How to Run a Successful RFP NICK FREDRICK, W. CAPRA CONSULTING GROUP

Overview Introductions Why do an RFP RFP Process Lessons Learned Panel Q&A

Introductions Nick Fredrick (Moderator) Jen Pfaff Casey Zenner GM, Strategic Business Solutions W. Capra Consulting Group Jen Pfaff Director, Payments Domino’s Casey Zenner Enterprise Sales Executive Kount

Request for Information Terminology Type Term Definition RFP Request for Proposal Invitation for suppliers, often through a bidding process, to submit a proposal to provide a specific product or service. It is intended to provide the supply side company with the necessary information needed to submit a comprehensive and definitive approach to sourcing. RFI Request for Information Business process used by customers to collect written information regarding the capabilities of various suppliers, which will better inform buying decisions. RFQ Request for Quotation Business process used to invite suppliers to participate in the bidding process for specific products or services. It is a document that is created in order to obtain detailed pricing information.

If you don’t know where you are going, you’ll end up someplace else. - Yogi Berra

not every sourcing effort warrants a formal process When To Do an RFP General guidelines for when to do an RFP: High cost of goods/services Large impact to organization Longer contract (3+ years) Market scan is needed to make decision Don’t underestimate the amount of time, effort and energy to complete the RFP process. There’s an opportunity cost with the process – commitment and buy-in from management to put the time/resources into the process will pay dividends in the end. RFPs are time- and resource-intensive, and should be entered into with management buy-in and commitment to the resource requirements and overall process… not every sourcing effort warrants a formal process

Analysis & Recommendation RFP Process Preparation RFP Management Analysis & Recommendation

RFP Process Preparation Project charter Supplier engagement Define organization drivers and/or guiding principles Define scope, timeline Define project governance (roles/responsibilities) Supplier engagement Identify suppliers to engage Identify desired contract terms Notify suppliers of proposal; complete NDAs RFP development Obtain input from stakeholders Prepare detailed RFP documents Preparation

Components of an RFP Document Project Background What / Why Current/Future State Overview Narratives, process flows, relevant data Requirements Definition Functional, technical, security, financial, service, operations, etc. Instructions and Timelines Guidelines for response preparation Key RFP dates: response receipt, Q&A, onsite presentations, final decision Base Assumptions and Legal Disclaimers Anything required by your lawyers

RFP Process RFP Management Distribute RFPs Supplier Q&A Preparation of responses to questions submitted by suppliers Create scoring model Weighting of requirements and response elements Scoring scale and definitions Proposal response receipt RFP Management

Analysis & Recommendation RFP Process Written response scoring Review and score responses Solution comparison and analysis Shortlist identification Shortlist presentations Create agendas and scoring model Hold presentations, complete scoring Analysis/Recommendation Final solution and scoring review/analysis Final supplier selection and notification Analysis & Recommendation Distribute to RFPs to suppliers with signed NDAs Hold supplier Q&A – either done via email or in a conference call Create scoring model to facilitate review, evaluation and comparison of responses Weighting of the different parts of the responses requirements that will be evaluated and used to make a decision Can weight each section and/or each individual requirement to ensure those items most critical (to goals/strategy) are weighted highest in the evaluation Scoring definitions (e.g. 0-5 scoring and definitions of each score) Response

Takeaways Don’t underestimate the time, effort and resources required Clarity on the current state and future state direction is essential RFP development often uncovers “unknowns” How would new supplier integrate with existing ones Management sponsorship, buy-in, and participation Clear governance process for escalation and decision making Including subject matter experts and key stakeholders in the process Contract phase always takes longer than anyone expects it to

Additional Perspectives RFPs = Supplier Speed Dating Things to pay attention to: Initiative, interest and engagement shown throughout the process and quality of responses provided. Knowledge demonstrated of industry and goals identified Sales lead is indicative of a company’s culture; but once the sales phase is completed, a new team will be the primary interface Ways to help mitigate speed dating risk: Onsite (F2F) shortlist presentations Request meeting a representative of the implementation and account mgmt teams Get referrals Request having input in choosing and ongoing selection of support lead Quality of responses = completeness, tone, overall quality Provide feedback to participants not selected

PANEL Q&A

W. Capra Consulting Group NICK FREDRICK – GM, STRATEGIC BUSINESS SOLUTIONS nfredrick@wcapra.com If you have any questions about the presentation, go to our LinkedIn Group (the Payments Education Forum) and request an invitation (this is a closed group specifically for the payments industry)).