The term “Black Hat” has become a well-known term in business development circles, particularly in the federal contracting world. Many capture and proposal teams regard these exercises as an important – if not crucial – tool in developing an effective capture strategy. Most of us know and agree – at least at a high level – that a Black Hat is an activity wherein participants role-play your competition with the goal of improving your own strategy and win.
Beyond that basic definition, variations abound, there are a few common mistakes to avoid. Here are three things a Black Hat is not:
First, a Black Hat is not a capture strategy session. This may seem counter-intuitive since the ultimate goal is to enhance the capture strategy. However, taking time during the Black Hat to strategize completely undermines the main focus of the exercise, which is to understand the competition – something that is woefully under-emphasized in many capture efforts. When facilitating Black Hats, I urge participants to avoid delving into too much discussion about how “we” are going to win. This is also why we caution against using members of the capture team in the Black Hat. A best practice to help avoid capture “rabbit holes” is to keep a running list of recommendations where you can quickly pin an idea, then come back to the list at the end of the day to flesh out those ideas.
Second, a Black Hat is not a box. Templates that are carefully vetted beforehand with various stakeholders can be very helpful for guiding the discussion and capturing important data and analysis during Black Hats. However, participants can sometimes slip into the mindset of just “filling the blanks.” If there is something important that needs to be discussed with regard to the competition, and there isn’t a slide or space where it seems to fit, then for goodness sake, make one! Never let a template imprison the discussion and limit the value of the activity.
Finally, a Black Hat is not a War Game (competition). Black Hats are often populated by BD folks, and we all know BD folks tend to be a rather competitive bunch. A common best practice for Black Hats is to split the group into separate teams, each focusing on one of the primary competitors – so naturally, these competitor teams (made up of BD folks) start to think their aim is to out-do the other teams. The problem with this is that it can lead to unrealistic competitor solutions. Sure, your competitor may want to cut their fee down to zero, but will their executives really approve of that? Or, they may want to take all the other competitors off the street by convincing them to sub, but how likely is that? Remember, the goal of the Black Hat is not to determine the worst-case scenario, but to determine the approaches and solutions competitors are most likely to employ.
For more information about Black Hats, or if you have any questions about our Competitive Intelligence or Price To Win services, please contact us at Info@RichterAndCompany.com.