BUSINESS

DEVELOPMENT

Consultancy and Development Management

IMT Ghaziabad
3 October 2017
 CONTENTS
• Introduction to the Sector
• Business Development
• Key Players
Take time to deliberate; but
• Stages when time for action arrives,
• Early Intelligence stop thinking and go in…

• Expression of Interest
• Technical & Financial Proposal
• Contract negotiation with client
• Team Mobilisation and Sub-
contracting
 INTRODUCTION TO
THE SECTOR
Aimed at achievement of
Sustainable Development Goals

• International Development –
Official Development Assistance
• National and State Government
funded development programmes
• Philanthropic (foundation) funded
programmes
• Private Sector (CSR) funded
programmes
ODA
ODA is defined as government
aid designed to promote the USD 143.33 billion
economic development and disbursed in 2016-17; 5-7%
for consulting services
welfare of developing countries.
http://www.oecd.org/dac/financing-
sustainable-development/development-
finance-data/
NATIONAL AND
STATE
GOVERNMENTS

Special outlays for Design, Project

Management and Monitoring &
Evaluations
 PHILANTHROPIC
FOUNDATIONS
USD 5-6 billion per year in direct
support
• Bill & Melinda Gates Foundation (2009) –
$3.05 billion
• Open Society Foundations (2009) – $683
million
• Ford Foundation (2010) – $520 million
• William and Flora Hewlett Foundation
(2010) – $358 million
• Children’s Investment Fund Foundation
(2010) – $214 million
• United Nations Foundation (2009) – $108
million
• John D. and Catherine T. MacArthur
Foundation (2010) – $230 million
• Conrad N. Hilton Foundation (2010) –
$100.1 million
• Rockefeller Foundation (2009) – $136
million
• Gordon and Betty Moore Foundation
(2009) – $178.4 million
CSR INITIATIVES
In 2015-16:

Total CSR 2% Spend Mandate (Top 30) INR 4401 crores

Actual CSR Spend INR 3765 crores 83%
 BUSINESS DEVELOPMENT
Business development is the creation of long-term value for an organization from customers,
markets, and relationships.

Business development entails tasks and processes to develop and

implement growth opportunities within and between organizations.
 KEY PLAYERS IN BUSINESS
DEVELOPMENT

Great things in business are

never done by one person. They
are done by a team of people.
- Steve Jobs

Business Development
They are the task owners
but essentially a support Programme Manager
function…can bring
Strategic Thinking to the
They are your first client.
table…
What you win they
Technical Expert implement. They are your
sales team in true sense.
Essentially they are your Understanding their needs
product and only they can and constraints is key…
tell how to market them and
their ideas…
 STAGES IN BUSINESS
DEVELOPMENT
Its a painful process…requires loads of research and only 10% of your efforts reach detailed
proposal stage and if you are lucky you win 2-3%…

100 30 10
Technical and
Expression of
Early Intelligence Financial
Interest
Proposal
STAGE 1: EARLY
INTELLIGENCE

Tracking and Understanding

Opportunities - Pipeline While you may be operating
Development at capacity, don’t neglect
your sales pipeline;
Opportunity Tracking Business Development is a
slow process, plan smartly
Competitive Landscape

Decision to Drop/Track

Possible Partnerships
 STAGE 1: EARLY
INTELLIGENCE
Half your prospects are won at this stage
Opportunity Identification
- Track websites like Devex.com,
Review Donor Country Plans, make
BD visits to areas with potential for
work, etc.
- Liaison with clients, hold regular
meetings to understand future work
Competitive Landscape
- Identify other firms likely to or
following the opportunity
- Identify your strengths and
weaknesses
Decision to Track/Drop
- Evaluate on fixed set of
parameters
- Discuss during weekly BD
meeting and specify responsibility
to track/follow-up
- Decide on next course of action
Partnerships
- Identify and start discussions
with potential partners
(international/local)
- Identify individuals who would
add value to your proposal
 STAGE 2:
EXPRESSION OF
INTEREST

Pre-qualification / Short List Do the things that interest

you and do them with all
• Opportunity Identification your heart
• Decision to Bid or Drop
• Work out draft team composition
and budget
• Need for Partner
• Identification of Inhouse and
External CVs
• Fact Finding Mission
• Preparation and Submission of EoI
 STAGE 2: EXPRESSION OF
INTEREST

What goes into an

Expression of Interest

- Organisational Data
- Legal,
- Financial,

99% -
- HR,
- Policies, etc.
Relevant Past Experience
80%
Opportunities are Projects go to the next
- Specific Q&A
advertised stage
- Proposed Approach
Most organisations 20% get dropped due
have thresholds of - Firm Partnerships
to lack of funding,
around USD 100,000 - Possible Team approvals, project
above which projects - References delays, etc.
are advertised on their - Certification and Awards
websites, news papers,
UN Development
Business, Devex,
Devaid, etc.
STAGE 3: TECHNICAL
AND FINANCIAL
PROPOSAL
Your opportunity to drive
development!!
Simple Rule: Quality is the
• Review of the RFP Best Business Proposal
• Raise Queries
• Partner Finalisation
• Team composition and draft budget
• Fact Finding Mission
• Finalisation of Team
• Approach and Methodology
• Work Plan
• Preparation of Financial Proposal
• Quality Assurance
• Submission and Follow-up
 RFP DOCUMENT
Typical Contents

• Invitation Letter
• Guidelines for Submission of
Proposal
• Terms of Reference + LogFrame
• Data Sheet
• Submission Date and Address
• Currency and Budget
• Pre-Bid Conference, if any
• Queries Deadline
• Type of Proposal (FTP, STP, BTP)
• Page limits, if any.
• Evaluation Criteria and Weight-
ages (QCBS, FCS, QBS, etc.)
• Forms and Formats - Technical
and Financial
• EMD and Bank Guarantee
Requirements
• Draft Contract Document
 FACT FINDING
MISSION

Allowed in some; not allowed in

most!!

• Visit Project Cities

• Meet Key Stakeholders
• Assess client preferences

None the less, necessary for:

• Meeting with partners
• Meeting with potential team
members
• Assessing local costs and
logistics
 APPROACH AND
METHODOLOGY

Key Components

• Comments on ToR
• Understanding of Context
• Guiding Principles of the
Approach
• Understanding of Theory of
Change/ Log Frame
• Proposed Methodology
• Tools to be used
• Risk and Mitigation Measures
• Quality Assurance Mechanism
• Duty of Care
 WORK PLAN

Plan your work and work your

plan

• As granule as possible
• Detailed activities and sub-
activities
• Match with Staff Inputs
• Clear Deliverable Schedule
• Keep some margin for things
beyond your control…
TEAM FINALISATION

Its a People’s Business

• Project Governance Mechanism

• Appropriateness of Project
Director and Team Leader
• Responsibility for Day to Day
Programme Management
• How team work across Partners
• Skill and Gender Mix of Team
• Local Team Members and
Language Skills
• Past experience of working
together
• Staff Retention Strategy
• Letters of Association
 FINANCIAL
PROPOSAL
Cost is Critical
• Staff Inputs
• Benchmarking and Methodology
• Loaded Fee Rates
• Open Book Accounting
• Base Cost
• Social Cost
• Overheads
• Profit Margin/Management Costs
• Out of Pocket Expenses
• Travel Costs (Airfares, Hotels, Guest
House, Per diems)
• Equipment Costs (long term projects)
• Office Running Expenses (Rentals,
Operations)
• Printing and Stationary
• Communication
• Security and Duty of Care
• Mapping of costs to Deliverables
• Payment by Results Methodology
• Value for Money Proposition
• Financing Plan
 QUALITY
ASSURANCE

Spell Check!!

• Layout and Formatting - visual

appeal
• Adherence to Page Limits/Forms
and Formats
• Appropriateness of language
• Responsiveness to Terms of
Reference
• Safeguarding profit margins
 SUBMISSION AND
FOLLOW-UP

Time is of essence!!

• Increasingly online submissions -

things can go wrong at last
moment, so need to upload in
time
• Even in hard copy submissions,
courier services can be a pain
• Follow-ups are usually not
allowed, but can email the Project
officer and check status formally
• If called for presentation, then
take the team along!!
 CONTRACT
NEGOTIATIONS
Client is/has right!!

• Usually around technical approach

and small shifts
• Sometimes may ask for team
Its all about Give and Take!!
member changes
• Inputs
• Replacement
• Good time to propose your changes
- give and take
• Occasionally on financials as well -
budget constraints/value for money
• Appreciate clients perspective
• Present your rationale
• Don't budge on everything the
client asks for
• Achieve a middle ground
• Little levy can go a long way
TEAM MOBILISATION
AND SUB-
CONTRACTING
Always need to start yesterday!!

• Inform partners and team members

as soon as result is announced and BD Role Ends and
Programme Management
re-check availability Takes over
• Conduct Due Diligence (KYC) and
Negotiations at Proposal Stage only
• Have clear pre-bid agreements with
partners
• Have written compensation
discussions with free lance
consultants
• Share draft contracts at proposal
stage
• Work with Project Management
Team for issue of sub-contracts and
hand over for project
implementation
 THANK
YOU

Himanshu Sikka
Chief Strategy and Diversification Officer
IPE Global Limited
Email: hsikka@ipeglobal.com
www.ipeglobal.com