In this article, we will start our volume of in-depth reflections. We'll begin with basic information before diving into your proposal. It's crucial to write a quality proposal before engaging others, as you'll get only one chance to make a positive first impression.
Keep in mind that I've suggested making your proposal an MVP (Minimum Viable Product). This means you don't need to know everything from the start. Even better would be to create a framework with intentional spaces that others can help fill. This approach gives them a sense of ownership while providing you with more accurate data.
So what should your proposal include in this MVP state? I'll use a well-known and excellent sales proposal as our model. The concept isn't much different. Let's explore what makes a compelling sales proposal and how you can apply these principles to your own work.
Problem statement, solution idea, recipients of the solution, benefits they will get, and ROI of the proposed solution after implementation. I'll also reference what we covered in the previous article—a step-by-step implementation plan, required engagement levels, clear RACI+F matrix, and costs. But as you've seen, and I've mentioned before, we needed to uncover this information through our process. Now, let's focus on the basics.
Please keep in mind, before we tackle each chapter, that an effective proposal must be concise—no one has time to read lengthy documents. Your proposal should be direct and to the point. Aim for 5-6 slides or slideuments pages. Most importantly, you need a compelling explanation of why this proposal deserves implementation.
Let's start, then look a bit deeper for each part. First is our problem statement. In this section, we need to clearly describe the problem we've identified. We should explain:
What kind of problem it is
Who is affected by it
How it impacts our organization as a whole
We should also include our personal experience with this problem to provide better context. If the problem doesn't directly affect us, we'll need to find a second recommender who has firsthand experience with the issue.
The second part is your solution to the problem. This is a sensitive area, especially when beginning the process. Provide multiple alternatives, particularly for aspects of the proposal that might create controversy. Your solution description should focus on merit rather than personal preferences. Instead of writing about feelings or desires, concentrate on clear, technical solutions that examine the problem from various angles. Demonstrate your understanding of the different perspectives involved and how your proposed solution will impact each one. Later in the process, you'll work with stakeholders to determine which option best serves the company's needs and which aspects deserve priority.
The next phase is to determine who will benefit from your solution. It's best to describe direct beneficiaries, indirect beneficiaries, and your company.
Direct beneficiaries should primarily be your company's clients. Even when suggesting internal changes, consider how these will improve the client experience. For example, infrastructure improvements can impact clients by making your software run more smoothly. Similarly, enhancements to your CI/CD pipeline can deliver requested features faster. Always think about your clients first.
Indirect beneficiaries typically exist within your organization. For instance, a new CRM might offer clients more flexibility in accessing your offerings or reduce the time needed to sign new contracts. Internally, your Sales team benefits as their work becomes easier and more efficient.
The last group of beneficiaries is always your company and C-suite executives. They primarily receive benefits in financial terms - reduced costs when signing contracts, lower expenses related to employee turnover, and similar savings. When preparing your proposal, be sure to include them and carefully consider their interests and priorities. This strategic inclusion will strengthen your case and align your proposal with organizational goals.
Okay, last but possibly most significant is the benefits they will get and ROI. You need to be strong here. Decision-makers need easy-to-accept numbers and straightforward choices. You have to show them why it's a no-brainer to make this decision.
Don't forget to show metrics that are relevant to them specifically. Here's a small anecdote - I'm working on a project to optimize IT infrastructure costs for a client by more than 40%. During our meeting, he told me, "Marcin - IT infrastructure is less than 1% of our costs - I don't need to optimize it anyway. We have more serious problems." Can you imagine? I found a way to save hundreds of thousands of dollars, and he dismissed it as unimportant.
I stepped back and thought for months about how to approach such proposals differently. As I met with various members of the client company later on, I realized something crucial - the same proposal can offer different benefits to different stakeholders. What seems irrelevant to one decision-maker might be accurately what another is desperately searching for.
I found that the cost of IT infrastructure itself isn't the problem. The real issue is stability. A Company spends significant money provisioning massive machines when performance requests spike. However, this process is slow and inefficient, with these machines often remaining in place long after they're no longer needed. While this generates costs, the expenses themselves aren't the primary concern. The critical problem is the time gap between identifying spikes and when the updated infrastructure actually covers those spikes. In my case, a single solution addressed both issues. However, using the right benefits definition and understanding the solution properly are separate matters entirely.
When calculating ROI, you need to estimate both costs and potential returns with careful precision. This means diving deep into the numbers and considering all variables that might affect your investment outcome. Don't just look at the obvious expenses—consider hidden costs like implementation time, training requirements, and potential system downtime during transitions. Similarly, when projecting returns, be thorough in identifying both direct financial benefits and indirect advantages such as improved efficiency, reduced error rates, and enhanced customer satisfaction that ultimately translate to financial gains.
With the appropriate ROI figures presented clearly and backed by solid data, your decision-maker will eagerly approve the investment. Most executives respond positively to well-researched financial projections that demonstrate thoughtful analysis and realistic expectations. Remember to frame your ROI presentation in terms that align with your organization's strategic priorities and financial language. Remember to include the Financial department in your proposal development. They possess an enormous knowledge base that can provide you with key numerical data essential for this project.
I'll cover more about the financial aspects later in this series, including advanced calculation methods, sensitivity analysis techniques, and effective ways to present complex financial data to different stakeholders across your organization. We'll also explore how to track actual ROI post-implementation to build credibility for future proposals.
At this initial stage, you won't have many details - that's expected. In subsequent phases, you'll bring in other stakeholders who will help provide the necessary information.
Remember, this is just the basic proposal document. You'll fill in the specifics during the next steps of the process. For now, your primary goal is to create something compelling enough to encourage others to join the proposal development effort. That's all you need to accomplish!
I hope you enjoyed reading today's article. If you have experience with similar proposals, please share your thoughts in the comments.
