Requests for Proposal are outdated, yet 95% of companies still rely on this process to meet new vendors. Though woefully unsuited for modern business operations and the demand for fast solutions, many businesses are at a loss for a better alternative.
Project management professionals say that among their strategic initiatives only 60% met the project goals, 42% failed to recoup the allotted project budget, and 28% are deemed outright failures. Traditional RFPs ignore the innovation of startups, despite their creative solutions, by requiring bidders to specify how long they have been in business. Businesses below the threshold are often disqualified immediately, rewarding the longevity of a business rather than on merit. Pricing is prioritized over scope, and the RFP reinforces this standard by discouraging users from considering high cost options and opting to choose lower priced vendors, often at the detriment to the project. The alternative is a process known as POV, or Proof of Value. Compounding on the once useful practice of RFP, Proof of Value works by ensuring the highest value projects are done correctly and for the right price. Assessing risks, predicting success, and removing the arbitrary factors of RFPs, POV minimizes effort required to complete a project before it even begins.
Take a look at this infographic for more on the state of RFPs in modern business, how it slows success, and what updated solutions businesses can develop to reach new vendors and complete projects.