PARTNERSHIP and CONSORTIUM MANAGEMENT METU – Office of EU Affairs February 2005

Essentials Keep in mind: A project is a collection of individuals A project is a collection of individuals These individuals are from different countries, business cultures and organizational structures These individuals are from different countries, business cultures and organizational structures Allow time for trust to develop Allow time for trust to develop A PROJECT CAN ONLY BE AS GOOD AS ITS WEAKEST PARTNER!!!

Consortium Agreement It is a requirement for almost all kinds of project types (IPs, NoEs, STREPS) It is a requirement for almost all kinds of project types (IPs, NoEs, STREPS) Even if it is not mandatory, it is wise to have one for other types as well Even if it is not mandatory, it is wise to have one for other types as well Internal organization and management, grant distribution, role of partners and performance, IPR issues,disputes are regulated by CA Internal organization and management, grant distribution, role of partners and performance, IPR issues,disputes are regulated by CA

Decision Making Structures Size and nature of the project determine the structure Size and nature of the project determine the structure Powers and roles of the structure are clear Powers and roles of the structure are clear Decisions are made at the lower possible level Decisions are made at the lower possible level They allow for the democratic participation of all the partners They allow for the democratic participation of all the partners Key Point:Management Structures should provide for the control of the project ensuring that the project deliverables are produced on time and in accordance with the Contract

Decision making structures are normally split among the principal management bodies like: Project Steering Committee:  consists of all the partners in the project  makes the key decisions (revision of the Contract, addition or termination of partners, modification of the work program, approving budgets,appointing or forming task forces or groups)  normally meets two or three times a year

Work Management Group:  Deals with issues like preparing reports and budgets for the PSC  Coordinates and monitors the work of the specialist scientific committees and task forces  Aids and supports the project manager in his contacts with the Commission  Proposes termination of contracts with defaulting partners  They meet once a month

Project Management Team:  Comprises the deputy project manager and key managers from the internal team  Basically scientific manager + 5 or 6 people  Having two reviewers from outside (consultants) can be helpful

Representation & Voting Rights Management structures should be democratic as everyone has the right to be heard Management structures should be democratic as everyone has the right to be heard However, representation or voting rights in the various committees could vary, according to the percentage share of the budget However, representation or voting rights in the various committees could vary, according to the percentage share of the budget Type of voting rights (quorum, majority,etc.) need to be carefully specified Type of voting rights (quorum, majority,etc.) need to be carefully specified E.g.to terminate a partner is a key issue. Therefore, you need a unanimity vote

Performance Monitoring Good performance is essential for the long term sustainability of the project Good performance is essential for the long term sustainability of the project Termination of a partner may have financial consequences for the partnership if he does not repay the EU as the Commission may turn to the remaining partners to pay the share Termination of a partner may have financial consequences for the partnership if he does not repay the EU as the Commission may turn to the remaining partners to pay the share The Commission can terminate the Contract for non-performance of the project or of any of the partner(s) The Commission can terminate the Contract for non-performance of the project or of any of the partner(s)

Performance Key Point: the performance of the partners must be properly checked and monitored Essentials-at application stage Essentials-at application stage Ensure that adequate information is obtained on the partners, especially financial Ensure that adequate information is obtained on the partners, especially financial If possible take up references when working with a partner that is unknown If possible take up references when working with a partner that is unknown Avoid last minute additions of partners if possible Avoid last minute additions of partners if possible Assess any risk of non-performance and consider the issue of requesting financial guarantees Assess any risk of non-performance and consider the issue of requesting financial guarantees

Essentials-prior to or at the start of the project: Essentials-prior to or at the start of the project: Ensure that prior to the start of the project, a training needs analysis is carried out, identifying any partners with special needs Ensure that prior to the start of the project, a training needs analysis is carried out, identifying any partners with special needs Ensure that a thorough training is given to all partners concerning the basic roles of the project, especially what is expected of them, the accounting procedures, their obligations under the Contract and the CA Ensure that a thorough training is given to all partners concerning the basic roles of the project, especially what is expected of them, the accounting procedures, their obligations under the Contract and the CA Remember that many projects fail because of a lack of understanding of what is required of them Remember that many projects fail because of a lack of understanding of what is required of them

Essentials-during the project Essentials-during the project Institute regular reporting, both financial and technical-quarterly reporting may be more effective in the beginning Institute regular reporting, both financial and technical-quarterly reporting may be more effective in the beginning Make sure the reports are properly followed-up and action taken by the appropriate team Make sure the reports are properly followed-up and action taken by the appropriate team Watch out for warning signs: constant changing of persons attending the project meetings, problems meeting deadlines, constant mistakes in reporting, absence from key meetings, etc. Watch out for warning signs: constant changing of persons attending the project meetings, problems meeting deadlines, constant mistakes in reporting, absence from key meetings, etc.

Dispute Resolution Dispute within the partnership can prove to be a disaster for the long term viability of the project, especially if not resolved quickly Dispute within the partnership can prove to be a disaster for the long term viability of the project, especially if not resolved quickly It can also damage the project in the eyes of the Commission It can also damage the project in the eyes of the Commission Fostering good communications, trust and understanding among the partnership can avoid some disputes Fostering good communications, trust and understanding among the partnership can avoid some disputes Ensure that rules and responsibilities and budgets are allocated in a transparent and clear manner Ensure that rules and responsibilities and budgets are allocated in a transparent and clear manner

If a dispute cannot be avoided, then: If a dispute cannot be avoided, then:  Ensure that it is resolved as quickly as possible  Try all the non-judiciary ways first (like use of a third party, a consultant, a friendly settlement)  Ensure that the CA requires the partner in dispute to submit the dispute to the relevant bodies (e.g. Steering Committee of the project) and not directly to the Commission  Avoid arbitration (e.g. European Council of Commerce) as this can prove to be very costly  Make sure that the CA allows you to terminate the participation of troublesome partners

TIPS about Partnership and CA Building your FP6 consortium Building your FP6 consortium  FP6 projects need far more extensive and diverse partnership  The quality and organization/structure of the consortium are key evaluation criteria What to look for in a partner What to look for in a partner Shared vision Shared vision Technical, scientific expertise Technical, scientific expertise Added value, complementarity Added value, complementarity Reliability Reliability Capacity and adequate resources Capacity and adequate resources Adequate financial resources Adequate financial resources Capacity for long term growth and sustainability Capacity for long term growth and sustainability

Partner search possibilities Partner search possibilities CORDIS partner search CORDIS partner search NCPs or government agencies NCPs or government agencies Recommendation from other partners Recommendation from other partners İndustry associations İndustry associations Networking events Networking events Specialized journals Specialized journals  KEEP IN MIND: The most popular method for finding partners is to attend workshops and conferences, probably because these methods allow for face to face contact

Development of the consortium Development of the consortium Allow more time to the establishment of the consortium if the working relationships are limited Allow more time to the establishment of the consortium if the working relationships are limited Do not be content with the people you already know. Expand your familiarity and try to look beyond Do not be content with the people you already know. Expand your familiarity and try to look beyond Make special allowance for differences in culture Make special allowance for differences in culture Get to know which partner is in for what Get to know which partner is in for what E.g. An exercise in a meeting: each partner writes what he thinks the motivation of the other partners are. This exercise has proved to be very successful

THANK YOU METU – Office of EU Affairs Middle East Technical University Ankara / Turkey Phone: Fax: February 2005