TERMS OF REFERENCE (ToR): Consultancy for Business Transformation, Feasibility Study, Business Plan Development, Organizational Structure and Compensation Review for Cheshire Ethiopia Social Enterprise

1. Background

Cheshire Ethiopia is one of Ethiopia’s leading disability and development organizations, providing rehabilitation, healthcare, inclusive education, livelihood promotion and community-based rehabilitation services for persons with disabilities.

To reduce dependence on donor funding and strengthen the sustainability of its charitable mission, Cheshire Ethiopia is developing and expanding its Social Enterprise/Income Generating Activities (IGA). The current portfolio includes physiotherapy and rehabilitation services, assistive technology production, an eye specialty clinic and optical services, commercial property rental, and dairy and agricultural enterprises.

Despite existing operations, significant opportunities remain for improved commercialization, operational efficiency, revenue diversification, innovation and investment. Cheshire Ethiopia therefore seeks an experienced consulting firm to assess its existing businesses, identify growth and investment opportunities, develop commercially viable business models, and recommend an appropriate organizational and human-resource framework.

2. Purpose of the Assignment

The overall purpose of the consultancy is to develop a practical and evidence-based business transformation and institutional sustainability strategy that enables Cheshire Ethiopia’s Social Enterprise to become financially resilient, professionally managed and capable of generating sustainable income to support its charitable mission.

The assignment shall combine business assessment, market and financial feasibility analysis, business planning, organizational development and compensation review.

3. Objectives and Scope of Assignment

The consultant shall undertake the following:

3.1 Business and Operational Assessment

Assess the performance and sustainability of the existing enterprises, including:

• Operational and financial performance;
• Products, services and pricing;
• Customer demand and market positioning;
• Cost structures, profitability and resource utilization;
• Infrastructure, equipment and asset utilization;
• Business processes, efficiency and customer satisfaction;
• Governance, management and operational systems;
• Strengths, weaknesses, opportunities and threats (SWOT);
• Political, economic, social, technological, environmental and legal (PESTEL) factors;
• Key gaps, risks and opportunities for improvement.

3.2 Market and Commercial Assessment

3.3 Financial Feasibility and Investment Analysis

3.4 Business Plan Development

Develop detailed, commercially viable and investment-ready five-year business plans for:

1. Physiotherapy Center
2. Eye Clinic and Optical Business
3. Dairy and Agricultural Business

3.5 Organizational Development, Human Resource and Compensation Review

Review the existing Social Enterprise structure and recommend an appropriate organizational and governance framework, including:

Organizational structure and organ grams; Reporting relationships; Roles and responsibilities; Staffing requirements and levels; Decision-making authority; Governance and management framework; Job grading; Job descriptions for key positions; and Performance management arrangements, Review the existing salary structure and benchmark salaries and benefits against comparable organizations; Develop an appropriate grading and salary structure; Ensure the proposed compensation system balances competitiveness, staff retention and financial sustainability.

4. Methodology

The consultant shall apply a participatory, evidence-based and commercially focused methodology, including:

• Review of organizational, financial and operational documents;
• Key informant interviews;
• Management and staff consultations;
• Focus group discussions where appropriate;
• Site visits and operational assessments;
• Customer and market surveys;
• Competitor and industry benchmarking;
• Financial and investment analysis;
• Business and financial modeling;
• Stakeholder validation and feedback workshops.

The consultant shall work closely with management and relevant business-unit personnel to ensure that recommendations are practical, implementable and aligned with Cheshire Ethiopia’s mission.

5. Deliverables

The consultant shall produce the following deliverables:

Deliverable 1 – Inception Report

Including:

• Methodology and analytical framework;
• Detailed work plan and schedule;
• Data-collection tools;
• Stakeholder engagement plan; and
• Assignment implementation schedule.

Deliverable 2 – Business Status and Market Assessment Report

Including:

• Operational and financial assessment;
• Market and competitor analysis;
• SWOT and PESTEL analysis;
• Asset and resource-utilization assessment;
• Gap and risk analysis; and
• Strategic recommendations.

Deliverable 3 – Three Business Plans

Separate five-year business plans for:

• Physiotherapy Center;
• Eye Clinic and Optical Business; and
• Dairy and Agricultural Business.

Each shall include financial projections, investment requirements, marketing and sales strategy, sustainability strategy, risk management and growth plan.

Deliverable 4 – Financial Feasibility Report

Including:

• Investment requirements, ROI, IRR, NPV, Break-even analysis, Payback period, Sensitivity analysis and Risk assessment.

Deliverable 5 – Organizational Development, Human Resource and Compensation Report

Including:

• Recommended organizational structure and organ grams, Staffing levels, Reporting relationships, Roles and responsibilities, Job descriptions for key positions, Job grading and Governance and performance-management framework. Salary benchmarking, Recommended grading and salary scale, Benefits and incentive framework, Staff retention strategy and Performance-management recommendations.

Deliverable 7 – Final Presentation and Implementation Roadmap

The consultant shall present the consolidated findings, business plans and recommendations to the Management Team and Board of Directors, incorporating agreed feedback into the final reports.

6. Duration and Indicative Work Plan

The assignment shall be completed within 60 calendar days from the date of contract signing.

The consultant may adjust the sequence of activities in consultation with Cheshire Ethiopia, provided the assignment is completed within the agreed period.

Required Qualifications and Experience

The consulting firm shall demonstrate:

• A Master’s degree or higher in Business Administration, Economics, Finance, Strategic Management, Health Economics, Agricultural Economics, Organizational Development or a related field within the proposed team;
• At least 7 years of relevant consulting experience in business advisory, investment analysis, strategic planning or organizational transformation;
• Demonstrated experience in business-plan development and financial feasibility studies;
• Strong expertise in financial modeling, business transformation and revenue diversification;
• Demonstrated experience in organizational development and compensation benchmarking;
• Experience in healthcare, rehabilitation, agriculture, social enterprise or related sectors is highly desirable;
• Experience working with NGOs, development organizations or social enterprises is an advantage;
• Strong analytical, financial modeling and report-writing capabilities.

The proposed team should collectively demonstrate expertise in:

• Business transformation and corporate strategy; Social enterprise development; Healthcare business consulting; Investment advisory and financial modeling; Organizational restructuring and HR systems; Market systems development; Innovation and revenue diversification; Public-private partnerships; International development and Disability-inclusive business models.

Reporting and Coordination

The consultant shall report to the Chief Executive Officer of Cheshire Ethiopia and work closely with the Social Enterprise/IGA Manager, business-unit managers, Finance Department, Human Resources Department and other relevant stakeholders.

Proposal Evaluation Criteria

Proposals shall be evaluated based on the following criteria:

Expected Results

The consultancy is expected to provide Cheshire Ethiopia with a clear and implementable roadmap for transforming its Social Enterprise into a financially sustainable, professionally managed and growth-oriented enterprise.

The assignment should enable Cheshire Ethiopia to:

• Improve the performance and profitability of existing businesses;
• Identify viable new products, services and investment opportunities;
• Strengthen market competitiveness and revenue diversification;
• Establish commercially sound business models and five-year plans;
• Develop appropriate organizational and governance structures;
• Establish competitive and financially sustainable salary and grading systems;
• Improve staff recruitment, retention and performance;
• Support investment and strategic decision-making; and
• Generate sustainable income to strengthen and expand Cheshire Ethiopia’s charitable mission.