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

ETCF is funded by the European Union 2 Project implemented by Eurochambres & TOBB OUTLINE  Introduction to the idea of PCM  Understand why PCM provides a context for project preparation and implementation  Presentation on logical framework

ETCF is funded by the European Union 3 Project implemented by Eurochambres & TOBB What is PCM?

ETCF is funded by the European Union 4 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 5 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 6 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 7 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 8 Project implemented by Eurochambres & TOBB 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!

ETCF is funded by the European Union 9 Project implemented by Eurochambres & TOBB ETCF Project Application Current stage of ETCF Grant Scheme

ETCF is funded by the European Union 10 Project implemented by Eurochambres & TOBB

ETCF is funded by the European Union 11 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 12 Project implemented by Eurochambres & TOBB 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 What is a PROJECT ?

ETCF is funded by the European Union 13 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 14 Project implemented by Eurochambres & TOBB 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!)

ETCF is funded by the European Union 15 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 16 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 17 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 18 Project implemented by Eurochambres & TOBB 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.

ETCF is funded by the European Union 19 Project implemented by Eurochambres & TOBB 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)

ETCF is funded by the European Union 20 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 21 Project implemented by Eurochambres & TOBB Introduction to Logical Framework Approach

ETCF is funded by the European Union 22 Project implemented by Eurochambres & TOBB PCM The decision making and implementation process defined by the organisation Merging PCM and LFA Project Cycle Management Defines different phases in the life of a project with well defined management activities and decision making procedures Logframe Approach A methodology for planning, managing and evaluating programmes and projects, using tools which promote systematic analysis, stakeholder participation and structured documentation LFA Project management method and tools

ETCF is funded by the European Union 23 Project implemented by Eurochambres & TOBB 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 Necessary means Objectives aimed at Means-related costs Results obtained Activities implemented Results obtained Problems to be solved Activities implemented Necessary means

ETCF is funded by the European Union 24 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 25 Project implemented by Eurochambres & TOBB òLF Matrix - defining project structure, testing its internal logic & risks, formulating measurable indicators of success òActivity scheduling – when will the activities be carried out? òResource scheduling – what resources will be needed? LFA & Project Design òStakeholder analysis - identifying & characterising potential major stakeholders; assessing their capacity òProblem analysis - identifying key problems, constraints & opportunities; determining cause & effect relationships òObjective analysis - developing solutions from the identified problems; identifying means to end relationships òStrategy analysis - identifying different strategies to achieve solutions; selecting most appropriate strategy. PLANNING STAGEANALYSIS STAGE

ETCF is funded by the European Union 26 Project implemented by Eurochambres & TOBB EVALUATION LFA & Project Implementation IMPLEMENTATION òIndicators which provide management information (monitoring and regular review) òAssumptions which support risk management òUpdated activity schedules linked to results òUpdated resource schedules and budgets linked to results òA clear situation/problem analysis to help evaluate relevance òObjective structure and indicators against which to evaluate impact and effectiveness òActivity and resource schedules to assist in evaluating efficiency

ETCF is funded by the European Union 27 Project implemented by Eurochambres & TOBB LFA - Analysis Stage òStakeholder analysis òProblem analysis òObjective analysis òStrategy analysis

ETCF is funded by the European Union 28 Project implemented by Eurochambres & TOBB 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)

ETCF is funded by the European Union 29 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 30 Project implemented by Eurochambres & TOBB 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)

ETCF is funded by the European Union 31 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 32 Project implemented by Eurochambres & TOBB Problem Analysis EFFECTS CAUSES The problem tree helps to establish the cause/effect relation between problems Reduction of the fish resources Low selling prices for fishers in the villages Income of artisanal fishers in decline Destruction of the natural habitat and mangroves Illegal fishing practices Poor quality of the catch Limited access to market

ETCF is funded by the European Union 33 Project implemented by Eurochambres & TOBB Analysis of Objectives ENDS MEANS Convert the problems into positive achievements through means/ends relationships Depletion of the natural fish stock reduced or stopped Selling price for fishers increased Incomeof artisanal fishers increased Natural habitats of fish resources protected Illegal fishing practices significantly reduced Processing of the catch improved Access to markets improved

ETCF is funded by the European Union 34 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 35 Project implemented by Eurochambres & TOBB Strategy Analysis Urgency Importance given by the target group Contribution to the reduction of inequalities (e.g. gender) Social acceptability Complementaritie s with projects financed by other donors Relevance for the EC/partner country agreed strategy (CSP/NIP) Existing potentials and capacities (of target group) Availability of financial resources, expertise, etc. SOME POSSIBLE CRITERIA

ETCF is funded by the European Union 36 Project implemented by Eurochambres & TOBB Depletion of the natural fish stock reduced or stopped Selling price for the fishers increased Income of the artisan fishers increased Income of the artisanal fishers increased Natural habitats of halieuticresources protected Illegal fishing practices significantly reduced Processing of the catch improved Processing of the catch improved Access to the markets improved Access to the markets improved Decision based on policy priorities, budget, human resources, urgency, social acceptability, etc Fish stock control strategyMarket orientation strategy PURPOSE OVERALL OBJECTIVE RESULTS These excluded statements should be considered in the analysis of assumptions/risks

ETCF is funded by the European Union 37 Project implemented by Eurochambres & TOBB LFA - Planning Stage òLogical Framework Matrix òActivity scheduling òResource scheduling

ETCF is funded by the European Union 38 Project implemented by Eurochambres & TOBB The Logframe Matrix Pre-conditions Project Description Verifiable indicators Sources of verification Assumptions Overall objective Project purpose Results Activities meanscosts 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.

ETCF is funded by the European Union 39 Project implemented by Eurochambres & TOBB Logframe Matrix: sequence of completion Pre-conditions5 6 7 Project Description Verifiable indicators Sources of verification Assumptions Overall objective Project purpose Results Activities meanscosts

ETCF is funded by the European Union 40 Project implemented by Eurochambres & TOBB Project Description Levels Relate to the wider sectoral or national objective, to which the project will contribute; The sustainable flow of benefits to the project’s target groups(s); The goods and services delivered by the project; What the project does to produce the results (work program/tasks). Overall objective Project purpose Results Activities

ETCF is funded by the European Union 41 Project implemented by Eurochambres & TOBB 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.

ETCF is funded by the European Union 42 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 43 Project implemented by Eurochambres & TOBB Istheassumption important? Will it hold true? Almost certainly Possibly Very unlikely

ETCF is funded by the European Union 44 Project implemented by Eurochambres & TOBB Objectively Verifiable Indicators (OVI) OVIs should be SMART!  S pecific: including clear targets;  M easurable: in terms of quality and/or quantity;  A vailable: at an acceptable cost;  R elevant: to what they are supposed to measure (horizontal logic);  T imely: produced in due time to be useful for project management.

ETCF is funded by the European Union 45 Project implemented by Eurochambres & TOBB 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? 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 Admin records

ETCF is funded by the European Union 46 Project implemented by Eurochambres & TOBB Sources of Verification Cost Complexity Administrative reports Management reports Available statistics Adapted available statistics Interviews with beneficiaries Specialised surveys

ETCF is funded by the European Union 47 Project implemented by Eurochambres & TOBB OVI & SOV - Example Direct discharge of Wastewater by house- Holds and factories decreased River water quality improved Living conditions of local people improved Project Description Objectively Verifiable Indicators Sources of Verification Overall Objective Project purpose Results 70% factory wastewater & 80% household wastewater treated by 2008 Fish consumption related disease rate down 80% by 2006 Fish catch up 80% until 2006 (with stable stock) Income from fish catch increases 30% by 2006 Tourism revenue up by 30% by 2006 Survey report of Municipalities Regional hospital and medical statistics Reports of River Authority and Cooperatives Socio-economic survey Report of Ministry of Economic Affairs

ETCF is funded by the European Union 48 Project implemented by Eurochambres & TOBB relevance Overall objectives Project purpose Results Activities Means Problematic Situation efficiency effectiveness impact Sustainability Link between Logframe and Evaluation

ETCF is funded by the European Union 49 Project implemented by Eurochambres & TOBB 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.

ETCF is funded by the European Union 50 Project implemented by Eurochambres & TOBB Budget Budget Salaries Allowances Vehicle Op. Office Tel/Fax Seeds Fertiliser Budget Workplan Results-based activities, resource schedules and budgets Logframe From the LF to Operational Planning Resource Schedule

ETCF is funded by the European Union 51 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 52 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 53 Project implemented by Eurochambres & TOBB  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 Implementation

ETCF is funded by the European Union 54 Project implemented by Eurochambres & TOBB  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 Implementation

ETCF is funded by the European Union 55 Project implemented by Eurochambres & TOBB 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

ETCF is funded by the European Union 56 Project implemented by Eurochambres & TOBB

ETCF is funded by the European Union 57 Project implemented by Eurochambres & TOBB

ETCF is funded by the European Union 58 Project implemented by Eurochambres & TOBB WEB LINK manuals-tools/t101_en.htm

ETCF is funded by the European Union 59 Project implemented by Eurochambres & TOBB Other important project links  EU procurement Rules (PRAG) implementation/practical_guide/  CFCU  EC Delegation

ETCF is funded by the European Union 60 Project implemented by Eurochambres & TOBB Teşekkür Ederim! Thank you!