The Debate Between Dedicated BD and Blended PM/BD Roles
What's right for your company?
When trying to grow your business, the function of Business Development (BD) is critical to growth. At start-up, almost all Federal Contracting small businesses will not have a dedicated BD role. Instead, BD is everyone's function and responsibility. However, as companies grow, inevitably the debate over whether to create a dedicated BD Position or adopt a hybrid role that combines Program Management and Business Development often ensues. Let's take a look at the pros and cons of each approach.
Dedicated Business Development Role:
The dedicated BD person is focused on finding new business opportunities, fostering partnerships, and expanding market reach. This person will be–responsible for; held accountable for; and rewarded for–generating new revenue through new opportunities. Conversely, they often will be shown the door if they're not able to generate new revenue in a designated time period. Here are some key advantages:
Expertise and Focus: With a sole focus on BD, this person can hone their skills in identifying, pursuing, and securing new opportunities. They need to be adept at juggling multiple balls concurrently, including: building a sales pipeline; identifying key opportunities; maturing both prime and sub roles; shepherding opportunities through gate reviews; securing budgets and other resources to increase PWin; securing meaningful meetings with clients; schooling technical teams to articulate unique value propositions (UVP) that resonate with the clients; translating technical capabilities into solutions that fit the client requirements; navigating complex negotiations, building strategic alliances, not to mention working on RFIs; attending industry days; proposal writing; developing price to win strategies; finding competent subcontractors to cover multiple federal government small business goals and of course driving revenue growth.
Single Point of Contact. A dedicated BD person can swiftly respond to evolving RFPs, market dynamics, emerging trends, and competitor moves. This enables companies to focus on key opportunities and stay ahead of the curve without distractions such as client delivery or staff development.
Accountability: Having a dedicated BD person ensures clear accountability for BD functions. Targets and performance indicators are tied to this role, allowing effective evaluation and strategic optimization of opportunities.
However, the dedicated BD approach also has its limitations:
Siloed BD Functions. The dedicated BD person may struggle to integrate well with Solution Architects, Marketing, and Operations. A lack of integration can negatively impact the alignment of BD efforts with overall company objectives.
Myopic Focus: The person who focuses solely on BD may lose sight of company-wide strategic considerations.
Combined Program Manager and BD Position:
In contrast, the hybrid role of Program Manager (PM) and Business Development combines both functions, offering versatility and integration across various business activities. Here's some advantages to this approach:
Cross-Functional Teamwork: A hybrid BD/PM person can facilitate collaboration between BD and other departments. PMs with BD responsibilities can bridge gaps between teams, ensuring alignment of BD efforts with overall company goals and strategies.
Holistic Approach: An integrated BD/PM person can obtain a holistic view of business operations, market dynamics, and customer needs. Understanding customer needs is perhaps the most value a combined role brings. This broader perspective enables better decision-making and planning. It is nearly impossible for the dedicated BD person sitting in a silo to understand the needs of the client.
Efficiency and Resource Optimization: Combining roles reduces redundancy and optimizes resource allocation. PM with BD responsibilities can leverage their client relationships and project management skills to streamline processes, reduce redundancies, and drive results.
Client Intimacy: If a company is focused on organic growth than who better to lead that charge in the PM leading your current work? This person will have the most up-to-date knowledge and insight into client pain points, goals, and objectives.
However, the hybrid approach also presents challenges:
Skill Set Tradeoffs: Balancing the demands of the PM and BD role requires a diverse skill set encompassing strategic planning, negotiation, project management, and relationship building. Identifying candidates with the right blend of skills and experience can be challenging if not next to impossible.
Prioritization: Articulating responsibilities, expectations, and priorities is crucial to ensure effective performance and avoid distractions. Without clear direction from leadership, people in hybrid roles may struggle to prioritize functions and deliver results.
Client Jealousy: When a PM is at their best, the client will consider them a key member of their team. If the PM has to attend to other responsibilities such as BD, the time away from the client can negatively impact the chances for winning a re-compete.
Is There A Right Approach?
The choice between a dedicated BD position and a hybrid BD/PM function will depend on company unique factors such as company size, industry segment, growth goals, company culture. Smaller companies or startups will almost certainly choose the hybrid role out of necessity because of resource constraints. As companies grow they will likely face the decision point whether to silo off the BD position or keep the hybrid format. Many larger companies selling specialized products and services will find it advantageous to have the dedicated BD function; whereas companies selling solutions and services may be able to maintain the hybrid role and teach everyone aspects of BD and sales.
No matter what approach is chosen, developing a culture of collaboration, and adaptability is essential for driving virtuous cycles of growth and remaining competitive in today's dynamic business landscape. By leveraging the strengths of both Business Development and Program Management, companies can navigate the complex world of Federal Contracting, seize opportunities, and chart a course towards long-term success.
What Do you Think?
I'd love to hear your perspective on this topic. And, If you'd like more advice on how to help your business succeed in the GovCon space; engage with us at: www.solutionsforgovernment.net
engage@solutionsforgovernment.net
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