Evidence or Influence Why are suppliers winning our work? Rob Tufekcic Queensland Rail Probity Advisor
Brief
• Context • Identifying buying influences
• Tactical mechanisms • Supplier use of strategies • Risks • Protective measures
Evidence or Influence – Winning our work
Queensland Rail Procurement context Queensland Rail with some 6,500 kilometres of railway track, over 5,800 employees and assets of $6.9 billion, is one of Australia’s largest rail transport providers. Queensland Rail services 216 stations, with a fleet of passenger trains, across its Citytrain network, with more than 50 million passenger trips each year. •
Strategic approach to procurement
•
Focus on achieving value-for-money
•
Whole-of-life-basis and generating benefits for all stakeholders
•
Statutory Authority which relies on public money •
State Procurement Policy, related legislation and internal policies guide our behaviour in procuring goods and services.
•
Reliance on a range of Evidence Based Procurement methods
•
Regardless of the method, the procurement must be demonstrably; fair, transparent, and accountable
Evidence or Influence – Winning our work
‘I am going to get people in your organisation to spy for me, to provide me information and insights into your procurement activity…
they will act as my agent and influence the outcome so I win your tenders.’
Evidence or Influence – Winning our work
Evidence or Influence – Winning our work
25 year Army career, 22 years full time, 3 years Reserves 12 years with Intelligence Corps Manager Intelligence Operations • Intelligence Analysis • Counter-Intelligence • Human Source Operations (Agent Handler)
Probity Advisor Queensland Rail, 3 years Enterprise overview, procurement involvement, investigations • Recognition of tradecraft used by sellers • Review of Miller Heiman Strategic Selling • Identification of the Intelligence gathering mechanism
Evidence or Influence – Winning our work
When people know it’s the wrong thing to do
Evidence or Influence – Winning our work
When people think its ok to play by a different set of rules
Evidence or Influence – Winning our work
If I attend a course, it must be the right thing to do
(https://www.millerheimangroup.com/sales-ready/) Evidence or Influence – Winning our work
Context Evidence Based Procurement
Business Case
Procurement Strategy
Evidence or Influence – Winning our work
Open Tender
Tender Response
Tender Evaluation
Contract Award
The challenge Evidence Based Procurement
Business Case
Procurement Strategy
Open Tender
Tender Response
Evidence Evidence or Influence – Winning our work
Tender Evaluation
Influence Based Selling
Contract Award
Influence
How does it work
‘Blue Sheet’ The Strategy Procurement activity is identified ‘Blue sheet’ Strategy tool is enacted Strategy drives tactics
‘Green Sheet’ The Tactics Green Sheet guides interaction with buyers All interactions are planned Outcomes are recorded and feed into strategy http://help.saleswebserver.net/MillerHeiman/MHblue/ecoaching-title-locatons.jpg Evidence or Influence – Winning our work
Internal Planning mechanism
Miller Heiman Blue Sheet - Strategy Evidence or Influence – Winning our work
Identify the buying influences What is their role What is the level of influence
“If you can’t get to the buying influence you want, you just go above them” Evidence or Influence – Winning our work
Information is collected which informs the supplier of individuals preferences. “we are allocated a person in the buyer organisation and are tasked to collect information from them” “when we know a preference we can tweak the bid towards their outcome” Evidence or Influence – Winning our work
Any information gained is checked to confirm its accuracy
“we’ll use trusted people to find out what the influences position is” Evidence or Influence – Winning our work
Their position is examined and based on their findings additional tasks will be created
“A sales person will tell you whatever you want to hear to make the sale” Evidence or Influence – Winning our work
Influence Based Selling – The buying Influences
• Economic Influence • Technical Influence • User Influence
• Inside Coach/Champion
Evidence or Influence – Winning our work
Economic Influence The person who makes the final approval, who controls the spend. Economic Influence Cabinet
>$ X
Minister
>$ X
Ministers Office Board of Directors
Buyer
>$ X
Company Secretary
>$ X
CEO
ELT
ELT
ELT
SLT
SLT
SLT
SLT
SLT
SLT
SLT
SLT
SLT
Evidence or Influence – Winning our work
ELT
SLT
IBP SLT
SLT
<$ X
Technical and End Users Technical – Can say no, based on requirements User – Will have a long term stake in outcome
Technical
Cabinet
User Minister Ministers Office
Board of Directors CEO
ELT
ELT
SLT
SLT
SLT
SLT
GLT
GLT
Company Secretary
Buyer
ELT
SLT
GLT
GLT
SLT
GLT
GLT
GLT
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
IBP Team
Team
Team
Team
Evidence or Influence – Winning our work
Team
ELT
SLT
SLT
SLT
SLT
SLT
SLT
Technical and End Users Technical – Can say no, based on requirements User – Will have a long term stake in outcome
Technical
Cabinet
User Minister Ministers Office
Board of Directors CEO
ELT
ELT
SLT
SLT
SLT
SLT
GLT
GLT
Company Secretary
Buyer
ELT
SLT
GLT
GLT
SLT
GLT
GLT
GLT
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
Team
IBP Team
Team
Team
Team
Evidence or Influence – Winning our work
Team
ELT
SLT
SLT
SLT
SLT
SLT
SLT
Inside Coach
https://ackbury.files.wordpress.com/2010/04/strategic_selling_primer_and_notes1.pdf
…Gives information that is unique… …provides information you cannot get normally… …Provides insights… …an inside salesperson…is someone in the buying organisation who does some of the selling for you… …Turning your Economic Buying Influence into a coach significantly reduces the risk of the sale being vetoed late in the game…
If there is someone in the account Coaching you, then there is probably someone Coaching your competition as well. Evidence or Influence – Winning our work
Inside Coach
An individual who acts in the interest of an adversary without open declaration of allegiance and attempts to exercise influence covertly, but is not necessarily gathering intelligence or compromising classified material, is known as an agent of influence (https://en.wikipedia.org/wiki/Agent_of_influence) Terry is almost at a stage that he is coaching us, and is already ‘strongly recommending’ the position we should take in some areas. To give some further context, Terry admitted today with a grin that he was once a ‘long time IBMer’. He has stated that ‘IBM is grossly under-represented on this engagement’ and that what the CorpTech program needs is a ‘significant increase of involvement by IBM’. (Queensland Health Payroll System Commission of Inquiry Report, 31 Jul 2013, The Honouralbe Richard N Chesterman AO RFD QC) Evidence or Influence – Winning our work
Influence Based Selling – Collection – Inside Coach
An individual who acts in the interest of an adversary without open declaration of allegiance and attempts to exercise influence covertly, but is not necessarily gathering intelligence or compromising classified material, is known as an agent of influence Espionage is the collection of information by people either in a position of trust for the adversary, or with access to people with such access. The process of recruiting such individuals and supporting their operations is the HUMINT discipline of agent handling. (https://en.wikipedia.org/wiki/Espionage) Evidence or Influence – Winning our work
Item
Time
Discussion topic
4.00pm
Assemble at XXXXXXX Brisbane office XX XXXX Street (XXXX Place) Introducing teams and our strategic /engagement focus
Speaker
XX/XX
How to win
XX/XX
1.
Drivers
Project number Project name Meeting/subject
2. 3.
5.00
Key Client drivers / what does success look like for the client Key Project drivers / what does success look like for the project (these may be the same since the client is essentially the project) o Who is on the review panel – How can we appeal to them, what’s Meeting date 9 November 2016 B37657 there personality type, how do we get them on our side ARTC Inland Rail and Approvals o Anything weTechnical have missed….. Recorded by Consultancy Services o Develop combined list of points to address as part of bid which Total pages Aurecon AECOM Strategy and Engagement 1 cover the above What are current Pain Points – Can we solve any of these. Value adds/smarts – Program, XXXXX, XXXXXX
What’s next Actions – review / summarise
XX/XX
The How - Tactics
Evidence or Influence – Winning our work
The How - Tactics
Evidence or Influence – Winning our work
The How - Tactics
Cover story
Evidence or Influence – Winning our work
Information Requirements
The How – The cover story Information is obtained from our people through interaction Every interaction is planned and recorded • • • • • • • • • • • • • • •
Phone catch-ups Coffee Catch-up Business as usual meetings Contract Management meetings Meetings to demonstrate ‘innovation’ Seminars Trade Shows Site visits Supplier Presentations Changes to capability and capacity Social situations Invitations to sporting events Pipeline planning meetings Industry briefs Relationship development
Evidence or Influence – Winning our work
The How – Getting Information Elicitation is a salespersons tool
Unconscious participant Vs Conscious participant Non-verbal (Behavioural Symptoms Analysis) • • • • • • • • • • • •
Assumed knowledge False assertions Good Listener Leading questions Opposing view Reported facts Macro to Micro Bracketing Extreme stories Silence Show of knowledge Trusted associate
• Volunteer information Evidence or Influence – Winning our work
-You confirm their assumption -You correct the assertion -You waffle while they guide -The answer is in the question -You both argue the point -Its in the open domain -High level, impact on your project -They give extent – you correct -You compete with the seller -You need to fill a silence -They talk through the process -Someone you share all with -Information is given freely
Inward Email Traffic related to a procurement activity 120 100 80 60
40 20 0 Jan
Feb
Mar
Evidence or Influence – Winning our work
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Inward Email Traffic related to a procurement activity 120 100 80 60
40 20 0 Jan
Feb
Mar
Apr
May
Jun
Tender Release
Evidence or Influence – Winning our work
Jul
Aug
Sep
Contract Award
Oct
Nov
Dec
How common place is this in the market
‘Everybody uses this or similar systems’ – Former BDM now at QR ‘Everything you have described is exactly as I was taught’ – Former ICT sales rep now at QR ‘If you don’t have the influence in place, you don’t bid’ – Former sales rep at QR Evidence or Influence – Winning our work
The risks
• Our people • Our outcomes
• Our obligations • Our negotiating power
• Competition • Our reputation
Evidence or Influence – Winning our work
Protecting the process protects our people Existing controls
• Evidence based procurement processes • Information Security policies and procedures • Confidentiality obligations • Identification and management of Conflicts of Interest • Interaction controls during tender processes • Robust Probity and Evaluation Plans
Evidence or Influence – Winning our work
Protecting the process protects our people Additional controls
• Educating our people – General awareness, specific briefs • How the process works/what it will look like • How to recognise supplier elicitation opportunities and techniques • Considerations when interacting with suppliers • Challenging suppliers to focus on evidence • Clearly stating our expectations to suppliers in procurement • Analysis of communication to identify use of strategies • Calling out methods and tactics when identified
Evidence or Influence – Winning our work
• Awareness of activity • Understand how it may be applied to your procurements • Communication of expectations to suppliers • Evidence not influence will win the work • Analysis of behaviour to identify use of the methodology • Challenging the use of the methodology when it is observed
Evidence or Influence – Winning our work
