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From Routine to Results: Five steps to RFP Modernisation

In today’s fast-moving world, so many software delivery and implementation projects have evolved to meet the demands of new technologies and changing workforce dynamics, certain practices remain surprisingly stuck in the past. From software development shifting rapidly toward agile methodologies, allowing teams to adapt to evolving needs, to IT infrastructure moving from on-premises data centres to flexible, scalable cloud solutions. Even relatively recent cybersecurity approaches have transformed, moving from traditional firewalls to proactive, AI-driven threat detection systems. Yet, despite these advancements, one critical process in IT procurement remains largely unchanged: the Request for Proposal (RFP).

While some might view the RFP as merely a means to an end, a necessary administrative task to kick a project off, it is in fact much more than that. Essentially it is a powerful gatekeeper that sets the tone and scope for an entire project. So, if the tone and scope of the RFP is rigid and prescriptive it can surely be no surprise when the resulting project follows suit – bound by outdated methods and limited flexibility.

The Paradox of a Risk-Averse Approach 

Traditional RFP processes are designed to be risk-averse, aiming to minimise uncertainty by prescribing specific outputs, detailed steps, and rigid criteria for vendors to follow. The logic is simple: by controlling each aspect of a project, enterprises hope to reduce variability and ensure predictable results. This structure favours consistency and compliance, theoretically reducing the chance of failure by keeping projects within well-defined boundaries.

But there’s a deep irony in this approach. By forcing vendors to stick to outdated practices, overstaff projects, and follow rigid, bureaucratic processes, output-focused RFPs often introduce more risk and cost inefficiencies than they prevent.

Take the length and complexity of many RFPs as an example. By requiring vendors to navigate a 75-page RFP that takes weeks to complete, organisations effectively exclude a whole community of innovative startups that lack the resources to compete with larger, more established firms. These larger vendors, with entire teams dedicated to RFP responses, can absorb the administrative burden—but often at the cost of innovation. Ironically, this risk-averse approach limits the pool of creative solutions, leaving projects reliant on traditional methods and less adaptable technologies.

This cautious, control-heavy approach can actually backfire, adding the risk of outdated solutions, missed opportunities, and a lack of adaptability that hampers true project success.

 

Five Steps to Transform the RFP Process

Rather than just focusing on the limitations of the current RFP process, it’s more productive to explore ways it can be adapted to better support modern IT projects. Here are five steps to transform the RFP into a tool that fosters flexibility, innovation, and success:

  1. Focus on Outcomes, Not Prescriptions:

Traditional RFPs dictate precisely how a project should be carried out, leaving little room for vendors to tailor their approach. By focusing on the desired outcomes rather than specific steps such as “streamline customer onboarding to reduce setup time by 50%” or increase automation to reduce manual data entry by 80%”, organisations can encourage innovative solutions that achieve the goals in the most effective way.

  1. Recognise the Dynamic Nature of Today’s Business Environment:

Build flexibility into the RFP by including clauses for mid-project adjustments or periodic reviews. For example, allow for quarterly check-ins where the vendor can discuss updates or changes in approach based on project developments or emerging technologies. This enables the project to evolve as needs change, without rigid constraints. 

  1. Encourage Vendor Agility and Evolution:

Replace strict, step-by-step requirements with a set of essential criteria and let vendors explain their approach. For instance, ask vendors to outline how they would use agile methods to adapt to potential changes during the project lifecycle. This allows vendors to showcase their ability to respond to real-time challenges, rather than forcing them to follow an outdated methodology. 

  1. Break the Cycle of Rigid Processes:

Establish collaborative workshops during the vendor selection phase. Invite shortlisted vendors to present creative approaches and work together with stakeholders on potential solutions. This shifts the focus from compliance with rigid criteria to exploring innovative, fit-for-purpose strategies, setting the stage for a more adaptable project from the outset.

  1. Empower Middle Management to Support Modernisation:

Provide training and resources for procurement and project managers to understand the benefits of flexible, outcome-focused RFPs. Encourage managers to incorporate evaluation criteria that reward innovation, adaptability, and long-term value. Regularly review and update RFP templates to reflect these goals, ensuring that the process actively supports modernisation rather than defaulting to risk-averse practices.

 

A Two Way Street

That being said, the responsibility for change shouldn’t squarely be on the client. The vendor community also has a role to play in driving this transformation, even though speaking up about outdated RFP practices can feel risky. Advocating for a more flexible, outcome-focused approach might put vendors in a tough position— let’s face it, challenging established norms could mean losing out on certain projects.

But if no one speaks up, the cycle of rigid requirements and missed opportunities will keep going. Vendors have a unique opportunity here; by encouraging more open and innovative RFP processes, they can help shift the focus from routine to results. It’s a bold move, but one that could turn the RFP from a box-checking exercise into a genuine starting point for creativity and value. Taking this risk might not be easy, but it’s necessary if we want real change in the industry.

After all, as the adage goes - the most dangerous phrase in business is, ‘That’s the way we’ve always done it’.

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This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.

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