Eu project managment

Project Cycle Management

Compostela Seminar:“EU Projects and Mobility Opportunities”

Presentation by George KostarasNational Technical University of Athens

Citta’ della Pieve ‘Il Perugino’ Institute 4th-6th February 2004

PCM – Project Cycle Management 2Presentation by George Kostaras

PCM History

“Project Cycle Management” (PCM) was adopted In 1992 by the European Commission as its primary set of project design and management tools, based on the Logical Framework Approach. A first PCM manual was produced in 1993 and is continuously updated.

Comprehensive PCM Guidelines have been prepared for the European Commission by the staff of the Aid Delivery Methods Helpdesk with the support of, and input from, a significant number of staff within the European Aid Cooperation Office (EuropeAID). An updated version can be found in the Europa Web Site :

http://europa.eu.int/comm/europeaid/projects/asia-pro-eco/pdf/publications/pcm_manual_2004_en.pdf

This presentation has been based on the official PCM guidelines, prepared by the EC services, including terminology, figures and examples


Contents

1. Project Cycle Management (PCM)

2. Logical Framework Approach (LFA)

3. The Logical Framework Matrix (LFM)

4. Elaborating the LFM … HOW-TO

5. Discussion

In a nutshell :


What is a project?

A project is……a series of activities aimed at bringing about clearly specified objectives within a defined time-period and with a defined budget.

A project should clearly define / have :– Stakeholders (Primary Target Group + Final Beneficiaries)– Co-ordination, management & financial agreements– A Monitoring & Evaluation system– Proof of benefits exceeding expected costs


EVALUATION & AUDIT

The Project Cycle

IMPLEMENTATION

STRATEGY

IDENTIFICATION & FORMULATION

COMMITMENT

PROJECT DEVELOPMENT

PREPARATION APPRAISAL&


EVALUATION & AUDIT

The Project Cycle

IMPLEMENTATION

STRATEGY


COMMITMENT

PROJECT DEVELOPMENT

PREPARATION APPRAISAL

STRATEGY

• Analyse situation at national andsectoral level. Identify problems, constraints and opportunities;

• Identify main objectives and sectoralpriorities for development cooperation;

• Provide a relevant and feasible programming framework within which projects can be identified and prepared;

• Formulate / evaluate strategies taking account of past experience

&


EVALUATION & AUDIT

The Project Cycle

IMPLEMENTATION

STRATEGY


COMMITMENT

PROJECT DEVELOPMENT



• Identify ideas for projects and other development actions

• Consult intended beneficiaries of each action, analyse problems they face and options to address these problems.

• Make decision on the relevance of each project idea and on which ideas should be further studied during Formulation

• Develop relevant project ideas into operational project plans.

• Assess feasibility and sustainability

• Make decision whether to draw up a formal project proposal and seek funding for the project.

&


EVALUATION & AUDIT

The Project Cycle

IMPLEMENTATION

STRATEGY


COMMITMENT

PROJECT DEVELOPMENT


PREPARATION & APPRAISAL

• Specify objectives, inputs and outputs

• Assess impact and sustainability

• Assess environmental, social and gender issues

• Review of the prepared project for institutional capacity, costs and benefits

• Prepare TOR and Endorsement Statements

• Receive approval by partner institution

&


EVALUATION & AUDIT

The Project Cycle

IMPLEMENTATION

STRATEGY


COMMITMENT

PROJECT DEVELOPMENT


COMMITMENT

• Project proposals are examined by the funding agency, and a decision is taken on whether to fund the project.

• The funding agency and partner country agree the modalities of implementation and formalise these in a legal document which sets out the arrangements by which the project will be funded and implemented.

&


EVALUATION & AUDIT

The Project Cycle

IMPLEMENTATION

STRATEGY


COMMITMENT

PROJECT DEVELOPMENT


IMPLEMENTATION

• Project is mobilised and executed.

• Project Management assesses actual progress against planned progress to determine whether the project is on track towards achieving its objectives.

• If necessary the project is re-oriented to bring it back on track, or to modify some of its objectives in the light of significant changes that may have occurred since its formulation.

&


EVALUATION & AUDIT

The Project Cycle

IMPLEMENTATION

STRATEGY


COMMITMENT

PROJECT DEVELOPMENT


EVALUATION & AUDIT

• Funding agency and partners assess the project to identify what has been achieved, and to identify lessons that have been learned. Evaluation findings are used to improve the design of future projects or programmes.

• It is common practice also to conduct a mid-term evaluation during implementation, to identify lessons that can be applied during the remaining life of the project.

&


The Project Cycle Management

Project Cycle Management is a term used to describe the management activities & decision-making procedures used during the life-cycle of a project (including key tasks, roles and responsibilities, key documents and decision options)

Integration of the stages in the project cycle so that issues are examined systematically, by means of an approach and methodology, which ensures that objectives and issues of sustainability remain in focus

Definition


PCM Objectives

PCM helps to ensure that projects are:

1. Supportive of overarching policy objectives of the EC and of development partners

2. Relevant to an agreed strategy and to the real problems of target groups/beneficiaries

3. Feasible can be realistically achieved

4. Well managed and benefits produced are likely to be…

5. Sustainable


PCM Objectives - Relevance

Relevance

Projects are relevant to the agreed strategy & to the real needs of beneficiaries:

projects are linked to sectoral, national and company objectives

beneficiaries are involved in the planning process from an earlystage

problem analysis is thorough

objectives are clearly stated in terms of benefits to target groups


PCM Objectives - Feasibility

FeasibilityProjects are feasible in that objectives can be realistically achieved within the constraints of the operating environment and the capabilities of the implementing agencies:

objectives are logical and measurable

risks and assumptions, and the implementing agencies capabilities are taken into account

monitoring concentrates on relevant targets


PCM Objectives - Sustainability

SustainabilityProjects are sustainable :

factors affecting sustainability are addressed as part of project design

results from evaluation are used to build lessons learned into the design of future projects


PCM Principles

Adherence to Project Cycle Stages: structured & informed decision-making

Logframe planning: comprehensive & consistent analytical approaches to project design and management

Client orientation: participatory approach for key stakeholders and promotion of local ownership

Sustainability: Incorporate mechanisms for continued flow of benefits

Integrated approach: vertical integration & standardised documentation


Logical Framework Approach

Developed by USAID during the late 1960s in order to assist in the planning, management and evaluation of development activities.

Adopted as a planning and management tool for systematic and logical thinking by a large number of agencies

The European Commission has produced a manual on Project Cycle Management, based on the Logical Framework Approach.



Logical Framework tools are used both in the project preparatory phases and during implementation.

They include:1. Situation analysis (stakeholders, resources, problems &

opportunities)2. Analysis of objectives and possible strategies3. Design of the project strategy4. Planning of implementation5. Work & Resource Planning



Fundamental Logic:

1. Co-operation with the beneficiaries from the very beginning

2. Problem and needs based approach

3. Objective oriented approach


LFA Phases

ANALYSIS PHASE PLANNING PHASE

♦ Problem analysis - identifying keyproblems, constraints andopportunities; determining causeand effect relationships

♦ Logframe - defining the projectstructure, testing its internallogic, and formulating objectivesin measurable terms

♦ Analysis of objectives- developingobjectives from the identifiedproblems; identifying means to endrelationships

♦ Activity schedulingdetermining the sequence anddependency of activities;estimating duration, settingmilestones and assigningresponsibility

♦ Strategy analysis - identifying thedifferent strategies to achieveobjectives; determining the overallobjectives and project purpose

♦ Input and cost schedulingfrom the activity schedule,developing input schedules anda budget

Stakeholder analysis - identifying& characterising potential majorstakeholders; assessing their capacity

♦


Stakeholder Analysis

Different groups have different concerns, capacities and interests.

These need to be explicitly understood and recognized in the process of problem identification, objective setting and strategy selection.



1. Identify all groups who have a significant interest in the project; investigate roles, relative power and capacity to participate (strengths and weaknesses);

2. Identify the extent of cooperation or conflict in the relationships between stakeholders;

3. Incorporate relevant information into project design to ensure that:resources are appropriately targeted to meet distributional/equity objectives and the needs of priority groups,

management and coordination arrangements are appropriate to promote stakeholder ownership and participation;

conflicts of stakeholder interest are recognized and explicitly addressed in project design

Key Steps :



Terminology

1. Stakeholders: Individuals or institutions that may – directly or indirectly, positively or negatively – affect or be affected by a project or programme.

2. Beneficiaries: Are those who benefit in whatever way from the implementation of the project. Distinction may be made between:

Target group (s):The group/entity who will be directly positively affected by the project at the Project Purpose level. This may include the staff from partner organisations;

Final beneficiaries:Those who benefit from the project in the long term at the level of the society or sector

3. Project partners:Those who implement the projects in-country (who are also stakeholders,and may be a ‘target group’).



Tools for Supporting SA

1. Stakeholder Analysis Matrix

2. SWOT analysis

3. Venn diagrams; and

4. Spider diagrams


Stakeholder Matrix


Problem Analysis

Main Steps :

1. Identification of the major problems faced by beneficiaries

2. Development of a problem tree to establish causes & effects

Identifies the negative aspects of existing situation and establishes the cause and effect relationships between the problems that exist


Problem Tree

Step 1: Brainstorm problems which stakeholders consider to be a priority

Step 2: Select an individual starter problem / Look for related problems

Step 3: Establish a hierarchy of cause and effects:Problems resulting from the starter problem are put aboveProblems causing the starter problem are put belowCauses combining to produce an effect are placed at the same level

Step 4: Connect the problems with cause-effect arrows

Step 5: Review the diagram and verify its validity and completeness.

Establishes cause and effect relationships to ensure that root problems are identified and then addressed. Should ideally be undertaken as a participatory group event.


Problem Tree

Cause

Effect


Analysis of objectives presents the positive aspectsof a desired future situation (Problem analysis presents the

negative aspects of an existing situation)

This involves the reformulation of problems into positive achievements (objectives) through establishing means/ends relationships

The objective tree can be seen as the positive mirror image of the problem tree.

Objectives Analysis


Problem TreeElements

Objectives TreeElements

“River water quality is deteriorating”

“River water quality is improved”

“Pollution has been a low political priority”

“Pollution Management is given a high

Political priority”

Objectives Analysis

Means

Ends

PCM – Project Cycle Management

Objectives Analysis


Consists of:Analysing clusters of objectives to be included in the projectAnalysing the feasibility, costs and benefits of different interventionsChoosing an appropriate strategy

The selected strategy will then be used to help formulate the first column (Intervention Logic) of the Logical Framework,particularly in helping to identify the project Overall Objective, Purpose and potential Results.

Strategy Analysis

Decision based on policy priorities, cost-benefit, other ongoing interventions, overall budget etc


Strategy Analysis


Expected contribution to key policy objectives, such as poverty reduction or economic integration

Benefits to target groups – including women and men, young and old, disabled and able, etc

Complementarity with other ongoing or planned programmes or projects

Capital and operating cost implications & local ability to meet recurrent costs

Financial and economic cost-benefit

Contribution to institutional capacity building

Technical feasibility

Environmental impact

Urgency

Strategy Criteria

Strategy Analysis


Logframe Matrix

Is a 4 x 4 table; the key output of the LFA

Is a summary of the project design based on the results of the stakeholder, problem, objectives and strategy analysis

Must be seen as a dynamic tool, which should be re-assessed and revised as the project itself develops and circumstances change.

Should be used to provide structure and purpose to project planning and budgeting without being perceived as an inflexible and constraining blueprint

Key Characteristics

The Logframe Matrix


HOW TO Complete the LFM

Completion Sequence


The Logframe Matrix

if MEANSif MEANSare provided

then ACTIVITIEScan be undertaken

then ACTIVITIEScan be undertaken

if ACTIVITIESif ACTIVITIEScan be undertaken

then RESULTSwill be produced

then RESULTSwill be produced

if RESULTSare produced

if RESULTSare produced

then the PROJECT PURPOSE

will be achieved

then the PROJECT PURPOSE

will be achieved

if the

is achieved

if the PROJECT PURPOSE

is achieved

then the project willcontribute towards the

OVERALL OBJECTIVE

then the project willcontribute towards theOVERALL OBJECTIVE

The Intervention Logic

Reference Numbers


Recall the “Objectives Tree”

Use reference numbers toclearly link inputs, activities

and results.

Objective statements


Tangible outcome

Active VerbsPresent Tense

Benefit Not a SUM of RESULTS !!!


Interlocking LFMs

Results or Purpose…or Objectives ?

The concept of ‘interlocking’ or ‘nested’ Logframescan be useful to see how the objectives of different hierarchical levels (policy / sector programme / specific project) might be linked…

Always have the “End” in Mind


Assumptions

Completion Sequence


Assumptions

Objectives not included in the intervention logic and other external factors affect the project's implementation and long-term sustainability but lie outside its control

These conditions must be met if the project is to succeed, and are included as assumptions in the fourth column of the Logframe.

Therefore assumptions :– are conditions required for project success;– are not under the control of project management; and– should be monitored


• The probability and significance of these assumptions met should be estimated as part of assessing the risk of the project.

• Some will be critical to project success, and others of marginalimportance.

• Once assumptions have been identified, they are stated in terms of the desired situation. In this way they can lead to the designof risk monitoring and management strategies

Assumptions


Assumptions

Assumptions and objective hierarchy

Assumptions Algorithm


Assumptions



Indicators

Completion Sequence


Indicators

Objectively Verifiable Indicators describe the overall objective(s), project purpose, results and activities in operationally measurable terms

They help us in monitoring projects and assessingsuccess / performance in achieving goals

They specify the quantity and quality (targets) of the intervention logic elements.

Why OVIs?


Specific: measure what they are supposed to measure

Measurable: in terms of quality and/or quantity

Available: at an acceptable cost

Relevant: with regard to the objective needs

Timebound: defining when the objective/target is to be achieved

IndicatorsOVIs should be OVIs !

…and S.M.A.R.T.


Sources of Verification

Completion Sequence


• An “agreement” on how to measure OVIs

• MoVs indicate whether the OVI can be realistically measured at the expense of a reasonable amount of time, money and effort.

• The MoV should specify: • The format in which the information should be made

available (e.g. progress reports, project accounts, project records, Official statistics etc.)

• Who should provide the information

• How often it should be provided. (e.g. monthly, quarterly, annually etc.)

Sources of Verification


Example of OVIs


Activity & Resource Scheduling

Once the Logframe matrix itself is complete, it is thenpossible to use the identified Activities to further analyse issues of timing, dependency and responsibility using an activity scheduling (or Gantt chart) format.

Once the Activities have been entered into the schedule, the resources necessary to undertake the Activities must be specified. As there will be a need to aggregate or summarise the cost information, the resources should be allocated to agreed cost categories


Link with the Logframe

Activity & Resource Scheduling


Use of the LFA during PCM Stages

The LFM provides a summary of key project elements in a standard format;defines scope and logic or proposed investments.

The tools that make up LFA can be applied to test relevance and likely feasibility

The objectives specified in the Logframe, combined with the activity, resource and cost schedules, provide information to support cost-benefit analysis

The cost-schedules allow cash-flow implications to be assessed and the scope of Financing Agreements to be determined

During FORMULATION



Provides the basis on which contracts can be prepared – clearly stating anticipated objectives & level of responsibility and accountability

Provides the basis on which detailed operational work plans can be formulated

OVIs provide the framework for a more detailed Monitoring and Evaluation Plan to be designed and implemented by project managers

Assumptions provide the basis for an operational risk management plan

Results, OVIs and MoVs (+activities, resource and costs) provide the framework for preparing project progress reports

During IMPLEMENTATION



The LFM provides a framework for evaluation, given that it clearly specifies whatwas to be achieved (namely results and purpose), how these achievements were to be verified (Indicators and Means of Verification) and what the keyassumptions were.

The LFM provides a structure for preparing TOR for Evaluation studies and for performance audits.

During EVALUATION & AUDIT



During EVALUATION & AUDIT

End of Presentation

Compostela Seminar:“EU Projects and Mobility Opportunities”

Thank you for your Attention !

Citta’ della Pieve ‘Il Perugino’ Institute 4th-6th February 2004

Eu project managment

News & Politics

Transcript of Eu project managment