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INTRODUCTION TO PROJECT CYCLE MANAGEMENT (PCM) E
TCF Info Days Ankara, March 3rd 2008
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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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What is PCM?
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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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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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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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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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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 Project Application
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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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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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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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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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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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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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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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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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Format and documentation

• A basic format is used for documents produced
  during the project cycle, following the core
  logic of the LFA approach.
• Summary
• Background
• Sectoral and problem analysis
• Project / programme description
• Assumptions, Risks
• Implementation arrangements
• Quality factors
• Annex Logframe (complete / outline as suits
  phase)

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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

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Introduction to Logical Framework Approach
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Merging PCM and LFA
Logframe Approach A methodology for planning,
managing and evaluating programmes and projects,
using tools which promote systematic analysis,
stakeholder participation and structured
documentation
Project Cycle Management Defines different phases
in the life of a project with well defined
management activities and decision making
procedures
PCM The decision making and implementation
process defined by the organisation
LFA Project management method and tools
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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
Objectives aimed at
Results obtained
Activities implemented
Results obtained
Necessary means
Activities implemented
Means-related costs
Necessary means
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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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LFA Project Design
PLANNING STAGE
ANALYSIS 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?

• 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.

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LFA Project Implementation
EVALUATION
IMPLEMENTATION

• Indicators which provide management information
  (monitoring and regular review)
• Assumptions which support risk management
• Updated activity schedules linked to results
• Updated resource schedules and budgets linked to
  results

• A clear situation/problem analysis to help
  evaluate relevance
• Objective structure and indicators against which
  to evaluate impact and effectiveness
• Activity and resource schedules to assist in
  evaluating efficiency

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LFA - Analysis Stage

• Stakeholder analysis
• Problem analysis
• Objective analysis
• Strategy analysis

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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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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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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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Problem Analysis

• The problem tree establishes cause and effect to
  ensure that root problems are identified and
  then addressed.
• Main steps are
• Identify one or two (initial) major problem(s)
  affecting the target group(s) in terms of their
  livelihood and/or access to services
• Identify related problems/constraints
• Analyse and identify cause and effect
  relationships
• Check the logic
• Draft the problem tree diagram

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Problem Analysis
The problem tree helps to establish the
cause/effect relation between problems
EFFECTS
Income of artisanal
fishers in decline
Reduction of the
Low selling prices for
fish resources
fishers in the
villages
Destruction of the
Illegal fishing
Poor quality of
Limited access to
CAUSES
natural habitat and
practices
the catch
market
mangroves
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Analysis of Objectives
Convert the problems into positive achievements
through means/ends relationships
ENDS
Income
of
artisanal fishers
increased
Depletion of the natural
Selling price for
fish stock reduced or
fishers
stopped
increased
MEANS
Natural habitats of
Illegal fishing
Processing of the
Access to
fish resources
practices significantly
catch improved
markets improved
protected
reduced
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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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Strategy Analysis
SOME POSSIBLE CRITERIA
Availability of financial resources, expertise,
etc.
Complementarities with projects financed by other
donors
Importance given by the target group
Contribution to the reduction of inequalities
(e.g. gender)
Existing potentials and capacities (of target
group)
Urgency
Social acceptability
Relevance for the EC/partner country agreed
strategy (CSP/NIP)
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OVERALL OBJECTIVE
These excluded statements should be considered in
the analysis of assumptions/risks
Income of the
Income of the
artisan fishers
artisanal fishers
increased
increased
Depletion of the
PURPOSE
Selling price for the
natural fish stock
fishers increased
reduced or stopped
RESULTS
Natural habitats of
Illegal fishing
Processing of the
Processing of the
halieutic
resources
practices significantly
catch improved
catch improved
protected
reduced
Fish stock control strategy
Market orientation strategy
Decision based on policy priorities, budget,
human resources, urgency, social acceptability,
etc
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LFA - Planning Stage

• Logical Framework Matrix
• Activity scheduling
• Resource scheduling

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The Logframe Matrix
Project Description
Verifiable indicators
Sources of verification
Assumptions
Overall objective
Project purpose
Results

means
costs
Activities
Pre- conditions
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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Logframe Matrix sequence of completion
Project Description
Verifiable indicators
Sources of verification
Assumptions
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9
1
Overall objective
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10
2
Project purpose
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13
7
3
Results
6

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means
costs
Activities
Pre-conditions 5
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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
projects 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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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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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 projects
  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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Is
the
assumption
important
?
Will it hold true
?
Almost certainly
Possibly
Very unlikely
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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
  (horizontal logic)
• Timely produced in due time to be useful for
  project management.

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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
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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Sources of Verification
Specialised surveys
Cost
Interviews with beneficiaries
Adapted available statistics
Available statistics
Management reports
Administrative reports
Complexity
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OVI SOV - Example
Objectively Verifiable Indicators
Project Description
Sources of Verification
Living conditions of local people improved
Income from fish catch increases 30 by
2006 Tourism revenue up by 30 by 2006
Socio-economic survey Report of Ministry of
Economic Affairs
Overall Objective
Fish consumption related disease rate down 80
by 2006 Fish catch up 80 until 2006 (with
stable stock)
Regional hospital and medical
statistics Reports of River Authority and
Cooperatives
River water quality improved
Project purpose
Direct discharge of Wastewater by house- Holds
and factories decreased
70 factory wastewater 80 household
wastewater treated by 2008
Survey report of Municipalities
Results
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Link between Logframe and Evaluation
impact
effectiveness
Sustainability
efficiency
relevance
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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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From the LF to Operational Planning
Logframe
Results-based activities, resource schedules and
budgets
Resource Schedule
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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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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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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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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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Project Implementation

• Monitoring and evaluation key points
• Monitoring and evaluation follows logic of LFA
• Provides a management tool and shouldnt 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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WEB LINKhttp//ec.europa.eu/europeaid/multimedia
/publications/publications/manuals-tools/t101_en.h
tm
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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/Delegasyon
  Portal.html

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• Tesekkür Ederim!
• Thank you!