Proposal Guidelines

Resist the temptation to offer a potential client more than what they need or ask for. In the long-term, Gradient will secure more business by excelling at what our clients demand of us than by jeopardizing a relationship by over-selling.

1. Regardless of the size or formality of a new business proposal, try to ask as many questions as possible. This is helpful, of course, to inform an initial methodology but also to impress upon the client that Gradient is genuine in its desire to devise the right type of project for their needs. Moreover, it opens an opportunity to ingratiate ourselves at an early stage and help a client think through their own needs. It’s a win-win.

   • Keep a record of all conversations – either by taking calls with another team member or follow-up in writing with a client.
   • Capture the client’s primary motivator for the engagement. Is it speed above all else? What are the mission critical questions to be answered? And how will these answers add value to our client?

2. Brainstorm with a colleague to sketch out an initial approach that addresses all of the client’s needs.

   • Apart from drawing upon our core capabilities, consider the pros and cons of utilizing new methods, technologies, and/or partners. The standard off-the-shelf product may not be right for every client.

3. Exert some effort into preparing an analysis plan that contains, at a minimum:

   • Data sources: Client-provided, commissioned survey data, publicly available data, web-scraped
   • Analysis plan: Is a data audit required first? What manipulations will be conducted? Can the analysis be conducted iteratively? Are there set sequences to conduct the analysis?

4. Establish feasible yet flexible expectations on timing and deliverable formats. In the spirit if Principle 2 (do more with less), it is Gradient’s responsibility to establish expectations on the timing and format of deliverables. Be forthright on the time required to design a project and build this into the timeline through reviewing research questions and decision trees. The proposal stage is a valuable time to begin this conversation.

Ensure expectations on Gradient’s iterative work model are clear.

1. We structure our engagements around an iterative work model. This empowers our clients to drive our work so it delivers value to them.

2. We view this as a win-win for Gradient and the client. The client remains engaged in the process and derives exactly what they want. Gradient benefits from having a clear task load for a cycle without client interruption.

3. As this is not a common practice, our “rules of engagement” need to be made explicitly clear in a proposal:

   • The entire project is estimated to require X unit of time
   • This includes X units of buffer
   • The project period is subdivided into X cycles
   • Tasks for each cycle will be decided upon collaboratively with the client
   • Once a cycle begins, we will be exclusively focused on the set tasks. No changes are permitted during the cycle
   • Before the end of a cycle, we will deliver products (intermediate or final) for review
   • Each new cycle is a blank canvas and we are we 100% flexible to iterate as the client wishes between cycles
   • Once the X units of time have been exhausted (including the buffer), there will be overage fees

4. For new clients, ensure our rules of engagement are clear.

1. Make an illustrative budget spreadsheet using our Pricing Workbook for every proposal and save it in the CRM system.

2. Organize the budget into internal (Gradient labor) and external costs (data, consultants, fees, etc)

   • Build out the budget using incurred costs as the foundation. Opportunity costs should be folded into Gradient labor or as a percent fee of incurred costs.

3. If possible, add external costs (data collection, software, etc.) as costs billed directly to the client. This decreases Gradient’s risk in data collection and eliminates an incentive to weaken methodological data collection standards.

   • When vetting new vendors, attempt to get at least three quotes. Same them in the CRM system for future reference.
   • Standardize quotes into the same units.

4. When contracting conditions permit, decrease risk to Gradient by offering a price range or a ceiling.

5. Extensively annotate the budget with assumptions so other colleagues can interpret it.

   • Link to quotes, past projects, burn rates, evidence, etc.

6. Ask another colleague to review formulas for accuracy.

The ultimate compliment a client can offer is coming back for more business. We should anticipate re-engagements and preempt them in proposals.

1. For analyses that lend themselves to a new engagement, particularly with client-provided data, include a clause in the proposal that alludes to using the findings from the current engagement to build upon future analyses. This helps clients see the long-term value and pitch the current proposal as an investment (and potential savings to them) in their analytical needs.

2. For most engagements, it’s difficult and a waste of resources (Principle 2) to schedule the entire life of a project. To account for this, build a generous buffer period into the proposal timeline and pricing. Ensure this is clearly known to the client and enforce it.

3. For model-based projects, include a discounted model update and data refresh in the proposal.

Always have a proposal reviewed before delivery. Always.

1. Every proposal and its accompanying budget should undergo at least one review by another team member.
   a. There is where we stress test (Principle 4) the proposals' assumptions, feasibility, and overall design.
   b. If something isn’t clear to you, it probably won’t be to a client.
   c. Cross-reference proposed deliverables, external costs, and timelines with the budget.