The RFP Process: Why do we still do this?
The RFP process, Why do we still do this?
I know this isn’t going to come across as some revelation, but, for cathartic reasons I need to get this off my chest… the RFP process in software procurement is a monumental waste of time, energy, and effort in the Business-to-Business world. Sure, it sounds great. It’s a formal process to solicit and evaluate solutions proposed by a collection of vendors in a way that, in theory, removes bias or partiality from the soliciting company. But, where in that process is the requirement to identify and find the bestsolution for the soliciting company?
Don’t get me wrong. RFPs have their place in Government, Non-Profit, NGO procurement processes, where the potential for bias impacting vendor selection is high. But in the private sector, particularly in a private sector governed by capitalism, RFPs, at least to me, don’t seem to help companies select the best solution to meet their needs.
From my direct hands-on experience of participating, authoring responses to, and presenting RFPs, I have found that this method impedes, and in most cases prevents, the company with the need being matched with the best possible vendor to deliver the solution. And what’s even crazier is that almost everyone knows it is a broken process, but we are somehow slaves to the process anyway. Why? How did this become a thing, and Why do we still do this?
Don’t just dismiss this as a rant from some cranky industry veteran who has developed an acute psychophysiological response to RFPs (although it is that). I am genuinely curious as to why the business community at large continues to employ this method which has an enormous array of critics aligned against it. And that it includes vendors responding to these as well as people in the company who are charged with finding, selecting, and procuring solutions to advance their respective company’s interests. I am sure there is a minority of people who “love” RFPs and the administrative processes surrounding them. But, I am pretty sure this is a tiny minority compared to the overwhelming majority of people in sales, finance, product management, operations, management and finance who “hate” RFPs.
Clearly, there has to be a better way. Vendors know it. Soliciting companies know it. So, why don’t we just do it and make it happen??!!!
The criterion for selecting a solution, for any for profit entity should be:
- Does the vendor have the set of features/capabilities that meet your core needs, not all of them, but the core ones?
- Does the vendor have demonstrated performance in delivering these solutions?
- Who are the customers that the vendor can provide as references that are similar to your organization in size, complexity, and need?
- What is the reputation of the vendor?
- Are they domain experts in the specific area?
- What is the price/investment requirement? Does it meet my investment goals and affordability restrictions?
- What is the ROI on the investment?
- What is the risk associated with selecting the vendor?
- What are the intangible benefits associated with the vendor?
- Do you “like” them? Do you find them to be an organization you want to associate and do business with going forward?
That’s it. No exhaustive list of hundreds or thousands of requirements.
To all my fellow product managers out there: stop the insanity. To all procurement people: stop the insanity. To all management: stop the insanity. Ask yourselves this one simple question: Why do we still do this?
Total waste...