Cut & Paste

I was going through my files with one of my Directors of Client Development, while we were reviewing some RFPs. (I know, here’s another thought on RFPs.) Too many times I see RFPs that are clearly cut and pasted. I can line up a dozen recent relocation RFPs where 98% of the questions are the same.

On top of that, most of the questions are worthless if the goal is a thoughtful, productive selection process that helps the company select a relocation company that can connect strategic intent with logistics. My personal favorite is typically the first question of the RFP; some iteration of “state the nature of your business.”

When adequate thought is not put into the development of an RFP, the selection process becomes a commodity purchase.   Now there is nothing wrong with commodity purchases if two statements are true:
1.   There are no differences between the suppliers that may be bidding, and
2.   There is no difference between the company issuing the RFP and the companies whose RFPs are being copied.

The fact is that neither of those two statements is true. Logistics delivery in the relocation business is indeed a commodity and should be viewed only as a condition of doing business because in itself, the vast majority of relocation companies can deliver logistics.

When the selection process doesn’t dig deeper and beyond logistics, it actually creates an incentive for many providers to reduce or limit their service commitment. I’m personally aware of relocation companies actually limiting resources devoted to their service delivery. They know that as long as they maintain minimum service levels they’ll stay in the game because service quality is one of the hardest things to prove (and/or disprove).

These suppliers do this because they realize that if they can offer “lower prices” than their competitors they’ll win the business more often than not. The company that selects these suppliers feels like they’ve won because they’ve lowered the “cost of service.” Unfortunately, as we’ve written before, the exact opposite is true.

In our process, we are tracking RFPs question by question. We have developed a rating system that helps us determine whether we respond or not. “Cut and paste” RFPs score low in our rating systems. These are high on cookie cutter logistics questions, low on strategic intent content and questions. How can a company select a supplier when they are not clear on the results they need? Logistical performance is easy; meeting the strategic intent need requires different skills and a focus on results.

We have developed the “Low Stress Relocation Process ” to graphically illustrate the steps to a successfully navigate the talent acquisition and retention waters. An overview is on our web site. Comments are also welcome; email me at mickey.williams@caprelo.com.