Step 1- Brainstorming and identification

The definition of a new service usually starts with gathering ideas by screening research products and best practice technologies that might be interesting for out-scaling, such as scalable technologies or training courses.  rvice such as scalable technologies and training material  and best practice examples that might be he initial stage when expertsservice is the art to elaborate a standard workflow that produce a desired output at a fixed price.  The price is determined on the basis of the prices of the local economy. Services definition produces a so called service template. It is used for the provision of standardised routine services for out-scaling. In the process desired outputs are transformed into products, which are negotiable in the real economy. Thus, the result of an investment becomes predictable in terms of scope and scale.

Services templates are designed by experts in exchange with involved service providers according to the steps below. Templates are documented on the AfricaRice wiki.

Step 1- Conception

Services are usually part of a project that requires different outputs to achieve a desired result / to reach a specific goal. Most outputs of a project can be produced by a corresponding service. It is recommended to list the various services that are required to complete the project and to outline a corresponding budget before starting with the definition of a particular service.Simplicity, evaluation of demand and the estimation of potential benefits are key factors of success.

Step 2 - General description of service

The description should comprise the following points:

Name of the service: The name should indicate the product that is delivered to the final beneficiary.

Justification / Problem statementRationale: Information that justifies the investment. It describes the problem that the service addresses in the context of the goal of the action / project.

Objective / Purpose: Explaining how the service will contribute to the solution of the problem and what effect it will have on the performance of the action.

Target group: List of primary and secondary beneficiaries.

Primary beneficiary: The individual to whom the service will be delivered and who is entitled to make request for service. Selection criteria must be indicated.

Outputs: List of measurable and tangible results (e.g. products & services ) and to whom they that are delivered (see target group)to the beneficiary.

Expected OutcomesBeneficiary: List Denomination of expected outcomes for the various stakeholders that are considered in the action (e.g. all actors in the innovation system) and secondary effects.

Performance indicators: List of indicators for assessing the effectiveness and efficiency of the service in quantitative and qualitative terms.

the person (this might be an individual or an organisation) entitled to benefit form the service.

Selection criteria: Description of the criteria for the identification of a beneficiary.

Price: The price of the serviceBudget: Total budget available

Step 3 - Define a

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work-flow

Services consist of a set of subsequent tasks that are organised in a work-flow towards a specific output. It is recommended to start at the end to assure a clear focus on the result. To make sure From experience it is best to start from the end They require the They usually require the involvement of various agents with complementary professional and social skills. Each task includes one or several activities that are carried out by a single agent without having to interact with another agent. All services must comprise four basic tasks: 1. the publication of the request, 2. the publication of the response and 3. the publication of the results of the evaluation by the primary beneficiary and 4. controlling. Controlling includes monitoring of progress,  up-dating of the accounting  and payment of agents. To ensure the quality of the information and fairness, it is advisable to entrust these basic tasks to people who take no other tasks in the work process It is recommended to start from the end and to think of the last task first in order to keep a clear focus on the result.

Step 4 - Definition of tasks

All tasks are defined according to the following structure:

Title: A simple name of the task indicating the main activity.

Activities and instructions- Activities: Description of the activities that have to be carried out by a task manager.Task Agent in order to complete the task. It comprises the description of the methodology, rules and regulation, which have to be observed.

Deliverable: This is a list of the products that must result from the task - Deliverable: It is the description of the result of a task that is handed over to the next task manager within a work flow. The description must specify the results / products in quantitative and qualitative terms.- Proof: The evidence that the result was

Source of verification: For each task a source and the modalities to verify the completion of the task must be indicated.

Task agent: Specification of the type of person(s) or organisation(s) delivered indication the source of verification. This is usually a link to a information system on the internet.  - Agent: The person or organization that carries out the task. For each agent In includes the description of the required professional and social skills must be defined.

- ExpensesExpenditures: Detailed quantification of resources that are required on average to carry out the task  (e.g. working hours, material, consumables, transport, …).task. The different cost item are classified according in the following categories:   transport, stationary, travel, casual labour, small equipment, communication and miscellaneous. For each cost item it will be indicated if the costs are covered by the project or by third parties. Cost items are grouped by those that are paid for by the project and those that are covered by third party contributions (in-kind) (see also 2.7 pricing of services below).

Honorarium: The amount that is paid to the Task Agent once he has completed the task.

- Duration: Time during which the task must be completed.

Step 5 - Elaborate instructions

This It is the description of the methodology, rules and regulation according to , which the activities have to be carried out in order to accomplish observed, during the execution of the various tasks and in order to get a the desired result.

Step 6 - Forms

A minimum of three forms are required for work flow management:

- Request form: The form that needs to be filled with for the formulation of a service request.

- Answer form: The form that needs to be filled for the communication of the response.

- Evaluation form: The form that captures feedback of the person to whom the answer was delivered.

Further forms might be required for the gathering of additional data and information.

Step 7 -

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  Pricing  of services

Costing of voucher services is a strategic exercise. A reasonable cost-benefit ratio and transparency of costing that justifies investments is of critical importance for sustainability and up-scaling. The services must be affordable for actors in the local economy. Costing of services should result in a good balance between motivation of the involved service providers on the one hand and affordability of services for the beneficiaries on the other hand.

Pricing is done in negotiation with concerned service providers / task agents.

Basically a price of a service is determined by adding up all expenditures for goods and services that are required to carry out the various tasks and the honorarium of the involved Task Agents.

Pricing Costing of services is carried out in four steps:

1. Determine Gather local prices: It is a list of A list is elaborated with the prices of all cost items that need to be considered that are gathered in the country or region where the project operatesgoods and services that are required to carry out the activities. It is an open list that is extended and up-dated according to need.

2. Costing Pricing of tasks: This is done in a three step negotiation with concerned service providers. First the required the resources are estimated a task: The price of a task is equal to the estimated expenditures for the resources that are required to carry out the task plus the honorarium of the involved Task Agent.

It starts with the estimation of the expenditures for resources that are required on average to complete a task by indicating the number of units for each cost item. Theirafter the cost are determined by a simple multiplication of the number of units with the prices for each line item. Considering that many of the various cost items. The cost of a task is then In a second step the  that are required by specifying the number of  Together with service providers In a first step the number of units that are required The cost of a is done in two steps services: Calculation of the cost of the various tasks by a simple multiplication of prices and expenses, which were quantified in step 2. The cost of a service is equal to the sum of the costs of tasks of a specific service.

The costs for the different tasks and services that are defined during this process will be valid throughout the project period.

Step 6 - Optimisation

of the required goods and services. The estimated quantities are multiplied with the corresponding prices and added in order to compute the price for expenditures.

Third party contributions: In some cases partners involved in service delivery might make an in kind contribution to assure the completion of a task (e.g. work time, office space). For reasons of transparency and reporting purposes their contribution must be acknowledged and if possible quantified (estimated) in order to avoid hidden costs that might need to be considered during subsequent scaling.

Example:

 3. Define payment schedule: Since many service providers are poor, three scenarios are distinguished:

Scenario 1 –Expenditures for a service are below 50€: The total amount is paid upon delivery. All activities are pre-financed by the Task Agents.

Scenario 2 – Expenditures are equal or above 50€: An advanced payment is made for the expenditures and the rest is paid upon delivery. At most the advance is equal to total cost of expenditures. In all cases the honorarium is only paid upon delivery.

Scenario 3 – Expenditures for a batch of services are equal or above 50€: In some cases several services need to be delivered in a short period. For this purpose the National Service Coordinator can define batches of services. In this situation the cost for project expenditures of the tasks is multiplied by the number of services that need to be delivered. If the total amount of expenditures exceeds 50€ he will receive an advanced payment according to the rule described in scenario 2.

4. Pricing of a service: The price of a service is the sum of the prices for the tasks.

Step 8 - Quality management

For all tasks quality criteria and control procedures are defined. Quality control criteria and procedures should be straight forward and objective. It might include procedures for the payment of a premium to encourage the delivery of high quality services. 

Step 9 - Optimisation

Work-flows are optimised in an iterative and participatory Workflows are optimised in an iterative process with the aim to improve the effectiveness and to lower the cost, while considering the principles of the RUN business modelcost efficiency.