Shindler’s Site: The Power of Proactive Proposals

"The world has changed since September 11." Some would say it is an overworked expression. Others think it is an understatement.

I say the latter. The changing economic climate in the major industrial nations since the attacks on New York and the Pentagon is testimony to this, even though the financial picture had been declining before Sept 11.

Clearly it is time for businesses to comply with government leaders’ requests to get back to work. Many have, but in the context of recent events many of us must rethink how we conduct our business and how those changes will determine the future direction of our organizations.

I did not realize how much impact the attacks had had until early November, when I dropped in on an acquaintance who is CEO and controlling shareholder of a service organization in Los Angeles. He had suggested several times that I stop by sometime. For various reasons, the time had never seemed right, but that day it did.

To my surprise, I was asked to join a meeting that was in progress.

The CEO explained to me, "We are discussing how to win the business of a client who is on the cusp of making a deal. We have talked with the company several times; they seem to be genuinely interested in what we do, and we both know that we can add value in what we can bring to them."

"It seems like a done deal, then," I said.

"I wish it were," said the sales exec. "But they just don’t seem able to decide what they are looking for. We would write a complete proposal at the drop of a hat if we really felt that there was a fighting chance of winning a contract, but it never seems to get that far."

"How do you know they believe your firm’s services are worth the effort and your fees?" I asked.

The CEO said, "They have spent a fair amount of time meeting with us, asking questions. And people from companies we each do business with have told us that they respect our abilities. We even made a trip to their offices a few states away last year when I was convinced they were ready to move forward and request a formal proposal. It was clear that they had read our marketing materials and that they were familiar with what we do."

"Is it possible that they are great at discussions, but somehow cannot put their thoughts in writing?" I asked. "Could it be that they may be better at reading and reacting than playing a proactive part in determining how your services would assist them? Would it be better if you were to prepare a formal proposal anyway, even though they have not specifically requested one? Maybe your taking the initiative would be the impetus they need."

"Formal proposals take considerable time and effort," said the sales exec who I assumed would be the one to be charged with its preparation. "If I cannot determine specifically what they are interested in, a formal proposal may not be any more effective than our corporate marketing materials. I would not want to be too presumptuous in proposing specific services and missing what they really want."

"It may be that they are in the process of redefining who they are and what they need," I said. "Lots of organizations have been forced to do that in the past month or so. Things have changed. Economic and revenue models for all kinds of businesses are undergoing scrutiny. What worked before may need to be tweaked a bit. And what did not really work before, but was commonly accepted under other conditions, is now subject to change, and rapid change at that."

"What if we did a formal proposal and it was not quite right?" asked the CEO. "What if it closed the door instead of opening it further?"

I said, "You said they read your materials, which tells me they will read the proposal. Why not prepare a proposal tailored more closely to their needs than your marketing materials, even if you know going in that it won’t be the final version? It could persuade them to come to the table for negotiations, a prelude to the final proposal. Getting them to negotiate is a major objective. Taking a more proactive position of making several pertinent suggestions may allow them to set the priorities in their organization and may be just the catalyst they need."

"You make valid points," said the sales exec. "I’m worried that I will be perceived as being presumptuous. I am also concerned that offering a number of options for services might cloud the issues and turn them off. What if that happens? What if the pricing is off?"

"What have you got to lose?" I said. "They are not doing business with you now, even though you have a strong sense that they want to. I doubt they were just being nice. Make a proactive proposal and prove that you can truly bring value to the relationship. Be inventive on the pricing, since the economics of their business are changing. It need not be what you would have proposed a few months ago, but it may be right today. Remember it is how it affects each of your respective bottom lines, not just the top lines."

E-mail from the CEO a few weeks later confirmed that my suggestion worked. It was not easy. It took time and multiple drafts to arrive at an agreement that was acceptable to both sides. But opening the lines of communications with a formal proposal got the groups to a formal meeting.

The world is changing for many of us. We must all carefully rethink our approach to daily and long-term business opportunities. While the notion of a proactive effort is definitely not a new concept, its application may make the difference to you, your business, and the industries in which you work. Sometimes if you do not ask, you do not get.