Scott Simmonds - Insurance Newsletter

Helping Insurance Experts Build Great Businesses
www.ICMentor.com

April, 2007

Someone Asked Me About Requests for Proposals...

I don't usually participate in a Request For Proposals (RFP) process for insurance consulting service. I try to change the rules.

RFPs are usually put out and administered by a relatively low level functionary. Rarely is it the economic buyer that runs the process. Those in my mentor program know my feelings about meeting with the economic buyer (EB) before providing a proposal.

For the rest of you... Never provide a proposal before you have met the EB. The proposal is a confirmation with the economic buyer of the direction and agreements made in a meeting (or phone conversation). You can't confirm what you haven't discussed!

Here is my approach to an Insurance Consulting RFP:

(Phone Conversation) "Thanks for including me in your process. Who besides yourself will be evaluating the consultants?" (I push for the name of the EB, asking questions and probing.)

"Before I can provide a proposal, I ethically must meet with Ms. EB. What's the best way to set this up?"

The response is usually something like, "We are not doing that at this point. Send your response and we will contact you."

I reply, "That's why you need me." (Credit to Alan Weiss for this great phrase.)

"Huh?" is their only possible response.

"Most RFP requests are focused on process. Everyone who sends you a response to your RFP will tell you about their process. Are you looking for process or outcome?

Sometimes I have to explain the difference. Usually the coordinator gets where I'm going. About half the time we end up setting a meeting up that includes the EB.

Sometimes they persist and refuse to put me in touch with the EB. I politely hang up, then I call the EB directly. I have nothing to lose. The functionary that is acting as a gate keeper is going through a task list to his or her objective of getting responses. As I can't give them a proposal I would have to answer their RFP questions. I can guarantee that my responses will not meet the needs of a functionary. If I fill out the RFP I have a 20% chance of winning. Not good odds.

When I talk with the EB I have a 50/50 chance of getting a meeting. My objective is to differentiate myself in the EB's mind. I want to either get him to scrap the RFP process or compare my conversation with the responses that most consultants will provide.

The focus of my conversation with the EB is on process versus outcome. I repeatedly ask about outcomes and value that will be realized at the end of the project. Not the RFP, the project. I work with the EB as an equal, a peer. Other consultants will appear to be making a sales presentation to functionaries who will relay to the EB. I will be asking questions and probing for ways I can improve the client's situation, working directly with the EB.

The above moves me to a project about 30% of the time. However, it requires little investment in time. Certainly saves the wasted time in filling out RFPs.

To the insurance agents in the room: The above is geared to the RFP for consultants. An agent's response to an RFP is quite different. This is especially true if a consultant is involved. An insurance buyer who runs an RFP looking for agents probably goes to ten or fifteen different agents because he has no idea whom to include. A consultant narrows the field considerably.

Agents, you still have to decide and filter the RFP process for those times when you are just another vendor. A key is to move yourself to the role of peer with the economic buyer.

Referral Network - I'm building an online listing of insurance consultants. This may grow into a referral network and directory. I need to know who is out there! If you're interested in being a part of a directory, please complete the form. There is no cost or fee.

Consultant Mentor Program - Designed to help you build your business faster, with less hassle, and fewer false starts. Grow your current practice or gain the edge in your startup. The object is for you to make your business the best it can be - faster and more profitably. Visit my informational page at Consultant Mentor Program. Check out my Insurance Consultant's Handbook too.

Insurance Agent Mentor Program - Is your insurance career as successful as it can be? Is your book of business growing as fast as you would like? Is your retention as strong as others in your agency? I'm glad to talk about how we might be able to work together to build your book of business. Visit my informational page at Insurance Agent Mentor Program.

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Scott Simmonds, CPCU, ARM
Insurance Consulting
Phone 207-284-0085
Fax 802-992-4027
Scott@ScottSimmonds.com
www.ScottSimmonds.com

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