MANAGING
CONSULTANCY SERVICES:
A Tanzanian Perspective
William Amos Pallangyo
©wpallangyo@gmail.com
ISBN:978998708 3145
First Edition
All rights reserved. No part of this publication may be reproduced, stored in
a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, scanning or otherwise, without the
prior permission in writing of copyright owner, or as expressly permitted by
the copyright law. Enquiries concerning reproduction outside the scope of the
above should be sent to the copyright owner, at the addresses below.
Contents
About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
1.
Understanding Consultancy Services . . . . . . . . . . . . . . . . . . . . . . 1
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Who is a Consultant? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Why do we Need Consultants? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
What Roles does a Consultant Play? . . . . . . . . . . . . . . . . . . . . . . . 3
Management Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Management Consulting Competences . . . . . . . . . . . . . . . . . . . . . 7
International Management Consultancy Firms . . . . . . . . . . . . . . 8
Management Consulting in Tanzania . . . . . . . . . . . . . . . . . . . . . . 9
How to Start a Consultancy Firm . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Certification of a Consultancy Firm . . . . . . . . . . . . . . . . . . . . . . . 11
The Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Marketing a Consultancy Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Consultancy as a Learning Process . . . . . . . . . . . . . . . . . . . . . . . . 13
2.
Preparation of Consultancy Tender Documents . . . . . . . . . . . . 15
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Conditions of Consultancy Tendering . . . . . . . . . . . . . . . . . . . . . 15
Submission of Consultancy Tenders . . . . . . . . . . . . . . . . . . . . . . 16
Two-envelope Tender Procedure . . . . . . . . . . . . . . . . . . . . . . . . . 16
Late Tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Acceptable Legal Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Financial Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Sub-Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Expression of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
How to Write an Expression of Interest . . . . . . . . . . . . . . . . . . . . 19
Request for Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Technical Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
How to Write a Technical Proposal . . . . . . . . . . . . . . . . . . . . . . . 20
Financial Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
How to Write a Financial Proposal . . . . . . . . . . . . . . . . . . . . . . . . 23
3.
Choosing a Competent Consultant . . . . . . . . . . . . . . . . . . . . . . . 25
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Opening of Consultancy Bids . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Consultancy Bid Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Methods for Selecting Consultants . . . . . . . . . . . . . . . . . . . . . . . 26
Quality Based Selection (QBS) . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Quality and Cost Based Selection (QCBS) . . . . . . . . . . . . . . . . . 27
Least Cost Selection (LCS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Fixed Budget Selection (FBS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Qualification Based Consultant Selection (CQBS) . . . . . . . . . . 28
Single-Source Selection (SSS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Consultancy Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
4.
Execution of Consultancy Contracts . . . . . . . . . . . . . . . . . . . . . . 31
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Consultancy Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Getting Started with a Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
5.
Executing a Consultancy Contract . . . . . . . . . . . . . . . . . . . . . . . . 33
The value of Consultancy Services . . . . . . . . . . . . . . . . . . . . . . . . 34
Consulting Success Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
5
Consulting Maxims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
The Consulting Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Transmittal Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Consultancy Project Management . . . . . . . . . . . . . . . . . . . . . . . . 39
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Managing Client-consultant Relationship . . . . . . . . . . . . . . . . . . 40
Data Gathering Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Participants’ Consent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Ensuring Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Analyzing and Framing Problems . . . . . . . . . . . . . . . . . . . . . . . . 42
Looking for Patterns or Alternative . . . . . . . . . . . . . . . . . . . . . . . 43
Remembering Strengths of Clients . . . . . . . . . . . . . . . . . . . . . . . . 44
Pushing the Engagement Forward . . . . . . . . . . . . . . . . . . . . . . . . 45
Workshop Presentations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
6.
Consultancy and Change Management . . . . . . . . . . . . . . . . . . . . 47
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Why Change in an Organisation? . . . . . . . . . . . . . . . . . . . . . . . . . 47
External and Internal Forces of Change . . . . . . . . . . . . . . . . . . . 48
Why Consultants Deal with Change Management . . . . . . . . . . 48
Development of the Capability for Change . . . . . . . . . . . . . . . . . 48
Approaches to Organisational Change . . . . . . . . . . . . . . . . . . . . 49
Sustaining Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
The Roles of Consultants in Change Management . . . . . . . . . . .50
Why Use a Consultant in Organizational Change? . . . . . . . . . . 50
External Change Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Internal Change Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
7.
Consultancy Project Closing and Evaluation . . . . . . . . . . . . . . . 53
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Consultancy Project Reconciliation . . . . . . . . . . . . . . . . . . . . . . 53
Risk management in Consultancy Assignments . . . . . . . . . . . . 53
Project Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Project Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
8.
When Things Go Wrong in a Consultancy . . . . . . . . . . . . . . . . . 57
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Protective Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Possible Problems in a Consultancy . . . . . . . . . . . . . . . . . . . . . . . 60
Factors Contributing to Consulting Success . . . . . . . . . . . . . . . . 62
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Appendix 1: Expression of Interest Standard Forms . . . . . . . . 67
Appendix 2: 5A Technical Proposal - Standard Forms . . . . 69
Appendix 2: 5A9 Proposal Securing Declaration Form . . . . . 80
About the Author
William Amos Pallangyo studied for an Advanced Diploma in
Public Administration at the Institute of Development Management
(IDM-Mzumbe). He also holds a Masters degree in Governance and
Development from the University of Antwerp (Belgium) and a PhD in
Policy, Development and Management from the University of Manchester
(United Kingdom). He has over fifteen years’ work experience as a
Human Resources Officer, Academician and Consultant at the Open
University of Tanzania. Between 2010 and 2014 he was tasked to establish
and manage the Open University Consultancy Bureau (OCB). This
task exposed him to various consultancy activities including proposal
writing, negotiations, contract management, project management and
report writing skills. He has published several articles on consultancy
and taught practitioners and masters students in managing consulting
skills. He has handled consultancies for central and local government
as well as for local and international non-government organizations.
Furthermore he has executed evaluations, impact assessments, reviews
and institutional assessments for local and international projects.
Foreword
Managing Consultancy Services can be both exciting and challenging.
Working as a consultant you will discover that every time you achieve
a goal there is another one before you. While styles of provision of
technical advice vary across the disciplines, the fundamental principles
apply throughout consulting services. All consultancy work uses
almost the same approach. This guide is focused more on Management
Consultancy and it provides specific examples from Tanzania. The
book is a practical guide about consulting and it has been written for
anyone who wishes to begin consulting or for those who wish to refresh
themselves in their existing activities. The purpose of the guide is to show
you how to work as an expert in consultancy. My goal in creating this
guide is to provide a resource for individuals who seek to improve their
effectiveness as consultants. I hope it will be useful to new consultants, as
well as for those who have enjoyed successes but are looking to become
more skilful in a wider range of consultancy assignments.
The book is devoted to providing a basis for understanding how to
manage consultancy services. It proposes how consultancy assignments
can be won and carried out. It suggests how to establish and manage
consultancy firms and how to handle consulting challenges. I have
also included suggestions for further reading, consultancy resources
and examples of templates that other consultants have found useful for
cultivating positive consultancy management.
I appreciate your interest in this guide, your commitment to the
profession and your engagement in the rewarding work of consulting.
W.A. Pallangyo
February, 2017
Preface
This is truly an important piece of work by the author which readers
should not miss. I would like to unreservedly commend the author for
his commitment, insights and expertise which I hope will truly enrich
readers of this book. Consultancy knowledge and experience embodied
in this book is of immense importance to readers, as it serves like a tool
not only for learning but also for present practitioners in the field of
consultancy.
Surely this current edition is a result of thorough revision of
consultancy management in the Tanzanian perspective. Its impetus is
to enrich readers with consultancy skills and useful templates needed
in the preparation of expression of interest, technical and financial
proposals as well as managing consultancy projects.
Without hesitation I am sure that readers will not regret having a
copy of this book.
Hon. Justice Paul F. Kihwelo (PhD)
1
Understanding Consultancy Services
Introduction
Consultancy is the practice of helping organizations to improve their
performance through analysis of existing problems and development
of plans for improvement. Consultancy service is provided to public
and other business undertakings by independent and qualified persons.
Consultants identify and investigate problems brought about by
organizational policies, and operational procedures and methods. As
a result of their analyses, consultants recommend appropriate actions
and even help to implement recommended measures for improved
performance of organizations.
Who is a Consultant?
There are different definitions of the term consultant. The term is used
and is applicable to many disciplines. Idealistically, a consultant is an
expert called to provide high-level advice on glamorous and rewarding
assignments. In the public service, a consultant is sometimes portrayed
as a grossly overpaid person, willing to take on any job, even at short
notice, and happy to work through the night or weekend to complete
the task. Invariably consultants work late with reports, and at times,
they require a lot of teaching to be able to do consultancy work. They are
seldom capable of producing the quality of work that could have been
achieved in-house by a public servant (Dobes, 2006). The reality is often
different. Whilst consultancy work can be intellectually and financially
2
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
rewarding, it requires real effort to secure assignments, time to carry out
the work, a willingness to accept a degree of risk and, very often, unique
and ready access to state-of-the-art resources.
There is also a hot debate about why organizations should use
consultants instead of their employees who are equally competent to
undertake the work. The main difference between a consultant and
employees in an organization is that the salaried employee is focused on
getting a certain number of things done every day and putting out fires
that erupt during the day. A consultant is focused on solving expensive
problems that get in the way of his clients’ forward motion. A successful
consultant requires careful research, thoughtful planning, and honest
self-assessment of their ability to solve organizational problems.
Consultants are people with skills or expertise who provide advice to
assist managers to make decisions.
Consultants can also be understood as a company, partnership or
individual person registered by the relevant professional regulatory
body and engaged in the business of providing technical services in a
particular profession. Such professions include architecture, economics,
engineering, surveying, accountancy, auditing, taxation law and
management.
Consultancy may include giving technical assistance according to the
work context and or a potential party to a contract with a client. The term
‘technical assistance’ implies supporting a client in solving the needs of
and enabling organizations to perform more effectively and efficiently.
The provision of technical assistance in terms of management consulting
may include; identification of programs and projects, design of programs
and projects, and the drawing up of terms of reference and evaluation
and selection of tenders. It can also include technical and financial
implementation of projects and programs, management and running
of project management units, management of framework contracts, and
intermediate to final evaluation and monitoring. Provision of technical
assistance requires capacity and comprehensive experience in training
and in knowledge transference within a field. Training in consultancy
skills constitutes a clear added value to consultants.
Why do we Need Consultants?
There is enormous debate about whether organizations need consultants
or not. There are scholars who challenge hiring consultants. For instance,
Townsend (1970) in his book, “Up the Organisation”, says, “Consultants
are people who borrow your watch to tell you what time it is and then
UNDERSTANDING CONSULTANCY SERVICES
3
walk off with it”. It also can be argued that many of the skills provided by
consultants are normally available internally in large companies. This is
because major companies often encounter the same types of problems
over time.
Another group of scholars argue that consultants add value, by
reducing the problem of resolution cycle time (Hagedorn, 1982).
Several studies, including those of McKinsey and BCG’s support these
scholars empirically. However, they provide an interesting glimpse into
the industry from the consultants’ point of view. Bower’s (1982) points
out that time, professionalism and independence can certainly vary
from one situation to another. Consultants could have a superior ability
to initiate action, but unless they use proprietary techniques the entire
consulting industry could be brought into disrepute. Nonetheless, one
cannot dispute that there are opportunities for consultants to bring in
perspectives from other industries (Canback, 1999).
Bower (1982) suggested six reasons why hiring an external
management consultant makes sense in many situations:
(i) They provide competence not available elsewhere;
(ii) They have varied experience not available with the client;
(iii) They have adequate time to study the given problem;
(iv) They are professionals;
(v) They are independent and objective; and
(vi) They have the ability to initiate action based on their
recommendations (Bower, 1982).
By using consultants there is a greater possibility for clear exposition
of an organization’s problems. Both private and public sector users, not
consultants, stress that clarity of purpose is the key factor in successful
consultancy services. Other benefits of consultancy services include
relevance, scope and quality of outputs, the timeframe for completion,
benefits gained and skills transfer to the client organizations.
What Roles does a Consultant Play?
Lippitt and Lippitt (1994) developed a model that identifies eight roles
that may be considered as typical consulting characteristics:
a) Objective observer
This role comprises several activities intended to stimulate the
client toward insights into growth, more effective methods, longrange change, and greater independence. A consultant does not
express personal beliefs or ideas and does not assume responsibility
4
b)
c)
d)
e)
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
for work or the results thereof. Instead, a consultant observes the
client’s behaviour and provides befitting feedback. The client alone
is responsible for the direction that is ultimately chosen by the
organization. One important function of the objective observer
is to ask questions that help the client to clarify and confront a
problem and to make appropriate decisions.
Process counsellor
This role involves the observing of the client’s problem-solving
processes and offering suggestions for improvement. The
consultant and the client jointly diagnose the client’s process,
and the consultant assists the client in acquiring whatever skills
are necessary to continue diagnosing identified problems. The
consultant observes people in action, interviews management
personnel to obtain facts, and reports the data to the client in order
to improve organizational relationships and processes.
Fact finder
In this role the consultant serves as a researcher; collecting and
interpreting data in areas of importance to the client. This function
includes developing criteria and guidelines for collecting, analyzing,
and synthesizing data. The process of collecting data can be
accomplished through any of five methods namely, (1) interviewing,
(2) administering questionnaires, (3) observing, (4) studying and
analyzing records and documents, and (5) administering and
analyzing appropriate tests or survey instruments. Fact finding
enables consultants to develop understanding of the client’s
processes and performance. As a result of the insights gained, the
consultant and the client can evaluate the effectiveness of a change
process in order to solve the client’s problem.
Identifier of alternatives and linker to resources
A consultant identifies alternative solutions to a problem. He
establishes criteria for evaluating each alternative solution,
determines the likely consequences of each alternative, and
then links-up the client with resources that may help in solving
the problem. However, a consultant does not normally assist in
selecting the final solution to a problem facing an organization.
Joint problem solver
A consultant works actively with the client to identify and solve
a problem at hand. They often take a major role in defining the
results. This involves stimulating interpretations of the problem,
UNDERSTANDING CONSULTANCY SERVICES
f)
g)
h)
5
helping to maintain objectivity, isolating the causes of the problem,
generating alternative solutions, evaluating alternatives, choosing
an appropriate solution, and developing a befitting action plan.
Trainer/Educator
A consultant provides instruction, information, or other directed
learning opportunities for the client. The ability to train and educate
is necessary and helpful in many problem situations, particularly
when a specific learning process is essential for a client to develop
competence in certain areas. As a trainer/educator, a consultant
must be able to assess and identify training needs, write learning
objectives, design learning experiences and educational events,
and employ a range of training delivery techniques and function as
a group facilitator in training.
Information specialist
A consultant serves as a content expert for the client, often
defining “right” and “wrong” approaches to a problem. This kind
of client is primarily responsible for defining the problem and the
objectives of the consultancy. The consultant plays a directive role
until the client is comfortable with the approach that has been
recommended. The danger here is take the client can become
increasingly and inappropriately dependent on the consultant for
all operation in the organization.
Advocate
A consultant may consciously strive to have the client move in a
direction desired by the consultant. Such a consultant may use
power and influence to impose his on her ideas and values about
either organizational content or process issues. As a content
advocate, a consultant always tries to influence the client’s choice
of goals and means of achieving these goals. As a process advocate,
such a consultant always tries to influence the methodology
underlying the client’s problem-solving behaviour.
Lippitt and Lippitt (1994) make it clear that each of the main roles
of consultant is appropriate if it is negotiated and agreed to by
the client. These authors also point out that each of the roles of
consultants can be appropriate if needed in the current and ensuing
situation that a consultant and the client share and agree upon.
6
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Management Consulting
Management consulting can be defined as “those consultancies which
provide general management advice within strategic, organizational, or
operational context, and which are institutionally organized in firms”
(Canback, 1998). However, this is not sufficient in capturing all the
key points about management consultancy. A more comprehensive
definition of Management consulting is an advisory service contracted
for and provided to organizations by specially trained and qualified
persons who assist, in an objective and independent manner, the client
organization to identify management problems, analyze such problems,
and help, when requested, in the implementation of recommended
solutions (Greiner and Metzger, 1983).
Alternatively, Nees and Grenier (1985) propose five categories of
consultants. The first is the mental adventurer who analyzes truly
intransigent problems such as long-term scenarios for a country’s
development. This involves applying rigorous economic methods and
leveraging the consultant’s experience base. The second is the strategic
navigator who bases his or her contribution in a rich quantitative
understanding of the market and competitive dynamics, and then
recommends courses of action without too much regard for the client’s
perspective.
The third category is the management physician who derives his or her
recommendations from a deep understanding of the internal dynamics
of the client organization, often willing to sacrifice some objectivity
to gain a realistic perspective on what is achievable. The fourth is the
system architect who impacts his or her clients by helping to redesign
processes, routines, and systems – always in close cooperation with the
client. The fifth is the friendly co-pilot who counsels senior managers
as a facilitator rather than as an expert, and has no ambition to provide
new knowledge to the client (Nees and Grenier, 1985).
Management consulting can also be divided into three broad
categories of consulting: namely; strategy consulting, organization
consulting and change consulting (Nadler & Slywotzky 2005). Although
the three streams set out originally as distinctly separate practices, they
have since become seamlessly intertwined as modern day consultancy
practices in various combinations of those streams. The first stream,
modern strategy consulting, has emerged in economics. For a greater
part it was regarded as a top-down approach that involves senior
executives putting their stamp on the strategy and announcing it to the
organization as adopted.
UNDERSTANDING CONSULTANCY SERVICES
7
The second stream of organization consulting has its roots in
psychology. It typically starts with small group dynamics and then
looks upward at the organization. Although these two streams have
traditionally been pronounced separate, they have become increasingly
integrated into each other in modern management consultancies’
offerings and practical work (Nadler & Slywotzky 2005).The third
stream, change consulting, has its origins linked closely to organizational
consulting. Because organizational consulting traditionally involved a
broad range of changes, its implementation requires special attention
to human change dynamics. Strategy consulting does not move toward
change management issues until much later, since early strategy
projects focused mainly on small groups of senior executives (Nadler &
Slywotzky 2005). Nonetheless, present-day management consultancies
are increasingly involved in implementation of change management
(Poulfelt et al. 2005).
Management Consulting Competences
Management knowledge is the central “issue” around which every
consulting field normally revolves (Engwall and Kipping, 2002). “The
creation, dissemination, and application of new management concepts
often connect members into a collective endeavor that them to “interact
more frequently and at times fatefully” (Scott 1994: 208)
Hoekstra and Van Sluijs (2003) define competence as something
that someone is good at. Although this definition appears simple,
there is a lot of discussion and confusion about the concept in terms
of management consultancy. Does competence refer to skill, expertise,
attitude, capabilities or knowledge? Competences have to do with generic
characteristics of a person, with skills and attitude. The competencies
typically required of a management consultant can be grouped into four
broad categories as shown in Figure 1.
Figure 1: Management Consulting Competencies
MANAGERIAL
COMPETENCE
Planning
Organising
Leading
Controlling
Directing
ENTREPRENEURIAL
COMPETENCE
Commercial Awareness
Action Orientation
Strategic
PROFESSIONAL
COMPETENCE
Specialist Knowledge
Problem Solving & Analysis
Oral Communication
Written Communication
BEHAVIOURAL
COMPETENCE
Interpersonal Sensitivity
Resilience
Personal Motivation
8
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Most interventions require competencies that are specific for a particular
intervention. These competencies are related to clusters of competencies
and interventions and thus to profiles of consultants.
Table 1: Overview of Basic Competencies, Approach-specific and
Intervention-specific Competencies
Approach-specific Competencies
Intervention-specific Competencies
• Expert approach:
• Strategy and processes between
people:
Entrepreneurship, market
oriented, boldness, independence,
result orientation, quality
orientation, leadership,
consultation and risk awareness
• Process approach:
Restraint, organizing ability,
making coalitions, energy,
awareness of organizational
context, coaching, personal appeal
and decisiveness
Awareness of organizational
context
• Structure, processes and HRM:
Planning, organizing ability, end
result oriented
• Governance and control:
Boldness, planning, result
oriented, attention to details and
problem solving
• Training, development and
continuous learning and changing:
Coaching and Inspiring
Basic Competencies
• Showing resilience: Flexibility
• Analyzing: Analytical skills, Conceptual thinking, Learning orientation,
Creativity
• Considering: Balanced judgment, Awareness of external environment,
Generating vision
• Facilitating: Listening, Sensitivity
• Influencing: Communication, Presentation, Persuasion
• Inspiring confidence: Integrity, Reliability, Loyalty, Creating a favourable
atmosphere
Source: Caluwé and Reitsma (2010)
International Management Consultancy Firms
Literature indicates that there are many international consultancy
firms worldwide. An example is PricewaterhouseCoopers (PwC), which
is a huge international firm that offers consultancy services in tax and
auditing. Its consultancy work focuses on performance improvement
UNDERSTANDING CONSULTANCY SERVICES
9
and crisis management, mainly in the financial sector. Deloitte is also one
of the largest professional services firms, providing consulting services
in more than 100 countries. It offers auditing and tax services as well as
digital enterprising, business transformation, customer transformation,
Strategy and Operations and human capital.
KPMG offers financial and professional services in more than 145
countries worldwide. Their consulting services include operational
transformation, financial management, people and change management,
IT advisory services, and financial & business modelling. By revenue,
Accenture is said to be the largest consulting firm in the world. It
focuses mainly on management consulting and offers expertise with
Strategy, Finance Management, Customer Relationship Management
and Workforce Performance, among others. McKinsey & Co is one
of the world’s top management consulting firms. It was established in
the United State of America in the 1930s for innovative management
solutions.
Management Consulting in Tanzania
Management Consulting became more influential in the global economy
after 1960. However, in Tanzania, the Management consulting industry
is relatively young compared to other countries. There are several types
of consultancy firms operating in Tanzania in the areas of human
resource, technology, public relations, marketing, legal, financial and
investment. These firms range from private establishments and research
institutions including both private and public universities.
Many universities and higher learning institutions have established
consultancy bureaus to provide proficient and scientific services to
civic and private institutions. For instance at the University of Dar es
Salaam there is the University Consultancy Bureau (UCB), Bureau for
Industrial Cooperation (BICO) and The Management Development
and Consultancy Bureau (MDCB). The Open University of Tanzania
has the Open University Consultancy Bureau (OCB). There is also a
Bureau for Agricultural Consultancy and Advisory Services (BACAS)
for the Sokoine University of Agriculture. These are just a few examples.
How to Start a Consultancy Firm
One of the issues that puzzle most new consultants is how to start a
consultancy firm. Establishing a consultancy firm is similar to the
process for establishing other companies. However, a consultant can start
by considering the preferable legal structure of the expected consulting
10
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
firm. The type of consultancy firm may be structured based on how best
it suits target customer needs. Normally there are four types of business
structures, namely; sole proprietorship, partnership, corporation or cooperative.
Sole proprietorship is the type of business organization with defined
sole ownership. The owner of a proprietorship is fully responsible for
all profits, debts and obligations related to the defined business. The
advantages of opting for sole proprietorship are having direct control
of decision making and administration, minimal working capital for
start-up, a lower tax bracket and all profits going directly to the owner.
Consultants wishing to opt for sole proprietorship should consider
limitations such as business debts, placing the owner in a higher tax
bracket, lack of continuity for business in the owner’s absence, and that
for such a business it can be difficult to raise capital.
Partnership is a non-incorporated business that is created between
two or more people. In a partnership, financial resources are combined
with those of the agreeing business partner(s), and put into the
business. The partners share the profits of the business according to
a drawn legal agreement. In a general partnership, each partner is
jointly liable for the debts of the partnership. In a limited partnership,
a person can contribute to the business without being involved in its
operations. A limited liability partnership is usually available to a
group of professionals, such as lawyers, accountants or doctors. When
establishing a partnership, you should have a partnership agreement
in place. This is important because it establishes the terms of the
partnership and can help you avoid disputes later on. Hiring a lawyer
or other legal professional to help you draw up a partnership agreement
will save you time and protect your interests.
Corporation is another type of business structure. It is considered to be
a legal entity that is separate from its shareholders. As a shareholder of a
corporation, you will not be personally liable for the debts, obligations or
acts of the corporation. Other advantages of corporation include; limited
liability, transferability of ownership, continuous existence, separate legal
entity, and such a business can easily raise capital. However, limitations
include a corporation requirement for close regulations, more expenses
in its setting up and the requirement of extensive corporate records,
including documentation filed annually with the government. Other
challenges of a consultancy firm established as a corporation structure
may include possible conflict between shareholders and directors.
UNDERSTANDING CONSULTANCY SERVICES
11
Certification of a Consultancy Firm
Tanzanian laws require all consultancy firms to register with the
registrar of Companies. However, registration and its conditions depend
upon the consultant’s profession. Some professions may need special
certification or a special license before they can begin its operation as a
consultancy. To register a company in the United Republic of Tanzania is
a right for all those who wish to associate. The details of how to register
a company in Tanzania are provided by the Business Registration and
Licencing Agency (BRELA). BRELA is mandated to register companies,
business names and intellectual property rights such as patents of
inventions, industrial designs, trade and service marks and they issue
industrial licenses.
The Workplace
New consultants might be thinking of a magnificent office as their
workplace. The starting office for a consultancy can be very modest. The
most important piece of furniture in most offices is the work station.
Depending on the type of work a consultant does, a traditional desk
may be best. However, you may find that a large table provides you
with the extra space for supplies. Consider whether you need storage
attached to your workspace. For example you might need space for
reference books or tools you use often. The consultant can plan to buy
a workstation with a hutch, drawers or other type of built-in storage
facilities. To start with, you may need an uncomplicated bookcase to
store reference books, documents, and a printer. Storage needs and the
quantity of resources necessary will resolve whether a bookshelf or a
separate modular storage facility will be appropriate for you.
A comfortable seat, with satisfactory support is crucial. The features
to consider include adjustable seating height, spinal support and
the proper seat width and depth. For meetings in the office space, a
consultant can consider having additional seating and work space for
guests.
A computer with internet connectivity, as well as a telephone, chairs,
stationery, furniture and human resources should be included in the
firm’s business plan. In order to keep the consultancy afloat and profitable
it is advisable to market and make known the expertise available and
learn how to manage finances. Consultants should prepare a backup
plan should certain things go wrong in conjunction with the planned
budget within which they are aiming to operate.
12
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Usually a consultancy firm needs a power of attorney to facilitate its
daily activities. A power of attorney is a written, notarized document in
which a firm gives power to one of its officials to conduct certain acts.
Obviously, the person selected to receive the power of attorney must be
a manager or a partner who can be trusted and knowledgeable about
finances and consultancy duties. Box 1 shows a sample of a power of
attorney which was given to the author on behalf of the Open University
of Tanzania Consultancy Bureau.
Box 1: a Sample of Power Of Attorney
KNOW ALL MEN WHOM IT MAY CONCERN
That OPEN UNIVERSITY CONSULTANCY BUREAU, a company incorporated
under the Companies Act (Cap. 212) situated at...................., P.O BOX ..............
...................., DAR ES SALAAM, TANZANIA, by virtue of authority conferred to
Dr, William Pallangyo (as a ............................... for the Company) by the BOARD
OF DIRECTORS of the company with effect from ....................................... 2011,
do hereby CONSTITUTE, ORDAIN, NOMINATE, APPOINT, AUTHORIZE
and EMPOWER Dr, William Pallangyo, the ....................................... of OPEN
UNIVERSITY CONSULTANCY BUREAU, to be the true and lawful representative
of OPEN UNIVERSITY CONSULTANCY BUREAU, with full powers and authority
in the company’s name and capacity to sign, negotiate, execute contract agreement
and/or other forms of instruments in relation to Tender for ......................................
.......................................................
IN WITNESS WHEREOF I .................................................
for and on behalf of OPEN UNIVERSITY CONSULTANCY BUREAU, have hereunto
set my hand and signature this 3rd day of December, 2012 at Dar-es-Salaam.
This power of Attorney was this 3rd day of ............................ 2012 produced and
signed before me by ................................... who has subscribed his name and
signature in my presence.
Name: .........................................................
Postal Address: ..........................................
Signature: ...................................................
Qualification: .............................................
Drawn By:
ESCO Law Chambers Advocates,
3RD Floor,
ATCL House,
28 Ohio Street,
P.O Box 75567,
Dar es Salaam
UNDERSTANDING CONSULTANCY SERVICES
13
Marketing a Consultancy Firm
There are several methods of marketing a consultancy firm. A
consultant can start by scanning consultancy opportunities advertised
in newspapers and government publications. The consultants should
register with business directories and government resource lists. In
the case of Tanzania most consultancy opportunities are listed in the
Public Procurement Regulatory Authority (PPRA). The consultants can
also contact agencies, contract officers, human resources personnel and
large consulting firms which are known to receive a significant number
of consulting contracts. Consultants can network with colleagues and
develop a wide range of contacts that are willing to refer clients to you.
As individuals, consultants can join professional and trade associations
where they can meet others in particular areas of expertise and exchange
information about their consultancy businesses. Consultants can as well
develop their firm web sites and send specialized mailings to executives
that have recently moved into new positions, either within their present
organizations or in new companies. Alternatively, consultants can write
and send news releases or articles of interest to prospective clients and
newspapers, develop skills of public speaking and make use of referrals
amongst themselves.
Consultancy as a Learning Process
For a well-established firm, marketing, administration and finance form
one side of management consulting. The other side of is knowledge that
consultancy is a learning process. Consultants must keep themselves
updated by subscribing to newspapers, magazines, newsletters,
and periodicals including professional and procurement journals.
Consultants can broaden their skills and knowledge through access to
the internet, bulletin boards and databases. Alternatively, they can join
associations, seek leadership positions and offer to make presentations,
attend conferences, tradeshows, seminars and courses. Consultants can
also learn through participation in or undertaking market research and
analysis and through watching business television channels.
2
Preparation of Consultancy Tender
Documents
Introduction
This chapter revisits set conditions for tendering to undertake jobs.
It describes the tender submission process and important documents
needed for a consultant to win assignments. Some of these documents
are provided by Government, World Bank and other international
and local organizations as templates. However, it is valuable to enrich
consultants’ knowledge and skills on how to prepare competitive
consultancy documents. This chapter presents the conditions of
tendering, preparation of pre-qualifications and Expressions of Interest.
It will further elaborate how to prepare technical and financial proposals
for successful consultancy tenders.
Conditions of Consultancy Tendering
Tender processes always differ between organizations. In the Tanzanian
public service there are specific conditions for tendering as governed
by the public Procurement Regulatory Agency (PPRA). Most of the
templates provided by PPRA are appended at the end of this book. The
forms and conditions of tendering provide information to tenderers
and set out the obligations which must be met for tender acceptability.
Usually clients provide special conditions applicable to required
services. Before submission of tenders documents consultants carefully
read and observe the conditions for submission of tenders.
16
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Submission of Consultancy Tenders
It is essential for consultants to adhere to the notes given for tender
submission. Clients provide submission tender forms, tender schedules
and other essential documents. Normally these documents provide
information on the place for tender submission, and the date and time. The
request for proposal specifies submission procedures that may include
e-tendering, physical tender box or facsimile methods. With changing
technologies most clients are opting for the e-tendering method. This is
an electronic tendering system with the capacity to allow the viewing of
documents, downloading or ordering of Requests for Proposal (RFP)
and submission of tenders. Tenders submitted electronically must be in a
file format that can be read, formatted, displayed and printed by current
version computer software. Consultants are encouraged to obtain RFP
and submit tenders through the e-Tendering website.
Alternatively the Tender document may be submitted through the
tender box at the provided physical address. Through this method, the
tender is sealed in an envelope addressed to the Secretary of the Tender
Opening Committee and marked with “Tender for (the consultancy
title is mentioned) and the closing date and time.
Tenders can be submitted by using a fax number addressed as usual to
the Secretary of the Tender Opening Committee and marked on the first
page of the fax with “Tender for »”, and the closing date and time. The
procedure requires a separate submission of the set of tender Schedules
and other documents containing non-price elements, and the set of
Tender Forms, other Tender Schedules and other documents containing
price elements. Each set must have a cover sheet addressed and marked
as above with the appropriate additional identifiers. Tenders sent by fax
and not completely received at the specified fax number by the close
of tenders, may be excluded from consideration for acceptance even if
transmission or receipt is delayed due to the receiving fax machine being
engaged, faulty or otherwise inoperative. fax submission is therefore not
preferable.
Two-envelope Tender Procedure
Through this procedure the proposals must be submitted in two separate
envelopes. The first envelope is for the technical proposal and shall
include documents containing non-budgetary information. The second
envelope is for the financial proposal containing price information. Each
envelope must have a cover sheet with the appropriate identification
PREPARATION OF CONSULTANCY TENDER DOCUMENTS
17
of the documents enclosed. The technical proposal must be marked
“Technical Proposal” and the other shall include the consultancy budget
and marked “Financial Proposal”.
The original copy of the consultancy tender document shall be signed
by a person duly authorized to bind the tenderer. If the consultancy
is a joint venture, the proposal must be signed by all members of the
joint venture. The outer envelope shall be addressed to the Client at
the address and to the person as specified in the request for proposal
and shall bear the following identification: “Consultancy for (name
of consultancy project with reference number as stated in the tender
document) - DO NOT OPEN”.
Late Tenders
Consultants should always remember to submit their consultancy bid in
time. Both private and government Code of Practice for Procurement
does not provide for late tenders, and the integrity and competitiveness
of the tendering process must not be compromised.
Acceptable Legal Entities
Consultants may be required to provide evidence of their legal entity,
by submitting a copy of relevant official documents. Such documents
may include the company registration and names of office bearers. The
clients can also ask consultants to submit a statement confirming their
legal entity signed by a practicing solicitor. Consultants should ensure
that all important legal documents are readily available in their firms.
Financial Capacity
Consultants must have sufficient financial capacity to perform the
services required under a consultancy agreement. As part of standard
requirements consultants must provide annual audited financial
statements. Other financial obligations can include payment of rentals
and interest, salaries, wages as well as payment of sub-consultants.
Sub-consultants
Sometimes consultants are compelled to hire sub-consultants. In that
case the consultant is expected to notify the client about any change in
the information submitted, including changes in the composition of the
consultants. In regard to the legal status and place of an establishment,
consultants should communicate potential conflicts of interest, financial
situations, and technical capacity to undertake a job. Any change in the
18
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
composition of the consultancy team will be at the discretion of the
lead client - including the decision to disqualify the consultant from
participating in the tender and award of contract.
Expression of Interest
An Expression of interest (EOI) is the same as a Registration of Interest
(ROI). In order to avoid confusion this section will only use EOI. The
EOI allows clients to identify and shortlist potential consultants. The
EOI seeks basic information from interested consultants to allow an
initial evaluation of their suitability. Clients use EOI as the first step in a
multi-step tender process. Shortlisted consultants are invited to submit
full proposals. There is no pricing information sought at this stage.
When preparing an EOI it is necessary to take several issues into
account, such as the formats and cover letters, presentation of consortium,
personnel or staff data, areas of specialization and references of similar
projects with as much detail as possible. Overall, consultants are advised
to be pragmatic when drafting EOIs. The The main objective of an EOI
is not to describe how to successfully carry out the assignment The EOI
addresses the requirements as per the Request for Proposal package in
an advertisement.
The submission requirements criteria for an EOI include previous
consultancy references. Its evaluation considers the budgets, duration,
services, activities and experiences in similar projects, countries or
regions. Assessment is carried out based on the key experts’ curriculum
vitae to identify relevant previous professional experiences, language
requirements and number of key experts available for the particular
assignment. When preparing AN EOI consultants should pay attention
to detail to ensure the expression of interest is responsive and realistic.
Where a consultant’s capacity does not match the submission
criteria, two alternatives can be considered. The first option is to form
a consortium that involves sub-contracting other consultants. Usually
consortia provide opportunities, identifying potential local, regional or
international partner firms to complement the bidding consultant firm’s
strengths. Consideration for engaging as a consortium should take on
board specific knowledge, project references and key experts from the
other consultant’s firm. The second option is to engage external experts
to satisfy the requirements related to key personnel in the consultancy
firm. The firm can decide to temporarily employ an expert with
required strengths.
PREPARATION OF CONSULTANCY TENDER DOCUMENTS
19
The key to success in the preparation of an EOI is considering an
application from the perspective of evaluation committee. The EOI
document should easily indicate the firm’s strengths and compliance
with evaluation criteria. Consultants should strive to submit documents
that are tailored to required standard templates. For instance, public
procurement in Tanzania can use EoI as shown in Appendix 1. The EOI
document should be tailored to all the key evaluation criteria. It has to be
concise with clear structure and headlines, easy to assess characterised
by, short sentences and tables instead of running texts.
For internet submission the documents should be accessible and
easy to download. Conversion of multiple word documents to one
pdf-file is recommended as they maintain the original pages when
downloaded by the client. Consultants should remember not to submit
budgets when selection is based on quality alone, and not add a financial
offer to EOI unless otherwise requested. It is also important to submit
the EOI in time and to check the eligibility clause to check whether your
firm is eligible.
How to Write an Expression of Interest
Before starting to write an EOI consultants should take a few moments
to write down their consultancy experiences relevant to the announced
tendered assignment. Consultants should sort through their the
previous consultancy assignments and identify those which make their
experiences attractive. Consultants should not waste time with skills,
experiences and publications that aren’t relevant to the particular
bid. My experience in consultancy evaluation have proved that most
consultants submit unnecessarily bulky documents with irrelevant,
long curriculum vitae. As discussed further, under consultancy bids
evaluation, there are specific scores and evaluators, with evaluators less
interested in unnecessary details.
The successful EOI documents can expect finding and reviewing
the consultancy advertisement. Consultants must obtain a copy of the
EOI and carefully study its requirements. The second step is to make a
decision as to whether or not the consultant qualifies for the project. Some
advertisements technically exclude some consultants by demanding
specific qualifications or conditions. Step three is to understand the
contract and its conditions. The consultants should read the tender
document carefully and familiarize themselves with set conditions of
tendering, selection criteria, specifications and conditions of contract.
Attention should be given to clauses that deal with project delivery and
20
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
price variations, before deciding on suitability. If consultants are unsure
about the proposed contract they can discuss the matter with nominated
contact officer.
Step four is to complete the EOI template document. This depends
on the respective consultancy assignment but currently there are
many ready-made EOI templates. Appendix 1 describes the current
EOI template provided for bids in the Tanzanian public private sector.
Consultants can tailor the template to suit the respective submissions. It
is essential to ensure that all necessary fields in the document are filled
out. Consultants should strive to fulfil each of the criteria and submit
the required number of copies.
The last step is to lodge the expression of interest documents. Here
the consultant places the documents in the tender box no later than
the specified closing date and time. However there are cases where the
client instructs the submission to be done electronically. Consultants
should carefully read about conditions and procedure for submission
of the tender. Failure to adhere to submission procedures can lead to
disqualification of consultancy bids. Usually, clients use the EOI to short
list consultants with minimum qualification and later provide them with
details of requests for proposal.
Request for Proposal
Requests for proposal (RFP) seek submission of full £ for consultancy
services. The RFP defines the outcomes that clients are seeking from
consultants. Interested consultants provide full technical and financial
proposals. The consultants are expected to develop both a technical
and a financial proposal based on the client’s demand provided in the
request for proposal announcement.
Technical Proposal
The technical proposal is a document that lists and defines the technical
requirements of a technical assignment. The technical proposal explains
the method and tables the formulas for tacking the provided assignment.
The purpose of the technical proposal is to sell the methodology,
experience of the firm and a proposed team.
How to Write a Technical Proposal
A Technical proposal is a persuasive document with the objectives of
identifying the assignment to be completed and explaining why it needs
to be done. The document persuades the client that consultants have
PREPARATION OF CONSULTANCY TENDER DOCUMENTS
21
qualifications, plausible management plan and a technical approach.
The technical proposal also indicates resources needed to complete the
task in the stated time as well as cost constraints.
It is necessary to carefully comply with the format and template
provided for technical proposals. For the case of Tanzanian public
institutions, a technical proposal template is provide herein as
Appendix 2. Consultants are advised to set aside ample time to prepare
technical proposals. My experience indicates that most technical
proposals are prepared in a hurry. It is common to see irrelevant details
in some technical proposal documents. For instance, a consultancy
intending to bid for a consultant in the Open University of Tanzania can
use previous document bid relevant for the University of Dar es Salaam.
Such negligence raises doubts on the competency and originality of
consultancy evaluators. Consultants can avoid such embarrassments
by sharing their first drafts with partners or editors for opinions and
necessary improvements. Furthermore, when writing parts of technical
proposals it is important to do thorough research via the library and
the internet on the client organisation’s functions, and objectives of
the project.
Consultants should note that a technical proposal is an extension of
what was written in the EOI which was used for the firm’s short-listing
process. Therefore the EOI facts should match those in the technical
proposal. The profile of the consultancy firm, previous assignments and
qualification of consultants mentioned in the EOI are not expected to
change in the RFP. Sometimes consultancy evaluators request initial
EOIs when evaluating technical proposals. Deviations of the contents
of the two documents can imply cheating and consequently lead to
suspicion or disqualification of the bidder.
Appendix 2 provides guidance for preparation of technical proposals
for the Tanzanian Public Sector. The submitted Technical proposals are
expected to include a submission form, experiences of the consultants
and the consultancy organisation. The technical proposal should also
include comments on the topics of references, methodology, work plan,
work schedule, composition of the team and schedule, curriculum vitae
and secured declaration. As mentioned earlier some of these details are
usually included in the EOI documents earlier used for short listing.
Practically, technical proposals focus on the methodology, comments
on Terms of Reference (ToRS) and the work plan. Methodology provides
the details of how the consultants expect to approach the assignment
technically. Methodology explains the consultant’s understanding of
22
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
the assignment, the objectives, service approach; the methodology
for carrying out the activities in order to obtain the expected outputs.
Consultants are expected to highlight the problems to be solved, their
importance and technical approaches to be adopted.
Consultants should also propose methodologies to be adopted
and highlight due compatibility with the proposed approach. The
methodologies section includes data collection, procedure for carrying
out investigations, data analysis and presentation of alternative solutions.
Normally, most RFPs suggest methodologies. However, consultants
are expected to incorporate SOME modifications. The TORs require
the consultant to provide a quality plan and carry out the assignment
according to set provisions. An outline of the quality plan should be
included in the methodologies.
In the TORs section consultants can present and justify improvement
in the TOR such as deleting some activities considered unnecessary,
adding activities, or proposing a different phasing of the activities or
proposing an alternative method of undertaking the activities. Such
suggestions should be concise rather than opening up academic and
theoretical debates.
In the work plan, consultants should propose the main activities of
the assignment, as well as its contents and duration. The work plan
indicates the project phases, interrelations, milestones and delivery
dates of the reports. The proposed work plan is expected to be consistent
with provided technical approaches and methodologies. The consultant
is expected to show his/her understanding of and ability to translate
the TORs into a feasible working plan. A list of the final documents,
including reports, drawings and tables to be delivered as a final output,
should be included in the technical proposals. The work plan should be
consistent with the Work schedule of Form 5A5 as shown in Appendix 3.
Financial Proposal
The template for the financial proposal is provided as Appendix 3.
Usually form 5B1 and 5B5 are used for financial proposals. The financial
estimates include the fees, incidentals, reimbursable expenses and perdiems which must be internally split by the partners. The financial
proposal should provide information that can speed up payment and
make it competitive.
PREPARATION OF CONSULTANCY TENDER DOCUMENTS
23
How to Write a Financial Proposal
The Financial Proposal provides the expected detailed cost breakdown
of undertaking a consultancy assignment. The PPRA template for
financial proposal has five forms, namely the submission form, summary
of costs, breakdown of staff remuneration; break down of reimbursable
expenses and breakdown of taxes. The proposal provides separate
figures for two separate functional categories. The first category is for
professional staff consultancy fees. Their positions must correlate with
the ones indicated in Form 5A7. Consultants are expected to indicate
the total expected input of staff and staff-month or man hour rates
required for carrying out the activities indicated in the form.
The second category of the financial proposal is cost-reimbursable
items. Cost-reimbursable can be referred to as operating costs for
undertaking the consultancy assignment. Suggested reimbursable
operating costs can include estimates such as travel, stationery, outof-pocket expenses, enumerators’ remuneration, local transport and
facility hiring costs. Other reimbursable costs can include payments of
support Staff such as draftsmen and clerical staff.
It is important to emphasize that a well prepared consultancy
tender document plays a large role in competitions for the assignment.
Consultants should remember that contrary to research defence there is
no opportunity to clarify issues in the process of choosing consultants.
It is essential to always follow the RFP selection criteria. Consultant
should always comply with all the client instructions regardless of
their weight.
For example, I have experienced cases of the disqualification of giant
consultancy firms that failed to include an anti-bribery policy statement
in their submission.
3
Choosing a Competent Consultant
Introduction
This chapter discusses procedures of opening and evaluating
consultancy bids. Various methods of selecting the best consultant
will be discussed, and the objectives of the chapter are twofold. The
first is to enlighten consultants on issues to consider in matching their
consultancy with the selection methods which are generally provided
in the request for proposal. The second objective is to provide skills
to those responsible for consultancy evaluations. The strengths and
weaknesses of each consultancy selection method are discussed in
subsequent sections.
Opening of Consultancy Bids
Consultancy bids are opened by a Tender Committee immediately
after the submission date of tender documents. The consultant’s
representatives can be present at the tender opening meeting. The
envelopes with the financial proposals are usually not opened until
the evaluation of the technical proposals has been completed. The bids
for which the client has received a valid notice of withdrawal are not
opened. The clients will examine the technical proposals to determine
whether they are complete, properly signed and adhere to other
provided conditions. At this stage the consultants are not expected to
influence the clients in any way. Any effort by a consultant to influence
the client during the tender opening or evaluation processes can result
in the relevant bid being rejected.
26
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Consultancy Bid Evaluation
Consultancy evaluation is the process of determining whether a
consultancy proposal meets the conditions for participation as specified
in the announcement of the request for proposals. If a consultancy bid
does not meet the defined minimum conditions it is usually rejected by
the client. The consultancy evaluation is normally done in accordance
with the criteria identified in ‘criteria and method of evaluation.’
Generally, the evaluation panel examines the submitted bids for
compliance with set conditions, such as the completion of all relevant
consultancy forms.
Each bid submission is read in detail and its strengths and weaknesses
are assessed and recorded. The submissions are then scored against the
advertised criteria and ranked. There are several specific methods used
in the selection of consultants as described in the following sections.
Methods for Selecting Consultants
The most common methods used to select the successful consultants
include the Quality Based Selection (QBS), Quality and Cost Based
Selection (QCBS), Least Cost Selection (LCS), Fixed Budget Selection
(FBS) and Consultants’ Qualifications (CQ).
Quality Based Selection (QBS)
Quality Based Selection is where the most appropriate consultant
is chosen on the basis of their skills, experience and other essential
attributes; leading to the negotiation of a mutually agreed remuneration
for an agreed scope of services (FIDIC, 2011). The QBS is used for
highly complex and specialized assignments for which it is difficult
to define the precise Terms of References (ToRs). In this method two
envelopes are used for submission, that is, separate technical and
financial proposals. The best technical proposal is invited for negotiation
on price. In the QBS, negotiations are not expected to alter the quality of
intended output.
In QBS clients are guided by the qualifications of the firm/consultant,
and their capability to meet the specific objectives and undertake
the activities planned. The attributes looked for in the prospective
consultant are expertise, experience, rapport, past performance and
commitment to the client’s objectives. Consultants selected through the
QBS method can be more confident of fees appropriate to the scope of
service, and opportunities for the ongoing professional development of
CHOOSING A COMPETENT CONSULTANT
27
the consultancy firm. This can provide for capacity building companies
in developed and developing countries (FIDIC, 2011).
Quality and Cost Based Selection (QCBS)
The Quality and Cost Based Selection (QCBS) is suitable for complicated
consultancy projects. Normally the QCBS strikes a balance between
quality and price without removing the focus on quality. The QCBS uses
a competitive process among short-listed firms that takes into account
the quality of the proposal and the cost of the services in the selection
of the successful firm. However, cost as a factor of selection is must be
used judiciously. Overall the weight is usually given to the quality and
cost is determined for each case in accordance with the nature of the
consultancy assignment.
The QCBS selection process includes the following steps:
(i) Consultants submit two envelopes - technical and financial
proposal as per RFP,
(ii) The technical proposal is evaluated in line with set criteria,
(iii) Financial proposals are then opened for technical proposals
that meet minimum requirements,
(iv) The lowest cost gets the highest score,
(v) Technical and financial scores are combined for the
aggregated score,
(vi) Highest scoring consultant is awarded the consultancy
project.
Least Cost Selection (LCS)
The least cost selection method is generally appropriate for selecting
consultants for assignments of a standard or routine nature (such as
auditing assignments) where well-established practices and standards
exist (World Bank 2011). Under this method the following steps are
followed:
(i) The Consultants submit two envelopes (technical and
financial proposals) as per the RFP,
(ii) Technical proposals are evaluated in line with set criteria,
(iii) Financial proposals are opened for technical proposals that
meet minimum requirements,
(iv) The financial proposal with the lowest cost whose technical
proposal is above the threshold wins.
28
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Fixed Budget Selection (FBS)
The fixed Budget selection method is appropriate only when an
assignment is simple and can be defined precisely and when the budget
is fixed (World Bank, 2011). In undertaking the FBS the following steps
must be observed:
(i) Request for proposals shall indicate the available budget,
(ii) The ToRs shall be prepared to ensure that the budget is
sufficient,
(iii) The technical proposals shall be opened first and followed by
financial proposals,
(iv) The proposals that exceeds the available budget are rejected,
(v) Lastly the consultant that has the highest ranked technical
proposal shall be invited for negotiation.
Qualification Based Consultant Selection (CQBS)
The Consultants’ Qualification Based Selection (CQBS) method is used
for very small assignments. The CQBS method follows the following
procedures:
(i) The ToRs are prepared,
(ii) The request for Expression of Interest (EOI) is advertised,
(iii) The consultants are selected on the basis of experience and
competence relevant to the assignment,
(iv) The client prepares a shortlist of possible consultants,
(v) The selection of a consultant with the most appropriate
qualifications concludes the process.
Single-Source Selection (SSS)
The Single-Source Selection (SSS) of consultants does not provide
benefits to quality and cost which are a result of competition. This method
lacks transparency in selection and could encourage unacceptable
practices (World Bank, 2011). SSS can be used in exceptional cases
such as when there are special interests for the client. The method
does not ensure economy, efficiency nor provide equal opportunity
to all qualified consultants. The SSS may be appropriate for tasks that
represent a natural continuation of previous work carried out by the
same consultants such as response to natural disasters and emergency
situations. It applies to very small assignments or when only one firm is
qualified or has experience of exceptional value to the assignment.
CHOOSING A COMPETENT CONSULTANT
29
The above selection methods can apply in various situations based
on the aforementioned strengths. However, the most frequently used
methods of consultants’ procurement are Quality and Cost Based
Selection (QCBS), Quality Based Selection (QBS) and Consultants
Qualification Based Selection (CQBS). As pointed out earlier, consultants
should acquaint themselves with the various methods by reading the
provided RFP carefully. Understanding the possible selection methods
that could be used helps a consultant in drafting competitive financial
and technical proposals.
Consultancy Award
Clients award contracts to consultants whose bids are responsive to
the RFP and have achieved the highest total score in the evaluation.
Clients also consider the consultants capability and the resources they
have available in order to carry out the services effectively. The most
competent consultants are usually invited to participate in meetings
with clients to clarify outstanding issues and finalize agreements. The
minutes of the meeting form part of the basis upon which the agreement
is reached. The next step is to draft the consultancy contract as described
in the following chapter.
4
Execution of Consultancy Contracts
Introduction
The objective of this chapter is to familiarize consultants with the skill
of executing consultancy contracts. Consultants require extra skills in
addition to their areas of specializations. They may be skilful in these
areas, and therefore able to successfully provide required technical
advice, however, executing a consultancy assignment requires further
skills in contract management. Consultants also require specific
behaviours and attitudes to understand and maintain relationships with
various clients.
Consultancy Contracts
Immediately following their selection, the procuring entities send
the agreement and special conditions of contract to the successful
Consultant. These documents incorporate all agreements between the
parties as obtained in the contract negotiations. Consulting contracts
may vary widely in their format and their length, depending on the
nature and the complexity of the project and procurement client.
Forms 5C in the attachments provide a sample of consultancy
agreement used in public institutions in Tanzania. Normally, the
contract shows what the parties (clients and consultants) have agreed in
terms of engagement and services, the consultancy period, consultancy
fees and other expenses, deliverables, confidential information,
insurance and governing law and dispute resolution. There are a few
32
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
other standard articles in the written contract which include the name
and the location of the parties involved, the date the contract is signed,
an offer, acceptance of the offer, consideration (benefit accruing to the
parties) and signatures of the parties.
It is worth noting that there are cases where consultants execute
an assignment without any official agreement. The trust between the
procuring entity and consultant can work out. However, a written
contract helps to avoid misunderstandings, uncertain terms of payments
and disagreements on the nature of the assignment to be executed. It is
advisable for consultants to involve legal experts in favourable contracts.
It is normal for consultants to be tempted by the amount of payment
provided at the cost of unfavorable terms. The contract can include a
disclaimer clause to absolve the consultant in events that are beyond
their control. A disclaimer clause in the contract is essentially seeking to
limit the application of some liabilities.
Getting Started with a Client
There is an expectation that consultants will transfer their competencies
to a client’s personnel. Knowledge transfer is recognized as one of the
key success factors in consultancy implementation (Kumar and Ganesh,
2009). Therefore, decisions on which consultant to hire are based on
prior performance and the consultants’ understanding of the potential
client’s needs. However, consultants should know that transfer of
knowledge involves interaction between people (Boh, 2007). It is
therefore, essential for consultants to be aware of the behaviors and
attitudes of clients.
Schein (1997) proposes a simplifying model to understand the
types of clients and relationships. The first is Contact clients, who first
contact the consultant with a request, question, or issue. The second is
Intermediate clients who get involved in various interviews, meetings,
and other activities as the project evolves. The third is Primary clients
who ultimately “own” the problem or issue being worked on. These are
typically also the ones who pay the consulting bills or whose budget
covers the consultation project.
The fourth type is the Unwitting members of the client organization
or client system who are above, below or laterally related to the primary
clients. They will be affected by interventions but are not aware that
they will be impacted. The fifth are Indirect clients who are aware
that they will be affected by the interventions but who are unknown
to the consultant and may feel either positively or negatively about
EXECUTION OF CONSULTANCY CONTRACTS
33
these effects. The last type is the Ultimate clients – the community, the
total organization, an occupational group, or any other group that the
consultant cares about and whose welfare must be considered in any
intervention that the consultant makes.
Executing a Consultancy Contract
Consultants are advised to involve legal and probity advisers at an early
stage of an assignment. Ideally, contract execution goes as far back as the
preparation of tender documents by ensuring that all issues included in
the contract are properly discussed by both parties.
Consultants should exercise caution in discussions to avoid creating
implied contracts. Certainly, not all consultants are experts in contract
management but they must strive to understand a few issues, including:(i) Definition of the terms used in the consultancy contract,
(ii) Scope of the consultancy work,
(iii) Contract price and mode of payment,
(iv) Duration of contract and whether it is renewable,
(v) Standards of conduct (eg. not engaging in other activity),
(vi) The possibilities of fore-shorting the contract agreement, and
(vii) Miscellaneous issues that can arise during the contract
implementation process.
Ideally, a detailed consultancy contract specifies the scope of services and
a schedule that includes important milestones. They may also provide
details on personnel roles and responsibilities, forms of payment,
fees and reimbursement of expenses, over-budget contingencies, and
termination clauses (cancellation conditions and confidentiality).
In the contract execution, consultants should consider the use of
trained negotiators in complex or high value projects. They must
ensure accountability in observing government financial regulations.
The financial regulations must not be compromised, particularly not
through the inappropriate use of consultancy clauses. The clients and
consultants must clear up all outstanding issues before signing a contract.
Where cash flow is a consideration, the contract should provide that the
consultant will issue a tax invoice, whenever requested. Before signature
both parties must check the final draft contract with a legal adviser.
Consultants are advised to sign the contract before the commencement
of any consultancy assignments.
34
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
The Value of Consultancy Services
Many factors influence the worth of consultancy services. When setting
consultancy fees, take into consideration the following issues:
(i) The amount that can be taken as a token advance payment,
(ii) The consultancy market rates,
(iii) Rarity of the knowledge and extent of specialization required
in the particular consultancy assignment,
(iv) ‘Cost plus factor’ - the expected additional costs in the project
implementation,
(v) Pre-determined rates in cases of certain defined activities in
the projects.
Consulting Success Factors
It is essential for consultants to understand the success factors in an
ideal client-consultant engagement. It is generally accepted that the
way consultants put together the consulting process will affect the
relationship with the client and consequently the success of the project.
Consulting engagements which contain the following success factors
will normally lead to more favourable project outcomes:
• competent consultants,
• emphasis on client results and consultant deliverables,
• clear and well communicated expectations and outcomes,
• visible executive support,
• an adaptation to client readiness,
• an up front investment in learning about the clients environment,
• defined terms of incremental successes,
• real partnership with consultants, and
• inclusion of consultants in and through the implementation phase.
Rynning (1992) also offered a tentative list of factors that contribute to
consulting ‘success’ as follows:• [results that are] worthy of further investigation,
• clarity in need/problem formulation,
• number/quality of new ideas,
• new knowledge,
• special planning,
• new ways of thinking,
• level of planning,
• level of co-operational abilities,
EXECUTION OF CONSULTANCY CONTRACTS
•
•
•
•
•
•
•
•
35
management of time,
planning capabilities,
efficiency of execution,
strategy formulation,
problem solving,
implementation,
follow-up, and
Economy.
Consulting Maxims
Clients normally have great expectation of consultants. It is important
for consultants to know that sometimes clients expect more than
provision of technical advice. It is, therefore, advisable for consultants
to give a client positive feelings and messages of assurance since the
clients’ trust is the best job security in consultancy undertakings.
Clients feel comfortable if the consultant can easily be contacted at any
time. Consultants should frequently discuss problems faced during the
course of work with the client. Usually clients would prefer timely bad
news over unhappy surprises. Consultants should implement a good
mechanism to deal with housekeeping and paper work. To ensure that all
documents are filed properly, they need to develop their communication
skills, as this is a vital asset in data collection, analysis and provision of
advice to clients.
Consultants should conduct themselves appropriately and
accumulate a list of clients who will speak well about them. Clients’
references are reputable in the consulting world. Upon completion
of an assignment, consultants must make a full disclosure of data,
source code and passwords. It is well acknowledged that clients are
comforted by consultants who don’t act as though they are entitled to
their engagements. In whatever deal consultants should insist on good
faith. The best way to make money for a consultant is to make money
for clients.
Consultants should learn to read their clients. Consultants should
know that clients buy consultants judgment and not just the time and
expertise. Long-term clients are best customers, hence consultants
should learn to manage their time and project effectively. Education is
the best investment a consultant can make, hence consultants should
to keep themselves always updated. Consultants with the reputation of
stealing clients will never be trusted by other professionals. It is vital to
remind consultants to maintain their integrity and professionalism.
36
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
The Consulting Process
During a typical consulting intervention, consultants and the clients
undertake a set of activities required in achieving the desired purposes
and changes. These activities are normally known as “the consulting
process”. This process has a clear beginning (the relationship is established
and work starts) and end (the consultant departs). Between these two
points, the process can be subdivided into several phases, which help
both the consultant and the client to be systematic in proceeding from
phase to phase, and from operation to operation.
Many different ways of subdividing the consulting process can be
found in literature. There is a range of suggested models ranging from
three to ten phases. This book has chosen a simple five-phase model,
comprising of entry, diagnosis, action planning, implementation and
termination. This model, shown in Figure 2, will be used consistently
in this publication.
Figure 2: Phases of the Consulting Process
1. Entry
• First contact with clients
• Preliminary problem diagnosis
• Assignment planning
• Assignment proposals to client
• Consulting contract
2. Diagnosis
• Purpose analysis
• Problem analysis
• Fact finding
• Fact analysis and synthesis
• Feedback to client
3. Action planning
Developing solutions
• Evaluating alternatives
• Proposals to client
• Planning for implementation
4. Implementation
• Assisting with implementation
• Adjusting proposals
• Training
5. Termination
• Evaluation
• Final Report
• Settling commitments
• Plans for follow-up
• Withdrawal
Source: ILO, 2002:21-24
EXECUTION OF CONSULTANCY CONTRACTS
37
Transmittal Letter
After completion of a consultancy assignment, consultants are expected
to submit their documents using a transmittal letter. A transmittal
letter is sometimes known as a cover letter. This is a letter that usually
accompanies the consultancy deliverable documents. A transmittal letter
provides the client with a specific context in the consultancy deliverable
document and simultaneously gives the consultant a permanent record
of having sent the requested deliverables.
Transmittal letters are usually very brief. The first paragraph
describes what is being sent and its purpose. The second paragraph can
summarize the key elements of the deliverables in one or two sentences
and provides the clients with other useful information. The letter can end
with a one-sentence paragraph that establishes goodwill by thanking or
complimenting the client. Figure 3 provides a sample of a transmittal
letter sent to Tanzania Commission for AIDS.
Figure 3: Sample d Transmittal Letter
Consultant’s name
P. O. Box. 1234
Dar es Salaam
2nd November 2016
Executive Chairman,
Tanzania Commission for AIDS,
P.O.BOX 76987,
Dar es Salaam.
Dear Sir/ Madam,
RE: Study To Determine Government Contribution to HIV and AIDS
National Response
This letter is written in view of the contractual obligations under
Contract No. TACAIDS-IE/010/2016/10 which seeks to determine the
contribution of Government in HIV and AIDS National Response.
Following the submission of the initial Draft of the Report in April, 2016
and preliminary comments made by the TACAIDS reference team we are
pleased to submit the revised draft of the report which took into account
the preliminary comments raised.
We are aware that we are required to submit an accessible summary on
the principal conclusions, policy implications and recommendations
for wider distribution to the public (maximum 5 pages) but this will be
submitted along with the final version of the report after comments from
TACAIDS management and stakeholders.
Sincerely yours
Lead Consultant
5
Consultancy Project Management
Introduction
There is no failsafe methodology or a perfect ‘cookbook’ approach
existing for managing consultancies. Many authors have endeavoured
to write some tips on consultancy project management skills. But in
practice the process is just like managing other human relationships. The
management approach that worked well in one assignment might not
work in another case. This chapter walks through common consultancy
project management skills. The objective is to enhance consultants’
understanding of the basics of managing projects and the identification
of key factors in consultancy project management.
Project Management
Project management practices encompass what consultants do while
managing their projects. Consulting presents common principles and
methods which are fundamental to the majority of consultants (Kubr,
2002). The characteristics involved in project management skills include
the ability set clear objectives, meeting deadlines, delivering results
and managing conflicts (Handley et al. 2006). Glen (2002) stresses
that many technically capable consultants fail to build sustainable
businesses because they lose their client through the lack of conflict
management skills.
40
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Managing Client-consultant Relationship
Experience points out that most client-consultant relationships have
problems for largely non-technical reasons. Such non-technical
reasons include a lack of effective communication, improperly setting
expectations, lack of follow through on important details, under
estimation of project complexity or scope and failing to understand
client requirements. The key tip for consultants is to establish a
sound and open working relationship. Consultants can insist on
regular (weekly) face-to-face meetings to discuss all conflicts between
consultants and clients.
Figure 4: Managing Clients-consultant Relationship
Formal
contract
The basis
of clientconsultant
relationship
Understanding
overt
expectations of
client
Meeting
expectations
Psychological
contract
Understanding
unwritten client
psychological
expectations
Outcomes
for
consultancy:
Gives
consultant
competitive
edge over
other
consultants
Literature emphasizes that consultants need to be able to make sense
of and translate what the client says with an appreciation of the
circumstances and an understanding of the context of the client and
project (Sobel, 2004). Consultants must ensure not only that they have
a clear understanding of what is needed, but that these requirements are
communicated. The two parties should keep an ‘open door’ to ensure that
communication is always possible. Client-consultant communication
is commonly regarded as a fundamental building block in a successful
client-consulting relationship (Appelbaum and Steed, 2005).
A written contract that includes clauses on termination, arbitration
and graduated incentives and penalties, is an essential foundation for
the relationship. However, consultants need to be managed but not
supervised or controlled (Dobies, 2006). A client can appoint a Project
CONSULTANCY PROJECT MANAGEMENT
41
Officer for all formal contacts with consultants. Steering Committees
can be very useful, particularly where there are many stakeholders in
the project. The Steering Committees also need to be managed firmly to
avoid undue interference in the consultant’s main task.
Clients are advised to base payment schedules on the milestones
specified in the contract. It is important to distinguish between the
results of consulting projects, their effectiveness, the client’s satisfaction
and consultant’s performance in achieving the results (Czerniawska
2002). The client can instruct the consultant to produce an issues log
to ensure accountability. However, the client should remember that
unnecessarily prolonged meetings cost money and send wrong signals
to consultants about a client’s professionalism and desire to get the job
done in time (Dobies, 2006).
Data Gathering Method
When collecting new information, it is important to select an approach
that is manageable and that will provide accurate information. A
consultancy is carried out using different methods for gathering data
such as in-depth interviews, focus group discussion, questionnaires,
internal consulting and brainstorming. Questionnaires as data collection
technique are usually deployed to collect information from respondents
without direct contact. Paper versions of a survey may be handed out
or mailed. A consultant might also ask people to complete surveys
electronically via email or internet.
Another technique is using interviews where information is collected
orally from informants by using a question and answer format. Interviews
can be conducted in different ways, such as in person or over the phone.
Interviews can be fairly unstructured, allowing you to be flexible in
deciding what questions to ask or how to best ask the question, or can be
tightly scripted, requiring consultants to ask questions in the same way
across respondents. Focus group discussion is conducted with a small
group of participants or other informants at the same time.
Participants’ Consent
A consultant may want to get as many participants as possible to
participate in a data collection exercise. However, participants must
voluntarily consent to their involvement after being fully informed
about the research, and having comprehended what they have been
told (Chambliss and Schutt, 2010). In terms of data collection for a
consultancy assignment anyone who participates should be informed
42
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
of any potential risks or benefits and in some cases this right should be
guaranteed through informed consent. People should have the right to
complete a survey, interview, or participate in a focus group willingly.
They should also have the right to refuse to complete portions of any
evaluation questionnaire.
Ensuring Confidentiality
It is often desirable to keep surveys anonymous and consultants should
avoid requesting information that might later help to identify the
respondent. The use of respondents’ names or social security numbers
should be avoided. If survey respondents are clearly told that they do
not need to provide this information, they may feel more comfortable
giving honest information. However, there are a number of reasons a
consultant or researcher may need to identify the source of information.
A consultant may want to connect survey data to other information,
such as service records or background information about participants.
If you are collecting survey data at two points in time, such as before and
after a programme, you may need to have a way to match such surveys.
You may also need to collect names in order to distribute incentives to
those who complete the surveys.
Collecting names or other identifying information is not necessarily a
deterrent for respondents - often people are comfortable providing their
names as long as the reason for collecting that information has been
clearly explained to them. Regardless of whether surveys are conducted
anonymously or not, the information that is provided should be kept
private as much as possible.
Analyzing and Framing Problems
The structure of a consultancy contributes to the way organizational
problems are conceptualized. In many cases, much of the difficulty comes
from the way the problems are framed (Hicks and Nair, 2009). Problem
framing often plays an important role as a critical activity in addressing
and designing problems. Breakthroughs come when consultants take
a step back and re-define or re-frame the problem into one that can
be more effectively addressed by their skills, resources and aspirations.
Figure 5 illustrate the stages involved in the process of problem framing
by a consultant.
Consultants should strive to pose a question that strikes at the heart
of a problem. It is worth remembering that the question posed will
guide the consultants in their discussion of the problem. Sometimes
CONSULTANCY PROJECT MANAGEMENT
43
consultancy teams get stuck when myopia has already set in, preventing
them from seeing the problem in any other way. If and when alternatives
do emerge, voicing them may be discouraged because so much has
already been invested along a previous line of reasoning (Staw, 1987)
Consultants are widely acknowledged to be external people who
obtain specialized knowledge in product innovation in order to reap
design and business advantages for their clients (Berends et al, 2011;
Bruce et al., 1999). Faced with future challenges, consultancies often
get involved in competitions between other product design industries
for better successful design outcomes through bridging the gap
between clients, users and technology-oriented solutions (Hakatie &
Ryynänen, 2006).
Figure 5: Problem Framing
Information gathering
Problem framing
Problem perception by
the client
Potential Frame Change (reframe)
Substance: Positions, issues,
assessment, actions
Process: Perceptions, others,
viewpoints, procedural settings
Values: An understanding of different
stakeholder values and ability to
communicate
Consultant’s position
formation
Re-define and re-frame the problem
Situation assessment and
Determination of courses
of action
Break through or better
Looking for Patterns or Alternatives
There are four proposed steps in solving organizational problems. These
techniques are supplementary to, not replacements for, more traditional
problem solving methods. Although not all consultancy problems
follow this pattern, consultants can acquire some skills in these steps.
44
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Effective framing can lead to effective action to combat the problems
we design. However, time and other pressures often result in premature
framing of the problem. Hicks and Nair, (2009) suggest that consultants
should not just find problems but design them in their favour. In other
words, if consultants cannot solve a problem they can change the
problem they are solving. Consultants should not only ask “What next?”
but also, “What is possible?”
For unexpected results consultants can ask themselves: “In what
circumstances would these unexpected results make perfect sense?”.
They should ensure time spent reflecting on problem solving is well
spent (Hicks and Nair, 2009.)
Remembering Strengths of Clients
Schein 1997 proposes a simplifying model to understand types of
clients and client relationships. In Schein’s model, six basic types can be
distinguished as follows:
(i) Contact clients - the individual(s) who first contact the
consultant with a request, question, or issue,
(ii) Intermediate clients - that is the individuals or groups that
get involved in various interviews, meetings, and other
activities as the project evolve.
(iii) Primary clients - comprising of individual(s) who ultimately
“own” the problem or issue being worked on. These are
typically also the ones who pay the consulting bills or whose
budget covers the consultation project.
(iv) Unwitting clients - members of the organization or client
system above, below and laterally related to the primary
clients who will be affected by interventions but who are not
aware they will be impacted.
(v) Indirect clients - focusing on members of the organization
who are aware that they will be affected by the interventions
but are unknown to the consultant and could feel either
positively or negatively about these effects.
(vi) Ultimate clients - including the community, the total
organization an occupational group, or any other group
that the consultant cares about and whose welfare must be
considered in any intervention that a consultant may make
(Schein, 1997).
CONSULTANCY PROJECT MANAGEMENT
45
Feeding Data Back to the Client
Consulting client feedback is critical in facilitating continual
improvement processes. Consultants have many different ways to
present feedback, including sharing it in smaller amounts and therefore
allowing the client to reach their own conclusions. Alternatively, a
consultant can lay out all the evidence at once and explain what action
to take. If appropriate, consultants can give the client advance warning
about the key messages. Giving feedback to clients is a precise dance that
requires thought, preparation, and learning over time. If the consultant
is too brutal, the message may be rejected or dismissed; if the consultant
is too soft or kind, the client may not take the feedback seriously.
Pushing the Engagement Forward
Lastly, a consultant may be expected to engage a client in the
implementation of changes. In pushing for the engagement, the
consultant can list the next steps for moving forward, or collaborate with
the client to develop an action plan. Action plans specify the actions
needed to address each of the issues raised by consultants, including
how to reach each of the associated goals, who will complete each action
and according to what timeline.
Workshop Presentations
At some point consultants are expected and required to do a stakeholder
workshop as part of their planned deliverables. It is wise for consultants
to learn presentation skills. Consultants should work with team
members and clients to complete engagement before workshops. Later,
they should involve major stakeholders of particular assignment. For
clarity of workshop sessions, consultants should review key elements
of the consulting engagement and major practice areas. Overall, clients
and stakeholders expect clear presentation and relevant data collection
if the consultants expect to collect data from stakeholders.
Figure 6 Summarising of consultancy project management
procedures. The first box outlines project clarification in terms of design,
problem identification and exploration of ideas. In the second box the
ideas are developed. The last box entails evaluation where the ideas are
refined and the final idea is formulated.
46
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Figure 6: Project Management Procedures
Project Initiation
(Set by Client)
Description of Conceptual Design
Design
Brief
Problem
Identific
Clarification
Idea
Exploration
Idea
Development
Development
Clarification
• Design Brief: clarifying
objective goals of the
project.
• Problem identification:
Identify defined problems;
identifying opportunities;
set board-based approaches;
determine design
approaches/strategies;
confirmation list of design
criteria.
• Idea Exploration: generating
idea selection.
Development
• Idea development: Further
development selected idea.
Refinement
Evaluation
Final Idea
Project Completion
Evaluation
• Refinement: Refinement of
the idea.
• Final Idea: Formulation of
final solution.
6
Consultancy and Change Management
Introduction
There is a reputable relationship between consultancy and change
in organizations. Most consultancy assignments are geared towards
changing organizational performance and the introduction of new
ways of service delivery and innovations that involve new technologies.
This chapter discusses the role of consultancy in change management.
Specifically the chapter addresses the following questions: as a change
agent, what kinds of skills are competencies should a consultant ideally
have in order to be considered effective? What contents can be included
in organisational changes? What kind of resistance can be expected by a
consultant during the process of instituting organisational change?
Why Change in an Organisation?
The most important question for consultants is why change in an
organization?. Practically, most organisations have been designed to solve
yesterday’s problems, rather than capitalizing on today’s opportunities
and effectively confronting the issues of tomorrow. Looking at most
organizations where consultants are engaged one finds that either profits
are declining or the provision of services is not impressive.
The factors which got us to where we are now are not likely to get
us where we want to go. Ideally most organizations were established
to address a specific community problem. There are institutions
which at their establishment were intended to put in practice agreed
48
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
policies. Equally so, business organizations were established to tap the
opportunities of particular times. With time these organizations require
major changes to match new challenges and business opportunities. It
is at this point that consultants come in the picture to provide required
technical advice.
People usually support improvement. Experience suggests that
employees like improvement in terms of job descriptions, specifications,
welfare, remuneration and working conditions. All these improvements
require expertise to change and re-engineer organization operations.
The fifth century Greek philosopher Heraclitus said nearly 2500 years
ago that “there is nothing permanent except change”. This suggests to me
that the occurrence of constant change in our lives and throughout the
universe is ancient wisdom. So since change is here to stay consultants
will continue to provide technical advice as needed.
External and Internal Forces of Change
External forces include the marketplace, technology, economic factors,
political and legal factors and social and cultural factors. Internal forces
of change include strategy adjustment, introduction of new equipment
or products, the state of the workforce and employees’ attitudes.
Why Consultants Deal with Change Management
The perception and understanding of organizations and the creative
shaping of new organizations is important for success in human
engagement. The dimension of organizational consulting has become a
core component of change management.
Figure 5 indicates how certain mindsets are often misunderstood
and ignored in bringing about charge. This diagram recommends that
consultants note the behaviour of employees in staff in organization and
prepare to address less tangible issues such as thoughts and feelings,
values and unmet needs.
Development of the Capability for Change
Consultants must not only manage change, but also develop the
capability for change. This does not only mean developing the abilities
of the people involved, but also developing organizational capability.
Infrastructure for change must be created. Mindsets and skills also
support continuous change. When working on capability for change the
concept of an organization is always a key issue.
CONSULTANCY AND CHANGE MANAGEMENT
49
Figure 5: Mind-sets are often Misunderstood and Ignored
• What we see
and usually try to
change
• What we cannot
see, make
assumptions
about and often
do not address
Behaviour
Thoughts
and feelings
Values
and beliefs
Needs met and unmet
A desire to change
ends up like most
New Year’s
resolutions if root
causes are not
identified and
addressed
Approaches to Organisational Change
There are several approaches to organisational change. Consultants can
apply any of the following three approaches based on their relevance.
(i) Rational Change which includes logical and linear
approaches such as Management by objectives (MBO),
Lewin’s field theory, TQM, OD and socio-technical systems.
(ii) Strategic change that includes business strategy and internalexternal “fit”. Examples include decentralised structures,
strategic management and cultural change.
(iii) Action-oriented change that entails particular implementable
aspects of organisational life. It is usually focused on
understanding the change context.
Sustaining Change
Sustained change is realised through teamwork, flexible structures
(networks) and global perspectives. Change agents facilitate these
changes. Change agents are empowered to make strategic, structural,
technological changes (interventions) as summarised in Figure 8.
50
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Figure 8: Content of Organizational Change
Structure
• Authority
relationships
• Coordinating
Mechanisms
• Job redesign
• Spans of control
+
Technology
• Work process
• Work methods
• Equipment
+
People
• Attitudes
• Expectations
• Perceptions
• Behaviour
The Roles of Consultants in Change Management
Consultants solve problems related to processes, systems, teams,
individuals, organisational cultures, structures, and designs within
every area in an organisation.
Consultants are expected to bring about positive change and improve
organisational performance and effectiveness through diagnosis and
interventions. They confront old ways and help people to get out of
comfort zones and provide expertise in team building, systems redesign,
and other behavioural interventions
Why Use a Consultant in Organizational Change?
Consultants bring to an organization special knowledge and skills
which are not often easily available in a client’s organization. Intensive
professional help is often temporary but organizations must make sure
their employees are trained to acquire skills needed to sustain change.
Consultants are also useful as they bring impartial external
viewpoints to organizations. It is always easier for client organizations
to take on the advice provided by consultants as opposed to the opinions
of internal experts. Sometimes consultants are used as justification
for new management decisions. Management can have strategies that
require the validation of external experts. Consultants also contribute in
organizational learning and staff competence development.
External Change Agents
Members of an organization might believe that if problems arise,
then external consultants can simply walk away with little negative
consequences on their part. However, consultants need extra time to
enter an organisation and gain a working knowledge of it. Sometimes
the staff of an organisation may be wary of outsiders for fear of change
and its impact on staff jobs.
CONSULTANCY AND CHANGE MANAGEMENT
51
Consultants may also be viewed negatively as they are seen as making
a relatively small investment in an organisation.
Internal Change Agents
Organizational staff often have access to a range of information,
including rumours, company reports and direct observations. Staff views
are usually more readily accepted by management and stakeholders who
can more easily establish rapport and trust.
However, there can be a loss of objectivity as staff have stronger ties
to an organisation.
Staff and management can be overly cautious, particularly when
strong recommended changes can affect their careers. Staff often
resent change as they lack new skills and the experience of facilitating
organisational change.
7
Consultancy Project Closing and
Evaluation
Introduction
Consultancy project closing involves the completion of final milestones.
It is important that final acceptance or ‘signing off ’ of a project does
not occur without prior reconciliation of all outputs. Project closing
entails matching the outputs against the deliverables specified in the
consultancy contract.
Consultancy Project Reconciliation
The consultant and client have several factors to check during project
reconciliation. These include confirming that all deliverables specified
in the contract have been provided. Reconciliation confirms and verifies
that the quality of the deliverables is satisfactory. Consultants must
take into account any new circumstances to ensure that deliverables
are current and relevant and that all outputs were delivered on time or
as part of an agreed variation. All expenses incurred by the consultant
must be authorised and approved for payment and all objectives of the
project must be met by the deliverables. These are the indicators of a
good reconciliation.
Risk Management in Consultancy Assignments
Risk is typically defined as of the possibility of danger, loss, injury or
other adverse consequence. Project risk management is the process of
54
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
identifying potential surprises up front and managing them throughout
the project to diminish their likelihood or impact (Preston and
Merritt, 2002). The possibility that a final output will be delivered by
the consultant, and payment made, without a proper check that the
deliverables specified in the contract have all been provided, is a main
risk that needs to be mitigated.
An obvious mitigation strategy is, therefore, to conduct a thorough
reconciliation of output received from the consultant with the outputs
specified in the contract.
Consultants should identify consulting project risks and prepare to
manage them, lest they wreak havoc further down the road. Practically
speaking, consultants will not be able to avoid every potential pitfall
that might threaten a project and some issues are truly unknowable in
advance. In addition, consultants must strive to prepare for common
risks such as loss.
The potential for risk could be measured in financial terms, time,
corporate image and follow-on consulting engagements. Potential
is a key word here, because, if risk does not occur, there is no loss. In
managing project risks, we ignore the possibility that things could turn
out even better than expected—not to be pessimistic, but because our
objective is to minimize loss (Preston and Merritt, 2002).
For a risk to be manageable, it must have a limited time frame. For
a consulting project, many risks will end with the termination of the
engagement. But some risks will end sooner, and some—such as nondisclosure agreements—may live for a period beyond the engagement.
The time component could be expressed as a condition that determines
when the risk ends, rather than directly in terms of time. For example,
if you are conducting training as part of an engagement, a risk might
be that not enough people sign up for the training. This risk terminates
when you reach your minimum class (Preston and Merritt, 2002).
With a few exceptions, each risk will be combatted through the use
of one or more action plans. You have many choices of action plan,
including acceptance. Through acceptance there is simply a decision
to accept the risk, and do nothing about it. This can occur when its
consequences (total loss) are small or if you discover that action plans
would be more costly than if the risk event occurred. The second action
is avoidance - where once the risk is understood a consultant uses
another route to avoid it. The third action plan is transference where
a consultant transfers the risk to another party, such as a contractor
or supplier. The last action plan is redundancy where a consultant
CONSULTANCY PROJECT CLOSING AND EVALUATION
55
simultaneously pursues a parallel route, deciding at some future date
which of the two routes to take. This is usually an expensive option. This
leaves us with the most common types of action plans.
Prevention plans seek to change the risk event drivers in a favorable
way. Prevention plans are truly proactive, since they attempt to keep the
risk event from occurring.
Contingency plans seek to change the impact drivers in a favorable
way. Contingency plans are more reactive, because they diminish the
consequences only if the risk event actually occurs (Preston and Merritt,
2002).
Project Evaluation
Even if a project has been completed successfully, it is still possible to
gain some additional useful knowledge through evaluation.
Good consultants will be prepared to assist in this process, and some
also provide evaluation forms to clients (or conduct interviews) in order
to gain feedback from and on their own staff.
Project Review
A brief review can provide an opportunity to discuss the consultant’s
view on how the results can best be used. An external perspective from
someone who has a good grasp of the subject matter at the end of the
project can be invaluable in providing a learning experience for all staff.
It is important as a client to improve your own contract management
skills and identify further value to be gained, for example, in making
available to the public or government ministry any useful data collected.
The review should focus on major issues, not the smaller nitty-gritty
elements. Could the project objectives have been better defined?
• Was there enough (or too much) management by the consultant?
• How could the consultant have performed better?
• Have enough skills been transferred to the client’s staff?
• Which risks were not identified properly before the project started?
• How useful are the results compared to the original objectives?
• How could the agency have performed better?
8
When Things Go Wrong in a Consultancy
Introduction
Throughout the consulting process the practitioner can face a variety
of challenges. Things can go wrong at any stage of a project. The clientconsultant relationship is extremely important in fully understanding
consulting projects and the challenges they face. Contact in the initial
phases is considered as the most vital contact since it is at this point that
the client‘s initial expectations are formed and the consultant assesses
the gap between those expectations and reality (Kakabadse et al., 2006).
Protective Measures
Burke et al. (1984) identifies specific contributors to project success and
failure associated with the different phases of the consulting process. For
instance, during the entry phase it is important to consider the power of
the client and his or her commitment to change. In terms of contracting,
clarity is paramount for both written and unwritten commitments.
Regarding the diagnosis phase it is very important, for example, to have
access to organizational resources and to apply a clear framework in
diagnosing. Flexibility is essential during the planning phase, while
client‘s management style and rewarding systems play an important role
during the implementation phase of the consulting project.
Kubr, (2002) suggested that a lack of clarity is the primary source
of conflict in client-consulting relationships. Client-consultant
communication is commonly regarded as a fundamental building block
in a successful client-consulting relationship (Appelbaum and Steed,
58
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
2005). Communication skills involve both the ability to listen to the
other party and the skill to then communicate clearly.
It is generally accepted that the way the consultant puts together
the consulting process affects the relationship with the client and
consequently the success of the project.
Based on the anecdotal views, conceptual frameworks and empirical
studies described above, we conclude that consulting engagements
involving the following success factors will lead to more favorable
project outcomes:
–
Competent consultants,
–
An emphasis on client results vs consultant deliverables,
–
Clear and well communicated expectations and outcomes,
–
Visible executive support,
–
An adaptation to client readiness,
–
An investment up front in learning the clients’ environment,
–
Defined in terms of incremental successes,
–
Real partnership with consultants, and
– Inclusion of the consultants through the implementation phase
(Appelbaum and Steed, 2005).
Figure 9
CONSULTING FIRM
Backstage
CLIENT A
On Stage
Backstage
Management
consulting personal
Potential Gap (1)
Invisible organization
& Systems(Database,
Research Personnel,
etc)
Potential Gap (2)
On Stage
Invisible
Organization
& Systems
Potential Gap (3)
Potential Gap (5)
Potential Gap (6)
Potential Gap (4)
Inanimate
Environment
This inadequacy is the result of a number of factors such as poor
communication, failure to identify the real problem, promising too
WHEN THINGS GO WRONG IN A CONSULTANCY
59
much, disagreement about roles, and different interpretations of the
terms of the contract, among others. Moreover, the risk increases as
one problem or misunderstanding can easily lead to another one of
greater magnitude that in turn would further generate other problems
in a snowball effect. Initial misunderstandings or uncertainties will
generally not work themselves out. In view of this observation it is
essential to rationalize the complex interactions of the management
consulting encounter in aiming for better understanding of the sources
of such misunderstandings (Martin, Jr. et al., 2001, p. 147).
Psychological contracts are drafted at the outset, when the clientconsultant relationship is established. At that time, expectation gaps
begin to occur naturally given that psychological contracts are not
detailed explicitly (Martin, Jr. et al., 2001 , p. 147).
In regard to cooperation, the very fact that some of the involved
parties belong to different organizations is a factor that characterizes the
client-consultant relationship. After all, the consultant is a stranger to
the client organization and thus uncertainty, mistrust and anxiety might
be experienced. Kubr (2002, p. 153) and McLachlin (1999, p. 399) state
that at the very least a decent match is needed between the client and
consultant in terms of management style, beliefs systems and personality,
in order to prevent consulting projects from being doomed to failure.
There is a presumption that human factors such as thoughtfulness and
social awareness will be valued, especially where even sociopolitical
struggles will have to be addressed by the most politically acceptable
solution. The consulting practitioner must adapt and prepare to work in
different cultural spheres (Chelliah, 2010, p. 140).
The involvement of a client ultimately defines the quality of the
service, as he or she is responsible for the success of the project in the
same way as the consultant (Kakabadse et al., 2006,p. 433 ; Martin, Jr. et
al., 2001 , p.142).
The old notion of consulting success hinging on analytical expertise
as well as the production of convincing reports is fast losing ground
especially with clients who have built in-house analytical expertise
(Turner, 1982).
Gabel (1996: 1176-1177) developed a descriptive measurement
model for consulting success that includes three areas of assessment:
(1) consultant’s recommendations, (2) client’s learning, and
(3) consultant’s performance or process. As a result, the author suggests
six dimensions for measuring consulting:
60
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Success: (1) client’s acceptance of consultant’s recommendations,
(2) client’s satisfaction with the recommendations, (3) client’s
understanding of the problem solution (i.e. learning), (4) client’s
satisfaction with the consultants level of understanding, (5) performance
reasonability; and (6) client’s satisfaction with the performance. It is
worthy of noting that the success of consulting projects heavily relies
on the client’s assessment and their satisfaction with both the suggested
problem solution and the interaction process between clients and
consultants.
Under the umbrella of ‘integrity and honesty’, several authors also
emphasize the importance of ethical behaviour such as the pragmatism
of the client’s time frames for projects, proper project scoping and
fair billing (Weiss, 2005; Thamhain, 2004; Bowers and Degler, 1999;
Kesner et al.,1997). Green (2006) and Appelbaum Steed (2004) add
the dimension of client focus to this mix. Client focus centres the
consultant’s ability to keep their focus on the client’s best interest and on
the relationship with the client
According to Stump and Longman (2000), trust in the context of
consulting is the willingness of clients to increase their vulnerability
with consultants in order to put themselves in a situation in which the
potential for loss is greater than that for gain if the consultant abuses
the client’s vulnerability (see also May 2004:). Further, May (2004: 21)
adds that three elements need to be balanced: consistency, competence
and caring. Consistency relates to behaviour that actively avoids
contradictory and hypocritical behaviour. For example, the consultant
may outwardly claim that the client’s welfare is paramount but in the
course of action he/she prescribes give the client the recommendation
of a path leading to unnecessarily high fees. Some of the protective
measures that can be used include:o Graduated rewards and penalties that can be enacted when there are
early indications of problems developing.
o Approaching a consultant’s superiors if performance is below
standard, and
o In extreme cases, a project can be terminated. Despite the cost, it may
be better to simply start again. But seek legal advice first (a case of
competition commission).
Possible Problems in a Consultancy
An exclusive approach by a consultant, is often characterised by the
‘just leave it all to us, we’ll fix it’ attitude. It is often accompanied by an
WHEN THINGS GO WRONG IN A CONSULTANCY
61
attitude that public servants do not really know what consultants do.
One symptom noted by an agency that experienced this attitude was
the persistently late arrival at meetings, a problem that was remedied by
protesting to the firm’s hierarchy.
Another result is a dismissive attitude by government agencies whose
staff often treat consultants with contempt. Treat consultants as you
would your own staff.
A breakdown in communication. Good consultants make a point of
meeting regularly with their client (at least once a week, but preferably
on a daily basis for some projects) in order to check with their client
that everything is proceeding satisfactorily. Not touching base with a
consultant or client may be a sign that things are not going well. Take
the initiative to re-establish contacts and find out how things are going
for early redress of any issues.
An extremely negative consequence from the consultant’s perspective
is when the client begins to ‘walk away’ from the job. Sometimes clients
claim that they have too much work, preventing them from taking a
direct interest, or suggest that the consultant ‘just get on with it yourself ’,
or find some other means of distancing themselves from the project.
This results in consultants beginning to worry about being able to realize
successful outcomes of their work.
Excessive library research. Too much general research may indicate
that a consultant does not have sufficient expertise in the area of the
contract. Consultants must have technical knowledge strong enough
to challenge clients in an appropriate manner while enriching the
client with relevant knowledge and ultimately earning their respect
(Merron, 2005; Kumar et al., 2000; Riley 1999; Bobrow, 1998; Kesner,
1997). According to Czerniawska (2006: 3), technical competence is an
“in-depth expertise with which a client is unfamiliar”, while Bergholz
(1999) describes technical knowledge as a competence that enables the
consultant to deliver the contracted outcomes for the client. Ford (1974)
cautions that consultants differ, like any other professional group, in the
quality of their technical competence and that the onus is on the client
to screen consultants for adequacy of their technical skills.
Excessive focus on producing a report rather than dealing with issues
or people is particularly relevant in choosing consultants to implement
programs that involve organisational change. Unless there is a shortage
of reports on your bookshelf, look for a consultant who is geared to
solving problems rather than just analysing them. Stumpf and Longman
(2000) propounds that quality work begins with dedication to solving
a problem rather than dedication to applying a method. In similar
62
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
vein to Handley et al (2006), some authors (Ozley and Armenakis,
2000; Scanlan, 2006), believe that having a wealth of experience is an
important factor in problem solving
Use of ‘guru language’. If a consultant suggests ‘leveraging off the
knowledge base to achieve optimal organisational alignment in a
contextual framework’, find one who uses plain English. Ford (1974)
associates problem solving with consultants’ ability to understand the
uniqueness of the client’s circumstances. He believes that this is where
consultants often fail because they readily view client situations based on
their experiences rather than factoring for the need to first understand
the uniqueness of each client.
Undue focus on the use of software or analytical package as the
primary means of analysing issues or solving problems should be
questioned. An analytical framework is essential in problem solving, but
consultants should beware the ‘package bender’ who only knows one
technique and tries to adapt it to every situation. A good check during
the selection process is to ask what alternative approaches could be used.
An overly eager willingness to drop the bid price during negotiations
may indicate that a consultant has difficulty in finding other work at
the bid price. Good, sought-after consulting firms will often refuse to
materially alter their bid price without also redefining the scope of the
project.
Staff nominated by the client to work alongside the consultant find it
difficult to contribute, because of their insufficient skills or because of
other work priorities. Unless alternative resources are made available to
the consultant, delay, or higher cost, is likely to impact a project.
A client, or a steering committee may focus on avoiding or postponing
taking decisions, or vacillate in providing ‘sign-off ’ as the stages of a
project are completed. There may also be persistent delays or regular
attempts to redefine the scope of the work by the client. Occasional
delays, or necessary redefinition of issues may be a good indication of a
high quality consultant. Once a client or a consultant has started to refer
to the provisions of the contract, the relationship is probably in serious
trouble.
Factors Contributing to Consulting Success
Rynning (1992) offers a tentative list of factors that contribute to
consulting ‘success’. These include clarity in need/problem formulation,
number/quality of new ideas, new knowledge, special planning, new
ways of thinking, the level of planning and co-operational abilities,
time management, planning capabilities, efficiency of project execution,
References
Appelbaum, S.H. and Steed, A.J. (2005), The Critical Success Factors
in the Client-Consulting Relationship, Journal of Management
Development Vol. 24, No.1 pp 68-93
Bell, R. and Nadler, L. (for author) Clients and Consultants: Meeting and
Exceeding Expectations. 2nd Edition. Gulf Publishing Company, Book
Division, Houston.
Berends, Hans, Reymen, Isabelle, Stultiëns, Rutger G., & Peutz, M.
(2011) External designers in product design processes of small
manufacturing firms. Design Studies, 32(1), 86-108
Bowers, W. and Degler, W. (1999), Engaging Engagements” Journal of
Management Consulting, Vol. 10, No. 4 pp 23-28
Bower, M. (1982), The forces that launched management consulting
are still at work”, Journal of Management Consultancy, Vol. 1 No. 1,
pp. 4-6.
Bruce, M., Cooper, R., & Vazquez, D. (1999) Effective design management
for small businesses, Design Studies, 20(3), 297-315
Burke, W., Clark, L. P., & Koopman, C. (1984) Improve your OD Project‘s
Chances for Success, Training & Development Journal, 38 (9), 62 -68
Caluwé, L. and Reitsma, E. (2010) “Competencies of Management
Consultants: A Research Study of Senior Management Consultants,” in
A.F. Buono & D.W. Jamieson (Eds.), Consultation for Organizational
Change. Charlotte, NC: Information Age Publishing, 2010, pp. 15-40.
Canback, S. (1999), “The logic of management consulting (part two)”,
Journal of management Consulting, Vol. 10 No. 3, pp. 3-12
64
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Canback, S. (1998), “The logic of management consulting (part one)”,
Journal of Management Consulting, Vol. 10 No. 2, pp. 3-11.
Chambliss, F. and Schutt, R. (2010) Making Sense of the Social World:
Methods of Investigation (3rd d.), Thousand Oaks, CA: Pine Forge
Press.
Chelliah, J. (2010). The Psychodynamics of the Client-Consultant
Relationship, International Journal of Business and Information,
5(2), 135-150
Dobes, L. (2006) Managing consultants: A practical guide for busy public
sector managers. ANU E Press, The Australian National University,
Canberra ACT 0200, Australia
Engwall, L. and Matthias K. (2002), Introduction: Management
consulting as a knowledge industry, in Matthias Kipping and Lars
Engwall (eds.), Management consulting: Emergence and dynamics of a
knowledge industry, Oxford: Oxford University Press, 1-16.
FIDIC (2011) Quality Based Consultant Selection Guide, International
Federation of Consulting Engineers, available on line at: http://
www.acec.ca/assets/pdf/advocacy_pdf/FIDIC_QBS_Guide_2012_
IAABAA.pdf accessed 25th october2016
Glen, P.(2002), “Healing Client Relationships: Common Pitfalls”
Consulting to Management Vol. 13, No. 1 pp 4–7.
Czerniawska, F.(2002), Value-Based Consulting, Palgrave, New York
Greenbaum, T. L. (1990) The Consultant’s Manual. New York: John Wiley
& Sons.
Greenfield, W.M. (1987) Successful Management Consulting: Building
a Practice with Smaller Company Clients, Prentice Hall, Englewood
Cliffs, New Jersey,.
Greiner, L. and Metzger, R. (1983), Consulting to Management, PrenticeHall, Englewood Cliffs, NJ.
Handley, K., Sturdy, A., Clark, T. and Fincham, R. (2006), “The Type of
Relationship Clients Really Want with Their Consultancies”, People
Management, vol. 12, no. 10,p. 52.
Hagedorn, H.J. (1982) “The anatomy of ideas behind a successful
consulting firm”, Journal of Management Consulting, Vol. 1 No. 1,
pp. 49-59
REFERENCES
65
Hakatie, A., & Ryynänen, T. (2006) Managing creativity: a gap analysis
approach to identifying challenges for industrial design consultancy
services, Design Issues, 23(1), 28-46.
Hicks, J. and Nair, P. (2009) If You Cannot Solve the Problem, Change
It! Techniques for Effective Problem Design, Journal of Practical
Consulting, Vol. 3 Issues. 2, 2009, pp. 14-21
Hoekstra, H.A. & van der Sluijs, E. (2003) Managing competencies:
Implementing human resource management. Assen, the Netherlands:
GITP, Van Gorcum
ILO (2002) Management Consulting: A Guide to the Profession (4th
Edition), International Labour Organisation
Kakabadse, N.K., Louchart, E., & Kakabadse, A. (2006). Consultant‘s
role: a qualitative inquiry from the consultant’s perspective. Journal
of Management Development, 25 (5), 416-500.
Kesner, I.F., Fowler, S., Rau, J., Fombrun, C., Schaffer, R. and Maister,
D.H. (1997), “When Consultants and Clients Clash.” Harvard
Business Review, vol. 75, no. 6,pp. 22-38
Kubr, M. (Ed.) (2002) Management consulting: a guide to the profession
(4th ed.). Geneva: International Labour Office
Leo Dobes () Managing Consultants: A Practical Guide for Busy Public
Sector Managers, Australia National University press
Lippitt, G., & Lippitt, R. (1994).The consulting process in action(2nd
ed.). San Diego, CA: Pfeiffer & Company
Margerison, Charles J. (1988) Managerial Consulting Skills: A Practical
Guide. Brookfield, VT: Gower Publishing Company.
Martin, Jr.,C. R., Horne, D. A., & Chan, W. S. (2001) A perspective
on client productivity in business-to-business consulting services.
International Journal of Service Industry Management, 12(2), 137157
McLachlin, R. D. (1999) Factors for consulting engagement success,
Management Decision, 37 (5), 94-404
Nadler, D. A. & Slywotzky, A. J. (2005): Strategy and Organization
Consulting. In
Greiner, L. & Poulfelt, F. (eds.): The Contemporary Consultant. Canada,
Thomson South-Western
66
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Nees, D.B. and Grenier, L.E. (1985), “Seeing behind the look-alike
management consultants”,Organizational Dynamics, Vol. 13, Winter,
pp. 68-79.
Poulfelt, F., Greiner, L. & Bhambri, A. (2005): The Changing Global
Consulting Industry. In Greiner, L. & Poulfelt, F. (eds.): The
Contemporary Consultant. Canada, Thomson South-Western
Preston, G. Smith C, and Merritt, G. (2002) Managing Consulting Project
Risk VOLUME 13, NO. 3 SEPTEMBER 2002http://Strategy2market.
Com/Wpcontent/Uploads/2014/05/Managing-Consulting-ProjectRisk.Pdf
Rynning, M. (1992), “Successful consulting with small and mediumsized vs large clients: meeting the needs of the client?”, International
Business Journal, Vol. 11 No. 1, pp. 47-60.
Schein, E.H. (1997), The concept of ‘client’ from a process consultation
perspective, Journal of Organizational Change Management, Vol. 10
No. 3, pp. 202-16.
Scott, W. Richard (1994), Conceptualizing organizational fields: Linking
organizations and societal systems, in H.-U. Derlien, U. Gerhardt, and
F. W. Scharpf (eds.), Systemrationalität und Partialinteresse, BadenBaden: Nomos, 203-221.
Staw, B. M. (1987). Knowing when to pull the plug,Harvard Business
Review,65 (2): 68-74
Sobel, A. (2004) 15 Pitfalls for the Client Advisor, Journal of Management
Consulting Vol. 15, No.3 pp 5–80
Stumpf, S.A. and Longman, R.A. (2000), “The Ultimate Consultant:
Building Long-Term, Exceptional Value Client Relationships, Career
Development International, vol. 5, no. 3,p. 124-33
Thamhain, H.J. (2004), “15 Rules for Consulting in Support of a Client
Project” Journal of Management Consulting Vol. 15, No.2 pp 42–46
Weiss, A. (2005), Why Good Clients Turn Bad Consulting to
Management Vol. 14, No.1 pp 25-27
World Bank 2011) Guidelines Selection and Employment Of Consultants,
The International Bank for Reconstruction and Development,
available on line http://www.ccchina.gov.cn/archiver/ccchinacn/
UpFile/Files/Default/20140630154837022031.pdf accessed 25th
October, 2016
Appendices
Appendix 1. Expression of Interest-Standard Forms
[Insert Name of Procuring Entity]
[Insert Logo]
[Insert bid identification number]
for
[Insert title or brief description of the project or consulting assignment]
Expression of Interest
Date: [insert date]
1. This invitation for expression of interest follows the General
Procurement Notice (GPN) which appeared in [insert media] Issue
no. [Insert the issue No.] dated [insert dates of issue of GPN].
2. The Government of the United Republic of Tanzania has set aside
funds for the operation of the [insert the name of the Procuring Entity
(PE)] during the financial year [insert the year under financing]. It is
intended that part of the proceeds of the fund will be used to cover
eligible payment under the contract for the [insert the name of the
contract].
Or
68
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
The [insert name of PE] received/has applied for/intends to apply for a
[loan/credit /grant] from the [name of financing institution] towards the
cost of [insert name of program/project], and it intends to apply part of
the proceeds of this [loan/credit/grant] to cover eligible payments under
the contract for [insert name of contract].
3. The [insert name of PE] now invites eligible [insert either “individual
consultants” or “firms”] to indicate their interest in providing the
services which include [insert brief description, and implementation
period].
4. Interested [insert either “individual consultants” or “firms”] must
provide information indicating that they are qualified to perform
the services by submitting consultant’s profile, description of
similar assignments, experience in similar conditions, availability of
appropriate skills among staff, etc. Consultants [insert either “may”
or “may not”] associate to enhance their qualifications.
5. A consultant will be selected in accordance with the procedures set
out in the Public Procurement Act No. 7 of 2011 and the Public
Procurement Regulations, 2013 – Government Notice No. 446
(hereinafter called Procurement Regulations).
6. Selection will be conducted through the [insert either “Quality
based” or “Quality and Cost based” or “Least Cost” or “Fixed Budget”
or “Consultants Qualification” or “individual”] selection procedures
specified in the Public Procurement Regulations.
7. Interested eligible consultants may obtain further information
from the office of the [Insert the Physical, postal address or e-mail
address of the Tender Board Secretary of the PE] from [start and end
of working hours] on Monday to Friday inclusive except on public
holidays.
8. Expressions of Interest (EoI) must be delivered to the address below
[state physical address at the end of document] at or before [insert
time and date].
9. Late Expressions of Interest shall not be accepted for evaluation
irrespective of the circumstances.
[insert the tittle of the Accounting Officer and address of the PE]
APPENDICES
69
Appendix 2: 5A. Technical Proposal - Standard Forms
[Comments in brackets [ ] provide guidance to the short listed
Consultants for the preparation of their Technical Proposals; they should
not appear on the Technical Proposals to be submitted.]
5A1 Technical Proposal Submission Form
5A2 Consultant’s Organization and Experience
a.
Consultant’s Organization
b.
Consultant’s Experience
5A3 Comments or Suggestions on the Terms of Reference and on
Counterpart Staff and Facilities to be provided by the Client
a.
On the Terms of Reference
b.
On the Counterpart Staff and Facilities
5A4 Descriptions of the Approach, Methodology, and Work Plan for
Performing the Assignment
5A5 Work Schedule
5A6 Team Composition and Task Assignments
5A7 Staffing Schedule
5A8 Curriculum Vitae (CV) for Proposed Professional Staff
5A9 Proposal Securing Declaration
70
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Form 5A1: Technical Proposal Submission Form
[Location, Date]
To:
[Name and address of Client]
Dear Sirs:
We, the undersigned, offer to provide the consulting services for
[Insert title of assignment] in accordance with your Request for Proposal
dated [Insert Date] and our Proposal. We are hereby submitting our
Proposal, which includes the Technical Proposal, and the Financial
Proposal sealed under two separate envelopes.
We are submitting our Proposal in association with: [Insert a list with
full name and address of each associated Consultant, also specify, whether
they are in joint venture or sub consultancy].
If negotiations are held during the period of validity of the Proposal,
i.e., before the date indicated in Clause Reference 25 of the Proposal
Data Sheet, we undertake to negotiate on the basis of the proposed
staff. Our Proposal is binding upon us and subject to the modifications
resulting from Contract negotiations.
We undertake, if our Proposal is accepted, to initiate the consulting
services related to the assignment not later than the date indicated in
Clause Reference 49 of the Proposal Data Sheet.
We also confirm that the Government of the United Republic of
Tanzania has not declared us, or any sub consultants for any part of
the Contract, ineligible on charges of engaging in corrupt, fraudulent,
collusive or coercive practices. We furthermore, pledge not to indulge
in such practices in competing for or in executing the Contract, and
we are aware of the relevant provisions of the Proposal Document (ITC
Clause 3).
We understand you are not bound to accept any Proposal you receive.
We remain,
Yours sincerely,
Authorised Signature
[in full and initials]
Name and title of Signatory
Name of Firm
Address
APPENDICES
71
Form 5A2: Consultant’s Organization and Experience
Consultant’s Organisation
[Provide here a brief description (maximum two pages) of the background
and organization of the Consultant]
Consultant’s Experience
Major Work Undertaken during the last ten years that best
illustrates qualifications
[using the format below, provide information on each assignment for
which your firm was legally contracted for carrying out consulting services
similar to the ones requested under this assignment.]
Assignment name:
Country:
Assignment Location within country:
Duration of assignment
(months):
Name of Client:
Professional Staff provided by
your Organisation:
Start Date
Completion Date
(Month/Year)
(Month/Year)
Name of associated Consultants, if any:
No of Staff:
No of Person-Months
No of Person-Months of
Professional Staff provided by
associated Consultants:
Name of Senior Staff (Project Director/Coordinator, Team Leader) Involved
and Functions Performed:
Detailed Narrative Description of Project:
Detailed Description of Actual Services Provided by your Staff:
Firm’s Name:
Authorised Signature:
72
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Form 5A3: Comments and Suggestions on the Terms of
Reference and on Counterpart Staff and Facilities to be
Provided by the Client
On the Terms of Reference
[Present and justify here any modifications or improvement to the Terms
of Reference you are proposing to improve performance in carrying out
the assignment (such as deleting some activity you consider unnecessary,
or adding another, or proposing a different phasing of the activities
or proposing an alternative method of undertaking the work). Such
suggestions should be concise and to the point, and incorporated in your
Proposal.]
On Counterpart Staff and Facilities
[Comment here on counterpart staff and facilities to be provided by the
Client according to Clause Reference 21.1 of the Proposal Data Sheet
including: administrative support, office space, local transportation,
equipment, data, etc.]
APPENDICES
73
Form 5A4: Description of Approach, Methodology and
Work Plan for Performing the Assignment
[Technical approach, methodology and work plan are key components
of the technical proposal. It is suggested that you present your technical
proposal divided into the following three chapters:
–
Technical Approach and Methodology,
–
Work Plan, and
– Organization and Staffing.
a) Technical Approach and Methodology. Here you should explain
your understanding of the objectives of the assignment, approach
to the services, methodology for carrying out the activities and
obtaining the expected output, and the degree of detail of such
output. You should highlight the problems being addressed and
their importance, and explain the technical approach you would
adopt to address them. You should also explain the methodologies
you propose to adopt and highlight the compatibility of those
methodologies with the proposed approach, (e.g., the methods of
interpreting the available data; carrying out investigations, analyses,
and studies; comparing alternative solutions). This section should
incorporate any modifications to the TORs proposed by you. In
case the TORs require the Consultant to provide a quality plan and
carry out the assignment according to its provisions, an outline of
the quality plan (e.g., its list of contents) should be included in the
technical proposal.
b) Work Plan. Here you should propose the main activities of the
assignment, their content and duration, phasing and interrelations,
milestones (including interim approvals by the Client), and
delivery dates of the reports. The proposed work plan should be
consistent with the technical approach and methodology, showing
understanding of the TORs and ability to translate them into
a feasible working plan. A list of the final documents, including
reports, drawings, and tables to be delivered as final output, should
be included here. The work plan should be consistent with the
Work schedule of Form 5A5.
c) Organization and Staffing. In this section you should propose
the structure and composition of your team. You should list the
main disciplines of the assignment, the key expert responsible, and
74
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
proposed technical and support staff. The roles and responsibilities
of professional staff should be set out in job descriptions. In case
of association, this section should indicate how the duties and
responsibilities will be shared. The organization and staffing will be
reflected in the Team Composition and Task Assignments of Form
5A6, and the Staffing schedule of Form 5A7. An organization chart
illustrating the structure of the team and its interfaces with the
Client and other institutions involved in the project also should
be provided.]
APPENDICES
75
Form 5A5: Work Schedule
No Activity1
Months2
1
2
3
4
5
6
7
8
9
10
11
12
n
1
2
3
4
5
n
1 Indicate all main activities of the assignment, including delivery of reports (e.g.:
inception, interim, and final reports), and other benchmarks such as Client approvals. For
phased assignments indicate activities, delivery of reports, and benchmarks separately for
each phase.
2 Duration of activities shall be indicated in the form of a bar chart. Months are counted
from the start of the assignment.
76
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Form 5A6: Team Composition and Task Assignments
Professional Staff
Name of Staff Firm/
Area of
Organisation Expertise
Position
Assigned
Task
Assigned
APPENDICES
77
Form 5A7: Staffing Schedule
Total staff-month
input
Staff-month input by month1
No
Name
of Staff 1 2 3 4 5 6 7 8 9 10 11 12 n Home Field2 Total
1
n
Total
1 For Professional Staff the input should be indicated individually; for Support Staff it
should be indicated by category (e.g.: draftsmen, clerical staff, etc.).
2 Months are counted from the start of the assignment. For each staff member indicate
separately staff-month input for home and field work.
78
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Form 5A8: Curriculum Vitae (CV) for Each Proposed
Professional Staff
1
PROPOSED
POSITION FOR
THIS PROJECT
[From the Terms of Reference, state the position
which the Consultant will be engaged. Only one
candidate shall be nominated for each position].
2
NAME OF PERSON [state full name]
3
DATE OF BIRTH
4
NATIONALITY
5
MEMBERSHIP IN
PROFESSIONAL
SOCIETIES
[state rank and name of society and year of attaining
that rank].
6
EDUCATION:
[list all the colleges/universities which the consultant
attended, stating degrees obtained, and dates,
and list any other specialised education of the
consultant].
7
OTHER TRAINING [indicate significant training since degrees under
EDUCATION were obtained, which is pertinent to
the proposed tasks of the consultant].
8
LANGUAGES
Language
Speaking
e.g. English Fluent
9
Reading
Writing
Excellent
Excellent
COUNTRIES
OF WORK
EXPERIENCE
10 EMPLOYMENT
RECORD
[starting with
position list in
reverse order every
employment held
and state the start
and end dates of
each employment]
EMPLOYER 1
[The Consultant should clearly distinguish whether
as an “employee” of the firm or as a “Consultant” or
“Advisor” of the firm].
[The Consultant should clearly indicate the Position
held and give a brief description of the duties in
which the Consultant was involved].
FROM:
TO:
[e.g. January 1999]
[e.g. December 2001
APPENDICES
79
EMPLOYER 2
FROM:
TO:
EMPLOYER 3
FROM:
TO:
EMPLOYER 4 (etc)
FROM:
TO:
11 WORK
UNDERTAKEN
THAT BEST
ILLUSTRATES
YOUR
CAPABILITY TO
HANDLE THIS
ASSIGNMENT
[give an outline of experience and training most
pertinent to tasks on this assignment, with degree
of responsibility held. Use about half of a page A4].
CERTIFICATION [Do not amend this Certification].
I, the undersigned, certify that to the best of my knowledge and belief,
this CV correctly describes myself, my qualifications, and my experience.
I understand that any wilful misstatement described herein may lead to
my disqualification or dismissal, if engaged.
Name of Expert
Signature
Date
Name of authorized
Signature
Date
Representative of the
Consultant
(the same who signs the
Proposal)
{day/month/year}
80
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Appendix 2: Form 5A9: Proposal Securing Declaration
Form
Date: [insert date (as day, month and year)]
Tender No.: [insert number of tendering process]
Alternative No.: [insert identification No if this is a Tender for an
alternative]
To: [insert complete name of Procuring Entity]
We, the undersigned, declare that:
We understand that, according to your conditions, proposals must be
supported by a Proposal Securing Declaration.
We accept that we will automatically be suspended from being eligible
for tendering in any contract with the Procuring Entity for the period
of time as determined by the Authority if we are in breach of our
obligation(s) under the tender conditions, because we:
a) have withdrawn our proposal during the period of Proposal
validity specified in the Form of Tender; or
b) having been notified of the acceptance of our Proposal by the
Procuring Entity during the period of Proposal validity, (i) fail or
refuse to execute the Contract, if required, or (ii) fail or refuse to
furnish the Performance Security, in accordance with the ITC 48.
We understand this Proposal Securing Declaration shall expire if we
are not the successful Consultant, upon the earlier of (i) our receipt of
your notification to us of the name of the successful Consultant; or (ii)
twenty-eight days after the expiration of our Proposal.
Signed: [insert signature of person whose name and capacity are shown]
In the capacity of [insert legal capacity of person signing the Proposal
Securing Declaration].
Name: [insert complete name of person signing the Proposal Securing
Declaration]
APPENDICES
81
Duly authorized to sign the Proposal for and on behalf of: [insert
complete name of Consultant]
Dated on ____________ day of __________________, _______ [insert
date of signing]
Corporate Seal (where appropriate)
82
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
5B. Financial Proposal - Standard Forms
[Comments in brackets [ ] provide guidance to the short listed
Consultants for the preparation of their Financial Proposals; they should
not appear on the Financial Proposals to be submitted.]
[Forms 5B1 to 5B5 are to be used for the preparation of the Financial
Proposal according to the instructions provided under Clause 19 of the
Information to Consultants. Such Forms are to be used whichever is the
selection method indicated in Clause 1.1 of the Proposal Data Sheet]
5B1
Financial Proposal Submission Form
5B2
Summary of Costs
5B3
Breakdown of Staff Remuneration
5B4
Breakdown of Reimbursable expenses
5B5
Breakdown of Taxes
APPENDICES
83
Form 5B1: Financial Proposal Submission Form
[Location, Date]
To:
[Name and address of Client]
Dear Sirs:
We, the undersigned, offer to provide the consulting services for [Insert
title of assignment] in accordance with your Request for Proposal dated
[Insert Date] and our Technical Proposal. Our attached Financial
Proposal is for the sum of [Insert amount in words and figures]. This
amount is exclusive of local taxes, which we have estimated at [insert
amount in words and figures].
Our Financial Proposal shall be binding upon us subject to the
modifications resulting from Contract negotiations, up to expiration
of the validity period of the Proposal, i.e. before the date indicated in
Clause Reference 25 of the Proposal Data Sheet.
Commissions and gratuities, if any, paid or to be paid by us to agents
relating to this Proposal and Contract execution, if we are awarded the
Contract, are listed as follows:
Name and Address of
Agents
Amount
Purpose of commission
or gratuity
We also declare that the Government of the United Republic of
Tanzania has not declared us, or any sub-Consultants for any part of
the Contract, ineligible on charges of engaging in corrupt, fraudulent,
collusive, or coercive practices. We furthermore, pledge not to indulge
in such practices in competing for or in executing the Contract, and
are aware of the relevant provisions of the Proposal Document (ITT
Clause 3).
We understand you are not bound to accept any Proposal you receive.
Signed:
In the capacity of:
Duly authorised to sign the proposal on behalf of the Applicant
Date:
84
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Form 5B2: Summary of Costs
Cost Component
Costs
Staff Remuneration (1)
Reimbursable Expenses (1)
Sub-Total
Local Taxes (1)
1# Staff Remuneration, Reimbursable Expenses and Taxes must coincide with relevant Total
Costs indicated in Forms 5B3, 5B4 and 5B5.
APPENDICES
85
Form 5B3: Breakdown of Staff Remuneration
Name1
Staff-month
Position2
Rate3
Input3
(Staffmonths)
[Indicate Sub Cost for
each staff]4
Staff
Head Office
Field
Total
Costs
1 Professional Staff should be indicated individually; Support Staff should be indicated per
category (e.g.: draftsmen, clerical staff).
2
Positions must coincide with the ones indicated in Form 5A7.
3 Indicate the total expected input of staff and staff-month rate required for carrying out
the activity indicated in the Form.
4
For each staff indicate the remuneration. Remuneration = Staff-month Rate x Input.
86
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Form 5B4: Breakdown of Reimbursable Expenses
N° Description1
Unit Unit Cost2 Quantity [Indicate sub cost
for each item]3
Per diem allowances
Day
Travel expenses
Trip
Communication
costs between [Insert
place] and [Insert
place]
Drafting,
reproduction of
reports
Equipment,
instruments, etc.
materials, supplies,
etc.
Use of computers,
software
Laboratory tests.
Subcontracts
Other transportation
costs
Office rent, clerical
assistance
Others (specify)
Total Costs
1 Delete items that are not applicable or add other items according to Clause 19.1 of the
Proposal Data Sheet.
2
Indicate unit cost.
3
Indicate the cost of each reimbursable item. Cost = Unit Cost x Quantity.
APPENDICES
87
Form 5B5: Breakdown of Taxes
No.
Description1
Unit
Unit
Cost 2
Quantity
1.
Describe any relevant tax or taxes
2.
Indicate Unit Cost
3.
Indicate Cost of each item: Unit Cost x Quantity
[Indicate cost for
each item]3
88
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
5C. Contract Agreement
This CONTRACT (hereinafter called the “Contract”) is made the [insert
day] day of the month of [insert month], [insert year], between, on the
one hand, [insert name of client] (hereinafter called the “Client”) and,
on the other hand, [insert name of Consultant] (hereinafter called the
“Consultant”).
[Note: If the Consultant consists of more than one entity, the above
should be partially amended to read as follows: “… (hereinafter called the
“Client”) and, on the other hand, a joint venture consisting of the following
entities, each of which will be jointly and severally liable to the Client for
all the Consultant’s obligations under this Contract, namely, [insert name
of Consultant] and [insert name(s) of other Consultant(s)] (hereinafter
called the “Consultant”).]
WHEREAS
a) the Client has requested the Consultant to provide certain
consulting services as defined in this Contract (hereinafter called
the “Services”);
the Consultant, having represented to the Client that they have the
required professional skills, and personnel and technical resources,
have agreed to provide the Services on the terms and conditions
set forth in this Contract; and
the Client has received a credit/ loan/ grant from [insert name of
development partner] towards the cost of the services under this
Contract, it being understood (i) that payments by the development
partner will be made only at the request of the Client and upon
approval by the development partner, (ii) that such payments
will be subject, in all respects, to the terms and conditions of the
agreement between the development partner and the Client. [delete
this Clause if not applicable].
NOW THEREFORE the parties hereto hereby agree as follows:
1. The following documents forming the integral part of this Contract
shall be interpreted in the order of priority shown:
a) The Form of Contract;
b) The Special Conditions of Contract (SCC);
c) The General Conditions of Contract (GCC),
d) The Appendices (1 to 9).
APPENDICES
89
[Note: If any of these Appendices are not used, the words “Not Used”
should be inserted next to the title of the Appendix]
Appendix 1:
Description of the Services
Appendix 2:
Reporting Requirements
Appendix 3:
Personnel and Sub Consultants
Appendix 4:
Hours of Work for Personnel
Appendix 5:
Duties of the Client
Appendix 6:
Cost Estimates
Appendix 7:
Form of Bank Guarantee for Advance Payment
Appendix 8:
Performance Bank Guarantee [Unconditional]
Appendix 9: Performance Bond
2. The mutual rights and obligations of the Client and the Consultant
shall be as set forth in the Contract, in particular:
a) the Consultant shall carry out the Services in accordance with
the provisions of the Contract; and
b) the Client shall make payments to the Consultant in
accordance with the provisions of the Contract.
IN WITNESS WHEREOF, the Parties hereto have caused this Contract
to be signed in their respective names as of the day and year first above
written.
For and on behalf of [name of Client]
___________________________________
[Authorized Representative]
For and on behalf of [name of Consultant]
___________________________________
[Authorized Representative]
90
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
[Note: If the Consultant consists of more than one entity, all these entities
should appear as signatories, e.g., in the following manner:]
For and on behalf of each of the Members of the Consultant
[name of member]
___________________________________
[Authorized Representative]
[name of member]
___________________________________
[Authorized Representative]
APPENDICES
91
Section 6: Terms of Reference
The Terms of Reference (TOR) is the key document in the RFP. It explains
the objectives, scope of work, activities, tasks to be performed, respective
responsibilities of the Client and the Consultant, and expected results and
deliverables. Adequate and clear TOR ore essential for the understanding
of the assignment and its correct execution by the Consultant. It also helps
reducing the risk of ambiguities during the preparation of proposals by the
Consultant, contract negotiation, and execution of the services.
Terms of Reference normally contain the following sections:
• Background of the project;
• Objectives of the assignment;
• Scope of Services;
• Transfer of Knowledge (training) (when appropriate);
• List of reports, Schedule of deliveries, period of performance;
• Data, personnel, facilities and local services to be provided by
the Client, and
• Institutional arrangements
92
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
Section 7: Undertaking by Consultant on Anti – Bribery
Policy / Code of Conduct and Compliance Programme
Each Consultant must submit a statement, as part of the tender
documents, in either of the two given formats which must be signed
personally by the Chief Executive Officer or other appropriate senior
corporate officer of the tendering company and, where relevant, of its
subsidiary in the United Republic of Tanzania. If a tender is submitted by
a subsidiary, a statement to this effect will also be required of the parent
company, signed by its Chief Executive Officer or other appropriate
senior corporate officer.
MEMORANDUM (Format 1)
UNDERTAKING BY CONSULTANT ON ANTI – BRIBERY POLICY
/ CODE OF CONDUCT AND COMPLIANCE PROGRAMME
(Made under Regulation 78 (2)) of the Public Procurement (Selection
and Employment of Consultants) Regulations, 2013 - Government
Notice No. 446 of 2013)
I_____________________(name of Consultant) places importance
on competitive tendering taking place on a basis that is free, fair,
competitive and not open to abuse. I am pleased to confirm that I will
not offer or facilitate, directly or indirectly, any improper inducement
or reward to any public officer, their relations or business associates, in
connection with my proposal, or in the subsequent performance of the
contract if I am successful.
I have an Anti-Bribery Policy/Code of Conduct and a Compliance
Program which includes all reasonable steps necessary to assure that I
comply to the No-bribery commitment given in this statement, as well
as by all third parties working with me on the public sector projects,
or contract including agents, consultants, consortium partners, subcontractors and suppliers. Copies of the Anti-Bribery Policy/Code of
Conduct and Compliance Program are attached
Authorized Signature: ______________________________________
____________________________________
APPENDICES
93
Name and Title of Signatory: _________________________________
_____________________________________
Name of Consultant: _______________________________________
_____________________________________
Address: _________________________________________________
_____________________________________
94
MANAGING CONSULTANCY SERVICES: A TANZANIAN PERSPECTIVE
MEMORANDUM (Format 2)
UNDERTAKING BY CONSULTANT ON ANTI – BRIBERY POLICY
/ CODE OF CONDUCT AND COMPLIANCE PROGRAMME
(Made under Regulation 78(2) of the Public Procurement (Selection
and Employment of Consultants) Regulations, 2013 - Government
Notice No. 446 of 2013)
I _____________________ (name of consultant) have issued, for the
purposes of this proposal, a Compliance Program copy attached - which
includes all reasonable steps necessary to assure that I will comply to
the No-bribery commitment given in this statement, as well as by all
third parties working with me on the public sector projects or contract
including agents, consultants, consortium partners, subcontractors and
suppliers’)”
Authorized Signature: ______________________________________
_____________________________________
Name and Title of Signatory: _________________________________
______________________________________
Name of Consultant: _______________________________________
______________________________________
Address: _______________________________