The Winning Process That Drives Federal Business Development and Revenue
Business Development (BD) in the federal market is an art form as well as a science. Because it is essentially a person-to-person endeavor (usually verbal but often written), it involves all of the nuances of interpersonal persuasion. In a nutshell, the goal is to build a relationship(s) as efficiently as possible that will lead to revenue. Some persons were made for this task while others must learn this skill in the school of hard knocks.
It is also a scientific endeavor in that the Federal market acquires via formal processes, which can make the endeavor deeply complex and overwhelmingly broad. Without a disciplined approach to guide the ‘search and targeting’ function, it is easy to waste much time and money chasing the wrong organization or individual.
What’s needed is a time-tested process or methodology that links the two ends of this spectrum (between art and science) such that the result is a well vetted continuum of activities. It begins with the natural talent of a professional business developer-for engaging others. This is best informed by correct market data and leadership, and finally leverages these into a step-by-step path to revenue.
Putting this all together is a lot more difficult than it sounds. Here are some of the most important high-level skills that a top performing business development professional is familiar with:
· Using federal market tools to better understand the market and search-out opportunities;
· A clear focus on the goal;
· A honed (i.e., specific) value proposition for the target market and targeted agency(ies);
· Sales support teammates, as needed;
· A patient urgency that strikes a balance between “do it now” and “these things take time”; and
· A patient urgency for getting the job done without excuses.
Phase 1 Scoping the Endeavor
This begins with a cold-eyed assessment which asks and answers the following questions:
• Which product or service (as specifically as possible) shall your firm offer?
• Which characteristic makes your offering unique (and differentiated from the competitor)?
• Is your offering appropriately priced for the federal market?
• Is there sustained funding to support your entrance into the federal market?
• What is the best way to get long-term support from a sponsor or investors?
• What does your firm need to drive success...as soon as possible?
• Which specific submarket (defense, civilian, intelligence community (IC), healthcare, etc.)
This initial phase should focus on understanding the context and overall trends that are driving the federal market. For instance, since 9/11/01, information sharing and IT security have risen to the top of the list of issues that have caused the federal agencies and systems integrators to spend billions of dollars. The big opportunities are tied to these kind of macro trends (although billions more are also spent in just as valid—if not trend-related topics).
Phase 2 Crafting the Go-To-Market Plan
As the level of specificity for engaging individuals in the federal market, comes into focus, this next round of factors takes shape:
· Who will be conducing specific market research, if necessary?
· For team selling (very common in the federal market), are the roles defined?
· Who will be calling targeted decision makers and delivering sales presentations?
· How many months, under the best circumstances, are necessary to see revenue?
· What are the common pitfalls?
· What is the best measure of success along the way?
· How do you know you’re succeeding?
· Who can help get the offering locked-in early in the procurement cycle?
· What are some tricks and special techniques that drive success quickly?
· Is your firm ready for delivery?
Phase 3 Follow Through
It’s the answers to these questions that determine success, not simply asking the questions and taking a “common sense approach”. And adjusting along the way is the only sane way to proceed. During the follow through phase, here are some of the key indicators to success:
· Are we receiving validation on our value proposition, pricing, and overall solution?
· For those who have validated us, do we know specifically why they purchased?
· How do we compare to our competitor’s offering?
· Where we have lost a sale, do we know why?
· Are the right individuals performing the role(s) that are a good fit for their skills, talents and abilities for moving forward?
· What adjustments need to be made (if any) to our offering to increase margin, expand opportunities or broaden our influence?
In summary, asking this list of questions is not where the genius lies. It lies in the interaction of the questions with the answers in a shifting market, where, in some cases, the client does not want to be found (the intelligence community) or are postured in a manner to work against the sales team (the Department of Defense). Creating from scratch a rational sales and business development strategy that efficiently leads to revenue is best informed by experience, proper tools, patient sense of immediacy and finally, hard work. In the end, it is well worth the reward, realizing that the US federal market is one of the largest and most stable purchaser of goods and services in the world. FY11 will prove to be a year of change and firms that understand how to engage the federal agencies will benefit.
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By combining a breadth of activity with depth of knowledge, the Venona Consulting team will help your firm create a funnel of federal opportunities and drive them to revenue. For a telephone consultation, please call Dan Callahan on 703-848-9204 or dan@venonaconsulting.com