Chapter three: Project Management Cycle

At the end of this unit, learner should be able to

1) Define Project cycle

2) State the Characteristics of project cycle
3)Project phases Project cycle/Stage
4) Identify the different Approach of PMC Stages approaches in
PMC Phases
5) Discuss Logical framework approach
6) Explain Problem analysis
7) Estimate the Uses Objective analysis
8) Discuss stakeholder Analysis
9) State How to build the Tree problem
Project Management Cycle
cont.

• A project life cycle is the series of phases that a project

passes through from its initiation to its closure.
• Most projects need to be broken down into a logical
sequence of ‘phases’, known as the project life cycle. .
• Phases are generally time bounded, with a start and ending
or control point.
characteristics of the Project Life Cycle
Projects vary in size and complexity. All projects can be
mapped to the following generic life cycle structure:

• Starting the project,

• Organizing and preparing,
• Carrying out the project work, and
• Closing the project.
The life cycle structure generally displays
the following characteristics
• Cost and staffing levels are low at the start, peak as the work is carried
out, and drop rapidly as the project draws to a close
Phases OF PCM
• The cycle is structured into six stages/phases
• Programming
• Identification
• Formulation
• Appraisal
• Implementation
• Evaluation
The Six Phase of PCM

• PCM is not a single process but a set of integrated stages, designed to make
sure that issues are examined systematically; each stage links with the
previous one and leads forward to the next one.
• The cycle starts with the policy objectives and sectoral area(s) covered and
moves to identification of a problem to be addressed, then develops ideas to
solve the problem into a working plan that can be implemented and, on
completion, evaluated.
• PCM provides the context in which project decisions are made and activities
managed: it maintains the critical linkage between one stage and the next.
• In PCM/RBM there are a number of documents that are used to link stages,
record and analyze progress and report to stakeholders
Cont..

PCM helps to ensure that:

• Projects are relevant to an agreed strategy and to the real
problems faced by target groups/beneficiaries
• The project cycle facilitates learning and improving from previous
projects to new projects
• Projects are feasible, meaning that objectives can be realistically
achieved within the constraints of the operating environment and
capabilities of the implementing agencies
• Benefits generated by projects are likely to be sustainable
There are different approaches in PMC Phases

•European Commission /EC/

•Project Management Institute /PMI in
two model
•WB/UNEP
The project cycle /PMI Model

• Stage 1: Programmed- • Identify lessons learned and incorporate

Sequence of Activities • review social and economic conditions
• review government strategic priorities & link
• review sector and community strategies
Who should be involved
• Funders, local and regional government
authorities and support agencies
• Residents of the defined areas should be
involved if a community strategy is being
developed
Stage 2. Identification

• The Identification stage defines who the stakeholders are, defines

the problem(s), and identifies a number of possible solutions
• This stage is undertaken as a workshop; it can be helpful to
engage an independent facilitator to run the workshop
• At the end of this stage, there should be a clear list of
stakeholders, an understanding of the problems to be addressed
and a set of strategic objectives that are appraised, with the
appropriate options transferred to the following Formulation stage
Identification
• Clarify the main area of concern
• Undertake stakeholder analysis
• Sequence of Activities
• Conduct a Problem and Objective Assessment
• Determine acceptable strategy options
• Appraise the strategy options
• List relevant existing initiatives/projects
Who should be involved?
– organizations, people who experience the
problem, and those organizations and people
that perhaps cause the problem, relevant
theme specialists and local support agencies
who work in the area
Stage 3. Formulation

• The Formulation Stage is when the Logical Framework is used as the

project design tool to test the feasibility of the Strategy Options
• A small team will have to be appointed, comprising of relevant
stakeholders, to design the project: this is referred to as the Design Team
• The design team, and any invited specialists, need to bring the results of
the Problems and Objectives exercise together to inform the Logical
Framework
• The first task is to transfer the set of objectives from the Strategy Option
from the previous stage, the Identification stage, to the Logical
Framework.
• Once the Logical Framework is complete, the project proposal is prepared
with a budget and an activity plan
Stage 4: Appraisal and Commitment

• Projects need independent appraisal as part of the process of

deciding if funding and support should be approved
• The Appraisal and Commitment stage is when the Project Proposal is
appraised for its ability to achieve its stated objectives within the
resources available and the necessary commitment is formally
agreed
• This is the single most important decision made about a project and it
should be an objective and open process
• The most effective way of conducting appraisals is when a small
Appraisal Team that represents different interests is appointed, which
then goes through project proposal using an agreed procedure
Stage 4: Appraisal and Commitment

• Distribute the Project Proposal to the Appraisal

• Sequence of Activities Team and allow time for it to be read and consider
• Undertake a project proposal appraisal
• If appropriate, approve the proposal
• If appropriate, use the Logical Framework to
prepare a Terms of Reference for organizations to
bid to carry out the proposed project
• If appropriate, agree schedule for disbursing funds
Who should be involved
the Appraisal Team which is made up of relevant
stakeholders
Stage 5. Implementation
• The Implementation Stage is when the work of the project is carried out
• This is preceded by the appointment of the organization that will carry out
the work, if appropriate, and a work plan and time period for the project
will be developed
• At the very beginning, an Inception Review should be undertaken to make
sure the initial project design is still valid and the external conditions are
still the same
• Throughout the Implementation stage regular and planned monitoring
reviews will be required
• The monitoring will use the Indicators defined in the Logical Framework
and must include the Activities, Outputs and Assumptions, and the budget
Stage 5. Implementation
• Develop Terms of Reference for implementing agency, if
appropriate
• Sequence of Activities • Carry out an Inception Review of the project preparation
and conditions, suggest changes, if any
• Set up management and monitoring systems using the
Logical Framework
• Carry out the Activities and achieve the Outputs and
finally the Project Purpose
• Keep of progress against plans

Who should be involved?

– implementing organization, project manager,
beneficiaries, funders, other bodies supporting the project
Stage 6. Evaluation
• This is the final stage in the project life and should be
undertaken by an independent evaluator
• The Evaluation stage is the time when the assessment of the
project is undertaken and any lessons learnt can be identified
and disseminated widely
• A decision about the type and timing of the Evaluation should
have been taken at the Formulation stage and the initial points to
be included should have been drafted by the project design team
• The Evaluation conclusions, recommendations and lessons
learnt should be clearly presented and disseminated widely to
other agencies and the programme coordinators
Stage 6. Evaluation

• Be clear about the purpose of the project as stated in the

project proposal
• Sequence of Activities
• Focus on the flow of benefits and the overall outcome of the
project

• Review the monitoring reports and Logical Framework

• Prepare statement of actual achievements against planned

targets

• Identify lessons learnt and disseminate the findings widely to

influence future projects and policy

Who should be involved? –

independent evaluator, beneficiaries and project supporters.

The project cycle /PMI Model
EU – Model
EU – Model
The project cycle in EC Model
The project cycle World Bank
Tools for Project Planning

• The Logical Framework Approach (LFA) was developed in the late

1960’s to assist the US Agency of International Development to
improve its project planning and evaluation system. It was designed
to address three basic concerns, namely that:
1)Planning was too vague, without clearly defined objectives that
could be used to monitor and evaluate the success (or failure) of a
project;
2) Management responsibilities were unclear; and
3) Evaluation was often an adversarial process, because there was no
common agreement as to what the project was really trying to
achieve.
Cont…

• Most organizations require the use of LFA as part of its Project Cycle
Management system.
• It provides a core set of tools with which to undertake assessments of
project quality
The LFA is an analytical process and set of tools used to support project
planning and management.
Cont…

LFA is an analytical process (involving stakeholder

analysis, problem analysis, objective setting and
strategy selection).
• The Logical Framework Matrix (or more briefly the
Logframe) consists of a matrix with four columns and
four (or more) rows, which summaries the key
elements of a project plan, namely
Cont…

1. The project’s hierarchy of objectives (Project

Description or Intervention Logic);
2. The key external factors critical to the project’s
success (Assumptions); and
3. How the project’s achievements will be
monitored and evaluated (Indicators and
Sources of Verification
Links to the project cycle and key project cycle management documents

• The Logical Framework Approach (LFA) is a core tool used within Project Cycle
Management.
• It is used during the identification stage of PCM to help analyze the existing
situation, investigate the relevance of the proposed project and identify potential
objectives and strategies;
• During the formulation stage, the LFA supports the preparation of an appropriate
project plan with clear objectives, measurable results, a risk management strategy
and defined levels of management responsibility;
• During project/programmed implementation, the LFA provides a key management
tool to support contracting, operational work planning and monitoring;
• During the evaluation and audit stage, the Log frame matrix provides a summary
record of what was planned (objectives, indicators and key assumptions), and thus
provides a basis for performance and impact assessment.
Two main stages in developing log frame
Levels of Objectives
Impact – relate to the community, regional and national outcomes, to which
the project will contribute. Other inputs and initiatives will also contribute
to the same outcome.
Outcome – is the main objective in terms of continuous benefits being
utilised by users. It measures and defines the project success and the
change of behaviour.
Outputs – are the services and facilities that have been received by
beneficiaries.
Activities – are the services and facilities that the project provides.
Inputs – the resources: funds; personnel/skills; in-kind contribution; and,
assets; supplied to the project
Structure of the log frame matrix is as shown below
Cont…

• Examples
Cont.…
Stakeholder Analysis

• Strategy analysis involves identifying and characteristics

potential major stakeholders, assessing their capacity.
• Project stakeholders are entities that have an interest in a
given project.
• These stakeholders may be inside or outside an organization
which: sponsor a project, or. have an interest or a gain upon
a successful completion of a project;
Cont..

- According to the Project Management Institute (PMI),

the term project stakeholder refers to, ‘an individual,
group, or organization, who may affect, be affected
by, or perceive itself to be affected by a decision,
activity, or outcome of a project’

- These could range from donors to beneficiaries and all

associated individuals/entities
Types of Stakeholder

1. Primary Stakeholders include those whose interests lie at the heart

of the intervention, the ‘beneficiaries’: they experience the problem
that the project is aiming to solve and are usually users of services.
2. Secondary Stakeholders include those who need to be involved if
the intervention is to achieve its objectives, or who have a direct
interest in its success such as; Government bodies, partners, NGOs,
private sector organizations, potential donors.
3. Tertiary Stakeholders are those who may not be too involved at the
beginning but may be important in the long term.
• These may include commercial traders, financial institutions, legislative
and policy making bodies, civil organizations, local politicians, etc.
Stakeholder Record
Milk Value Chain
Power/Interest of Stakeholder
Problem analysis

Problem analysis identifies the negative aspects of an existing

situation and establishes the cause and effect’ relationships between
the identified problems. It involves three main steps:
1. Definition of the framework and subject of analysis;
2. Identification of the major problems faced by target groups
and beneficiaries (What is/are the problem/s? Whose
problems?); and
3. Visualization of the problems in form of a diagram, called a
“problem tree” or “hierarchy of problems” to help analyze
and clarify cause–effect relationships.
Cont..
Cont..

- The analysis is presented in diagrammatic form

showing effects of a problem on top and its
causes underneath.
- The analysis is aimed at identifying the real
bottlenecks which stakeholders attach high priority
to, and which they wish to overcome.
- A clear problem analysis thus provides a sound
foundation on which to develop a set of relevant
and focused project objectives
What should you do before constructing problem tree

- At the very beginning, identify a focal problem

- Identify relevant stakeholders and invite to analyse the

problem.

- Stakeholders (i.e participants) are given an opportunity to

speak about the associated problems, which either cause the
focal problem or are an effect of the focal problem.
 How to establish a problem tree

• Creating a problem tree should ideally be undertaken as a

participatory group event.
• Step 1: The aim of the first step is to openly brainstorm problems
which stakeholders consider to be a priority. This is raised based on
preliminary analysis of existing information and initial stakeholder
consultations.
• Step 2: From the problems identified through the brainstorming
exercise, select an individual starter problem
• Step 3: Look for related problems to the starter problem
Cont..
Step 4: Begin to establish a hierarchy of cause and effects:
• Problems which are directly causing the starter problem
are put below
• Problems which are direct effects of the starter problem
are put above
• Step 5: All other problems are then sorted in the
same way – the guiding question being ‘What
causes that?’ If there are two or more causes
combining to produce an effect, place them at the
same level in the diagram
Cont..

• Step 6: Connect the problems with cause-effect arrows – clearly

showing key links
• Step 7: Review the diagram and verify its validity and completeness.
Ask yourself/the group – ‘are there important problems that have
not been mentioned yet?’ If so, specify the problems and include
them at an appropriate place in the diagram.
• Step 8: Copy the diagram onto a sheet of paper to keep as a record,
and distribute (as appropriate) for further comment/information
Example - Problems

• Example - Problems
1. River water quality is deteriorating
2. Most household and factories discharge wastewater directly in the river
3. Pollution has been a low priority
4. Polluters are not controlled
5. Population are not aware of danger of waste dumping
6. Higher economic costs due to river pollution
7. Population is suffering from epidemic diseases
8. High level of waste dumped into the river
9. Poor Sanitation of water water infrastructure and limited access to part of population
Example - Problems
Example - Problems
Class activities

• Divided the class four part

1) Establish the Problem Tree in our project
2) Select the main problem
3) Mapping the Effect and causes in our main problem
a) Links in our primary and secondary both effect and causes

a) sh a problem tree
Analysis of objectives

• Help stakeholders imagine what the changed situation will be

• Identifies the means and ends logical relationship
• Visualized the means and ends relationship via an objective tree
diagram
Analysis of objectives

• The ‘negative situations’ of the problem tree are converted

into solutions, expressed as ‘positive achievements’.
• For example, ‘river water quality is deteriorating’ is
converted into ‘quality of river water is improved’.
• These positive achievements are in fact objectives, and are
presented in a diagram of objectives showing means/ends
hierarchy. This diagram aims to provide a clear overview of
the desired future situation.
Cont..

• The main steps in the process are summarized

below:
• Step 1: Reformulate all negative situations of the problems analysis
into positive situations that are desirable and realistically achievable
• Step 2: Check the means-ends relationships to ensure validity and
completeness of the hierarchy (cause-effect relationships are turned
into means-ends linkages
Cont..

• Step 3: If necessary:
• Revise statements
• Add new objectives if these seem to be relevant and
necessary to achieve the objective at the next higher level
• Delete objectives which do not seem suitable or necessary
Cont..

• Once again the analysis of objectives should be

undertaken through appropriate consultation with key
stakeholder groups.
• Once completed, the objective tree provides a
summary picture of the desired future situation,
including the indicative means by which ends can be
achieved. As with the problem tree, the objective tree
should provide a simplified but robust summary of
reality.
Problem and Objective Tree Analysis

• An Objective Tree is a Problem Tree that is transformed into a set of

future solutions to the problems. Each negative problem is converted
into an objective by rewriting it as a positive future statement
Cont..

Problem Tree Objective Tree

Effects Ends

Causes Means
Negative Statements Positive Statements
Steps in Formulating an Objective Tree

Summary of Formulating an Objective Tree from a Problem Tree

The relationship between the problems tree and the objective
tree

PROBLEM TREE OBJECTIVE TREE

• Focal problem Project Purpose

• Effects Overall
Objectives

• Causes Results
Reformulating Problem Statements into Objective Statements

 Reformulating the problems into objectives has to be done very

carefully.
 If a statement makes no sense after rewording, write a replacement
objective, or delete it, or leave the problem unchanged.
 It is important to review the formulated objectives and the resulting
objective tree.
Reformulating Problem Statements into Objective Statements

Problem statement: “lack of adequate rain levels” cannot be

transformed into “adequate rain levels available” because it is an
unrealistic objective. We cannot intervene into the natural
phenomenon by predicting or hoping that there will be adequate rain.
This problem, however, could be rewritten as “irrigation system
established and operational” which sounds more realistic and can be
intervened
Reformulating Problem Statements into Objective Statements

 Problem statement: “river water quality is deteriorating” can be

reformulated into “quality of river water is improved”.
 Problem statement: “loss of confidence in public services” can be
transformed into “people’s confidence in public services is
restored”.
 Problem statement: “public transportation is in bad condition” can
be reformulated into “public transportation is kept in good
condition”.
Steps in Formulating an Problem Tree and Objective Tree

• The following diagram illustrates a transformation of a problem tree

into an objective tree which uses “high staff turnover” as the main
problem
Examples of Problem and Objective Tree
Examples of Problem and Objective Tree
Examples of Problem and Objective Tree
An Example of River Water Quality
Examples of Problem and Objective Tree
• An Example of River Water Quality
Class activities-2

• Divided the class four part

1) Establish the Problem Tree in our project
2) Select the main problem
3) Mapping the Effect and causes in our main problem
a) Links in our primary and secondary both effect and causes

Convert our problem tree into objective Tree