Best Practice RFP Process to Ensure a Successful Outcome
By Nancy Cook, Senior Associate Consultant and
Mitch Razook, President & COO
RLR Management Consulting, Inc.
Going through an RFP (Request For Proposal) process can be painful if you don’t start from the very beginning by properly identifying the scope, the requirements, the required resources and stakeholders involved.
Start with your Goals
Have a clear understanding of why you are issuing an RFP. Is the priority revenue generation, efficiencies, marketing penetration, functionality or something else? Clearly articulate and prioritize your requirements. All of these are great goals, but each one will lead you down a different path and approach. Perhaps you are making a change due to dissatisfaction with your existing vendor. Detail those issues to ensure there won’t be a problem with the next one.
Who are the Stakeholders?
Do you have executive management approval if you decide to convert? If all the stakeholders are not on the same page, you may go through a lot of time and effort for nothing. Ensure all business functions within your institution are aware and involved. Often times we forget about HR, internal audit and other support departments until the last minute.
Do you have the bandwidth, experience and expertise to conduct an RFP and to implement change, a successful conversion may require 6 to 9 months?
You’ll need to have a clear and concise list of must-have requirements. Be sure to align with future objectives, explaining the bank’s future needs should be communicated in terms of future business and IT strategy to vendors. You’ll want to ensure vendor due diligence is performed and ensure you speak to multiple sources regarding your recommended solution.
If you find your financial institution doesn’t have the man power or resources available to guide the RFP process, consider engaging an outside party. RLR has conducted 100’s of RFP’s, don’t hesitate to contact us with any questions at [email protected] or 888-757-7330.