Proposals: Part I The Proposal Document

Over the course of the past two decades, Canadian lawyers have been pushed by their markets toward an increasing use of formal proposals as a vehicle for marketing their services. For certain kinds of work-typically, predictable work of significant volume-the use of the request for proposals (RFP) approach sets up conditions that make life easier for those charged with the responsibility for selecting outside counsel. The RFP process facilitates the evaluation of candidate law firms, it helps decision makers draw comparisons between competing firms, and it allows the client to more easily and clearly dictate the terms on which it will engage the successful bidder. Accordingly, it is not surprising that as a method of selecting outside counsel, it is gaining popularity and momentum. It is used both in the selection of law firms to act on highly specific projects or matters and, increasingly, to select law firms to provide a full range of legal services over an extended period of time.

This article is the first of a two-part series on proposals. It covers stage one of the process-the preparation of the written document. Part two of the series, on preparing for the proposal presentation, will appear in next month's issue of Lexpert.

Preparing the Proposal Document
As clients are becoming increasingly more sophisticated, demanding and fee sensitive, the RFP is often employed by businesses interested in streamlining their use of outside counsel and in improving working relationships with those firms that they ultimately select.

About four years ago, Petro-Canada put out an RFP for their Calgary work. Alf Peneycad, Vice President and General Counsel with Petro-Canada in Calgary, explains why: "We were running into problems, including conflicts of interest and firms that were not loyal to us. We were constantly paying for the learning curve, constantly paying to get our lawyers up to speed. We wanted to diminish the number of law firms we were using. We used an RFP to find one or two to devote all our work to, and to provide us with some benefits in return."

The rules of effective proposal writing are few and simple. So simple that they could be called obvious, and so obvious that they are often overlooked.

Rule 1: Make certain that you know what the client wants. Seymour Trachimovsky, General Counsel with Du Pont Canada Inc., says "the most essential component is that the law firm should be listening to what the requirements of the company are." According to Trachimovsky, firms that emerge as winners in the process are those that clearly demonstrate that they understand exactly what the client is looking for, and prepare a document that fully and directly addresses those requirements.

While some RFPs provide lists of required information and define evaluation and selection criteria, many don't. In that case, Trachimovsky recommends that interested firms get proactive. "If they don't give you the list, then ask for one. That's very important. Ask the company that you're dealing with just what they're after."

Rule 2: Go the extra mile and be very specific about how the firm will add value. In addition to covering the substantive aspects of the legal services you will provide, show them that you are flexible, and that you are willing to do whatever it takes to fully address their needs, to help them in meaningful and creative ways, to provide ideas and to save them money. This is where the concept of "partnering" comes in. The client is hoping to find some extra value, something useful that you are willing to provide in exchange for their work and their commitment to your firm.

Rule 3: Be direct and to the point. This is a marketing document, not a legal document. Go for impact, not word count. If it's not meaningful or relevant, don't say it.

Rule 4: Differentiate yourself in tangible ways. Your proposal provides you with an opportunity to differentiate yourself from your competition. Be creative, and be prepared to take risks.

Submitting a document that includes all of the required substantive information, addresses the basic service points, and goes no further may be enough to keep you in the running, but it will probably not be enough to win you a place on the short list. A proposal that stops there may look a lot like the ones your competitors are submitting. As Petro-Canada's Peneycad points out, "somehow you have to carve yourself out of the pack."

The firm that ultimately won the bid for Petro-Canada's work was one that wasn't afraid to take a risk in order to get noticed. The team of lawyers named in the proposal document shed their suits and donned Petro-Canada uniforms to pose for a group photo taken in front of gasoline pumps at a local Petro-Canada station. The photo, designed to illustrate the group's interest in being part of the Petro-Canada team, made the cover of their proposal document. According to Peneycad, "they took a risk, and it worked. I loved it."

Peneycad acknowledges that not everyone would have reacted the way he did, however, he felt that the photo provided tangible evidence that the firm was what it claimed to be: innovative, creative and prepared to go the extra mile. While many of the firms competing for Petro-Canada's work made similar claims, the winning firm turned out to be the one that did something more -it was the firm that made him believe it.

---

Donna C. Wannop, LL.B., M.B.A., is a specialist in law firm marketing. Based in Toronto, she is President of Wannop & Associates Inc. and provides marketing consulting services to law firms across Canada.