To go or not to go? The tendering step that saves your business time and money
By Kaitlin Wiffler, Senior Tender Specialist (Brisbane)
One of the most common mistakes businesses make in tendering is skipping the Go/No Go process.
But why is the Go/No Go so important?
What is a go/no go process?
Tendering is an exercise in time and resources. It is important to consider that pulling a submission together is a financial investment. Many businesses dive headfirst into a tender without first asking:
“Should we pursue this opportunity?”
A Go/No-Go process is a formal decision-making framework that evaluates whether a tender aligns with your strategic, financial, and operational capabilities—before you invest time and money. By taking the time to step back and consider the opportunities more strategically, you can identify whether making the decision to go is the right one.
Key elements of a successful Go/No Go framework:
Consider the below questions when deciding whether to pursue a tender opportunity:
Probability of a win: What is the likelihood you will win the tender? Is the client happy with the incumbent and is simply testing the market?
Timeline and resourcing: Does our bid team have capacity, or do you need external tender support? Will you miss out on a more suitable opportunity by tendering for this one?
Financial impacts: What is the cost of winning the projects? Will your estimate be competitive?
Industrials Relations: Do you have an active EBA that will attract and retain a high-quality workforce?
Capability: Do you have the capability and experience to deliver the project?
Risk: Are there commercial terms your company’s legal team just will not agree too?
Timeline: Can your team meet the submission timeline without compromising quality? Do you have capacity in your team, or do you need external support?
Internal stakeholder buy-in: Will key decision makers support pursing this tender or is it not aligned with your strategic direction?
Benefits of a strong go / no go process
Implementing a strong go/no go process framework will deliver to your team the following returns on your investment:
Save time and resources: putting your best tender response forward takes significant effort, estimating, preparing and completing documentation and coordinating the team. Pursuing bids that do not fit your strengths waste budgets and distracts your team from better opportunities
Improve your win rate: Filter out low-value or high-risk tenders and concentrate on bids where you have a competitive edge. This approach boosts your success rate and strengthens your client relationships
Enhances your strategic alignment: Not every tender aligns with your company’s strategic direction. A Go/No Go process ensures that every bid pursued fits with your overall strategy.
Reduces risk exposure: Identify potential risks before you commit time and resources to the tender. Does the tender include unfavorable commercial terms or legal liabilities? Are compliance requirements achievable?
Avoid burnout: Improve team morale by not pursuing unrealistic opportunities. When your team works on bids with a genuine chance of success they stay motivated and focused. The easiest way to motivate your bid team is through winning.
A Go/No Go process isn’t just a formality of your internal governance process, it’s a strategic tool that protects your resources, improves profitability and positions your business for success. Before diving headfirst into your next submission, consider whether it should be a Go or a No Go.