consulting procurement monitoring & evaluation
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PROCURING MONITORING & EVALUATING CONSULTING SERVICESPresented at the International Consulting Conference –
Seoul Korea - September 2014
INTRODUCTION
1. A lot of money is being spent on "consultants".
2. It is important to understand what a consultant is before delving into the topic of engaging, contracting, monitoring and evaluating their performance.
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'TOO MUCH SPENT ON "CONSULTANTS" '
Money is being wasted:
• Consulting projects "not implemented"
• Refer to reasons for project failure - further on
• The wrong advice is given to clients
• The consultants do not have the right competencies
• The consultants are not ethical
AND what is often not mentioned:
• The client does not have the required competencies
• The client is not ethical
© ProfWeb 2014
IS THIS YOUR VIEW OF A CONSULTANT?
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POOR DEFINITIONS
• Some of the definitions used under the banner of Consulting, are directly in conflict with the true definition of consulting.
• It is imperative that there is education in this area - by defining keywords of what "consulting" actually means.
• We would like to focus on “Management Consulting”.
© ProfWeb 2014
GOOD DEFINITIONS
• Experienced professional who provides expert knowledge for a fee. He or she works in an advisory capacity only and is usually not accountable for the outcome of a consultingexercise. Business dictionary.com.
• A consultant is an experienced individual that is trained to analyze and advise a client in order to help the client make the best possible choices. searchitchannel.techtarget.com
• A Consultant is someone brought in for a limited time to solve one or more specific problems. This can be done under a contract for a specific problem or on a longer term contract for ongoing needs related to a specific problem. www.smallbusinessnotes.com
• A person professionally engaged in advising on, and providing, a detached, external view of a company's management techniques and practices. dictionary.bnet.com
• An individual who provides independent advice and assistance about the process of management to clients with management responsibilities. www.imcsa.com
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EXAMPLE – ASIAN DEVELOPMENT BANK
1.3 For the purpose of these Guidelines, the term consultants includes a wide variety of private and public entities, including international and national consulting firms, engineering firms, construction firms, management firms, procurement agents, inspection agents, auditors, United Nations (UN) agencies and other multinational organizations, universities, research institutions, government agencies, nongovernment organizations (NGOs), and individuals.
ADB or its borrowers use these organizations as consultants to help in a wide range of activities such as policy advice, institutional reforms, management, engineering services, construction supervision, financial services, procurement services, social and environmental studies, and identification, preparation, and implementation of projects to complement borrowers’ or ADB’s capabilities in these areas.
Pretty Broad is it not?© ProfWeb 2014
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KEY CLIENT EXPECTATIONS
Sound reputation and proven track record - trustworthiness
Understanding of the client’s business, needs, opportunities, challenges and problems
Contextual competence - knowledge, skills and experience
Integrity and honesty – especially about problems
Independence and objectivity
Responsive, reliable and open communication
Skills transfer
On time/on budget delivery – meet the contract
Value add! Often misinterpreted as pure cost.
© ProfWeb 2014
CONSULTANT EXPECTATIONS
Fair Treatment/ Ethical Client
Commitment to the project
Allocation of resources as required
Integrity and honesty – especially about problems
Knowledgeable about own business
Responsive, reliable and open communication
Attendance of key staff at meetings/ punctuality for interviews
Provision of complete and timely information
Competent staff to transfer skills to
© ProfWeb 2014
ALTERNATIVE WAYS OF ENGAGING
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Client
Initiated
Consultant
Initiated
•Info Document
RFI
•Tender ResponseRFT
•Proposal
RFP
•Proposal
Tender process
Proposal process
FOR THE PURPOSE OF THIS PRESENTATION, WE WILL COVER
TENDERS
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GETTING ASSISTANCE FROM PROFESSIONALS
For complex engagements, it may be necessary to engage the assistance of independent advisors to assist
with the process.
The value of getting independent specialists to help with the process
Possibly even up to contract award.
Ensure that these advisors are contracted in terms of confidentiality and that they may not tender for the work
themselves.
© ProfWeb 2014
TYPICAL TENDER PROCESS(THIS IS CLIENT INITIATED)
Business Case / requirements
specApproval
Construct
RFTOpen or closed?
Issue
RFT
Information Session?
Receive
responses
Convene
Evaluation
committee
Evaluate
responses
Final
Recommendation/ decision
Award Tender Contract
Initiate Engagement
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1. Need or Opportunity 4. Benefits (Quantitative and Qualitative)
2. Approach 3. Final and High Level Deliverables
The Case for the Project
BUSINESS CASE
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IDENTIFICATION OF QUALIFYING RESPONDENTS
• This is applicable to proposals and closed tenders
• Comparing “apples and pears”
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RECEIVE & EVALUATE TENDERS/ RESPONSES
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SELECTION OF RESPONDENTS
• The selection process – needs to be formal and fair.
• Application of Selection Criteria is vital but not easy.
• No two consultancies are alike!
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Plan/ DesignUpdate
charter/plan Resource/ Structure
Execute Consulting
Intervention
Develop work
products
Monitor & Control
Report progress to
client
Report
ENGAGEMENT LIFECYCLE
Lessons
Learnt
Contract/ Approval
Initiate & start up
resourcing
Close Measurement & evaluation
Final Report & Recommendations
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ENGAGING & CONTRACTING
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ENGAGING AND CONTRACTING CONSIDERATIONS
Clarity of agreement
Deliverables
Outcomes versus outputs
Maximising “ROI”
Cost Saving tactics
The consultant's T+Cs
Your standard T+Cs
IP rights
Duration
Implementation responsibility –who?
Cost determination
•Charge by time or value
•Billing calculation formula
•Small firm / large firm
Knowledge Transfer
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TIME AND COST FACTORS
Unreasonable pressure to
complete on time due to
delays in issuing the tender.
Tenders often overdue before the project is to
start.
Compressing delivery times has major cost
& resource implications.
© ProfWeb 2014
INITIATING THE ENGAGEMENT
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THE PLANNING CYCLE & THE CHARTER
These steps are repeated until the project has reached its
conclusion
As things change, the charter (and plan) should be updated to
reflect current reality.
Any major changes should be the outcome of a signed change
request form.
© ProfWeb 2014
MONITORING AND CONTROLLING
http://en.wikipedia.org/wiki/File:Project_Management_%28project_control%29.png Modified by ProfWeb
Where are We? (Measurement)
Where do we plan to be?
(Evaluation)
How can we get back on
track?
(Correction)
Variance
in plan
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Report
Corrective
action
REPORTING
• Why do we report?
• What do we report on?
• Who is involved? Refer project structure and owner sponsor models. Steercom etc
• How often to we report?
• What is the level of detail we report on?
• Anthony’s triangle applies to engagements as well.
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MEASUREMENT& EVALUATION
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WHO IS ACCOUNTABLE FOR SUCCESS?
• Biggest problem - the client is accountable.
• The consultant is accountable for the quality of his work and advice.
• How does this work in reality?
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EVALUATION OFSUCCESS
Professional excellence
Business benefits
Goal achievement
Managed and fulfilled
expectations
The importance of perceptions!
Client Perspective
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BUSINESS BENEFITSNote – avoid using ROI – it tends to focus on financial issues.
Consulting projects can fall anywhere on these axes
Intangible benefits
RO
I -
Fin
anci
al
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EVALUATION OFSUCCESS
Profitability
Personal, professional
and practice development
Enhancement of
personal/firm reputation
Enhanced organisational
learning
Consultant Perspective
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WHY DO CONSULTING PROJECTS SUCCEED?
Senior client commitment & buy in –allocating resources
Clear understanding of client challenges,
needs and expectations
Clearly defined scope, terms of
reference- business case
Clearly defined and well executed roles and responsibilities
Adoption of key account
management principles and
practices
Rigorous project, quality and document
management/integration across all project phases
Balanced and focused approach to project administration and
process/deliverables management
© ProfWeb 2014
BENEFITS OF USING CERTIFIED PROFESSIONALS
• Consulting is not a regulated profession, so voluntary association is a sign that individuals value what the profession should stand for.
• Code of conduct• The right of recourse is important.• An appeals process is equally important in order to carry the
required weight.
• Independence
• Disciplinary process
• Mediation and Arbitration• Professional peer review is available for clients and members
• Evidence of prior achievement• A certified professional has had his/her credentials formally
assessed and needs to maintain a CPD record and client references.
© ProfWeb 2014
CONCLUSION
Assignment success is a shared responsibility.
Clear statement of requirements
Monitoring throughout the lifecycle
Partnership approach
Clear measurement of results against expectations and agreement
© ProfWeb 2014
Presenter: Angelo Kehayas
akehayas@profweb.net
www.profweb.net
27 11 789 9996
© ProfWeb 2014
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