INTRODUCTION TO PROJECT CYCLE MANAGEMENT ( PCM ) ETCF – Info Days Ankara, March 3 rd 2008

1. INTRODUCTION TO PROJECT CYCLE MANAGEMENT (PCM) ETCF – Info Days Ankara, March 3rd 2008 Project implemented by Eurochambres & TOBB

2. 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

3. Whatis PCM? Project implemented by Eurochambres & TOBB

4. 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

5. Whatis 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

6. 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

7. 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

8. 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

9. Current stage of ETCF Grant Scheme ETCF Project Application Project implemented by Eurochambres & TOBB

10. Project implemented by Eurochambres & TOBB

11. WhatisaPROJECT? • 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

12. WhatisaPROJECT? 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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) Project implemented by Eurochambres & TOBB

20. 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

21. Introduction to Logical Framework Approach Project implemented by Eurochambres & TOBB

22. 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 Project implemented by Eurochambres & TOBB

23. 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

24. 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

25. 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. LFA & Project Design ANALYSIS STAGE PLANNING STAGE Project implemented by Eurochambres & TOBB

26. LFA & Project Implementation IMPLEMENTATION EVALUATION • 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 Project implemented by Eurochambres & TOBB

27. LFA - Analysis Stage • Stakeholder analysis • Problem analysis • Objective analysis • Strategy analysis Project implemented by Eurochambres & TOBB

28. 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

29. 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

30. 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

31. 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 Project implemented by Eurochambres & TOBB

32. 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 Project implemented by Eurochambres & TOBB

33. 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 Project implemented by Eurochambres & TOBB

34. 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

35. 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 Relevance for the EC/partner country agreed strategy (CSP/NIP) Social acceptability Project implemented by Eurochambres & TOBB

36. Access to the Access to the markets improved markets improved These excluded statements should be considered in the analysis of assumptions/risks OVERALL OBJECTIVE Income of the Income of the artisanal fishers artisan 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 Project implemented by Eurochambres & TOBB

37. LFA - Planning Stage • Logical Framework Matrix • Activity scheduling • Resource scheduling Project implemented by Eurochambres & TOBB

38. 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. Project implemented by Eurochambres & TOBB

39. Logframe Matrix: sequence of completion Project Description Verifiable indicators Sources of verification Assumptions 8 9 1 Overall objective 11 10 2 Project purpose 7 12 13 3 Results 6 4 means costs Activities Pre-conditions 5 Project implemented by Eurochambres & TOBB

40. 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

41. 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

42. 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

43. Is the assumption important ? Will it hold true ? Almost certainly Possibly Very unlikely Project implemented by Eurochambres & TOBB

44. 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. Objectively Verifiable Indicators(OVI) Project implemented by Eurochambres & TOBB

45. 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 Project implemented by Eurochambres & TOBB

46. Sources of Verification Specialised surveys Cost Interviews with beneficiaries Adapted available statistics Available statistics Management reports Administrative reports Complexity Project implemented by Eurochambres & TOBB

47. 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 Project implemented by Eurochambres & TOBB

48. Overall objectives Project purpose Results Activities Means Problematic Situation Link between Logframe and Evaluation impact effectiveness Sustainability efficiency relevance Project implemented by Eurochambres & TOBB

49. 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

50. Workplan Budget Budget Workplan Budget Workplan 5500 1750 4250 750 400 1100 3100 5500 1750 4250 750 400 1100 3100 Salaries Allowances Vehicle Op. Office Tel/Fax Seeds Fertiliser 5000 5500 1250 1750 3750 4250 750 750 400 400 850 1100 2300 3100 From the LF to Operational Planning Logframe Results-based activities, resource schedules and budgets Resource Schedule Project implemented by Eurochambres & TOBB