A fairer procurement process for e-learning content: 30 recommendations

Adopt this list to make the procurement process pain-free

Poor procurement can be the root cause of disaster in many projects. A dodgy start will ensure a dodgy conclusion. The trick is to get things right from the start.

With over 25 years in the e-learning industry, I’ve seen a lot of good and bad procurement. I have seen procurement processes where the total cost of procurement to the supplier companies was greater than the total cost of the project. I’ve seen major organisations procure, at great cost to a range of suppliers, and then decide not to proceed with the project. I’ve seen £2 million projects given to companies too small to cope, resulting in the disastrous collapse of the project. I’ve seen procurement documents that give no more than a mere hint at what the client really wants, and I’ve seen some that require ‘war and peace’ length responses. I’ve been involved in electronic auctions that strip away any sensible approach to quality and competence, and I’ve seen false procurement, where there was never any prospect of any, but one, of the suppliers winning.

On the other hand I’ve seen fairness, respect and professionalism, resulting in fruitful partnerships that go on for years. When done well, procurement gets people in a position to start a project on a high, and those who have lost out should feel that it was worth the effort and the process was fair.

With a quarter century of tender responses under my belt, I think these 30 recommendations will produce a good, fair procurement for organisations of any size:

1. Use a two-year supplier list

If you have long terms procurement goals, go for a two-year approved supplier list, but make sure you have a range of companies to cope with innovation. Choosing on price alone is a mistake. You should also consider real capabilities and have a range of options. Financial stability is also important. I have seen a number of organisations stung on unexpected liquidations (ask for published accounts and get someone who knows how to read a balance sheet and cash flow projections to make a judgement). This means choosing on competence and not just price.

2. Four maximum in final pitch

Ask a maximum of four companies to present full proposals and physically pitch. This is a sensible limit as it focuses the mind of the procurers and doesn’t waste huge sums on the process of procurement. It keeps the odds at one in four for the suppliers, which most would see as reasonable. Any more and some will be less willing to put their all into the pitch.

3. Secure project and budget first

Don’t ask for proposals or tenders unless you have a secured budget and the project is assured. It is soul destroying for companies to write proposals, do demos and pitch, only to discover that things were not as solid as they imagined. This happens too much in our industry and everyone loses.

4. Know your RFPs from your RFQs

Distinguish between Requests for Information (RFI), Requests for Quotations (RFQ), Requests for Proposals (RFP) and Requests for Tender (RFT). These should be clear enough – they often are not. You get what you ask for, so take care in asking for the things that really matter.

5. Total cost to vendors less than 10% of project

Make sure total cost of procurement to suppliers (in total) is less than 10% of the project cost. Even this is high but it’s reasonable to set an upper ceiling. If buyers continue to abuse sellers, too many go out of business and nobody wins.

6. Total cost to procurers less than 5% of the project cost

Make sure total cost of procurement to buyer is less than 5% of the project cost. If you find you have a team of ten, reading dozens of proposals and attending lots of presentations, think again. Keep the team, process and number of people pitching to a reasonable number.

7. State target audience

Some information on the size, gender, age, educational background, whether they’re native English speakers, IT literacy and so on, is always useful. A portrait of a typical user is one way of getting this across.

8. State learning requirements clearly

This is not easy but good projects have clear specifications, even when the aim is to be creative. Have a clear set of written requirements, of possible high-end learning objectives. If there is an existing classroom course, provide as much detail on the length, depth and objectives of the course.

9. Type of e-learning

Do you want simple electronic resources, standard modular ‘explain and test’ e-learning, scenario-driven learning, simulations, games? Alternatively, leave this to the suppliers to decide.

10. Media mix

Do you want graphics to stick strictly to an existing corporate style (palette, branding etc) or do you want something that is a little juicier, even radical. Do you want a realistic, photographic approach or a more graphic treatment? Any views on fonts? Do you want audio – yes or no? If yes, be careful. Don’t think you have to slab audio over everything and simply voice what’s already on the screen as text. Steer clear of sound effects and background music, unless they have a specific learning purpose. [LINE will be will be producing a best practice guide for audio inclusion in the next newsletter] Do you want video – yes or no? If yes, remember that drama can be VERY expensive, talking heads, whether experts or not is cheaper. Be clear on the quality and type of video required.

11. Length of course/programme

How long do you expect the user to need to complete the course or programme? Remember that many courses are overlong and therefore suffer from cognitive overload. A reasonable rule of thumb is to take your classroom delivery time and half it. Alternatively, give the supplier details of the course and ask them to come up with a user time.

12. Timetable for project

State expected start date and delivery date and be fair in saying that, if the start date slips, so does the delivery date. Often procurers will state a deliver date then dally on the decision, squeezing the total time, but want the supplier to stick to the original delivery date. Also, state whether the project go-live date is flexible and whether you would consider the supplier’s development recommendations. If there is some flexibility, ask the suppliers to suggest a delivery date based upon your specifications. That way you know the suppliers are not compromising on the design solution or development to meet a delivery deadline.

13. Procurer’s role and resources

You should state who will run the project, along with Subject Matter Experts (SMEs) and your expectations in terms of deliverables and decisions. Also ask for clear indications on iterations and time for approval on documents. If you, as a procurer, know that you have a team of experts, lawyers, SMEs or whatever, who will take a week to read and comment, then say so up front.

14. Supplier’s team

Ask for details of the team structure, especially producer/project management role, and ask for the name of the project manager.

15. Be clear on delivery hardware

Specify the minimum hardware specification for an end user kit and be clear as to whether it includes Mobile of any kind. Does the kit have a sound card and if so, speakers and/or headphones (essential for audio)?

16. Be clear on delivery software

What operating systems, plug-ins and other pieces of software do you have on your standard delivery hardware. Some IT departments lock-down software, restricting what can be used.

17. Be clear on the delivery media

Specify up front if the programme will need to be delivered via CD ROM. If the programme is for both an LMS and CD ROM delivery, the supplier will more than likely need to produce two versions of the same course.

18. Be clear on management software

Are you using an LMS, and do you use SCORM? If so what version of SCORM? If you don’t know what SCORM is, ask your suppliers.

19. Be clear on your bandwidth limitations

Give a clear indication of what bandwidth and/or network limitations you have. Some programmes will have considerable delays for users over low bandwidth networks.

20. Be clear on need for language versions

If you require, even later, National language versions, then state this clearly, as it means avoiding culturally specific images, metaphors, as well as coping with more screen space for languages such as German and Spanish.

21. Be clear on demos

Don’t ask for demos/prototypes if total project cost is less than 40k. A frequent request is for the company to develop a section of the course as part of the pitch. OK, that’s fine, but if I go into a bank for a loan, I don’t ask for a free fiver, just to see what the product’s like. Demos are not cheap to develop. A demo may cost several thousand to produce; add this to the overall management of the pitch, proposal writing and presentation costs and you suddenly find that you’ve eaten away a considerable chunk of the total budget – between 3-8k. This is unfair. If you want a demo, include it in the overall pricing. If you do require a demo, make it clear what you expect. Don’t ask for a complete module. This is all about indicative quality, not quantity.

22. Communications

Set expectations on project reports (weekly, fortnightly, monthly) explain what you expect (progress against set plan, issues list, risks). It is also useful to state how frequent face-to-face meetings should be, along with preferred methods of communication (email, Skype etc).

23. Risks

It is always good to establish the risks at the start of the project and be open about them changing as the project develops. Ask the supplier what they think the top three risks in the project are likely to be. Openness on both sides will help in delivery of the project.

24. Be fair on penalty clauses

There must be a quid pro quo approach where both sides are held responsible for delays, quality issues and so on, according to actual causes.

25. Be clear on expenses

Are expenses included, or not. If so, at what rate? Most suppliers would like to see expenses charged as extras on second class travel.

26. Supplementary information

Simply state what you require. For example: environmental policy, diversity, social responsibility etc.

27. Be communicative

Keep an open communication channel with suppliers – they may have some excellent suggestions on improving your procurement process.

28. Keep to timetable

Keep the process as short, in time, as possible, but be reasonable. It takes time to write proposals and build demos, so state a timetable and stick to it. On the whole, unfortunately, this doesn’t happen, which leads to decisions on procurement dragging on for weeks, if not months, leaving suppliers with planning nightmares. Don’t lose momentum. Treat suppliers with respect, as partners. Help them and they’ll help you.

29. Decision-making

Good procurers make it clear how the winning supplier will be chosen. Will they be marked against a checklist or will it be a more qualitative process. It’s only fair that the supplier has some idea on how they will be judged.

30. Explain your decision

Tell suppliers why they didn’t get the project. Be honest – even if came down to two suppliers and you liked one’s presentation over the other. The suppliers really appreciate the feedback and give better responses next time round.

Procurement is now a strategic role in large organisations, with a drift towards partnership procurement. Supplier Relationship Management (SRM) is becoming more common as is more adventurous outsourcing and low cost country sourcing. But the devil is in the decision-making detail. It’s simply a matter of being organised, reasonable, fair and communicative.

By Donald Clark

LINE_breifing_guidelines
Here you will find a section by section template for a project brief, by Andrew Joly, that you may find useful.