Eu project managment

Compostela Seminar:
“EU Projects and Mobility Opportunities”

Project Cycle Management

Presentation by George Kostaras
National Technical University of Athens

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

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

PCM – Project Cycle Management Presentation by George Kostaras 2

Contents

In a nutshell :
1. Project Cycle Management (PCM)
2. Logical Framework Approach (LFA)
3. The Logical Framework Matrix (LFM)
4. Elaborating the LFM … HOW-TO
5. Discussion


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


The Project Cycle

PROJECT DEVELOPMENT

STRATEGY

EVALUATION & AUDIT IDENTIFICATION & FORMULATION

PREPARATION & APPRAISAL
IMPLEMENTATION
COMMITMENT


The Project Cycle

PROJECT DEVELOPMENT
STRATEGY
• Analyse situation at national and
sectoral level. Identify problems,
constraints and opportunities; STRATEGY
• Identify main objectives and sectoral
priorities for development cooperation;
EVALUATION & AUDIT
• Provide a relevant and feasible
IDENTIFICATION & FORMULATION
programming framework within which
projects can be identified and prepared;
• Formulate / evaluate strategies taking
account of past experience

IMPLEMENTATION
COMMITMENT


The Project Cycle

PROJECT DEVELOPMENT

• Identify ideas for projects and other STRATEGY
development actions
• Consult intended beneficiaries of each
EVALUATION & AUDIT problems they face and
action, analyse IDENTIFICATION & FORMULATION
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 PREPARATION & APPRAISAL
operational project plans.
IMPLEMENTATION
• Assess feasibility and sustainability
• Make decision whether to draw up a COMMITMENT
formal project proposal and seek
funding for the project.


The Project Cycle

PROJECT DEVELOPMENT

STRATEGY

EVALUATION & AUDIT
PREPARATION & APPRAISAL IDENTIFICATION & FORMULATION
• Specify objectives, inputs and outputs
• Assess impact and sustainability
• Assess environmental, social and
gender issues
• Review of the prepared project for PREPARATION & APPRAISAL
institutional capacity, costs and benefits
IMPLEMENTATION
• Prepare TOR and Endorsement
Statements COMMITMENT
• Receive approval by partner institution


The Project Cycle

PROJECT DEVELOPMENT

STRATEGY

EVALUATION & AUDIT IDENTIFICATION & FORMULATION
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
IMPLEMENTATION a legal document
and formalise these in
which sets out the arrangements by
which the project will be funded and COMMITMENT
implemented.


The Project Cycle

PROJECT DEVELOPMENT

STRATEGY
IMPLEMENTATION
EVALUATION & AUDIT • Project is mobilised and IDENTIFICATION & FORMULATION
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
PREPARATION
bring it back on track, or to modify some
& APPRAISAL
IMPLEMENTATION of its objectives in the light of significant
changes that may have occurred since
COMMITMENT
its formulation.


The Project Cycle

PROJECT DEVELOPMENT
EVALUATION & AUDIT
• Funding agency and partners assess
the project to identify whatSTRATEGY
has been
achieved, and to identify lessons that
have been learned. Evaluation findings
are used to improve the design of future
EVALUATION & AUDIT or programmes.
projects
• 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.
IMPLEMENTATION
COMMITMENT


The Project Cycle Management

Definition
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


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 early
stage
problem analysis is thorough
objectives are clearly stated in terms of benefits to target groups


PCM Objectives - Feasibility

Feasibility
Projects 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

Sustainability
Projects 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 strategies
3. Design of the project strategy
4. Planning of implementation
5. 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

♦ Stakeholder analysis - identifying ♦ Logframe - defining the project
& characterising potential major structure, testing its internal
stakeholders; assessing their logic, and formulating objectives
capacity in measurable terms
♦ Problem analysis - identifying key
problems, constraints and ♦ Activity scheduling
opportunities; determining cause determining the sequence and
and effect relationships dependency of activities;
estimating duration, setting
♦ Analysis of objectives- developing
milestones and assigning
objectives from the identified
responsibility
problems; identifying means to end
relationships
♦ Input and cost scheduling
♦ Strategy analysis - identifying the from the activity schedule,
different strategies to achieve developing input schedules and
objectives; determining the overall a budget
objectives and project purpose

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.



Key Steps :
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



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

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

Main Steps :
1. Identification of the major problems faced by beneficiaries
2. Development of a problem tree to establish causes & effects


Problem Tree

Establishes cause and effect relationships to ensure that root
problems are identified and then addressed. Should ideally be
undertaken as a participatory group event.
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 above
Problems causing the starter problem are put below
Causes 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.


Problem Tree

Effect

Cause


Objectives Analysis

Analysis of objectives presents the positive aspects
of 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 Tree Objectives Tree
Elements Elements

“River water quality “River water quality
is deteriorating” is improved”

“Pollution has been “Pollution Management
a low political priority” is given a high
Political priority”


Objectives Analysis

Ends

Means

PCM – Project Cycle Management

Strategy Analysis

Consists of:
Analysing clusters of objectives to be included in the
project
Analysing the feasibility, costs and benefits of different
interventions
Choosing 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

Strategy Criteria
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


Logframe Matrix

Key Characteristics
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


HOW TO Complete the LFM

Completion Sequence


The Logframe Matrix

The Intervention Logic
if the
if the then the project will
then the project will
PROJECT PURPOSE contribute towards the
contribute towards the
is is achieved
achieved OVERALL OBJECTIVE
OVERALL OBJECTIVE

then the
then the
if if RESULTS
RESULTS
PROJECT PURPOSE
PROJECT PURPOSE
are produced
are produced will be achieved
will be achieved

ififACTIVITIES
ACTIVITIES then RESULTS
then RESULTS
can be undertaken will be produced
will be produced

if if MEANS
MEANS then ACTIVITIES
then ACTIVITIES
are provided can be undertaken
can be undertaken


Recall the “Objectives Tree” Reference Numbers
Use reference numbers to
clearly link inputs, activities
and results.


Objective statements

Benefit
Not a SUM of RESULTS !!!

Tangible
outcome

Active Verbs
Present Tense


Interlocking LFMs

Results or Purpose…or Objectives ?

The concept of ‘interlocking’ or ‘nested’ Logframes
can 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


Assumptions

• 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 marginal
importance.

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


Assumptions

Assumptions and objective hierarchy


Assumptions Algorithm


Assumptions


Indicators

Completion Sequence


Indicators
Why OVIs?

Objectively Verifiable Indicators describe the
overall objective(s), project purpose, results and
activities in operationally measurable terms
They help us in monitoring projects and assessing
success / performance in achieving goals
They specify the quantity and quality (targets) of
the intervention logic elements.


Indicators
OVIs should be OVIs !

…and S.M.A.R.T.

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


Sources of Verification

Completion Sequence


Sources of Verification

• 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.)


Example of OVIs


Activity & Resource Scheduling

Once the Logframe matrix itself is complete, it is then
possible 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


Activity & Resource Scheduling

Link with the Logframe


Use of the LFA during PCM Stages

During FORMULATION
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 IMPLEMENTATION
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 EVALUATION & AUDIT
The LFM provides a framework for evaluation, given that it clearly specifies what
was to be achieved (namely results and purpose), how these achievements were
to be verified (Indicators and Means of Verification) and what the key
assumptions were.
The LFM provides a structure for preparing TOR for Evaluation studies and for
performance audits.



During EVALUATION & AUDIT


Compostela Seminar:
“EU Projects and Mobility Opportunities”

End of Presentation

Thank you for your Attention !

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

Eu project managment

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Eu project managment

Ähnlich wie Eu project managment (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Eu project managment