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®
Capability Maturity Model
for Business Development,
Version 1.0

Staged Representation

Sustainable Results in a Competitive World

BD-CMM Development Team and Steering Committee

September 2004

Unlimited distribution subject to copyright

Copyright ©2004 by Business Development Institute International

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 Business Development Capability Maturity Model (September 2004)

Acknowledgements

Development of a viable Capability Maturity Model® (CMM®) must

The development team
be a team effort. This was certainly true of the Business Development gratefully
Capability Maturity Model (BD-CMM). Development of the model was acknowledge the
led by the following individuals: contributions of many
people within the
• Howard Nutt, Vice President, Shipley Associates and Executive Shipley consulting
Director, Business Development Institute International organization,
numerous members of
• Nancy Kessler, Vice President of Process Consulting, Shipley the Association of
Associates Proposal
Management
• Ginger Levin, Author and Consultant on Capability Maturity Professionals
Models and Deputy Director, Business Development Institute (APMP), and the
International Carnegie Mellon
Software Engineering
Institute.
In addition to the lead developers, the team acknowledges the leading
role in drafting the baseline model taken by members of the Shipley
Associates and Shipley Limited consulting teams, especially:
• Russ Allison, Senior Associate, Process Consulting
• Paul Deighton, Director, Process Consulting
• Rick Lee, Vice President, Strategic Opportunities
• Walt MacEachern, Senior Associate, Process Consulting
• Larry Newman, Vice President, Training
• Robert Winslow, Sr. Vice President of Consulting

Equally important to project success was the dedication of the APMP

Steering Committee, lead by David Bol (2001-2002) and Charlie Divine
(2002-2003). Steering Committee members included:
• Holly Andrews, Anteon Corporation
• Don Brown, Lockheed Martin Corporation (currently with
Northrop Grumman Corporation)
• Giles Carter, De La Rue International Limited
• Neil Cobb, SBC Communications
• Meg Dwyer, SAS Institute
• Cora Foley, MAXIMUS
• Robert Goldstein, Northrop Grumman Corporation
• Eric Gregory, CACI
• Michael Humm, MAXIMUS

©2003-2004 Business Development Institute International. All Rights Reserved Page iii
 Business Development Capability Maturity Model (September 2004)

• Alison Joiner, BNFL, Inc.

• Grant Mitchell, Lockheed Martin Corporation
• Jessica Morgenstern, Veridian Corporation (now part of General
Dynamics Corporation)
• Stephanie Nolan, Motorola
• Michael Ransom, Rockwell Collins
• David Sotolongo, Research Triangle Institute
• Bryan Stambaugh, United Defense L.P.
• Kelli Stephenson, Experian
• Don Stewart, Honeywell Corporation
• Joe Villa, Motorola Printrak

Finally, the development team wishes to thank the Software

Engineering Institute of Carnegie Mellon University for their cooperation
in allowing us to use their trademarks and service marks for our work.

©2003-2004 Business Development Institute International. All Rights Reserved Page iv

 Business Development Capability Maturity Model (September 2004)

Preface

Version 1.0 of the Business Development Capability Maturity Model BD-CMM Version 1.0
(BD-CMM) was developed during 2001-2003. It was released on a limited recognizes the
contribution of APMP
basis in May 2003, since which time it has been prepared for public member companies
release in October 2004. and based on
feedback is now
available in the public
Why is the BD-CMM Needed? domain.

The BD-CMM is designed to guide BD organizations in selecting

high-priority improvement actions based on the maturity of their current
practices. Its benefit is in narrowing the scope of improvement activities to
those key practices that provide the next foundational level for extending
the organization’s current BD capabilities.

The fundamental value proposition underpinning the model is that

greater process maturity is linked directly to improved results in terms of
an organization’s ability to predictably capture business and achieve high
By concentrating on a
return on its investment in business development. As a result: focused set of
• Organizations that establish a strategy that supports BD practices and working
aggressively to
adaptability and innovation as strategic values are able to drive implement and
customer-oriented solutions. institutionalize them,
organizations can
• Organizational performance can be improved by sharing and make lasting gains in
reflecting on improvement efforts under way and integrating the their performance and
perspectives of all those associated with business development in competitiveness.
the enterprise.
• Competencies in business development, when extended across the
enterprise and management responses, can be continuously adapted
to meet the ever-changing needs of a BD environment.

The BD-CMM is not envisioned specifically as a method for process

certification, nor does it serve as a quick fix for those organizations that
may have processes or projects that are “in trouble.” Its framework
provides a characterization for each level of maturity in business
development and also establishes definitions of the improvements required
to move to the next, higher level. In this way, the model highhlights key
elements of a specific facet of business development and identifies key
practices that need improvement to elevate the organization’s maturity
ranking in that specific facet of business development.

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 Business Development Capability Maturity Model (September 2004)

Why was the CMM Approach Selected?

The CMM approach was selected in preference to other process
improvement methodologies for two primary reasons.

First, most competing methodologies focus on how to analyze and

understand processes within specific organizations and do not try to
identify specific industry standards by which processes can be improved
with predictable results. By comparison, CMMs attempt to define industry
practices that correlate with increasing levels of process maturity. The
resulting CMMs seek to provide (a) an industry standard or “framework”
by which relative maturity can be assessed, (b) a clear path to evolve
processes to achieve increasingly mature states, and (c) specific guidance
on best practices and their applicability and implementation.

Second, the CMM approach was chosen because of the level of

industry acceptance of this model as a preferred approach to
communicating process improvement within a “best practices” context.
Currently, CMMs are widely accepted for software development, systems
engineering, project management, and human resources, and industry
literature validates that companies who apply these approaches derive
specific process-driven benefits.

This combined focus on industry standards and industry acceptance of

the CMM approach made it especially appropriate for business
The SEI CMM began
development and proposal professionals. Version 1.0 of the BD-CMM
as a tool to improve
follows the structure for CMMs pioneered by the Software Engineering the outcome of
Institute (SEI) at Carnegie Mellon University in 1986, with the Department of
development of a software process maturity foundation. The Department Defense software
of Defense (DoD) funded the SEI to develop a yardstick for evaluating development projects.
contractor software development capabilities. Not only was the model to
be important as a measuring device, the goal of DoD was to improve the
ability of contractor organizations to meet goals for cost, schedule,
functionality and product quality.

The Software Capability Maturity Model (SW-CMM) resulted from

this original activity. The SW-CMM has since undergone several revisions
and spun off a Systems Engineering CMM (SE-CMM), Software
Acquisition CMM (SA-CMM), People CMM, and Integrated Capability
Maturity Model (CMMI).

Since initial application of the SW-CMM as an evaluation tool for the The Software
Government, measurements of process maturity have been performed by CMM has inspired
models for other
trained evaluators conducting Software Capability Evaluations to qualify key organizational
contractors for software development work. Resulting industry data functions affecting
established that using the model has significantly benefitted both the the outcome of
Government and industry in terms of both effectiveness and efficiency, DoD programs.

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 Business Development Capability Maturity Model (September 2004)

and industry has realized notable return on investment from improving

their processes.

Over time, contractors have begun self-assessment on a project-by-

project basis in order to determine potential areas of improvement. They
have also engaged organizations such as the Software Productivity
Consortium to perform audits and assessments, whose results have
become an integral part of company marketing materials.

Thus, it has become apparent that the CMM approach has added a
significant level of professionalism to the processes to which it has been
applied. In addition, there has been a notable level of industry acceptance
of the approach in promoting process improvements that have benefitted
both process users and corporate stakeholders. By applying the approach
to business development, then, we seek broader acceptance of business
development excellence as a meaningful endeavor.

What Background, Benchmarking, and Prior Studies

Support the BD-CMM?
As highlighted in figure i, a number of industry studies have been
conducted that showed the necessity for a BD-CMM. Beginning in 1993,
Coopers and Lybrand reported data at the APMP Annual Conference that
established industry baselines for “best-in-class” BD characteristics. This
was followed at the 1995 APMP Annual Conference by a report from a
Price Waterhouse study that led to the publication of best practices from
capture planning to award. In 1996, APMP conducted a salary and
compensation study, followed in 1998 by an APMP-sponsored study of
bid and proposal (B&P) effectiveness.

In 2002, Shipley conducted an

Data collection to establish
expansive industry benchmarking industry baselines
Benchmark Study 2002
study on behalf of the APMP, known
Bid and proposal
as APMP Benchmark Study 2002. effectiveness
This year-long effort created an
updated and expanded database of 1993 94 95 96 97 98 99 00 2001 2002

industry metrics through which to

Salary and compensation
identify BD best practices across the
wide spectrum of businesses, Best practices from capture planning to award

industries, and marketplaces Figure i. Background of Best Practices. More than a

represented by the APMP decade of studies on BD best practices underpins the BD-
membership. Specifically, the study CMM structure, practices, and improvement progression.
goals were to:
• Revisit APMP organizational demographics, metrics, and best
practices from prior studies

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 Business Development Capability Maturity Model (September 2004)

• Perform first-time comparisons of Government versus Business-to-

Business and International data on member companies
• Beta-test the ability of the draft BD-CMM to assess process
maturity and identify improvement opportunities at Levels 2 and 3
• Gain feedback on the applicability of BD-CMM Levels 2 and 3 to
member companies’ process maturity

APMP Benchmark Study 2002 focused on (a) business development

from opportunity identification through contract award; (b) the
establishment of industry baselines categorized by government,
commercial, and international; (c) the identification of key practices that
are applicable now and in the future; and (d) the collection of metrics that In May 2002, early
are industry standards and represent common and unique best practices. results of APMP
Benchmark Study
By the time the study was completed, 62 companies/operating units 2002 were presented
participated. This represented a survey sample size capable of providing to the 13th Annual
Conference of the
statistically significant correlations between performance metrics and APMP in Salt Lake
appropriate best-in-class standards. City, UT.

Who is the BD-CMM’s intended audience?

The BD-CMM is relevant for anyone involved at the front end of the
business cycle, where an organization’s strategic direction is defined,
presence in the marketplace is established, and existing or prospective
customers are engaged to procure the organization’s offerings. However,
the model is especially targeted at those who are responsible to develop
opportunities, manage BD/sales and marketing activities, implement BD
practices, and assure continuing growth and viability in the organization’s The framework and
marketplace(s). guidance provided by
the BD-CMM is for
anyone interested in
The BD-CMM offers special value to organizations that are assessing BD
experiencing critical changes, whether these are the result of downsizing, capability, planning
mergers, acquisitions, rapid growth, or major transitions in strategic BD process
direction. In addition, it is useful to managers who want to guide their improvements, and
optimizing their BD
organizations and personnel in industry best practices in business
performance.
development, as well as to those attempting to understand the capability
and maturity of their BD operations.

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 Business Development Capability Maturity Model (September 2004)

How is this document organized?

This document is organized into six chapters, which fall into three
major portions:
• Chapter 1 provides background, context, and guidance for applying
the BD-CMM.
• Chapters 2-5 present detailed characterizations for each of the
growth levels of the BD-CMM (i.e., Levels 2-5). These
descriptions address the key process areas that comprise each level,
including extensive examples.
• Chapter 6 describes the future direction envisioned as the model is
applied to companies throughout the world.

In addition to the six chapters, the document includes four appendices.

Of these appendices, the last (Appendix D) is especially important, as it
consolidates the model into a series of tables through which progression
within the model may be more easily described, and specific process
improvements may be more readily planned.

Where can you get more information?

Appendix A of this document provides a list of references and a
bibliography applicable to improving BD process and related topics.
However, the following sources may be especially helpful:
• To get more information on CMMs, please visit the Carnegie
Mellon University’s SEI website at [Link].
• For more about the BD-CMM, added-value resources, and details
on performing business development appraisals, please go to the
Business Development Institute International’s website at
[Link] or contact one of the authors.
• For more information on APMP and its mission to “improve the
arts and sciences of business development,” please go to its
website at [Link].

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 Business Development Capability Maturity Model (September 2004)

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 Business Development Capability Maturity Model (September 2004)

Table of Contents

Acknowledgements........................................................................................................................ iii

Preface............................................................................................................................................. v
Why is the BD-CMM Needed?................................................................................................................................v
Why was the CMM Approach Selected? ................................................................................................................vi
What Background, Benchmarking, and Prior Studies Support the BD-CMM? ....................................................vii
Who is the BD-CMM’s intended audience?.........................................................................................................viii
How is this document organized? ..........................................................................................................................ix
Where can you get more information?...................................................................................................................ix

Table of Contents........................................................................................................................... xi

List of Figures and Tables............................................................................................................ xiv

Chapter 1. Overview of the CMM® for Business Development..................................................... 1

1.1 What is the Scope of the BD-CMM? .................................................................................................................3
1.2 What are the Format and Structure of BD-CMM? ...........................................................................................3
1.3 How Can the BD-CMM Guide Improvements? ................................................................................................8
1.3.1 Customer KPC: The Path to Increasing Customer Value 8
1.3.2 Focus KPC: The Path to Improving Performance and Synergy 9
1.3.3 People KPC: The Path to Building Competencies and Teams 10
1.3.4 Capabilities KPC: The Path to Enhancing Systems and Processes 11
1.4 How Can Organizations Benefit from BD-CMM?..........................................................................................12

Chapter 2. BD-CMM Level 2: Repeatable ................................................................................... 15

2.1 Key Process Category: CUSTOMER..............................................................................................................15
2.1.1 Key Process Area: Response Generation 15
2.2 Key Process Category: Focus.........................................................................................................................20
2.2.1 Key Process Area: Business Development Administration 20
2.2.2 Key Process Area: Quality Control 24
2.3 Key Process Category: PEOPLE....................................................................................................................27
2.3.1 Key Process Area: Individual Skills Development 27
2.4 Key Process Category: CAPABILITIES .........................................................................................................32
2.4.1 Key Process Area: Sales/Capture Procedures 32
2.4.2 Key Process Area: Work Environment 35

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 Business Development Capability Maturity Model (September 2004)

Chapter 3. BD-CMM Level 3: Defined ........................................................................................ 39

3.1 Key Process Category: CUSTOMER..............................................................................................................39
3.1.1 Key Process Area: Solution Development 39
3.2 Key Process Category: Focus.........................................................................................................................46
3.2.1 Key Process Area: Organizational Tactics 46
3.2.2 Key Process Area: Quality Management 50
3.3 Key Process Category: PEOPLE....................................................................................................................54
3.3.1 Key Process Area: Organizational Competencies Development 54
3.4 Key Process Category: CAPABILITIES .........................................................................................................59
3.4.1 Key Process Area: Business Development Process 59
3.4.2 Key Process Area: Support Systems 62

Chapter 4. BD-CMM Level 4: Managed ...................................................................................... 65

4.1 Key Process Category: CUSTOMER..............................................................................................................65
4.1.1 Key Process Area: Relationship Management 65
4.2 Key Process Category: Focus.........................................................................................................................71
4.2.1. Key Process Area: Enterprise Influence 71
4.2.2 Key Process Area: Quantitative Process Management 74
4.3. Key Process Category: PEOPLE...................................................................................................................78
4.3.1 Key Process Area: High-Performance Teams 78
4.4 Key Process Category: CAPABILITIES .........................................................................................................82
4.4.1 Key Process Area: Business Development System Integration 82
4.4.2 Key Process Area: Infrastructure Management ..........................................................................................84

Chapter 5. BD-CMM Level 5: Optimizing................................................................................... 89

5.1 Key Process Category: CUSTOMER..............................................................................................................89
5.1.1 Key Process Area: Innovation and Transformation 89
5.2 Key Process Category: Focus.........................................................................................................................92
5.2.1 Key Process Area: Innovation and Transformation 92
5.3 Key Process Category: PEOPLE....................................................................................................................95
5.3.1 Key Process Area: Innovation and Transformation 95
5.4 Key Process Category: Capabilities ...............................................................................................................98
5.4.1 Key Process Area: Innovation and Transformation 98

Chapter 6. Future Directions of the BD-CMM........................................................................... 101

6.1 What the BD-CMM Does Not Cover ............................................................................................................101
6.2 Near-Term Activities.....................................................................................................................................102
6.3 Longer-Term Activities .................................................................................................................................103
6.4 Conclusion ....................................................................................................................................................103

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 Business Development Capability Maturity Model (September 2004)

Appendix A. References and Bibliography ................................................................................ 105

Appendix B. Acronyms Used in BD-CMM ............................................................................... 107

Appendix C. Glossary of Terms ................................................................................................. 109

Appendix D. Key Practice Area (KPA) Matrices by BD-CMM Goals and Key Process
Categories (KPCs) ...................................................................................................................... 123

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 Business Development Capability Maturity Model (September 2004)

List of Figures and Tables

Figure i. Background of Best Practices vii

Figure 1. Overview of the CMM for Business Development 1

Figure 2. BD-CMM Breadth 2

Figure 3. Integrated View of the BD-CMM 4

Figure 4. CMM Maturity Levels 5

Figure 5. CMM Structure 6

Figure 6. Representative Key Practices of the BD-CMM 7

Figure 7. Emerging Benchmark Concept 13

Table 1. Improvement Paths within in the BD-CMM 14

©2003-2004 Business Development Institute International. All Rights Reserved Page xiv
 Business Development Capability Maturity Model (September 2004)

Chapter 1. Overview of the

CMM® for Business Development

Maturity, according to the Random House Dictionary, means “full

development or a perfected condition.” It also suggests understanding as
to why success occurs and as to ways to prevent common problems. In The BD-CMM was
terms of business development (BD), this relates to capabilities that can developed as a
produce repeatable success in an organization’s BD initiatives. starting point for BD
professionals to craft
a robust outline of
The Business Development Capability Maturity Model (BD-CMM) is what promotes
depicted in figure 1. It creates a vision of excellence capable of guiding optimum performance
major process improvement in business development. It provides its users across the broad
with a framework, path, and guide for achieving dramatic process range of industry
improvement in their organizations. In addition, it provides a process types, sizes, and
environments.
improvement map that organizations can use to assess the effectiveness
and efficiency of their BD operations. It is envisioned that the model will

Figure 1. Overview of the CMM for Business Development. Version 1.0 of the BD-CMM addresses
critical elements of BD capability growth.

©2003-2004 Business Development Institute International. All Rights Reserved Page 1

 Business Development Capability Maturity Model (September 2004)

serve as the foundation for ongoing discussion and development within the
BD profession.

The model's scope encompasses the full BD life cycle and

organizational components, including advance marketing, sales, sales
account management, proposal development, and others engaged in the
BD enterprise. The model acknowledges that no one component can exist
very long in isolation, and that success, when realized, is the orchestrated
result of teams.

The BD-CMM has been constructed based on the existing Carnegie

Mellon Software Engineering Insitute (SEI) capability maturity principles
and existing models for software, software acquisition, systems The Software CMM is
engineering, and human resources (SW-CMM, SA-CMM, SE-CMM, and the most familiar of
People CMM). In addition, it acknowledges current efforts for CMM the models, but all
IntegrationSM (CMMI®). CMMs rely on a
framework of levels.
As illustrated in figure 2, development of the BD-CMM has had two Progress from level to
level is achieved
main focuses – applying lessons learned from earlier CMMs (most through evolutionary
notably, the SW-CMM and the People CMM) and applying candidate best process improvements
practices from prior APMP studies, other industry benchmarking reports, defined for each
and Shipley process consulting experience. plateau.

A major challenge in its development effort was the definition of Key

Process Areas (KPAs) in a manner that allows them to be applicable to
most companies. The APMP partnership provided an essential way to get
broad industry involvement and to assure sensitivity to process issues that
are meaningful to both large and small enterprises engaged in government,
business-to-businss (“commercial”), and international pursuits.

SEI CMM

Key Process Areas BD-CMM Metrics Data and

and Key Practices Self-Assessment
Version 1.0
People CMM

Data Analysis &

Level Correlations

APMP Studies

Industry BD Updates and

Best Practices Application
Shipley
Experience

Figure 2. BD-CMM Derivation. Version 1.0 of the BD-CMM is derived from the
team’s analysis of other CMMs to establish its structure and from the combination of
APMP, industry, and Shipley best practices to define its content.

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 Business Development Capability Maturity Model (September 2004)

1.1 What is the Scope of the BD-CMM?

The BD-CMM defines “levels of maturity” from one to five, through
which an organization must pass in order to ultimately achieve a fully
optimized process. Each level is defined such that multiple areas of
process improvement must take place within the level, all falling within
the overall characterization, or definition, of that level. The definitions for
each level are very broad, to allow for a wide variety of organizational
types, but clearly describe a progression to increased maturity.

The BD-CMM defines “business development” in broad terms. It

incorporates Key Process Categories (KPCs), KPAs, and best practices
applicable to how companies in diverse industries and marketplaces
acquire business. It is designed to be applicable to processes that have
traditionally been called “business development” as well as those
traditionally described as “sales and marketing.” The concepts, practices,
and strategies embedded into the BD-CMM apply equally to operations
that pursue many (often thousands) opportunities per year and to
operations targeted to acquire a relatively small number of very large,
strategic opportunities (often worth billions of dollars over decades).

1.2 What are the Format and Structure of BD-CMM?

An integrated view of the BD-CMM is provided in figure 3 to
facilitate quick reference. This allows one to quickly note the vertical
progression to higher maturity levels and the horizontal activities
performed simultaneously to improve within a specific level.

The four major bands represent the four KPCs – i.e., major categories BD-CMM Version 1.0
deemed appropriate for business development. In comparison, the SW- is closely patterned
CMM is organized around three process categories (management, after existing CMMs
that have already
organizational, and engineering), and the SE-CMM includes three process demonstrated their
areas (engineering, project, and organizational). applicability and
efficacy.
Themes are associated with each KPC and are highlighed in italics
within the respective bands. (For example, the theme for the KPC
“Customer” is “Increasing Customer Value.”) The thematic definition is
modeled after the People CMM, which uses a comparable construct
(developing capabilities, building teams and culture, motivating and
managing performance, and shaping the workforce).

It is also noteworthy that BD-CMM Version 1.0 adopts the SW-CMM

nomenclature. The level definitions have been tailored to apply to the BD
process, and the KPAs are aligned by KPC and level. For example, the
KPA “Individual Skills Development” is seen as an area in which an
organization should focus to improve its process to achieve Level 2
maturity.

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 Business Development Capability Maturity Model (September 2004)

Level 4 Level 5
Level 2 Level 3 Optimizing
Level 1 Managed
Defined
Initial Repeatable
Behavioral Ad hoc, chaotic, Addressing individual opportunities by Using a standard, defined business Managing, controlling, and measuring Continuously and predictably
Characterization dependent on individuals reusing past project management and development process consistently a business development system improving business development
business development practices across the organization integrated with enterprise operations performance within the enterprise

Maturity Process is characterized Basic project management processes Process for activities is documented, Detailed measures of the process and Continuous process improvement is
Level as ad hoc, occasionally are established to track cost, standardized, and integrated into a product quality are collected. Both the enabled by quantitative feedback from
Definitions even chaotic. Few schedule, and functionality. The standard process for the organization. process and products are understood the process and from piloting
processes are defined, necessary process discipline is in All projects use an approved, tailored quantitatively and controlled. innovative ideas and technology.
and success depends on place to repeat earlier successes on version of the organization’s standard
individual effort/heroics project with similar applications. process.

Management Process is an amorphous Process is a succession of black Internal structure of boxes is visible. Process within boxes is instrumented Processes within boxes are improved.
Visibility black box. Management boxes. Management has visibility at Management can prepare proactively and controlled quantitatively. Management is able to estimate and
has visibility at beginning transition points (project milestones) for risks that may arise. Management can measure progress quantitatively track the impact and
and end. as activity flows between boxes. and problems. effectiveness of change.

Customer • Response Generation • Solution Development • Relationship Management

Increasing Customer Value

Focus • Business Development • Organizational Tactics • Enterprise Influence

Administration • Quality Management • Quantitative Process
Improving Performance & Synergy
• Quality Control Management
• Innovation and
Transformation
People • Individual Skills • Organizational • High Performance Teams
Development Competencies
Building Competencies and Teams
Development

Capabilities • Sales/Capture Procedures • Sales/Capture Processes • BD System Integration

Enhancing Systems & Processes • Work Environment • Support Systems • Infrastructure
Management

Figure 2. Integrated View of the BD-CMM. The BD-CMM articulates the behavioral characteristics of organizations as they mature and highlights
the impact of increasing maturity on both BD processes and management visibility within those processes.

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 Business Development Capability Maturity Model (September 2004)

1.2.1 CMM Levels and Definitions

CMMs for all types of activities establish “levels” of maturity through
which an organization must pass in order to achieve the next level. Each
level is defined such that multiple areas of process improvement must take
place within the level, but each area’s activities fall within the overall
characterization, or definition, of that level. The definitions for each level
are very broad, to allow for a wide variety of organizational behaviors, but
clearly describe a progression of increased maturity.

The levels of maturity (figure 4) define specific goals that are to be

achieved. The goals are presented as results statements that describe
observable milestones to verify whether or not an organization has
effectively implemented certain processes. As a progressive standard, this
framework not only provides a characterization for each level but also
defines the improvements required to move to the next level.
• The Initial level, characterized by ad hoc processes
and limited management commitment, evolves to the
Repeatable level through introduction of discipline to Optimizing 5
an otherwise chaotic process. Managed 4
• Once some level of discipline is adopted at Level 2, Defined 3
repeatability replaces the chaos of Level 1. Repeatable 2
• Logical evolution from the Repeatable level to the Initial 1
Defined level is the establishment of a standard,
consistent process. Figure 4. CMM Maturity
Levels. Maturity of capability is
• The Managed level is reached by a process measured in a series of
characterized as predictable. plateaus, or Levels, each with a
distinct characterization.
• The Optimizing level results from a continually
improving process.

Presenting the levels of a CMM as a series of plateaus does not

necessarily reflect equal degrees of improvement. Just as introduction of a
disciplined process is much less difficult than organizational adoption of
that process, the progress from Level 1 to Level 2 is much more easily
accomplished than the progress from Level 2 to Level 3.

The process improvement required to move to successive levels

becomes increasingly more difficult to achieve. All organizations go
through a maturity process, and this process precedes excellence.
Accordingly, the learning curve for maturity typically is measured in years
[Kerzner, 2001]. However, organizations that do reach higher levels of
maturity and attain some degree of excellence, achieve and exploit a
sustained, competitive advantage.

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 Business Development Capability Maturity Model (September 2004)

What is graciously missing from these rankings is the rank of zero,

which describes an organization that has no procedures, and none of its
endeavors is ever near the success mark. One hopes that such an
organization does not exist, although it is possible for an organization to
merit a ranking of zero on one of the performance attributes. If this is the
case, then the improvement plans that usually follow the maturity
assessment will have the development of processes and procedures as the
first step [Rad and Levin, 2002].

1.2.2 Process Areas, Common Features, and Key Practices Key process areas are
clusters of related
Maturity levels above Level 1 are composed of several KPAs, and activities that, when
each KPA is organized into five sections called common features. The performed
collectively, achieve a
common features contain the key practices that, when collectively
set of goals
addressed, accomplish the goals of the KPA. This is illustrated in figure 5. considered to be
important for
KPAs are specifically associated with the capability being measured. establishing process
They are building blocks that indicate what an organization should do to capability.
improve its process. KPAs identify the issues that must be addressed to
achieve a maturity level.

Within each KPA, the common features represent attributes that

indicate whether the implementation and institutionalization of a KPA are
effective, repeatable, and lasting. In this regard, the BD-CMM blends the
nomenclature of the Software and People CMMs, resulting in the

Maturity Levels 1. Initial

Maturity Levels 2. Repeatable
3. Defined
4. Managed
Indicate Contain 5. Optimizing

Process Areas where an

Capability
Key Process Areas (KPAs)
Key Process Areas (KPAs) organization should focus
to improve its process.

Achieve Organized by

Goals Common Features • Commitment to Perform

Common Features • Ability to Perform
• Activities Performed
• Measurement
Address Contain • Verification

Implementation/ Key Practices • Essential process

Institutionalization Key Practices elements
• Communicate widely
applicable principles
Describe

Activities or
Infrastructure

Figure 5. CMM Structure. Like other CMMs, the BD-CMM is structured around KPAs, which have
associated key practices organized by common features.

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 Business Development Capability Maturity Model (September 2004)

following common features:

• Commitment to Perform (policy and management support)
• Ability to Perform (resources, organizational structure, and
guidance/training)
• Activities Performed (planning, performing, monitoring, and
taking corrective action)
• Measurement (status and effectiveness of activities performed)
• Verification (reviews and audits)

Finally, the key practices provide the infrastructure and activities that
contribute most to the effective implementation and institutionalization of
a KPA. Key practices are intended to communicate principles that apply to
a wide variety of environments and organizations, that are valid across a
range of applications, and that will remain valid over time. Thus, the
approach is to describe the principles and leave their implementation up to
each organization, according to its culture and the experiences of the
developers.

Representative key practices from the BD-CMM are provided in the

shaded boxes in figure 6.
Level 3: Defined
KPA: Solution Development

Commitment to Perform
The organization follows a documented procedure for planning and managing its
offerings to customers.
Ability to Perform
Adequate resources and funding are available for participation with customers early in
their purchasing cycle.
Activities Performed
Based on customer needs, a capabilities assessment is conducted, and an action
plan is prepared to position the company favorably with its customers.
Measurement
Measurements are made and used to determine the effectiveness of the solution
development process.
Verification
Senior management reviews solution development activities on a periodic basis.

Figure 6. Representative Key Practices of the BD-CMM. Sample practices

from the Solution Development KPA illustrate their alignment to common features
within the model.

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 Business Development Capability Maturity Model (September 2004)

1.3 How Can the BD-CMM Guide Improvements?

The BD-CMM provides two levels of guidance for implementing
practices in an organizational improvement program:
• Strategy guidance for use in developing the organization over time
• Practical guidance that an organization can use to solve problems
or shortcomings in its BD activities.

BD-CMM guidance does not specify explicit practices to be deployed.

It sets a framework for selecting and tailoring practices to the
organization’s history, culture, and environment.

The BD-CMM also does not provide guidance on how to implement

the improvement program itself. It is a roadmap for BD capability growth
and can be coupled with various methodologies (e.g., Six Sigma) through
which to implement actual improvements.

As embodied in its four KPCs, the BD-CMM’s primary focus is on the

progression within the overall model. That is, it provides the specific
improvement paths needed to maximize the efficiency and effectiveness of
a BD organization and related operation within each of the KPCs, as
outlined in the following paragraphs.

1.3.1 Customer KPC: The Path to Increasing Customer

Value
The “Customer” KPC focuses on how to increase customer focus in
the BD organization. It shows the progression KPC: Customer
linking the KPAs across the four levels:
BD-CMM Theme: Increasing
• At Level 2, the “Response Generation” Levels Customer Value
KPA represents a cluster of related activities 5. Optimizing Innovation/Transformation
aimed at achieving the ability to respond 4. Managed Relationship Management
effectively and efficiently to customer-
3. Defined Solution Development
specified requirements. This encompasses
responses ranging from sales letters to 2. Repeatable Response Generation
proposals to oral presentations or 1. Initial Ad Hoc
demonstrations.
• At Level 3, “Solution Development” indicates a higher maturity
level in increasing customer value through collaboration with the
customer in developing requirements and preferred solutions.
• At Level 4, “Relationship Management” implies an even closer
working relationship between buyer and seller extending to the
seller’s understanding of the buyer’s customers.
• Finally, at Level 5, in the “Innovation and Transformation” KPA,
the emphasis is on partnerships with customers and on assuring

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 Business Development Capability Maturity Model (September 2004)

seamless boundaries in communications as the organization works

to continually improve its customer collaboration activities.

1.3.2 Focus KPC: The Path to Improving Performance and

Synergy
The “Focus” KPC addresses how to improve BD performance and
organizational synergies and is provided in two parts, a “management
thread” and a “quality thread.” It shows the progression linking the KPAs
across the four levels:
• At Level 2, the combined management and KPC: Focus
quality threads include two KPAs, BD-CMM Theme: Improving
“Business Development Administration” Levels Performance and Synergy
and “Quality Control,” respectively. 5. Optimizing Innovation/Transformation
Together, they depict an organization that is 4. Managed Enterprise Influence
beginning to make its BD activities more Quantitative Process
systematic by having defined procedures Management

and consistent decision criteria for 3. Defined Organizational Tactics

Quality Management
managing BD activities. Concurrently, the
2. Repeatable BD Administration
organization is defining initial quality
Quality Control
techniques applicable to business
1. Initial Ad Hoc
development and is applying them to BD
operations.
• Going beyond Level 2, the KPAs of the management and quality
threads become “Organizational Tactics” and “Quality
Management,” respectively. This progression reflects growth into a
leadership role for the BD organization, establishment of a BD
process group to lend consistency across the organization, and
setting up a quality program to identify and implement
improvements on a routine basis.
• As one looks beyond Level 3, the KPAs of the management and
quality threads become “Enterprise Influence” and Quantitative
Process Management.” At this level, an organization is actively
integrating BD strategies with its overall strategic planning
processes to assure alignment of organizational goals, values,
resources, and investment. This includes giving business
development a proactive leadership role across the enterprise and
embedding BD perspectives into the organization’s quantitative
process management program.
• At Level 5, the KPA “Innovation and Transformation” focuses on
creating and maintaining an organizational vision that values and
rewards continuous improvement and transforms BD operations,
while extending quality practices across the enterprise in a
dynamic environment.

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 Business Development Capability Maturity Model (September 2004)

1.3.3 People KPC: The Path to Building Competencies and

Teams
The “People” KPC seeks to build competencies and teams within the
BD operation. It shows the progression linking the
KPAs across the four levels: KPC: People
BD-CMM Theme: Building
• The focus of organizations at Level 2 is on Levels Competencies and Teams
“Individual Skills Development.” As the 5. Optimizing Innovation/Transformation
organization seeks repeatability, it looks to
develop and reward individual skills in 4. Managed High-Performance Teams
those areas needed to support BD efforts. 3. Defined Organizational
Most often, this means recognizing those Competencies Development
individuals who perform well on given BD 2. Repeatable Individual Skills
Development
activities and leveraging their skills on
subsequent efforts. 1. Initial Ad Hoc

• As the organization progresses to Level 3, the focus changes to

“Organizational Competencies Development.” That is, it seeks to
build competence into the organization rather than simply relying
on innately talented individuals, thereby offering career
opportunities in business development as a key strategy for
growing the business.
• Level 3’s emphasis on competence lays the foundation for Level 4
capability, as defined in “High-Performance Teams.” At this level,
the organization uses high-performance teams as an integral part of
its overall strategy to support business development across the
business acquisition life cycle.
• Then, at Level 5, the KPA “Innovation and Transformation”
characterizes a learning organization. In such organizations, people
at all levels are continually increasing their capacity to produce
beneficial BD results as participants in an ongoing cycle of
adapting the BD enterprise to remain viable and competitive.

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 Business Development Capability Maturity Model (September 2004)

1.3.4 Capabilities KPC: The Path to Enhancing Systems

and Processes
The “Ca pabilities” KPC plots a course for enhancing the systems and
processes that must support BD operations. It is provided in two parts, a
“process thread” and an “infrastructure thread,” that link the KPAs across
the four levels:
• The Capabilities KPC has two KPAs at KPC: Capabilities
Level 2, “Sales/Capture Procedures” and BD-CMM Theme: Enhancing Systems
“Work Environment,” which comprise the Levels and Processes
process and infrastructure threads, 5. Optimizing Innovation/Transformation
respectively. At this level, the organization 4. Managed BD System Integration
is focused on gaining control of BD Infrastructure Management
activities by defining procedures through 3. Defined BD Processes
which management can be involved at key Support Systems
points in the BD process. Along with this 2. Repeatable Sales/Capture Procedures
oversight comes the recognition that BD Work Environment
efforts must be supported in definitive 1. Initial Ad Hoc
ways.
• Moving to Level 3, the process and infrastructure threads focus on
“Business Development Processes” rather than procedures and on
“Support Systems” rather than fundamental aspects of the BD
work environment. At this level, a standard BD process is used
across the entire organization, yielding consistency and managed
improvement. There is also strong emphasis on establishing and
maintaining suitable infrastructure to promote successful BD
operations across the business acquisition life cycle.
• Going beyond Level 3, the process and infrastructure threads at
Level 4 become “BD System Integration” and “Infrastructure
Management,” respectively. This is embodied in integrated
processes and systems across all enterprise operations, supported
by a coherent strategy for managing and adapting the BD
infrastructure for maximum support.
• Then, at Level 5 the KPA “Innovation and Transformation”
translates into a culture that emphasizes a process of ongoing
optimization of both processes and infrastructure. This represents a
dynamic environment focused on doing whatever is needed to
transform organizational support and encourage flexibility and
adaptability.

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 Business Development Capability Maturity Model (September 2004)

1.4 How Can Organizations Benefit from BD-CMM?

The benefits of better workforce practices have been demonstrated
empirically in numerous studies [Labor, 1993; Mavrinac, 1995].
Companies with the best workforce practices have been shown to
outperform other firms in the growth of profits, sales, earnings, and
Benefits reported
dividends. from the SW-CMM
include:
As an example, SEI CMMs have been shown to provide the following Return on
benefits: investment of 7:1
Average gains in
• Improve the ability of an organization to meet goals for cost, productivity of
schedule, functionality, and product quality 37% per year
Reduced initial
• Establish a yardstick against which it is possible to judge, in a defects by 18%
repeatable way, the maturity of an organization’s process and per year gain in
compare it to the state of the practice in the industry defects found in
pre-test
• Improve productivity, quality, and time to market [Hersbsleb, Reduced time to
1994] market of 19%
Reductions in
• Facilitate planning improvements to processes filed error reports
per year of 45%
• Improve management visibility into the process
Comparable results
in BD capability
The BD-CMM focuses on securing the same kind of improvements for would mean:
BD practices within organizations. Best-in-class attributes, based on the Dramatically
APMP Benchmark Study 2002, indicate that improvements in BD improved win
rates and capture
processes will lead to: ratios
• Enhanced effectiveness and efficiency Reduced percent
cost of sales
• Improved predictability Reduced labor
costs and
• More accurate projections of revenue turnover rates
• Increased control Managed growth
and profitability
• More precise understanding of business development costs
• Improved management visibility into business development

A good way to illustrate these benefits is to conceptualize how

management visibility might be improved in the BD process. Immature
BD processes typically result in the organization (a) being unable to
control costs associated with pursuing business – a major management
issue, and (b) having no management mechanisms through which to
influence the probability of winning key programs.
• At risk in terms of cost control is the corporate “bottom line,”
which is directly affected by the cost of sales.

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 Business Development Capability Maturity Model (September 2004)

• At risk in terms of ability to influence win probability is the short-

and/or long-term viability of the business itself.

Increased management visibility (as part of overall growth in process

maturity levels) leads to a proactive posture through which the future of
the enterprise can be managed for both growth and profitability.

The most dramatic illustration of the benefit is highlighted in figure 7.

Companies that invest in their BD capability in appropriate ways win
more of the contracts they pursue (as evidenced in “win rate”); more
importantly, they consistently win the high-value, strategic programs upon
which their long-term viability is based (as evidenced in “capture ratio”).

BD-CMM Levels 1/2 BD-CMM Level 3 BD-CMM Levels 4/5

Legend:
Legend:
Win
Win Rate
Rate == Number
Number of of Project
Project
Won ÷÷ Number
Won Number of of Projects
Projects Bid
Bid
Capture
Capture Ratio
Ratio == Value
Value of
of Projects
Projects
Won ÷÷ Value
Won Value of
of Projects
Projects Bid
Bid

Win Capture Win Capture Win Capture

Rate Ratio Rate Ratio Rate Ratio
Figure 7. Emerging Benchmark Concept. Results of APMP Benchmarking
Study 2002 suggest that growth in BD capability results in dramatic
improvements in “bottom line” performance in competitive environments.

In defining the “path” to higher levels of capability, the four KPCs of

the BD-CMM define a progressive series of improvement initiatives that
lead to higher performance. These initiatieves are embodied in the KPAs
and summarized in Table 1.

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 Business Development Capability Maturity Model (September 2004)

Table 1. Improvement Paths within the BD-CMM

KPC: Customer BD-CMM path to increasing customer value:
BD-CMM Theme: Increasing
Levels Customer Value • Increasing recognition of the customer as the basis for
5. Optimizing Innovation/Transformation competitive discrimination
4. Managed Relationship Management
• Growing reliance on value propositions as the basis for
3. Defined Solution Development
customer interactions
2. Repeatable Response Generation
1. Initial Ad Hoc • Decreasing reliance on proposals in favor of solutions and
innovations as bases for increasing value

KPC: Focus BD-CMM path to improving performance and synergy:

BD-CMM Theme: Improving
Levels Performance and Synergy • Progressing from reactive to proactive management involvement
5. Optimizing Innovation/Transformation • Increasing leadership role of the BD management team
4. Managed Enterprise Influence
Quantitative Process
• Growing influence of BD-related perspectives and needs on the
Management process of running the business
3. Defined Organizational Tactics
• Increasing reliance on data and emerging needs as drivers in
Quality Management
2. Repeatable BD Administration
management decision-making
Quality Control
1. Initial Ad Hoc

KPC: People BD-CMM path to building competencies and teams:

BD-CMM Theme: Building
Levels Competencies and Teams • Increasingly sophisticated interactions within teams to promote
5. Optimizing Innovation/Transformation winning solutions and long-term value
4. Managed High-Performance Teams • Decreasing reliance on “heroes” in favor of broader
3. Defined Organizational organizational competence
Competencies Development
• Growing emphasis on learning organizations as competitive
2. Repeatable Individual Skills
Development drivers
1. Initial Ad Hoc

KPC: Capabilities BD-CMM path to enhancing systems and processes:

BD-CMM Theme: Enhancing Systems
Levels and Processes • Increasing use of resources and infrastructure to improve
5. Optimizing Innovation/Transformation competitive performance
4. Managed BD System Integration • Growing capabilities based on meaningful systems and
Infrastructure Management
processes that continuously evolve in response to competitive
3. Defined BD Processes
Support Systems environments
2. Repeatable Sales/Capture Procedures • Increasingly sophisticated levels of integration of BD with
Work Environment
enterprise systems
1. Initial Ad Hoc

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 Business Development Capability Maturity Model (September 2004)

Chapter 2.
BD-CMM Level 2: Repeatable

The key practices contained in this chapter cover Level 2 of the BD-
CMM: Repeatable. At this level, the following is usually true of process
capability and management visibility: BD-CMM Level 2 is
characterized by a
• Basic processes are established to track cost, schedule, and business development
functionality, and the necessary discipline is in place to repeat process that
earlier successes on business development opportunities with addresses individual
similar applications. opportunities through
the reuse of past
• Management has visibility into the business development process practices.
only at transition points and major milestones.

Key practices for the following KPAs in the BD-CMM, Level 2,

Repeatable, are provided in this chapter.
• Response Generation (page 15)
• Business Development Administration (page 20)
• Quality Control (page 24)
• Individual Skills Development (page 27)
• Sales/Capture Procedures (page 32)
• Work Environment (page 35)

2.1 Key Process Category: CUSTOMER

The Customer KPC for BD-CMM Level 2 has one KPA, “Response
Generation.” The Response
Generation KPA
2.1.1 Key Process Area: Response Generation covers activities for
understanding
This KPA is characterized by the organization’s achieving the specific customer
requirements and
results stated as goals for this KPA. needs and for
preparing a response
Goals (KPA: Response Generation) to the customer as the
basis for a
The goals for this KPA are as follows:
transaction.
• Manage the generation of customer responses based on
documenting, approving, and reviewing opportunities and their
related response plans
• Build on past successes by standardizing reuse data and training
individuals in relevant techniques of customer response

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 Business Development Capability Maturity Model (September 2004)

Commitment to Perform (KPA: Response Generation)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure for generating
responses to customers. Typically,
documented
• An organizational role is assigned responsibility for response procedures specify
that:
generation.
Responses are
Examples of individuals who may be assigned responsibility for planned in
accordance with
response generation are: specific
guidelines.
Sales person
Requirements
Proposal specialist are reviewed and
documented
Capture manager before responses
are generated.
Proposal manager
Lead technologist
Chief engineer
Business manager

Ability to Perform (KPA: Response Generation)

The preconditions that are necessary for an organization to implement
this KPA involve:
• An individual is assigned responsibility to assure that responses are Typically, adequacy
generated to customers. of resources and
funding is defined in
Examples of individuals who may be assigned responsibility for terms of response
various response-generation activities include: teams having the
following available:
Subject matter experts Descriptions of
the response
Technical experts process,
standards, and
Customer service personnel methods
Financial specialists Sufficient infra-
structure
Project managers resources
(including office
Proposal support personnel space, standard
business support
Contracts/procurement specialists tools, and
systems)
Cost analysts
Funding as part
Production/graphics specialists of an established,
overall sales
• The organization provides adequate resources and funding for function that
includes reserves
generating responses to customers. for contingencies

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 Business Development Capability Maturity Model (September 2004)

• Individuals receive guidance in methods relevant to response

generation responsibilities.
Sample topics covered in such guidance include:
Response generation process
Available support systems and personnel resources
Available tools and techniques
Applications training (solutions training)
Development of a win strategy and win theme statements
Appropriate use of reusable materials
Competitive positioning
Writing techniques such as use of persuasive dialog, active
voice, etc.
Use of standards
Use of proposal strategies

Activities Performed (KPA: Response Generation)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
Types of formal
• Response teams document and review customer requirements reviews include:
before generating responses. A bid review to
make an
For example, such reviews may include the following: informed decision
about whether to
A solution worksheet is used to evaluate customer continue
positioning for
requirements. the opportunity
The account plan is reviewed for additional insight. Initial
management
A needs-benefit analysis is conducted. review to validate
the win strategy
• Response teams prepare and follow response plans for responses, and solution/cost
based on documented procedures. approach
A formal review
A sample response plan may have the following characteristics: toward the end of
the process to
A win strategy is developed. validate that the
proposal “sells”
Necessary resources and funding are documented.
A final senior
A work breakdown structure (WBS) and WBS dictionary are management
prepared. review before
response
A schedule is prepared. submission
Often, this involves
Risks are identified and analyzed to determine potential such progressive
impact. reviews as pink, red,
and gold teams.

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 Business Development Capability Maturity Model (September 2004)

A thorough compliance checklist is included.

Reusable materials (boilerplate) are used appropriately.
• Responses are prepared in accordance with customer needs,
instructions, and requirements.
• Formal reviews are conducted at selected milestones to address
initiation and progress of response development.
Sample objectives of the reviews may be to:
Perform a legal review
Monitor each volume, section, and subsection
Keep team members informed of the proposal status
Identify any problems early in the process
Check compliance with customer and company requirements
• Peer review meetings are held regularly throughout the response
generation process.
Peer reviews (or core team reviews) should be held at critical
points in the process, such as during proposal update meetings and
status and compliance review meetings. Sample objectives of such
meetings are to assure:
Compliance with customer requirements
Implementation of the agreed-upon strategy
Consistency among volumes
Schedule adherence
• Kickoff meetings for response generation are held with the entire
team.
Kickoff meetings may be either virtual or in person. They focus
attention of all response generation participants on the task at hand.
Sample objectives of this meeting include:
Communicate the win strategy
Initiate the proposal effort for all contributors
Answer questions about the opportunity
Make writing assignments
Coordinate upcoming activities
Create a cohesive team
Foster team buy-in on the overall strategy, schedule, format,
file management, resource management, outline, and the
baseline offering

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 Business Development Capability Maturity Model (September 2004)

Sample participants include:

Core team members
Key managers
Subject matter experts
Customer service or account managers
Key marketers
Key engineers
Cost analysts/cost engineers
Selected members of the extended proposal team
The proposal manager, supported by the sales/capture or account
manager, typically conducts the meeting
• Information from responses is collected in order to begin to
develop a database for use on future solutions.
Sample elements of the database may include:
Proposal lessons learned
Checklists
Templates for a solution development and other plans
Reuse materials
Indexed key words to facilitate future reference

Measurement (KPA: Response Generation)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the status of
activities for response generation.
Examples of measurements include:
Staff utilization rates
Status of activities for response generation
Dollars spent on response generation versus dollars won
Dollars spent on response generation versus dollars lost
Win/loss statistics
Production costs, i.e., cost per unit/cost per page
Statistics by client size and industry type
Funnel management statistics
Overtime measures
Cost of sales to revenue for business development
Advance shipping and delivery compliance

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 Business Development Capability Maturity Model (September 2004)

Verification (KPA: Response Generation)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews response generation activities on a
periodic basis.
These reviews verify that:
The response generation procedure is followed.
Response plans (content) are followed.
Non-compliance issues are addressed.
• The response manager reviews response generation activities on a
periodic and event-driven basis.
These reviews verify that:
The response generation procedure is followed.
Response generation plans are followed.
Customer requirements are documented.
Appropriate metrics are collected and reported.
Formal reviews are conducted for each response.

2.2 Key Process Category: Focus

The Focus KPC for BD-CMM Level 2 includes two KPAs, “Business
Development Administration” and “Quality Control.”
The Business
Development
2.2.1 Key Process Area: Business Development Administration KPA
Administration defines the
administrative
infrastructure
This KPA is characterized by the organization’s achieving the specific necessary to maintain
results stated as goals for this KPA. the required
discipline in the
Goals (KPA: BD Administration) business development
process and to
The goal for this KPA is as follows: monitor performance
and manage
• Plan and administer BD activities in accordance with defined resources across
procedures and consistent decision criteria. multiple
opportunities.
Commitment to Perform (KPA: BD Administration)
To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure for BD
administrative management.

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 Business Development Capability Maturity Model (September 2004)

This procedure typically specifies that:

Senior management provides oversight of business
development administration.
Under-capacity issues are recognized and addressed.
• An organization role is assigned responsibility for managing BD
administration activities.
Examples of individuals who might perform this function are:
Vice President of Marketing
Vice President of Sales
Vice President of Business Development
Branch Managers
Channel Managers
Product Managers

Ability to Perform (KPA: BD Administration)

The preconditions that are necessary for an organization to implement
this KPA involve:
• The organization provides adequate resources and funding for BD
administration activities.
Sample indicators of resource and funding adequacy include:
Established tools are available to support required business
development tasks. Typical tools for BD
administration
Funding mechanisms are established to support business include account
development. planning software,
sales management
Appropriate levels of authority and accountability are assigned software, budget
to those designated to lead pursuit efforts. planning software,
and response
• Individuals are assigned responsibility for assuring that BD generation
spreadsheets.
administrative activities are performed.
In addition, most
Examples of individuals who might perform this function are: organizations employ
standardized
Sales Manager methods for sales &
marketing budget
Human Resources or Personnel Manager planning, revenue
forecasting, etc.
Operations Manager
Sales Planning Manager
Proposal Center Administrator
Facilities Manager
Business Development Administrators

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 Business Development Capability Maturity Model (September 2004)

Market Researchers/Analysts
Business Intelligence Analyst
Business Developers
• Individuals responsible for performing BD administrative activities
are trained in the organization’s BD administration practices.
Typical topics covered in this training include:
Product development management
Funnel management
Proposal generation
Managing the sales force
Tracking tools
Customer acquisition processes
Report generation processes

Activities Performed (KPA: BD Administration)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• Objective new revenue (sales) criteria are established for each
sales/business/selling unit.
Examples of such criteria include sales quotas, revenue quotas, and
product quotas or product mix.
• Potential improvements in process, tools, or resources, which
could enhance sales performance, are identified, and actions are
taken to provide them.
Sample actions might include:
Gap closure and sales competency training is provided.
Databases, archival tools, and sales tracking tools are available.
• Sales opportunities and internal funding are tracked, subjected to
management approval, and reviewed periodically.
Samples of items to be tracked include:
Capital and expense budgeting
Funding authorization for individual pursuits
Discretionary project budgeting
• Progress against unit sales plans is periodically evaluated,
discussed, and documented.

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 Business Development Capability Maturity Model (September 2004)

• Those responsible for managing BD practices maintain an

awareness of each sales unit’s performance.
Common criteria for
An example of techniques to maintain such awareness is sales guiding selection are:
funnel/pipeline analysis. “Top 10”
opportunity lists
• Those responsible for managing sales units maintain ongoing
Funnel
communication about sales performance from those performing management
sales activities within their unit. Target customer
• A consistent method is defined and documented for reviewing and lists
Corporate
providing formal feedback on sales performance on a periodic or strategies
event-driven basis.
Sample methods might include:
Opportunity-specific checklists are used to track procedural
compliance of individual pursuits.
Results of sales review meetings are summarized and
disseminated from the account to the branch to the segment to
the enterprise, as applicable.
Debriefs, both internal and external, are conducted.
• The organization periodically reviews its new revenue criteria to
determine their appropriateness under changing business or
organizational conditions and, if necessary, revises them.
• Competitor awareness is maintained on an opportunity-by-
opportunity basis.

Measurement (KPA: BD Administration)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the status of the
activities for BD administration.
Examples of measurements include:
Lead tracking
Bid/no-bid tracking
Revenue targets, both actual or projected
Revenue gap analysis
Delivery log
Timeliness of bid/no-bid decisions
Funnel analysis
Effectiveness of win-ratio, as it relates to the tools used to
uncover opportunities

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Verification (KPA: BD Administration)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews BD administration procedures and
activities on a periodic basis.
These reviews verify that:
Administrative activities are planned and executed.
Tools are available to support required business development
tasks.
Non-compliance issues are resolved.

2.2.2 Key Process Area: Quality Control The Quality Control

KPA encompasses
This KPA is characterized by the organization’s achieving the specific activities for
results stated as goals for this KPA. controlling quality of
business development
Goals (KPA: Quality Control) outputs, both internal
and external to the
The goal for this KPA is as follows: performing
organization.
• Define quality standards applicable to business development and
apply them to BD operations

Commitment to Perform (KPA: Quality Control)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure for
implementing BD quality control activities.
For example, this procedure might specify that:
The business development manager promotes quality
management actions.
A representative from the organization’s quality
assurance/control department is aligned with business
development initiatives.
Reviews are undertaken to see whether results conform to
requirements.
A quality certificate is signed off at each hand-off point.
A packing checklist is supplied to the client with the proposal,
and a copy is retained.
• An organizational role is assigned responsibility for assuring that
BD quality control activities are performed.

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An example of individuals who might assist or advise units on

quality control activities is representatives from the organization’s
quality assurance or quality control department.

Ability to Perform (KPA: Quality Control)

The preconditions that are necessary for an organization to implement
this KPA involve:
• The organization provides adequate resources and funding to
support quality control activities.
• Training is provided for quality control personnel relevant to BD
activities.
• Business development team members receive an orientation on
quality control.
Sample topics covered in orientation sessions include:
Performance of quality assurance and quality control
throughout the response generation process
Overview of quality assurance tools and techniques; i.e.,
benefit-cost analysis, benchmarking, standards, checklists, and
packing lists
Overview of quality control tools and techniques; i.e.,
inspections, internal and external reviews, and charts derived
from root-cause analysis

Activities Performed (KPA: Quality Control)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• Activities affecting BD quality are identified.
Typically, it’s
For example, these activities might include: important for quality
Customer requirements are assessed for quality requirements. personnel to
understand the
Documentation requirements for quality management are following aspects of
specified. business
development:
• Quality control activities are planned and conducted routinely. Sales
methodology
Sample issues to be addressed include: Proposal
An objective is to review lessons learned that may improve procedures
future performance and performance on this specific initiative. Best and final
strategies
Standards are established to determine whether the response Applicability of
conforms to specifications. quality control
policies and
Quality control tools are used to assure that results conform to procedures
customer requirements.

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Data collected using quality control tools are analyzed and

evaluated.
Causes of nonconformance are identified, researched, and
resolved.
Corrective action is performed as appropriate.
An internal, post-mortem is held, and lessons learned are
documented.
• Historical metrics are maintained for individual opportunities.
For example, metrics might include:
Costs associated with each response are maintained.
Effectiveness (win/loss) statistics are maintained for each
pursuit.

Measurement (KPA: Quality Control)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the cost and
schedule status of quality control activities.
Examples of measurements include:
Amount of rework required
Number of inspections and audits conducted
Compliance with sales team requirements

Verification (KPA: Quality Control)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews quality control activities relative to
business development on a periodic basis.
These reviews verify that:
Inspections and audits are conducted according to plans and
using established procedures.
Non-compliance issues are resolved.

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2.3 Key Process Category: PEOPLE

The People KPC for BD-CMM Level 2 includes one KPA, “Individual
The Individual Skills
Skills Development.” Development KPA
focuses on providing
2.3.1 Key Process Area: Individual Skills Development participants in
business development
This KPA is characterized by the organization’s achieving the specific with the individual
results stated as goals for this KPA. training necessary for
them to complete
assigned tasks.
Goals (KPA: Individual Skills Development)
The goals for this KPA are as follows:
• Develop and reward individual skills in areas required to acquire
new business
• Recognize outstanding individual performance in BD efforts and
leverage such individual skills on subsequent BD efforts

Commitment to Perform (KPA: Individual Skills Development)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure for its BD
training program.
For example, as part of the program, the procedures followed Typical items
might include: included in a
documented
Training activities serve the business objectives and stated procedure for BD
values of the organization. training include:
Criteria for
Training requirements for critical business development skills attendee
are identified. selection
Evaluation of
The organization’s business development training schedule is course quality
developed and published. and applicability
Identification of
Individuals are made aware of the training that is offered in a internal/external
timely manner. courses required
for specific skill
The organization’s training budget is established. levels
Training to support the performance of assigned Success rate
responsibilities is provided in a timely manner.
Training opportunities are provided to support individual
development activities.
Training time is allocated for each individual.
The organization’s BD training program is reviewed and
periodically revised as appropriate.

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• An individual or group is assigned responsibility for fulfilling the

business development training needs of the organization.
Examples of individuals who might be assigned responsibility for Typical procedures
various training activities include: for recognition and
reward specify that:
A business development manager
Performance is to
A training committee be measured,
where possible,
An empowered, high-performance team against objective
criteria
A member of the human resources group Outstanding
performance is
A proposal manager (just-in-time training) recognized, and
rewarded, when
• The organization follows a documented procedure concerning appropriate
individual performance recognition and rewards. Recognition and
rewards can be
For example, appropriate recognition and reward procedures might made on a
be defined, documented, and used for items such as: periodic or
occasional basis
Identifying those responsible for recognition and reward
Recognition and
activities rewards are
made to reinforce
Defining the purposes of recognition and rewards the skills and
behaviors that
Defining the basis for awarding special recognition or making the organization
rewards values

Communicating the structure of the recognition and reward

system
Determining appropriate recognition and rewards
Providing recognition and reward information to individuals
Establishing and maintaining equity in the recognition and
rewards system
Publicizing recognition and rewards

Ability to Perform (KPA: Individual Skills Development)

The preconditions that are necessary for an organization to implement
this KPA involve:
• The organization provides adequate resources and funding for
individual BD training.
Examples of such resources include tools and instruments to
support training activities, such as:
Templates for training needs analysis
Skill inventories
Lists of training opportunities available
Materials for developing training

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Other examples address support for implementing training Ideally, experienced

activities, such as: individuals who have
BD expertise and in
An established training budget training methods and
procedures are
Training materials made available to
conduct training or
Development or procurement of training training-related
activities.
Delivery of training
Contributions that
Training facilities and equipment could be made by
those with special
Evaluation of the quality and effectiveness of the training and skills include:
maintenance of training records Assistance in
training needs
Time allocated for training analysis

• Individuals in the training organization receive guidance on the Knowledge of

sources for
necessary skills and knowledge to assess requirements regarding relevant training
needed BD training. opportunities
Application of
• The organization provides adequate resources and funding for instructional
individual recognition and reward activities. system design
principles, course
One important resource is experienced individuals who have development
expertise in recognition and reward programs to guide these processes, and
methods to
activities. Such individuals might add the following values: effectively
develop and
Designing and revising a recognition and reward program conduct training
Determining criteria for making rewards Evaluating
learning, the
Participating in recognition and reward decisions transfer of
learned skills to
Another important resource is tools to support recognition and the BD
reward activities, such as: environment, and
the return on
Recognition and reward guidelines investment

Repositories of previously defined recognition and reward

criteria; i.e. space for recognition announcements in
organizational media and standard forms for documenting
recognition and reward activities
Funding for recognition and reward activities

Activities Performed (KPA: Individual Skills Development)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• The organization identifies critical BD skills and training needs.
For example, a gap analysis might be conducted so that the
knowledge, skills, and competencies of those persons assigned to
BD initiatives are compared to those required to determine whether
training is needed. Such methods for evaluating training needs may
include:

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Individual training needs assessment Critical skills are

Review of individuals’ previous experience those that, if not
performed
Review of performance versus training needs effectively, could
jeopardize the
Knowledge, skills, and competency assessment tests successful
performance of a
• Individuals and/or groups receive the training they need to perform critical task.
their business development tasks. A critical task is
one that could
• Those responsible for training develop and maintain a plan jeopardize the
successful
specifically for BD training, and training is tracked against the performance of
plan. the assignment.

The purpose of this plan and training program is to: The identification
of critical skills is
Support the development of business development knowledge, updated
periodically.
skills, and competencies in the organization
Increase the skills and capabilities of capture and proposal
teams to achieve higher levels of success Typical guidelines for
Enhance competencies in business development developing a training
program include:
Support individual career development Training
alternatives are
Sample principles for tracking progress against the BD training evaluated to
plan include: determine which
one provides the
Performance is routinely reviewed against the training plan. most effective
mechanism for
When performance deviates significantly from the plan, developing the
corrective action is taken. required
knowledge and
• Potential improvements that could enhance individual performance skills.
are identified, and actions are taken to provide them. Training content
is evaluated to
• Objective performance criteria are documented to provide assure it covers
all the knowledge
feedback on individual performance on a periodic or event-driven and skills needed
basis. by the individual
or group.
Sample principles for performance criteria include: To the extent
The criteria for each individual’s job performance might possible, training
is provided to
include both individual criteria and team criteria, as improve
appropriate. knowledge and
skills for their
Criteria for each individual’s job performance are not in timely application
conflict with the team’s performance criteria. in performing
assigned tasks.
Individuals participate in developing their performance criteria. Individuals and
groups provide
Individuals agree to and approve their performance criteria. feedback on the
quality and
Individual performance criteria are documented. usefulness of the
training they
Implementation of these principles might include preparing receive.
development plans for individuals in BD functions. Such plans

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might be created jointly between the individual and their managers,

using the following information:
Career objectives
Knowledge, skills, and competencies to enhance performance
in the current assignment
Skills needed to progress toward career objectives
A plan for developing the skills required for the potential next
assignment

Measurement (KPA: Individual Skills Development)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the status of
individual skill development.
Examples of measurements include:
Evaluation of skills against information received during
internal debriefs
Evaluation of individual skills against the job description
Evaluation of training completed against the training plan
• Measurements are made and used to assess the effectiveness of the
BD training that is provided.
Examples of measurements include:
Productivity factor improvement (learning curve)
Evaluation of how individuals apply new skills
Training scheduled versus training completed
Quality of training as rated in student evaluations
Knowledge, skills, and competencies assessments
Retention of trained skills
Improvements in learned skills

Verification (KPA: Individual Skills Development)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Business development management periodically reviews the
organization’s training activities to determine if they are being
conducted in accordance with established procedures and quality
expectations.

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These reviews verify that:

All team members are making progress in fulfilling their
commitments.
Training is provided as required.
Training activities comply with the organization’s policies and
stated values.
Training activities are performed according to plans.
All actions related to developing and implementing training
plans are periodically reviewed to assure they conform to the
documented policies
Non-compliance issues are resolved.
• Business development management periodically and on an event-
driven basis reviews the performance of individuals in accordance
with the individual development plans.
These reviews verify that:
Personal development plans are prepared.
Performance achievements conform to plans.
Non-compliance issues are resolved.

2.4 Key Process Category: CAPABILITIES

The Capabilities KPC for BD-CMM Level 2 includes two KPAs, The Sales/Capture
Procedures KPA
“Sales/Capture Procedures” and “Work Environment.” covers the
documented and
2.4.1 Key Process Area: Sales/Capture Procedures repeatable techniques
employed for making
This KPA is characterized by the organization’s achieving the specific a sale and developing
business.
results stated as goals for this KPA.

Goals (KPA: Sales/Capture Procedures)

The goal for this KPA is as follows:
• Gain control of BD activities based on obtaining management
approval for each pursuit and by documenting and reviewing
sales/capture plans

Commitment to Perform (KPA: Sales/Capture Procedures)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure for its
sales/capture activities.

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This procedure typically specifies that:

The objectives are to identify opportunities, assess the
environment, and implement winning strategies.
Action-oriented pursuit plans are prepared and scaled as
appropriate, for each opportunity.
Pursuit planning will lead to improved bid decisions.
Pursuit plans and procedures provide greater consensus and
information transfer among individuals pursuing each
opportunity.
Senior management approval is obtained for each plan that is
prepared.
Regular reviews are held to assess progress, resolve conflicts,
obtain feedback, made adjustments, and reevaluate the pursuit
and bid decisions.
• An organizational role(s) is assigned responsibility for
sales/capture procedures, including decision-making and support.
Examples of individuals who might perform this function include:
Sales Vice President
Business Development Director or equivalent
Sales Team Manager

Ability to Perform (KPA: Sales/Capture Procedures)

The preconditions that are necessary for an organization to implement
this KPA involve:
• The organization provides adequate funding and resources for
performing sales/capture activities.
• Sales/capture leaders receive training in methods in leading
sales/capture efforts.
Examples of typical topics covered in this training include:
Capture management
Funnel management
Communications techniques
Strategic selling
Consultative selling
Assessing opportunities
Strength, weakness, opportunity, and threat analysis
Competitive assessment

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 Business Development Capability Maturity Model (September 2004)

Price-to-win
Customer relationship analysis
Action planning
Team leadership
Effective facilitation
Internal processes
• Non-BD participants in the BD process receive an orientation to
the objectives, principles, and methods of sales/capture techniques.
Examples of typical topics covered in this orientation include:
Capture methodology
Strategic selling
Consultative selling
Communications techniques
Internal capture process
Just-in-time approaches
Storyboarding
Reviews
Strategies
Background on opportunities

Activities Performed (KPA: Sales/Capture Procedures)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• Sales/capture plans are prepared according to the documented
procedure.
Sample guidance for such procedures include:
The objective is to position the organization and solution to the
exclusion of all competitors.
The plan is realistic and specific, detailing the objective, the
action, who is responsible, the schedule, and the frequency of
reviews.
Senior management approval is obtained.
• The sales/capture plan is issued and executed.
• Lessons learned are documented on the conduct and results of each
sales/capture effort through forums such as post-mortems and team
reviews.

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Measurement (KPA: Sales/Capture Procedures)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the status of
sales/capture activities.
Examples of measurements include:
Compliance with the procedure
Win/loss statistics
Bid/no-bid analysis
Completion status of call plan milestones
Progression through the project qualification process
Dollars spent versus dollars won and lost

Verification (KPA: Sales/Capture Procedures)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews the sales/capture procedures on a
periodic basis.
Typically, these reviews verify that
Sales/capture plans are prepared.
Approval is obtained for each pursuit opportunity.
Non-compliance issues are addressed.

2.4.2 Key Process Area: Work Environment

The Work
This KPA is characterized by the organization’s achieving the specific Environment KPA
results stated as goals for this KPA. focuses on
establishing and
Goals (KPA: Work Environment) maintaining the
physical
The goal for this KPA is as follows: infrastructure
necessary to support
• Provide workspaces and resources needed for BD projects a repeatable business
development process.
Commitment to Perform (KPA: Work Environment)
To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure concerning the
BD work environment.
Such guidance might include:
Workspaces are reserved for business development activities.

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Resources are available for business development activities;

i.e., hardware, software, and networking.
Security measures are in place.
• An organizational role is assigned responsibility to coordinate
workspaces and necessary resources.
Examples of individuals who might have this role are:
A facilities/environmental resources project manager
Proposal administrator or manager
Administrative staff

Ability to Perform (KPA: Work Environment)

The preconditions that are necessary for an organization to implement
this KPA involve:
• The organization provides adequate resources and funding for an Typically, assuring
adequate resources
effective BD work environment. and funding requires
• BD personnel receive guidance in the effective use of workspaces that:

and resources. Responsibility is

assigned to
Examples of typical topics covered in this guidance include: analyze the
environment in
Evacuation procedures order to allocate
appropriate
Housekeeping rules resources.
Disaster recovery/business contingency plans Funding is
provided for
Security procedures managing the
Network operating procedures resources
allocated.
File structures Production
Software programs facilities are
available and
reserved.
Activities Performed (KPA: Work Environment)
Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• A plan is prepared and maintained for BD workspace and resource
requirements.
Sample guidance for such plans might specify that:
A team reviews and documents specific requirements relative
to each pursuit.
Changes to the requirements are reviewed and addressed on an
as-needed basis.
• Resources needed to accomplish business development processes
are made available in a timely manner.

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 Business Development Capability Maturity Model (September 2004)

Sample resource issues critical to success include:

Effective team communication and access to shared
information are maintained for all participants.
Workspaces and resources are supported at a level (24x7,
prime shift, etc.) appropriate to the need.
Sufficient offices/cubicles and work stations are provided for
pursuit team needs.
Publishing tools are appropriate to the need.
Adequate electronic resources are available to support team
needs.

Measurement (KPA: Work Environment)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the status of BD
work environment activities.
Examples of measurements include:
Percent of first draft prepared from reuse materials
Status against the plan
Capacity utilization
Network availability and frequency of backups

Verification (KPA: Work Environment)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews the BD work environment procedures
and activities on a periodic basis.
For example, such reviews might verify that:
There is effective operation and utilization of workspaces and
resources.
Plans are prepared and maintained for workspace and resource
requirements.
Non-compliance issues are addressed.

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 Business Development Capability Maturity Model (September 2004)

Chapter 3.
BD-CMM Level 3: Defined

The key practices contained in this chapter cover Level 3 of the BD-
CMM: Defined. At this level, the following is usually true of process
capability and management visibility: BD-CMM Level 3 is
characterized by use
• All business development activities use an approved, tailored of a standard business
version of the standard process. development process
consistently across
• Management has visibility into individual activities and can the organization.
prepare proactively for any risks that may arise.

Key practices for the following KPAs in the BD-CMM, Level 3,

Defined, are provided in this chapter.
• Solution Development (page 39)
• Organizational Tactics (page 46)
• Quality Management (page 50)
• Organizational Competencies Development (page 54)
• Business Development Process (page 59)
• Support Systems (page 62)

3.1 Key Process Category: CUSTOMER

The Customer KPC for BD-CMM Level 3 has one KPA, Solution
Development.
The Solution
Development KPA
3.1.1 Key Process Area: Solution Development covers developing and
managing the process
This KPA is characterized by the organization’s achieving the specific of tailoring solutions
results stated as goals for this KPA. to customer needs and
requirements.
Goals (KPA: Solution Development)
The goals for this KPA are as follows:
• Deploy and use a standard approach to solution development that
fosters customer collaboration and assures resultant customer value
and competitive discrimination
• Promote early solution development teams and support them
through meaningful engagement of senior management

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 Business Development Capability Maturity Model (September 2004)

Commitment to Perform (KPA: Solution Development)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure for planning and
managing its offerings to customers. Typically, the
objectives of this
For example, this procedure might specify that: procedure are to:
Emphasize and
Resources and costs for solution development are estimated facilitate
and managed. proactive
collaboration with
A schedule for solution development is prepared and managed. customers

Resources are assigned and allocated before receipt of the Set forth a
standard solution
Request for Proposal (RFP). development
process to follow
Risks are identified, assessed, documented, and managed for that includes a
each solution. bid/no-bid
question list
Historical solutions and other baselines are applied.
Project performance measurement techniques are used.
Non-disclosure agreements are prepared and executed.
Customers are contacted, and the competitive environment is
assessed before the actual receipt of the RFP.
A win strategy and win themes are developed before the RFP is
released, as it is the documentation that describes what the
organization must say in response and do to win.
Periodic reviews are conducted throughout the solution
development process.
• An organizational role(s) is assigned for solution development.
Examples of individuals who might assist or advise units on
solution development include:
Proposal managers
Program managers
Product engineers
Competency managers
Sales teams
Subject matter experts (SMEs) and domain experts
Business developers
Market analysts
Capture managers
Chief Information Officer
Chief Technology Officer

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 Business Development Capability Maturity Model (September 2004)

Ability to Perform (KPA: Solution Development)

The preconditions that are necessary for an organization to implement
this KPA involve:
• An individual(s) is assigned responsibility for solution
development.
Examples of individuals who might be assigned responsibility for
solution development include:
SMEs
Business development leads
Technical design experts
• The organization provides adequate resources and funding to
manage solution development using the defined process and to
participate with customers early in their acquisition cycle.
Examples of sales/capture costs include:
Research and development (R&D)
Typically, adequacy
Visits to customer premises of resources and
funding is defined so
White papers/briefings that
Demonstrations Sales/capture
team personnel
Advertising can assure
customers of
Trade shows solution viability
through SMEs
Speeches and presentations and marketers

Telephone calls Funding and

personnel
Direct mail and e-mails resources are
allocated in
Identifying teaming partners advance of the
RFP release or
Product/service trials or prototypes as a need is
identified.
Market research Current
product/service
Competitive intelligence application
information is
Trade studies available
Segmentation studies SMEs are
available for
Examples of costs that may be allocated include: initial needs
assessment
Funding the solution development team as a separate entity
reporting to unit management
Design or engineering development
Customer demonstrations
Customer presentations
Customer requirements definition

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 Business Development Capability Maturity Model (September 2004)

Facilities and equipment In managing solution

Production and reproduction development,
adequacy of
Oral and written proposal preparation and rehearsal resources and
funding is defined as
Language translations having the following
available:
Travel Experienced
personnel with a
Shipping/delivery BD orientation
and with
• Responsible individuals receive guidance in tailoring the expertise in
organization’s standard solution development process to meet customer
specific customer needs and in the use of related process assets. solutions
Estimating
Sample topics covered in such guidance include: guidelines
Tailoring the win strategy Database
servers,
Identifying and articulating the “hot buttons” software, and
documentation
Performing competitive analysis management
systems
Identifying customer business Senior
management for
• BD managers receive required guidance in managing solution decision making
development based on the defined process. People to serve
Examples of topics covered in solution development guidance as reviewers who
will remain
include: constant
throughout the
The importance of focusing on customer needs process
Items required in order to effectively respond to opportunities A Bid Board or
Opportunity
Industry best practices Review Board,
who’s members
Project and production management emphasizing the technical, may include
administrative, and personnel aspects of solution development senior managers,
technical experts,
Proposal writing, storyboarding, key exhibits, and other business owners,
graphics and proposal,
operations,
Publishing techniques, mock ups, and validation marketing, and
sales managers.
Team building and team leadership
Project and performance measurement techniques, including
use of earned value
Risk management planning, identification, analysis, response
planning and monitoring and control
Use of the historic database for planning and estimating
Conducting periodic formal reviews

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Activities Performed (KPA: Solution Development)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• Solution development teams routinely analyze, document, and
The objectives of
review customer preferences, needs, and requirements as a basis customer analysis
for customer interactions and responses. and its
corresponding action
One purpose of this activity may be to review both stated and plan may be to:
derived requirements to determine the degree to which the Work with
proposed solution has been validated or accepted. customers to
clarify issues and
• Solution development teams prepare, issue, and follow root causes
documented solution development plans based on documented Validate
customer needs
processes. and requirements
Typically, the solution development plan:
Is prepared before the kickoff meeting in order that it can be
reviewed and distributed at that time
Members of a core
Includes the proposal strategy based on program intelligence solution development
and knowledge of strengths and weaknesses team typically
include the:
Examples of general guidelines often considered in defining Proposal
standard content of solution development plans include: manager

A capture manager and a core team are assigned. Marketing

representative
The solution development manager and other appropriate Manufacturing
personnel sign off on the plan. manager
Volume leader
The plan is maintained and kept current to reflect changes,
Production
such as ones involving the RFP, dates, and contributors. coordinator
A milestone-driven process is followed, which leads to a Proposal
specialists
pursuit decision.
Business
Customer requirements, both stated and derived, are assigned developers
to specific members of the solution development team.
Any non-compliances are submitted for senior management
concurrence.
Solution development is tracked and monitored through to
submission.
Formal, periodic reviews are held throughout the process to
determine the actions needed to bring the solution in line with
the current and projected needs of the business customer and
end user as appropriate.
The formal reviews simulate the customer’s process.
• Customer solution preferences are documented and communicated
throughout the solution development process to the response team.

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• Each solution is reviewed to determine whether it should use a

Objectives of the
tailored version of the standard solution methodology. solution development
plan are to assure
For example, the solution team might use techniques such as gap that:
analysis to assess what solution components are reusable versus
Resources and
the amount of customization that is required. costs are
estimated
• BD personnel collaborate with customers in developing and
A schedule is
evaluating alternative solutions to customer needs. prepared
The purpose of such collaboration may be to determine: Risks are
identified,
The degree to which the proposed solution is acceptable assessed, and
documented
The compatibility of the opportunity in terms of the corporate Expectations for
strategic plan those involved
are known
Benefits as to how the solution will integrate into the customer
Roles and
environment responsibilities
are identified
• Customer interaction is maintained as long as possible to assure
Deliverables are
understanding of the value sought. identified
• A database of historic solutions is maintained and used for
standard offerings and for planning, scheduling, and estimating.
An example of information to be included in the database is
records of subcontractor performance/quality and history of their
competitive relationships.
• Marketing capability is developed based on customer needs, and
action plans are prepared for favorable customer positioning.
• Data are routinely collected on competitor’s insights and strategies
to establish a library on competitors so that probable competitors
for each opportunity are known.
Some guidelines that may be followed are to:
Hold discussions on a regular basis with customers, key
suppliers, subcontractors, and other competitive intelligence
sources to establish this library
Collect data on areas such as competitors’ technical
capabilities, quality, cost competitiveness, and production
methods
• Intelligence gathering systems are established to provide
marketplace and competitive information.
The purpose of these systems may be to collect data for:
Analyzing potential markets and customers
Predicting customer behavior on upcoming pursuits

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Measurement (KPA: Solution Development)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the effectiveness of
the solution development process.
Examples of measurements include:
Determination as to whether the process assures that the
product/service fits with customer needs
Adherence to schedule/budget
• Measurements are made and used to evaluate the usefulness of the
solution development information system.
Examples of measurements include:
The usefulness of the system in terms of meeting the customer
requirements
The ease of use of the reuse database
A determination concerning early obsolescence of the solution

Verification (KPA: Solution Development)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews solution development activities on a
periodic basis.
These reviews verify that:
The standard solution development methodology is followed.
Non-compliance issues are addressed.
• The solution manager reviews the solution development activities
on a periodic and on an event-driven basis.
These reviews verify that:
The solution development plan is followed.
The solution development plan is maintained and current.
Non-compliance issues are addressed.
• Senior management reviews competitive analysis activities on a
periodic basic.
These reviews verify that:
The competitive assessment strategy is followed.
Marketplace and competitive information systems are useful.

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3.2 Key Process Category: Focus

The Focus KPC for BD-CMM Level 3 includes two KPAs,
“Organizational Tactics” and “Quality Management.”

3.2.1 Key Process Area: Organizational Tactics

The Organizational
This KPA is characterized by the organization’s achieving the specific Tactics KPA focuses
on establishing a
results stated as goals for this KPA. leadership role for
business development
Goals (KPA: Organizational Tactics) in the growth of the
company.
The goals for this KPA are as follows:
• Establish a leadership role for the BD organization in the growth of
the company
• Establish and support a BD process group to coordinate and
centralize BD activities across the organization and to assure that
lessons learned are collected and used

Commitment to Perform (KPA: Organizational Tactics)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a standardized BD process and directs
use of this process across the organization.
For example, this process might specify:
Defining and integrating funding, decision criteria, and
interactions with related processes and other support aspects
with process steps
Guidance to tailor the process to individual pursuits based on
pursuit requirements and customer buying cycles
Assurance of process compliance through alignment with
management processes
An emphasis on an early planning focus for proposal activities
Incorporation of suitable tools and methods into the
organization’s standard business development process
Open discussion and sharing of lessons learned for subsequent
opportunities
• An organizational role is assigned to lead a BD process group and
deploy organizational processes.
The BD group may perform functions such as:
Facilitating the establishment and maintenance of the
organization’s BD methodology

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Collecting performance measurement data and analyzing these

data for areas of needed improvement
Supporting senior management in pursuit selection decisions
Evaluating, selecting, and introducing standard tools and
techniques to facilitate business development
Coordinating BD training and orientation sessions
Assuring that product management and development resources
are appropriately deployed
Promoting senior management participation and support in
business development improvement
Establishing for the organization a repository of best practices
in business development
• The organization follows a documented strategy to capture and
apply lessons learned for continuous process improvements.

Ability to Perform (KPA: Organizational Tactics)

The preconditions that are necessary for an organization to implement
this KPA involve:

• The organization provides adequate resources and funding for

process deployment.
For example, tools and techniques may include: Typically, adequacy
of resources and
Desktop publishing tools funding is defined in
terms of:
Database management systems
Appropriate tools,
Databases for standard language techniques, and
other aids to
Standard templates institutionalize
best practices
Collaborative information management tools and achieve
consistent
• An organizational role is assigned to support pursuits and all BD performance
activities across the organization. Guidelines to
tailor the process
• Business development personnel receive guidance in process skills, to individual
tasks, and deliverables. pursuits
Systems to
Sample topics covered in such guidance include: support reusable
materials
Business development practices and methods
Available funding
Process analysis and documentation methods before pursuit
decisions are
Use of different types of review teams made

• An orientation is provided to other people peripherally involved in

BD initiatives.

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Sample topics covered in orientation sessions include:

The corporate business development process
The company’s strategic response plan
The interface between other units and the response system
Key measures and critical success factors

Activities Performed (KPA: Organizational Tactics)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• A BD support strategy is deployed, with checklists used
throughout the process to validate performance.
• A structured approach is followed to capture and apply lessons
learned for continuous process improvement.
Sample guidelines to follow may be to:
Openly share and discuss lessons learned
Apply lessons learned to subsequent opportunities as
appropriate
• Opportunities are selected based on established pursuit criteria.
For example, possible criteria may include:
The potential for additional business
Product and market match
Return on investment
Corporate risk
Knowledge of the marketplace and the competition
Market costs
Strategic penetration of accounts
Maintaining incumbency
• Pursuits are planned, performed, and managed in accordance with
established methodologies.
For example, sample guidelines to follow may be to:
Assure alignment of pursuit activities and products with a
balance of internal and customer goals
Apply appropriate techniques to estimate requirements and
budgets, schedule tasks, monitor progress, and mitigate risks
Assure reusable materials are available

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Review each pursuit to determine whether it should use a

scaled version of the business development process
Iterate sales plans so that they include proposal management
plans
• Appropriate personnel are assigned and authorized to perform
pursuit tasks in accordance with process requirements.
For example, sample objectives may be to assure that:
An assigned process “owner” and other process specialists are
available to support pursuits.
Budgets are allocated to all participants before actual pursuit
assignments are made.
Account teams are staffed with appropriate resources to pursue
identified opportunities.
Funding is available to cover direct labor employees.
• Pursuit managers are routinely assigned based on the size and
complexity of the opportunity.

Measurement (KPA: Organizational Tactics)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to predict needs and manage
pursuit progress.
Examples of measurements include:
Milestones in the plan that were met and those that were
missed
Adequacy of staffing and resource requirements and their
actual availability
Access to and usefulness of tools and resources
Win ratio
Cost per page
In-house versus consulting resources used

Verification (KPA: Organizational Tactics)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews process compliance on a periodic
basis.

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These reviews verify that:

Process compliance is assured through alignment with
management processes.
The business development process group is effective.
Established methodologies for planning and managing pursuits
are followed.
Non-compliance issues are addressed.

3.2.2 Key Process Area: Quality Management

The Quality
Management KPA
This KPA is characterized by the organization’s achieving the specific involves the
results stated as goals for this KPA. assurance of quality
business development
Goals (KPA: Quality Management) outputs and products
through activities for
The goal for this KPA is as follows: tracking, measuring,
and reporting on
• Establish a quality program for business development that assures business development
consistent application to BD opportunities and identifies and performance.
implements quality improvement for inclusion in the BD process

Commitment to Perform (KPA: Quality Management)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure for
implementing quality management in BD activities.
This procedure typically specifies that:
Management provides proactive guidance for quality
management activities.
A quality plan is developed early in the process and is
reviewed by affected groups and individuals.
There is recognition of the importance of quality control,
quality assurance, and quality improvement activities for
business development.
The importance and use of quality assurance and quality
control tools and techniques is recognized.
Results are monitored to verify them according to quality
standards and to take appropriate corrective action as required.
Responsibilities for quality improvement initiatives are
identified.
Objective measurements and data are used to continuously and
simultaneously improve quality, cost, and delivery time.

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Quality is viewed as valuable in terms of customer satisfaction,

enhanced supplier relations, and employee recognition.
Quality is considered as a responsibility of every business
development team member.
• An organizational role is assigned lead responsibility for
maintaining and implementing quality management procedures
across all BD activities.

Ability to Perform (KPA: Quality Management)

The preconditions that are necessary for an organization to implement
this KPA involve:
• The organization provides adequate resources and funding to In quality
manage the quality of the BD process, including provision for management,
improving the quality function. adequacy of
resources and
• Quality personnel receive required guidance in performance funding is typically
defined as having
tracking, process assessment, and audit methodologies relative to the following
the BD process. available:
Examples of typical topics covered in such guidance include: Standardized
performance
Business development skills and practices measurement
tools that can
Roles and responsibilities of the business development process provide guidance
across the BD
group process
Standards, procedures, and methods for business development Assigned
responsibilities
• Business development team members receive guidance in quality for quality
management. management
activities
Examples of typical topics covered in such guidance include: In quality
improvement,
Discussing proven benefits of quality adequate resources
and funding involves
Promoting quality management principles having the following
Determining quality costs available:
Separate funding
Measuring quality for quality
improvement
Promoting a customer focus initiatives

Using quality tools and techniques. Training to

educate BD team
• Quality assurance and quality control are structured so that they are members in the
principles,
distinct yet complementary activities. techniques, and
tools that support
Differences may be explained by considering: the improvement
process
Quality control as a responsibility of all BD team members.
Quality assurance as comprising the planned and systematic
activities implemented to provide confidence that relevant
quality standards are satisfied.

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Quality assurance as a responsibility of management that

depends on management’s involvement for its attainment and
verification.
Quality control as involving monitoring specific results to
determine whether they comply with quality standards.

Activities Performed (KPA: Quality Management)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• A quality plan is developed and used as the basis for the business
development quality management activities.
A sample quality plan may include:
A description as to how the BD team will implement the
organization’s quality management policy
A description as to various quality planning, quality control,
quality assurance, and quality improvement activities
Roles, responsibilities, processes, and procedures needed for
quality management
Use of audits, inspections, measurements, and other processes
to meet customer requirements
• Quality management activities are performed in accordance with
the quality plan. For best results, the
organization’s quality
Sample guidelines to follow are to assure that: assurance staff, or a
BD team member
Activities performed are monitored and tracked against the with specific
plan. responsibility for
quality assurance,
Corrective actions are taken as required. should participate in
the preparation,
Quality indicators are developed to help determine potential review, and approval
of the BD quality
areas of improvement. plan.
Quality measurement results are displayed openly for all team Moreover, the plan
members to review. may be developed in
compliance with
The quality plan is updated as required. such criteria as
International
• Quality improvements are implemented according to integrated Organization for
Standardization
change control procedures. (ISO) 9000, ISO
10006, Baldrige
These change control procedures may include: Award, Six Sigma,
and other internal
Following specific documentation requirements to implement policies.
improvements
Obtaining specific approvals before improvements are
implemented
Updating other documents as appropriate

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• Quality audits are conducted on a periodic basis.

Sample guidelines may be to:
Use the quality audits to improve quality, cost, and delivery.
Display the results from the quality audits openly for all team
members to review.

Measurement (KPA: Quality Management)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to evaluate the status of BD
quality management activities.
Examples of measurements include:
Completeness of standard assessments on activities
Number and type of revisions to the BD quality plan
Number of people involved in BD quality planning
The win/loss ratio
Overruns of bid and proposal budgets
Not following steps in the process in order to meet the delivery
deadline, such as not conducting a senior management review
Appropriate assignment of team members
Number of problems discovered through quality inspections
and audits
Completion of BD quality management activities compared to
the plan
Effort and funds expended in quality activities compared to the
plan
Processes established to verify that the improvements are in
fact in place

Verification (KPA: Quality Management)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews quality management activities relative
to business development on a periodic basis.
These reviews verify that:
BD quality plans are developed and followed.
Activities are in place to manage risk and produce winning
solutions.

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The status of quality activities is tracked.

BD quality management tools and techniques are adequate.
Appropriate guidance on quality tools and techniques is
conducted.
BD quality audits are conducted as scheduled.
Non-compliance issues are resolved.
• BD management reviews results of quality assurance audit
activities on a periodic basic.
These reviews verify that:
Quality assurance and quality control activities are completed
according to the plan.
Non-compliance issues are resolved.

3.3 Key Process Category: PEOPLE

The People KPC includes one KPA, “Organizational Competencies The Organizational
Development.” Competencies
Development KPA
focuses on career
3.3.1 Key Process Area: Organizational Competencies development and
Development professional
certification for
This KPA is characterized by the organization’s achieving the specific business development
personnel.
results stated as goals for this KPA.

Goals (KPA: Organizational Competencies Development) In Organizational

Competencies
The goals for this KPA are as follows: Development, the
following definitions
• Define core competencies needed for effective business may be used:
development and communicate them throughout the organization Knowledge – the
information or
• Offer career opportunities across the organization that provide understanding
growth in business development that someone
needs to perform
a task
Commitment to Perform (KPA: Organizational Competencies successfully
Development) Skills – the
activities that
To implement this KPA, an organization must have committed to the must be
following elements of policy and management support: developed to
perform a task or
• The organization follows a documented procedure concerning an activity
opportunities for career development and professional successfully
advancement consistent with its goals for organizational Competency – a
characteristic that
competency development. is casually
related to
effective,
superior
performance

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For example, this procedure might specify that:

Career development activities serve the business objectives and
stated values of the organization.
Roles and responsibilities are defined to work effectively on
capture and proposal teams.
Knowledge, skills, and competencies required to perform
defined business development tasks are identified.
• An organizational role is assigned responsibility for defining a
business development career path.
For example, individuals who might assist or advise units on a
business development career path may include:
Human resources staff
Training staff
An empowered high-performance team
Marketing professionals
Senior business development management
Program management

Ability to Perform (KPA: Organizational Competencies Adequate resources

and funding is
Development) defined as having
the following
The preconditions that are necessary for an organization to implement available:
this KPA involve: Individuals to
• The organization provides adequate resources and funds to support perform needs
assessments
and motivate career development and professional advancement. Collaborative
For example, support may include maintaining: tools to facilitate
exchange of
Career development records information and
lessons learned
Graduated career paths Support for
implementing
Listings of open positions career
• New BD process users receive orientation and mentoring during development
activities
opportunity response activities. Funding for
appropriate
Activities Performed (KPA: Organizational Competencies rewards and
Development) recognition for
both full-time
Actions that an organization must take in this KPA to assure that the business
developers and
process is established and will endure involve: virtual or
occasional team
• The organization identifies core competencies to be developed and members
sustained for its BD functions.

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Sample guidelines to follow are to:

Prepare and periodically analyze the knowledge, skills, and
competency profiles against the actual work of BD personnel
to determine their relevancy to assigned tasks
Analyze on an event-driven basis changes in BD methods,
processes, or technologies to determine whether related
knowledge, skills, and competencies need to be updated
• Training is provided on core competencies in support of career
growth.
Sample actions might include:
Individuals’ personal development plans describe activities for
increasing their knowledge and skills in appropriate core
competencies.
Information is made available to individuals on the
organization’s core competencies and learning opportunities
related to their development.
• Training in core competencies is scheduled, evaluated, and tracked
against achievement of increased competencies and certifications.
Sample guidance may specify that:
Methods for developing the core competencies are identified. To track competency
development,
Graduated training and development activities are defined for records may be
maintained on:
each core competency.
Delivery of
Resources for delivering the training and development training
activities are identified and made available. opportunities
Individual
Learning activities are periodically reviewed. achievement of
increased
The training program is updated as changes are made to the competencies
profiles of the organization’s core competencies. and certifications
Effectiveness of
• Training is augmented through work assignments aimed at incentive
enhancing competencies or fulfilling career development criteria. programs
For example, records
Sample actions might include: may be used to
refine curricula
Whenever possible, individuals receive assignments that based on:
support the new competencies acquired through training. Student/instructor
The extent to which the work assignment actually enhances feedback

personal and career objectives is discussed during performance Changes in

methods,
management and related activities. processes, and
technologies
• Individual performance assessments are linked to increased BD
competency and professionalism, and individuals actively identify
and pursue learning opportunities.

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Learning opportunities may include:

Participation by BD personnel in professional organizations
and certification programs
Activities outside of normal work responsibilities that support
an individual’s development needs
Attendance by BD professionals at trade shows
Paper presentations by BD professionals at professional
organizations’ seminars and symposia
• Staffing decisions are based in part on developing careers through
appropriate, graduated career opportunities.
For example, it may be appropriate to: Examples of
Assure that graduated career opportunities include not only professional
organizations
promotion opportunities within the organization but also career include:
broadening or lateral assignments to gain experience or to Association of
increase the individual’s capabilities in business development Proposal
Management
Prepare job descriptions for business development positions Professionals
and use them to foster career progression Chartered
Institute of
Identify available positions, and assure that people in the Marketing
organization are aware of possible opportunities International
Project
Use individual development plans and career objectives as Management
inputs when selecting among candidates for open positions Association
National
Make staffing decisions in part to achieve the competency- Association of
development goals and career objectives of qualified Sales
candidates Professionals
National Contract
Use the level of knowledge and skills evident in the Management
performance of individuals as one of the bases for Association
advancement through their career options Society of
Competitive
• Individuals understand their roles and responsibilities on Intelligence
sales/capture and proposal teams. Professionals
Strategic Account
• Incentive programs are implemented to encourage increased Management
competencies. Association

Measurement (KPA: Organizational Competencies

Development)
Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the status of
competency development activities.

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Examples of measurements include:

Individual achievement of increased competencies and
certifications
Amount of time spent in developing knowledge and skills
related to core competencies
Number of people involved in developing competency
development activities
Rate of progress in competency development activities
• Measurements are made and used to determine the progress of the
training curricula to enhance the core competencies of the
organization.
Examples of measurements include:
Sufficiency of available funds to provide needed training
The number and frequency of changes to curricula
The ratio of courses taken to a change in the organization’s
win/loss ratio
• Measurements are made and used to assess progress toward
increased core competencies and career development.
Examples of measurements include:
Actual progress toward development objectives
The percent of milestones completed in the schedule in the
career development plan
Ability of personnel to take on roles of increasing
responsibility
• Measurements are made and used to assess each unit’s
performance status.
Such measurements may be aggregated at the organizational level
and analyzed periodically to assess results. This may be achieved
through the use and maintenance of a historical database of
performance criteria and performance data.

Verification (KPA: Organizational Competencies Development)

Actions necessary to validate that activities are performed in
Typically, manage-
compliance with the capability established in this KPA include: ment reviews verify
that funds reserved
• Senior management periodically reviews the status and to increase
effectiveness of activities for organizational competency professionalism and
development. certification are used
appropriately.

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• Senior management periodically reviews BD effectiveness in

implementing competency-based training and compensation and
rewards.
These reviews verify that:
Career opportunities are available for business development
professionals.
Training is provided and is effective on the business
development core competencies.
• Senior management periodically reviews the career development
and professional advancement initiatives, including funding for
increased professionalism and certification.

3.4 Key Process Category: CAPABILITIES

The Capabilities KPC includes two KPAs, “Business Development The Business
Process” and “Support Systems.” Development Process
KPA covers standard
techniques for
3.4.1 Key Process Area: Business Development Process customer interface
and sales that are
This KPA is characterized by the organization’s achieving the specific integrated into the
results stated as goals for this KPA. overall business
development process.
Goals (KPA: BD Process)
The goals for this KPA are as follows:
• Deploy and use a standard BD process throughout the entire
organization
• Maintain consistency across BD work products by integrating
methods, tools, and disciplines and by systematically analyzing BD
performance and direct customer feedback

Commitment to Perform (KPA: BD Process)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented process for all BD
activities across the organization.
For example, this procedure might specify that:
The standard process is used throughout the organization.
The process includes a common business development
vocabulary.
The process satisfies standards commonly imposed on the
organization by its customers as appropriate.

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Suitable tools and methods are incorporated into the

organization’s standard process as appropriate.
Changes proposed to the standard BD process are documented,
reviewed, and approved by the group responsible for the
organization’s business development activities before they are
incorporated.
Plans for introducing changes to the business development
process are defined as appropriate.

Ability to Perform (KPA: BD Process)

The preconditions that are necessary for an organization to implement
this KPA involve:
• The organization provides adequate resources and funding for
Typically, adequacy
performing BD activities. of resources and
Examples of resources may include: funding is defined in
terms of having:
Business development practices and methods A group
responsible for
Process analysis and documentation methods the development
and maintenance
Process modeling of the
organization’s
• BD personnel receive guidance in all aspects of the BD process. standard BD
process assets
Guidance should address marketing, sales, customer service,
Tools to support
solution design, quality processes, technical writing, and graphics process
to assure both staff and managers have the knowledge and skills development and
required to fulfill their assigned roles. maintenance

Sample topics covered in this guidance may include:

Marketing process
Business development process
Analysis of customer needs and requirements
Proposal writing
Effective communications
Solution development
Capture planning process
• An orientation is provided to other members of the organization in
the BD process.
A sample topic covered in the orientation sessions may include
ways to assist BD personnel in securing new business.

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Activities Performed (KPA: BD Process)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• Appropriate sales/capture methods and tools are integrated into the
defined business development process.
• BD methodologies are developed, maintained, documented, and
verified by systematically analyzing business development
performance and direct customer feedback.
Sample objectives to consider are to:
Develop action plans based on analysis and customer feedback
in order to improve methodologies used
Identify potential improvements in processes, tools, or
resources to enhance performance
• Consistency is maintained across business development work
products, including planning, marketing, advertising, sales, and
solution development.
For example, this may be accomplished through development and
review of market plans, account plans, sales plans, and
opportunity-specific pursuit plans.

Measurement (KPA: BD Process)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the functionality
and quality of the BD process.
Examples of measurements include:
Timeliness and quality of account plans, marketing plans, and
sales plans
The extent of rework that is required
The applicability to each business unit’s environment, both
internal and client focused

Verification (KPA: BD Process)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews the effectiveness of the BD process on
a periodic basis.
These reviews verify that:
The standard business development process is followed.

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Consistency is maintained across business development work

products.
Non-compliance issues are addressed.

3.4.2 Key Process Area: Support Systems

This KPA is characterized by the organization’s achieving the specific The Support Systems
results stated as goals for this KPA. KPA include
standards for physical
facilities,
Goals (KPA: Support Systems) communications,
The goal for this KPA is as follows: collaborative work
environments, and
• Define, establish, use, and maintain a suitable infrastructure to other systems
support BD operations throughout the business acquisition cycle supporting business
and across the organization. development.

Commitment to Perform (KPA: Support Systems)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure for providing
infrastructure elements associated with BD operations.
This procedure typically specifies that:
Senior management participates in assessments of changing
requirements.
Work environment, communications, and systems are
available. These may include dedicated proposal development
workspaces, wall space, printers, fax machines, copiers,
scanners, hardware and software.

Ability to Perform (KPA: Support Systems)

The preconditions that are necessary for an organization to implement
this KPA involve:
• The organization provides adequate resources and funding to Typically, adequacy
support specific infrastructure elements associated with the BD of resources and
function. funding is defined in
terms of having the
• BD personnel receive training in the use of software and other following available
tools identified in the BD process. Physical facilities,
equipment, and
An example of such training might include technologies for systems
communications and interactions with virtual teams. Technical
support staff
• An orientation is provided to those members of the organization
who support BD tasks but are not part of the BD staff to enable
them to effectively perform assigned tasks.

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Sample topics covered in orientation sessions include:

Roles and responsibilities
Available tools and templates
Overall business development process

Activities Performed (KPA: Support Systems)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• Support systems for the BD function are planned, designed, and
implemented based on defined operational requirements.
For example, it may be helpful to:
Use established support systems to provide for both routine and
surge aspects of BD operations
Address geographic, teaming, virtual operations, and other
barriers to operating efficiently throughout the BD cycle in
terms of planning and provisioning of support systems
Assess and routinely consider specific support requirements of
individual projects as part of BD planning and implementation
• Support systems and related operations are differentiated in
accordance with the varying support issues associated with the
phases of the BD process.
• Analysis of support system adequacy is included in assessments of
the BD process and in general lessons learned.
Objectives of this analysis may be to:
Support continuous process improvement
Identify improvements so that actions can be taken to provide
them, such as maintenance and update of the proposal library
including past proposals, lessons learned, reuse materials,
resumes, past RFPs, competitor information, and past
performance contract summaries
• A specific plan for periodic review of the adequacy of current
support systems and the infrastructure implications of emerging
process requirements is prepared and issued.

Measurement (KPA: Support Systems)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to assess support system
adequacy, responsiveness, and ability to provide timely support.

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Examples of measurements include:

System loading
System downtime
Frequency of backups

Verification (KPA: Support Systems)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews support system adequacy on a
periodic basis.
These reviews verify that:
Support systems procedures are followed.
Analyses of support system adequacy are performed.
Non-compliance issues are addressed.

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Chapter 4.
BD-CMM Level 4 -- Managed

The key practices contained in this chapter cover Level 4 of the BD-
CMM: Managed. At this level, the following is usually true of process
capability and management visibility: BD-CMM Level 4 is
characterized by a
• Detailed measures of the business development process and results business development
are routinely collected and used for process management. process that is
routinely measured
• Both the process and its products are quantitatively understood and and managed both
controlled. quantitatively and
qualitatively.
Key practices for the following KPAs in the BD-CMM, Level 4,
Managed, are provided in this chapter.
• Relationship Management (page 65)
• Enterprise Influence (page 70)
• Quantitative Process Management (page 74)
• High-Performance Teams (page 78)
• Business Development System Integration (page 82)
• Infrastructure Management (page 84)

4.1 Key Process Category: CUSTOMER

The Customer KPC for BD-CMM Level 4 has one KPA,
“Relationship Management.” The Relationship
Management KPA
addresses the process
4.1.1 Key Process Area: Relationship Management of building customer
focus and
This KPA is characterized by the organization’s achieving the specific collaborative
results stated as goals for this KPA. customer
relationships that
Goals (KPA: Relationship Management) drive solutions to
customer needs and
The goals for this KPA are as follows: requirements in a
decidedly proactive
• Maintain and extend customer relationships throughout the way.
business acquisition cycle to maximize value offered and delivered
to the customer
• Integrate customer relationship management (CRM) with all
aspects of internal BD processes end-to-end

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Commitment to Perform (KPA: Relationship Management)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented strategy for customer
collaboration. Typically, assuring
adequate resources
For example, this strategy might include: and funding requires
that:
An emphasis on numerous, targeted customer meetings BD personnel
have access to a
A focus on situational awareness full range of
An emphasis on providing confidence concerning the company enterprise
resources.
with the customer
BD personnel
Efforts required to reach an understanding of customer have the required
skills and
concerns, issues, and hot buttons, and documenting that expertise.
understanding The “best and the
Frequent and meaningful customer interaction brightest”
personnel are
Positioning with the customer, both vertically and horizontally, available.
in the organization Senior
management
Understanding the customer’s business plan participates in
customer
• An organizational role is assigned to coordinate customer interaction
collaboration activities. Funding is
provided for the
Examples of types of people who could assist in coordination of BD team and for
customer collaboration activities, including providing advice on ongoing
collaboration.
strategies for customer collaboration, include:
Response
A formal, standing business development team management
systems, archival
Outside consultants systems, and
content
Sales executives repositories are
available.
Ability to Perform (KPA: Relationship Management) Current
product/service
The preconditions that are necessary to implement this KPA information is
completely involve: readily available.

• Individuals are assigned responsibility for customer collaboration.

Examples of individuals who might be assigned responsibility for
customer collaboration are:
Business developers
Program managers
Chief technologists
Finance managers
Contracts managers

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Chief Executive Officer

Chief Operating Officer
Vice Presidents of Sales, Marketing, and Operations
Sales management account executives
Subject matter experts, as required
• The organization provides adequate resources and funding for
collaborative interactions with customers throughout their
purchasing/business acquisition cycle.
• Individuals receive guidance in CRM.
Sample topics covered in this guidance may include:
Developing and maintaining a customer focus
Promoting effective marketing and sales communication
Developing solutions collaboratively
Developing contingency plans
Adapting the defined process to manage customer relationships
proactively
Promoting ethical business practices
Fostering team building and team dynamics for internal and
external teams
Updating continuously the win strategy when customer and
competitor environments change
Tailoring solutions using the defined process in accordance
with the goals of the customer relationship
Assuring use of effective sales techniques
• Executives and managers receive guidance in collaborative
leadership and CRM.
Sample topics covered in this guidance may include:
Nurturing customer relationships over the long term
Mentoring the organization in relationship management
Leading the organization in implementing approaches and
strategies for customer focus and collaborative solutions
Knowledge management
Encouraging professional responsibility in all activities
Sales training

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• Members of the organization receive an orientation on

collaborative leadership, CRM, and the organization’s CRM
mentoring program.
Sample topics covered in orientation sessions may include:
The interface with and use of virtual team members
The value added by virtual team members
Marketing training
Sales training
Customer analysis and response

Activities Performed (KPA: Relationship Management)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• High-performance teams strategize, plan, and develop solutions in
proactive, iterative ways in accordance with the organization’s
documented approach.
Sample objectives may be to:
Tailor solutions based on the defined process and the goals of
the customer relationship
Assure that any non-compliant responses are ones that will not Typical ways that
be a surprise to the customer customer
environment and
Include mitigation plans and cost-benefit analyses as unique processes
appropriate in the response are assessed
include:
Have senior management routinely review progress to Sales teams
determine actions needed to adequately collaborate with the recommend to
customer in resolving the full ranges of issues associated with the customer the
benefits of
the solution establishing
partner
Assure that solutions are based on customer business plans relationships.
• CRM plans are prepared and issued following the documented Risks are
analyzed to
procedure. improve offerings
For example, this procedure may include: and methods of
delivery.
Senior management responsively supporting corrective action Customer
when needed mission
statements,
Sharing plans, assigning responsibility, and tracking activities business plans
through the sales organization and budgets,
acquisition/evalu
• Customer feedback is routinely obtained on solution effectiveness, ation processes,
and technology
appropriateness, and fit in the customer environment. and trends are
continuously
• The customer environment and unique processes are assessed reviewed.
through established processes.

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• A variety of tools and techniques are used and applied in support

of customer and organizational objectives.
Examples of tools and techniques may include:
Cost/schedule control, project performance measurement, and
risk assessment methods
Development of contingency plans and management reserve
for any unknowns.
• Mentors are selected, prepared for their assignments, and assigned
to individuals and/or teams.
Sample guidelines to consider are to: Typically, criteria for
Define the objectives and structure of the mentoring program selecting mentors
are:
Define different types of mentoring relationships depending on Experience and
the stated objectives knowledge
Interpersonal and
Train selected mentors in responsibilities communication
skills
Assign mentors based on specific requirements of individuals
Availability
and teams
Ability to serve as
Have the mentors establish basic agreements with the a successful role
model
individuals or teams they will support
Ability to provide
• A CRM information system is established. personal support
Commitment to
• The objectives and structure of the CRM mentoring plan are developing and
defined. guiding others

Measurement (KPA: Relationship Management)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the effectiveness of
the CRM process.
Examples of measurements include:
Frequency of “surprise” solicitations
Frequency that the solution is not already defined
Customer satisfaction
• Measurements are made and used to determine the status and value
of the CRM mentoring activities.
Examples of measurements include:
Number of mentoring relationships established
Progress of mentoring activities versus objectives

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Evaluation of the program by the mentors and mentored

individuals
Number of problems identified and improvements made

Verification (KPA: Relationship Management)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews the activities for managing customer
relationships on a periodic basis.
These reviews verify that:
The customer relationship management plans are followed.
Non-compliance issues are addressed.
• Senior management reviews progress to determine the actions
needed to adequately collaborate with the customer on a full range
of issues on a periodic basis.
These reviews verify that:
The strategy for customer collaboration is followed.
Customer collaboration activities are coordinated.
Training is received in collaborative leadership and customer
relationship management.
Customer feedback is routinely obtained.
• Senior management reviews the mentoring program in CRM to
assure it is meeting its intended objectives.
These reviews verify that:
Mentoring objectives are established for each mentoring
engagement.
The mentor, and the individual or team to be mentored,
periodically reviews progress toward meeting their objectives.
Mentoring relationships are voluntary and are not imposed on
individuals.
Non-compliance issues are resolved.

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4.2 Key Process Category: Focus The Enterprise

Influence KPA
focuses on business
The Focus KPC for BD-CMM Level 4 includes two KPAs, development as an
“Enterprise Influence” and “Quantitative Process Management.” integral part of the
organization’s overall
4.2.1. Key Process Area: Enterprise Influence strategic planning as
well as the practice of
proactive
This KPA is characterized by the organization’s achieving the specific management
results stated as goals for this KPA. leadership in all
endeavors.
Goals (KPA: Enterprise Influence)
The goals for this KPA are as follows:
• Integrate BD strategies with the organization’s overall strategic
planning to assure alignment of organizational goals, values,
resources, and investments
• Practice proactive management leadership of both strategic goals
of the organization and the progress of individual customer
initiatives and pursuits

Commitment to Perform (KPA: Enterprise Influence)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented policy that BD objectives
are integrated with all long-term activities and investments
associated with offerings and other elements affecting customer
relationships.
For example, this policy may include:
Viewing business development as critical to organizational
success
Providing detailed guidance to permit tailoring to specific
customer objectives
Evaluating the extent of enterprise influence needed to support
objectives
Considering broad organizational impacts in the selection and
prioritization of each opportunity
Emphasizing exploiting existing market strengths, identifying
new strategic markets, and developing new products or
services as well as abandoning markets that provide limited
potential for profit

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Exposing the entire enterprise to business development in order

that every individual is responsible for BD opportunities within
his or her own sphere of influence
• An organizational role is assigned to coordinate customer feedback
and advocacy across the organization as part of both strategic and
operational management.
For examples, groups that could perform this role may include the:
Business development process group
Sales group
Marketing group
• The organization’s strategy for continuous process improvements
provides ongoing feedback into the enterprise’s strategic direction
and tactical operations.
For example, this strategy might include:
Use of a mid-term review to assess necessary changes in
conjunction with customers to the BD process
Regular meetings between senior managers and customers

Ability to Perform (KPA: Enterprise Influence)

The preconditions that are necessary to implement this KPA
completely involve:
• The organization provides adequate resources and funding to Typically, adequacy
support and manage the application of strategic BD goals to of resources and
specific pursuits. funding is defined as
an integrated set of
• BD personnel are empowered to champion broad-based tools, templates, and
other aids in order to:
organizational strategies to position the organization for strategic
Institutionalize
business growth. lessons learned
• Individuals responsible for both tactical and strategic BD activities Quantitatively
and consistently
receive training to enhance skills and competencies. manage the
application of
Activities Performed (KPA: Enterprise Influence) strategic BD
goals to specific
Actions that an organization must take in this KPA to assure that the pursuits
process is established and will endure involve:
• Enterprise-wide strategies are applied to define business
development needs, requirements, and budgets.
• Data are collected and maintained on activities involving
continuous improvement.
• Opportunities are selected and prioritized based on established
business development strategies that include consideration of
broad organizational impacts.

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• Broad customer strategies and individual pursuits are planned,

performed, and managed in accordance with defined best practices
and ongoing organizational lessons learned.
A review of customer strategies and individual pursuits may be
performed routinely to assure alignment of pursuit activities and
“products” with a balance of:
Customer goals
Enterprise strategies
Broad operational implications
• Personnel are assigned and authorized to perform pursuit tasks and
coordinate necessary enterprise interactions, as tailored to
individual customer strategies and as required to achieve both
tactical and strategic enterprise goals.
Sample objectives to consider may include:
Completing the work in accordance with process objectives
Tailoring the work to individual customer strategies
Focusing on achieving both tactical and strategic enterprise
goals
Assuring that all personnel participate in business development
as appropriate, as each individual is responsible for business
development opportunities within his or her own sphere of
influence

Measurement (KPA: Enterprise Influence)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to predict needs, manage pursuit
progress, and guide an ongoing process of refining organizational
objectives.
Examples of measurements include:
Customer feedback reports
Customer satisfaction studies
• Enterprise-level metrics are established, collected, and evaluated
routinely.

Verification (KPA: Enterprise Influence)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews broad customer strategies and
individual pursuits to assure alignment of pursuit activities with a

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 Business Development Capability Maturity Model (September 2004)

balance of customer goals, enterprise strategies, and broad

operational implications.
These reviews verify that:
Process compliance is assured through alignment with
management processes across the enterprise.
Performance is validated according to checklists that are used
throughout the BD process.

4.2.2 Key Process Area: Quantitative Process Management

The Quantitative
This KPA is characterized by the organization’s achieving the specific Process Management
results stated as goals for this KPA. KPA encompasses
developing and
managing the
Goals (KPA: Quantitative Process Management) business development
The goal for this KPA is as follows: process through a
well-defined system of
• Establish and maintain a quality baseline for the organization’s metrics, internal and
business acquisition life cycle that deploys quantitative process external feedback,
and quality
management in pursuit of continuous improvement management
initiatives.
Commitment to Perform (KPA: Quantitative Process
Management)
To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented policy for measuring and
quantitatively controlling the performance of the defined business
development process.
For example, this policy might specify that:
Organizational expectations for quantitative management are
defined.
Relevant stakeholders are identified and involved in the
process.
Results are used to support future use and improvement of the
organization’s business development process and process
assets.
Sensitive data relating to individuals’ performance are
protected, and access to these data is appropriately controlled.
Measurements of process performance are analyzed to
establish and maintain a process capability baseline for the
organization’s standard business development process.
• An organizational role is assigned responsibility for coordinating
the business development quantitative process management
activities.

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Examples of organizational units that may be assigned this

responsibility are:
BD process group
Another organizational entity that has activities closely
coordinated with those of the BD process group
• The organization follows a documented strategy to capture and
apply lessons learned for continuous process improvements and
ongoing feedback into enterprise direction and tactical operations. Typically, adequacy
of resources and
funding is defined in
Ability to Perform (KPA: Quantitative Process Management) terms of:
The preconditions that are necessary to implement this KPA Support for
collecting,
completely involve: recording, and
• The organization provides adequate resources and funding for the analyzing data
identified for
quantitative process management activities. selected process
and product
Examples of tools and techniques may include: measurements
System dynamics models Expertise in
statistics and
Statistical process and quality control packages statistical
process controls
Statistical analysis packages Tools and
techniques for
Database systems quantitative
process
• Individuals implementing or supporting quantitative process management
management receive required training to perform these activities.
Sample topics covered in such training include:
Process modeling and analysis
Process measurement data selection, definition, collection, and
validation
Design and conduct of experiments
Application of basic quantitative methods and analysis
techniques, such as estimation models, Pareto diagrams, and
control charts
• Members of the BD organization and sales/capture teams receive
an orientation on the goals and value of quantitative process
management.

Activities Performed (KPA: Quantitative Process Management)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• A plan for quantitative process management is developed
according to a documented procedure.

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Sample contents for this plan are to include: Typically, the

The goals and objectives of the quantitative process quantitative process
management plan
management activities should:
The tasks or other activities to be measured and analyzed Undergo peer
review
A schedule of the activities to be performed Be reviewed by
the group
The groups and individuals responsible for the quantitative responsible for
process management activities the organization’s
BD activities
The procedures to be followed in performing the quantitative
process management activities
• Quantitative process management activities are performed in
accordance with the quantitative process management plan.
Sample objectives to consider are to:
Assess performance
Take corrective actions as required
• A strategy for data collection, quantitative analyses, and reporting
to be performed is determined based on the defined business
development process.
For example, this strategy might specify that:
The data collected support the measurement goals and
objectives of the organization and the BD units.
Specific measurement data to be collected, their precise
definitions, the intended use and analysis of each measurement,
and the process control points at which they will be collected
are defined.
Data are uniformly collected across business development
projects.
Measurements are selected to support predefined analysis
activities.
• Trends in the organization’s capabilities in business development
are compared quantitatively to its business development goals.
For example, trends may be analyzed in order to:
Establish and maintain a process capability baseline
Predict likely problems or opportunities for improvement
Track changes to the organization’s standard business
development process and analyze them to assess their effects
on the capability baseline
• Reports documenting results of quantitative process management
activities are prepared and distributed.

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Sample objectives may be to:

Maintain reports as part of the process audit files for each
opportunity
Review the results of the data analysis with those affected by
the data before they are reported to others
Assure that business development managers and senior
management receive regular reports appropriate to their needs
Assure that the business development process group members
receive regular reports appropriate to their needs

Measurement (KPA: Quantitative Process Management)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the status of the
activities for quantitative process management.
Examples of measurements include:
The cost over time for the quantitative process management
activities compared to the plan
The accomplishments of schedule milestones for quantitative
process management activities compared to the approved plan

Verification (KPA: Quantitative Process Management)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews the activities for quantitative process
management on a periodic basis.
These reviews verify that:
The plans for the quantitative process management activities
are followed.
The procedures for quantitative process management are
followed.
Needed data exist and are collected.
The data collected support the goals and objectives of the
measurement program.
The cost of data collected is justified by the usefulness of the
data.
Data are accurate, timely, and correct.
The confidentiality of the data is properly protected.

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4.3. Key Process Category: PEOPLE

The People KPC for BD-CMM Level 4 includes one KPA, “High-
Performance Teams.”
The High-
Performance Teams
4.3.1 Key Process Area: High-Performance Teams KPA focuses on
developing and
This KPA is characterized by the organization’s achieving the specific maintaining BD-
results stated as goals for this KPA. related competencies
across the entire
Goals (KPA: High Performance Teams) organization, thereby
permitting effective
The goals for this KPA are as follows: use of teams across
the enterprise and
• Use high-performance BD teams as an integral part of overall throughout the
organizational strategies across the business acquisition life cycle business acquisition
cycle.
• Authorize, deploy, empower, support, hold accountable, and
reward experienced sales/capture and proposal teams

Commitment to Perform (KPA: High Performance Teams)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure requiring
routine assignment of experienced sales/capture and proposal
teams based on the size and complexity of opportunity.
For example, this procedure might specify that:
Sales/capture and proposal team members are rotated for
continuous knowledge sharing and dynamic versus static
teaming.
Individuals are available to participate on capture and proposal
teams whenever required.
Sales teams are staffed with customer-trained individuals,
noted for taking a long-term approach to customer
development.
• An organizational role is assigned responsibility for assisting and
advising capture and proposal teams.
Examples of individuals who might assist or advise capture and
proposal teams are:
Representatives of appropriate functional areas
Consultants
Business development senior managers

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 Business Development Capability Maturity Model (September 2004)

Experienced proposal managers

Proposal center senior management
• The organization follows a documented procedure to recognize and
reward high-performance teams.

Ability to Perform (KPA: High Performance Teams)

The preconditions that are necessary to implement this KPA
completely involve:
• The organization provides adequate resources and funding for
Typically, adequacy
sales/capture and proposal teams to function as high-performance of resources and
teams. funding includes
considering virtual
• Individuals responsible for BD activities receive training in and/or physical
relevant evaluation methods and continuous improvement collocation of capture
and proposal teams
techniques. for all work activities
• The compensation system rewards team members for team
performance.

Activities Performed (KPA: High Performance Teams)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• Continuous team development is based on analysis of the team’s
performance.
Sample objectives may be to:
Identify development needs at the team level
Include team-based development objectives in team planning
and individual development objectives
Track progress against team-based development objectives by
the team
• Institutionalized best practices and just-in-time process
improvements are collaboratively applied in accordance with
pursuit requirements.
Sample guidelines to consider are to:
Document the application of process and process
improvements in real time to communicate modifications as
performance quality records
Perform activity-based costing and/or revenue tracking
Update process documentation based on effective process
improvements
• Teams employ collaborative tools and communications within the
development environment.

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• High-performance teams reuse best practices in accordance with

pursuit requirements.
• Team performance is evaluated on a periodic and event-driven
Typically, in
basis. evaluating high-
performance teams,
The purpose of this evaluation may be to: the teams
themselves:
Assure that if performance problems occur, they are discussed
Review their
with the team, and the results of the discussion are documented performance
Assess team performance against the performance against internally
and externally
improvement plan and the performance criteria defined
performance
Openly discuss performance issues and seek solutions to measures
performance problems Use the results in
administering
• Sales/capture and proposal teams are assigned to selected pursuits performance-
based on prior successes in related pursuits. related workforce
activities
Sample guidelines may be to:
Assign sales teams to the customer for the long term
Assemble proposal teams from the best talent to support the
specific opportunity
• Experienced process owners and specialists lead pursuit activities.
• Rewards and recognition are based on team performance and
individual contributions to team activities.
Ideally, rewards and recognition are part of a compensation system
designed, in part, to reward the team members for the team’s
Examples of the
performance. Sample guidelines to consider may be to: impact of the
compensation
Review the impact of the system periodically on the system on team
relationship between capabilities in the core competencies and development and
the organization’s performance performance include
the ability to:
Design the system in part to improve team performance and its Stimulate the
contribution to performance at the unit and organizational development of
teams
levels
Motivate
Administer the system in a way that optimizes the relationship individuals to
of team performance with unit and organizational performance develop
capabilities in
Review the system periodically to assure that it has achieved its team-based
competencies
intended impact on stimulating team formation, motivation,
Promote team
and performance cohesion and
coordination
Revise the system when necessary to improve the impact of
team performance on unit and organizational performance Attract and retain
talent in team-
• Appropriate levels of authority and accountability are assigned to based skills
those designated to lead pursuit efforts.

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 Business Development Capability Maturity Model (September 2004)

• Team members consistently adhere to allocated budgets and

schedules and anticipate requirements for deviation and waiver.

Measurement (KPA: High Performance Teams)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurement are made and used to assess the performance of each
sales/capture and proposal team.
Examples of measurements include cost, quality, and cycle time
reports concerning each pursuit.
• Measurements are made and used to baseline process
improvements.
• Measurements are made and used to evaluate sales/capture and
proposal teams across the organization to assure high performance

Verification (KPA: High Performance Teams)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management periodically reviews the organization’s
effectiveness in implementing high-performance teams for each
pursuit.
These reviews verify that:
Experienced teams are used.
The procedures for assigning teams are followed.
Teams consistently generate high quality products.
• Senior management periodically reviews the appropriateness of the
compensation and reward systems in place for sales/capture and
proposal teams.
These reviews verify that:
Team performance improvement plans are followed.
Performance is evaluated against the plans.
The compensation system for team performance is effective.
Non-compliance issues are addressed.
• Senior management periodically reviews the effectiveness of high-
performance teams to respond to current competitive and customer
environments.

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4.4 Key Process Category: CAPABILITIES

The Capabilities KPC for BD-CMM Level 4 includes two KPAs, The BD System
“Business Development System Integration” and “Infrastructure Integration KPA
Management.” focuses on the extent
to which the BD
process has
4.4.1 Key Process Area: Business Development System established linkages
Integration with other relevant
enterprise processes
This KPA is characterized by the organization’s achieving the specific to facilitate efficient,
results stated as goals for this KPA. effective interchanges
between BD process
needs and
Goals (KPA: BD System Integration) input/feedback from
The goals for this KPA are as follows: ancillary enterprise
processes.
• Integrate all processes and systems relevant to business
development throughout the business acquisition cycle and across
all enterprise operations
• Maintain consistency in BD activities and products through
systematic assessment of their ability to advance customer
relationships and the extent of their integration with other
enterprise processes

Commitment to Perform (KPA: BD System Integration)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented procedure that integrates Typically, procedures
specify that the BD
the BD process with related processes across the enterprise. process be
considered as an
Ability to Perform (KPA: BD System Integration) enterprise-level
system of
The preconditions that are necessary to implement this KPA operations.
completely involve:
• The organization provides adequate resources and funding for
operating the BD process and system integration across the
enterprise.
Examples may be to:
Establish an enterprise level team to promote continuing
system analysis, improvement, and deployment
Use an automated BD support system
• The organization assigns and empowers process champions across
the enterprise to promote process improvement and assure
appropriate BD system integration.

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• Business development professional staff receive appropriate

guidance both to execute BD leadership and to interact across the
enterprise as strategy and system integrators.
Examples of typical topics covered in the guidance may include:
The relationship of the enterprise process to that of the
functional/core organizational processes
Extensive training in the selected business development and
sales system that is used
• BD support staff receive an orientation in the appropriate tools,
disciplines, and processes, as well as in fundamental aspects of
system operations and enterprise-level integration.
Examples of typical topics covered in orientation sessions may
include:
The relationship of the enterprise process to that of the
functional/core organizational processes
The selected business development/sales support system
• All participants in BD-related operations across the enterprise
receive an orientation in key aspects of customer relationship
management, solution strategies, and related topics relevant to
integrated system operations.
Examples of typical topics covered in orientation sessions include:
High-performance team concepts
Business development system of choice
Customer interactions

Activities Performed (KPA: BD System Integration)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• Appropriate BD methods and tools are integrated into the defined
process and flowed into related enterprise processes as needed to
assure integration.
• Specific enterprise-level methodologies are developed, maintained,
documented, and verified by systematically analyzing customer
feedback, business development performance, and operational
integration.
Sample objectives may be to periodically review quantitative and
qualitative metrics to gain customer feedback in order to:
Define and apply lessons learned to continuously improve the
business development process

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Enhance the level of system integration

Promote broader enterprise influence
• Appropriate levels of consistency are maintained across the
enterprise for BD products through systematic assessment of both
their ability to advance customer relationships and the extent of
their integration with other enterprise processes

Measurement (KPA: BD System Integration)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the customer focus
and related quality of process tools and methodologies.

Verification (KPA: BD System Integration)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews efficiency and effectiveness of BD
processes and the level of their integration and influence across the
enterprise on a periodic basis.
These reviews verify that:
The business development process is integrated with related
enterprise processes.
Enterprise-level methodologies are used.

4.4.2 Key Process Area: Infrastructure Management

This KPA is characterized by the organization’s achieving the specific The Infrastructure
results stated as goals for this KPA. Management KPA
addresses the
organization’s ability
Goals (KPA: Infrastructure Management)
to manage the
The goals for this KPA are as follows: complete range of
resources needed to
• Manage and adapt the BD infrastructure in accordance with a maximize both the
formalized strategy at the enterprise level performance and
efficiency of BD
• Define and deploy BD systems and infrastructure across the process operations,
enterprise in response to the full range of user needs and relevance including feedback
in addressing the full spectrum of customer relationships to be into process
improvement.
supported

Commitment to Perform (KPA: Infrastructure Management)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:

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• The organization follows a documented procedure to manage,

maintain, and improve infrastructure elements associated with BD
operations across the enterprise.
For example, this procedure may specify that:
Infrastructure management is a formalized strategy within the
BD operating system.
Infrastructure management includes the ability to influence
deployment at the enterprise level.
The infrastructure serves to enable creativity and innovation in
business development.
Typically, adequacy
Infrastructure elements include operating environments, of resources and
communication systems, and integrated systems. funding is defined in
terms of:
Senior management participates in an assessment of changing
An integrated
infrastructure needs across the enterprise. system for BD
and sales
Ability to Perform (KPA: Infrastructure Management) tracking support
Needed
The preconditions that are necessary to implement this KPA equipment and
completely involve: systems
Support staff
• The organization provides adequate resources and funding for
Technical
infrastructure management activities to support continuous support
improvement objectives across the enterprise. personnel to
maintain and
• BD personnel receive guidance in both fundamental and advanced continuously
concepts and applications in the deployment of software and other improve the BD
system and its
tools identified in the BD process and needed to support system infrastructure
integration. across the
enterprise
Sample topics covered in this guidance include:
Adapting technology solutions to specific efforts
Security requirements
• Members of the organization who support BD strategies and tasks
but are not part of the BD staff receive guidance, tools, and
assistance to maximize their performance.

Activities Performed (KPA: Infrastructure Management)

Actions that an organization must take in this KPA to assure that the Typically, guidance
process is established and will endure involve: covers
implementation of
the business
• Infrastructure elements for the BD process are managed, development/sales
maintained, and continuously improved based on a defined tracking system
strategy to efficiently and effectively support the needs of system
users.

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If use of a virtual team is deemed appropriate, a guideline to follow

may be to:
Deploy a standard virtual technology strategy for business
development efforts throughout the organization

• Infrastructure elements are defined and deployed in accordance

with a thorough understanding of the range of user needs to be
supported throughout the business acquisition cycle, in response to
varying levels of customer relationships, and in recognition of the
range of user needs across the enterprise.

• The infrastructure is established such that it can respond to both

routine and surge requirements associated with business
development operations and their integration with related
enterprise processes.

• Infrastructure strategies address known barriers to operational

efficiency and effectiveness and include provision for adaptability
to internal needs across the enterprise, unique customer needs as
they relate to individual pursuits, and challenges associated with
specific customer relationships.
A sample objective may be to:
Develop, deploy, and periodically review specific strategies
and plans intended to assure the adequacy of current and future
infrastructure elements

• Assessment of infrastructure requirements is an integral and

routine part of business development planning and implementation.
This assessment may help assure that:
Lessons learned are documented concerning infrastructure
adequacy for consideration for future needs.

Measurement (KPA: Infrastructure Management)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:

• Measurements are made and used to assess the infrastructure

adequacy, responsiveness, and ability to provide efficient,
effective, and timely support of both individual pursuits and
specific customer relationships as part of the organization’s
continuous improvement program.
Examples of measurements include:
Responsiveness
Lag time

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Verification (KPA: Infrastructure Management)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:

• Senior management reviews specific strategies and plans intended

to assure adequacy of current and future infrastructure elements on
a periodic basis.
These reviews verify that:
The infrastructure management procedure is followed.
Infrastructure management influences deployment at the
enterprise level.
The infrastructure is able to respond to both routine and surge
requirements effectively.
Assessment of infrastructure requirements is an integral and
routine part of business development processes.

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Chapter 5.
BD-CMM Level 5 -- Optimizing

The key practices contained in this chapter cover Level 5 of the BD-
CMM: Optimizing. At this level, the following is usually true of process BD-CMM Level 5 is
capability and management visibility: characterized by a
business development
• Quantitative feedback from the process and from piloting process that continues
innovative ideas and technology enables a culture in which process to optimize
performance based on
improvement is a primary driver of business development. continuous
• Business development activity is fully embedded in the enterprise improvement.
management system, giving management clear visibility into its
operation.

Key practices for the following KPAs in the BD-CMM, Level 5,

Optimizing, are provided in this chapter.
• Innovation & Transformation – Customers KPC (page 89)
• Innovation & Transformation – Focus KPC (page 92)
• Innovation & Transformation – People KPC (page 95)
• Innovation & Transformation – Capabilities KPC (page 98)

5.1 Key Process Category: CUSTOMER

The Customer KPC for BD-CMM Level 5 has one KPA, “Innovation
The Innovation and
and Transformation.” Transformation KPA
highlights that an
5.1.1 Key Process Area: Innovation and Transformation organization that is
continually optimizing
This KPA is characterized by the organization’s achieving the specific its BD operation
proactively seeks to
results stated as goals for this KPA. innovate how it adds
customer value,
Goals (KPA: Innovation and Transformation) manages performance
and quality, and
The goal for this KPA is as follows:
builds competencies
• Deploy an effective CRM-management system and related and teams.
processes that assure customer focus and are institutionalized
within the organizational culture and behavior

Commitment to Perform (KPA: Innovation and Transformation)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:

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• The organization follows a documented strategy for continuously

improving its customer collaboration initiatives.
For example, this strategy might include:
A total commitment throughout the organization to meet
customer needs
An extension of organizational competencies across the
enterprise
• The organization establishes a strategy that supports business
development adaptability and innovation as strategic values of the
organization to drive a customer-oriented solution.
For example, this strategy might include:
A customer-oriented solution that benefits both the customer
and the organization
An emphasis on adapting its management response to a
changing BD environment
A methodology to incorporate innovations into processes and
tools

Ability to Perform (KPA: Innovation and Transformation)

The preconditions that are necessary to implement this KPA
completely involve:
• An individual is assigned responsibility to facilitate innovations Typically, adequacy
and partnerships among customers, suppliers, and other of resources and
stakeholders. funding is defined in
order that:
• The organization provides adequate resources and funding to Funding for the
develop a customer infrastructure that facilitates innovations and BD team is
partnerships among customers, suppliers, and other stakeholders. based on
contributions to
• Individuals receive guidance in the use of quantitative and the corporate
revenue stream.
qualitative data in order to create BD innovations and to be able to
Current
validate them in terms of their ability to enhance customer value. product/service
information is
Sample topics covered in such guidance are: available to
customers online
Evaluation methodologies with collaborative
Continuous improvement techniques connections to
experts.
Supply chain
Activities Performed (KPA: Innovation and Transformation) management
Actions that an organization must take in this KPA to assure that the systems are
used.
process is established and will endure involve:
• Enterprise-wide strategies are developed based on assessments of
evolving customer requirements, technology, and company product
lines.

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 Business Development Capability Maturity Model (September 2004)

• BD teams deploy best practices and plans in partnership with

customers to develop innovative solutions to customer issues.
• BD leadership regularly keeps its customers aware of newly
implemented innovations and their benefits.
• BD teams regularly suggest innovative methods to meet emerging
market and customer needs.
A sample objective may be to continuously monitor customer
needs in order that solution development strategies can be adapted
accordingly.
• BD teams actively research innovative response generation
processes and tools to improve the cost effectiveness and
flexibility of the solution development process.
Sample guidelines to consider are to:
Analyze and pilot innovative practices before they are
introduced into standard operational use
Disseminate those innovative practices and technologies that
are both efficient and effective throughout the organization as
appropriate
Assess the use of innovative earned value tools in predicting
problems early while corrective actions are minor and
achievable.
• A program of continuous improvement is established and
maintained to encourage individuals and teams across the
enterprise to propose improvements and innovations.
Samples objectives of this program may be to:
Encourage personnel across the enterprise to submit proposals
for improvements and innovations
Promote participation in improvement initiatives organization-
wide

Measurement (KPA: Innovation and Transformation)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to assess activities of continuous
improvement and innovation in terms of customer collaboration.
Examples of measurements include:
Number of proposals submitted for continuous improvement
Number of design of experiment opportunities completed

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• Measurements are made and used to validate innovative practices

and technologies to assess the value-added benefit to customers.
Examples of measurements include:
Number of initiatives involving response generation innovation
Ability of practices in terms of value-added benefit to the
customer
Effort associated with evaluating and implementing new
technologies
Timeliness in transferring new technology into normal practice
throughout the organization
Benefit-cost analysis of new technology

Verification (KPA: Innovation and Transformation)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews the activities for customer
collaboration initiatives on a periodic basis.

5.2 Key Process Category: Focus

The Capability KPC for BD-CMM Level 5 has one KPA,
“Innovation” and “Transformation”.

5.2.1 Key Process Area: Innovation and Transformation The Innovation and
Transformation KPA
This KPA is characterized by the organization’s achieving the specific focuses on how
results stated as goals for this KPA. capability growth and
related changes in
Goals (KPA: Innovation and Transformation) structures, systems,
and processes are
The goals for this KPA are as follows: planned and managed
to support a
• Management Thread – Create and maintain an organizational fundamental ability to
vision that values and rewards continuous improvement and respond to emerging
innovation and that drives organizational transformation opportunities for
process improvement
• Quality Thread – Extend quality practices through continuous and innovation.
improvement across the enterprise and all its processes based on
accepting that a stable environment is one of continuing change
through innovation and transformation

Commitment to Perform (KPA: Innovation and Transformation)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:

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• The organization follows a documented strategy in which BD

innovation and adaptability are articulated as strategic values.
For example, this strategy may include:
Emphasizing the importance of continuously adapting
management responses to a changing BD environment
Validating innovations in terms of their ability to enhance
customer value, management efficiency and effectiveness, and
organizational competencies
Emphasizing sponsorship by senior management of the
organizational activity for managing transformation initiatives
and their participation in overseeing transformation activities
• An organizational role is assigned responsibility for coordinating
activities for ongoing business development innovation.

Ability to Perform (KPA: Innovation and Transformation)

The preconditions that are necessary to implement this KPA
completely involve:
• The organization provides adequate resources and funding to
evaluate needs for innovations and to support transformation of Typically, adequacy
of resources and
organizational functions. funding is defined as
follows:
Activities Performed (KPA: Innovation and Transformation) A staff charged
specifically to
Actions that an organization must take in the Management Thread of coordinate
this KPA to assure that the process is established and will endure involve: ongoing BD
innovation
• Activities for ongoing innovations are evaluated, selected, planned, Funds for
and adapted in accordance with established methods. planned and
contingency-
• Innovative practices and technologies are routinely identified and based activities
selected for evaluation. for BD innovation
Support for
Sample objectives may be to: collecting and
analyzing needed
Conduct evaluations of trial efforts of innovative practices or data on BD
technologies where appropriate before these innovations are processes and
introduced into standard use work products to
support analyses
Disseminate innovative practices and technologies that performed to
evaluate
demonstrate their efficiency and effectiveness in trial efforts candidate
throughout the organization and across enterprise processes as changes
appropriate
• Opportunities are considered in a way that incorporates past
process improvements and evaluates potential innovations.

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• Areas throughout the BD operation are analyzed systematically,

and the organization maintains a defined transformation strategy.
Sample objectives may be to:
Assure that the group responsible for the transformation
activities works directly with the business development process
group to identify areas to be targeted for assessment as
candidates for possible obsolescence
Inform staff of new practices, technologies, and infrastructure
elements that are appropriate for consideration as
transformation candidates

Actions that an organization must take in the Quality Thread of this

KPA to assure that the process is established and will endure involve:
• Activities for ongoing innovations are evaluated, selected, planned,
and adopted in accordance with established methods.
• Innovation practices and technologies are routinely identified and
selected for evaluation.
• Data are collected and analyzed on activities involving continuous
improvement and innovation to identify areas that could benefit
from new practices, technology, and/or infrastructure elements.

Measurement (KPA: Innovation and Transformation)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the status and
efficacy of innovations in practices and technologies at the
enterprise level.
• Measurements are made and used to assess transformation efforts
in progress.

Verification (KPA: Innovation and Transformation)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews innovation and transformation
activities on a periodic basis.
These reviews verify that:
Activities for innovation and transformation are conducted in
accordance with the organization’s documented guidance.
Non-compliance issues are addressed.
• Senior management reviews progress in implementing
technological improvements on a periodic basis.

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These reviews verify that:

A plan is in place and followed for technology improvement.
Progress is made against the plan.
Timeliness exists in implementing technological improvements
that are recommended and approved throughout the
organization.
The improvements are useful in terms of the organization’s
stated values and strategic objectives.

5.3 Key Process Category: PEOPLE

The People KPC for BD-CMM Level 5 has one KPA, “Innovation and The Innovation and
Transformation.” Transformation KPA
highlights that an
organization that is
5.3.1 Key Process Area: Innovation and Transformation continually optimizing
its BD operation
This KPA is characterized by the organization’s achieving the specific proactively seeks to
results stated as goals for this KPA. innovate how it builds
competencies and
Goals (KPA: Innovation and Transformation) teams.

The goals for this KPA are as follows:

• Establish and maintain a learning organization in which people at
all levels, individually and collectively, are continually increasing
their capacity to produce BD results
• Engage all those associated with business development across the
enterprise in the ongoing cycle of innovating and transforming the
BD enterprise

Commitment to Perform (KPA: Innovation and Transformation)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented strategy that emphasizes
extending its organizational competencies in business development
across the enterprise.
For example, this strategy may include:
Articulating business development adaptability and innovation
as strategic values of the organization
Emphasizing the importance of continuously adapting the
management response to a changing business development
environment as competencies are extended across the
enterprise

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Assuring that a method of validating business development

innovations in terms of their ability to enhance organizational
competencies is available
Identifying the competencies the organization uses to perform
business development for each position
Assessing the results of knowledge, skills, and competency-
analyses activities to identify any needed interventions

Ability to Perform (KPA: Innovation and Transformation)

The preconditions that are necessary to implement this KPA
completely involve:
• The organization provides adequate resources and funding to Typically, adequacy
enable people to learn consciously and proactively in pursuit of of resources and
business development goals. funding is defined by
assigning a
• All individuals responsible for performing activities in BD leadership role to
business
innovations receive training in relevant evaluation methods and development
continuous improvement techniques. personnel to
coordinate activities
Sample topics covered in such training include: for ongoing BD
innovation across the
Use of quantitative and qualitative data to evaluate needs for enterprise.
innovations
Evaluation methodologies
Continuous improvement techniques
Knowledge management

Activities Performed (KPA: Innovation and Transformation)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• Individuals and teams are empowered to continuously improve
their performance.
Sample guidelines to follow may include:
Establishing a program for individual and team competency
development for voluntary participation
Communicating the availability of support for competency
development throughout the organization
Including activities for competency development in the
organization’s strategic and near-term workforce plans
Making changes to individual or team development plans based
on the activities performed to improve work processes and the
results of these activities

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Having individuals and teams define the processes they use to

perform their work, if they are the process owner
Having individuals and teams establish measurable personal
goals for continuous improvements in their work processes
Recognizing the accomplishments of individuals and teams in
continuously improving their work processes
• People continually learn from their own experiences and past
history as well as those experiences and best practices of others.
Sample objectives may be to assure that:
Individuals and teams continuously measure, analyze, and
improve their work processes and definitions.
Individuals and teams take corrective action as needed.
• Networks of relationships are strengthened and expanded in order
to create new opportunities for cooperation and joint action in
business development.
• A sense of commitment based on shared principles and guiding
practices is established.

Measurement (KPA: Innovation and Transformation)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to assess performance in terms
of overall organizational learning.

Verification (KPA: Innovation and Transformation)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews organizational initiatives to create,
acquire, and transfer new knowledge concerning business
development on a periodic basis.

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5.4 Key Process Category: Capabilities

The Capabilities KPC for BD-CMM Level 5 includes one KPA, The Innovation and
“Innovation and Transformation”. Transformation KPA
translates into a
culture focused on a
5.4.1 Key Process Area: Innovation and Transformation process of ongoing
optimization of both
This KPA is characterized by the organization’s achieving the specific processes and
results stated as goals for this KPA. infrastructure in a
dynamic environment
Goals (KPA: Innovation and Transformation) that encourages
flexibility and
The goals for this KPA are as follows: adaptability.

• Process Thread – Sustain a culture focused on innovation

throughout the organization, consciously discarding what is no
longer useful and assuring transformation to higher levels of
efficiency and effectiveness
• Infrastructure Thread – Create a dynamic environment in which
innovations in systems, technologies, and other infrastructure
elements are incorporated on an ongoing basis to transform
operational support and encourage organizational flexibility and
adaptability

Commitment to Perform (KPA: Innovation and Transformation)

To implement this KPA, an organization must have committed to the
following elements of policy and management support:
• The organization follows a documented strategy to manage
innovation and transformation across the enterprise.
• An organizational role is assigned responsibility to manage
innovation and transformation efforts enterprise wide.

Ability to Perform (KPA: Innovation and Transformation)

The preconditions that are necessary to implement this KPA Typically, adequacy
of resources and
completely involve: funding is defined by
• The organization provides adequate resources and funding to ensuring that
individuals with the
support BD innovations and to transform the organization, as necessary expertise
needed to meet enterprise objectives. staff a group
responsible for the
• Individuals responsible for guiding and monitoring innovation and organization’s
innovation and
transformation efforts receive guidance to perform these activities. transformation
efforts.

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Activities Performed (KPA: Innovation and Transformation)

Actions that an organization must take in this KPA to assure that the
process is established and will endure involve:
• The organization develops and maintains a coherent strategy for
innovation analysis and transformation management.
• Practices, technologies, and infrastructure elements are selected
and acquired for the organization according to the transformation
strategy.
• Appropriate new practices, technologies, infrastructure elements,
and changes are incorporated into standard and targeted processes
through a documented procedure.

Measurement (KPA: Innovation and Transformation)

Basic measurement practices necessary to determine an organization’s
status related to the process in this KPA include:
• Measurements are made and used to determine the status of
transformation changes.

Verification (KPA: Innovation and Transformation)

Actions necessary to validate that activities are performed in
compliance with the capability established in this KPA include:
• Senior management reviews the organization’s activities for
managed change on a periodic basis.
These reviews verify that:
Appropriate focus and scope are maintained.
The speed of innovation is geared to the customer business
cycle.
Resources and funding are appropriate for the opportunities
pursued.
The appropriate culture is maintained as evidenced by freedom
to try new things, acceptance of mistakes, and a positive
approach to problems.

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Chapter 6. Future Directions of the BD-CMM

Development of the BD-CMM had led to the establishment of a new

organization, Business Development Institute International (BD-Institute)
This chapter discusses
in 2004. Its mission is to “promote an innovative community of practice in what the BD-CMM
business development through appraisals and self-assessment, best does not cover and
practices, certifications, education, and benchmarking.” outlines near-term
and longer-term
The BD-Institute has established a range of products and services, as activities being
well as a network of Approved Providers, to support BD-CMM adopters. undertaken to
maximize its
However, with regard to the BD=CMM itself, BD-Institute is undertaking applicability as the
to manage the future growth and development of the model through three BD continuous
major strategies: improvement
standard throughout
• Expand the base of participation beyond exclusive involvement industry.
from Shipley Associates and the Association of Proposal
Management Professional
• Integrate more best practices from the business-to-business and
international marketplaces into future versions of the BD-CMM
• Build a “Business Development Body of Knowledge” to increase
the understanding of specific best practices in BD-CMM and their
understanding in specific organizations

6.1 What the BD-CMM Does Not Cover

The BD-CMM does
While the BD-CMM serves as a framework, a path, and a guide for not prescribe best
practices, processes,
process improvements in business development, there are a number of
assessment
areas that it does not cover. methodologies, or
implementation
The BD-CMM does not prescribe how key practices are to be requirements.
implemented. It describes an organization at each maturity level without
identifying specific means for getting there. For example, it may take
several years for an organization to move from one maturity level to the
next. It also does not advocate any specific technology or tools to use, nor
does it suggest how to select, hire, motivate, and retain competent people
committed to business development excellence.

Secondly, the BD-CMM is not a process or a process description.

Actual processes used in an organization depend on many factors
including organizational structure and size. The KPAs in the BD-CMM
may not map one-to-one with the actual processes used in a specific
organization. Even with adoption of the BD-CMM practices, each
organization will need to adjust them to improve their effectiveness with
an understanding of how the practices work in a particular business
context.

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 Business Development Capability Maturity Model (September 2004)

Further, the BD-CMM does not prescribe an assessment

methodology. Under the auspices of the BD-Institute, an appraisal
methodology has been prepared that validates that an organization has
achieved a given maturity level in terms of BD-CMM criteria. This allows
appraisal teams to use the BD-CMM to guide them in identifying and
prioritizing findings, which then are used by the organization’s BD
process group to plan and implement improvement strategies.

As a result, professional judgment is critical in using of the BD-CMM. The BD-CMM must
Each KPA must be interpreted in light of an organization’s business be interpreted
flexibly, expecially
environment and specific circumstances. That is, KPAs define what is to
when applying it to
be done, but they cannot mandate how the goals should be achieved. smaller organizations
Implementation decisions thus are left up to each organization according or unusual
to its culture and the experience of its staff. For the same reason, the circumstances so that
model does not stipulate that each organization must have the same unreasonable or
needlessly
definition of roles and responsibilities for its BD staff, nor does it imply
bureaucratic
that a specific organizational structure is mandatory. activities are not
implemented.
Finally, the BD-CMM does not specify detailed guidance as to
explicit BD practices that must be implemented. Instead, it sets a
framework to select and tailor practices according to the organization’s
history, culture, and environment. The BD-CMM is a roadmap for
organizational growth; and through the services of the BD-Institute, a
model for planning and implementing improvement programs is available.

6.2 Near-Term Activities

For the near term, the
The BD-Institute is focusing heavily to expand the base of most important
activities of the BD-
involvement and support for BD-CMM and its adopters in two key areas:
Institute involve
• Establish alliances with professional organizations with relevant expanding the base of
industry involvement
domain expertise needed to enhance the current BD-CMM and
in the model,
articulate an appropriately broad “Business Development Body of developing needed
Knowledge” services, and creating
an Approved Provider
• Create an Approved Provider Network to offer products and Network to assist
services – i.e., training, consulting, technology, and academic BD-CMM adopters to
education, research and development – appropriate for BD-CMM implement the model.
adopters to leverage as they implement improvement programs.

In addition, the BD-Institute is actively providing presentations and

training programs on the BD-CMM at conferences and professional
development days around the world. These programs are also being made
available upon request for delivery to interested organizations.

At the same time, the BD-Institute has developed an apprasial and self-
assessment tool, BD-Appraise™, for use by BD-CMM adopters through
the BD-Institute and selected Approved Providers. Organizations can
contact the BD-Institute or its Approved Providers to obtain access to this

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 Business Development Capability Maturity Model (September 2004)

tool and or can work with the BD-Institute to obtain and be certified in use
of the self-assessment tool directly.

For its full appraisal services, the BD-Institute has developed a

rigorous appraiser training program. This is offered periodically for people
interested in working as appraisers directly for the BD-Institute or working
internally as appraisers for their own organizations.

6.3 Longer-Term Activities

The BD-CMM is a
In the longer term, BD-CMM expects to be able to help organizations living document that
will be improved, but
compare the maturity of their BD practices with the state of practice across
it is anticipated that
industry. Using the BD-CMM as a benchmark can be done through the Version 1.0 will
BD-Institute’s common repository of data collected on organizations using remain the baseline
the BD-Appraise™ assessment tool or through maturity appraisals. These until at least 2006.
data then can indicate BD industry trends. This provides an
appropriate and
realistic balance
Another key component of the BD-Institute’s longer-term focus is to between the needs for
further refine and expand the BD-CMM based on its experience in BD stability and for
continuous improvement. The BD-CMM will continue to undergo continuing
extensive testing through the ongoing BD appraisals that BD-Institute development.
conducts, as well as though continuing industry experience in
implementing the model’s framework and best practices.

The BD-Institute will maintain configuration control of the BD-CMM

and will work with adopters, Alliance Partners, Approved Providers,
Certified Appraisers, and industry representatives to develop BD-CMM
Version 2.0. While all levels of the model may be revised, the emphasis
specifically will be on Levels 4 and 5, for two major reasons:
• Less is known at this time about organizations at these maturity
levels
• These are primary areas of best practice in which the BD
profession needs to advance and grow

The practices for these two levels will be refined as the BD-Institute works
closely with those organizations that are striving to understand and
achieve Levels 4 and 5.

6.4 Conclusion
As the emerging
The BD-CMM is emerging as the continuous improvement standard standard for BD
continuous
for business development. However, continuous improvement also applies
improvement, the
to the BD-CMM and its associated practices. The potential impact of BD-CMM must
changes to the BD-CMM on the BD community must be carefully balance the need for
considered, so that the BD-CMM, the BD-Institute, and products and stability and evolution
services for BD-CMM adopters will continue to evolve as experience and of its framework,
path, and guidance.

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 Business Development Capability Maturity Model (September 2004)

expertise grow. The BD-Institute will work closely with adopters, Alliance
Partners, Approved Providers, Certified Appraisers, government, industry,
and academia in continuing this evolution.

The BD-CMM provides a conceptual framework for improving

business development practices in a disciplined and consistent way.
• It does not guarantee that all BD initiatives will be successful or
that all problems will be resolved adequately.
• It identifies practices for a mature BD capability and provides
examples to assist in recognizing key components to consider, but
it is not meant to be exhaustive, dictatorial, or bureaucratic.

The BD-CMM will continue to inform and refine the characteristics of an

effective and efficient BD capability. However, only maturing
organizations can address all issues that are essential to their ultimately
optimizing their capability and assuring their leadership through
continuous innovation and transformation.

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Appendix A. References and

Bibliography
Anglin, Joan. “Parametrics and Proposals.” A presentation at the 8th Annual Conference of the
Association of Proposal Management Professionals. Lake Buena Vista, FL, 1997
Ballard, John, et. al. “Using Metrics in the Proposal Process.” A presentation at the 7th Annual
Conference of the Association of Proposal Management Professionals. San Francisco, CA, 1996
Hax, Arnoldo C., and Majhuf, Nicolas S. Strategic Management: An Integrative Perspective.
Englewood Cliffs, NJ: Prentice-Hall, Inc., 1984
Herbsleb, J. et. al. “Benefits of CMM-Based Software Process Improvement: Initial Results”
(CMM/SEI-94-TR-13, AD-A283848). Pittsburgh, PA: Software Engineering Institute, Carnegie
Mellon University, 1994
Humm, Michael, et. al. “Best Practices and Case Studies for Small Proposal Centers.” A
presentation at the 11th Annual Conference of the Association of Proposal Management
Professionals. Orlando, FL, 2000
Kerzner, Harold. Strategic Planning for Project Management Using a Project Management
Maturity Model. New York: John Wiley & Sons, Inc., 2001
LaSalle, Tom. “Measuring Success in the Proposal Center: Developing Meaningful Metrics for
Process Improvement.” A presentation at the 7th Annual Conference of the Association of
Proposal Management Professionals. San Francisco, CA, 1996
Mavrinac, S.C.; Jones, N.R,; and Meyer, M.W. The Financial and Non-Financial Returns to
Innovative Workplace Practices: A Critical Review. Cambridge, MA: Harvard Graduate School
of Business Administration, 1995
Meyer, Christopher. Fast Cycle Time: How to Align Purpose, Strategy, and Structure for Speed.
New York: The Free Press, 1993
Moore, J. L. Writers on Strategy and Strategic Management: The Theory of Strategy and the
Practice of Strategic Management at Enterprise, Corporate, Business, and Functional Levels.
New York: Penguin Books, 1992
Nutt, Howard. “What the National Benchmarking Studies Can’t Tell You.” A presentation at the
10th Annual Conference of the Association of Proposal Management Professionals. San Diego,
CA, 1999
O’Guin, Michael. “Best in Class and Competitive Intelligence.” A presentation at the 9th Annual
Conference of the Association of Proposal Management Professionals. Colorado Springs, CO,
1998
Rad, Parviz F. and Levin, Ginger. The Advanced Project Management Office A Comprehensive
Look at Function and Implementation. Boca Raton, FL: CRC Press, 2002
Roberts, Daryl. “Proposal Metrics to Characterize Winning Processes.” A presentation at the
10th Annual Conference of the Association of Proposal Management Professionals. San Diego,
CA, 1999

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 Business Development Capability Maturity Model (September 2004)

Rothschild, William E. “How to Assure the Continued Growth of Strategic Planning.” In

Competitive Strategic Management, edited by Robert Boyden Lamb. Englewood Cliffs, NJ:
Prentice-Hall, 1984.
Rothschild, William E. How to Gain (and Maintain) the Competitive Advantage in Business.
New York: McGraw-Hill Book Company, 1989
Toll, Steve. “Cost Justifying New Proposal Technology – A Look at Return on Investment.” A
presentation at the 11th Annual Conference of the Association of Proposal Management
Professionals. Orlando, FL, 2000
Uda, Bob. “A Proposal Development System for Improving your Win Ratio in the Commercial/
International Arena.” A presentation at the 10th Annual Conference of the Association of
Proposal Management Professionals. San Diego, CA, 1999
U.S. Department of Labor, Office of the American Workplace. High Performance Work
Practices and Firm Performance. Washington, D.C.: U.S. Department of Labor, 1993
Whiteley, Richard C. The Customer-Driven Company: Moving from Talk to Action. Reading,
MA: Addision-Wesley Publishing Company, 1991

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 Business Development Capability Maturity Model (September 2004)

Appendix B. Acronyms Used in BD-CMM

The following list of acronyms is provided to clarify how they are defined
throughout this document.
APMP Association of Proposal Management Professionals
BD Business Development
BD-CMM Business Development Capability Maturity Model
B&P Bid and Proposal
CIM Chartered Institute of Marketing
CMM Capability Maturity Model
CMMI Integrated Capability Maturity Model
CRM Customer Relationship Management
DoD Department of Defense
IPMA International Project Management Association
ISO International Organization for Standardization
KPA Key Process Area
KPC Key Process Category
MIS Management Information Systems
NASP National Association of Sales Professionals
NCMA National Contract Management Association
PMA Program Management Association
R&D Research and Development
RFP Request for Proposal
SA-CMM Capability Maturity Model for Software Acquisition
SAMA Strategic Account Management Association
SCE Software Capability Evaluation
SCIP Society of Competitive Intelligence Professionals
SE-CMM Capability Maturity Model for Systems Engineering
SEI Software Engineering Institute
SME Subject Matter Expert
STC Society for Technical Communication
SW-CMM Capability Maturity Model for Software

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 Business Development Capability Maturity Model (September 2004)

SWOT Strengths, Weaknesses, Opportunities, and Threats

WBS Work Breakdown Structure

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Appendix C. Glossary of Terms

The following list of terms is provided to clarify how they are defined
within this document, recognizing that many of these terms carry different
connotations in various markets, industries, and countries.
Ability to Perform One of the five common features. The preconditions that must
exist in a unit or organization to implement workforce
practices competently
Account Manager Person responsible for all business aspects of an account,
typically including responsibility to identify individual
opportunities and focusing the offer
Account Plan Documented strategy for development and management of an
individual account, most often established on the basis of an
individual customer or a particular line of business, including
allocation of the organization’s revenue objective
Acquisition Notebook Pursuit documentation, including decision planning,
supporting data, research, customer and competitor
intelligence, offer, records of the customer interaction,
strategy development, records of negotiation, customer
debrief, and lessons learned
Activities Performed One of the five common features. A description of the roles
and procedures necessary to implement a key process area
Archival Systems Organized collection of historical documentation of past
pursuits, past performance on contracts, and similar data,
including information typically requested by customers in
support of new business opportunities
Assessment Appraisal by a trained team of professionals to determine the
state of an organization’s current processes, to determine the
high priority process-related issues facing an organization, and
to obtain organizational support for process improvement
Bid Board Group of managers or executives delegated responsibility and
authority within the organization to review opportunities for
the purpose of making bid decisions, allocating resources to
support approved pursuits, and defining parameters for
solution, price, and risk (Also see “Opportunity Review
Board”)
Bid Decision Making an informed decision about whether to continue
positioning the prospect for the opportunity and obtaining the
resources for proposal development

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Bid Manager Person responsible for an individual pursuit. Synonymous

with capture manager in various industries and geographies,
especially in Europe
Bid Validation Decision Identifying any requirements that preclude bidding and
assuring that the proposal development plan is current
Black Hat Reviews Review of competitors’ likely strategies and solutions by
people who are independent of the pursuit team and are
experts on the customer and competitors
Blue Team Reviews Review of the capture plan to validate the win strategy by
people who are independent of the proposal team and are
knowledgeable about the prospect, the offering and
capabilities, and the competitors’ offering and capabilities
BD Administration Key Process Area in Level 2 of the BD-CMM that emphasizes
the administrative infrastructure necessary to maintain the
required discipline in the BD process and to monitor
performance and manage resources across multiple
opportunities
BD Personnel Professionals dedicated within an organization to
development, pursuit, and capture of new business, often
including sales, marketing, proposal, and other individuals
with the skills needed to implement the BD process
BD Process Key Process Area in Level 3 of the BD-CMM that covers
standard techniques for customer interface and sales that are
integrated into the overall business development process
Business Strategy Organization’s plan to achieve overall business objectives
Call Plan Documented strategy to manage interaction with customers as
part of the pursuit of a new opportunity
Campaign Manager Person responsible for the marketing activity before handoff
to a capture manager. Also used in some parts of industry as a
person responsible for multiple, connected pursuits, and in
other parts of industry to be synonymous with capture
manager.
Campaign Plan Documented strategy to manage pursuit of a multi-faceted
market area or group of opportunities, including allocation of
the organization’s revenue objectives associated with the
various aspects of the campaign
Capital Budgeting Financial planning associated with the acquisition of physical
assets, including those needed to support the organization’s
ability to win new business identified within its marketing
plans
Capability KPC Key Process Category in the BD-CMM that emphasizes
enhancing systems and processes through the increasing use

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 Business Development Capability Maturity Model (September 2004)

of resources and infrastructure to improve competitive

performance, growing capabilities based on meaningful
systems and processes that continuously evolve in response to
competitive environments, and increasingly sophisticated
levels of integration of business development with enterprise
systems
Capture Positioning individuals in the prospects’ organizations to help
assure that the solution and the organization are preferred over
that of the competition
Capture Manager Person responsible to manage a pursuit from bid decision to
contract award (Also see “Pursuit Manager”)
Capture Plan Documented analysis, strategies, and actions initiated
following the pursuit decision that details customer issues,
considerations relating to competitor and internal positioning,
approaches to be implemented, and management tasks to be
implemented to guide the capture of a particular opportunity
(Also see “Pursuit Plan”)
Capture Planning Process of assessing the customer and competitive
environment, and implementing strategies oriented toward
capturing a specific business opportunity
Capture Strategy Plan to win a specific, defined opportunity
Capture Team Small group of individuals within an organization who are
delegated responsibility to manage a pursuit from the pursuit
decision to contract award, typically including a capture
manager, a technical lead, and the prospective program
manager as a minimum, depending on the specific
requirements of the pursuit
Channel Manager Person responsible to manage how a product or service is to
be sold and delivered to a given market segment
Collaboration Process of working jointly within teams, used in terms of both
working in teams within the organization to create customer
solutions and working jointly with customers in order to
maximize customer input into proposed solutions
Commitment to Perform One of the five common features. The actions that an
organization must take to assure that a process is established
and will endure
Common Features Attributes within each Key Process Area that indicate whether
the implementation and institutionalization of a Key Process
Area are effective, repeatable, and lasting
Consultative Selling Method of interacting with customers that emphasizes
collaboration and seeks to define solutions based on clear
understanding of customer issues, needs, and acquisition goals

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Content Repositories Systems and databases where information about product and
services are stored for reuse in responding to customer
requests
Cost Bogeys Target prices established against the price to win for
designated items
Critical Skills Skills that, if not performed effectively, could jeopardize the
successful performance of a critical task
Critical Task Task that is essential to the success of a given pursuit and that
could jeopardize the successful performance if not
accomplished in accordance with plan
Customer KPC Key Process Category in the BD-CMM that focuses on
increasing customer value through recognition of the customer
as the basis for competitive discrimination; growing reliance
on value propositions as the basis for customer interactions,
and growing reliance on solutions and innovations as bases to
increase customer value
Customer Relationship Analysis Process of assessing the organization’s position with a
customer, typically based on identifying key aspects of a
successful relationship and analyzing perceived gaps as a
means to build a winning customer relationship
Customer Response Any of many possible reactions to requests from a given
customer, including requests for information (RFIs), requests
for quotation (RFQs), requests for proposal (RFPs),
invitations to bid (ITBs), or similar solicitations
Customer Service Manager Person responsible for delivering services to a given customer,
who in many organizations also has responsibility for solution
development during the business acquisition cycle
Defined Level Level in the BD-CMM that is characterized by use of a
standard business development process consistently across the
organization
Discretionary Budgeting Process of financial planning in an organization to establish
funding levels for projects or tasks not mandated by customer
contract
Enterprise Influence Key Process Area in Level 4 of the BD-CMM that focuses on
business development as an integral part of the organization’s
overall strategic planning and the practice of proactive
management leadership in all endeavors
Expense Budgeting Process of allocating an appropriate portion of a company’s
annual expenditures among competing projects
Focus KPC Key Process Category in the BD-CM that emphasizes
improving performance and synergy through progression from
reactive to proactive management involvement, an increasing

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 Business Development Capability Maturity Model (September 2004)

leadership role of the BD management team, a growing

influence of BD-related perspectives and needs on the process
of running the business, and increasing reliance on data and
emerging needs as drivers in management decision-making
Funnel Analysis Process of assessing the level of new business anticipated to
be contracted, based on a sales management system that
assigns varying probabilities to given opportunities and
thereby calculating probable future revenues
Funnel Management Organized system for managing the sales pipeline through
analyzing the funnel, assigning algorithms to projected
revenues, and working with the sales force to accurately
predict future revenue
Gap Closure Meeting Discussion held among members of a team to develop and
implement action plans to bring actual revenue up to the level
of anticipated or budgeted revenue
Goal Summary of the key practices of a key process area that can
be used to determine whether a key process area is effectively
implemented. The goals signify the scope, boundaries, and
intent of each key process area
Gold Team Review Review conducted to confirm that the offer in the proposal
entails acceptable profit and risk by senior managers in the
bidding organization who are directly responsible for the offer
and its execution
High-Performance Teams Key Process Area in Level 4 of the BD-CMM that focuses on
developing and maintaining business development related
competencies across the entire organization, thereby
permitting effective use of teams across the enterprise and
throughout the business acquisition cycle
Hot Button Singularly important issue or set of issues that are likely to
drive decisions, usually associated with customer buying
decisions
Individual Skills Development Key Process Area in Level 2 of the BD-CMM with the
purpose to provide participants in business development with
the individual training necessary for them to complete
assigned tasks
Infrastructure Management Key Process Area in Level 4 of the BD-CMM that addresses
the organization’s ability to manage the complete range of
resources needed to maximize both the performance and
efficiency of business development process operations,
including feedback into process improvement activities
Innovation and Transformation Key Process Area at Level 5 in the BD-CMM that highlights
that an organization is continuously optimizing and improving
its business development operation in a proactive fashion,

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 Business Development Capability Maturity Model (September 2004)

focusing on doing whatever is needed to transform

organizational support and encourage flexibility and
adaptability
Keep Cost Order Accounting records that are used to track the actual cost of a
project
Key Practices Infrastructure and activities that contribute most to the
effective implementation and institutionalization of a KPA;
the purpose is to communicate principles that apply to a wide
variety of environments and organizations that are valid across
a range of applications and that will remain valid over time
Key Process Areas Clusters of related activities that, when performed
collectively, achieve a set of goals considered to be important
for establishing process capability. Key process areas have
been defined to reside at a single maturity area
Kickoff Meeting Meeting that serves to initiate the proposal effort for all
contributors, answer questions about the opportunity, make
writing assignments, coordinate upcoming activities, and
create a cohesive team
Lessons Learned Review Review by people from the sales/capture and proposal teams
to determine how processes, strategies, and people can be
improved
Managed Level Level in the BD-CMM that is characterized by a business
development process that is routinely measured and managed
both quantitatively and qualitatively
Market Strategy Organization’s plan to achieve specific market objectives,
typically involving multiple sales
Maturity The organizational state in which its processes are fully
developed or perfected for desired effectiveness and efficiency
Maturity Level Well-defined, evolutionary plateau toward achieving a mature
business development process
Measurement One of the five common features. A description of the need to
measure the process and analyze the measurements
Mentoring Process of using experienced members of the organization to
provide personal support and guidance to less experienced
members of the staff
Mock-ups Page-for-page representations of the actual pages in the
finished proposal
Operations Manager Person responsible to oversee an organization’s performance
in fulfilling customer commitments under contract
Opportunity Review Board Group of managers or executives delegated responsibility and
authority within the organization to review opportunities for

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 Business Development Capability Maturity Model (September 2004)

the purpose of making bid decisions and allocated resources to

support approved pursuits (Also see “bid board”)
Optimizing Level Level in the BD-CMM that is characterized by a business
development process that continues to optimize performance
based on continuous improvement
Organizational Key Process Area in Level 3 of the BD-CMM that
Competencies focuses on career development and professional certification
for business development personnel
Organizational Tactics Key Process Area in Level 3 of the BD-CMM that focuses on
establishing a leadership role for business development in the
growth of the organization
People KPC Key Process Category in the BD-CMM that emphasizes
building competencies and teams through increasingly
sophisticated interactions within teams to promote winning
solutions and long-term value, decreasing reliance on “heroes”
in favor of broader organizational competence, and a growing
emphasis on learning organizations as competitive drivers
Pink Team Review Review conducted to validate the deployment of the strategy
and to verify compliance by people independent of the
proposal team
Pipeline Call Discussion held between a sales manager and the sales team to
determine the status of potential sales, typically categorized
by time to close and used to forecast expected revenue over a
given timeframe
Pipeline Management Managing the quantity and quality of opportunities to
maximize the strategic fit, return on investment, and the
appropriate allocation of resources to response generation
Positioning Marketing activities to establish the organization’s presence
and capabilities, aimed at identifying ways to improve the
organization’s ability to win a given program
Pre-Proposal Conference Meeting sponsored by a customer regarding a specific
acquisition project, in which prospective bidders are invited to
meet with the customer to gain current information on project
status and discuss issues related to the acquisition
Price-to-Win Methodology designed to assist an organization in deriving
the “right” price to be bid on a given opportunity and
providing the greatest probability to meet the customer’s
program budget target
Process Sequence of steps performed for a given purpose
Process Assets Resources available within an organization that support
process goals and tasks

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Process Capability Range of expected results that can be achieved by following a

process; the ability of a process to meet goals and
requirements
Process Maturity Extent to which a specific process is explicitly defined,
managed, measured, controlled, and effective. Maturity
implies a potential for growth in capability and indicates both
the richness of an organization’s process and the consistency
with which the process is applied throughout the organization
Process Performance Measure of the actual results achieved by following a process
Process Tailoring Activity of creating a process description by elaborating,
adapting, and/or completing the details of process elements or
other incomplete specifications of a process
Production Lead Person who supervises all aspects of production, including
word processing, graphics, desktop publishing, and production
Product Manager Person within an organization who is responsible for
developing, maintaining, sustaining, and improving a given
product or other standard offering routinely made available to
customers
Product Mix Organization’s desired combination and relative proportion of
offerings, managed based on the organization’s strategic goals
Product Quota Targeted proportion of specific products or other standard
offerings of an organization, used as sales goals in managing
the organization’s sales team
Program Manager Program and customer focused; frequently reviewing resumes
for program personnel, program organization and functions,
teammate coordination and resolution of teaming agreements,
coordinating with customer and subcontractors. Focused on
aspects outside the proposal
Project Manager Person who is responsible for developing a winning solution
that complies with the organization’s objectives; generally is
responsible to the strategic business unit manager for
profitability and risk management
Proposal Center Support organization dedicated to generating proposals and
other responses to customer requests during the business
acquisition cycle
Proposal Coordinator Person who helps the proposal manager control the proposal
development process. Typical tasks include helping develop
and update all plans, schedules, materials, and files;
coordinating with other process specialists; and helping with
all reviews
Proposal Manager Person responsible for proposal development, including
maintaining schedules; coordinating inputs, reviews, and

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 Business Development Capability Maturity Model (September 2004)

strategy implementation; resolving internal problems; and

providing process leadership
Proposal Management Plan Document that describes the roles, responsibilities, tasks, and
deadlines before writers start developing proposal sections,
volumes, and ultimately the complete proposal
Proposal Planning Process for scooping and defining a proposal effort while sales
efforts continue
Proposal Response Process through which an organization analyzes customer
requirements, defines a solution, and delivers a proposal to a
given customer
Proposal Specialist Member of the proposal team who understands and often
prepares compliance checklists, outlines, cross-reference
matrices, WBS, WBS dictionaries, and schedules
Proposal Strategy Plan to write a persuasive, winning proposal; a subset of the
capture strategy
Pursuit Acquisition project selected by the organization to be won,
typically selected based on assessing newly identified leads to
determine the organization’s interest and whether they are
winnable
Pursuit Criteria Basis for determining whether a given opportunity aligns with
the organization’s goals for new business capture
Pursuit Decision Making an informed decision about the opportunity to pursue
effectively and to allocate appropriate resources for capture
planning
Pursuit Manager Person responsible to manage a pursuit from bid decision to
contract award (Also see “capture manager”)
Pursuit Plan Documented analysis, strategies, and actions initiated
following the pursuit decision that details customer issues,
considerations relating to competitor and internal positioning,
approaches to be implemented, and management tasks to be
implemented to guide the capture of a particular opportunity
(Also see “capture plan”)
Quality Degree to which a system, component, or process meets
specified requirements; the degree to which a system,
component, or process meets customer requirements
Quality Control Key Process Area in Level 2 of the BD-CMM that emphasizes
the activities for controlling the quality of business
development outputs, both internal and external to the
performing organization
Quality Management Key Process Area in Level 3 of the BD-CMM that includes
the assurance of quality business development outputs and

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 Business Development Capability Maturity Model (September 2004)

products through activities for tracking, measuring, and

reporting on business development practices
Quantitative Control Use of appropriate quantitative or statistically-based
techniques to analyze a process, identify special causes of
variations in the performance of the process, and bring the
performance of the process within well-defined limits
Quantitative Process Management Key Process Area at Level 4 of the BD-CMM that
encompasses developing and managing the business
development process through a well-defined system of
metrics, internal and external feedback, and quality
management initiatives
Red Team Review Review to evaluate the proposal for customer focus,
completeness and clear communication of the win strategy
and solution by people who are independent of the proposal
team and offer different perspectives, typically by experts on
the prospect, the prospect’s industry, competitors, the
organization, technology, approach, and on preparing and
presenting winning proposals
Relationship Management Key Process Area at Level 4 of the BD-CMM that addresses
the process of building customer focus and collaborative
customer relationships that drive solutions to customer needs
and requirements in a decidedly proactive way
Repeatable Level Level in the BD-CMM that is characterized by a business
development process that addresses individual opportunities
through the reuse of past practices
Response Generation Key Process Area in Level 2 of the BD-CMM that addresses
activities for understanding customer requirements and needs
and for preparing a response to the customer as a basis for a
transaction
Response Standards Set of criteria established by an organization to guide proposal
responses in accordance with defined quality measures
Review Criteria Set of standards established by the organization to guide
review of solutions and incremental products of the BD
process based on stated content and quality measures
Revenue Gap Analysis Method to understand the organization’s progress toward
attaining specific revenue goals, by systematically assessing
projected revenue versus what can be substantiated in the
sales pipeline
Revenue Quota Targeted proportion of specific products or other standard
offerings of an organization used as sales goals in managing
the organization’s sales team to deliver specific levels of
revenue during a given period of time

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 Business Development Capability Maturity Model (September 2004)

Revenue Target Goal established by an organization to define the level of

contract revenue to be delivered by the organization during a
specified period of time
Reward Variable amounts of money or other considerations provided
to individuals or groups at random times without any prior
agreement as to conditions of receipt; made to reinforce the
skills and behaviors that the organization values
Sales/Capture Procedures Key Process Area in Level 2 of the BD-CMM that covers the
documented and repeatable techniques employed for making a
sale and developing business
Sales Criteria Standards established by an organization to define the
parameters for selecting opportunities and managing the sales
process
Sales Manager Person responsible to manage an organization’s sales force
Sales Quota Level of sales defined by an organization as the minimum
acceptable quantity of business to be booked by its sales force,
individually and as a group
Sales Review Assessment of current status of the sales process in terms of
contracted deliveries, booked sales not yet delivered, and
projected sales in the pipeline
Should Costs Assessment of the costs of individual elements to comprise
the price to win
Solution Development Key Process Area in Level 3 of the BD-CMM that covers
developing and managing the process of tailoring solutions to
customer needs and requirements
Solution Development Manager Person within an organization’s technical function who is
assigned responsibility to lead development of the solution for
a specific pursuit with a given customer

Solution Development Plan Document describing the roles, responsibilities, tasks,

schedule, and risks associated with developing a solution for a
specific pursuit with a given customer
Stated Value Set of documented principles that are intended to guide
decisions that the organization makes about how it conducts
its business, how it treats its workforce, how it interacts with
its environment, and other important issues
Storyboarding Conceptual planning tool used to help writers plan each
section before drafting text; contains assignments, bid request
requirements, strategies, preliminary visuals, and contents
Strategy Method or plan for achieving a goal
Strategic Selling® Sales methodology developed by Miller Heiman that
emphasizes that every sale begins with selling a concept

©2003-2004 Business Development Institute International. All Rights Reserved Page 119
 Business Development Capability Maturity Model (September 2004)

(defined as the prospective customer’s “solution image”)

before selling a specific solution, and that provides a set of
disciplines by which to manage the sales process
SWOT Analysis Approach used to examine the proposal from the perspective
of strengths, weaknesses, opportunities, and threats
Support Systems Key Process Area in Level 3 of the BD-CMM that includes
standards for physical facilities, communications,
collaborative work environments, and other systems
supporting business development
System Collection of components organized to accomplish a specific
function or set of functions
System Integration Key Process Area in Level 4 of the BD-CMM that focuses on
the extent to which the business development process has
establishes linkages with other relevant enterprise processes to
facilitate efficient, effective interchanges between business
development process needs and input/feedback from ancillary
enterprise processes
Tactics Actions taken to implement a given strategy
Tailoring Approach to modify a process, standard, or procedure to better
match process or product requirements
Task Sequence of instructions or activities treated as a basic unit of
work
Team Small number of people with complementary skills committed
to a common purpose, performance goals, and work processes
for which they hold themselves mutually accountable
Technology Application of science and/or engineering in accomplishing
some particular result
Training Activities undertaken to assure that all staff members have the
skills required to perform their assignments
Unit Single, defined organizational component (e.g., a department,
section, or project) within an organization
Verification One of the five common features. The steps to assure that the
activities are performed in compliance with the process that
has been established
Work Breakdown Structure Deliverable-oriented grouping of project elements that
organizes and defines the total work scope of the project; each
descending level represents an increasingly detailed definition
of the project work
WBS Dictionary Collection of work package descriptions that includes, among
other things, planning information such as schedule dates, cost
budgets, and staff assignments

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 Business Development Capability Maturity Model (September 2004)

Work Environment Key Process Area in Level 2 of the BD-CMM that focuses on
establishing and maintaining the physical infrastructure
necessary to support a repeatable business development
process

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 Business Development Capability Maturity Model (September 2004)

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 Business Development Capability Maturity Model (September 2004)

Appendix D. Key Practice Area (KPA)

Matrices by BD-CMM Goals and Key Process
Categories (KPCs)

This appendix provides views of the BD-CMM in terms of the overall

goals of the levels/KPCs and the four KPCs. In these views, the primary
The goals and KPC
matrices provide a
focus is on the progression within the overall model, as well as the specific
particularly efficient improvement path needed to maximize the efficiency and effectiveness of
way to define a business development (BD) organization and related operation within
improvement each of the KPCs.
strategies, in that
they view The matrices provide the following views of the BD-CMM:
improvement
“paths” separately. • Summary of Goals within the BD-CMM (page 124)
• Summary of KPA Common Features within the Customer KPC
(page 126)
• Summary of KPA Common Features within the Management
Thread of the Focus KPC (page 128)
• Summary of KPA Common Features within the Quality Thread of
the Focus KPC (page 130)
• Summary of KPA Common Features within the People KPC
(page 132)
• Summary of KPA Common Features within the Process Thread of
the Capability KPC (page 134)
• Summary of KPA Common Features within the Infrastructure
Thread of the Capability KPC (page 136)

©2003-2004 Business Development Institute International. All Rights Reserved Page 123
 Summary of Goals within the BD-CMM
BD-CMM Goals by KPA and Level
LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5
Address new, individual Use a standard, defined Manage, control, and measure a Continuously and predictably
opportunities by reusing past, business development business development system improve business
successful project process consistently across that is integrated with enterprise development performance
management and business the organization operations within the enterprise
KPC development processes
Customer KPA: Response Generation KPA: Solution Development KPA: Relationship Management KPA: Innovation and Transformation
• Manage the generation of customer • Deploy and use a standard approach to • Maintain and extend customer relationships • Deploy an effective CRM-management
responses based on documenting, solution development that fosters throughout the business acquisition cycle to system and related processes that
approving, and reviewing opportunities customer collaboration and assures maximize value offered and delivered to the assure customer focus and are
and their related response plans resultant customer value and competitive customer institutionalized within the organizational
• Build on past successes by standardizing discrimination • Integrate customer relationship culture and behavior
reuse data and training individuals in • Promote early solution development management (CRM) with all aspects of
relevant techniques of customer teams and support them through internal business development processes
response meaningful engagement of senior end-to-end
management

Focus: KPA: BD Administration KPA: Organizational Tactics KPA: Enterprise Influence KPA: Innovation and Transformation
Management • Plan and administer BD activities in • Establish a leadership role for the BD • Integrate BD strategies with the • Create and maintain an organizational
accordance with defined procedures and organization in the growth of the organization’s overall strategic planning to vision that values and rewards
consistent decision criteria company assure alignment of organizational goals, continuous improvement and innovation
• Establish and support a BD process values, resources, and investments and that drives organizational
group to coordinate and centralize BD • Practice proactive management leadership transformation
activities across the organization and to of both strategic goals of the organization
assure that lessons learned are collected and the progress of individual customer
and used initiatives and pursuits

Focus: Quality KPA: Quality Control KPA: Quality Management KPA: Quantitative Process Mgmt KPA: Innovation and Transformation
• Define quality standards applicable to • Establish a quality program for business • Establish and maintain a quality baseline for • Extend quality practices through
business development and apply them to development that assures consistent the organization’s business acquisition life continuous improvement across the
BD operations application to BD opportunities and cycle that deploys quantitative process enterprise and all its processes based on
identifies & implements quality management in pursuit of continuous accepting that a stable environment is
improvement for inclusion in the BD improvement one of continuing change through
process innovation and transformation

©2003-2004 Business Development Institute International. All Rights Reserved Page 124
People KPA: Individual Skills Development KPA: Organizational Competencies KPA: High-Performance Teams KPA: Innovation and Transformation
• Develop and reward individual skills in Development • Use high-performance BD teams as an • Establish and maintain a learning
areas required to acquire new business • Define core competencies needed for integral part of overall organizational organization in which people at all levels,
• Recognize outstanding individual effective business development and strategies across the business acquisition individually and collectively, are
performance in BD efforts and leverage communicate them throughout the life cycle continually increasing their capacity to
such individual skills on subsequent BD organization • Authorize, deploy, empower, support, hold produce BD results
efforts • Offer career opportunities across the accountable, and reward experienced • Engage all those associated with
organization that provide growth in sales/capture and proposal teams business development across the
business development enterprise in the ongoing cycle of
innovating and transforming the BD
enterprise

Capabilities: KPA: Sales/Capture Procedures KPA: BD Processes KPA: BD System Integration KPA: Innovation and Transformation
Process • Gain control of BD activities based on • Deploy and use a standard BD process • Integrate all processes and systems • Sustain a culture focused on innovation
obtaining management approval for each throughout the entire organization relevant to business development throughout the organization, consciously
pursuit and by documenting and • Maintain consistency across BD work throughout the business acquisition cycle discarding what is no longer useful and
reviewing sales/capture plans products by integrating methods, tools, and across all enterprise operations assuring transformation to higher levels
and disciplines and by systematically • Maintain consistency in BD activities and of efficiency and effectiveness
analyzing BD performance and direct products through systematic assessment of
customer feedback their ability to advance customer
relationships and the extent of their
integration with other enterprise processes

Capabilities: KPA: Work Environment KPA: Support Systems KPA: Infrastructure Management KPA: Innovation and Transformation
Infrastructure • Provide workspaces and resources • Define, establish, use, and maintain a • Manage and adapt the BD infrastructure in • Create a dynamic environment in which
needed for BD projects suitable infrastructure to support BD accordance with a formalized strategy at the innovations in systems, technologies,
operations throughout the business enterprise level and other infrastructure elements are
acquisition cycle and across the • Define and deploy BD systems and incorporated on an ongoing basis to
organization infrastructure across the enterprise in transform operational support and
response to the full range of user needs and encourage organizational flexibility and
relevance in addressing the full spectrum of adaptability
customer relationships to be supported

©2003-2004 Business Development Institute International. All Rights Reserved Page 125
 Summary of KPA Common Features within the Customer KPC
Key Practices
Common Response Generation Solution Development Relationship Management Innovation/Transformation
Features Level 2 Level 3 Level 4 Level 5
Goals Manage the generation of customer responses Deploy and use a standard approach to solution Maintain and extend customer relationships Deploy an effective CRM management system and
based on documenting, approving, and development that fosters customer collaboration throughout the business acquisition cycle to related processes that assure customer focus and are
reviewing opportunities and their related and assures resultant customer value and maximize value offered and delivered to the institutionalized within organizational culture and
response plans competitive discrimination customer behavior
Build on past successes by standardizing reuse Promote early solution development teams and Integrate customer relationship management
data and training individuals in relevant support them through meaningful engagement of (CRM) with all aspects of internal BD processes
techniques of customer response senior management end-to-end

Commitment to The organization follows a documented The organization follows a documented procedure The organization follows a documented strategy The organization follows a documented strategy for
procedure for generating responses to for planning and managing its offerings to for customer collaboration continuously improving its customer collaboration
Perform customers customers initiatives
An organizational role is assigned for response An organizational role is assigned for solution An organizational role is assigned to coordinate The organization establishes a strategy that supports
generation development customer collaboration activities BD adaptability & innovation as strategic values of the
organization to drive customer-oriented solutions

Ability to Perform An individual(s) is assigned responsibility to An individual(s) is assigned responsibility for Individuals are assigned responsibility for An individual is assigned responsibility to facilitate
assure responses are generated to customers. solution development customer collaboration innovations/partnerships among customers, suppliers,
other stakeholders
The organization provides adequate resources The organization provides adequate resources and The organization provides adequate resources The organization provides adequate resources and
and funding for generating responses to funding to manage solution development using the and funding for collaborative interactions with funding to develop a customer infrastructure that
customers defined process and to participate with customers customers throughout the purchasing/business facilitates innovation and partnerships among
early in their acquisition cycle acquisition cycle customers, suppliers, & other stakeholders
Individuals receive guidance in methods Responsible individuals receive guidance in Individuals receive guidance in CRM Individuals receive guidance in the use of quantitative
relevant to response generation responsibilities tailoring the organization’s standard solution and qualitative data in order to create BD innovations
development process to meet specific customer and to be able to validate them in terms of their ability to
needs and in use of the related process assets enhance customer value
BD managers receive guidance in solution Executives and managers receive guid-ance in
development based on the defined process collaborative leadership and CRM
Members of the organization receive an
orientation on collaborative leadership, CRM,
and the organization’s CRM mentoring program

Activities Response teams document and review Solution development teams routinely review, High-performance teams strategize, plan, and Enterprise-wide strategies are developed based on
customer requirements before generating document, and review customer preferences, develop solutions in proactive, iterative ways assessments of evolving customer requirements,
Performed responses needs, and requirements as a basis for customer according to the organization’s documented technology, and company lines of business
interaction and response approach
Response teams prepare and follow response Solution development teams prepare, issue, and CRM plans are prepared and issued following BD teams deploy best practices and plans in
plans for customer responses, based on follow documented solution development plans the documented procedure partnership with customers to develop innovative
documented procedures based on documented processes solutions to customer issues
Responses are prepared in accordance with Customer solution preferences are documented Customer feedback is routinely obtained on BD leadership regularly keeps its customers aware of
defined customer needs, instructions, and and communicated throughout the solution solution effectiveness appropriateness and fit in newly implemented innovations and their benefits
requirements development process to the response team the customer environment

©2003-2004 Business Development Institute International. All Rights Reserved Page 126
 Formal reviews are held at selected milestones Each solution is reviewed to determine whether it The customer environment and unique The BD team regularly suggests innovative methods to
to address initiation and progress of response should use a tailored version of the standard processes are assessed through established meet emerging market and customer needs
development methodology processes
Peer review meetings are held regularly BD personnel collaborate with customers in A variety of tools and techniques are used and The BD team actively researches innovative response
throughout the response generation process developing and evaluating alternative solutions to applied in support of customer and processes and tools to improve cost effectiveness &
customer needs organizational objectives flexibility of the solution development process
Kickoff meetings for response generation are Customer interaction is maintained as long as Mentors are selected, prepared for their A program of continuous improvement is established
held with the entire response team possible to assure understanding of the value assignments, and assigned to individuals and maintained to encourage individuals & teams
sought and/or teams across the enterprise to propose improvements and
innovations
Information from responses is collected in order A database of historic solutions is maintained and A CRM information system is established
to begin to develop a database for use on future used for standard offerings and for planning,
solutions scheduling, and estimating
Marketing capability is developed based on The objectives and structure of the CRM
customer needs, and action plans are prepared for mentoring plan are defined
favorable customer positioning
Data are routinely collected on competitor’s
insights and strategies to establish a library on
competitors so that probable competitors for each
opportunity are known
Intelligence gathering systems are established to
provide marketplace and competitive information

Measurement Measurements are made and used to Measurements are made and used to determine Measurements are made and used to Measurements are made and used to assess activities
determine the status of activities for response the effectiveness of the solution development determine the effectiveness of the CRM of continuous improvement and innovation in terms of
generation process process customer collaboration
Measurements are made and used to evaluate the Measurements are made and used to Measurements are made and used to validate
usefulness of the solution development information determine the status and value of the CRM innovative practices and technologies and to assess the
system mentoring activities value added benefit to customers

Verification Senior management reviews response Senior management reviews solution development Senior management reviews the activities for Senior management reviews the activities for customer
generation activities on a periodic basis activities on a periodic basis managing customer relationships on a periodic collaboration initiatives on a periodic basis
basis
The response manager reviews response The solution manager reviews the solution Senior management reviews progress to
generation activities on a periodic and event- development activities on a periodic and an event- determine the actions needed to collabor-ate
driven basis driven basis adequately with the customer on a full range of
issues on a periodic basis
Senior management reviews competitive analysis Senior management reviews the mentoring
activities on a periodic basis program in CRM to assure it is meeting its
intended objectives

©2003-2004 Business Development Institute International. All Rights Reserved Page 127
 Summary of KPA Common Features within the Management Thread of the Focus KPC
Key Practices
Common BD Administration Organizational Tactics Enterprise Influence Innovation/Transformation
Features Level 2 Level 3 Level 4 Level 5
Goals Plan and administer BD activities in Establish a leadership role for the BD Integrate BD strategies with the organization’s Create and maintain an organizational vision that values and
accordance with defined procedures and organization in the growth of the company overall strategic planning to assure alignment of rewards continuous improvement and innovation and that
consistent decision criteria organizational goals, values, resources, and drives organizational transformation
investments
Establish and support a BD process group to Practice proactive management leadership of both
coordinate and centralize BD activities across strategic goals of the organization and the
the organization and to assure that lessons progress of individual customer initiatives and
learned are collected and used pursuits

Commitment to The organization follows a documented The organization follows a standardized BD The organization follows a documented policy that The organization follows a documented strategy in which BD
procedure for BD administrative management process and directs use of this process across BD goals are integrated with all long-term, innovation and adaptability are articulated as strategic values
Perform the organization strategic activities & investments associated with
offerings and other elements affecting customer
relationships
An organization role is assigned responsibility An organizational role is assigned to lead a BD An organizational role is assigned to coordinate An organizational role is assigned responsibility for
for BD administration activities process group and deploy organizational customer feedback and advocacy across the coordinating activities for ongoing BD innovation
processes organization as part of both strategic and
operational management
The organization follows a documented The organization’s strategy for continuous process
strategy to capture and apply lessons learned improvement provides ongoing feedback into the
for continuous process improvements enterprise’s strategic direction and tactical
operations

Ability to The organization provides adequate resources The organization provides adequate resources The organization provides adequate resources The organization provides adequate resources and funding
and funding for BD administrative activities and funding for process deployment and funding to support and manage the to evaluate needs for innovation and transform
Perform application of strategic BD goals to specific organizational functions
pursuits
Individuals are assigned responsibility for An organizational role is assigned to support BD personnel are empowered to champion broad-
assuring BD administrative activities are pursuits and all BD activities across the based organizational strategies to position the
performed organization organization for strategic business growth
Individuals responsible for performing BD BD personnel receive guidance in process Individuals responsible for both tactical and
administrative activities receive guidance in the skills, tasks, and deliverables strategic BD activities receive guidance to
organization’s BD administration practices enhance skills and competencies
An orientation is provided to other people
peripherally involved in BD initiatives

Activities Objective new revenue (sales) criteria are A BD support strategy is deployed, with Enterprise-wide strategies are applied to define Activities for ongoing innovations are evaluated, selected,
established for each sales/business/selling unit checklists used throughout the process to BD needs, requirements, and budgets planned, and adopted in accordance with established
Performed validate performance methods

©2003-2004 Business Development Institute International. All Rights Reserved Page 128
 Potential improvements in processes, tools, or A structured approach is followed to capture Data are collected and maintained on activities Innovative practices and technologies are routinely identified
resources, which could enhance sales and apply lessons learned for continuous involving continuous improvement and selected for evaluation
performance are identified, and actions are process improvement
taken to provide them
Sales opportunities and internal funding are Opportunities are selected based on well Opportunities are selected and prioritized based Opportunities are considered in a way that incorporates past
tracked, subjected to management approval, established pursuit criteria on established BD strategies that consider broad process improvements and evaluates potential innovations
and reviewed periodically organizational impacts
Progress against sales plans is periodically Pursuits are planned, performed, and managed Broad customer strategies and individual pursuits Areas throughout the BD operation are systematically
evaluated, discussed, and documented in accordance with established methodologies are planned, performed, & managed in analyzed, and the organization maintains a defined
accordance with defined best practices and transformation strategy
ongoing organizational lessons learned
Those responsible for managing BD practices Appropriate personnel are assigned and Personnel are assigned and authorized to perform
maintain an awareness of each sales unit’s authorized to perform pursuit tasks in pursuit tasks and coordinate necessary enterprise
performance accordance with process requirements interactions as tailored to individual customer
strategies and as required to achieve both tactical
and strategic enterprise goals
Those responsible for managing sales units Pursuit managers are routinely assigned based
maintain ongoing communication about sales on the size and complexity of the opportunity
performance from those performing sales
activities within their unit
A consistent method is defined and
documented for reviewing and providing formal
feedback on sales performance on a periodic
or event-driven basis
The organization periodically reviews its new
revenue criteria to determine appropriateness
under changing business or organizational
conditions and, if necessary, revises them
Competitor awareness is maintained on an
opportunity-by-opportunity basis

Measurement Measurements are made and used to Measurements are made and used to predict Measurements are made and used to predict Measurements are made and used to determine the status
determine the status of activities involving BD needs and manage pursuit progress needs, manage pursuit progress, and guide an and efficacy of innovations in practices and technologies at
administration. ongoing process of refining organizational the enterprise level
objectives
Enterprise-level metrics are established, collected, Measurements are made and used to assess transformation
and evaluated routinely efforts in progress

Verification Senior management reviews BD administration Senior management reviews process Senior management reviews broad customer Senior management reviews innovation and transformation
procedures and activities on a periodic basis. compliance on a periodic basis strategies and individual pursuits to assure activities on a periodic basis
alignment of pursuit activities with products with a
balance of customer, goals, enterprise strategies,
& broad operational implications
Senior management reviews progress in implementing
technological improvements on a periodic basis

©2003-2004 Business Development Institute International. All Rights Reserved Page 129
 Summary of KPA Common Features within the Quality Thread of the Focus KPC
Key Practices
Quantitative Process Innovation and
Common Quality Control Quality Management Management Transformation
Features Level 2 Level 3 Level 4 Level 5
Goals Define quality standards applicable to Establish a quality program for business Establish and maintain a quality baseline for Extend quality practices through continuous
business development and apply them to BD development that assures consistent the organization’s business acquisition life improvement across all enterprise processes
operations application to BD opportunities and identifies cycle that deploys quantitative process based on accepting that a stable
and implements quality improvement for management in pursuit of continuous environment is one of continuing change
inclusion in the BD process improvement through innovation and transformation
Commitment to The organization follows a documented The organization follows a documented The organization follows a documented The organization follows a documented
Perform procedure for implementing BD quality procedure for implementing quality policy for measuring and quantitatively strategy in which BD innovation and
control activities management in BD activities controlling the performance of the BD adaptability are articulated as a strategic
process values
An organization role is assigned An organizational role is assigned lead An organizational role is assigned An organizational role is assigned
responsibility for assuring that BD quality- responsibility for maintaining and responsibility for coordinating the BD responsibility for coordinating activities for
control activities are performed implementing quality management quantitative process activities ongoing BD innovation
procedures across all BD activities
The organization follows a documented
strategy to capture and apply lessons
learned for continuous process
improvements and ongoing feedback into
enterprise direction and tactical operations
Ability to Perform The organization provides adequate funding The organization provides adequate The organization provides adequate The organization provides adequate
and resources to support quality control resources and funding to manage the quality resources and funding for the quantitative resources and funding to evaluate needs for
activities of the BD process, including provision for process management activities innovation and transformation of
improving the quality function organizational functions
Guidance is provided for quality control Quality personnel receive required guidance Individuals implementing or supporting
personnel relevant to BD activities in performance tracking, process quantitative process management receive
assessment, and audit methodologies required guidance to perform these activities
relative to the BD process
BD team members receive an orientation to BD team members receive guidance in Members of the BD organization and
quality control quality management sales/capture teams receive an orientation
on the goals and value of quantitative
process management
Quality assurance and quality control are
structured so they are distinct yet
complementary activities

©2003-2004 Business Development Institute International. All Rights Reserved Page 130
Activities Activities affecting BD quality are identified A quality plan is developed and used as the A plan for quantitative process management Activities for ongoing innovations are
Performed basis for BD quality management activities is developed according to a documented evaluated, selected, planned, and adopted in
procedure accordance with established methods
Quality control activities are planned and Quality management activities are performed Quantitative process management activities Innovative practices and technologies are
conducted routinely in accordance with the quality management are performed in accordance with the routinely identified and selected for
plan quantitative process management plan evaluation
Historical metrics are maintained for Quality improvements are implemented A strategy for data collection, quantitative Data are collected and maintained on
individual opportunities. according to integrated change control analyses, and reporting to be performed is activities involving continuous improvement
procedures determined based on the defined BD process and organizational transformation to identify
areas that could benefit from new practices,
technology, and/or infrastructure elements
Quality audits are conducted on a periodic Trends in the organization’s BD capabilities
basis are compared quantitatively to its BD goals
Reports documenting results of quantitative
process management activities are prepared
and distributed
Measurement Measurements are made and used to Measurements are made and used to Measurements are made and used to Measurements are made and used to
determine cost and schedule status of quality evaluate the status of quality management determine the status of the activities for determine the status and efficacy of
control activities activities quantitative process management innovations in practices and technologies at
the enterprise level
Measurements are made and used to assess
the transformation efforts in progress
Verification Senior management reviews quality control Senior management reviews quality Senior management reviews the activities for Senior management reviews innovation and
activities relative to business development on management activities relative to business quantitative process management on a transformation activities on a periodic basis
a periodic basis. development on a periodic basis periodic basis
BD management reviews results of quality Senior management reviews progress in
assurance audit activities on a periodic basis implementing technological improvements on
a periodic basis

©2003-2004 Business Development Institute International. All Rights Reserved Page 131
 Summary of KPA Common Features within the People KPC
Key Practices
Individual Skills Develop Org Competencies
Common Develop High-Performance Teams Innovation/Transformation
Features Level 2 Level 3 Level 4 Level 5
Goals Develop and reward individual skills in areas Define core competencies needed for effective Use high-performance BD teams as an integral part Establish/maintain a learning organization in which people at
required to acquire new business business development and communicate them of overall organizational strategies across the all levels, individually and collectively, are continually
throughout the organization business acquisition life cycle increasing their capacity to produce BD results
Recognize outstanding individual performance Offer career opportunities across the Authorize, deploy, empower, support, hold Engage all those associated with business development
in BD efforts and leverage such individual skills organization that provide growth in business accountable, and reward experienced sales/capture across the enterprise in the ongoing cycle of innovating and
on subsequent BD efforts development and proposal teams transforming the BD enterprise

Commitment to The organization follows a documented The organization follows a documented The organization follows a documented procedure The organization follows a documented strategy that
procedure for its BD training program procedure concerning opportunities for career requiring routine assignment of experienced emphasizes extending its organizational competencies in BD
Perform development and professional advancement sales/capture and proposal teams based on the across the enterprise.
consistent with its goals for organizational size and complexity of the opportunity
competency development
An individual or group is assigned responsibility An organizational role is assigned responsibility An organization role is assigned responsibility for
for fulfilling the BD training needs of the for defining a BD career path assisting & advising sales/capture/proposal teams
organization to function as high-performance teams
The organization follows a documented The organization follows a documented procedure
procedure to recognize and reward individual to recognize and reward high-performance teams
performance

Ability to The organization provides adequate resources The organization provides adequate resources The organization provides adequate resources and The organization provides adequate resources and funding to
and funding for individual training in business and funding to support and motivate career funding for capture and proposal teams to function enable people to learn consciously and proactively in pursuit
Perform development development and professional advancement as high-performance teams of BD goals
Individuals in the training organization receive New BD process users receive orientation and Individuals responsible for BD activities receive All individuals responsible for performing activities in BD
guidance on the necessary skills and knowledge mentoring during opportunity response activities training in relevant evaluation methods and innovation receive training in relevant evaluation methods and
to assess requirements regarding needed BD continuous improvement techniques continuous improvement techniques
training
The organization provides adequate resources The compensation system rewards team members
and funding to recognize and reward individual for team performance
BD activities

Activities The organization identifies critical BD skills and The organization identifies core competencies to Continuous team development is based on analysis Individuals and teams are empowered to continuously
training needs be developed and sustained for its BD functions of team performance improve their performance
Performed
Individuals and groups receive the training they Training is provided on core competencies and Institutionalized best practices and just-in-time People continually learn from their own experiences and past
need to perform their BD tasks in support of career growth training and process improvements are collab- history as well as the experiences and best practices of others
oratively applied IAW pursuit requirements
Those responsible for training develop and Training in core competencies is scheduled, Teams employ collaborative tools and Networks of relationships are strengthened and expanded in
maintain a plan specifically for BD training, and evaluated, and tracked against achievement of communications within the development order to create new opportunities for cooperation and joint
training is tracked against the plan increased competencies and certifications environment action in BD
Potential improvements that could enhance Training is augmented through work assign- High-performance teams reuse best practices in A sense of commitment is established, based on shared
individual performance are identified and actions ments aimed at enhancing competencies or accordance with pursuit requirements principles and guiding practices
taken to provide them fulfilling career development criteria

©2003-2004 Business Development Institute International. All Rights Reserved Page 132
 Objective performance criteria are defined and Individual performance assessments are linked Team performance is evaluated on a periodic and
documented to provide feedback on individual to increased BD competency and event-driven basis
performance on a periodic or event-driven basis professionalism, and individuals actively identify
and pursue learning opportunities
Staffing decisions are based in part on Sales/capture and proposal teams are assigned to
developing careers through appropriate, selected pursuits based on prior successes in
graduated career opportunities related pursuits
Individuals understand their roles and Experienced process owners and specialists lead
responsibilities on sales/capture and proposal pursuit activities
teams
Incentive programs are implemented to Rewards/recognition are based on team
encourage increased competencies performance & individual contributions to team
activities
Appropriate levels of authority and accountability
are assigned to those designated to lead pursuit
efforts
Team members consistently adhere to allo-cated
budgets and schedules and anticipate requirements
for deviation and waiver

Measurement Measurements are made and used to determine Measurements are made and used to determine Measurements are made and used to assess the Measurements are made and used to assess performance in
the status of individual skill development the status of competency development activities performance of each sales/capture and proposal terms of total organizational learning
team
Measurements are made and used to assess Measurements are made and used to determine Measurements are made and used to baseline
the effectiveness of the BD training that is progress of training curricula to enhance core process improvements
provided competencies of the organization
Measurements are made against plans and Measurements are made and used to evalu-ate
used to assess progress toward core sales/capture and proposal teams across the
competencies and career development organization to assure high performance
Measurements are made and used to assess
each unit’s performance status

Verification BD management periodically reviews training Senior management periodically reviews the Senior management periodically reviews the Senior management reviews organizational initiatives to
activities to determine if they are conducted in status and effectiveness of activities for organization’s effectiveness in implementing high- create, acquire and transfer new knowledge concerning
accordance with established procedures and organizational competency development performance teams for each pursuit business development on a periodic basis
quality expectations
BD management periodically and on an event- Senior management periodically reviews BD Senior management periodically reviews the
driven basis reviews the performance of effectiveness in implementing competency- appropriateness of the compensation and reward
individuals in accordance with individual based training and compensation and rewards systems in place for sales/capture and proposal
development plans teams
Senior management periodically reviews the Senior management periodically reviews the
career development and professional effectiveness of high-performance teams to
advancement initiatives, including funding for respond to current competitive and customer
increased professionalism/certification environments

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 Summary of KPA Common Features within the Process Thread of the Capability KPC
Key Practices
Business Development Business Development Innovation and
Common Sales/Capture Procedures Processes System Integration Transformation
Features Level 2 Level 3 Level 4 Level 5
Goals Gain control of BD activities based on Deploy and use a standard BD process Integrate all processes and systems relevant to Sustain a culture focused on innovation
obtaining management approval for each throughout the entire organization business development throughout the business throughout the organization, consciously
pursuit and by documenting and reviewing acquisition cycle and across all enterprise discarding what is no longer useful and
sales/capture plans operations assuring transformation to higher levels of
efficiency and effectiveness
Maintain consistency across BD work Maintain consistency in BD activities and
products by integrating methods, tools, and products through systematic assessment of
disciplines and by systematically analyzing their ability to advance customer relationships
BD performance and direct customer and the extent of their integration with other
feedback enterprise processes
Commitment to The organization follows a documented The organization follows a documented The organization follows a documented The organization follows a documented
Perform procedure for its sales/capture activities process for all BD activities across the procedure that integrates the BD process with strategy to manage innovation and
organization related processes across the enterprise transformation across the enterprise
An organizational role is assigned An organizational role is assigned
responsibility for sales/capture procedures, responsibility to manage innovation and
including decision-making and support transformation efforts enterprise wide
Ability to Perform The organization provides adequate funding The organization provides adequate The organization provides adequate resources The organization provides adequate
and resources for performing sales/capture resources and funding for performing BD and funding for operating the BD process and resources and funding to support BD
activities activities system integration across the enterprise innovations and transform the organization
as needed to meet enterprise objectives
Sales/capture leaders receive guidance in BD personnel receive guidance in all The organization assigns and empowers Individuals responsible for guiding and
methods in leading sales/capture efforts aspects of the BD process process champions across the enterprise to monitoring innovation and transformation
promote process improvement and assure efforts receive guidance to perform these
appropriate BD system integration activities
Non-BD participants in the BD process An orientation is provided to other members BD professional staff receive appropriate
receive an orientation to the objectives, of the organization in the BD process guidance both to execute BD leadership and to
principles, and methods of sales/capture interact across the enterprise as strategy and
techniques system integrators
BD support staff receive an orientation in
appropriate tools, disciplines, and processes as
well as in fundamental aspects of system
operations and enterprise-level integration

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 All participants in BD-related operations across
the enterprise receive an orientation in the key
aspects of customer relationship management,
solution strategies, and related topics relevant
to integrated system operations
Activities Sales/capture plans are prepared according Appropriate sales/capture methods and Appropriate BD methods and tools are The organization develops and maintains a
Performed to the documented procedures tools are integrated into the defined BD integrated into the defined process and flowed coherent strategy for innovation analysis
process into related enterprise processes as needed to and transformation management
assure integration
Sales/capture plans are issued and BD methodologies are developed, Specific enterprise-level methodologies are Practices, technologies and infrastructure
executed maintained, documented, and verified by developed, maintained, documented, and elements are selected and acquired for the
systematically analyzing BD performance verified by systematically analyzing customer organization according to the transformation
and direct customer feedback feedback, BD performance, and operational strategy
integration
Lessons learned are documented on the Consistency is maintained across BD work Appropriate levels of consistency are Appropriate new practices, technologies,
conduct and results of each sales/capture products including planning, marketing, maintained across the enterprise for BD infrastructure elements, and changes are
effort through forums such as post-mortems advertising, sales, and solution development products through systematic assessment of incorporated into standard and targeted
and team reviews both their ability to advance customer processes through a documented procedure
relationships and the extent of their integration
with other enterprise processes
Measurement Measurements are made and used to Measurements are made and used to Measurements are made and used to Measurements are made and used to
determine the status of sales/capture determine the functionality and quality of the determine the customer focus and related determine the status of transformation
activities BD process quality of process tools and methodologies changes
Verification Senior management reviews the Senior management reviews the Senior management periodically reviews the Senior management reviews the
sales/capture procedures on a periodic effectiveness of the BD process on a efficiency and effectiveness of BD processes organization’s activities for managed change
basis. periodic basis and the level of their integration and influence on a periodic basis
across the enterprise

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 Summary of KPA Common Features within the Infrastructure Thread of the Capability KPC
Key Practices
Innovation and
Common Work Environment Support Systems Infrastructure Management Transformation
Features Level 2 Level 3 Level 4 Level 5
Goals Provide workspaces and resources needed Define, establish, use, and maintain a Manage and adapt the BD infrastructure in Create a dynamic environment in which
for BD projects suitable infrastructure to support BD accordance with a formalized strategy at the innovations in systems, technologies, and
operations throughout the business enterprise level other infrastructure elements are
acquisition cycle and across the incorporated on an ongoing basis to
organization transform operational support and
encourage organizational flexibility and
adaptability
Define and deploy BD systems and
infrastructure across the enterprise in response
to the full range of user needs and relevance in
addressing the full spectrum of customer
relationships to be supported
Commitment to The organization follows a documented The organization follows a documented The organization follows a documented The organization follows a documented
Perform procedure concerning the BD work procedure for providing infrastructure procedure to manage, maintain, and improve strategy to manage innovation and
environment elements associated with BD operations infrastructure elements associated with BD transformation across the enterprise
operations across the enterprise
An organizational role is assigned An organizational role is assigned
responsibility to coordinate workspaces and responsibility to manage innovation and
necessary resources transformation efforts enterprise wide
Ability to Perform The organization provides adequate The organization provides adequate The organization provides adequate resources The organization provides adequate
resources and funding for an effective BD resources and funding to support specific and funding for infrastructure management resources and funding to support BD
work environment infrastructure elements associated with the activities to support continuous improvement innovations and to transform the
BD function objectives organization as needed to meet enterprise
objectives
BD personnel receive guidance in the BD personnel receive guidance in the use of BD personnel receive guidance in both Individuals responsible for guiding
effective use of workspaces and resources software and other tools identified in the BD fundamental and advanced concepts and innovation and monitoring innovation and
process applications in the deployment of software and transformation efforts receive guidance to
other tools identified in the BD process and perform these activities
needed to support system integration
An orientation is provided to those members Members of the organization who support BD
of the organization who support BD tasks strategies and tasks but are not part of the BD
but are not part of the BD staff to enable staff receive guidance, tools, and assistance to
them to effectively perform assigned tasks maximize their performance

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Activities A plan is prepared and maintained for BD Support systems for the BD function are Infrastructure elements for the BD process are The organization develops and maintains a
Performed workspaces and resource requirements planned, designed and implemented based managed, maintained, and continuously coherent strategy for innovation analysis
on defined operational requirements improved based on a defined strategy to and transformation management
efficiently and effectively support the needs of
system users
Resources needed to implement the BD Support systems and related operations are Infrastructure elements are defined and Practices, technologies and infrastructure
process are made available in a timely differentiated in accordance with the varying deployed in accordance with a thorough elements are selected and acquired for the
manner support issues associated with the phases understanding of the range of user needs to be organization according to the transformation
of the BD process supported throughout the business acquisition strategy
cycle, in response to varying levels of customer
relationships, and in recognition of the range of
user needs across the enterprise
Analysis of support system adequacy is The infrastructure is established such that it Appropriate new practices, technologies,
included in assessments of the BD process can respond to both routine and surge infrastructure elements, and changes are
and in general lessons learned requirements associated with BD operations incorporated into standard and targeted
and their integration with related enterprise processes through a documented procedure
processes
A specific plan for periodic review of the Infrastructure strategies address known
adequacy of current support systems and barriers to operational efficiency and
the infrastructure implications of emerging effectiveness and provide for adaptability to
process requirements is prepared and internal needs across the enterprise, unique
issued customer needs related to individual pursuits,
and challenges associated with specific
customer relationships
Assessment of infrastructure requirements is
an integral and routine part of BD planning and
implementation
Measurement Measurements are made and used to Measurements are made and used to Measurements are made and used to assess Measurements are made and used to
determine the status of BD work assess support system adequacy, infrastructure adequacy, responsiveness, and determine the status of transformation
environment activities. responsiveness, and ability to provide timely the ability to provide efficient, effective, and changes
support timely support as part of the organization’s
continuous improvement program
Verification Senior management reviews the BD work Senior management reviews support system Senior management reviews specific strategies Senior management reviews the
environment procedures and activities on a adequacy on a periodic basis and plans intended to assure adequacy of organization’s activities for managed change
periodic basis current and future infrastructure elements on a on a periodic basis
periodic basis

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