Transcript Slide 1

ETCF is funded by the European Union
INTRODUCTION
TO
PROJECT CYCLE MANAGEMENT
(PCM)
ETCF – Info Days
Ankara, March 3rd 2008
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ETCF is funded by the European Union
OUTLINE
 Introduction to the idea of PCM
 Understand why PCM provides a context
for project preparation and
implementation
 Presentation on logical framework
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ETCF is funded by the European Union
What is PCM?
Programming
Evaluation
Identification
Implementation
Formulation
Financing
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ETCF is funded by the European Union
The phases of the Project Cycle!
 Programming – Multi-Annual Indicative Programme
 Identification – pre-feasibility study (including problem
analysis), EC decision
 Formulation (Appraisal) – feas. study, EC decision
 Financing – final EC Financing Agreement
 Implementation – project launch and monitoring
 Evaluation – project assessment
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ETCF is funded by the European Union
What is PCM?
 A logical and systematic approach to undertaking
activities
 An approach which minimises risk (without
avoiding it) and relates activities to objectives
 Identifies the undertaking of specific tasks in a
holistic and cyclical manner
 Can be applied to a wide range of different
activities
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ETCF is funded by the European Union
Why PCM?
 PCM will help us access EU and other external
funding
 PCM can provide a valuable framework for
successful project implementation
 PCM helps us to prepare better projects which
will address problems more effectively
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ETCF is funded by the European Union
Why Learn about Project Cycle
Management?
 Central to EU approach to development
 MEDA/PHARE
 IPA
 Structural Funds
 Used by OECD and other donor
enterprises
 Accepted by European Commission since
1992 for project development and
management
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ETCF is funded by the European Union
But more than just an EU requirement!
 Increasing need for external funding for public
services
 Understand the framework within which EC staff
and experts operate
 Public –private partnerships
 .. And generally good practise!
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ETCF is funded by the European Union
ETCF Project Application
Current stage
of ETCF
Grant
Scheme
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ETCF is funded by the European Union
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ETCF is funded by the European Union
What is a PROJECT ?
 A project should always …
• Be consistent with, and supportive of, broader policy and
programme objectives, but
• Create/develop something ‘new’, rather than simply support
ongoing activities
And have …
• Clearly defined objectives which address identified needs
• A clearly identified target group(s)
• Clearly defined management responsibilities
• A start and finish date
• A specified set of resources and budget
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ETCF is funded by the European Union
What is a PROJECT ?
Examples of projects:
 “Hard” infrastructure such as construction of a highway or a
water treatment plant
 “Soft” projects such as provision of technical assistance or
training
 Grant scheme projects, regional scheme for SME assistance
 Internal activities such as putting in place a new IT system
 Some projects may include hard and soft elements
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ETCF is funded by the European Union
EU Project Preparation
 Project preparation is key to success in
applications for EU funding
 Key documentation (eg project fiche and log frame) and
approach must be followed
 Project proposal is also the framework for implementation
 Poor preparation can result in:
- Project being rejected
- Problems during implementation (if approved)
- Failure to absorb funds
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ETCF is funded by the European Union
Key Issues in Project Preparation
 Importance of analysing problems and defining
clear objectives
 Importance of scheduling activities over time and
identifying key relationships and dependencies
 Need to understand and schedule procedures and
processes (eg tenders that will be needed)
 Importance of monitoring and evaluation
 Need to identify and manage risk (but not to
avoid it!)
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ETCF is funded by the European Union
Key elements of Project Preparation
 Project cycle phases - structured & informed
decision-making, and feedback from evaluation
 Partner / stakeholder ownership - involvement of
stakeholders in decision-making, including emphasis
on teamwork and communication
 Logframe planning - comprehensive & consistent
analysis
 Integrated documentation - standardised
documentation and assessment criteria
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ETCF is funded by the European Union
Why Projects Fail
 Lack of relationship between problems and
objectives
 Poor financial and budget planning
 Lack of inter relationship between tasks,
financing and time planning
 Lack of engagement of wider stakeholders
 Lack of project coherence and synergy
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ETCF is funded by the European Union
Why Projects Fail
 Rigid targets and processes (inflexible)
 Not linked to programme or policy framework
 False expectations (too optimistic goals)
 End abruptly and usually too short term
 ‘driven’ by aid professionals, not locally ‘owned’
 Force relationships to be contractual
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ETCF is funded by the European Union
Context for success of PCM
Preparation of projects for EU funding requires:
 Understanding and commitment at all levels of
responsibility
 Flexible and open style of management
 Interactive approach – working and learning from
other partners
 Ability to interact with European Institutions,
experts and partners.
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ETCF is funded by the European Union
Format and documentation
 A basic format is used for documents produced during the
project cycle, following the core logic of the LFA approach.
1. Summary
2. Background
3. Sectoral and problem analysis
4. Project / programme description
5. Assumptions, Risks
6. Implementation arrangements
7. Quality factors
8. Annex: Logframe (complete / outline – as suits phase)
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ETCF is funded by the European Union
PCM and team building
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The success of project cycle management depends on
effective team-work between stakeholders:
Understanding different perspectives and realities
Review the appropriateness of management structures and
hierarchy
Respecting different knowledge and skills
Establishing responsibilities of different team members
Giving adequate time to the process, while still focusing on
results
Communicating clearly
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ETCF is funded by the European Union
Introduction to Logical Framework
Approach
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ETCF is funded by the European Union
Merging PCM and LFA
Project Cycle Management
Logframe Approach
Defines different phases in the life
of a project with well defined
management activities and
decision making procedures
A methodology for planning,
managing and evaluating
programmes and projects, using
tools which promote systematic
analysis, stakeholder participation
and structured documentation
PCM
The decision making and
implementation
process defined by the
organisation
LFA
Project management method
and tools
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ETCF is funded by the European Union
The Logical Framework
One tool - the Logical Framework (LF) is used
throughout PCM cycle.
It forms a common and consistent link between:
Objectives aimed at
Problems to be solved
Results obtained
Objectives aimed at
Activities
implemented
Results obtained
Necessary means
Activities implemented
Means-related costs
Necessary means
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ETCF is funded by the European Union
Application of LFA
 LFA is an aid to systematic and logical thinking
 The process (who is involved and how) is as important as
the product
 LFA tools should be applied as part of an iterative process
– not as a set formula
 The Logframe matrix (the product of the analysis) must be
open to review and revision
 The LFA tools presented in this training are not ‘exclusive’
– there are many other complementary tools (such as
SWOT, Venn Diagrams and other participatory tools) that
can be used to support effective PCM
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ETCF is funded by the European Union
LFA & Project Design
ANALYSIS STAGE
 Stakeholder analysis identifying & characterising
potential major stakeholders;
assessing their capacity
 Problem analysis - identifying
key problems, constraints &
opportunities; determining cause
& effect relationships
 Objective analysis - developing
solutions from the identified
problems; identifying means to
end relationships
 Strategy analysis - identifying
different strategies to achieve
solutions; selecting most
appropriate strategy.
PLANNING STAGE
 LF Matrix - defining project
structure, testing its internal logic
& risks, formulating measurable
indicators of success
 Activity scheduling – when will
the activities be carried out?
 Resource scheduling – what
resources will be needed?
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ETCF is funded by the European Union
LFA & Project Implementation
IMPLEMENTATION
EVALUATION
 Indicators which provide
management information
(monitoring and regular review)
 A clear situation/problem
analysis to help evaluate
relevance
 Assumptions which support risk
management
 Objective structure and
indicators against which
to evaluate impact and
effectiveness
 Updated activity schedules
linked to results
 Updated resource schedules and
budgets linked to results
 Activity and resource
schedules to assist in
evaluating efficiency
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ETCF is funded by the European Union
LFA - Analysis Stage
 Stakeholder analysis
 Problem analysis
 Objective analysis
 Strategy analysis
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ETCF is funded by the European Union
Stakeholder Analysis
Stakeholders are any group of people who have an
interest/role in addressing identified problems or
achieving desired solutions relevant to the project, e.g.:
 Government institutions and organisations
 Private sector groups, individual companies
 Civil society groups (NGOs, CBOs)
 Communities of interest / communities of place
 Community members (farmers/traders, women/men,
young/old, rich/poor)
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ETCF is funded by the European Union
Stakeholder Analysis
Why stakeholder analysis/participation in PCM?
 allows key interest groups to be identified & involved
 Will allow different expectations to be identified
 Will allow mobilisation of different resources essential for
the project: information, financial, human, legitimacy
 shows how different stakeholders perceive reality
 highlights different needs
 helps identify potential conflicts/risks
 supports appropriate objective setting, strategy selection
and targeting of benefits
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ETCF is funded by the European Union
Stakeholder Analysis
Tools include:
 Stakeholder matrix (interests, roles, capacities etc)
 Focus Groups and facilitated discussions
 SWOT analysis (strengths, weaknesses, opportunities,
threats)
 Venn Diagrams (relationships between stakeholders)
 Organisation charts (formal lines of authority &
responsibility)
 Gender analysis (tasks, responsibilities, time allocation)
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ETCF is funded by the European Union
Problem Analysis
The problem tree establishes cause and effect to ensure
that root problems are identified and then addressed.
Main steps are:
1. Identify one or two (initial) major problem(s) affecting the
target group(s) in terms of their livelihood and/or access to
services
2. Identify related problems/constraints
3. Analyse and identify cause and effect relationships
4. Check the logic
5. Draft the problem tree diagram
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ETCF is funded by the European Union
Problem Analysis
The problem tree helps to establish the cause/effect
relation between problems
EFFECTS
Income of artisanal
fishers in decline
Reduction of the
fish resources
Destruction of the
natural habitat and
mangroves
Low selling prices for
fishers in the
villages
Illegal fishing
practices
Poor quality of
the catch
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Limited access to
market
CAUSES
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ETCF is funded by the European Union
Analysis of Objectives
Convert the problems into positive achievements through
means/ends relationships
ENDS
Income of
artisanal fishers
increased
Depletion of the natural
fish stock reduced or
stopped
Natural habitats of
fish resources
protected
Illegal fishing
practices significantly
reduced
Selling price for
fishers
increased
Processing of the
catch improved
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Access to
MEANS
markets improved
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ETCF is funded by the European Union
Strategy Analysis
It aims to:
• Analyse the identified (potential)
objectives in relation to a set of
‘feasibility’ criteria;
• Select an appropriate strategy for
project implementation
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ETCF is funded by the European Union
SOME POSSIBLE CRITERIA
Strategy Analysis
Availability of
financial
resources,
expertise, etc.
Complementaritie
s with projects
financed by other
donors
Contribution to
the reduction of
inequalities
(e.g. gender)
Relevance for the
EC/partner
country agreed
strategy
(CSP/NIP)
Importance
given by the
target group
Existing
potentials and
capacities (of
target group)
Urgency
Social
acceptability
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Out of the project
In the project
These excluded
statements should
be considered in
the analysis of
assumptions/risks
Depletion of the
natural fish stock
reduced or stopped
Natural habitats of
halieuticresources
protected
OVERALL
OBJECTIVE
Income of the
artisanal
artisan fishers
fishers
increased
Selling price for the
fishers increased
Illegal fishing
practices significantly
reduced
Processing of the
catch improved
Access to the
markets improved
PURPOSE
RESULTS
Fish stock control strategy
Market orientation strategy
Decision based on policy priorities, budget, human resources, urgency,
social acceptability, etc
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ETCF is funded by the European Union
LFA - Planning Stage
 Logical Framework Matrix
 Activity scheduling
 Resource scheduling
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ETCF is funded by the European Union
The Logframe Matrix
Project
Description
Verifiable
indicators
Sources of
verification
Assumptions
Overall
objective
Project
purpose
Results
Activities
means
costs
Note: As each part of the matrix is formulated, the logic of
other parts should be tested and refined/revised, as required.
An ‘iterative’ process.
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Preconditions
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ETCF is funded by the European Union
Logframe Matrix: sequence of completion
Project
Description
Verifiable
indicators
Sources of
verification
Assumptions
Overall
objective
1
8
9
Project
purpose
2
10
11
Results
3
12
13
7
Activities
4
means
costs
6
Pre-conditions
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ETCF is funded by the European Union
Project Description Levels
Overall
objective
Relate to the wider sectoral or national
objective, to which the project will
contribute;
Project
purpose
The sustainable flow of benefits to the
project’s target groups(s);
Results
The goods and services delivered by the
project;
Activities
What the project does to produce the
results (work program/tasks).
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ETCF is funded by the European Union
Assumptions
An assumption is a condition :
 required for project success;
 which is not under the control of project
management; and
 which will need to be monitored
Assumptions provide the basis on which
further risk analysis is carried out.
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ETCF is funded by the European Union
Assumptions
Assumptions may relate to such concerns as:
 The actions of other stakeholders not directly involved
in project management
 The response of target groups to the project’s services
 Effective donor coordination and timely fund
disbursement
 Price movements for project inputs or outputs
 Changes in relevant government policies
Note: Assumptions are written as positive statements
while risks are written as negative statements
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ETCF is funded by the European Union
Is the assumption
important?
Yes
No
Will it hold true?
Almost certainly
Do not include in the logframe
Possibly
Include as an assumption
Very unlikely
Is it possible to redesign the project
in order to influence the external factor?
Yes
Redesign the project by adding
activities or results; reformulate the
project purpose if necessary
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No
The project is not feasible
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ETCF is funded by the European Union
Objectively Verifiable Indicators (OVI)
OVIs should be SMART!

Specific: including clear targets;
Measurable: in terms of quality and/or quantity;
Available: at an acceptable cost;
Relevant: to what they are supposed to measure

Timely: produced in due time to be useful for project



(horizontal logic);
management.
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ETCF is funded by the European Union
Sources of Verification (SOV)
The logical framework requires that one spells out
how the indicators will be collected:
• Which methods?
• By whom?
• When/how often?
Admin records
External sources
Activities, resources and costs required to collect this information
must be included in the project design
Project managers should focus on verifying the delivery of results
and their contribution to the purpose
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ETCF is funded by the European Union
Sources of Verification
Cost
Specialised
surveys
Interviews with
beneficiaries
Adapted available
statistics
Management
reports
Administrative
reports
Available
statistics
Complexity
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ETCF is funded by the European Union
OVI & SOV - Example
Project
Description
Overall
Objective
Project
purpose
Results
Living conditions
of local people
improved
River water quality
improved
Direct discharge of
Wastewater by houseHolds and factories
decreased
Objectively
Verifiable
Indicators
Income from fish catch
increases 30% by 2006
Tourism revenue up by
30% by 2006
Fish consumption
related disease rate
down 80% by 2006
Fish catch up 80% until
2006 (with stable stock)
70% factory wastewater
& 80% household
wastewater treated
by 2008
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Sources of
Verification
Socio-economic survey
Report of Ministry of
Economic Affairs
Regional hospital and
medical statistics
Reports of River
Authority and
Cooperatives
Survey report of
Municipalities
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ETCF is funded by the European Union
Link between Logframe and Evaluation
Overall objectives
Project purpose
Results
Activities
Means
Problematic Situation
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ETCF is funded by the European Union
LFA: Avoiding Common Problems
 emphasise the importance of the LFA process as much
as the matrix product;
 ensure stakeholders participate in the analytical process;
 treat the matrix as a presentational summary – clear
and concise;
 refine and revise the matrix as new information comes
to light; and
 do not place too much emphasis on detailed target
specification within the matrix during the planning
stages.
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ETCF is funded by the European Union
From the LF to Operational Planning
Logframe
Workplan
Workplan
Workplan
Results-based activities, resource schedules and budgets
Budget
Budget
Resource
Schedule
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Budget
Salaries
Allowances
Vehicle Op.
Office
Tel/Fax
Seeds
Fertiliser
5000
1250
3750
750
400
850
2300
5500
1750
4250
750
400
1100
3100
5500
1750
4250
750
400
1100
3100
5500
1750
4250
750
400
1100
3100
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ETCF is funded by the European Union
Project Preparation – basis for
implementation
 PMC approach, the project fiche and the log
frame help prepare the project for approval
 …but approval of the project is just the start….
 The tools also provide a framework for project
implementation
 Managers have a vital role to ensure successful
implementation
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ETCF is funded by the European Union
Project Implementation
 Poorly prepared and designed projects are more
likely to fail
 Failure means they are unlikely to achieve their
objectives – so the money is essentially wasted
 Failed projects can undermine the whole
programme or sector of intervention
 Failed projects can undermine the credibility of
institutions
 ….but no project turns out totally as envisaged
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ETCF is funded by the European Union
Project Implementation
 Monitoring and evaluation is essential
 Monitoring of inputs (EU is keen on this) – for
example expert inputs, construction materials etc
 Financial monitoring – important! – overall
absorption, cash flow, co financing
 Monitoring of outputs – e.g. number of people
trained, kilometres of highway built
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ETCF is funded by the European Union
Project Implementation
 Evaluation is also essential
• Ex ante evaluation prior to project approval
• Mid term (during implementation)
• Ex post (after completion)
 Evaluation against achievement of long term
objectives through results / impact
 Qualitative / quantitative approaches
 Importance of base line data, indicators and
information
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ETCF is funded by the European Union
Project Implementation
 Monitoring and evaluation – key points
 Monitoring and evaluation follows logic of LFA
 Provides a management tool and shouldn’t be
seen as a threat
 No projects go exactly as planned
 Variance analysis is key – why are there
differences – when to intervene
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ETCF is funded by the European Union
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ETCF is funded by the European Union
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ETCF is funded by the European Union
WEB LINK
http://ec.europa.eu/europeaid/multimedia/publications/publications/
manuals-tools/t101_en.htm
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ETCF is funded by the European Union
Other important project links
 EU procurement Rules (PRAG)
http://ec.europa.eu/europeaid/work/procedures/
implementation/practical_guide/
 CFCU
http://www.cfcu.gov.tr/
 EC Delegation
http://www.avrupa.info.tr/DelegasyonPortal.html
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ETCF is funded by the European Union
Teşekkür Ederim!
Thank you!
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