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. Simplicity and the evaluation of demand by looking at the potential benefits for service providers and beneficiaries are key.
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. (Networking of
Acronym: A max. 4 letter acronym to facilitate systematic knowledge management.
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.
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 requester.
Beneficiaries / Expected Outcomes: List of primary and secondary beneficiaries with a corresponding list of expected outcomes.
Requester: Denomination of the person (this might be an individual or an organisation) entitled to make a request, to whom the service will be delivered and who will evaluate the product.
Selection criteria: Description of the criteria for the identification of the persons who are entitled to make a request.
Price: The 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 the involvement of various agents with complementary 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: The acronym of the service plus the task number followed by a hyphen and a simple name of the task
Activities: Description of the activities that have to be carried out by a task manager.
Result: This is a list of the products that must result from the task in quantitative and qualitative terms. For each product the proof and source of verification on the internet must be indicated.
Task manager: The person or organization that carries out the task. For task the required professional and social skills must be defined.
Expenses: Detailed quantification of resources that are required on average to carry out the task (e.g. working hours, material, consumables, transport, …).
In kind contributions: In some cases partners involved in the action might make an in kind contribution to assure the completion of a task. This is important for reasons of transparency, for acknowledging contributions of partners and to avoid hidden costs that might need to be considered in further scaling.
Duration: Time during which the task must be completed.
Step 5 - Elaborate instructions
This is description of the methodology, rules and regulation according to which the activities have to be carried out in order to accomplish the various tasks and to get a 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 - Pricing of services
Pricing of 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 providers. Basically a price of a task is determined by adding up all expenditures for goods and services that are required to carry out the task and the honorarium of the service provider.
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 according to need.
2. Pricing of a tasks: It starts with the estimation of the 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 compute the price of a task.
3. Define payment schedule: Since many service providers are poor, two cases are distinguished:
Case 1 - Tasks below 100€: The total amount minus is paid upon delivery. All activities are pre-financed by the service provider.
Case 2 - Tasks equal or above 100€: An advanced payment is made 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. In all cases the honorarium is only paid upon delivery.
4. Pricing of a service: The price of a service is the sum of the tasks.
Step 8 - Quality management
For all task quality criteria and control procedures are defined. The procedure includes procedures for the payment of a premium to encourage the delivery of high quality services. Quality control criteria and procedures should be straight forward and objective.
Step 9 - Optimisation
Work-flows are optimised in an iterative and participatory process with the aim to improve the effectiveness and to lower the price, while considering the principles of the RUN business model.
