Personnel

6/27 Recruiting, John Doe

6/18 Missing SW Pricing

6/28 SW Dept, Jane JonesRisk Log


What Can We Learn from ITIL?


Information Technology Infrastructure Library (ITIL) Framework

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If your job requires more than just proposal management, ITIL offers a framework for the delivery of services


The ITIL Framework Defined

Service Strategy provides guidance on how to design, develop and implement service management

Service Design describes how to convert your service strategy objectives into service assets

Service Transition describes how to ensure service elements (applications, infrastructure knowledge, facilities) are delivered on schedule

Service Operations provides strategies for service support (incident, problem, access mgmt, and service delivery (infrastructure and security management)

Continual Service Improvement measures performance, implements improvements, and ensures expected results are achieved

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ITIL is an IT infrastructure and services framework originated by the UK Office of Government Commerce


Service Strategy and Design

Develop Your Service Strategy What services are you offering in addition to proposal management and

production?o Knowledge managemento Data calls/information requestso Change and configuration managemento Customer relationship management (CRM)o Pipeline managemento Proposal facilities managemento Task order registration and processing

Who are your internal/external clients? What assets do you need?

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Develop a service strategy that meets the needs of your internal and external clients


Knowledge Management Services


ITIL Knowledge Management Tips

Make knowledge easy to access and intuitive to find

Create an electronic library using directory folders or a collaboration tool

Create instructions for a cheat sheet for finding information

Restrict access to the knowledgebase as appropriate for your company

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Don’t re-create the wheel – build a knowledgebase


Items to Put in the Knowledgebase

Resumes (updated annually) Past performance summaries (updated annually) Processes for program planning, cost control, human resources,

communication, risk, quality, and monitoring Management factoids about retention, degrees, certifications Processes for transition, incident, problem, change, configuration,

release, asset, availability, capacity, and security management Technical architectures and system flows for operations Performance management success stories to demonstrate

performance at or above industry averages Problems and solutions Kudo letters and success stories Proposal templates Art library containing photos and graphics

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Do You Feel Like a Help Desk?

Are you always fielding questions about company characteristics? Like number of employees, certifications or revenue?

Are you always asked for past performance summaries or resumes?

Are you always asked for sample graphics or photos?

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If you feel like a help desk, implement ITIL best practices for service management to function most

efficiently


Consider Adding a Self-Help Feature

• Work with company executives to determine what type of knowledge should be included in the self-help feature

• Determine how you will restrict access based on roles • Identify what subset of the knowledgebase can be shared • Setup policies for adding, updating, and maintaining data

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The self-help feature can benefit the company by

providing secure, accurate, consistent, and timely

information


Configuration Management Services


ITIL Configuration Management Tips

Keeping knowledge under configuration control increases proposal preparation efficiency


Items to Put Under CM Control

• Capture Plans and CRM data• Solicitation, Q&As, amendments, BAFOs, debriefs• Proposal Management Plans and schedules• Kick-off meeting agendas• Compliance matrices, storyboards, outlines• Templates, graphics, photos• Background information• Input from authors• Blue, black, pink, red, and gold team versions of the

proposal/task order or oral presentations• Resumes, past performance summaries• Final proposals (hardcopy and softcopy)• Proposal budgets and metrics

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What Can We Learn from CMMI?


Capability Maturity Model Integration (CMMI)

Level 1“Initial”

Process in unpredictable, poorly controlled, and reactive

Process is characterized but is often reactive

Process is defined, repeatable, and proactive

Process is measured and controlled

Focus on process improvement

Level 2“Managed”

Level 3“Defined”

Level 4“Quantitatively

Managed”

Level 5“Optimizing”CMMI is a

process improvement

approach


Continual Process Improvement

• Obtain buy-in for a CPI Program

• Define SOPs for performing your job

• Establish metrics• Allocate sufficient resources to

collect metrics and analyze findings

• Use IT to facilitate CPI data capture and analysis

• Monitor performance and record lessons learned

• Identify and implement improvements

• Control improvements to verify they achieve the intended result

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Start with one or two areas you wish to improve


Suggested Measurements

• Win ratio• Completed on schedule • Completed within budget• Free of editorial defects • No unauthorized changes

made to baselines• All proposal artifacts are

kept under CM control• Internal clients express

high satisfaction with service

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Select performance metrics and use them to measure how well you perform


Training

• Use feedback and metrics to identify training needs • Train external clients: Proposal training classes, secure, just-

in-time training knowledgebase• Proposal team training: On-the-job training, knowledgebase,

formal proposal training, APMP events, professional certification programs

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A well-trained team improves efficiency, increases retention, and improves morale

APMP NCA Professional Day 2008


Consider Using Software Development Techniques to Facilitate Proposal Management


Software Development Methods Applied to Proposal Development

• The Software Engineering Institute (SEI) originally designed CMM/CMMI to define what processes and activities were needed to develop software

• Many best practices were developed to specify how these processes and activities should be accomplished:– Waterfall Method– Spiral Method– Iterative Development Method– Agile Method– Plug and Chug Method

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Evaluate each solicitation to determine the best process for developing a winning proposal response


Proposal Development Methods to Consider

Traditional Development

• Storyboard• Annotated Outline• Pink Team• Red Team• Gold Team• Production • Delivery

SW Development Techniques

• Waterfall• Plug and Chug • Iterative Method• Spiral Method• Agile Method

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Consider using an iterative development technique if your solution is not established


Burn Rate/Burn Down Chart

• When using an iterative/agile development method link accomplishments to a Burn Rate/Burn Down Chart, so executives can assess progress in comparison to the schedule

0%

20%

40%

60%

80%

100%

120%

Forecast

Actual

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A Burn Rate Chart illustrates your performance against the budgeted schedule and cost

Burn Rate/Burn Down Chart


What Can We Learn from ISO 9001:2000?


ISO 9001:2000 Highlights

• ISO 9000 is a family of quality management standards maintained by the International Organization for Standardization (ISO)

• To become ISO 9001:2000 certified you need:– A set of procedures covering your business process – A plan for monitoring processes– Records demonstrating you followed your business

processes – A plan to check output for defects and a plan for

corrective action – Regular review processes – A plan for continual improvement

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We Can Learn to Write Effective SOPs Using ISO Guidance

• Procedures should have: – Clear instructions

and a schedule– Owner(s)– Metrics– Monitoring methods– Reporting methods– Audit methods

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Set expectations and communicate how you will perform proposal management activities using SOPs


Sample SOP

SOP Element SOP for a Proposal Kick-Off Meeting Agenda

Instruction Develop an Agenda for the Proposal Kick-Off Meeting. The Agenda should contain a welcome from executives, a bid review, proposal schedule, writing assignments, and meeting schedule

Owner Proposal Manager

Metric Distributed at Kick-Off Meeting

Monitoring Method

Capture Manager works with the Proposal Manager to ensure it is being created

Evaluation Method

Executive Management and the Capture Manager review the agenda prior to the meeting and Proposal Manager makes corrections

Reporting Method

Agenda distributed at the Kick-Off Meeting and stored in the Proposal Library

Audit Method Quarterly review of Proposal Library to determine if the Agenda is present


Internal Audits

• Conduct quarterly audits to determine if artifacts are:– Present– Complete– Secure– Correctly located– Require updating

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Internal audits provide a discipline for ensuring your records are present, secure, up-to-date, and easily located


To determine if industry best practices can help, make a list of your job functions


To determine if industry best practices can help, make a list of your job functions

• Proposal Process Management

• Proposal Project Management

• Proposal Service Management

• Proposal Performance Management

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Proposal management is a multi-dimensional process often involving project, service, and

performance management

Performance

Mgmt

Functional

Categories

Service

Mgmt

Process Mgmt

Project Mgmt


Functional Breakdown

• Process Management– Capture Management– Proposal Management– Coordination Management– Graphics/Art Management– Production Management – Project Management

• Project Planning / Scheduling– Cost Management– Quality Management– Human Resources Management– Communications Management– Risk Management

• Service Management– Knowledge Management– Pipeline Management– CRM Management– Change Management– Configuration Management

• Performance Management– Measurement and Analysis– Training– Continual Improvement

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List and categorize your job functions to determine if you can benefit from industry best

practices


Link Functions to Best Practices

Function Best Practice Area

Risk Management PMBoK Risk Management

Cost Management PMBoK Cost Management

Knowledge Management

ITIL Service Transition for Knowledge Management

Continual Improvement

CMMI Continuous Process Improvement and ITIL Continual Service Improvement

Quality Management ISO 9001:2000 and CMMI Process and Product Quality Assurance Process Area

Communications Management

PMBoK Communications Management

Configuration Management

ITIL Service Transition for Configuration Management and CMMI Configuration Management Process Area

Link your job functions to best practices and create SOPs to enhance your performance


Summary

• As a proposal professional your job is complex and demanding

• It involves the management of multiple processes, projects, and services simultaneously

• Learn from industry and adapt best practices and lessons learned to help as needed

• Pass your lessons learned and best practices onto others

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Thank You

Brenda CristAPMP NCA Vice PresidentProfessional Day Committee Chairperson 2009Principal, Lohfeld Consulting Groupwww.lohfeldconsulting.com

[email protected]

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