What to Look for in RFP Response Software 
by Dave Seibert

If you respond to RFPs on a regular basis, then you know how time consuming, tedious, and unruly it can be.  So to improve the process and make it more manageable, many firms have automated the RFP response process with RFP response automation software.  RFP software makes the process of responding to RFPs faster, more accurate, and in general, more manageable.  

The basic idea behind RFP Automation software is simple; once you answer a question once, you should never have to answer the same question again.  As a result, every RFP response tool is built on some kind of database that allows you to store answers to questions, then later retrieve your answers. 

Selecting RFP Software
Everyone's situation is different so there is no one RFP software tool or feature that satisfies all requirements.  In general, though, there are three basic things you should look for when selecting RFP software; ease of use, project management and collaboration functionality, and compliance matrix functionality.

Ease of Use
RFP software should facilitate the RFP response process, not get in the way.  So finding software that's easy to use is important.  

Unfortunately, there's a lot of confusion in the RFP software industry about what it means to be easy to use.  For example, one RFP vendor argues that RFP software built within MS Word is easier to use because most of us already know how to use MS Word.  But this is an invalid argument.  Building an RFP software product within Microsoft Word may result in a short learning curve because most of us already know MS Word, but it doesn't necessarily make the RFP software easier to use.  Put bluntly, quick-to-learn doesn't always mean easy-to-use.  

When you evaluate the ease of use of a particular RFP software tool, establish a variety of criteria to help you make your selection.  Here are a few evaluation criteria to consider.

• How easy is it to import new RFPs into the software?
• How easy is it to assign questions to team members?
• How easy is it to track the progress of team members?
• How easy is it to build a compliance matrix?
• How easy is it to retrieve answers that are stored in the database?
• How easy is it to maintain content that is stored in the database?

Project Management & Collaboration
There are basically two types of RFP software tools on the market today; those built in or around a word processor such as Microsoft Word, and those that are built to emphasize project management functionality.  The RFP software tool you choose depends on your requirements.

A word processor-based tool is just that--it is built in a word processor, but it uses scripts to make it look like an independent or unique RFP software program.  This kind of tool can work well if you only have one person responding to RFPs.  Though some vendors have tried to make it work in a multi-user environment--with varying success--the problem is that a word processor is still inherently a single user system.  Different users can't easily work on the same RFP response concurrently.  This approach is clunky, and it doesn't provide the RFP manager with an accurate idea of how other team members are progressing on the project.

If you are responding to RFPs in a multi-user environment, you may need multi-user RFP software that emphasizes project management functionality. At a minimum, you should be able to do the following:

• Allow concurrent collaboration on the same document
• Assign questions to content experts
• Track the progress that each content expert is making in answering his or her questions
• Set custom due dates for different team members

Compliance Matrix
A compliance matrix is a table that you insert at the beginning of your RFP response.  Its purpose is to summarize your answers so the person reviewing your RFP response can see, at a glance, how well your product satisfies the requirements of the proposal.  Not all RFP software tools offer a compliance matrix, but for those that do, it represents a competitive advantage.  

Here's an example of what a compliance matrix may look like.  An RFP may contain this question: Does your software support Windows XP?  In the body of the proposal, you answer the question: Our software supports Windows XP.  In addition, you would add a compliance matrix to the front of the document that looks something like this:

Question	Compliance	Answer Location
Support for Windows XP?	Fully Compliant	Page 2

The advantage of using a compliance matrix is that the customer can review your response quickly and easily.  Since you are making it easier for them, your response will typically be the first one they review.  Put bluntly, this means you will be setting the standard by which the other RFP responses are evaluated, and that's a good thing.    

There are many different kinds of sales force automation software tools, but few that offer the immediate impact and long term productivity gains that you find with RFP software.