The "Thud Factor"

I just returned from San Diego where I co-instructed a CoreNet MCR course in Strategic Sourcing. The best part of teaching in CoreNet’s executive development program is the opportunity to learn from students during the program. I always return home, fair bursting with new ideas and a fresh perspective on changes in the industry. This time, it was interesting to learn that, despite the merger activity in the real estate service provider industry, the RFP process still ranks up there as a major irritant for the corporate real estate client (end users) as well as the service provider.

I wanted to take a look at how far we’ve come since a column I wrote for GlobeStreet.com in October, 2004. In that article, titled, “Looking For a Few Good RFPs”, I said that a good RFP must have a clearly defined scope of services, roll out under a realistic schedule, should not be procurement-led, must allow an apples to apples comparison, and should narrow the list to, ideally, two providers.

I’m not surprised to be here four years later and the issues that loomed large back then still cause angst today. So what happened, or didn’t happen, since 2004? Almost all of the San Diego class attendees, representing both service providers and end users, agreed that the RFP process is still a nightmare. From the service provider standpoint, I think the problem lies in trying to use an RFP response as a surrogate to a relationship. Think of it this way, if you have just one chance to impress someone, you can go about it two ways: you can be confident, professional, and attuned to the other individual, or you can be loud, flashy and all about yourself. End users participating in our class resoundingly said service providers are still focused heavily on themselves.