Consultancy policy

Summary of policy

The policy covers the management of Consultancy and sets out the parameters by which this activity can be undertaken. It defines the permissions required prior to undertaking Consultancy and the financial and legal procedures to be adhered to. It contains the following sections:

• Purpose and Principles
• University Consultancy, Private Consultancy and Supported Consultancy
• Procedure – Implementation and Enforcement
• Equality, Diversity and Inclusion

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Scope

Who and which circumstances this policy covers

The policy applies to all staff and research students who wish to undertake Consultancy.

The policy covers University Consultancy, Private Consultancy and Supported Consultancy (see Glossary of terms for definitions).

Who and which circumstances this policy does not cover

Primary research and contract research (see Consultancy (Research and Enterprise): Guidance and Procedures for definitions).

External scholarly work that closely links to the academic role, even those which involve payment of a fee, is not covered by this policy. Examples include, but are not limited to, participation in external assessment procedures (e.g. Quality Assurance Agency, Research Excellence Framework, funder selection), work on editorial boards, reviewing scholarly outputs and external examination for another HEI.

Consultancy whereby (i) The Open University (OU) is the Client, (ii) the work is based within a Unit other than that the Consultants own, or (iii) the work is fundamentally outside the duties which would normally be undertaken by someone at the Consultants grade. The Engagement of Consultants Policy (internal link only) (PSP002) confirms when Consultancy may be undertaken under these circumstances. 

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Introduction

The Open University’s Consultancy Policy (Research and Enterprise) details the procedures and conditions under which Consultancy undertaken by staff can be carried out.

Consultancy is an important element in the delivery of the University’s Knowledge Exchange Plan (internal link only) and is actively encouraged by the University. Consultancy has many benefits for both the individual and the University, including income generation, opportunities for external collaboration, personal and professional development, and enhanced reputation of the University. It also contributes to the University’s wider knowledge exchange endeavours including economic and social impact criteria linked to the Research Excellence Framework (REF) and Knowledge Exchange Framework (KEF).

Consultancy carries with it an element of risk to both the individual and the University (including its reputation). The University is therefore keen to encourage and support its staff to engage in Consultancy in a regulated manner. The Research and Enterprise Office are available to support and advise staff looking to engage in Consultancy.

The objective of this policy is to define University Consultancy, Private Consultancy and Supported Consultancy, and explain the processes by which they are managed, and potential risks minimised.

For specific guidance on how this policy may relate to your personal circumstances, please contact the Research and Enterprise team.

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Policy

1. Purpose

The purpose of this policy is to identify the University’s position with regards to the management of University Consultancy, Private Consultancy and Supported Consultancy, and to outline the responsibilities and requirements of individuals engaging in these activities. The objectives of this policy are:

1. To define what the University classifies as University Consultancy, Private Consultancy and Supported Consultancy.
2. To set out the University’s procedures for gaining approval to undertake University Consultancy, Private Consultancy and Supported Consultancy.
3. To set out the University’s requirements for costing and pricing of University Consultancy and Supported Consultancy.
4. To describe management of income derived from University Consultancy.
5. To outline the conflicts of interest that may arise when undertaking University Consultancy, Private Consultancy and Supported Consultancy. 

2. Policy principles

Research and Knowledge Exchange (KE) are fundamental to the OU’s founding principle: to be 'open to people, places, methods and ideas’. These principals are embedded in our Research Plan (2022-27) and KE Plan (2023-27) (internal link only). 

The Research Plan and KE Plan set out the OU’s strategy to increase the scale and impact of our research and knowledge exchange activities through building on our distinctive capacity in engaged research, including enhanced KE activities with businesses, policy makers, practitioners and other stakeholders. 

The KE Plan aims to help the OU enhance societal impact through external partnerships founded on our research and scholarship. It comprises five over-arching objectives, of which the following objectives are directly related to this Consultancy Policy:

• Activity 2: Commercial Knowledge Transfer
• Activity 3: Knowledge Exchange for Impact

3. University Consultancy

3.1 University Consultancy is an arrangement between the University and a third party (the “Client”) and should be aligned to the delivery of the KE Plan. The activity may involve a member or members of staff and/or research students (the “Consultant” or “Consultants”) and use of University facilities and other resources in the provision of the Consultancy services.

3.2 The Consultant(s) must discuss the proposed Consultancy with the Head(s) of Unit (or delegate) before the Consultancy work is initiated and time allocation approved as per local workload approval mechanisms (see Consultancy: guidance and procedures).

3.3 The University’s name, facilities (offices, laboratories, equipment, meeting rooms etc.) and IT infrastructure (e-mail and internet access) may be used for University Consultancy.

3.4 The Consultant(s) will be covered by the University’s professional indemnity insurance.

3.5 Business development and other support services (e.g. financial and legal) will be provided by the University, either within the relevant Unit(s) or centrally from the Research, Enterprise and Scholarship Unit (RES) and other appropriate Units.

3.6 Costings should be prepared and approved through the University’s Awards Management System (AMS) and adhere to the standard costing and approval matrices.

3.7 A market sensitive approach to pricing should be applied to enable greater engagement with Clients aligned to delivery of the Research and/or KE Plans. The size and type of Client, the longer-term opportunities arising from the Consultancy and the potential impact of the work should be considered when calculating the price of the Consultancy (see Consultancy: guidance and procedures).

3.8 Consultancy income will be paid by the Client directly to the University. All income will flow through to the Units completing the activity. Surplus income (i.e. the commercial premium) will be distributed as agreed between the Head of Unit(s) and Consultant(s) prior to the work being undertaken. This will include the option of the faculty setting up a budget for use within a specific discipline for pre-agreed uses (see Consultancy: guidance and procedures).

3.9 To ensure University Intellectual Property (IP) is protected and risks are managed, a Consultancy agreement including a schedule of work must be in place before the work can commence. The Research and Enterprise office will manage the preparation of the agreement and obtain required sign-off(s). Where reasonably practicable the OU should lead on development of the Consultancy agreement.

4. Private Consultancy

4.1 Private Consultancy is a direct arrangement between a member of staff or research student (i.e. the Consultant) acting in a personal capacity and a third party.

4.2 Staff may undertake Private Consultancy as permitted under their Terms and Conditions of service. If required by their Terms and Conditions of service, members of staff should notify their Head of Unit (or delegate) of the Consultancy prior to commencing work through submission of a Private Consultancy Declaration form (internal link only).

4.3 There are circumstances under which prior approval is required before commencing the work, these are set out in the Consultant’s Terms and Conditions of Service. Where approval is required, the Consultant must wait for the Private Consultancy Declaration form to be approved by an authorised signatory prior to commencing the work.

Where prior approval is required, the approver will determine whether the activity aligns with the University’s health and safety responsibilities under the working time directive and does not:

1. impact upon the Consultant’s ability to fulfil their contractual University duties
2. result in any conflicts of interest, including whether there is any competition with services provided (or which could be provided) by the University
3. have the potential to bring the University in disrepute

Where approval is given, this is valid for one calendar year. Records of Private Consultancy will be kept by the School Office (or equivalent support team).

4.4 To avoid Private Consultancy being construed by the Client as acting on behalf of the University, the University name, reputation, and brand should not be associated with any aspect of the Consultancy. The Consultant is required to ensure that their Client is explicitly informed that the University has no responsibility or liability in the activities.

4.5 University facilities (e.g. space, equipment, consumables, and support services) and IT infrastructure (e.g. University email accounts) cannot be used to support Private Consultancy. The activity should not be incorporated into unit workload planning or incentives.

4.6 The Consultant is responsible for arranging their own professional indemnity insurance, invoicing, payments, tax obligations, VAT and national insurance requirements.

5. Supported Consultancy

5.1 Supported Consultancy is a hybrid of University Consultancy and Private Consultancy whereby (i) the University contracts with the Client and (ii) appoints an OU member of staff or research student (i.e. the Consultant) acting outside of their OU contracted hours to deliver the Consultancy.

5.2 Supported Consultancy will be managed as an Additional Responsibility and should only be undertaken when the Consultant has insufficient time in their workload allocation to complete the activity as a University Consultancy.

5.3 Permission to undertake the activity as a Supported Consultancy should be obtained from the Head of Unit (or delegate) prior to commencing work through submission of a Supported Consultancy Declaration form (internal link only).

5.4 Supported Consultancy should be aligned to the delivery of the KE Plan and the University’s core business activities. It should only be offered by the University when there is the capacity to provide the associated administrative service. Where necessary the University will prioritise support for opportunities that will have the greatest contribution to the HE-BCI return.

5.5 The activity should not be incorporated into unit workload planning or incentives but can be included in cases for promotion.

5.6 Supported Consultancy provides contract and costing/pricing services for the Consultancy only. No personal advice can be provided to the Consultant engaged to deliver the Consultancy.

5.7 The University will retain 20% of the price of the contract. The Consultant will be paid by the OU for their share of the income as an Additional Responsibility Allowance. The terms upon which payment will be made (e.g. upon completion of the project or when milestones are completed) will be defined in a schedule of work agreed between the University and the Consultant.

5.8 University facilities (e.g. space, equipment/lab facilities, consumables, specialist IT facilities and support services) cannot be used for Supported Consultancy.

5.9 The Consultant will not be automatically entitled to any payment. The Consultant will only be entitled to payment if all tasks described in the schedule of work are completed by the agreed date. If the Consultant is unable to complete the tasks by the agreed date the University will either find an alternative Consultant or terminate the agreement with the Client. 

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Procedure

6. Implementation and enforcement of procedure

6.1 Summary of key differences in procedures and permissions required when undertaking University, Private and Supported

6.2 A conflict of interest can occur when duties to the University compete with personal interests or duties to other people or organisations. Actual or perceived conflicts can arise from an individual’s external activities which are undertaken in addition to their University role. The key responsibilities and procedures related to conflict of interest are described in the Conflict-of-Interest Policy and should be followed when carrying out University Consultancy, Private Consultancy and Supported Consultancy.

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Equality, Diversity and Inclusion

Policies are inclusive of all Open University staff and Open University postgraduate research students, regardless of age, care experience, caring status or dependency, civil status, disability, family status, gender, gender expression, gender identity, gender reassignment, marital status, marriage and civil partnership, membership of the Traveller community, political opinion, pregnancy and maternity, race, religion or belief, sex, sexual orientation, socio-economic background or trades union membership status.

The Open University is committed to creating a diverse and inclusive environment in which everyone feels safe and is treated with dignity and respect. Unlawful discrimination of any kind across The Open University will not be tolerated. Safe Space Reporting is available through an online tool through which staff, students, learners and visitors are encouraged to report incidents of assault, bullying, harassment, hate crime, or sexual harassment. It also provides information about what you can do if these incidents happen to you, or to someone you know, and where you can find support.

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Glossary of terms

Client

The organisation that has engaged the services of the OU and is the final recipient of the output of the Consultancy.

Consultant

An OU member of staff (academic, academic related, research, support, associate lecturers) or research student who engages in University, Private or Supported Consultancy.

Consultancy

The provision of expert advice and work, which while it may involve a high degree of analysis, measurement or testing, is crucially dependent on a high degree of intellectual input from the organisation to the client (commercial or non-commercial) without the creation of new knowledge.

Private Consultancy

Private Consultancy is a direct arrangement between the individual acting in a personal capacity and a third party which is set-up and managed directly by the individual as permitted by their terms and conditions of employment. The Consultant is not permitted to use any University facilities (unless paid for), support services or other resources in the provision of the Consultancy services. All risk lies with the Consultant.

University Consultancy

University Consultancy is an arrangement between the University and a third party which may involve a member of staff/research student and use of University facilities, support services and other resources in the provision of the Consultancy services. All risk lies with the University.

Supported Consultancy

Supported Consultancy is a hybrid of University Consultancy and Private Consultancy whereby (i) the University contracts with a third party and (ii) engages an OU employee to deliver the project. The Consultant benefits through the University managing the interaction with the third party but being able to undertake the work outside of OU hours. University facilities (e.g. space, equipment/lab facilities, consumables, specialist IT infrastructure and support services) cannot be used.

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Related documentation

Refer to the following documentation in conjunction with this document:

• Approval matrix (internal link only)
• Conflict of interest policy (internal link only)
• Consultancy: guidance and procedures
• Consultants, Contractors and IR35 (internal link only)
• Engagement of Consultants Policy (internal link only)
• Pricing guidance (internal link only)
• Staff terms and conditions of service (internal link only)

The Open University Student Charter Principles

This policy aligns with the following Student Charter Principle:

Principle 4: We work together to secure the University’s mission and to promote the University’s values

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Further clarification

If you have any queries around the content provided within this document and how to interpret it, please contact the Research and Enterprise team.

If you have any comments about this policy document and how it might be improved, please submit these to the Research and Enterprise team.

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Alternative format

If you require this document in an alternative format, please contact Research and Enterprise team.

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Summary of significant changes since last version

The document replaces the previous version of The Open University Consultancy Policy (Research and Enterprise) (v.1.1 dated 01/11/2018).

There are four significant changes from the previous version of this policy (Version No. 1.1). These are:

1. Use of a market sensitive approach to pricing of University Consultancy (Policy: 3.7)
2. Management of income from University Consultancy (Policy: 3.8)
3. Sign-off of OU Consultancy Contracts (Policy 3.9)
4. Addition of Supported Consultancy (Policy: 5.1 – 5.9)

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Policies superseded by this document

This document replaces the previous version of The Open University Consultancy Policy (Research and Enterprise) [v1.1 Policy dated 01/11/2018].

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