Step 1- Conception

The definition of a new service usually starts with a brainstorming exercise for gathering ideas by screening research products, routine procedures and best practice that might be interesting for out-scaling. To keep it simple and to evaluate the potential benefit for service providers and beneficiaries is keyservice 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 statement: 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.

Outputs / Products: List of measurable and tangible results (e.g. products & services ) that are delivered to the requesterbeneficiary.

Beneficiaries / Expected Outcomes: List of primary and secondary beneficiaries with a corresponding list of expected outcomes.

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

Selection criteria: Description of the Requester: Selection criteria for the identification of the persons who are entitled to make a request, to whom the service will be delivered and who will evaluate the producta beneficiary.

Price: The cost price of the service

Step 3 - Define a work-flow

Services consist of a set of subsequent tasks that are organised in a work-flow towards a specific output. They require 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. 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: Description of the activities that have to be carried out by a task managerTask Agent in order to complete the task. It comprises the description of the methodology, rules and regulation, which have to be observed.

Deliverable & Proof : It This is the a list of results of the task that are handed over to the next task manager within a work-flow. Deliverables must be specified products that must result from the task in quantitative and qualitative terms.

Source of verification: For each deliverable source of verification on the internet 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) Service provider & Skills : The person or organization that carries out the task. For task 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

Pricing of voucher services is a strategic exercise. A reasonable cost-benefit ratio and transparency of pricing that justifies investments is of critical importance for sustainability and up-scaling. The services must be affordable for actors in the local economy. Pricing 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 providersis 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 of services is carried out in four steps:

1. Gather local prices: A list is elaborated with the prices of all goods 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. Pricing of a tasks: 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 of the required goods and services. The estimated quantities are multiplied with the corresponding prices and added in order to calculate 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:

 34. Define payment schedule:  Since many service providers are poor, two cases three scenarios are distinguished:

Case 1 - Tasks below 100€Scenario 1 –Expenditures for a service are below 50€: The total amount minus the premium is paid upon delivery. All activities are pre-financed by the service provider. The premium is paid at the end of the service period as defined by the quality management procedures.Task Agents.

Scenario 2 – Expenditures are equal or above 50€Case 2 - Tasks equal or above 100€: 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 a task minus the cost for the honorarium and the premium. The expenditures. In all cases the honorarium is only paid on delivery. The premium is paid at the end of the service period.

The premium is paid according to the procedures defined in Step 8.

5. Define quality premium: This is a percentage of the In support of quality a premium and is defined for each task.

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.

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

Step 8 - Quality management

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

Step 9 - Optimisation

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