PARTNERSHIP and CONSORTIUM MANAGEMENT

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PARTNERSHIPandCONSORTIUM MANAGEMENT

• METU Office of EU Affairs
• February 2005

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Essentials

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

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Consortium Agreement

• 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
• Internal organization and management, grant
  distribution, role of partners and performance,
  IPR issues,disputes are regulated by CA

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Decision Making Structures

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

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• 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

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• 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

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• 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

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Representation Voting Rights

• 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
• 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

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Performance Monitoring

• 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
• The Commission can terminate the Contract for
  non-performance of the project or of any of the
  partner(s)

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Performance

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

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• 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 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

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• Essentials-during the project
• 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
• 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.

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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
• 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
• Ensure that rules and responsibilities and
  budgets are allocated in a transparent and clear
  manner

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• 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

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TIPS about Partnership and CA

• 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
• Shared vision
• Technical, scientific expertise
• Added value, complementarity
• Reliability
• Capacity and adequate resources
• Adequate financial resources
• Capacity for long term growth and sustainability

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• Partner search possibilities
• CORDIS partner search
• NCPs or government agencies
• Recommendation from other partners
• Industry associations
• Networking events
• 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

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• Development of the consortium
• 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
• Make special allowance for differences in culture
• 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

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THANK YOU

• METU Office of EU Affairs
• Middle East Technical University
• 06531 Ankara / Turkey
• Phone [phone] Fax [phone]
• http//www.euoffice.metu.edu.tr
• February 2005