We often think of creating a bidding process as something that will help with current project bids. Though that’s clearly an important benefit, the primary benefit comes over time when we have a history of bids to reference that allows us to see our patterns of successes and errors, so that we can adjust future bids for greater accuracy and profitability. The best project management systems, for current and future uses, track each of the critical tasks for a new project. By creating a project that includes every task and all dependencies (one task must be completed before another task can start), we can schedule each task, move dependent tasks if a previous task is delayed, and calculate costs for delays or bonuses for finishing ahead of schedule.

TAKEAWAY: Planning in advance, with the correct amount of detail, guarantees greater profitability.

As a business strategist who’s also a certified project manager, here are my top ways to create a successful bid and manage a project:

1. Business practice
     a. Record as many projects as possible
     b. Keep detailed and accurate records

2. Creating a bid
      a. Get accurate business requirements
      b. Get your bid team together to create an accurate list of tasks to complete the project
     c. Record the cost for each task
     d. Create task groups, where appropriate
     e. Negotiate for on-time bonuses
     f. Negotiate to remove time slippage penalties
     g. Include the profitability based on value added

3. Project management

     a. Create a project plan with accurate dependencies

     b. Assign each task to a person or team

     c. Keep track of time worked by requiring daily or weekly time recording

     d. Review progress often, both financially and operationally

     e. Update the project plan often for accuracy, with an eye to removing dependencies

     f. Create incentives for workers to meet deadlines

     g. Understand present profitability

TAKEAWAY: Strong project and cash management gives us correct opportunities to reward workers as they create additional value (finishing work early, doing demonstrably better work or finding a better approach) while ensuring that the project’s profitability remains solid.

Project management is clearly an important part of making sure profitability is as great as possible for a company, but cash management within the bid makes profitability possible. If we have done our project
management work correctly, we will know the profitability of each completed task. We can also know who our key workers are on the project, make sure that their efforts are properly rewarded, and we may have the additional opportunity to recognize top people that can serve as leads, and mentors, to bring up the overall productivity now and in the future.

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TAKEAWAY: Don’t have people standing around getting paid while bonuses slip and penalties loom.