When to use BMP
Requests for Tender, Proposals and Tender Reviews
Bids, Proposals and Tenders: Its all about the costs.
How do you develop the costs?
- Do you use Vendor’s costs – how do you know their costs are correct?
- They may under-price the job, compromising the project: finding additional funds, or accepting a lower standard.
- They may overprice the job – taking your money.
- Do you use your past project costs? Have you just joined the organisation and imported costs from your last employer? No two jobs are the same, as we all know, so why would any previous costs be applicable to the current project?
- Do you using an estimator programme? We all know they are guessed values plus or minus a random percentage. They use old data and the data description would hardly ever be applicable to your project.
- Do you “estimate” – how you would describe an estimate? We ask this question in all our workshops. We get lots of differing descriptions, but no one ever describes an estimate as the dictionary definition. The Merriam Webster dictionary defines estimate as:
- to judge tentatively or approximately the value, worth, or significance of, or
- to determine roughly the size, extent, or nature of, or
- to produce a statement of the approximate cost of.
- Don’t we all want to do better than this? So, you need to talk with BMP, so we can detail how our system works via “Baseline and Best Practice Costs”.
Independent Peer Reviews of your Proposals - Budgets - Tenders - Operations.
In our reviews we have examined and reported on:
- Qualitative risk assessment processes and outcomes
- Quantitative risk analyses across a range of topics, including project costs and schedules, vendor risk assessments and business case calculations
- Risk management frameworks, guidelines and related documents.
We have also developed guidance for independent peer review teams, to help set priorities and allocate limited due diligence resources more effectively.
Re-engineering, reviews of costs-processes and procedures.
To maintain profitability and a competitive advantage in a challenging and uncertain marketplace, many leading companies are turning to business process re-engineering.
When executed well, using the BMP process, re-engineering initiatives can result in more efficient and effective operations, with an improved bottom line and balance sheet.
Several factors contribute to ensuring the success of a business process re-engineering program:
- Visible, sustained support from executive leadership and commitment to the business process re-engineering project.
- A strong business case based on data that aligns the business process re-engineering effort with strategic goals and defines clear, measurable objectives.
- Use of proven business process re-engineering (BMP) methodologies that have solid grounding in real-world results – not just in theory.
- Clear communication within the organisation, including documentation, which conveys the goals of the business process re-engineering initiative together with the roles and responsibilities of the participants.
- An end-to-end perspective that takes into account the entire process, and involves multiple parts of a company that may play roles in elements of its execution.