| There is no better way to convince a | | | | |
| potential customer that yours is the right | | | | To drive this concept home, let's use an |
| company for the job than to demonstrate a | | | | analogy of a woman going through pregnancy |
| true understanding of the risks the program | | | | and childbirth. Let's say that there are |
| will be up against and to come up with plans | | | | things that educated pregnant women know to |
| to mitigate those risks upfront. But in many | | | | do to maximize their chances of success, such |
| proposals, the risk management section ends | | | | as going to the doctor for exams, not |
| up as a missed opportunity to shine at best | | | | smoking, and getting good nutrition. Then, |
| and a setback at worst. Rather than | | | | there are also risks that could possibly |
| showcasing a real knowledge and understanding | | | | occur due to the nature of the process, such |
| of the program and proposed solutions, the | | | | as any number of medical complications that |
| risk section falls flat or actually does | | | | are common to pregnancy and childbirth that |
| harm. | | | | could affect the cost (medical bills), |
| | | | schedule (carrying the baby to term), or |
| It happens for two reasons. One reason is | | | | performance goals (giving birth to a healthy |
| that many proposal teams fail to put enough | | | | child). If a woman were to put together a |
| time and consideration into developing a | | | | risk matrix for a proposal to become |
| solid risk section. They assign one author to | | | | pregnant, documenting the risks of what would |
| write it and then shift their focus to other | | | | happen if she did not have timely medical |
| work. What they do not realize is that great | | | | exams or smoked would usually imply her |
| risk sections are usually born from hours of | | | | irresponsibility. Documenting possible |
| intensive brainstorming and input from every | | | | medical complications inherent to the nature |
| key player who truly understands the program. | | | | of pregnancy, such as gestational diabetes, |
| Instead, the process by which most risk | | | | would demonstrate a thorough and thoughtful |
| management sections are written leaves little | | | | understanding of the risks. |
| room for success. It is impossible for a | | | | |
| single author to draw out and evaluate all of | | | | There are only three categories of risks that |
| the program's risks. | | | | should be presented in proposals: |
| | | | |
| The second reason is that the wording of many | | | | 1. Risks caused by lack of information or |
| risk statements fails to represent the | | | | knowledge about the project that could only |
| company as an expert, and instead hurts the | | | | be gained in the process of project |
| company's chance of winning. Often risk | | | | execution; |
| statements tend to follow this train of | | | | |
| broken logic: "If we fail to provide such and | | | | 2. Risks caused by lack of control or |
| such (with "such and such" standing for | | | | resources to deal with external events or |
| something that is expected from any good | | | | authorities; and |
| company doing well in this line of business), | | | | |
| this horrible thing will happen." For | | | | 3. Risks caused by lack of time to complete |
| example, "If no Customer Satisfaction Survey | | | | tasks sequentially and methodically. |
| is established, there will be no feedback on | | | | |
| Service Desk performance, which may lead to | | | | If a company is bidding to perform a project |
| undetected systemic problems resulting in | | | | at a facility where no site survey has been |
| lower customer satisfaction." Then, the risk | | | | completed, an example of a good risk |
| mitigation strategy is to "Establish a | | | | statement would be that the "Existing |
| Customer Satisfaction Survey." This type of | | | | facility is not large enough to support the |
| risk and mitigation statement reads like an | | | | required number of personnel for the Service |
| exercise in shooting oneself in the foot. | | | | Desk function, which could lead to inability |
| Essentially, it says to the customer, "If we | | | | to provide the required services." The |
| do not know what we are doing and we fail to | | | | mitigation would then be identifying an |
| do what any decent company should do if it | | | | alternative to the existing facility in case |
| wins the bid, then we will fail." Do not | | | | the survey findings confirm this risk |
| offer a risk like this and then couple it | | | | instance. "Not getting environmental licenses |
| with a mitigation such as, "But we do know | | | | and regulatory approvals in time because of |
| what we are doing." | | | | the issuing agency's notorious scrutiny" is |
| | | | another example of a well-identified risk. A |
| Consider another example where the risk is of | | | | good mitigation could talk about expert |
| "Equipment not identified early enough or | | | | bodies, relationships with the regulators and |
| critical equipment items not identified," and | | | | local authorities, and the ability to design |
| the mitigation is something as rudimentary as | | | | and build in accordance with every possible |
| "Ensure early identification of long-lead | | | | standard. |
| items." Think about this from the standpoint | | | | |
| of the customer. If the customer is choosing | | | | It is critical to remember that the only way |
| an expert logistics company, and one of your | | | | to come up with solid risk and mitigation |
| company's key programmatic risks is that | | | | content is to collaborate as an entire team, |
| someone will fail to identify equipment in | | | | rather than tasking a single author. Even if |
| advance, what kind of image are you | | | | there is no requirement for a separate risk |
| projecting? | | | | section, risk analysis is still |
| | | | all-important. Discussion of applicable risks |
| The examples of "risks" cited above do belong | | | | and mitigation strategies also should be |
| in the proposal, but only as elements of the | | | | included in each section, to showcase your |
| technical or management approach, and not as | | | | understanding of the job at hand. In your |
| components of the risk section. | | | | brainstorming session, it is a good idea to |
| | | | have a mediator who can point out the holes |
| A good "do" for risks is to avoid | | | | and flaws in your risk ideas. A mediator will |
| representing as a risk anything that is | | | | also ensure that you avoid the pitfall of |
| within your company's control as well as | | | | inadvertently stating as a risk that your |
| anything that any reasonably good company | | | | company is unfit for the job, and then |
| would do in this line of business. The kinds | | | | stating for the mitigation that your company |
| of risks you need to show in your proposal | | | | is - go figure - fit for the job. Make your |
| must be those external to the company's own | | | | risk statements work for you, since they can |
| abilities to plan and manage the program | | | | be pivotal in convincing the customer that |
| well, or, in other words, those that are | | | | yours is the right company for the job. |
| inherent to the nature of the job. | | | | |