The reality is — many RFPs fail even before they start.
Despite the best of intentions, many buyers inadvertently sabotage the effort through a flawed process. Common issues include lack of a well defined framework, unwillingness to provide data, over participation, lack of sufficient time, poorly designed questions, and/or an overemphasis on price. The buyer is quickly overwhelmed with slick, glossy responses and lacks a scorecard to differentiate between them. Oral presentations are one-sided mind-numbingly repetitive, and they over emphasize capabilities and resources. Ultimately, a “winner” is selected, but there is a lack of clarity around what is supposed to change or how that broker will be measured. To add insult to injury, in many cases, the presentation team “experts” disappear, never to be seen again.
Many risk managers are now evaluating whether they have the right partner and thinking about conducting an RFP. While this may make sense, clients should think carefully about both the process and their objectives.