eu project managment
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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
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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 :
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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
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EVALUATION & AUDIT
The Project Cycle
IMPLEMENTATION
STRATEGY
IDENTIFICATION & FORMULATION
COMMITMENT
PROJECT DEVELOPMENT
PREPARATION APPRAISAL&
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EVALUATION & AUDIT
The Project Cycle
IMPLEMENTATION
STRATEGY
IDENTIFICATION & FORMULATION
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
&
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EVALUATION & AUDIT
The Project Cycle
IMPLEMENTATION
STRATEGY
IDENTIFICATION & FORMULATION
COMMITMENT
PROJECT DEVELOPMENT
PREPARATION APPRAISAL
IDENTIFICATION & FORMULATION
• 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.
&
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EVALUATION & AUDIT
The Project Cycle
IMPLEMENTATION
STRATEGY
IDENTIFICATION & FORMULATION
COMMITMENT
PROJECT DEVELOPMENT
PREPARATION APPRAISAL
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
&
PCM – Project Cycle Management 9Presentation by George Kostaras
EVALUATION & AUDIT
The Project Cycle
IMPLEMENTATION
STRATEGY
IDENTIFICATION & FORMULATION
COMMITMENT
PROJECT DEVELOPMENT
PREPARATION APPRAISAL
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.
&
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EVALUATION & AUDIT
The Project Cycle
IMPLEMENTATION
STRATEGY
IDENTIFICATION & FORMULATION
COMMITMENT
PROJECT DEVELOPMENT
PREPARATION APPRAISAL
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.
&
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EVALUATION & AUDIT
The Project Cycle
IMPLEMENTATION
STRATEGY
IDENTIFICATION & FORMULATION
COMMITMENT
PROJECT DEVELOPMENT
PREPARATION APPRAISAL
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.
&
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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
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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
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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
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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
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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
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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
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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.
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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
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Logical Framework Approach
Fundamental Logic:
1. Co-operation with the beneficiaries from the very beginning
2. Problem and needs based approach
3. Objective oriented approach
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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
♦
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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.
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Stakeholder Analysis
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 :
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Stakeholder Analysis
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’).
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Stakeholder Analysis
Tools for Supporting SA
1. Stakeholder Analysis Matrix
2. SWOT analysis
3. Venn diagrams; and
4. Spider diagrams
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Stakeholder Matrix
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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
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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.
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Problem Tree
Cause
Effect
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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
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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
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Objectives Analysis
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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
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Strategy Analysis
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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
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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
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HOW TO Complete the LFM
Completion Sequence
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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
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Recall the “Objectives Tree”
Use reference numbers toclearly link inputs, activities
and results.
Objective statements
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Tangible outcome
Active VerbsPresent Tense
Benefit Not a SUM of RESULTS !!!
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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
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Assumptions
Completion Sequence
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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
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• 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
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Assumptions
Assumptions and objective hierarchy
Assumptions Algorithm
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Assumptions
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Indicators
Completion Sequence
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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?
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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.
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Sources of Verification
Completion Sequence
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• 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
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Example of OVIs
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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
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Link with the Logframe
Activity & Resource Scheduling
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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
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Use of the LFA during PCM Stages
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
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Use of the LFA during PCM Stages
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
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Use of the LFA during PCM Stages
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