Relationship between Offering and Business Model

Number of professionals leveraged

Commodity(tools & approach)

Grayhair(Re-use of Experience)

Rocket Science(Unique & Analytic)

1: 15 – 30 (Micro- credit/Delivery of Solution)

1: 10 – 15 (Capacity Building Project)

1: 1-2 (High End Consulting)

Linking Revenue to Offering

Democratic Governance – Funding Leverage

RBEC Practice

MDG – Funding Leverage

Energy & Environment – Funding Leverage

Crisis & Recovery – Funding Leverage

HIV/AIDs – Funding Leverage

Funding Leverage 2005 - 2007

Cost of Minimum Presence

Bulgaria $1,147,437Ukraine $1,206,022Romania $1,228,338Trinidad and Tobago $1,248,821Kuwait $1,459,205UAE $1,713,960Republic of Korea $1,945,518

Benchmarks

• Considering the cost of doing business the benchmark figure is that such as office should turn in the range from USD23 million to USD39 million to be sustainable at 5% cost recovery.

• Core funded RC/RR and current average GLOC (USD234,000/year) will deliver 22 - 35% reduction in the base figure the required programme range would be USD 15 – 18 million (Bulgaria) for the low cost NICs and USD 25 – 30 million for the high end (South Korea).

• Current average RBEC 2007 programme is approximately USD13 million/office (including RSC)

Value Added

Highly Contextual Approach-Demand-Offering-Funding