With all the best writing
in the world, you cannot win a bid unless you have got your finances
right. Losing a bid on price when you
have scored highest on quality is probably the worst result you can have.
Every organisation has
their own way of doing financial modelling; rather surprisingly to me, many
seem to do the modelling in isolation to everything else. The best bids I have worked have integrated
all elements of a bid together, including financial modelling. This has worked through assigning a dedicated
person to doing the financial modelling and ensuring they are at all project
meetings and copied in to all relevant emails and information. With this, they get a more rounded view of
the project that they are then able to model against.
On the other side of the
coin, members of the project group can also put an element of common sense in
to financial modelling. Sometimes
modelling is done on a purely activity or time basis; however the reality of a
service can often be very different, this is where the common sense comes in.
In conclusion:
·
Do
not let financial modelling be done in isolation
·
Have
one dedicated person to do the modelling (maybe a management accountant)
·
Ensure
they are fully part of the project and included in all project meetings
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