Ensuring the Best Outcome for your Banking RFP
Stefan Jaskulak, CTP CFIP ‐ DeKalb County
Laurel Hord Hill, CTP ‐ Wells Fargo Bank
GGFOA – Annual Conference
September 2014
DeKalb County, Georgia
1
Agenda
•
•
•
•
•
•
Analyze Your Banking Services (GAP Analysis)
To RFP or not to RFP (Decision Time #1)
Banking Services & Response
Contract Award (Decision Time #2)
Implementation
Ongoing Partnership
DeKalb County, Georgia
2
Analyze Your Banking Services
Review your organization
Organization Chart
Physical Locations (concentrated or dispersed)
Business Processes
Project Risks
Decision‐making Process
DeKalb County, Georgia
3
Analyze Your Banking Services
Review your Banking Structure
Account Structure
General Ledger System
Interfaces
Process Flows (manual vs automated)
Payment Methods (Check, Wire ACH, Card, etc)
Statistics
Items Processed
Rejects and Reversals
Statements
DeKalb County, Georgia
4
Analyze Your Banking Services
Review Current Treasury Products
Existing Products in Use
Existing Products not in Use
New Products
Automation Opportunities
Process Improvement Opportunities
DeKalb County, Georgia
5
To RFP or not to RFP
Customize your RFP to your goals
Don’t rely on what’s been done before
Status Quo or Transformation?
Use Gap Analysis Information
Ask for Consultative Responses
Use AFP Sample RFP and codes
Do not include Current Pricing Schedules
DeKalb County, Georgia
6
To RFP or not to RFP
GFOA Best Practice ‐ Procurement of Banking Services
Recommendation
Evaluation (RFI)
Competitive Procurement
Verify creditworthiness
Negotiate Contract
Identify Primary Relationship Manager
Periodic Service Quality Evaluation
Evaluate & Monitor Cost/Benefit
http://www.gfoa.org/downloads/GFOATIMBPProcurementofBankingServicesI
nclDueDiligence.pdf
DeKalb County, Georgia
7
Banking Services & Response
Review Overall RFP Timeline
Develop an understanding of needs
Brainstorm solutions
Seek clarification and validate solutions for effectiveness and efficiency
Compose RFP response
“Extra Credit”
DeKalb County, Georgia
8
Banking Services & Response
Review Overall Timeline & Approach
When is it due? Adequate time to develop a response?
Is there a Pre‐Bid? When are questions due? When will answers to questions be provided? Adequate time to incorporate answers in our response before RFP is due?
Evaluation factors published? Will there be a finalist presentation?
DeKalb County, Georgia
9
Banking Services & Response
Developing an understanding of needs
Customer or prospect?
How much do we already know about your current treasury management system and goals?
Does the RFP tell a comprehensive story of the situation and goals?
Are there any requirements we can’t meet?
Are services included that can be best served through a separate RFP process?
DeKalb County, Georgia
10
Banking Services & Response
Brainstorm Solutions
Ensuring current and future needs can be met
Develop a position to differentiate
Peer group analysis
Product is not always the point of differentiation
DeKalb County, Georgia
11
Banking Services & Response
Seek clarification and validate solutions
Pre‐Bid and formal Q&A important ways to get additional information
How to handle requirements that may eliminate potential respondents
Responding when you never get the “real” answer to your questions
Deciding to bid or not
DeKalb County, Georgia
12
Banking Services & Response
Compose RFP response
Developing an executive summary or cover letter
Ensure all of the requirements for content, including order and packaging, has been met
Approach to pricing – rates, fees and other
DeKalb County, Georgia
13
Banking Services & Response
Extra Credit
Make an electronic copy of the RFP available
Ensure the format of the Technical proposal is easy for banks to prepare and for you to evaluate
Evaluate cost separate from technical capabilities
“The Forms, The Forms”
DeKalb County, Georgia
14
Contract Award
Negotiate Base Contract
Ensure RFP and responses are part of contract
Specify Services & Fees
Collateralization
Compensation
Relationship Manager
Escalation and Resolution Method
DeKalb County, Georgia
15
Implementation
Manage Project Creep
Don’t Boil the Ocean
Phased Implementation
Early Communication
Quick Wins
Gain Momentum
Stay Focused
DeKalb County, Georgia
16
Ongoing Partnership
Frequency of Contact
Scorecards
New Products
Business Continuity/Disaster Recovery
Ongoing Due Diligence
Bank’s Credit Rating
Monitor Probability of Default
DeKalb County, Georgia
17