TERMS OF REFERENCE PROJECT TITLE: Improved operation through reorganisation and new visua identit! "ENEFICI#R$ ENTERPRISE: %Compan!

&' CONS(LT#NT: %Consu tant $' )* "a+,ground This project originated from 1.1. Description of enterprise (A brief description of the project beneficiarys business. As far as possible, include quantitative details on turnover, production volumes, number of employees, exports for last 1-2 years as ell as qualitative details about the companys mana!ement, history and main developments." Company X is private enterprise founded in 2001 by Mr xx who is experienced practitioner with academic bac ground in mechanica! engineering" The company#s main activity is design and insta!!ation of water supp!y$ heating$ air conditioning and venti!ation systems as we!! as e!ectrica! insta!!ations for residentia! and industria! bui!dings" The company today emp!oys 21 peop!e of which % ho!d university degree and cover the project management and administration responsibi!ities" The business has been continuous!y growing to reach &uro 1 mi!!ion annua! sa!es in 2010" 'round (0) of turnover is made with project design and insta!!ation wor s and the rest with maintenance service" *n 200+$ the company imp!emented and certified the *,- %001 and 1.001 standards" 1.2 Business need (A summary of the project beneficiarys vision and strate!ic plan (includin! fundin! needs (if any" and potential sources of investment"# A definition of the project beneficiarys main problem(s" to be solved by the project (includin! the $ey sta$eholders from ithin the enterprise ho ould be en!a!ed in the project". The business has been deve!oping rapid!y$ however the management now !ac s c!ear strategic directions as we!! as performance indicators to efficient!y monitor the cost/profit rate for each project and trac and award individua! staff performance" The management a!so faces difficu!ties in hand!ing the increasing number of orders and efficient resource uti!isation" There is a need to reduce costs$ manage the personne! more efficient!y$ ensure the organisationa! transparency and a!ign the individua! responsibi!ities to increase the !abour efficiency" 0urther$ a structured and effective mar eting has been identified as important wea point of the business" To address these prob!ems$ the company is see ing professiona! assistance from Consu!tant 1" -* Pro.e+t /es+ription 2.1 Objectives of the consulting services (%his section should set out the objectives of the project as clearly and specifically as possible. &efine clearly hat is aimed to be accomplished and hat are the expected results of the project. %he overall objective should relate to the core objective of the consultancy project. A minimum of three specific objectives for the project should also be described. %hese objectives should be concise and easily understood by all parties." The overa!! objective of the consu!tancy project is to improve the business efficiency and strengthen the mar et position of Company X" ,pecific objectives inc!ude2 1

3 To reorganise the operationa! management structure4 3 To improve the overa!! profitabi!ity of the operationa! activity4 3 To increase the personne! efficiency and motivation4 3 To renovate the enterprise#s visua! identity and promotiona! materia!s" The expected outcomes and resu!ts from this project inc!ude2 3 &stab!ished transparent performance assessment system4 3 C!ear definition of processes and responsibi!ities within the organisation4 3 *mproved 5ua!ity of services rendered4 3 &stab!ished system of va!ues and improved corporate cu!ture4 3 *ncreased turnover by at !east 10) and number of c!ients by at !east 6) in the next 2 years4 3 *ncreased gross profit margin by at !east 70) in the next 2 years" 2.2. Scope of services (&escribe what is expected to be done by the consultant to ensure that the objectives of the project are achieved. 'hile the project beneficiary expects certain specific tas$s from the consultant, the consultant should also carry out other tas$s that in its professional jud!ment may be required to achieve the project objectives. (irst para!raph should briefly describe the or$ to be carried out by the consultant, its phases (if appropriate" and the manner in hich the consultant should cooperate ith the project beneficiary. )ubsequent sections describe the principal components presented as bloc$ of activities ith specific tas$s for each phase. *ach main component should preferably have an outcome that mar$ a point of decision in the project and hich can serve as a milestone a!ainst hich to measure the pro!ress of the or$. +t is important to emphasise the practical intent behind the tas$ and ho its results ill be applied. +t is advisable to formulate the scope of or$ in a lo!ical and mana!eable structure." The Consu!tant wi!! ana!yse in detai! the company#s current activity and its short and !ong term deve!opment objectives" The interna! and externa! responsibi!ity structure and a detai!ed structure of profit and cost centres wi!! be deve!oped" The Consu!tant wi!! provide individua! and group training for the !ine managers and their teams" ,ubse5uent!y and in consu!tation with the management$ the Consu!tant wi!! propose and deve!op the mar eting and communication strategy of the company and design the visibi!ity materia!s" The project wi!! be imp!emented in three phases as detai!ed be!ow2 8hase 1 9etai!ed performance assessment and deve!opment of effective organisationa! structure through the fo!!owing activities2 1"1 -rganisationa! diagnosis4 1"2 ,trengths$ :ea nesses$ -pportunities$ and Threats ;,:-T< ana!ysis4 1"7 'ssessment of performance efficiency profitabi!ity indicators4 1". Corporate cu!ture$ satisfaction$ motivationa! factors and training needs in5uiry among emp!oyees through 5uestionnaires and data processing4 1"6 &stab!ish objectives and 7 year deve!opment strategy for the enterprise4 1"= 9esign of the company#s organisationa! structure4 1"+ >ua!itative and 5uantitative assessment for manageria! positions4 1"( &stab!ish performance standards and indicators for each department and management position within the enterprise" 8hase 2 9eve!opment of the communication and mar eting p!an through the fo!!owing activities2 2

2"1 'na!yse the mar et segmentation$ competition and potentia! deve!opment4 2"2 *dentification of mar et needs and demand$ competitive strengths$ effective means of communication$ success factors and indicators4 2"7 &stab!ish the mar eting and promotion strategy for 7?year period4 2". Mar eting budget and revenues estimation" 8hase 7 9eve!opment of the enterprise visua! identity and design of promotiona! materia!s$ inc!uding2 7"1 Creation of a new !ogo and symbo! for each business division4 7"2 9esign of stationeries inc!uding the business card$ externa! correspondence and interna! documents$ fax header$ temp!ate power point presentation4 7"7 8roduction of promotiona! C9 presentation and brochure with description of services and reference projects4 7". 8roduction of corporate identity manua!4 7"6 9esign of a new website" 0* Imp ementation arrangements (&escribe how the project ill be mana!ed and supervised, coverin! in details the roles of the consultant and the project beneficiary. +n particular describe obli!ations of the consultant and the project beneficiary ith respect to provision of staff, data, facilities, services, accommodation, local transport, equipment, etc." The project wi!! be carried out according to imp!ementation schedu!e be!ow" The consu!tant wi!! ho!d wee !y meetings at the beneficiary enterprise to report on the progress and advise on next steps" '!! training and presentation sessions wi!! be he!d at the beneficiary@s premises" The company management wi!! be informed on the project progress through month!y progress reports prepared and submitted by the consu!tant$ according to the schedu!e be!ow in wee no .$ ($ 17 and 1+ respective!y" The Company x must provide the consu!tant with a!! necessary and re!evant information$ de!egate staff for each project phase and provide suitab!e space and e5uipment for the efficient imp!ementation of the project" 3.1 Schedule (+nclude detailed a!enda of the project and timin! of project implementation preferably in the form of a table", The project wi!! start on 12 ,eptember 2011 and is envisaged to be comp!eted by 16 0ebruary 2012" *ndividua! project phases wi!! be imp!emented as shown in the tab!e be!ow2
#CTI1IT$ 2 Month ) Month Month 0 M6 4) 440 46 47 48 49 4: 4; 4)< 4)) 4)4)0 MONT3 2 4EE5 Phase ): Per=orman+e #ssessment and Organisationa Stru+ture 1"1 " 1"2 " 1"7 " 1". 1"6 1"= 1"+ 1"( Phase -: Communi+ation and Mar,eting P an 2"1 " 2"2 " 2"7 2".

Phase 0: /eve opment o= the visua identit! o= the +ompan! and the we>site 7"1 7"2 7"7 7". 7"6 Fina Report Review meetings

3.2 Consultant Selection (A brief description of the consultant selected for the project, its qualifications and main types of services provided (particularly those relevant for the project". +nclude a summary of the selection process and the criteria used to justify the selection of the consultant. +nclude a description of the team of experts to be en!a!ed in the project implementation by the consultant, preferably in the form of a table" The Company X has se!ected Consu!tant 1 to underta e this project after eva!uating competitive proposa!s and interviewing candidate consu!tants" The fina! decision was ta en based on the Consu!tant@s 5ua!ification and competence as presented to the Company" The Consu!tant has nominated the fo!!owing individua!s as experts to imp!ement the project2
E?pert Primar! ro e @ o= da!s Phase ) Phas ePhase 0 Tota @ Rate ABC da!s Tota ABC

Aame 1

,enior consu!tant Aame 2 Consu!tant Aame 7 Consu!tant Aame . Consu!tant Tota /ire+t Costs

2 ( 0 0

7 0 10 0

1 0 0 16

= ( 10 16

120 120 100 100

+20 %=0 1$000 1$600 6D):<

6* /e ivera> es and reporting &escribe the outputs in concrete terms, and the supportin! documentation to be provided. -lear milestones are essential for lin$in! payments to performance. .ive a timetable for the deliverables, preferably in terms of results to be achieved by a certain time (days, ee$s, months, as appropriate" after the commencement of services (this should mirror the implementation/timin! schedule set out in )ection 0 above". 1ist reports to be provided. %reat separately reports documentin! or illustratin! the project output, i.e, formin! part of the tas$s to be performed, and those to be provided for monitorin! purposes (typically pro!ress reports, final report". )tate hich reports are due, hen and to hom they should be submitted. (or monitorin!, detail hat information the project beneficiary ould expect to receive in order to monitor the project durin! the course of implementation at the revie meetin!s (as set out in the schedule in )ection 0.1". )tate by hen the -onsultant should submit a final report to the project beneficiary for consideration and approval by the project beneficiary.
/e ivera> es Phase ) /ra=t due >! :ee . Fina due >! :ee 17

Report on per=orman+e assessmentD deve opment o>.e+tives and new organiEationa stru+tureD in+ uding2 ? -rganisation diagnosis ? ,:-T ana!ysis ? &mp!oyee assessment$ motivation factors and training needs ? 9eve!opment objectives and strategy ? Aew organisation chart with assessment of manageria! positions ? 8erformance standard sheets for each department and manageria! position Phase Mar,et ana !sis and +ommuni+ation p anD in+ uding: ? Mar et and competition ana!ysis ? Mar eting strategy per product group inc!uding promotion/ communication strategy$ sa!es and pricing mode!s ? Mar eting budget proposa! ? Conc!usions and recommendations Phase 0 1isua identit!D promotiona materia s and we>site deve opment: ? 7 different concepts and their transcription in the e!ectronic environment ? Bisua! *9 ;symbo! C !ogo<$ !ayouts of business cards$ !etterhead$ 8ower 8oint presentation temp!ate" ? 8resentation C9 and corporate brochure of 12?1= pages ? Corporate identity manua! ? :ebsite !ayout$ content and user administration modu!e

:ee (

:ee 1+

:ee 17 :ee 1+

7* "udget )et out the overall budget description for the project in the form of the brea$do n of direct costs of consultancy services and reimbursable costs (if any". %his section should clearly state the total net cost, total !ross cost, as ell as any requirement for advance payment from the project beneficiary and/or any other payment terms specifically a!reed. /IRECT COSTS 2insert number3 consu!tant days D &EF 2insert amount3G per day &EF 2insert amount, should equal %otal &irect -osts in )ection 0 above3 1. consu!tant days D &EF 120 / day 26 consu!tant days D &EF 100 / day Tota 0; +onsu tant da!s REIM"(RS#"LE COSTS -ther &xpenses2 T-T'H A&T C-,T ;exc!uding tax< Taxes2 1() B'T TOT#L M#&IM(M P#$MENT /(E to Consu tant by the Ieneficiary &EF 1$=(0 &EF 2$600 E(R 6D):< &EF 0

&EF .$1(0 &EF +62 E(R 6D;0FFFFFFFFF