An introduction to

Project Cycle
Management
PCM

01/01/2015

Ton FARLA - ERI-SEE workshop

Welcome + agenda

Learning to know each other

Locations of facilities (rooms)
Role of trainer + participants
Leonardo-Socrates examples/tasks

Three parts
1. Introduction to PCM
2. Logical Framework
3. Your work and PCM

01/01/2015

- 30 min
- 150 min
- 30 min

Ton FARLA - ERI-SEE workshop

Objectives
Understand PCM as a tool for project
planning, implementation and evaluation

Perform a stakeholder/problem analysis

Develop a problem/objective tree
Define project elements, test the logic
Prepare a draft Log frame matrix
Relate PCM to your future/daily work
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Ton FARLA - ERI-SEE workshop

Introduction
EU Action programmes/projects
Project management - features
Expectations project manager

Changing roles of managers

See figure next slide

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Changing roles of managers

Then

Now

Controlling/Directing

Empowering potential

Imposing norms

Releasing creativity

Creating certainty

Managing uncertainty

Telling

Listening

Vertical/line authority

Matrix/Project Management

Problem solving

Opportunity creating

Manage within your area

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Collaboration/partners

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Exercise 1: Introduction

Your management perspective

See hand-out - questionnaire
5 minutes - individually
10 minutes - plenary

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Ton FARLA - ERI-SEE workshop

Introducing PCM what it means

PCM describes management activities and
decision making procedures used during
the life time of a project.
(tasks, roles, responsibility, key docs, decision options)

The EC adopted PCM as its primary set of

project design and management tool based
upon the Logical Framework Approach.
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Ton FARLA - ERI-SEE workshop

Key features of PCM projects:

Support the EU policy objectives

Support the national strategies
Addresses relevant problems recipients
Have feasible, achievable objectives
Benefits are likely to be sustainable
See figure next slide
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Ton FARLA - ERI-SEE workshop

Policies, programmes and projects

National &
sector wise
policies

EC development
policy & country
strategies

Government
programmes

Project

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Priorities and
programmes
of non-state
actors

Project

Ton FARLA - ERI-SEE workshop

Project

PCM Requires:
Active participation of key stakeholders

Incorporation quality assessment (stage)

Quality key docs for decision making

Using the Logical Frame Work

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Project cycle
Programming

Evaluation

Identification

Financing
decision

Implementation

Formulation

Financing
decision

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PCM - Three common principles

1. Decision making criteria defined at each phase
2. The phases in the cycle are progressive
3. Project identification part of structured feedback

LFW - Project management tool

Identification, analyse situation, investigate relevance and identify objectives and strategies;
Formulation, preparation project plan, objectives, measurable results, defined levels of management responsibility;
Implementation, support contracting, operational work planning and monitoring; and
Evaluation/audit, summary record of what was planned (objectives, indicators and key assumptions)
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Main stages of the log frame

1. Analytical Phase

2. Planning phase

STEP l: STAKEHOLDER ANALYSIS

identify groups, people and institutions which are
likely to be affected by the project, identify the key
problems, constraints and opportunities they face

STEP 4: INTERVENTION LOGIC

define the project elements, test its internal logic,
and formulate objectives in measurable terms

STEP 2: PROBLEM ANALYSIS

formulate problems; determine cause and effect
relationships and develop a problem tree
STEP 3: OBJECTIVE ANALYSIS
Objectives -develop objectives from the identified
problems; identify means to end relationships;
identify clusters of objectives and determine the
project strategy
Having analyzed the situation, the project should
now be ready for detailed planning

STEP 5:ASSUMPTIONS and RISKS

identify the conditions which are likely to affect the
project's implementation but which are outside the
project management control
STEP 6:INDICATORS
identify ways to measure progress, formulate
indicators; define means of measurement
STEP 7: ACTIVITY SCHEDULE
determine sequence and dependency of
activities; estimate duration, set milestones,
assign responsibilities
STEP 8:COST SCHEDULE
specify required inputs develop cost schedule;
prepare budget

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Step 1 The stakeholder analysis

Whose views + experience are relevant?

Who takes decisions about the project?
Who will act on these decisions?
Whose active support is essential
who has a right to be involved?
Who is likely to feel threatened

See example next slide

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Example stakeholder analysis setting up ITC

Stakeholder
Group

Tasks and
responsibilities

Expectation
for the project

Directorate for
VET (Ministry of
Education)

Personnel selection
Budgets + definition
of forms
Design of the VET
system

Improvement of
the equipment
Improvement of
coordination
Training of staff
New ideas

Change of the
socio-political
framework
Priorities set by
the donor
organisation

Supply of project
staff
Political support
of the project
Multiplicator for
project impacts

Industrial
Training Centre
(ITC)

Implementation
Selection of staff
Training specialists

Implementation
modern training
programmes
Improvement of
education
Training of staff

Insufficient staff
experience project
implementation
Insufficient own
financial
resources

Staff highly
motivated
Provision of
venue
Link to other
stakeholders

Employers

Provision of jobs
Setting frame-work
conditions for staff
Provision of social
security
Development of
technologies

Supply of highly
qualified staff
Improvement of
productivity
Improvement of
product quality
Improvement of
work-flow
organisation

Competition
through
subsidised
production in
training centres
Low quality of
training
Training costs
partly covered by
companies

Provision of jobs
Provision of
internships
Collaboration in
the design of the
training
Collaboration in
the final exams

Youth

General education
Social responsibility

Enhancement of
skills
employment

Lack of jobs, lack

financial
resources for
training fees

Application of
the new skills

01/01/2015

Fear for the

project

Ton FARLA - ERI-SEE workshop

Support for
project

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Exercise 2 - stakeholder analysis

1.

Identify general development problem/opportunity

2.

Identify groups having an interest in the project;

3.

Investigate their roles, interests, relative power and

capacity to participate (strengths and weaknesses);

4.

Identify the extent of cooperation or conflict in the

relationships between stakeholders; and

5.

Interpret the findings of the analysis and incorporate

relevant information into project design.

Using the case of Socrates hand-out

30 minutes in small working groups
15 minutes plenary

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Step 2 The problem analysis

Problem analysis is an important part
of the stakeholder workshop
It involves two tasks:
1. Analysis of the identified problems faced
by the stakeholders and
2. Development of a problem tree to
establish causes and effects
See example problem tree next slide

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An example of a problem tree

Effect
Insufficient qualified personnel for
modernisation of private industry

Core problem
National VET system is not adapted
to the new economic conditions

Causes

Causes

Training offered by ITC not

according to the needs of the
economy

Low and outdated

technical
standards of
training

01/01/2015

Inappropriate
training
methodology is
applied

Weak Directorate for

Vocational training

Budget ITC
inadequate to
implement and
sustain
appropriate
training

Qualification of
Department
personnel is
inadequate for new
tasks

Ton FARLA - ERI-SEE workshop

National
standards for
VET remain from
the old system

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Exercise 3 Develop a problem tree

1.

Agree on 1 focal problem paste it on the wall with 1

related problem (cause/effect)

2.

If the problem is a cause it goes on the level below

3.

If the problem is an effect it goes above

4.

It is neither a cause nor an effect it goes on the

same level

5.

As the tree develops, remaining problems are

attached in the same way.

Using the case of Socrates hand-out

30 minutes in small working groups
15 minutes plenary

01/01/2015

Ton FARLA - ERI-SEE workshop

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Step 3 Objectives analysis

Analysis of objectives involves reformulation of
problems into objectives. Objectives should be:

Realistic - achievable within given financial and

physical resources, and the time-frame envisaged

Specific - so that any progress towards objective

can be attributed to the project and not to some
other cause

Measurable - at acceptable cost and acceptable

effort, so project's performance can be measured

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An example of an Objective tree

Impact
Sufficient qualified personnel provided to
private industry

Project purpose
National VET system is adapted to
the new economic conditions

Outcomes

Outcomes

The ITC offers training

according to the needs of the
economy

The Directorate for

Vocational Training is
strengthened

Technical
standard of
training is
improved

01/01/2015

Appropriate
and modern
training
methodology is
applied

ITC renders
efficient
services which
cover part of
their budget

Department
personnel is
qualified for their
job

Ton FARLA - ERI-SEE workshop

National
standards for
VET reflect the
needs of the
economy

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Exercise 4- develop an objective tree

1. Develop an objective tree using the results
of the problem tree in exercise 3
2. Positively mirroring the problem tree.

Using the case of Socrates hand-out

15 minutes in small working groups

5 minutes plenary

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Ton FARLA - ERI-SEE workshop

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Step 4Defining the intervention logic

Distinguish the LFA from the LFM (matrix)

LFA is a way of thinking, not a process of

mechanical engineering
LFM is an analytical coherent project design

LFM is a stakeholder presentational tool.

LFM helps to make visible the logical
relationships between activities, outcomes,
specific objectives and overall objective

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Structure of the LFM 4 columns, 4 rows

The vertical logic identifies:
what the project intends to do,
clarifies the causal relationships and
Specifies the assumptions and uncertainties

Project

Narrative

Indicators

Measurement

Assumptions

Overall goal
Project
purpose
Results/
outcomes
Activities
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Structure of the LFM 4 columns, 4 rows

The horizontal logic relates to:

the
the
the
the

measurement of the effects of,

resources used by,
project, specification of key indicators
means how measurement will be verified.

Project

Narrative

Indicators

Measurement

Assumptions

Overall goal
Project
purpose
Results/
outcomes
Activities

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Step 5-Specify assumptions + risks

Project
Narrative

Indicators

Measurement

Overall goal to
which project
contributes.

Assumptions
For sustaining long
term objectives

Project purpose

For achieving the

overall goal

Results/
outcomes

For achieving the

project purpose

Activities

For achieving the

results/outcomes

External factors affect project implementation outside control

Conditions to be met if the project succeed

Mechanisms to deal with them or to monitor the effect
Once assumptions identified, state in terms of desired situation.

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Step 6-Specify the indicators

Project
Narrative

Indicators

Measurement

Assumptions

Overall goal to
which project
contributes.

overall goal is
Achieved

For sustaining
Long term objectives

Project purpose

proving
project purpose
is achieved

For achieving the

overall goal

Results/
outcomes

proving results
are achieved

For achieving the

project purpose

Activities

Specification
inputs /costs
each activity

For achieving the

results/outcomes

Define indicator - e.g. Educational degrees

Set quality
- e.g. Nr of graduates in subject X
Set quantity
- e.g. Nr graduates increased from 500-1000
Set time
- e.g. Nr graduates increased 500-1000 by 2007
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Step 6 Specify the measurement

Project
Narrative

Indicators

Measurement

Assumptions

Overall goal to
which project
contributes.

overall goal is
Achieved

Reports
Records
documents

For sustaining
objectives long
Term

Project purpose

proving
project purpose
is achieved

Reports
Records
documents

For achieving the

overall goal

Results/
outcomes

proving results
are achieved

Reports
Records
documents

For achieving the

project purpose

Activities

Specification
inputs /costs
each activity

For achieving the

results/outcomes

the format - e.g. progress reports, project records, statistics)

who
- who should provide the information
how often - e.g. monthly, quarterly, annually etc.
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Step 7. Prepare activity schedule

List the main activities

Break activities down into manageable tasks

Determine activity sequence /dependencies

Estimate the start-up, duration and completion

Identify process indicators or milestones

Define expertise required to undertake activities

Allocate tasks among the project team

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Example -work breakdown activities

Carry out needs
analysis

Train trainers in use

new equipment

Develop new
curricula

Train trainers in new

methodologies

Prepare training
manuals in
identified areas

Conduct training
Needs assessment

Formulate a
trainings training
programme

Conduct
workshops
Organise
training aids

Inform
participants

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Organise
venue

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Contact
trainer

30

Step 8 - Specifying the inputs

Checklist for Preparing a Cost Schedule

List means required to undertake each activity

Put means into cost categories
Specify units, quantity and unit costs
Specify funding source
Allocate cost codes
Schedule costs
Estimate recurrent costs
Prepare cost summary tables

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Example full log frame - Project Support to ITC Centre

narrative

indicators

measurement

assumptions

Overall goal to which

project contributes.
National VET system
adapted to new economic
conditions

Indicators that overall goal

is achieved
National employers
association evaluate
new VET system positive

Reports of round table

discussions

For sustaining objectives

long term
Reform policy towards market
economy Implemented
National VET standards
reflect economy needs

Project purpose
The ITC offers training
according to the needs of the
economy

Indicators prove purpose

is achieved
200 students trained 80%
graduates receive work
within 6 months after
graduation

Registration records survey

to be carried out by project

Government secures continued

VET support
The directorate for vocational
training is strengthened

Results/ outcomes
Technical standard of
training is improved
Modern training
methodology is applied
ITC renders efficient
services which cover part of
their budget

Indicators proving results

are achieved
Outdated equipment
replaced. Practical exercises
for students increased by
50%. 80% of training staff
apply new methodology.
20% of budget covered by
own return in project year 4

Assessment report
acquisition documents
Teachers' reports
Training evaluation
report
Accounting books

For achieving the project

purpose
Employers co-operate with the
project. Existing staff stays with
training centre. No competing
training centre exists. Semiautonomous status granted by
VET Department

Activities
Carry out assessment of
equipment and needs
analysis for new equipment
Purchase and install new
equipment. Train trainers in
new methodologies

Specification inputs /costs

each activity
1 person/Month short term
consultant. Equipment
300.000 . Training Trainer
course 1 Month short term
expert

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Ton FARLA - ERI-SEE workshop

For achieving the

results/outcomes
Appropriate technology
available. Students and trainer
collaborate in the development
of new curricula. Services are
demanded by private clients
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Exercise 5 Prepare a draft LFM

1.Start preparing the LFM using the results of the previous
exercises and Socrates case

2.Process information by working vertically down the first

column, once first column is sound, complete the fourth
column
3.The second and third columns should then be completed.
Next - find the activities to be carried in order to produce
the outcomes.
4.List for later discussion with your superiors and your
absent colleague 5-7 important project elements or
assumptions that you feel are perhaps doubt full, if not
wholly unjustified, unnecessary or even dangerous for
the successful implementation of the project.
45 minutes in small working groups
20 minutes plenary
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Exercise 6 PCM to your future work

List the strength

List the weakness

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Strength and weaknesses LFA

The strength:

LFA encourages people to consider expectations

and how to achieve the objectives

Checks internal logic of the plan ensuring

activities, outcomes and objectives are linked.

It forces planners to identify critical

assumptions /risks affecting project success,

Indicators of achievements/progress, planners

think about how to monitor and evaluate
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Strength and weaknesses LFA

The weakness

Powerful tool; but not a comprehensive tool for

either planning-management

Time consuming, requires a thorough

understanding of logic and concept of LFA.

Problems can be compounded by too rigid

application of the LF (changing environment)

LFA should be supported by technical,

economic, social and environmental analysis

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