Once upon a time, there was a cultural institution in a major metropolitan city. This institution had everything; robust daily attendance, a lovely café, beautiful event spaces, international recognition, phenomenal collections and a major expansion on the horizon that included a full-service restaurant! It seemed that nothing could go wrong. Until one day, it was decided that the food, beverage and retail merchandise program needed a change and that an RFP was necessary. The institution felt that they had the internal resources to manage the process on their own; after all, how hard could it be? Plus, it was a great opportunity to offer their employees a new challenge…or so they thought.
It seemed simple at first, put together a document that talks about the institution, go out to a couple of operators and let them submit a proposal. In a slow but creeping fashion, the eager employees that managed the event and retail operations started to feel overwhelmed and unsure of what details needed to be included in the RFP. The development of the document started to consume their time and take their attention away from their day-to-day work. Finally, the document was completed to the best of their abilities. Operators started coming back with question after question, haunting their inboxes with clarifications about equipment, investment, scheduling conflicts and concerns about the validity of the institution’s goals and expectations.
Leadership was not aligned and could not guide the employees on how best to respond to the frustrated operators. One by one, operators started to disappear. Board members could not understand why operators were vanishing into the night. Suddenly, the institution that was poised for success was desperate for just one proposal. In the end, they did receive one proposal, but it offered minimal investment and bleak returns. The institution was now in a state of shock and despair. Where did things go wrong and what could they do to fix it?
Leadership of the institution reached out to peer organizations for guidance. Their responses confirmed that self-managed RFP processes are a risky endeavor. A failed RFP can poison the well and diminish interest in subsequent processes, but a qualified management advisory consultant can “work their magic” to bring bidders back to life. A cautionary Halloween tale for all those considering going it alone.
Happy Halloween!
The above is based on a fictional institution, however the situation described is in fact a true story.