Twelve tough questions about RFP competitions.

• Author: Gibson, Ann Lee

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In the last five years, requests for proposals (RFPs) for legal services have increased to the point that many law firms are now overwhelmed. Firms continue to add RFP resources to their marketing and business development (M/BD) groups and, in some cases, to take resources away from other important initiatives just so they can to respond to hundreds of RFPs they now receive annually.

In the scurry and exhaustion that follows, good response processes have been forgotten or ignored, even at firms that once had their RFP act together. Chances are, it's time your own firm took a fresh look at how it deals with RFPs. Below are 12 tough questions to ask at your firm. Also below are the answers I would give if these questions were asked of me.

Go/No-go Process

1. What's the biggest mistake law firms make when deciding whether to respond to an RFP?

   Most firms mistakenly leap into response mode the moment any RFP arrives. My law firm clients don't do this reflexively. Instead, they have thoughtful go/no-go processes they always follow. Currently, they're not responding to 25-30 percent of all RFPs they receive. Instead, they use their resources to compete for work that is strategic, will be profitable, matches the firm's capabilities and strengths (compared to competitors') and where the firm has strong prior relationships that make winning a strong possibility.

   Protip: If you have no relationship at all with the RFP issuer, do not respond. The odds are exceedingly low you will ever win work from such a cold prospect.

   Competition Strategy

2. What three things should our firm confirm or learn before designing our response?

   * Learn who the ultimate decision makers are and what they're like. You must know your audience. Knowing their values, styles, preferences and prior hiring decisions will help you present your value proposition in ways and terms they will most appreciate.

   * Understand the specific pressures these decision makers are under regarding this hiring decision. For example, has the legal department set a specific goal for lowering its legal costs? How is the general counsel's compensation tied to the company's legal outcomes and/or legal costs? Will the legal department be changing its in-house labor force and/or technology investments? What new company initiatives must the legal department now support for the first time?

   * Learn who your strongest competitors are and determine their likely value proposition and weaknesses. Ask your allies and coaches inside the company for this information--you'll be surprised how much you'll learn. Your strongest competitors will include the incumbent firms currently doing the most work for the issuer. Ignore, at your peril, firms that have recently joined the company's counsel...