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RFPIO CEO sees opportunity in the changing economy

RFPIO CEO sees opportunity in the changing economy

Revenue generation

Every few years, it seems, economists warn of an impending economic slowdown. In circumstances where these predictions have merit—like now—should […]

RFPIO CEO sees opportunity in the changing economy

RFPIO CEO sees opportunity in the changing economy

Revenue generation

Every few years, it seems, economists warn of an impending economic slowdown. In circumstances where these predictions have merit—like now—should businesses cut back, or should they embrace change?

Indeed, as every surfer knows, it’s impossible to ride the crest of a wave forever, and the troughs are where they regroup and build momentum. Or, as the late Winston Churchill once said, “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

I recently sat down with RFPIO’s Chief Executive Officer and co-founder, Ganesh Shankar, to discuss the changing economy. We will discuss whether, like Churchill or the hypothetical surfer might, companies can leverage software like RFPIO to turn fiscal challenges into revenue-generating opportunities.

The economy

Wendy: Many economists predict a time of economic uncertainty. What is your opinion?

Ganesh: I am not an economist, but I see some macroeconomic challenges lurking. However, I see it as an opportunity. Stronger companies will have a chance to thrive.

Wendy: You have spent your career in the tech sector. In your experience, how do economic downturns generally affect tech?

Ganesh: In the grand scheme of things, this is a time when companies are looking for ways to be more efficient. Technologies tend to help companies become more efficient.

Better efficiency doesn’t mean that automation will take people’s jobs. I strongly feel that technology will allow companies to produce more and deliver better outputs with less infrastructure.

I believe this is the first time we are seeing a downturn in the SaaS ecosystem. Although, when I recently spoke with with two of our enterprise customers, they brought an incredible amount of energy to the meetings. They even flew people in from outside the country to speak with us. It’s evident that they see technology, and specifically our technology, as mission-critical.

Of course, not every technology can claim that, but I feel that RFPIO is fortunate in that it is seen as mission-critical software. Mission-critical technologies will be super important and help companies thrive during a changing economy.

RFPs in a changing economy

Wendy: RFPs are revenue-generating opportunities. During bullish economies, do you feel that companies tend to focus on the low-hanging fruit, such as MQLs and SQLs, rather than RFPs? If so, how does that change during a downturn?

Ganesh: I recently spoke to a CEO of a startup company. I asked why he was looking at a technology like RFPIO. Generally speaking, RFPs are relationship-based, and deals go to companies that are known to the purchaser.

For that reason, time- and resource-strapped small, mid-market, and startup companies often feel that responding to RFPs is a wasted effort.

The startup CEO looks at RFPs very differently. Instead of nurturing existing relationships, his company sees RFP response as an opportunity to put his brand in front of the customer. Even if they lose the deal, he said, RFP response improves brand awareness.

In the past, his company didn’t have the resources to respond to all the RFPs they received. With RFPIO, he told me, he can automate the response process, and it gives his company a chance to register his brand with buyers, whether they win the deal or not.

When the buyer is ready to look for a different company, and they are looking for a simple and economical solution rather than a giant brand, there’s a chance that they’ll remember his startup from the previous strong RFP response.

RFPIO helps his company respond to more RFPs and creates efficiencies in his organization’s response process. Now they have more time to respond, and now his team has the ability to participate in more bidding processes.

Wendy: Roughly ⅓ of revenue comes from RFPs. How might that change during a downturn?

Ganesh: I’m not sure of the metrics, but in changing economic times, companies will more thoroughly scrutinize and be more detail-oriented in evaluating options. In all industries, but especially in the SaaS economy, there are tons of options for customers.

Previously, perhaps due to a time or resource crunch, they made hurried decisions. In a challenging economy, buying decisions are more stringent and thorough. For that reason, I anticipate that organizations will see more RFPs.

Whether customers prioritize pricing, technology, etc., RFPs are a great way to objectively analyze each potential vendor’s offerings. I believe that RFPs will become even more common in the months to come.

Navigating changing times

Wendy: How should companies look at response teams if they need to restructure?

Ganesh: I don’t see technology as a vehicle for cutting people’s jobs. I see it as a way to make systems more efficient. I understand that companies sometimes have to take unwanted measures, but in challenging times, it’s important for companies to centralize their knowledge.

When employees leave an organization, and there is no centralized information repository, the company’s native knowledge walks out the door with them unless it’s documented and centralized.

You want your organization to speak the same language. The information that proposal and RFP managers curate for the company is client-facing. RFPs are often legally binding documents. Response managers must ensure they’re putting forth the right, most relevant information.

Wendy: Does RFPIO have a role beyond response management?

Ganesh: Companies spend time and energy creating their content, so why not optimize and repurpose it for use cases beyond RFPs? This would help other teams consume the content to be used for use cases. That is what I call the “democratization of content,” where organizations can use the same content over and over again. You can recycle and reuse content; you don’t have to reinvent it.

Especially in changing economies, it’s critical for companies to centralize and democratize content to help make informed business decisions. RFPIO’s industry-leading content management functionality provides a single source of truth for leadership, customer-facing teams, HR, finance, legal, etc.

Wendy: How do economic challenges affect the RFP go/no-go decision-making process?

Ganesh: Now is the time for companies to be more efficient and evaluate whether the opportunities are right for them. If it’s not the right opportunity, sometimes it’s okay to say “no-go” and move on to more fitting possibilities.

This is an excellent opportunity, however, for companies to loosen their criteria and do as the startup CEO I spoke to said. Now could be a great time to position themselves for future purchasing decisions by putting their brand in front of customers.

Wendy: A Forbes article suggests that government spending generally remains stable during a recession. What are your thoughts on that, and are there other recession-proof sectors?

Ganesh: Healthcare, education, utilities, education, and financial services are relatively stable.

Wendy: Do you have any advice for seeking out unsolicited opportunities?

Ganesh: This is the time for companies to step up their game and explain the value proposition they are offering. Sometimes customers may not think they are looking for a solution like yours, but then the onus goes on to you to educate and nurture the prospective customers and explain why yours is the right solution.

This is the time for value-based selling. You have to show the value and explain the ROI. Now is the time to become more serious in explaining to the customers.

Wendy: According to Gartner surveys, CIOs prioritize tech stack consolidation, centralized data management, and embracing emerging technologies as cost-cutting measures. How does RFPIO fit with those priorities?

Ganesh: I strongly believe that RFPIO fits into all those pockets. It helps companies be more efficient and reduce resource use. For CIOs, this is the time a platform like RFPIO is mission-critical. Regardless of the economy, companies tend to spend more on technologies that help them generate revenue.

That is why revenue-generating companies tend to be more successful during economic downturns. They are helping their customers earn revenue, which is one of the reasons RFPIO has one of the best-in-class customer retention numbers. We serve all three segments—small businesses, mid-market, and large enterprise companies.

Wendy: What about security spending?

Ganesh: Security spending will only increase, almost regardless of the economy. In the future, most large purchasing decisions will be preceded by security questionnaires to ensure that all vendors, and their vendors’ vendors, comply with buyers’ security protocols.

RFPIO® LookUp and Content Library saves hours on each security questionnaire by leveraging machine learning to answer up to 80% of a security questionnaire’s questions—with the documentation to back the answers up.

As for our platform, RFPIO is entirely scalable and secure enough for companies such as Microsoft, Visa, and Google.

Wendy: This has been an enlightening talk. Is there anything you’d like to add?

Ganesh: This is a good time for companies to think strategically. Most of the biggest deals involve at least an RFP. Sometimes they take a little longer to close, but the rewards are great. RFPIO can help companies thrive through changing economies by helping them win more of those bids.

Wendy: Thank you, Ganesh.

If you would like to learn more about how RFPIO can help your company navigate economic uncertainty, schedule a free demo.

Knowledge management best practices: Gaining company buy-in

Knowledge management best practices: Gaining company buy-in

Product & Best Practices

At RFPIO, one of the first questions potential customers ask is whether our platform is scalable. The answer is an unequivocal “yes,” but we can ask the same about most other organizational content management systems.

Is your content management system scalable? Do you know how much content you have? How much of it is redundant? How much of it is outdated? How much of it is trivial? Do you have systems in place for new content?

According to Deloitte, 75% of organizations recognize the importance of creating and preserving knowledge, but only 9% of companies are ready to make that commitment. There are a few reasons for this, but 4 of the top 6 reasons cited are easily overcome by creating top-down buy-in through adhering to content management best practices.

  • 55% report organizational silos
  • 37% specify a lack of incentives
  • 35% say there’s a lack of organizational mandate
  • 35% point to shifting roles

Perhaps yours is one of the 75% of companies that appreciates the need for a compliant, organized, accurate, and up-to-date knowledge library. However, with most obstacles coming from within, leadership might see sprucing up your knowledge base as too high a hill to climb, at least right now.

You aren’t alone. In this blog, we’ll discuss achieving organizational, and most importantly, subject matter expert buy-in.

The importance of information governance

Information governance, as defined by Gartner, is the “specification of decision rights and an accountability framework to ensure appropriate behavior in the valuation, creation, storage, use, archiving, and deletion of information.”

Your company’s information management system is everything—and I mean that literally. A well-developed and maintained content management system prioritizes and categorizes all the key documents and pieces of information your company has collected since its founding.

It also includes retiring information that is inaccurate, no longer relevant, redundant, and past a document’s “shred by” date.

Information may be called upon to facilitate major decisions, create proposals, close sales, reassure customers, prove regulatory compliance, help resolve legal matters, etc.

It’s not just decision makers who benefit from a content management system, so do employees. A disorganized system brings about higher labor costs, reduced productivity, and lower morale.

  • Employees value information that is easily accessible
  • Most employees perceive the information in their company’s knowledge base as average or below
  • Over 70% of companies believe that effective knowledge management will increase productivity by at least 20%
  • People spend more than half their days on “busy work,” which includes searching for information
  • 42% of company knowledge lies with individuals, and when they’re unavailable, coworkers lose 42% in productivity
  • Enterprise businesses lose $47 million per year in productivity due to poor knowledge sharing
  • 81% of employees feel frustrated when relevant information for their jobs is withheld
  • SMEs are extraordinarily busy and, like everyone, resent when they think you’re wasting their time

Benefits of good information governance include:

  • Informed decision making – Decision-makers need accurate and current information
  • Breaking down silos – Good governance helps break down information silos by democratizing knowledge
  • Regulatory risk management – Document lifecycle management helps ensure regulatory compliance
  • Legal risk management – Proper digitization and tagging simplify the legal discovery process.

Proving value to leadership beyond just cost

When you initially implement a content management system, the time savings will be impressive—often 40% or more in the first year. But once you begin to reach peak efficiency, demonstrable time savings drops.

That’s when you need to think strategically to show lasting value in your content management platform. Your goal is to prove that value to leadership and keep your content in gold-standard shape.

Unfortunately, many content management strategies don’t provide the types of reporting that include the metrics decision-makers expect, which may include the number of Q&A pairs, those that are regularly used, those that are never used, the amount of redundant information, and how much time is spent searching for information, etc.

Done right, regular content auditing and reporting will provide the data leadership demands as well as help improve morale and boost productivity.

Who are your key decision-makers?

Every organization is different. You may need to get buy-in from one or more members of your C-suite. You may also need to engage sales, sales enablement, and of course, your SMEs (subject matter experts).

Working with your content teams

Subject matter experts are not octopuses—or is that octopi? At most, they have two arms, and if you tug too hard at one, it will never grow back. All of this is my roundabout way of saying, “respect your SMEs!” and do as much of the heavy lifting as you can.

Monetize the value of time spent and time saved

SMEs are typically either consultants or high-ranking members of your organization. Either way, their time is worth a considerable amount of money.

If you can demonstrate to leadership that you’ve reduced the number of Q&A pairs SMEs need to review, you will have shown significant cost savings.

Typically, reviewing a piece of existing content will take about 3-5 minutes. Removing 10 unused Q&A pairs could save your SME as much as 50 minutes. That’s time that could be spent with prospects, doing demos, or performing other tasks.

How to make friends with your SMEs

SMEs may not be official content team members, but they are vital participants in the content creation process.

SMEs are almost, by definition, some of the busiest people in most companies. Odds are, they’ve already invested a considerable amount and expertise in your Content Library. They may have answered many questions multiple times, so you might understand their frustration with the process.

Keep your SMEs engaged by:

  • Forming a partnership – Assure your SMEs that once the Content Library is clean, duplicate efforts will be unnecessary.
  • Involving management to drive SME participation – You’ve proven value to decision-makers. Let them use their influence to encourage SME participation.
  • Soliciting feedback from the SMEs and incorporating it into your process – They will likely have insight into content management and development.
  • Respecting their efforts by spreading content reviews over time – As I like to joke, “How do you eat an elephant? One bite at a time.” Not that we’d advocate actually eating an elephant, but the point is, break the project up into smaller, easier-to-manage pieces.

Your SMEs have ownership over all of their content. Respect their time, but also respect the thought and effort they’ve given each answer. Show them that you value the integrity of their content while taking on as much of the work as possible.

You will be working long-term with your SMEs, so build a rapport by showing that you have a plan. Let them know that you’ll do as much of the project as possible before calling for their assistance.

If you can show that you have carried the baton as far as you can, they’ll realize that you respect them and that their time matters to you.

Communicate with leadership

You’ll want to keep leadership informed regarding both your proposal team and SMEs so they know what you’re doing and what the SMEs are doing, how much work there is, and when you expect it to be complete. When the work is complete, show leadership who was invaluable to the process.

The best way to do this is to identify the leaders and then ask your leadership to coordinate a meeting for all those leaders. Create a PowerPoint deck to show that you are invested, prepared, and ready to partner.

The deck should show that you are ready to own the process, communicate with all parties as often as needed, and you will be a partner with the SMEs. Show how it will not be incumbent on the SMEs to complete the review.

Earn and maintain leadership buy-in with regular reporting. Early on, you might issue weekly reports. Once you get going, you can move to monthly reports.

The goal is to show the impact you’re having, the amount of updated content, the SMEs who are involved and have done good work for you, and time saved.

Get user buy-in: Understand how different people use the Content Library

Content management is not a one-size-fits-all approach. User input is critical for managing a Content Library. Adjust your approach depending on the type of person who owns the content.

Content hoarders

Like those who don’t regularly clean out their email, content hoarders won’t generally archive their content.

If the hoarders are rolling along just fine because they’re familiar with all their content, that’s great, but perhaps not for others who need it.

You should build a strategy for hoarders and get creative using their own tags, star ratings, or keywords instead of archiving their specific content. Then, gently guide them toward warehousing content.

This incremental approach will encourage content hoarders to trust that you aren’t out to get rid of all their content while preventing negative feedback from other users.

People who know the answers

Some authors are so familiar with the content that they might know the answers cold, or at least to the point where they can simply check the boxes on an RFx, add any comments, and go on from there.

The problem for other users is that the authors aren’t using content in one of the identified ways to capture content usage. They aren’t applying or copy/pasting the answer as they would with RFPIO.

Authors are probably highlighting what they need, copying it, and plopping that right into the answer field if they’re using it at all.

The best approach to get them on board is to ask them to strategically go through the content and review and mark their best content.

With RFPIO, they can use a star rating system, where the author can mark only their frequently-used content with 5 stars. The rest of their content should have no rating, at least for now.

People reluctant to change

Generally, people who are reluctant to change have all their Q&A pairs conveniently stored on a spreadsheet. Show those who are change-averse that a content management system will save them time and keep them from having to repeat themselves.

It will take them a little time to get used to the system, and they’ll need to see trust from others. One way to do that is to team them up with someone already using the system successfully.

RFPIO helps you identify those who are reluctant through usage reporting. For example, those who spend very little time in the system might be reluctant. This could also be true of people who spend more time in the system than their productivity indicates. In both cases, additional training sessions could help.

Another way to identify reluctant users, or perhaps just those who need additional training, is to survey them. I suggest using a Likert scale, where for each statement, such as, “Using RFPIO is simple,” there are 6 possible responses, from “strongly disagree” to “strongly agree.”

If a few people choose answers in the bottom 3, individual training might be in order. If more than a few are uncomfortable using the system, it’s time for general training sessions. I recommend about 6-8 questions per survey. You can issue further surveys on a quarterly basis or what works best for you.

The knowledge management platform that instills trust

RFPIO is the industry-leading response and content management platform. decision-makers undoubtedly know about the cost and time-saving benefits of RFPIO’s proposal response features. Even the most reluctant users will recognize the benefits and soon become expert content librarians.

And what about RFPIO’s role in information governance, turning your knowledge library into a sales enablement tool and a true repository of company knowledge instead of simply a response management tool?

Schedule a free demo to see how RFPIO can help turn your knowledge library into a business asset, remove some of the burden from SMEs’ shoulders, and provide leadership with the reporting and results they need.

How GEODIS is reducing SME review effort by 80% using response management software

How GEODIS is reducing SME review effort by 80% using response management software

Customer Stories

GEODIS is a leading global supply chain company, providing third-party logistics services to more than 150,000 clients in 168 countries around the world. Responding to Requests for Proposal (RFPs) is central to GEODIS business development, and is the main channel through which it attracts new clients, expands service offerings, and increases revenue.

GEODIS Americas maintains an in-depth RFPIO Content Library consisting of more than 2,000 Q&A pairs that proposal professionals use to respond to RFPs. In 2022, GEODIS Americas began an update project to refresh and consolidate information within the Content Library. The aim of this Content Library refresh project is to:

  • Reduce the effort required from GEODIS Subject Matter Experts (SMEs) to review and update Q&A pairs.
  • Ensure that the information contained in Q&A pairs is consistent, accurate, and up-to-date.
  • Win GEODIS more business through responding to RFPs with high-quality, comprehensive answers.

GEODIS Americas maintains its Content Library within the RFPIO response management tool. RFPIO has been central to the Content Library refresh project, and provides essential features and capabilities for finding information, updating answers, interacting with SMEs, and strengthening Q&A quality.

GEODIS has managed the Content Library refresh through six key steps.

1. Understand the need for a Content Library refresh

The GEODIS Content Library has become unwieldy over time. This is a natural result of incorporating information from diverse sources into a central repository. As multiple GEODIS SMEs write and respond to RFPs, their answers are copied into the Content Library to preserve their work and provide information for future responses.

This creates duplication in Q&A pairs. As SMEs create multiple responses on similar topics over a period of time, the Content Library captures each response as a separate Q&A pair, even if the answers are similar or identical. SMEs must regularly review every answer as part of an ongoing update process, including duplicates. Reducing duplication within the Content Library significantly reduces the associated SME’s time and effort.

The duplicate question overhead also exists for GEODIS proposal preparers who must decide on which of a number of possible Q&A responses is the “best” answer.

Multiple authors cause issues with the consistency and clarity of information in GEODIS Q&A pairs. Variations in writing style, depth of content, and other areas create differences in the style and tone of answers, which could be distracting when combined together into an RFP response document. This generates more rework to finesse final response documents before sending them to prospective clients.

These factors drove the need for the GEODIS Content Library refresh. GEODIS and RFPIO believe this is an excellent opportunity to use RFPIO features to find duplicates, engage with SMEs, rewrite content, and ensure consistency.

2. Use a strategic approach for a Content Library refresh

GEODIS decided to tackle the Content Library refresh as a self-contained, separate initiative to its operational proposal response work. The marketing team hired a consultant copywriter and project manager who could dedicate time and effort to lead the refresh project and work alongside the operational team.

The consultant reviewed the Content Library, using several RFPIO tool features to understand the scope and structure of GEODIS Q&A pairs:

  • The Answer Library Report for information on total questions, Q&A pair owners, review timelines, keywords, and other details.
  • Other RFPIO reports, including duplicate content, content search terms, and content usage reports.
  • Q&A tags for details of how each Q&A pair was categorized and to understand how tags could be rationalized for better future Q&A management.
  • Advanced and saved searches for filtering and drilling down into specific Q&A pairs.

This analysis led to a phased approach for the Content Library refresh, updating and consolidating individual Q&A pairs depending on how they were tagged in RFPIO. The consultant developed a project plan, style guide, SME communications, and a standard operating process for updating the Content Library.

“The GEODIS Content Library refresh would have been much more difficult and time-consuming without the RFPIO tool. RFPIO features have made it much faster and easier for us to identify duplicate content and develop a strong approach to enhance the Content Library.”

—Paul Maplesden, Consultant and Project Lead, GEODIS Content Library Refresh

3. Get SMEs and stakeholders on board

Refreshing the GEODIS Content library requires buy-in and support from SMEs and other stakeholders, as clear and effective communications are essential to a successful project. GEODIS decided on a multi-step approach to managing communications:

  • Sending out communications about the project scope and aims to manage expectations and prepare all SMEs and stakeholders within GEODIS Americas.
  • Targeting individual SMEs related to specific Q&A pair refreshes.
  • Using built-in RFPIO communication tools to provide updates, direction, and ownership for individual Q&A pairs.

GEODIS developed communications explaining the aims of the Content Library refresh, particularly reducing the time and effort required from SMEs through removing duplicate questions. In addition to emailing these communications, GEODIS took advantage of several RFPIO SME engagement features, including:

  • Investigating each Q&A pair impacted by that phase of the refresh, and emailing the owners and moderators of that pair as captured in RFPIO.
  • Using RFPIO comment and mention functions for each pair to keep everyone updated on its status.
  • Analyzing SME review cycles for each updated Q&A pair to ensure it meets company and SME needs.

This approach ensured that all SMEs knew when their Q&A pairs were being consolidated and rewritten, and let them know exactly what actions they needed to take. The consultant leading the project also provided regular weekly updates to the proposal team and marketing director to keep them informed on project progress.

4. Establish a repeatable process for updating Q&A pairs

GEODIS developed a step-by-step, repeatable process to ensure a consistent approach to consolidating and rewriting each Q&A pair. The key steps of this process are:

  1. Establish which areas of the Content Library refresh this phase should focus on. Prioritize key lines of business during a proof of concept to validate the process and secure stakeholder buy-in.
  2. Identify duplicate Q&A pairs for this phase, together with the relevant SMEs.
  3. Consolidate and rewrite information from multiple duplicate answers into a master answer.
  4. Archive old, duplicated questions out of the active Content Library.
  5. Promote and link together master answers.

GEODIS found the following RFPIO features particularly useful in developing a standard process:

  • Running duplicate content reports for an overview of identical questions and answers.
  • Reviewing content usage statistics to identify the most popular content and possible master answers.
  • Adding Q&A tags to mark and identify specific Q&A pairs for archival or promotion to master answers.
  • Carrying out phrase, advanced, and saved search queries to search and filter by multiple criteria.
  • Establishing URL links for each Q&A pair for definitive identification and tracking.

During the development of this repeatable process, GEODIS worked with RFPIO Customer Success to ensure that the process was following best practices. RFPIO offered multiple suggestions to enhance the process and to take full advantage of the platform’s tools.

“Responding to RFPs in a consistent, accurate, and comprehensive way is central to winning more business. The RFPIO tool, coupled with the Content Library refresh project, supports our growth ambitions.”

—Michelle Johnson, VP of Growth Marketing, GEODIS Americas

5. Carry out the Content Library refresh

The refresh project uses several techniques and approaches to review and then remove, update, or consolidate each Q&A pair within the library as part of a phased approach.

Identify all Q&A pairs related to the specific topics in each phase

Q&A pairs were reviewed and updated by area, as captured in RFPIO. These pairs were identified and analyzed through:

  • Tags assigned to each Q&A pair within RFPIO.
  • Advanced searches, filtering, and sorting within RFPIO.
  • Titles and content of each question and answer.
  • Owners and SMEs for each Q&A pair.

Update communications were sent to all relevant SMEs and stakeholders through this process.

Decide on removal, update, or consolidation of each Q&A pair

Once all Q&A pairs were identified for a specific topic, the project management lead consolidated answer information from each Q&A pair into a master document. This master document was updated based on several best practices:

  • Consolidates information from several duplicated or substantially similar Q&A pairs into one “master” Q&A pair.
  • Rewrites answers to ensure a consistent approach, style, and tone both within and across Q&A pairs.
  • Ensures that master answers comprehensively capture all of the relevant information from the original Q&A pairs.
  • Updates information back into RFPIO and marks that Q&A pair as a “master answer,” using tagging and titles.
  • Removes any related Q&A pairs so that only the master Q&A pair remains.

Use RFPIO tools to manage the consolidation, archival, and promotion of Q&A pairs

GEODIS used several RFPIO tools to manage Q&A updates:

  • Tagging Q&A pairs for promotion to master answers or for removal and to ensure correct and consistent tag usage for master Q&A pairs.
  • Archiving of duplicate or similar Q&A pairs into an archive collection to remove Q&A pairs from the active library while preserving them for historic reference purposes.
  • Updating the “Alert Text” associated with each Q&A pair to notify SMEs of its status as an archived or master answer.
  • Adding in alternate questions for better searchability for proposal preparers.
  • Including URL links within each answer for cross-references between related Q&A pairs within the RFPIO tool.
  • Linking related answers together through the RFPIO “Related Answers” function.
  • Reviewing content owners and moderators for the master Q&A pairs.

Complete the Q&A pair rewrite for that phase of the Content Library refresh

Following the update of Q&A pairs in each phase, GEODIS closed out that part of the Content Library refresh through some final steps:

  • Updating the SME review cycle for the new, master Q&A pairs.
  • Mentioning SMEs within the RFPIO comments for each master Q&A pair and requesting they carry out an initial review for the updated and rewritten content.
  • Understanding any lessons learned from that part of the project.
  • Finalizing any communications with SMEs and stakeholders.
  • Moving on to the next phase of the Content Library refresh.

6. Show the value of the Content Library refresh

GEODIS has primarily tracked the effectiveness of the Content Library refresh through the reduction in the number of Q&A pairs that SMEs need to review. Due to the number of duplicate Q&A pairs, SME review cycles, and the content in each answer, reducing the number of pairs directly correlates with reducing the time, effort, and cost of SMEs reviewing those pairs.

To date, GEODIS has reduced the number of Q&A pairs in RFPIO by almost 80%.

Subjects with the Highest Percentage of Q&A Pair Reduction
55% 80% 82% 85%
Safety and materials handling CSR and sustainability Employee training and inclusion Business continuity

GEODIS expects to maintain a Q&A pair reduction rate of between 70% and 80% over the life of the Content Library refresh project. At the lower end of this estimate, this means it’s likely that the current Q&A library would be reduced from 2,000+ pairs to around 600. On average, it’s common for RFPIO customers to reduce Q&A pairs by 50-70% after their initial review of all Q&A pairs in their libraries.

Anecdotal feedback from SMEs and proposal preparers has also been very positive, with comments on the quality and comprehensiveness of the master Q&A answers within the RFPIO tool.

“Our team of 200 subject matter experts has a full-time job on top of supporting content in our answer library of 2,000 question/answer pairs. Both of these jobs are important to maintain and grow our business. Minimizing the content assigned to them for review is a top priority. The library refresh project, supported by the RFPIO tool,  minimizes their content reviews, enabling them to spend that time creating quality updates. Its’ a ‘win’ for them and GEODIS.”

—Penny Lane, Senior Proposal Manager, GEODIS Americas

On track for a best-in-class Content Library

GEODIS originally selected RFPIO as its RFP response tool for several reasons:

  • Ease of use and administration, particularly for SMEs across multiple business areas.
  • Robust integration with existing tools, operations, collaboration, and review processes.
  • Quality and range of features, documentation, and support.
  • Content management, search, and reporting capabilities.

These same qualities and features have proven central to the Content Library refresh, as shown in the table below.

Before RFPIO and Content Library Refresh After RFPIO and Content Library Refresh
Difficult to administer and prepare RFP responses due to inconsistent information and variations in tone and content of RFP answers. RFP answers have a consistent approach and style, with each containing comprehensive information on specific areas.
Duplicate or similar answers to questions make it challenging to choose a “best” answer for an RFP response. Consolidation of duplicate answers creates a single master answer for each area that reduces the effort required to prepare RFP responses.
SMEs must spend considerable time and effort reviewing substantially similar content across multiple, duplicated RFP answers. Reduction in the number of answers on specific topics has radically reduced the time and effort required as part of the SME review cycle.
The quality of RFP responses was based on substantially varying input from multiple sources and authors RFP response quality has improved due to stronger tagging, searching, filtering, and other RFPIO features.

GEODIS continues to work alongside the RFPIO business to continue building its Content Library into a best-in-class resource.

To learn more about how RFPIO can power content governance for your sales processes through intuitive collaboration and intelligent deduplications features, schedule a demo at www.RFPIO.com.

What is a Request for Quote (RFQ)?

What is a Request for Quote (RFQ)?

Selling & Enablement

When you’re invited to respond to an RFQ that aligns with your business goals, it can be an enticing prospect. RFQs are typically for large projects, which drive more revenue and often a better bottom line.

While the opportunity might be tempting, one thing stands in the way: how do you create a winning RFQ response?

Before exploring the “how to,” let’s talk about how RFQs are used. To put them into perspective, automotive purchases are probably the closest most consumers get to knowing how business procurement departments make their large purchases.

Like when you set out on your car buying journey, an organization knows what kind of product they need to purchase, but first, they need to do their research. Let’s continue with our car analogy:

  • They send due diligence questionnaires (DDQs) to determine potential vendors’ compliance and long-term viability, much like you research manufacturers and individual dealerships.
  • They send security questionnaires to assess security compliance, like a car’s safety rating.
  • They send requests for proposals (RFPs) to get more detailed information, such as whether the car is in stock, how long it will take to get it, why you should do business with that particular dealership—and yes, the price.
  • At some point, it is time to sit down at the negotiating table and get straight to the bottom line without all that other information to distract us. That’s when a company sends requests for quotes (RFQs)

Naturally, this is an oversimplification, and large business purchases are far more complex. In this blog, we will get into the surprising nuances of those straight-to-the-bottom-line RFQs.

What is an RFQ?

An RFQ, also known as an invitation for bid (IFB), is a document of trade inviting vendors to offer their best prices and terms of payment. It is issued by an entity or company inviting suppliers or vendors to submit their offers to provide a particular product or service.

In many cases, the issuer has chosen their preferred vendor, but they need assurance that the vendor can meet their business and project needs. When completed, the quote will include the vendor’s costs, terms of payment, and specifications or details about the product(s).

But let’s back up a bit, beginning with when the RFQ arrives at the vendor’s doorstep.

An RFQ generally arrives via email or in a company’s CRM. It could be in the form of a Word or Excel document. From there, the vendor’s response or sales department gathers a team that includes a project manager, subject matter experts (SMEs) to address the issuer’s questions, and response writers and editors to draft the perfect proposal.

Typically, the issuing company would customize the RFQ that they sent to get specific details needed to finalize a purchasing decision.

A comprehensive response includes complete project or product details, product quantity, availability, delivery times, and price.

RFQ vs. RFP

While an RFP is broad, and can cover just about any element of the procurement decision-making process, an RFQ is much more specific. Organizations send RFQs when they know the precise deliverables and simply want price quotes.

RFQs are structured, and content is generally technical, financial, and legal. RFPs and RFQs share some similarities. Both are usually sent after the needs are well defined.

The procurement process involves companies and vendors sending out either an RFP or an RFQ to assess and compare products, prices, and services.

After receiving the proposals, the purchasing organizations compare quotes and attempt to obtain the best price (either through negotiations or through an electronic or reverse auction).

Responding to an RFQ is far simpler than an RFP. The document should be thorough enough to indicate that you have a firm understanding of the specifications and quantity of the required product or service. In contrast, RFP responses, with their be-all, end-all list of questions, stir up everything you can possibly imagine about your company.

RFPs could include questions about pricing, functionality, technology, security, company basics, competitive differentiators, case studies, references, implementation, and SLAs.

Benefits of using an RFQ

Comparison

When RFQ formats are consistent, sourcing firms can easily compare by having a solid understanding of the specifications and quantity for their required product or service. The process enables buyers to save money and get the best value.

The ability to compare prices and quotes from a myriad of suppliers makes the selection process simpler by aiding buyers in making the most informed decision because vendors have a better understanding of their needs.

Requests then become shorter and more specific, meaning less time wasted looking for the right supplier. By making it easier to differentiate between suppliers, the buyers will be able to find the best vendor for their needs much more quickly and easily.

Consistency

RFQ responses should use consistent language, standard formatting, and generally standardized templates that allow for easy understanding. This makes both issuing and responding consistent and allows for quicker processing.

Streamlining

The RFQ process streamlines the purchasing process for both the buyer and vendor or supplier.

A well-written, thorough RFQ can help vendors send competitive quotes that help meet the needs of their business and projects.

When you might receive an RFQ

RFQs are not appropriate for all purchases. You may receive an RFQ if:

  • You are a prequalified vendor
  • The customer is looking for an out-of-the-box product or service that needs no customization
  • The issuer won’t need vendor support after delivery
  • Pricing is the key determinant

If, for example, the customer is looking for a bespoke software solution, pricing is only one of many considerations. In that case, you’re more likely to receive a more comprehensive document, such as an RFP.

Features of an RFQ

A request for proposal includes general bidding company information, specifications for a required product or service, terms for payment, a due date for bids, and other necessary details to successfully place a bid.

A request for quote, on the other hand, is used to obtain price and payment information about a vendor’s products and services.

How to respond to an RFQ

Winning RFQs becomes more likely when you understand the parameters, utilize templates to respond, and automate the process.

Submission instructions

Almost every RFQ includes the following:

  • The submittal deadline for submitting a bid
  • How the response or proposal should be formatted
    • Vendors submit their entire RFQ response in a form to expedite the bid-reviewing process.
  • Contact information

Responses should demonstrate that you understand the buyer’s strategic goals and can build a relationship for future projects.

How to determine whether you should respond

Understandably, buyers feel that they run the show when they’re ready to invest in a product or service. But that doesn’t mean that you have to respond to every RFQ in your inbox. If you can’t meet their needs, you may choose not to respond at all, and that’s okay.

Here are the essential facets to consider when responding to an RFQ:

  • Specifically address everything in the RFQ in precise detail. Leave nothing unresolved.
    • Is the RFQ the right fit for your organization and solution?
    • Do you have a comprehensive solution that addresses each of the challenges presented in the request?
    • Does your pricing match the budget?
    • Do you have an existing or prior relationship with the issuing organization?
    • Do you have any insight into why the organization issued the RFQ?
  • Research the buyer’s business.
  • Give yourself plenty of time to respond but DO NOT miss the deadline, which is an absolute must in proving you can meet the requirements not just of the RFQ but of the proposed project.

The goal of any RFQ response is to win the bid. Here are some tips:

  • Deliver the response on time.
  • Be flexible if the requirements change.
  • Mention experience or history of meeting similar buyers’ needs.
  • Provide added value to the buyer.

Even if you do not win the bid, an RFQ response could lead to future opportunities.

Include an executive summary

Once you’ve determined that you can meet the customer’s needs, provide an executive summary of your company which should demonstrate your understanding of the parameters.

Despite being the very first thing on a quote template, the introduction is usually populated last. Other things to include in this executive summary could include broader business goals, essentially anything the issuers need to understand the bid.

RFPIO saves you from having to manually recreate the introduction for each RFQ—or RFx—by using machine learning to auto-populate, with your approval, of course, each element of your executive summary.

Templatize your pricing

If you use a pricing template, the issuer can compare quotes easily. A pricing template provides uniformity, so the issuer will know exactly where to find pricing and product or service details.

An RFQ template should provide an offered price column. Other fields should include specifications and the quantity of products or services.

While templates will vary from product to product and RFQ to RFQ, the goal is to have all the information for a specific product in the same format so the purchaser can compare the bids quickly, easily, and accurately.

RFPIO includes both built-in customizable branded templates and provides the option to create your own.

Specifications

RFQ responses need to be specific. If one is not detailed enough, it could lead to misunderstandings, potentially jeopardize the deal, and even land you in legal hot water for misrepresentation. Templates help ensure you don’t miss anything.

Contract and fees

Vendors should know that most organizations require bid fees with each response. The assumption is that having skin in the game on the part of vendors helps ensure that the process is open and transparent. The money is typically held in escrow during the RFQ process.

If the vendor earns the contract, the payment schedule will reflect the fee. The remaining money in escrow is returned to the vendors that did not win the contract.

Conclusion

Now that you’ve provided your best price and terms, the customer is ready to make their decision. With any luck, they’ll soon drive away with a shiny new (metaphorical) car and you’ve made a profitable sale!

RFPIO is an end-to-end response management platform that helps you sell more cars (yes, RFQs are sometimes used for literal cars, especially fleet vehicles), widgets, services, etc.

We provide RFQ software with customized templates for automated response tools to help you win more business. To learn more about how RFPIO can streamline your process and help ensure quality responses, let’s chat!

How to respond to a security questionnaire

How to respond to a security questionnaire

Product & Best Practices

If you’re like me, you regularly receive emails advising you to change your passwords because one company or another has suffered a security breach. Unfortunately, data breaches are all too common.

In 2021, there were over 1,800 reported data breaches. That is a significant uptick from prior years. 83% of those breaches involved sensitive customer information, such as Social Security and credit card numbers.

The average data breach costs $4.4 million, and much of that is passed on to customers—the same customers who had their sensitive data compromised.

No wonder many businesses now consider cybersecurity their number one concern. Not only does a data breach cost money, it also runs the risk of damaging credibility and eroding trust. Some companies, especially small companies, never recover.

More than half of organizations have experienced third-party data breaches, often despite having what they think is a rigorous security protocol.

The average tech stack might contain dozens of different applications and tools. Sometimes, bad actors sneak in through one of those third-party applications, so it’s critical to properly vet each vendor’s security protocols as you would your own.

The most common way to vet vendors is through security questionnaires. But what are security questionnaires, and how do you respond to them in a way that you, as a vendor, will instill trust?

What is a security questionnaire?

After reading this far, you probably have a good idea of what a security questionnaire is. Still, to boil it down, it’s a questionnaire designed to determine whether a vendor or potential vendor is compliant with your security and legal requirements.

Not surprisingly, security questionnaires are complex and highly technical. The good news is that most questions have “yes” or “no” answers.

DDQ vs. security questionnaire

Many people confuse security questionnaires and DDQs (due diligence questionnaires). It’s easy to see why, as both are issued to assess a company’s compliance with the issuer’s regulations and security requirements.

Neither DDQs nor security questionnaires are specifically part of a sales cycle, although they may be issued before entering into a contract. They might also be issued before an organization is even buying to weed out non-compliant companies before and if the buying process begins.

There are significant differences between the two types of documents, however. You’re most likely to see DDQs if you’re in the financial segment. They are broader in scope than security questionnaires and may ask about business plans, profits and losses, revenue, etc. They might also ask about cybersecurity policies.

A security questionnaire is more straightforward and can be issued from any segment to any organization, although primarily to tech companies. While DDQs ask broad questions about processes, often in narrative form, a security questionnaire forces you to pony up your proof of compliance.

You might see both a DDQ and security questionnaire before receiving an RFP. Generally, the DDQ will come first. Once the issuer is satisfied that you meet their requirements, they might send a security questionnaire to gather certificates and other forms of proof.

In some cases, a security questionnaire follows an RFP and could be the last step before finalizing a deal.

Preparing for a security questionnaire response

Security questionnaires usually arrive via the response manager or perhaps through a CRM. Since most questions center around cybersecurity, SMEs can be from IT, risk management, sales engineering, accounting, information security, operations, and even HR.

The response turnaround time is typically shorter with a security questionnaire than with an RFx. The issuer might want it within days.

Components of a security questionnaire

There are many, many types of security questionnaires, and it would be impossible to list them in this blog post, but here are some examples of what a security questionnaire might assess:

  • Network security
  • Information security
  • Datacenter and physical security
  • Web application security
  • Infrastructure security
  • Business continuity
  • Security audits and penetration testing
  • Personnel policies, hiring practices, and training programs
  • Security certifications
  • SLAs and uptime vs. downtime

Types of security questionnaires

There are several types of security questionnaires, but primarily, you will see these:

Security Questionnaires and Security Questionnaires Lite – Standardized Information Gathering Questionnaires

  • VSAQ – Vendor Security Assessment Questionnaire
  • CAIQ – Consensus Assessments Initiative Questionnaire
  • VSA – Vendor Security Alliance Questionnaire
  • NIST 800-171 – National Institute of Standards and Technology Questionnaire
  • CIS Controls – Center for Internet Security Questionnaire

How to respond to security questionnaires – and how RFPIO will help

If you are a response manager, you’re likely very comfortable responding to an RFx or even a DDQ. Both allow for a bit of creativity, in that, along with answering questions, you’re constructing a narrative to show how your company is the right fit for the issuer.

Security questionnaires aren’t about narratives. They are straightforward and stringent, and accuracy is a legal requirement. Clearly, there’s no room for error. If you’re ready, let’s grab a cup of coffee, or your favorite motivational elixir, and dive right in.

Step 1 – Search for all available materials

While security questionnaires are undeniably bulky and complex, there’s a lot of redundancy. You have probably answered many similar questions before. Search your existing database for those answers.

Often, issuers send a boilerplate questionnaire rather than customize it to each product. Eliminate the questions that don’t apply to your product. Don’t be afraid to ask the issuer to clarify questions that seem confusing or unnecessary.

Step 1 with RFPIO – Prebuilt centralized Content Library

RFPIO features the industry-leading AI-powered prebuilt Content Library. Every previous security questionnaire and all your documentation are housed in one place, accessible to any authorized user.

Step 2 – Answer only the pre-existing matching responses

Response management isn’t like school. In fact, copying other people’s work is encouraged. Search your existing database for pre-existing matching responses and use them when you can.

Step 2 with RFPIO – System-driven identification of sections and questions

RFPIO’s import capabilities, which include Lightning import through Salesforce, leverages machine learning to automatically find matching responses, without you having to initiate the process. This feature alone can do up to 80% of the work for you.

Step 3 – Group all unanswered questions and collaborate with SMEs

Once you’ve found all the applicable existing content, you’ll need to collaborate with SMEs to finish the process. Group all your unanswered questions, broken up by SME, and inform them of their timelines.

Step 3 with RFPIO – Automate through AI

RFPIO’s auto-respond feature and recommendation engine find existing documents and similar, although not specifically matching, content for SMEs’ review. As a side benefit, once SMEs recognize the time-saving capabilities of RFPIO, they’ll be far more likely to help you in the future.

Step 4 – Follow up and track the status of responses

Make sure every team member is completing their portion in a timely manner.

Step 4 with RFPIO – Streamline collaboration through project management capabilities

RFPIO’s Project Module offers up-to-the-minute reporting and reminders to ensure that the questionnaire will be ready on time.

Step 5 – Manually collate and complete the questionnaire

Whew! You’ve answered all the questions and all you have to do is collate the answers and export them back to the original document. Unfortunately, for many companies, that’s a manual process which could take hours—and sometimes days.

Step 5 with RFPIO – Export to the source file

RFPIO eliminates all of the cumbersome manual work with automatic exporting to the response file, all within seconds.

Security questionnaire response obstacles

There’s no direct line from a security questionnaire to revenue generation, which is why they’re sometimes left on the back burner. But that’s not the only reason there might be reluctance on the part of your response team. Other obstacles include:

  • Length – A security questionnaire can have hundreds to thousands of questions. That’s more than a little intimidating if the answers aren’t ready to go.
  • You’re time-bound – Sometimes the questionnaire gets stuck in an internal limbo, and sometimes the issuer sends it expecting an almost immediate turnaround. Having most of the answers ready will cut your response time to a fraction of what it could have been.
  • SME cooperation – SMEs are busy people, so understandably, they might not put the security questionnaire at the top of their “to-do” list. Assure them that you value their time by completing as much of the questionnaire as possible.
  • You don’t have all the certifications and protocol – Most companies won’t be able to answer every question in the affirmative. Submit what you have and perhaps see this as an opportunity to reevaluate where your company might be lacking.
  • Too much jargon – Security questionnaires tend to be jargon-heavy, and if you aren’t familiar with what they’re asking, you might not provide an accurate answer. SMEs can help but so can a well-organized, searchable even by jargon, Content Library.
  • Scattered knowledge (identifying and locating the right content) – If you have a siloed knowledge base, tracking everything down is challenging and time-consuming. Upload all of your certificates, documents, and Q&A pairs to a single source of truth accessible to any authorized stakeholder.
  • Non-compliant content management software – If your content management software isn’t compliant with your company’s requirements, SMEs, especially those in security, won’t use it. RFPIO is even secure enough for Microsoft.

Priorities and tips for the response process

As you’re staring down a seemingly infinite inbox and a calendar filled with back-to-back meetings, speed might be your top priority. However, security questionnaires are legal documents, so accuracy is the most crucial consideration. Fortunately, response software with built-in content management helps ensure both.

Streamlining workflow

RFPIO has several tools to help streamline your workflow, including:

  • Import/Export capabilities – Avoid disorganized, inconsistent, illogical formatting by importing security questionnaires right into your customized template for uniformity, making each stakeholder’s job much more manageable. Once you’ve completed the questionnaire, upload it onto your branded response template or straight to the source document.
  • Project management – If your workforce is like ours, you have people working from home, on other floors, in other buildings, and across the world. RFPIO helps you virtually gather your scattered stakeholders and track progress without chasing people down.
  • Content management – If I, for some reason, were forced to choose my favorite RFPIO feature, it would be the AI-powered Content Library. It:
    • Busts down silos – RFPIO’s Content Library is a single source of truth, with all of your company’s knowledge and documents in one repository.
    • Does most of the work for you – Once you upload the questionnaire, the Content Library’s magical gnomes—we call them the recommendation engine—comb through past responses to make suggestions. All you have to do is accept, edit, or reject. Since security questionnaires ask yes/no questions, there’s little to no editing.
    • Stores content – As the company creates more knowledge and documents, the Content Library will store them for future use.
    • Organizes content – Format, tag, and generally organize the content how you want.
    • Helps keep you compliant – Since we’re talking about security questionnaires, your security team will love this! RFPIO reminds you of expiration and “shred by” dates. It also reminds you when to review specific content and when to audit.
  • Integrations – RFPIO seamlessly integrates with nearly all the communication apps, CRMs, and productivity apps your company uses every day.
  • RFPIO® LookUp – Access the Content Library from anywhere in the world.
  • Autograph – With RFPIO’s Autograph, there’s no need to hunt signatories down. They can sign right from their computers.

Improving Content Library

Keep your Content Library clean, up to date, and organized by consulting with sales engineers and others involved in answering security questionnaires. Ask for their input in categorizing and tagging.

Keeping information up-to-date

Because security questionnaires are legal documents, accurate and up-to-date information is vital. RFPIO reminds you to clean out all the ROT (redundant, outdated, and trivial) information and documents. It even helps you locate all the ROT.

Software for security questionnaire responses

Many companies still rely on manual responses, which are time-consuming and inefficient.One way to differentiate your company from your competitors is to use advanced response software for security questionnaires.

Response software, such as RFPIO, gives each security questionnaire the thoroughness and scrutiny required while saving your team’s time, keeping SMEs on your good side, and helps keep you compliant.

Automation

If you use a CRM or project management software, you probably already know the benefits of automation. Most users do. In fact, IT professionals, such as those helping answer security questionnaires, save up to 20 hours a week using automated processes.

Automation is a morale booster! 45% of knowledge workers report feeling less burned out when they use automation tools, and 29% say automation lets them leave their jobs at the end of the official workday.

RFPIO’s automated response processes automatically fill in most of your answers to a security questionnaire and pull corresponding documents. One customer reports that after RFPIO security questionnaire automation, they can answer 100 questions in just 2 hours!

Templated responses

Most security questionnaires arrive in Excel, which, as you know, is about as standardized as the snowflakes covering Mount Everest. Excel isn’t to blame. Microsoft designed the OG of spreadsheets to track everything from kids’ activities to trips to space.

RFPIO imports the hundreds to thousands of lines on a security questionnaire spreadsheet onto your customized template, ensuring that everyone knows exactly how to find what they need. Additionally, since many questions are redundant, RFPIO answers those duplicate questions for you.

RFPIO’s approach to security questionnaire responses

Breathe a little easier next time you receive a security questionnaire, knowing that RFPIO has your back. You will save loads of time, create accurate, complete responses, and stay on your SMEs’ good sides.

If you don’t already use RFPIO, try a free demo.

How to respond to a DDQ

How to respond to a DDQ

Selling & Enablement

Entering into a business relationship, whether it includes making a large purchase or even a merger or acquisition, is complicated. With today’s security challenges, it is riskier than ever.

When a company receives a DDQ, the document shouldn’t be taken lightly. Lack of due diligence on the part of the responder can risk future deals, future partnerships, and even the company’s reputation.

What is a DDQ?

DDQ stands for due diligence questionnaire. While that sounds somewhat vague, a DDQ is all about mitigating risk by determining whether the company receiving the DDQ complies with the issuer’s standards and regulations.

A DDQ could be a precursor to an RFP, a merger or acquisition, or an audit from an existing customer. It could even be a way of creating a list of “safe” companies for future dealings.

Naturally, DDQs are as varied as the companies, and especially the industries, that issue them. Tech companies, for example, emphasize security and privacy compliance. Financial institutions want assurance that vendors won’t put them in hot water with the Securities and Exchange Commission, among other regulatory agencies. And those in the healthcare industry need to verify HIPAA compliance.

Naturally, it’s not that simple. There’s a lot of overlap. Every industry, for example, is concerned with security and privacy. Nearly every DDQ, regardless of sector, probes companies about their history, investments, organizational structure, etc.

In short, the job of a DDQ response team is to paint a picture of a company that is stable and compliant.

A DDQ is not a sales document. Most DDQs will not ask about product functionality, market share, hiring practices, etc., although they might ask about major new product releases, as they could affect financial forecasts.

Who issues DDQs?

While any organization could issue a DDQ, they’re primarily issued by technology companies, financial services companies, and government agencies.

DDQs can have dozens, hundreds, and even thousands of questions, but even the simplest DDQs require input from multiple stakeholders. If you’re in charge of responding to DDQs, you may need input from the following roles:

  • Financial – You could receive questions regarding your company’s financial health. These may include questions about anything from investors, to financial statements, to liens, to the amount of taxes your company pays, etc. If you work for a privately held company, you might not choose to answer those questions, but the issuer will ask.
  • Legal – Most legal questions fall under the purview of RFPs. However, you may see DDQ questions related to legal compliance.
  • Mergers and Acquisitions – Companies must issue DDQs before entering into mergers or acquisitions.
    Analysts – While raw data might be enough to answer some questions, many will need a deeper understanding and even forecasting.
  • Compliance – Gauging compliance is the core function of a DDQ.
  • IT – IT departments are at the front line of enacting and maintaining security protocols.
  • Procurement – In many companies, procurement departments are DDQs’ project managers. It’s rare, however, to see questions related explicitly to procurement.

Why do companies issue due diligence questionnaires?

Issuing a DDQ simplifies the collection and delivery of vital information needed before engaging in or continuing a business relationship.

A DDQ enables the issuer to learn about current or prospective partnerships’:

  • Financial status – It’s easy to understand why a company might want to learn about a potential vendor’s financial position. A financial misstep from a vendor could have reverberations down the line. However, many, if not most, privately held companies will not open their books to people outside their organization. Publicly traded companies are another story; their financial statuses must be public.
  • Business holdings – Business holdings are part of financial due diligence and could reveal debts and potential tax liabilities.
  • Compliance standards – Compliance requirements are numerous and deep. If a vendor is out of compliance with an issuer’s obligations, the issuer could find themselves out of compliance,

A DDQ helps a company measure risk in a variety of types of business transactions. Reasons for issuing DDQs include:

  • Completing a merger – A merger is a marriage, so to speak, between two companies. It’s a legally binding agreement that essentially states, “what’s mine is yours and what’s yours is mine.” It would be irresponsible to enter into a merger without knowing what the “yours” that will be “mine” is.
  • Assessing an acquisition – An acquisition is much like a merger in that transparency is critical, and a DDQ will reflect that.
  • Considering an investment – Large investors want to vet their potential investment before writing a check.
    Third-party vendor risk management – Even if a company is 100% compliant, their vendors could put your customers at risk. Risk assessments have to dig below the surface.

Responding to a DDQ

An effective DDQ response provides enough information to empower buyers, prospective investors, or business partners to confidently move forward.

A DDQ response process has a lot in common with an RFP response process, but there are some differences. Here are the key steps for responding to a DDQ:

1. Define your response strategy

Just as responding to an RFP requires a strategy, so should a DDQ response. First, you must determine:

  • Whether the SLA (service level agreement) is defined and available.
  • Who to put in charge of intake.
  • When you will be ready to start answering questions.
  • Who will answer the DDQ.
  • How long the DDQ will be in question/answer mode.
  • When the DDQ will be ready for review.

2. Assign tasks and due dates

A typical DDQ will have several SMEs and stakeholders. Make sure everyone knows their precise roles and responsibilities and expected timelines.

3. Answer commonly seen questions

Most questions on a DDQ, or for that matter, an RFx, are identical or nearly identical to questions you’ve answered before. A well-developed Content Library should automatically provide those repeatable answers, enabling you to accept them as is or edit them as needed.

4. Consult with collaborators

Once you’ve answered all the common questions, it’s time to turn to the experts. Consult with your response team and SMEs (subject matter experts) to complete the DDQ.

5. Review

Go through the DDQ with a fine-toothed comb to ensure there are no errors or missed (answerable) answers.

6. Submit the Questionnaire to the issuer

On time, right?

Due Diligence response best practices

Even though companies send DDQs with different goals in mind, and they are as varied as any other type of document your proposal team may see, there are a few best practices you should follow for all your submissions.

Understand your position in the sales funnel

Your latest DDQ may or may not be part of the sales process. If it leads to a potential sale, you’ll typically see a DDQ high up in the funnel, perhaps as a way of selecting compliant vendors before issuing an RFP.

Occasionally you might see a DDQ after responding to an RFP and as the prospect is nearly ready to select a vendor.

Sometimes, though, the DDQ is so far removed from the sales process that it’s nothing more than information gathering, either on current vendors or maybe-one day-in-the-future vendors.

No matter where the DDQ is in the sales funnel, if it’s in the sales funnel at all, it’s not a good idea to set the document aside. Maybe it will lead to future deals, or perhaps it will expose some of your own vulnerabilities.

Aim for a consistent and systematic approach

Some DDQs have thousands of questions, which might feel intimidating, and your instinct might be to answer each question as succinctly as possible. While that approach might save you time, proving compliance requires a detailed and consistent response.

Still, you can take steps to ensure that you don’t skip questions and to help you manage the time required to provide complete answers. They include:

  • Prepare a customized checklist – Create a customized checklist of the types of information you might need, preferably categorized by industry. You could require an organizational chart, financial information, legal documents, and of course, governance, risk, and compliance documents. Here’s one you can download right now.
  • Create due diligence questionnaire templates – Consistency saves time. If you upload your DDQs into a customized template, each stakeholder will know precisely where to locate what they need.
  • Leverage RFP response management software – RFP response management software also works for DDQs. Intelligent response management software will help you create and store both checklists and templates.

Centralize response information

Most of the questions on a DDQ are very similar to questions you’ve answered in previous questionnaires. Storing your responses and documents in a single source of truth for information can save hours, days, and sometimes even weeks on your response process. Beyond saving time, a Content Library:

  • Ensures accuracy – A company is legally bound to their answers, so accuracy is critical. The Content Library will hold on to the company-approved answers, enabling users to produce accurate responses.
  • Supports transparency – Transparency is critical for both trust and employee morale. When all the necessary information is right there for authorized users to see and use, it creates trust among the rest of the response team and potential customers.
  • Improves knowledge access – Anyone with the proper credentials can access the knowledge they need.

Automate the response process

You may not be using automation in your response process, but your competitors and many—if not most—of your customers and clients are. There are several reasons leveraging automation improves the DDQ response process, including:

  • Tracking real-time vendor completion progress – Automated response software has (or should have) project management built right in. It tracks each stakeholder’s progress.
  • Streamlining response time – Automation can answer up to 80% of your DDQ with just a few clicks.
  • Scaling ability to respond to DDQs – Automation helps determine the size and scope of the ideal response team as well as timeline estimates.
  • Efficiently managing tasks and deadlines – Define and manage tasks and expectations with automation.
  • Improving collaboration – Automated responses value and save SMEs’ time, creating more willingness to collaborate.

Due diligence checklist

While all transactions differ, a DDQ checklist facilitates a more thorough response through better organization and time management.

Common materials collected during a DDQ response include general corporate information, financial information, compliance certifications, licenses, legal documents, etc.

Organization and ownership

A DDQ might be a potential vendor’s first encounter with your organization, which means they need a proper introduction. The DDQ could ask for:

  • An organizational chart
  • Partnership/profit sharing agreements
  • Records of shareholder meetings
  • Senior leadership information (e.g., age, tenure, promotions, etc.)

Human resources

DDQs don’t generally dive too deeply into human resources issues, but you can learn much about a company’s long-term viability and potential problems from the HR department. DDQs might ask HR about:

  • Projected headcount (by function and location)
  • Benefit plans
  • Key employment agreements
  • Personnel turnover data
  • Incentive stock plan overviews
  • Employee litigation

Financial

DDQs are common in financial service organizations. Also, because DDQs might precede a lengthy business relationship, the issuer will want to know your organization is financially stable. It is important to note, though, that many privately-held companies will not provide financial documents. Requested financial records might include:

  • Annual and quarterly financial information
  • Accounts receivable
  • Capital structure
  • Summary of all debt instruments
  • Financial projections
  • Revenue (by product type, customers, and channel)
  • Major growth drivers and prospects
  • Summary of current tax positions
  • Schedule of financing history (equity, warrants, and debt)

Fund information

DDQs are necessary for mergers, acquisitions, or business partnerships. It probably goes without saying that fund information is crucial for financial or investment partner due diligence. The document might request information about:

  • Fund strategy
  • Product and fund descriptions
  • Market share
  • Timing of new products
  • Cost structure
  • Profitability

Governance, risk, and compliance

Assessing governance, risk, and compliance is the primary purpose for issuing a DDQ. Be prepared to offer documentation for:

  • Policies
  • Code of ethics
  • Fund exposure
  • Service provider risk
  • SEC communications

Legal

Legal documentation helps issuers determine whether a company is in good legal standing. You may be asked to provide information on:

  • Pending and past lawsuits
  • Environmental and employee liabilities and safety
  • Intellectual Property
  • Insurance coverage details
  • Summary of material contacts
  • History of regulatory agency issues

Streamline your DDQ response process with RFPIO

Issuing and responding to DDQs can be repetitive and time-consuming, and not just for dedicated response teams. RFPIO’s automated response software saves time, improves quality and accuracy, and helps foster good working relationships.

Due diligence software offers several features to help optimize the DDQ response process, including:

Knowledge library

RFPIO’s AI-powered Content Library is a centralized knowledge source—a single source of truth—that enables streamlined responses by intelligently answering most of a DDQ’s questions and providing the corresponding documents without asking SMEs to reinvent the wheel each and every time a similar question arises.

Answer intelligence

Using machine learning, RFPIO response management software understands the questions and knows how to respond to routine (and some not routine) requests based on previous answers. All you have to do is edit or accept the suggested responses.

Collaborative integrations

RFPIO offers best-in-class integrations with all the productivity, sales enablement, communication, and CRM tools you already use.

*Put your best answers forward with RFPIO*

Learn how RFPIO can help your company respond to DDQs with accuracy, efficiency, and expedience. Schedule a free demo – RFPIO, DDQ management software.

Understanding due diligence questionnaires

Understanding due diligence questionnaires

Selling & Enablement

The internet allows consumers to easily arm themselves with information that may influence their buying decisions. Before spending money at a restaurant or hair salon, for example, they might consult Yelp or Google Business reviews.

When a business enters into an agreement with another company, whether it’s a large purchase or even a merger or acquisition, making informed decisions is a little—okay, a lot—more complicated than just checking Yelp reviews. Before entering into a business relationship, buyers must do their due diligence, or there could be severe repercussions.

What does doing “due diligence” entail when entering into business agreements? In this blog, we’ll talk about when you can expect a DDQ (due diligence questionnaire), what to expect from it, and how to make filling one out a whole lot easier.

What is a due diligence questionnaire (DDQ)?

A DDQ is a formal document and request from a company looking to have a set level of understanding of a specific topic from a potential vendor. A DDQ enables the issuer to vet prospective partnerships.

It is worth noting, however, that DDQs vary between industries and types of products or transactions. Also, unlike an RFP, a DDQ is not a sales document and may not even be a precursor to a sales document.

Although, similarly to how many (if not most) companies run background checks on new hires, a DDQ might be that “background check” before signing an official deal. DDQs are most commonly sent from highly-regulated companies, such as those in the financial services industry.

Some DDQs are product-focused, asking, for example, what the product capabilities are. However, a DDQ is not a sales document, so it generally won’t get into specific product features, pricing, or logistics.

DDQs include:

  • Financial status – Businesses make large purchases to help them fulfill their customer obligations. Suppose they choose to do business with a company that isn’t on good financial footing and could go bankrupt. In that case, the purchasing organization risks financial loss, potential legal problems, damage to credit, and a hit to its reputation. This isn’t to say they’ll always receive the answers they’re looking for; we’ll get to that in a moment.
  • Business holdings – Asking an organization to disclose its business holdings is part of the financial vetting process. It could reveal potential red flags that expose the vendor—and potentially, by extension, the purchaser—to legal and tax vulnerabilities.
  • Compliance standards – Does the vendor meet the purchaser’s industry standards and applicable government regulations? These questions might arrive via a separate security questionnaire.

Due diligence core areas

Many people confuse DDQs with RFPs and security questionnaires, but they are quite different. As mentioned earlier, an RFP is a sales document. A security questionnaire has more in common with a DDQ than an RFP but security questionnaires are generally straightforward yes/no questions.

A DDQ might contain some narrative questions, similarly to an RFP. But a DDQ is strictly about vetting a company, not making a sale. The core areas include:

  • General organizational information (business credentials) – Typically, DDQs only ask about surface business credentials, such as company name, company legal name, year founded, primary products, number of customers, etc.
  • Financial review – Financial due diligence is one of the primary purposes for DDQs, especially in financial services. Customers may want to see the last three years of financial statements. Privately-held companies are not legally required to release financial information—and as a matter of course, they won’t. As an alternative, the vendor might suggest a phone call to discuss concerns.
  • Human resources – HR questions are generally more characteristic of an RFP than a DDQ. There might be some surface-level questions, such as “how many employees,” etc., but granular questions about HR are left to the RFP.
  • Funding – A DDQ issued to a startup company might ask about funding. A DDQ may also ask about a fund manager’s strategy.
  • Governance, risk, and compliance – This is a core piece of DDQs.
  • Legal – Legal questions are usually categories under compliance. Legal agreements are generally more RFP-focused.

What does a DDQ include?

While DDQs might have some narrative questions, most are yes/no. DDQ questions might cover several categories.

They might include:

  • Company questions – Company questions might include some narrative questions, such as, “tell us about (company history, organizational structure, subsidiaries, majority stakeholders, investments, etc.).”
  • Financial information – Financial information includes income, balance sheets, accounts payable and receivable, tax returns, credit reports, etc. Many privately held companies will not answer these questions.
  • Employee information – Employee information is generally part of an RFP. However, a DDQ might ask high-level questions such as the number of employees, types of non-compete and non-disclosure agreements, etc.
  • Legal overview – A DDQ is not a legal contract, but that doesn’t mean incorrect answers won’t get you in legal hot water in the future. You may see questions about litigations, permits, licensing, etc.
  • Financial and debt statements – It’s common for a DDQ to ask for financial and debt statements. However, while that information is public for publicly traded companies, privately held companies may not, and often do not, provide those answers.
  • Consumer/customer information – Customer questions are generally not part of a DDQ. However, it might include questions about security surrounding customer records or any litigations.
  • Industry and market insights – Industry and market insights are not common DDQ subjects.
  • Intellectual property – Intellectual property questions are common on DDQs. You could be asked how many patents your company holds, whether your products are intellectual property or crowdsourced, etc.
  • Operational information – Like HR questions, operational questions are typically high-level, such as about network security. However, in manufacturing, operational questions tend to be far more complex and in-depth.
  • Regulatory compliance – Regulatory compliance is generally the most critical part of a DDQ, especially in the tech, financial, and healthcare industries. You can expect several questions about whether you comply with an issuer’s regulatory requirements.
  • Data security and privacy – In most cases, data security and privacy fall under regulatory compliance. Some issuers might want to know whether you go above and beyond to meet stringent compliance requirements.
  • Contractual obligations – Contractual obligation questions are typically in an RFP instead of a DDQ.
    Reputation and publicity reports – Reputation and publicity report questions are not generally part of a DDQ. However, you will find them on RFPs and RFIs (requests for information).
  • Information technology systems – It’s common for a DDQ to ask about existing software and hardware.
  • Tax history – Tax history typically falls under financial questions. Most privately held companies won’t answer.

Why do organizations issue DDQs?

While DDQs are not a direct part of the sales cycle, they can help facilitate it. A company may issue a security questionnaire before an RFP or even compile a list of compliant vendors for future use.

It’s also prevalent for companies to issue DDQs to existing vendors to address significant organizational changes and maintain standards in their vendor pool.

  • Mitigate risks – Risk mitigation is the fundamental reason to issue a DDQ. Risk mitigation is a common concern in investment management. DDQs are often issued for existing relationships to ensure up-to-date compliance.
  • Guarantee compliance – This falls under risk mitigation.
    Streamline disclosure process – A comprehensive DDQ is designed to streamline information collection and disclosure.
  • Enable efficient gathering of large amounts of data – DDQs can collect large amounts of data, within limits. Large response teams can provide more data than smaller teams, although advanced response software helps level the playing field.
  • Accelerate transactions – Generally, DDQs do not accelerate transactions. However, they can make choosing vendors in the short or long-term future much simpler.

Understanding DDQ responses

An effective DDQ response provides enough information to empower transactions to proceed with assurance. Quality responses can help:

  • Demonstrate strengths with compliance – Demonstrating compliance can set you apart from some of your competitors, but again, DDQs are not sales documents. It’s essential to follow the issuer’s guidelines and never fudge or exaggerate your compliance.
  • Confirm historical performance – A DDQ may ask about past performance trends, especially in investment and financial firms. Other industries might be asked about overall growth, etc., although that’s usually not a focus.
  • Investment and asset management – A DDQ might also ask about investments and asset management. However, privately held companies might not answer the questions.
  • Disclose risks – From the buyer’s perspective, a DDQ is about disclosing any risks before entering into or maintaining a business relationship. Vendors might be tempted to gloss over risks, but it’s critical to be honest about your limitations and hopefully create a plan to address them.
  • Grow revenue – DDQs are not specifically revenue-generating documents, but in many cases, they are a necessary piece of housekeeping, so to speak, before entering a sales cycle.

Types of due diligence questionnaires

DDQs are about as varied as the industries they come from and their ultimate purposes. Some industry-specific or situational questions you might find are:

Mergers and acquisitions due diligence

Not surprisingly, DDQs issued before a merger or acquisition are highly detailed. Nothing is off the table, although a DDQ will commonly ask about financial history and obligations, security compliance, legal matters, contract obligations, etc.

It is worth noting that since mergers and acquisitions are typically not public knowledge within a company, the vendor should limit project access to executives and others involved in the query.

Vendor due diligence

Not all customer/vendor relationships begin with a DDQ; it depends on the industry. For example, purchases in the investment and management realm must include DDQs. Vendor management is about standardization to take any surprises out of future business arrangements. Overall, the goal is to reduce risk and inform decision-making.

Business relationship due diligence

DDQs can be a critical part of ongoing business relationships. Have regulatory requirements changed? Have you kept up? Has your business made any structural changes?

Investment due diligence

A DDQ is extremely important in vetting companies before investing. It is worth noting, once again, that the types of questions asked on an investment DDQ ask for sensitive information, so it’s unlikely that they’ll be answered by response teams.

Due diligence questionnaires: Best practices

Unlike the RFP process, which focuses on features, pricing, onboarding processes, etc., the DDQ process elicits details and insights that may be overlooked.

Define your strategy

Your DDQ strategy should begin long before you receive one. Response managers should determine:

  • Whether their SLAs are defined and available.
  • Who is going to intake the DDQ?
  • How long will it take before you start answering questions?
  • Who will answer the questions?
  • How long will the DDQ be in question/answer mode?
  • When will the DDQ be ready for review?

Address vulnerabilities

It’s easy to assume that a DDQ mitigates risks for the issuer with little benefit to the company responding. However, it’s not that simple. An accurate and thorough DDQ response strategy can identify vulnerabilities within your organization.

As for the issuer, failure to issue a comprehensive DDQ can result in:

  • Security breaches – If a company fails to properly vet vendors for compliant security protocol, they risk breaches that are out of their control, and the vendor risks fines and litigation when they fail to deliver or try to gloss over risks.
  • Failed revenue goals – If a purchase is tied to your company’s revenue and you’ve failed to do your due diligence, it could have revenue ramifications for several quarters.
  • Falling out of compliance – Even if all of your company’s systems are compliant, a non-compliant vendor could knock you out of compliance.
  • Breached contracts – If you choose a vendor who fails to adhere to their agreement, your customers will blame your company, not the vendor.
  • Fraud – Fraud in B2B (business to business) sales is rare, in no small part because the vetting process is far more rigorous than with most consumer purchases.
  • Mismanagement – DDQs help protect against the mismanagement of funds or data.

Clearly articulate core DDQ objectives

Why did you receive the DDQ? Is it a precursor to a sales process, or will it be an ongoing quarterly or yearly review or audit?

Employ a consistent and systematic approach

An effective DDQ response process requires thoroughness, accuracy, and consistency. Advanced response management software, such as RFPIO, is the tool that creates time-saving repeatable processes.

  • Prepare customized templates – Create a branded answer template that easily imports information from whatever format a DDQ appears in.
  • Identify and quickly access SMEs – Are the questions in their area of expertise, and do they have the time?
  • Leverage RFP response management software – RFP response management software helps ensure that your answers are accurate and on-brand while saving time and resources.

Work from due diligence checklists

Checklists are built into nearly every project management software. Checklists keep you on time and on track.

Super-organized issuers might even build checklists into their DDQs.

A checklist:

  • Enables easier comparisons – Think of a DDQ as an opportunity to check your company’s compliance as it compares to yours and your issuer’s standards.
  • Effectively collects information – A checklist helps ensure that you aren’t missing anything and aren’t gathering the wrong information.
  • Prevents missed deadlines – A checklist will help ensure that your response is complete and on time.

Centralize organizational knowledge

DDQs aren’t known for originality; however, two issuers rarely ask similar questions in identical ways. Can you make the answers repeatable? Can you store answers in a single source of truth to accelerate future DDQ responses? Whether a DDQ has 20 or 2,000 questions, having content in place is by far the biggest time saver.

A single source of truth:

  • Ensures accuracy – All information stored in a company’s knowledge library should be verified accurate through regularly scheduled audits.
  • Supports transparency – With pre-approved answers, a comprehensive AI-powered knowledge library does much of the work for you.
  • Improves knowledge access – In a perfect world, every DDQ stakeholder would have access to their single source of truth. RFPIO’s unique project-based, rather than user-based, pricing structure gives access to any authorized person without having to purchase additional licenses.

Leverage automation

Because DDQs arrive via a myriad of formats, it’s crucial to have software in place that helps you standardize them. Intelligent automation goes several steps further by doing up to 80% of your work.

Benefits of DDQ response automation include:

  • Tracking the completion process in real-time
  • Streamlining the response time
  • Scaling the ability to respond to DDQs
  • Efficiently managed tasks and deadlines
  • Improved collaboration

Due diligence example questions

Not surprisingly, a DDQ’s questions are industry-specific. Below are some common industry-specific examples:

Organizational due diligence questions

Organizational due diligence questions can be a part of any DDQ, but in-depth organizational due diligence questions are more common in mergers and acquisitions than in vendor DDQs.

Questions might include:

  • What is the organizational structure of your company?
  • Can you provide professional bios for senior leadership?
  • Can you offer diagrams and charts of your corporate structure?

Financial due diligence questions

DDQs are most common in the financial services industry. Expect DDQs to ask:

  • What are your operating costs?
  • Can you provide income statements and balance sheets?
  • Can you provide accounts receivable information?
  • Can you give a breakdown of sales and gross profits (by Product Type, Channel, and Geography)?

HR due diligence questions

HR due diligence questions are uncommon but not completely unheard of. You may have to answer questions such as:

  • What do current employee contracts look like?
  • What are historical and projected head counts, both by function and location?
  • What are your benefit plans?
  • Can you provide incentive stock plan overviews?

Investment fund information

Investment and hedge funds, of course, are an arm of the financial services industry, so you will generally see DDQs. Questions might include:

  • What are your fund strategies and goals?
  • What are your historical and projected growth rates?
  • What is your market share?

Governance, risk, and compliance

A DDQ’s most basic function is to determine and mitigate risk. Governance, risk, and compliance questions include:

  • What are your organizational policies?
  • Can you provide an organizational code of ethics?
  • Can you provide a breakdown of service provider risk?
  • Can you provide your SEC communications plan?

Legal due diligence questions

Legal questions generally fall under RFPs rather than DDQs, however there are some cases where an issuer might include legal questions, including:

  • Have you been involved in any litigation?
  • Are you currently involved in any litigation?
  • What trademarks and patents do you currently have?
  • Can you provide insurance coverage details?
  • Can you provide your history of regulatory agency issues?
  • What are your compliance programs and policies?

Simplify due diligence with RFPIO

Repetitive, manual due diligence efforts are inefficient and cumbersome. RFPIO is a response platform and a project management platform. Simplify your DDQ response processes with:

Standardize importing – Whether your DDQ arrives as a spreadsheet or a Word document, import it into RFPIO for standardized, highly-searchable, formatting and functionality.
Project management – RFPIO will let you set project goals and timelines, helping ensure your answers will arrive on time.
The ability to choose your SMEs – Your SMEs are very busy and have varying degrees of expertise. RFPIO will show you the SMEs who’ve answered similar questions in the past, and show their availability.
Repeatable answers – DDQs can have thousands of questions. RFPIO’s Content Library stores approved answers to previous questions, letting you auto populate and edit as you see fit.
Standardize exporting – RFPIO lets you customize templates to match your brand and impress the issuer.
Responding to DDQs

RFPIO is the number one response management platform, and not just for RFPs. Leverage RFPIO throughout your entire DDQ response process to provide professional, accurate, and on-time responses. RFPIO’s AI-powered response platform provides:

  • A single knowledge library (RFPIO’s Content Library) – Add answers to any DDQ from anywhere within the company
  • RFPIO® LookUp– Provides access to the Content Library to any authorized person with a browser.
  • Recommendation Engine – Automatically suggests the best responses
  • Project management functions – Assign, manage, and track workflow tasks and deadlines.
  • Scalability to respond to DDQs – While most SaaS (software as a service) products have a per license pricing model, RFPIO allows for unlimited users with project-based pricing. Your capabilities will grow as you need and scale back when your response team can take a little breather.

RFPIO also enables collaboration with seamless integrations with all of the most popular communication applications. Keep in touch with teammates from anywhere in the world using Slack, Microsoft Teams, Google Hangouts, or Jira to:

  • Ensure accuracy – It would be tough to answer a DDQ without help from some SMEs. Real-time communication and fact checking helps you submit accurate answers.
  • Efficiently manage tasks and deadlines – Stay in touch with each stakeholder to ensure each task is completed on time.
  • Streamline response time – Better communication enables faster response times.

Explore a better DDQ solution

RFPIO isn’t just for RFPs. Our comprehensive response management platform makes responding to DDQs fast, secure, scalable, accurate, and on time. If you would like to learn how RFPIO can help you demonstrate compliance, schedule a free demo.

DDQ vs. security questionnaire

DDQ vs. security questionnaire

Selling & Enablement

From content to timing, confusion often surrounds the differences between a due diligence questionnaire (DDQ) and a security questionnaire. Read on to learn the nuances of each document to improve your responses and win that next deal.

What is a DDQ?

A DDQ stands for due diligence questionnaire. Organizations send them to mitigate risk before entering into an agreement with another company. It is a formal document designed to establish whether a vendor complies with industry and/or customer standards or needs, including how the vendor manages its own network and cybersecurity protocols.

Unlike an RFP, a DDQ is not as much about competitive evaluations. A DDQ is all about compliance and business practices.

What is a security questionnaire?

Much like it sounds, a security questionnaire is sent to potential vendors to determine whether their security protocol meets the issuer’s standards and legal requirements. Security questionnaires are technical and usually highly complex, however most questions are “yes” or “no” rather than narrative.

Note that neither DDQs nor security questionnaires are sales documents.

DDQs vs. Security Questionnaires

Now that you know the definition of a DDQ, let’s get into how security questionnaires are unique, along with a few similarities they share with DDQs.

Common industry

Any organization can issue a DDQ, but we see them most in the financial services industry. Security questionnaires are primarily used by organizations operating in technology—either hardware or software.

Market evaluation

Much like a DDQ, a security questionnaire will not be used as a method of evaluation between vendors. Although, if an organization throws an RFP (request for proposal) into the mix, then both questionnaires play a role in market comparison.

Because a security questionnaire is not a competitive evaluation, the issuer won’t spend time performing a security review with more than five potential vendors. It’s completely different from responding to an RFP, which may be sent out to tons of vendors to cast a wide net.

Issuing departments

Usually, a security questionnaire comes from a security department (infosec, IT security, cloud security, etc.). While a DDQ will not necessarily come from that department—marketing, client services, or compliance teams frequently send these documents to responders.

Sales timing

Security questionnaires and DDQs typically show up early in the sales cycle. They may come in when an organization is trying to set you up as the vendor of choice or before it’s time to renew. Before you can become their new vendor, they need to make sure you’re compliant. If you’re an existing vendor, they might need to ensure you’re still compliant.

Even when you become their vendor partner, you might see a due diligence questionnaire again and again. Especially in the financial services industry, DDQs are sent to vendors annually—even quarterly—so make sure you’re up to speed on industry regulations.

Document types

A security questionnaire is predominantly an Excel spreadsheet. A DDQ could be a spreadsheet, but about 70% of the time, this questionnaire lives in a Word document.

Question types

Security questionnaires tend to be a standard set of questions, where you answer some variation of a yes/no answer in a drop down. You might need to add some commentary to back up your answer. While there will be some black or white questions in a DDQ, there is also room for interpretation and creating a narrative.

Succeeding with Security Questionnaires and DDQs

To knock content out of the park with security questionnaires and DDQs, naturally, the best technique is accuracy. With that top of mind, here are other tips to help you succeed as a responder.

Security Questionnaires

You have a lot less room to knock this content out of the park. Your data is encrypted or it’s not. You either have the firewall or you don’t. It’s not about how you implement the firewall, it’s simply: Do you have the firewall set up?

Stick to the facts

Obviously, one thing you don’t want to do is lie. Let’s say you are asked if you check your disaster recovery plans every 60 days. If your process is checking disaster recovery plans once a year, don’t say “yes.” They will find out 60 days later when you don’t meet their requirements.

Time to completion

Time to completion is a really good thing to shoot for with security questionnaire responses. You’re usually still in an evaluation process where you might be the vendor of choice or you’re one of two choices.

DDQs

Similar to an RFP response, there is more room for creativity with your DDQ content. However, don’t respond to a DDQ exactly as you would to an RFP. Before you respond, consult with the correct SMEs (subject matter experts).

Early stage advice

If you receive a DDQ in the early stages of the sales cycle, this document might be their vendor filtering method. DDQs are not the time for a sales pitch. Instead, consider showing your strengths with compelling and (most importantly) accurate narratives showing compliance. Late stage advice

During the late stage of the cycle, your DDQ might be a recurring document you respond to with an existing client, or it could be in addition to a DDQ you’ve already answered. Get straight to the point and ensure accuracy to show you are still in compliance.

Next steps

If due diligence questionnaires are a regular part of your sales process, response software for DDQs, such as RFPIO, makes answering them a whole lot easier. Your RFPIO Content Library can answer many of a DDQ’s questions with a few clicks.

RFPIO can help you increase DDQ and security questionnaire accuracy and efficiency.  Demo RFPIO today to support your sales process.

Understanding the RFP response process

Understanding the RFP response process

Selling & Enablement

If your company is like most, you responded to a lot more RFPs last year than you did the year before. You’ll likely respond to even more in the upcoming months and years.

Leadership is beginning to understand the importance of dedicated response professionals. Still, they’re a bit more reluctant to invest in the processes needed for efficiency, faster response times, better morale, and higher win rates.

To be fair, not all RFP response processes call for automation or even computers, but unless you’re a one-person show–and even if you are—creating quality, on time responses requires a repeatable process. Here is what that looks like for us and perhaps for you.

The basics of the RFP response process

When a company or organization wants to make a major purchase or launch a project, they usually issue a detailed document–a request for proposal (RFP)—describing their needs to several potential vendors. A typical RFP will outline the following:

  • Their budget for the project or product
  • The project’s goals
  • Common deal-breakers, such as:
    • Unsatisfactory audit findings
    • Insufficient security protocols
    • Poorly-defined procedures and policies
    • Improperly vetted subcontractors
    • Customer support concerns
    • Inability to meet the buyer’s budget or timeline
    • Not enough customer references
    • No out-of-the-box functionality
  • The most important factors
  • The RFP’s due date

The prospect may also include separate documents such as a security questionnaire, which asks about your and third-party vendors’ security protocols, or due diligence questionnaire, which asks about your company rather than your product.

The best way to produce a winning bid is to have a process in place. Do you have project management software? Who is your project manager? Do you have a list of subject matter experts (SMEs) and their schedules? What about other stakeholders, such as writers and editors?

RFPs are more alike than they are different. Around 80 percent of an RFP’s questions are relatively standard. For example, it’s common for an RFP to ask about company history, hiring practices, and the onboarding process. Why not have those answers ready to go or at least prepared for a quick proofread?

Creating a repeatable process establishes:

  • Whether the RFP is worth pursuing
  • Team participants
  • Timelines
  • Role definitions
  • SME engagement
  • Final evaluation

Why are RFPs issued?

Organizations issue RFPs when their needs are complex and want to efficiently access multiple vendors. Governmental organizations, many nonprofits, and large companies send RFPs for every purchase exceeding a certain threshold.

Steps in the RFP response process

Establishing an effective and efficient process is easier than you might think. RFPIO’s response managers have identified eight steps:

Step 1 – Go/no-go

As the number of RFPs you receive increases, so does the number of questions on each one. Instead of attempting to respond to each one, choose those that best align with your business and are winnable.

Step 2 – Have a kickoff party

Unfortunately, most kickoff parties don’t have cake, but they do define team and individual roles, responsibilities, and objectives.

Step 3 – 1st draft

Because roughly 80 percent of an RFP contains questions you’ve probably answered before—many times—let your automated system take a run at it first. Make sure the answers are correct and up-to-date.

Step 4 – 2nd draft

Consult with SMEs and other stakeholders to answer the remaining questions.

Step 5 – Review and revise

Were the questions answered accurately and completely? Were all the objectives met? Are there any misspelled words or typos? Are the responses otherwise well-written? Have you attached all relevant documents?

Step 6 – Submit

Once you’ve completed and polished the response, submit it (hopefully before it’s due). Confirm that it was received and let team members know.

Step 7 – Save and audit the responses

Every answer is potentially valuable for future RFPs. Save them in a central location that’s easily accessible to key stakeholders. Make sure you regularly audit the content in the centralized repository.

Step 8 – Postmortem

Win or lose, every response is a learning opportunity. What worked? What could have used improvement?

An example of a high-quality RFP process

A high-quality process is well-defined, efficient, and generates quality proposals for winnable RFPs. Once you’ve established a high-quality process, your team will begin to run like a well-oiled machine, you’ll increase the number of responses and hopefully win more bids.

Accruent, a Software-as-a-Service (SaaS) company, has recently acquired several companies with highly-technical products. RFPs began arriving faster than the response team could master the new technologies. Unsurprisingly, SMEs were stretched thin.

Accruent introduced RFPIO into their response process. Confident that their answers would be stored for future use in their Content Library, SMEs were much more likely to offer their expertise.

Soon, because more than 75 percent of answers came directly from the Content Library, the response team more than tripled its capacity.

RFP response process metrics

The go/no-go step is key to increasing your win rate, but knowing which RFPs to answer requires data. Tracking metrics should be part of your response process. Those metrics include the following:

  • Project types – How many RFPs did you answer compared to DDQs and other documents?
  • Types of wins – You should save your resources for winnable RFPs. What kinds of projects provide the highest win rates? Break types down by:
    • Vertical – Are there specific industries that are more apt to purchase your product or service?
    • Company size – Are your target customers enterprise-level or small and medium-sized businesses?
    • Product line – What is your win rate for that product?
    • Project type – Has your company successfully implemented this type of project in the past?
    • Project stage – How far do similar projects make it through the sales funnel?
    • Number of questions – Do you have the bandwidth for an RFP of that size?
    • Project value – Is it worth it for you?
  • Project scope – How much work does your current project require?
  • Completion time – How long does it take, on average, to complete a similar project? What is the shortest time on record, and what is the longest?
  • Average response rate – What percentage of incoming RFPs do you answer?
  • Resource needs – Comparing the content and moderation needs, who are the people who are best suited for the project?
  • Content needed – Read and understand the questions and determine how much content you have in your Content Library.

Once you have decided to go forward, metrics help keep you on track and tell you whether it’s worth continuing.

  • Determine workload – Break down the project into manageable deliverables which can be divided among your team.
  • Readability score – Write in a way that’s easy to understand, typically at no more than a 10th-grade level. Use tools like the Hemingway App or Flesch reading ease test to ensure readability.
  • The Probability of Win Score (PWIN) – You’ve already calculated your odds of winning based on past similar projects. Still, the PWIN examines the details of your current project for a more accurate prediction.
    • How do your answers compare to similar RFPs that you’ve won?
    • Have you answered each question?
    • Have you met all the conditions?
    • How many questions were you able to answer in the affirmative?
  • Identify content gaps – What is missing from your Content Library? What needs to be updated?
  • Determine your Content Library’s health – How many questions can you answer using the curated content in the Content Library? Aim for 40-80 percent.

For more information on response metrics, read here.

Best practices for a smarter RFP process

Turning your RFP process into an 800-horsepower revenue-generating engine takes coordination, a great pit crew (so to speak), and tools to turbocharge efficiency.

At RFPIO, we receive and respond to RFPs just like you. Below are the best practices our experts swear by.

Encourage collaboration

A Facebook poll by RFPIO found that effective collaboration was considered much more important than an efficient process. I would argue that neither is possible without the other.

Because RFPs are long, complex, and require potential input from every department, from finance to HR to IT (and more), collaboration is a critical part of an RFP response process. And because we have distributed and siloed workforces, intense competition for SMEs’ time, and tight deadlines, smart processes foster collaboration.

An RFP response system should leverage project management and communication tools to keep everyone on the same page. And because respecting your colleagues’ time is key to continued collaboration, it should also include a single source of truth knowledge management system to record answers for use on future projects.

Bring effective storytelling into your RFP responses

No one is suggesting that your RFP response should include the next great novel, but telling your organization’s story helps make your response memorable and builds trust among readers.

Your proposal’s story should include information about your company, such as why your founders created your solution, how it will meet the customer’s needs, and how you will handle their needs.

Your cover letter might highlight your company’s values and what it does to live up to them. It’s also a great idea to include testimonials from customers with similar needs.

Automate your response process

At least three-quarters of companies hope to boost their RFP response, but only around half of those companies consider increasing response staffing. That leaves one option, which is to automate their response processes.

Because most questions on an RFP are exact or near exact duplicates of former queries, you can save hours, days, or even weeks by leveraging machine learning to access those repeat question-and-answer pairs, giving you the time to address the questions that need your efforts.

Develop habits that support organizational success

Suppose you worked out or ate well today. Congratulations! Continue for a few weeks, and the next thing you know, you’ll have formed a habit that might lead to better health and longer life.

When you habitually maintain your list of SMEs and other stakeholders, as well as your Content Library’s health, those habits will pay off with faster responses, smoother collaboration, and improved morale.

Enable your sales team

Aside from your employees, a well-maintained single source of truth is your company’s greatest asset. It might contain incorporation papers, financial statements, sales reports, and product details. There’s no limit to the number of use cases.

We like to think of RFPIO as a sales enablement platform. Naturally, RFPs generate tremendous revenue. Still, a well-maintained Content Library supplies relevant, customer-facing information for sales teams with a few keystrokes. RFPIO’s proposal management features can help you create winning sales proposals complete with automation and reporting.

And because salespeople spend time on the road, RFPIO® LookUp provides access to your Content Library from anywhere you have browser access.

The role of RFP software

Chances are, your company uses CRMs and other sales enablement platforms. You probably also use communication apps and some sort of project management software. How does one make a case for more on top of what your CIO might call a bloated tech stack?

Advanced RFP software works with your tech stack, not on top of it. It should integrate with your productivity, communication, and sales enablement apps, but it should also add value on its own. Unlike a standard project management platform, RFP software is customized for proposal management.

RFP software is designed to let you respond to more requests and maximize your win rate. It may not be a specific part of your sales team, but like your top salespeople, its superpower is revenue generation.

Advanced RFP software should import and export from and to nearly every format and offer standard and customizable templates. Its knowledge and document library should provide relevant stored Q&A pairs as well as required documentation with a few keystrokes. In fact, its knowledge and document library should serve as a single source of truth for the entire organization.

The software’s reporting features should go far beyond response analytics and help facilitate informed business decisions. Additionally, because RFPs come in waves, software should be scalable and instantly respond to your changing requirements.

Choosing the right RFP software for your team

I could spend hours highlighting all the RFP software features you might need, but the fact is that even you don’t know what might arrive next week and especially next year. Your ideal RFP response solution is a bespoke answer to your evolving needs.

The software should work with your existing systems to maximize revenue and efficiency. It should be designed by response managers who know the ebbs and flows of response processes.

The most important feature, however, is the designers. Is the company receptive to your questions and poised to consider adding features as requested?

RFPIO’s approach to the response process

RFPIO offers an end-to-end approach to RFP response. Its features include:

  • Knowledge – Store your commonly-seen questions and answers and your critical documents in a single repository.
  • Collaboration – Communicate with other stakeholders inside the platform or with your current collaboration apps.
  • Projects – Break your projects down into manageable pieces, assign tasks, and keep track right inside the app.
  • Insights – How much time and other resources are you using? How many and what kind of deals do you win? What are your strengths and weaknesses? RFPIO has many standard and nearly unlimited customized reporting features.
  • Integrations – RFPIO integrations work seamlessly with more than two dozen of the most popular business applications.
  • Remote access – RFPIO® LookUp provides access to your Content Library through Google, Microsoft Office, and many other applications.
  • Loyal customers – RFPIO is the response platform for many of the world’s most successful companies, including Google, Microsoft, Facebook, Visa, Lyft, Zoom, and hundreds more. Read more about RFPIO from our customers.

Case study

While RFPIO is the RFP response solution for large companies, most enterprise organizations have dedicated response departments. Employees for smaller companies find themselves wearing many hats, which sometimes means putting RFPs on the back burner.

Complí, a small software company located in Portland, OR, often found themselves missing deadlines for lack of time and personnel. Just a week after investing in RFPIO, that changed. The company was able to respond to RFPs without holding time-consuming, in-office meetings. They were also able to complete up to 80 percent of each RFP with just one click, thanks to the Content Library.

Today, they are submitting RFPs on–time (and even early) and the entire company uses the Content Library as their single source of truth.

RFP response management process FAQs

It isn’t easy to gauge RFPIO’s true value without seeing it in action. We invite you to view a demo to see how RFPIO might benefit your organization. Before that, though, here are some of the most common questions we are asked:

  • What is an RFP? – A request for proposal (RFP) is a document designed to solicit multiple bids for large organizational purchases.
  • What type of information and questions are included in an RFP? – An RFP provides in-depth descriptions of the customer needs, deadlines, and so on. It might ask for company history and details, pricing, related past projects, and projected deliverables, and so on.
  • Why do organizations issue RFPs? – Organizations issue RFPs to gather pricing and service comparisons in their desired formats.
  • Who responds to RFPs? – Some organizations have dedicated response departments. Others might respond through their sales teams.
  • What does RFP software do? – The short version is that RFP software helps organizations win more business using fewer resources. The longer version is that it utilizes your existing applications and teams, along with customizable tools and a robust Content Library, to become a revenue-generating engine.
  • Does RFPIO do more than respond to RFPs? – As a response platform, RFPIO will automatically respond to up to 80 percent of a request for information (RFI), request for quote (RFQ), security questionnaire, due diligence questionnaire, and more. As a sales-enablement tool, its proposal management features and Content Library will help you drive revenue. And as a business application, its built-in and customizable analytics will provide the information needed for informed decision-making.
  • Does RFPIO integrate with existing applications? – RFPIO integrates with more than two dozen applications, including the most popular ones.
  • What if we need to add or subtract users? – RFPIO has a best-in-class pricing model. Instead of purchasing licenses, we provide unlimited access.
  • Is RFPIO secure? – RFPIO has industry-leading security protocols. We are trusted by the world’s leading technology, healthcare, and financial services companies, including Google, Facebook, Microsoft, Visa, Cigna, and far more.
How to respond to an RFP like an all-star champ

How to respond to an RFP like an all-star champ

Selling & Enablement

Organizations issue requests for proposals (RFPs) because they have a need that cannot be fixed internally—a big need—one that will cost lots of money. This isn’t calling a plumber to fix a clog. This is soliciting bids from multiple contractors for complete remodels, or to construct full-on additions.

Obstacles in the RFP response process

The scale of an RFP can be huge

RFPs contain up to thousands of questions and requests for specific content. If your company has a solution to the problem put forth by the issuer, then you respond with a proposal that includes all the answers and requested content. Depending on the size of the RFP, it can take you hours, days, or weeks to prepare a response. As long as you submit your completed RFP response by the deadline, your solution will be considered.

Competition is fierce

The issuer compares your RFP response with all of the other RFP responses received from your competitors. Sometimes, the lowest price wins. Other times, the best solution wins. Sometimes, it’s both…or neither.

Success requires more than paperwork

Much of the time, the winner results from the best pitch — an umbrella term that includes the RFP response, relationships built with sales and subject matter experts (SMEs) during the process, pricing, reputation, and a variety of other factors. Then there are the times when winners are selected based on prior or existing relationships between the two organizations.

No matter what the deciding factor between an RFP win or loss, the ultimate truth is that you have to compose an RFP response to have a chance. Why not put your best foot forward?

How to respond to an RFP

The RFP response process is cyclical, not linear. I’ll get into more of that in the best practices section. For the sake of getting a proposal out the door, you need to follow these eight steps after you first learn about the RFP.

1. Qualify the bid

Is this worth going after? As I mentioned earlier, RFP responses can take weeks to compose. Starting off with a go/no-go checkpoint gives you an opportunity to evaluate how your solution measures up, the financial viability of the project, availability of resources you’ll need to submit a response by the deadline, and any other factors that will impact your business during the response process. Essentially, building a proposal is like investing in your future. Every investment requires close scrutiny.

2. Understand requirements

What do you need to get it done? This ranges everywhere from the type of content, to who produces the content, to who is responsible for signing off on the final proposal. The list can be quite lengthy, but it must be comprehensive to make sure nothing falls through the cracks.

3. Answer commonly seen questions

Pull from your content library to fill in answers to commonly seen questions. If anything needs to be reviewed by a subject matter expert, be sure to get their eyes on it before submission.

4. Assign due dates and tasks to key collaborators

Whose expertise do you need to get this done? After you determine requirements, you’ll identify all the milestones. There’ll be due dates for content, reviews, edits, and approvals for multiple collaborators. The trick is respecting everyone’s time while driving the process forward.

5. Assign questions for review and approval

Who needs to sign off on this content? Likely, this will not be a Caesar sitting in the stands giving thumbs up or down. You’ll have multiple approvers to sign-off on content related to sales, product, support, legal, branding, etc.

6. Polish

Make sure you’re telling the story you want to tell. Add visuals or other supporting content to tell your story better. This is where you can nail the competitive differentiation. If you have the good fortune to have a dedicated proposal team, this may fall on writing and design specialists within that team. It may also be someone from branding or marketing—someone who puts eyes on anything that your organization produces for external audiences. Ensure your proposal is in a clean, easy-to-read format. Or, even better, put it into a branded template.

7. Proofread

Don’t let poor grammar and typos be the reason you lose the bid.

8. Submit to issuer

Push send with no regrets (See? Proofreading is important!).

The Benchmark Report: Proposal Management

Learn about the state of proposal management, and see what teams need to do to be successful moving forward

Read the report

Best practices for responding to an RFP

Whether you have a dedicated team of stakeholders from each department or you assign a new team for each project, what matters most is that everyone in the organization recognizes that they have skin in the game. 

RFP wins, proactive sales proposals, and fast turnaround on questionnaires equate to revenue and may determine whether the company grows, shrinks, or offers an extra percentage point in next year’s retirement fund match.

Build the right team

Proposal managers lead the proposal team. Proposal managers may think of themselves as the director of a motion picture. After that “Directed by” end title flashes, another three minutes of credits roll by.

The proposal team I’m referring to is made up of the individuals you rely on for a variety of roles:

  • Prospect and customer interaction – Customer-facing teams have their fingers on the pulse of competitors and customer needs.
  • Subject matter expertise – Many RFP questions require detailed answers, and for those you should turn to the people who know the most about their particular area of expertise.
  • Brand messaging – Consult with marketing before submitting your response to ensure that you are on brand.
  • IT support – Can your company support the issuer’s needs?

… and all of the others who are vital to creating a winning proposal.

Even a one-person proposal department needs input from internal or external SMEs to build a high-quality response. 

Only respond to RFPs you can win

As part of your bid-qualifying at the beginning of your RFP response process, add a go/no-go checkpoint to ensure that you only respond to RFPs you can win. Whether it’s a scheduled team meeting or a checklist, you need to answer:

  • Is the RFP the right fit for your organization and solution?
  • Do you have a comprehensive solution that addresses all of the challenges presented in the request?
  • Does your pricing match the budget?
  • Do you have an existing or prior relationship with the issuing organization?
  • Do you have any insight into why the RFP has been issued?
  • Can you meet the submission deadline?

Basing the answers to these questions on data rather than anecdotal evidence will help validate the go/no-go step as well as your role as a proposal manager. RFPIO’s AI-powered analytics tools provide that data.

Respect contributors’ time

If you want SMEs and other stakeholders to feel a sense of ownership for their proposal responsibilities, then you have to respect their time. RFP responses will suffer if contributors end up working after hours and weekends, rushing to meet deadlines. Get their buy-in ahead of time on deadlines and time required for reviews and approvals.

Document your process

A documented RFP response process will anchor your team during the most chaotic times. It’s up to you to own the process, but RFP software will make it easier to automate, execute, and monitor processes from beginning to end on multiple projects running simultaneously.

Conduct a win/loss review

The win-loss review gives your team an opportunity to close the loop. Internally evaluate what worked and what didn’t.

Did you win? Why? How can you repeat it for future proposals?

Did you lose? Why? How can you avoid it in future proposals?

Include the whole proposal team in a wrap-up summary, but make the extra effort to work hand-in-hand with sales enablement so they can bring in the customer perspective.

Let technology do the heavy lifting

Remember earlier when I said the RFP response process is cyclical? The win/loss review will inform your new go/no-go step, increasing your predictive accuracy of which RFPs you can actually win. It helps to have RFP software for a win-loss review because you have everything that went into the response—the planning, communication, content, and the actual response—in one place.

Software is the single most effective way to overcome lack of time, experience, and other resources. It’s the difference maker that will help you respond like a boss. With only 43% of organizations using RFP-specific technology, there’s a huge opportunity for you to get a leg up on competitors.

How RFPIO can help

RFPIO RFP software makes it easier to collaborate with an extended team and leverage the power of technology. With automated processes for scheduling, collaboration, and completing wide swaths of massive RFPs using our industry-leading Content Library, you can blaze through the first pass of a response faster than working without RFP software or with less advanced software solutions. 

You create more time to spend customizing the responses that really matter and focus on differentiating yourself from the competition. And that’s only the beginning! 

Using software at every step in the RFP response process

Here’s a quick overview of how RFPIO RFP software helps during each of the seven steps of RFP response:

  1. Qualify the bid — Check data from past similar RFPs. What took weeks without RFP software may only take hours with it. All things being equal, is this RFP winnable?
  2. Understand requirements — Let the tool create a checklist of open items based on what remains after the automated first pass conducted at intake by your Content Library.
  3. Answer commonly seen questions — RFPIO RFP technology consolidates all your previous Q&A pairs into an intelligent Content Library, so you can automatically respond to repeat questions in just a few clicks.
  4. Assign due dates and tasks to key collaborators — Assign each RFP question or section as a task to individual collaborators from the project dashboard in RFPIO. They’ll then receive a notification from where they’re already working (e.g., email, Slack, or Teams).
  5. Assign questions for review and approval — Simplify the review and approval process with automated reminders and cues across multiple platforms.
  6. Polish — From intake, work within a branded template and support answers with approved content that’s always up-to-date according to the SME in charge of that content.
  7. Proofread — Still important, but working with already-approved content will decrease how much you have to proofread.
  8. Submit to issuer — Push send from RFPIO or your integrated CRM!

We recently created a Proposal Management Benchmark Report where we found that organizations using RFP software already managed 43% more RFPs than those who do not use RFP software. If you’re looking to speed ahead of the field in RFP response, then gain traction faster with RFP software.

I’ll just leave these other tidbits right here…

Recognize SMEs and salespeople at quarterly meetings. Salespeople are competitive and like to be recognized for winning.

Implement formal kickoff meetings for RFPs. Make them quick and include pre-reading materials in the invitation to hit the ground running. Some organizations combine this with a go/no-go checkpoint.

Hold 15-minute daily standup meetings or calls as you approach the RFP deadline. Focus on status reports and action items.

Commit to professional development time. Join this LinkedIn group, the response management Slack community, or connect with APMP. This is especially valuable for small shops, where it can be hard to build a network.

If this has inspired you to investigate RFP software, then schedule an RFPIO demo today!

How to choose the right RFP software

How to choose the right RFP software

Products/Features/Solutions

According to Bill Gates, “Software innovation, like almost every other kind of innovation, requires the ability to collaborate and share ideas with other people, and to sit down and talk with customers and get their feedback and understand their needs.”

Software, as Bill Gates reminds us, is a tool. The best software breaks down silos and encourages collaboration. The best software is agile—it addresses its customers’ needs today and quickly adapts to tomorrow’s. 

The best software is built by humans. Machine learning technology adapts the software to its users’ needs. Great software companies go even further by using customer feedback to routinely improve their products. 

Great RFP software and software companies do all that but with the specific goal of encouraging efficiency in the RFP response process. The most successful responders see the best results by collaborating within a single response management platform…RFP software.

What is RFP software?

Request for proposal (RFP) software helps organizations respond to more RFPs in less time. Of course, that barely scratches the surface of advanced RFP software capabilities. Advanced RFP software helps optimize every step of the RFP process, from before the document is received to after the bid is made. 

Essential RFP software features

An efficient response management platform includes features that streamline your team’s workflow. At the very minimum, RFP software should feature: 

Import and export capabilities

Before the advent of RFP software, there were *gasp* manual processes. Of course, the challenge is that issuers send RFPs in a variety of formats, including Microsoft Word and Excel, Google Docs and Sheets, and sometimes PDFs. And—this will surprise no one—issuers weren’t (and still aren’t) consistent in their formatting inside their docs, spreadsheets, or PDFs. 

Have you ever searched a poorly organized spreadsheet? Where do you search docs or PDFs if you don’t know what you’re looking for? Manual importing is tedious and time-consuming. In fact, it can be the most time-consuming part of a manual RFP process. 

RFP response software should be able to recognize critical questions and information, regardless of the format, and import them into your RFP software.

There are two kinds of people in this world: people who say there are two kinds of people and people who don’t. There are also spreadsheet people and doc people, although some live on the wild side and do both. 

Spreadsheets are mathematical and formulaic, but that doesn’t mean the formulas are standard from RFP to RFP. RFP software imports spreadsheets in a couple of ways:

  • Standard template – Basic RFP software allows for standard template import, where you download the template spreadsheet, copy/paste the questions, and then upload it. 
  • RFPIO’s advanced configuration – Forget copy/pasting. Advanced configuration lets you process raw source files, customized how you want them. Beyond that, RFPIO automatically detects predefined dropdowns and automatically configures the sections.

Word and Google Docs, on the other hand, are more visual. The biggest challenge with Word and Google Docs is knowing what you need to reply to. Word and Google documents often have a lot of filler, such as company detail, at the beginning of an RFP. 

While most RFP software can import the text from Word, they have difficulty distinguishing between what’s useful and what isn’t. RFPIO reads the document’s style guide and can auto-identify sections and questions. 

Often, RFPs arrive in mixed formats. Many Word documents have Excel tables or charts inserted into the doc. Not a problem, at least when you’re using RFPIO. Many of the same rules apply to importing Word and mixed documents as to Excel sheets:

  • Identify the sections, questions, and answers in the original document.
  • Process the source document and customize it using RFPIO’s advanced configuration.
  • Preview to make sure everything is in the right place.

RFPIO’s advanced import and export capabilities can shave as much as half the response time. 

Content management

In the early 2000s, workers whose jobs required access to company knowledge spent about 2.5 hours a day searching for information. If you’re old enough to remember, those were the days of dial-up, AOL, and Ask Jeeves. Software as a service (SaaS) was unheard of. 

Twenty years later, nearly everyone has the internet. Need an answer to a question? Google it. And you’d be hard-pressed to find a business problem that can’t be addressed using a SaaS application. Surprisingly, the time spent searching for knowledge has increased from a bit over ¼ of the workday to nearly half.

Why would that be? There are probably a couple of reasons, including that businesses are a lot more siloed now than they were at the turn of the millennium—and of course, there’s a heck of a lot more knowledge to search. 

Not surprisingly, disjointed content is one of the top challenges of an RFP process. RFPIO’s Content Library not only simplifies the search but also does much of the work for you. 

RFPIO’s Content Library:

  • Stores marketing approved content in one place – Your company’s single source of truth.
  • Lets you stitch together high-quality content – Browse previous responses to create customized answers.
  • Create content – Once you answer a question, you can store the Q&A pair for future needs. As your company accumulates knowledge or documents, it’s simple to upload it into your Content Library.
  • Format content – Organize and format content however you like. 
  • Automatically answer the majority of questions – With just a few clicks, you can answer up to 80% of the questions on an RFP, regardless of the format. 
  • Encourages regular content audits – Keep your Content Library fresh and up to date with regular audits. RFPIO will remind you when it’s time to review specific content. 

Integrations

When it comes to breaking down silos, RFPIO walks the walk with industry-leading integrations. Users from across your company can access RFPIO through more than two dozen applications you already use, including:

  • CRMs – RFPIO is an ideal solution for all revenue-generating teams, not just response management. Access the Content Library and other RFPIO features through your company’s chosen CRM, including Salesforce, Pipedrive, Dynamics 365, PipelineDeals, and HubSpot.
  • Communication apps – RFPIO enables company-wide collaboration through your existing communication apps, including Slack, Google Hangouts, Jira, and Microsoft Teams.
  • Cloud storage apps – Worldwide, we create 2.5 quintillion bytes of data every single day. Cloud storage enables companies to manage data without accumulating vast technical debt. RFPIO seamlessly integrates with Sharepoint, Box, Dropbox, Google Drive, and OneDrive. 
  • SSO authentication apps – RFPIO works within your company’s security protocols through SSO authentication integrations with Microsoft ADFS, Microsoft Azure, OneLogin, and Okta.
  • Browser extensions – Access RFPIO’s Content Library through RFPIO® LookUp and Chrome.
  • Vendor assessment apps – Securely import directly from third-party platforms using Whistic. 
  • Productivity apps – Work faster using RFPIO with Microsoft Suites and Google Sheets.
  • Sales enablement apps – Revenue-generating employees can access RFPIO through Seismic or Highspot. 

AI assistance

RFP automation slashes time spent answering RFPs. RFPIO goes beyond simple automation. We use machine learning to intelligently assist you through every step of the RFP response process. Leverage RFPIO to:

  • Auto-identify response content – RFPIO’s advanced artificial intelligence automatically identifies response content.
  • Get automated answers – RFPIO’s AI-powered recommendation engine pulls from the Content Library to recommend answers based on previous similar questions.
  • Assign questions to pertinent subject matter experts – With RFPIO, there’s no more trying to figure out the best people to help with your RFP. AI technology identifies relevant and available SMEs.
  • Analyze win-loss opportunities – Not all RFPs are worth a response. Have you won similar bids in the past? Is this one worth it? RFPIO learns from previous wins and losses to help you decide whether to pursue the next one. 

The benefits of RFP response automation

Roughly 80% of a typical RFP consists of questions you’ve answered many, many times. Response automation lets you focus on the questions that matter most, the questions that will help you win the bid, by answering the routine queries with a click of a button. 

The benefits of leveraging RFP automation include: 

  • Streamlined workflow – RFPIO is not just a response management tool; it’s a project management platform. RFPIO uses automation to establish roles and ensure on-time deliverables.
  • Decreased response time – When a workplace tool does most of the work for you, it’s bound to increase productivity and reduce response time.
  • Improved response quality – Automated replies free you to craft winning responses to the essential questions.
  • Centralized content library – Automatically store and catalog responses in a single source of truth. 
  • Improved collaboration – RFPIO’s integrations enable company-wide collaboration.
  • Increased revenue growth – Responding to more of the right RFPs in less time means more opportunities to drive revenue.

Steps for choosing the right RFP management software

Choosing the right RFP management software shouldn’t be taken lightly. There are several factors to consider:

1. Assess your RFP response process

Before you commit to an annual RFP software subscription, schedule a meeting with your entire RFP response team (subject matter experts, executive stakeholders, bid writers, etc.). The goal is to discover gaps and opportunities in your current workflow, then make improvements through RFP automation.

2. Prioritize RFP software features

Now that you know what your RFP response team needs to thrive, it’s time to prioritize RFP software features. Divide features into two columns—”must-have” and “nice-to-have.” If having a holistic view of RFP projects is a top priority, project dashboards are a must-have. If communication is dialed in, then Slack or Microsoft Team integrations are a nice-to-have.

3. Explore RFP software comparison platforms

Third-party validation is a vital part of decision-making for any purchase, including RFP software. Think of G2 Crowd and Capterra as Yelp for software products. Use these RFP software comparison tools to compare and contrast features and check out customer feedback. Seeing use cases in the real RFP response management world will inspire ideas and validate decisions.

4. Make a data-driven value assessment

Have no idea how many hours your team spends on RFP responses? Demystify these costs by tracking everyone’s time. Use our ROI calculator to determine how much you will save on hours and resources with RFP response automation. Armed with data, you’ll rely on stats instead of emotions to make a strong case for additional funds to cover RFP software.

5. Understand the product and the service

Once you have narrowed down RFP software providers, schedule a demo to see the solution in action and meet the team you’re considering working with. Bring your priority features list, along with questions that need to be addressed. Pay special attention to the user experience as the solution should be quick and easy for all RFP contributors to learn.

rfp repsonse software

Important questions to ask RFP software vendors

Adding to your existing tech stack can be a challenging sell for executives and your IT department, so it’s essential to ask the right questions of potential RFP software vendors. 

  • What is the average ROI customers report after using your product? – There’s no surer way to secure executive buy-in than demonstrating your return on investment. ROI will vary from company to company. RFPIO’s proven ROI is as high as 600%. Calculate your ROI here. 
  • How would you describe your training and onboarding process? – You have executive buy-in; what about user buy-in? The onboarding process is vital for training and creating buzz over new software. RFPIO’s onboarding process is incremental, easy to follow, and designed to set you up for success. 
  • How do you manage customer requests and feedback? –Because needs vary from company to company and change from day to day, there’s no such thing as perfect software. RFPIO recognizes the importance of a bespoke solution, which means listening to every customer and addressing their individual needs.
  • What integrations are available? – Toggling between multiple applications is a pain. RFPIO integrates with over two dozen of the most popular business tools.
  • How would your software solve problems x, y, and z? – Is the RFP software going to address your company’s needs? It’s hard to imagine a response management problem RFPIO can’t solve, but if we’re not the right solution for some reason, we will tell you.
  • What are your data import and export capabilities? – If all RFP issuers used the same format, RFP response platforms might not be such a critical tool for response teams. RFPIO imports and exports from Microsoft Word, Excel, and even PDFs. 
  • Do you offer lifetime updates and enhancements? – Technology changes, as do your needs. RFPIO provides regular updates and enhancements.
  • What are your competitive differentiators? – What makes one RFP solution better than others? As mentioned, RFPIO offers more integrations and import/export options than any other RFP response software. We lead the pack in AI-powered automation. Additionally, we have an unprecedented pricing model. Instead of charging per user license, RFPIO charges based on the number of projects going at any given time. 

Automate your RFP process with a management solution that’s right for you

If you’re ready to see how RFP software will help you craft higher-quality responses to more RFPs in less time, schedule a free demo. 

 

Considerations when creating an RFP process

Considerations when creating an RFP process

Selling & Enablement

“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency”.

– Bill Gates

Do you know how you’ll approach the RFP that arrives in your inbox today? What about one that comes next week or next quarter? You might be tempted to say, “Obviously not, because each RFP is different.” If that’s your answer, it might be too late to win those bids. 

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Let me ask a more personal question. Have you received a bill lately? You’re probably nodding right now. How do you plan to pay that bill? If it’s a fixed bill, such as insurance or your mortgage, you might set up automatic payments. If the bill is for something unexpected, say a car repair or vet bill, you might turn to your savings account or a credit card. 

What will happen if you don’t have the resources to pay that bill? 

What I just described are processes. Bill-paying processes ensure that you barely have to blink when paying expected bills and are prepared in the event of something unexpected.

What does that have to do with RFPs? Out of hundreds to thousands of questions in a typical RFP, most are, if not expected, standard. Much as you have systems to pay expected bills, a great RFP response process allows you to respond to those common questions in seconds. 

But what about the rest of an RFP? Certainly, cookie-cutter responses to complex questions aren’t going to win many bids for you. If you don’t plan for the unique parts of an RFP, you will spend more time on it, and there’s a very good chance you’ll lose your bid.

So, what should you consider when creating an RFP process?

What is an RFP process?

A request for proposal (RFP) is part of a broader category called RFx. RFx also includes requests for information (RFI), and requests for quotes (RFQ). It can also apply to other supplier questionnaires, such as security questionnaires and due diligence questionnaires (DDQ). 

An RFP process is a roadmap. It outlines the entire RFP journey, from how it’s received within your organization, whether to reply, who the stakeholders are, who is responsible for each task, when each deliverable is due, how and when to send the response, to how to record and organize the attached question and answer (Q&A) pairs and documents. 

An effective and efficient RFP process decreases response time, improves response quality, and is far more likely to get your responses to the top of the prospects’ shortlists. 

Designing a great RFP process

An effective RFP response process—assisted by industry-leading automation—has several quantitative and qualitative benefits, including:

  • Quantitative:
    • Faster responses – Set your stopwatch! A great RFP response process speeds up your response time.
    • More responses – Faster responses = more time to respond to RFPs you might have set aside. 
    • A higher win rate – The average win rate is about 45%. A great response process can increase that by 15% or more.
    • Significant ROI – See how one RFPIO customer saw a 6x return on investment within just months.
  • Qualitative: 
    • Better teamwork – Great RFP response processes help develop collaboration, even across silos. 
    • A comprehensive and up-to-date company knowledge base – A great RFP process includes knowledge management. Make sure to schedule regular audits.
    • Focus – When team members know what is expected of them, and when, they are far more likely to approach a goal with focus.
    • More opportunities to personalize and customize — Re-invest time saved to give every response a better chance to win.

Considerations when creating an RFP process

One of our most common questions from our potential customers is whether RFPIO integrates with their existing software. Since the platform seamlessly and scalably integrates with more than two dozen popular business applications, the answer is almost invariably “yes.” 

Companies understand the value of business applications, especially when it comes to sales. 91% of companies with more than 10 employees use CRMs in their sales departments, so why do only 16% of companies use RFP software? $11 trillion in annual revenue, and some of the biggest deals, come from RFPs. Shouldn’t RFP response processes be as big a priority as sales processes?

Part of the answer is undoubtedly within companies’ cultures. RFP response processes require expertise from people throughout an organization. Additionally, RFP response often has a haphazard rather than strategic approach. Defining processes before RFPs hit your inbox will help you to determine which RFPs are worth your time and how to focus your efforts. 

Getting buy-in from stakeholders

Unlike a straightforward sales deal, an RFP response requires multiple stakeholders. An RFP process could require buy-in from finance, HR, operations, security, purchasing and procurement, sales, R&D, manufacturing, IT, etc. In other words, stakeholders can come from anywhere in the company, and you will need their cooperation at some point. 

Getting everyone aligned on the process is an essential consideration in creating it. Fortunately, RFPIO can help make the case for you. 63% of salespeople say RFPIO gives time back to them, enabling them to close more deals overall. 

71% of marketing executives say RFPIO’s Content Library saves them time locating company knowledge, and subject matter experts (SMEs) gain back more than ⅓ of each day.

Quantity vs. quality

Is it better to submit more RFPs or focus on improving your responses? In an ideal world, the answer is both, but is that reality? Although both approaches could be suitable for companies, depending on their resources and RFP landscapes, a clearly-defined response process should help with both. 

Beyond question, a response manager should focus on crafting the best responses on the most winnable RFPs. Responses riddled with errors, typos, and incomplete answers are wastes of time. So, in that respect, quality wins out over quantity. 

That said, RFP responses are a numbers game. The more well-written responses you submit, the more revenue you will generate. Given a choice, however, it’s far better to submit a few great responses than many mediocre ones.

Where to focus

When choosing where to allocate your RFP response resources, it’s best to institute a go/no-go evaluation process, which means only responding to RFPs you have a good chance of winning. You may ask about each incoming RFP:

  • Do you know the company sending the RFP? – Do you have an existing relationship with them? Were they referred to you? Your odds of winning a bid are much higher if there was a specific reason they sent the RFP to you.
  • Is yours the right company? – One of the biggest temptations among revenue-generating employees is to say, “Sure, we can do it!” While that might be true, RVP issuers aren’t looking for what you might be able to offer in the future; they’re looking for the here and now, preferably with a track record showing the ability to accomplish exactly what they are asking within their timeline. 
  • Can you meet their budget requirements? RFPs are not the time for guesswork. Consult with the right SMEs to ensure that the price you’re offering is competitive but also accurate. There might be room for some negotiation, but not for lowball bids. Suppose you happen to win a lowball bid. In that case, you risk alienating not just that customer but others in and around their industry, as well as your own company, as costs will undoubtedly escalate beyond the initial bid.
  • Is it an all-around strategic fit? – Do their needs match your organization’s business or product development strategy and vice versa? Is their industry one you know? 
  • Do you have the time? – How much is on your and stakeholders’ plates? Can you answer the RFP on time without affecting other responsibilities?
  • Have you won similar bids in the past? – Your chances of winning a bid go up when you’ve won and successfully fulfilled similar projects, especially from the same issuer.

Who’s on the team?

RFP response teams are as unique as their companies. Some, such as this RFPIO customer, have 2-person response teams. Others are larger, but the vast majority of RFPs require input from people outside the department. SMEs and other stakeholders vary from RFP to RFP, but you should have that all figured out before placing a bid.

Response managers are often known for their near-encyclopedic knowledge of their companies. They might not know every employee, but they know where to turn when they have questions. To ensure goodwill, make sure each stakeholder is aware of their roles and has the capacity to carry theirs out. 

Where is the relevant content?

Office workers report spending more than half of their time searching for information. Imagine how much more productive they would be if every bit of company knowledge existed inside a single, easily accessible, and searchable database. 

RFPIO’s search feature pulls relevant content from docs, spreadsheets, and even PDFs. RFPIO’s Content Library makes it easy to find RFP Q&A pairs, answers to security questionnaires, company history, etc. You can even store documents. 

Once you find the content you’re looking for, you can apply those answers as-is in a click or two or modify them as needed.

What else should an RFP process take into consideration?

Just as most sales departments couldn’t imagine achieving their processes without the help of their trusty CRMs, response teams should include advanced RFP software in establishing their procedures. RFPIO follows an RFP from inception to completion and even beyond. 

Whether you’re starting anew or you have an existing process, RFPIO can help by providing a framework for an optimal RFP process and the tools to get there.

  • Import an RFP from any format – Whether you receive the RFP via a document, spreadsheet, or PDF, RFPIO will capture the information and plug it into an intuitive UX platform, ensuring consistency and simplicity for each stakeholder.
  • Shred the RFP – With RFPIO, you can organize and section RFPs in the best way for your organization.
  • Analyze the project – RFPIO features built-in project management analytics to estimate the project’s time requirements and your likelihood of winning.
  • Answer all the questions you can – Tap into your Content Library to answer up to 80% of an RFP’s questions in seconds. 
  • Engage SMEs – For those questions that require additional input, RFPIO will suggest SMEs based on previous, similar RFP responses and the SMEs’ availability. Collaborate from around the globe with RFPIO’s translation tools and multi-language UI.
  • Track the project – RFPIO’s project management tools track each deliverable to ensure on-time delivery.
  • Submit the proposal – Design your customized branded template to ensure a professional and consistent look.
  • Store your new content – Once you’ve submitted the RFP, store all new content in your RFPIO Content Library for use next time.
  • Rinse & repeat – Time to start the next RFP.

Improve your win rate, organize your RFP response process, save time, and increase revenue using RFPIO. Take a few minutes for a free demo of RFPIO. 

As for Bill Gates, he’s not wrong, but RFPIO goes beyond just magnifying efficiencies. RFPIO helps response teams establish, as well as enhance, efficient processes. His brainchild, Microsoft, agrees. 

 

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