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ETCF is funded by the European Union INTRODUCTION TO PROJECT CYCLE MANAGEMENT (PCM) ETCF – Info Days Ankara, March 3rd 2008 Project implemented by Eurochambres & TOBB 1 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 Project implemented by Eurochambres & TOBB 2 ETCF is funded by the European Union What is PCM? Programming Evaluation Identification Implementation Formulation Financing Project implemented by Eurochambres & TOBB 3 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 Project implemented by Eurochambres & TOBB 4 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 Project implemented by Eurochambres & TOBB 5 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 Project implemented by Eurochambres & TOBB 6 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 Project implemented by Eurochambres & TOBB 7 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! Project implemented by Eurochambres & TOBB 8 ETCF is funded by the European Union ETCF Project Application Current stage of ETCF Grant Scheme Project implemented by Eurochambres & TOBB 9 ETCF is funded by the European Union Project implemented by Eurochambres & TOBB 10 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 Project implemented by Eurochambres & TOBB 11 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 Project implemented by Eurochambres & TOBB 12 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 Project implemented by Eurochambres & TOBB 13 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!) Project implemented by Eurochambres & TOBB 14 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 Project implemented by Eurochambres & TOBB 15 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 Project implemented by Eurochambres & TOBB 16 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 Project implemented by Eurochambres & TOBB 17 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. Project implemented by Eurochambres & TOBB 18 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) Project implemented by Eurochambres & TOBB 19 ETCF is funded by the European Union PCM and team building 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 Project implemented by Eurochambres & TOBB 20 ETCF is funded by the European Union Introduction to Logical Framework Approach Project implemented by Eurochambres & TOBB 21 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 Project implemented by Eurochambres & TOBB 22 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 Project implemented by Eurochambres & TOBB 23 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 Project implemented by Eurochambres & TOBB 24 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? Project implemented by Eurochambres & TOBB 25 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 Project implemented by Eurochambres & TOBB 26 ETCF is funded by the European Union LFA - Analysis Stage Stakeholder analysis Problem analysis Objective analysis Strategy analysis Project implemented by Eurochambres & TOBB 27 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) Project implemented by Eurochambres & TOBB 28 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 Project implemented by Eurochambres & TOBB 29 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) Project implemented by Eurochambres & TOBB 30 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 Project implemented by Eurochambres & TOBB 31 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 Project implemented by Eurochambres & TOBB Limited access to market CAUSES 32 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 Project implemented by Eurochambres & TOBB Access to MEANS markets improved 33 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 Project implemented by Eurochambres & TOBB 34 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 Project implemented by Eurochambres & TOBB 35 ETCF is funded by the European Union 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 Project implemented by Eurochambres & TOBB 36 ETCF is funded by the European Union LFA - Planning Stage Logical Framework Matrix Activity scheduling Resource scheduling Project implemented by Eurochambres & TOBB 37 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. Project implemented by Eurochambres & TOBB Preconditions 38 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 Project implemented by Eurochambres & TOBB 5 39 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). Project implemented by Eurochambres & TOBB 40 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. Project implemented by Eurochambres & TOBB 41 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 Project implemented by Eurochambres & TOBB 42 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 Project implemented by Eurochambres & TOBB No The project is not feasible 43 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. Project implemented by Eurochambres & TOBB 44 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 Project implemented by Eurochambres & TOBB 45 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 Project implemented by Eurochambres & TOBB 46 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 Project implemented by Eurochambres & TOBB 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 47 ETCF is funded by the European Union Link between Logframe and Evaluation Overall objectives Project purpose Results Activities Means Problematic Situation Project implemented by Eurochambres & TOBB 48 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. Project implemented by Eurochambres & TOBB 49 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 Project implemented by Eurochambres & TOBB 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 50 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 Project implemented by Eurochambres & TOBB 51 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 Project implemented by Eurochambres & TOBB 52 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 Project implemented by Eurochambres & TOBB 53 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 Project implemented by Eurochambres & TOBB 54 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 Project implemented by Eurochambres & TOBB 55 ETCF is funded by the European Union Project implemented by Eurochambres & TOBB 56 ETCF is funded by the European Union Project implemented by Eurochambres & TOBB 57 ETCF is funded by the European Union WEB LINK http://ec.europa.eu/europeaid/multimedia/publications/publications/ manuals-tools/t101_en.htm Project implemented by Eurochambres & TOBB 58 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 Project implemented by Eurochambres & TOBB 59 ETCF is funded by the European Union Teşekkür Ederim! Thank you! Project implemented by Eurochambres & TOBB 60