1. Introduction
Macerata, 28th September
Project cycle management for international development cooperation
Andrea Gramillano

2. AGENDA Lecturer What we’ll study here How the course is organised
What about the exam

3. a.gramillano@t33.it Andrea Gramillano
Programme evaluator, experts on indicators

4. The theory of the project
Links
Theory and applied ……
This course is tightly linked to Prof. Fiorini’s module
What is a good project ?
Theory
How does a project work?
Applied

5. Theory ?
We will see where the “project” takes place (policy, programme, plan, projects)
Its life (cycle)
Its main features:
When it is useful
When it is well placed
When it works
When it achieves its goals
When it makes a change

6. Structure of the lesson
Theory
Example / exercise
Definition of the issue
Theoretical framework
Main reference to the literature and discipline
Practical exercise

7. Lessons and project cycle
Identification
Formulation
Implementation
Evaluation and review

8. Lessons Lesson Example /exercise
Introduction, policy, programme, project and project cycle, leaking roof
Project, programme, policy
Project phases
Relevance and coherence
SWOT – PEST
Monitoring and evaluation
1) Accessibility project
Performance, efficiency, effectiveness
1) Multicriteria exercise
2) Student’s satisfaction
Impact and sustainability
2) Power plant and museum
Identification and formulation
Implementation, monitoring, evaluation and review

9. Useful information
The course provides the students with an overview of the Project Cycle Management, with particular regard to the 'Identification', 'Programming', and 'Monitoring and Evaluation" phases.
Source: European Commission Project Cycle Management Guidelines European commission 2004
Credits: 4 CFU
Lessons: - case histories; - working groups doing exercises.

10. Exam
Two separate courses (Theory and practice)  Two separate exams (with one mark)
Written exams (some practical exercises)
Homogeneity
Clarity
A set of questions in a limited space and time

11. Exam (1) – examples (theory)
Provide the definition of the formulation phase in the project cycle
Provide the definition and at least an example of output and outcome indicators
What is the possible use of the SWOT analysis?
What is the focus of the project evaluation in the on-going phase?
Provide the definition of efficiency and effectiveness?

12. Exam (2) (theory) Projectg Social impact (max 100)
Physical features (max 100)
Human resources (max 100)
Situation A
Situation B 1 80 50 40
170
290 2 70 10 55
135
250 3 30 45
105
180 4 5 75
150

13. Lesson 1: Policy, Programme, Project
Macerata, 28h September
Andrea Gramillano, t33 srl

14. AGENDA Policy and delivery tools Policy, Program, Plan and Projects
Policy cycle and Project cycle

15. Public Policy Features Policy cycle
The deliberate plan of action to guide decisions and achieve rational outcome(s).
PP is determined by “politicians”
PP is influenced by stakeholders and interests
PP has no pre-determined shape, budget, objective, rules, time horizon
Needs assessment (programming phase)
Policy formulation
Policy implement-ation
Policy monitoring
Evaluation and feedback
Policy (def. from EVALSED)
A policy is typically described as a deliberate plan of action to guide decisions and achieve rational outcome(s). The term may apply to government, private sector organizations and groups, and individuals. Presidential executive orders, corporate privacy policies, and parliamentary rules of order are all examples of policy. Policy differs from rules or law. While law can compel or prohibit behaviours (e.g. a law requiring the payment of taxes on income) policy merely guides actions toward those that are most likely to achieve a desired outcome.
Policy cycle (def. from EVALSED)
The policy cycle is the term used to describe the lifespan of a policy, from its formulation, to the review. It comprises: needs assessment / agenda setting; planning / policy formulation; policy implementation; policy monitoring; and evaluation and feedback.

16. The Policy map Policy Program Project (1) PLAN (set of projects)
Fiscal Measures
Law
Organisation

17. Policy delivery tools Different tools… Example Education Laws Taxes
Goods and services (Programme)
Governing and suasion
Organisation
Doing nothing
Right Policy Mix
Educational
Policy
Services
School
University
Law
Compulsory attendance up to 16..

18. Program(me) It is a Policy delivery tool to provide goods and services
Procedures are well defined (management, monitoring, control, evaluation)
Budget is sharply allocated
Timing and target population are defined
No specific beneficiary is identified

19. Program: document structure
Description of the current situation
Strategy and priorities
Financial tables
Partnership
Implementing provisions

20. Project A project has: What is a project? Sharp costs
Identified beneficiaries
Timing
Output/ Outcome
It is integrated in a specific Policy
It is part of a Programme
It is a set of ex ante determined actions
It has its own specific objectives linked to Programme and Policy strategy

21. Types of different public projects

22. Some references for defining the theoretical concepts
Policy: A deliberate plan of action to guide decisions and achieve rational outcome(s). The term may apply to government, private sector organizations and groups, and individuals. Presidential executive orders, corporate privacy policies, and parliamentary rules of order are all examples of policy. Policy differs from rules or law. While law can compel or prohibit behaviours (e.g. a law requiring the payment of taxes on income) policy merely guides actions toward those that are most likely to achieve a desired outcome.
Programme (policy delivery tool): the donor defines criteria, priorities, objectives, call for projects and allocate a budget for a set of projects, without saying which projects
Projects: have sharp costs, clearly identified beneficiaries, timing and activities, output and outcomes

23. Project life cycle The different phases Example Identification
Formulation
Implementation
Evaluation
Approach: problem solving

24. Some references for defining the theoretical concepts
The identification phase delivers a project idea (a pre-feasibility study) and identifies all the problems and possible solutions.
The formulation phase is after the identification phase: project applicants’ delivery is  a sort of feasibility study, explaining why and how the proposed project is well-grounded and is likely to reach the objectives, outputs and outcomes and in particular to address the challenges and needs of beneficiaries and target groups. The main purposes are: confirm the relevance and feasibility of the project idea (see identification phase); provide more details about technical, operational, economic, financial aspects…; prepare a financial proposal and a financing decision.

25. Between the identification /formulation and implementation phase there is the financing decision
Before making a financing decision, the donor usually conducts an ex- ante assessment of the relevance and coherence of the project. The financing decision defines the end of the formulation phase and start- up of the implementation.

26. Relevance and Coherence ( EX ANTE)
Needs
Resources (inputs)
Output (implementation)
Outcome
Relevance
Programme / policy
Utility
Internal
Coherence
External coherence

27. Relevance: Definition
The term RELEVANCE, in the context of an evaluation, refers to the appropriateness of the explicit objectives of the program in relation to the socio-economic problems it is supposed to address.
Is the project justified in relation to the needs?
Can their raison d'être of the project still be proved?
Are the expected or unexpected effects globally satisfactory from the point of view of direct or indirect beneficiaries?
Sources of information: interviews, context indicators, documents and studies
Relevance (EVALSED)
Appropriateness of the explicit objectives of an intervention, with regard to the socio-economic problems the intervention is meant to solve. Questions of relevance are particularly important in ex ante evaluation because the focus is on the strategy chosen or its justification. Within the framework of mid-term evaluation, it is advisable to check whether the socio-economic context has evolved as expected and whether this evolution calls into question the relevance of a particular initial objective.
Utility (EVALSED)
The fact that the impacts obtained by an intervention correspond to society's needs and to the socio-economic problems to be solved. Utility is a very particular evaluation criterion because it disregards all reference to stated objectives of an intervention. It may be judicious to apply this criterion when objectives are badly defined or when there are many unexpected effects. The criterion must, however, be used with caution to avoid the evaluation team being influenced by personal considerations in their selection of important socio-economic needs or problems. Some authors have argued for a form of goal-free evaluation.

28. Analytical tools for relevance
SWOT and PEST

29. Analytical tools: PEST
PEST analysis is a tool from business science. It is a useful tool for understanding the general feature of the Context.
PEST is an acronym for Political, Economic, Social and Technological factors which provide a framework for reviewing a situation, or a strategy.
It is very simple, and is a good subject for work group session or brainstorming meeting.
PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis

30. PEST MATRIX CRITERIA political ecological/environmental issues
current legislation home market
future legislation
international legislation
regulatory bodies and processes
government policies
government term and change
trading policies
funding, grants and initiatives
home market lobbying/pressure groups
international pressure groups
wars and conflicts
economic
home economy situation
home economy trends
overseas economies and trends
general taxation issues
taxation specific to product/services
seasonality/weather issues
market and trade cycles
specific industry factors
market routes and distribution trends
customer/end-user drivers
interest and exchange rates
international trade/monetary issues
social
lifestyle trends
demographics
consumer attitudes and opinions
media views
law changes affecting social factors
brand, company, technology image
consumer buying patterns
fashion and role models
major events and influences
buying access and trends
ethnic/religious factors
advertising and publicity
ethical issues
technological
competing technology development
research funding
associated/dependent technologies
replacement technology/solutions
maturity of technology
manufacturing maturity and capacity
information and communications
consumer buying mechanisms/technology
technology legislation
innovation potential
technology access, licencing, patents
intellectual property issues
global communications

31. Analytical tools: SWOT
SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats.
A SWOT analysis is a subjective assessment of data which is organized by the SWOT format into a logical order that helps understanding, presentation, discussion and decision-making. The four dimensions are a useful extension of a basic two heading list of pro's and con‘
Strengths and Weaknesses are internal factors , whereas 
Opportunities and Threats  might be:
Obstacles or Advantages for strengths and weaknesses coming from external factors
The evolution in the near future

32. SWOT Analysis NOW Strengths Weaknesses IN THE FUTURE Opportunities
(external driving forces empowering the strengths )
Threats
(external obstacles)

33. PEST AND SWOT COMBINATION
PEST helps the identification of SWOT factors.
PEST assesses more generally the global situation.
SWOT is an assessment of the more specific sector / territory or policy / project / programme.

34. Practical example (1) Assessment the relevance of the issues: PEST
Analysis
factors
Importance / Impact/ Time frame
Political
Economical
Social
Technological
Relative Importance:
- Critical
- Important
- Un-important
- Unknown
Impact
Very positive
Positive
Medium
Negative
Very negative
Time frame (short / long term)

35. SWOT P E S T Strengths Weaknesses Opportunities Threats
Here you have to
locate the items
that in the PEST
Are short term
important / critical
Positive/ very positive
Weaknesses
Negative / Very negative
Opportunities
Are long term
Threats
Are Long term
POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGICAL

36. S W T O FROM SWOT TO NEEDS COMPARATIVE ADVANTAGE STRUCTURAL GAPS
Vantaggi comparati

37. Verify the consistency of the analysis of needsW O
Obstacles (needs)
Potential for solutions

38. Relevance and Coherence ( EX ANTE)
Needs
Resources (inputs)
Output (implementation)
Outcome
Relevance
Programme / policy
Utility
Internal
Coherence
External coherence

39. Coherence: Two dimensions
Internal: correspondence between the different objectives of the same intervention. Internal coherence implies that there is a hierarchy of objectives, with those at the bottom logically contributing towards those above.
External: correspondence between the objectives of an intervention and those of other public interventions which interact with it.
Relevance (EVALSED)
Appropriateness of the explicit objectives of an intervention, with regard to the socio-economic problems the intervention is meant to solve. Questions of relevance are particularly important in ex ante evaluation because the focus is on the strategy chosen or its justification. Within the framework of mid-term evaluation, it is advisable to check whether the socio-economic context has evolved as expected and whether this evolution calls into question the relevance of a particular initial objective.
Utility (EVALSED)
The fact that the impacts obtained by an intervention correspond to society's needs and to the socio-economic problems to be solved. Utility is a very particular evaluation criterion because it disregards all reference to stated objectives of an intervention. It may be judicious to apply this criterion when objectives are badly defined or when there are many unexpected effects. The criterion must, however, be used with caution to avoid the evaluation team being influenced by personal considerations in their selection of important socio-economic needs or problems. Some authors have argued for a form of goal-free evaluation.

40. EXTERNAL COHERENCE: Strategy
Horizontal (with other interventions)
Vertical (with the Program/ Policy Funding)
CONFLICT
The Project Objectives could negatively impact on the Strategy
The Project Objectives could negatively impact the Strategy
RISK OF OVERLAPPING / INCONSISTENCY
The Project Objectives are in the same policy domain but without relation or awareness
The Project Objectives are inconsistent with the Strategy
ACKNOWLEDGMENT
The Project Objectives take in consideration explicitly the other interventions
The Project Objectives refers the “superior” Strategy
COMPLEMENTARITY
The Project Objectives identify a specific area of interaction
The Project Objectives represent an execution of the superior strategy on the specific sector/ territory
INTEGRATION
The Project is explicity a “follow up” , an “execution”, or “part of” other interventions
The Project Objectives are functionally related to the superior Strategy and represent a “condition sine qua non” for its realization

41. EXTERNAL COHERENCE: Organisation and Instruments
CONFLICT
The Project organisation does not recognise the other Institution or is not eligible by the Funding Program (e.g. conflict of interest)
The Instruments used by the project are not compatible (not eligible)
RISK OF OVERLAPPING/ INCONSISTENCY
The Project Organisation works in the same area without taking in consideration the administrative – institutional linkages
The Instruments adopted are not aligned (too old – too expensive - etc.)
ACKNOWLEDGMENT
The Project Organisation identifies ways of communication and exchange of information “una tantum”
The Instruments are aligned and compatible
COMPLEMENTARITY
The Project Organisation establishes stable form of cooperation (e.g. joint meeting)
The Instruments can work in parallel in a complementary and synergistic manner
INTEGRATION
The Project Organisation is:
- part of the same Administrative body - exchange of same human resources
Adopt a common management system
The Instruments are interconnected by financial and/or administrative point of view

42. WORKOUT n.1 (project-programme-policy)
WORKOUT n.2 (Leaking roof)

43. Project life cycle – Example leaking roof
Minute Mark Friedman

44. Result based accountability example
How can you tell if the roof is leaking? (experience, reasons)
How can you say / measure how badly the roof is leaking? (drops, bucket…)
What is going to happen if we don’t do anything? (better vs worse)
What is the first thing you do when you see the leaking roof? (get up on the roof and try to find out why…)
Who can help you? (roofer, a friend, father-in-law…)
What kinds of things should be done to fix the roof? (patching material, new roof…)
How do you concretely proceed on that? (hire a roofer)
What happens when the roofer comes? (fix the roof)
And then…..? What happens then? (inches of water with a bucket)

45. Result based accountability example
Identification phase
(Needs assessment)
How can you tell if the roof is leaking? (experience, reasons)
How can you say / measure how badly the roof is leaking? (drops, bucket…)
What is going to happen if we don’t do anything? (better vs worse)
What is the first thing you do when you see the leaking roof? (get up on the roof and try to find out why…)
Who can help you? (roofer, a friend, father-in-law…)
What kinds of things should be done to fix the roof? (patching material, new roof…)
How do you concretely proceed on that? (hire a roofer)
What happens when the roofer comes? (fix the roof)
And then…..? What happens then? (inches of water with a bucket)
Formulation phase
(Action plan)
Implementation phase
Monitoring and evaluation

46. WORKOUT n.1 (Relevance)

47. WORKOUT n.2 (Coherence)

48. EXTERNAL COHERENCE – Focus: strategy and objective Is the project coherent with…?
Intensity →
Strategy (objective)
Organisation
(Activities)
Instruments
(Type of support)
Programme Strategy
Prog. I priority
Other policy (RES)
Other projects (horizontal coherence)

49. Programme «International Development Programme»
The International Development Programme for provides an excellent opportunity for the region “POOR” to further progress its economic development, through priorities determined by the region itself and defined by a strong regional partnership drawn from all parts of the region. In addition to International Development Programme, the Regional Economic Strategy (RES) represents the “POOR’S” response with the following targets:
To raise the region’s GVA per head from 80% to 90% of the national average
To get between 61,000 and 73,000 more people in the region into work
To create between 18,500 and 22,000 new businesses
Programme Priorities
The International Development Programme comprise three priorities:
Priority One: Enhancing and Exploiting Innovation (53%).
Priority Two: Business Growth and Enterprise (43%)
Priority three: Addressing Climate Change
Accordingly, through Priority 1, the strategy will:
Increase the region's value-added by investing in ‘opportunity’ to exploit the region's science and technology strengths to take advantage of growing marketsI
Invest in integrated projects that, on one level, will strengthen capacity to apply science, technology and innovation in businesses.
The programme will invest exclusively by using financial instruments as:
Guarantee schemes in combination with grants
Loans
Venture Capital

50. External coherence:
Is the project A (B) coherent with the programme? (vertical coherence)
Is the project A coherent with project B? (horizontal coherence)
In terms of objective, activities, and type of support?
Internal coherence
Has the project A (B) internal coherence?
Objective and activities?
Activities and budget? the programme? (vertical coherence)
Is the project A coherent with project B? (horizontal coherence)
Project A
Project B
Objective
Improve the capacity of social enterprises to develop and deliver sustainable and high impact innovations
Activities
Research on effective business models
Pilot test on new business models, evaluation of business models
Establishing network
Building a motorway
Budget
Estimated budget 3,800, Euro
Type of support
Guarantee scheme without any combination with grant
Objective
Introduce technologies, methods and tools to organise this circular approach to sediment management.
Activities
Organisation of meetings and drafting of manual for circular economy (e.g. recycling)
Pilot tests
New investments
Budget
Estimated budget 5,800, Euro
Type of support
Grant

51. See you