PRM 135: PROPOSAL DEVELOPMENT AND COSTING

CIPRIANI COLLEGE OF LABOUR & COOPERATIVE STUDIES

BSC PROJECT MANAGEMENT PROGRAMME

WEEK 2 (2013/14 ACADEMIC YEAR)TECHNICAL SIDE OF PROJECT PROPOSALS

TOPICS* Project Proposal Content Logical Framework Approach (LFA)

What is it? Why is it important? What’s the link to Project Management? Main Stages of LFA The Analysis Stage The Logical Framework Matrix Pros and Cons of the LFA

Newer developments in LFA

Information sourced from1. Guide to The Logical Framework Approach (Gov’t of Serbia’s EU Integration

Office).2. Week #6 Lecture Presentation for 2012/13 PRM 135 Class

PROJECT PROPOSAL CONTENT A project proposal must contain an analysis of the problem to

be addressed and full details of the recommended solution. At minimum, a project proposal should specify: the Goals and Objectives, Scope, Action Plan, Resource

Requirements of the planned intervention, Some analysis of associated risks and how these will be addressed.

The field of Project Management has developed several tools

and techniques for detailing all the required content for a

project proposal

PROJECT PROPOSAL CONTENT (cont’d) Many of these tools and techniques are used either during

Project Identification and Selection or during the Project Planning.

Logical Framework Approach Problem Tree Analysis and Stakeholder Analysis

Work Breakdown Structure Cost Estimation Program Evaluation and Review Technique (PERT)

Analysis/Network Diagramme

PROJECT PROPOSAL CONTENT (cont’d) Project Scheduling Software Monte Carlo Simulation Results Matrices Responsibility Matrices Financial Analysis

The Logical Framework Approach (LFA) is such tool.

WHAT IS THE LFA? Management tool used in the design, monitoring and

evaluation of international development projects

Originally developed and applied in science (NASA) and the US private sector (management by objective) for planning and managing complex projects.

Developed in 1969 for the US Agency for International Development (USAID) by a consultant called Leon J. Rosenburg and formally adopted by USAID in the 1970s.

LFA has since been widely adopted and adapted by several development agencies globally.

WHAT IS THE LFA? (cont’d) A way of describing a project in a logical way so that it is:

Well designed Described objectively Can be evaluated Clearly structured.

LFAs help to: Analyze an existing situation, including the identification of

stakeholders’ needs and the definition of related objectives Establish a causal link between inputs, activities, results, purpose

and the overall project objective)

WHY IS THE LFA IMPORTANT? LFAs help to:

Define the assumptions on which the project logic builds Identify the potential risks for achieving objectives and purpose Establish a system for monitoring and evaluating project performance Establish a communication and learning process among the stakeholders (i.e.

clients/beneficiaries, planners, decision-makers and implementers).

In this way, the LFA serves an important “aid to thinking” in understanding the project context and in designing the potential solution. LFAs help to improve decision-makers’ understanding of the reason for the

project, the specific difference that the project will make (objectives) and how that change will be achieved (the project components).

WHAT IS LFA’s LINK TO PROJECT MANAGEMENT? LFA is used at various phases of the Project Cycle to

strengthen the identification, design (planning), implementation, monitoring and evaluation of projects.

LFA AND PROJECT CYCLE MANAGEMENT

Identification • Analyze the existing situation,

• Investigate the relevance of the proposed project

• Identify stakeholders, assess stakeholders needs, interests, and capacities

• Identify potential project objectives and strategies for project implementation

Design • Supports the preparation of an appropriate project plan

• Clear objectives,

• Measurable results,

• A risk management strategy

• Defined levels of management responsibility

LFA AND PROJECT CYCLE MANAGEMENT (cont’d)

Implementation Serves to ensure that changes to the project conform to the project’s overall logic and design

Serves as a basis for procurement of goods and services (esp. for contracted services, LFA helps inform the

TORs, RFPs)

Provides a basis for the project’s organisational structure, for specifying stakeholder responsibility and

accountability

Provides the basis for monitoring and reporting on project progress and achievement (indicators, sources

of evidence, resource requirements)

Provides the basis for operational risk management (assumptions)

Evaluation • Provides a framework for assessing project performance and impact.

• Provides a structure for preparing TORs for evaluation studies and performance audits.

MAIN STAGES OF THE LFA

PHASE 1: ANALYSIS PHASE PHASE 2: PLANNING PHASE

Stakeholder Analysis

Identifying and charactering potential major stakeholders; assessing their capacity

Logical Framework Matrix

Defining project structure, testing its internal logic and risks, generating

measurable indicators of success

Problem Analysis (Problem Tree)Identifying key problems, constraints & opportunities; determining cause and

effect relationships

Activity Scheduling

Determining the sequence and dependency of activities, estimating duration

and assigning responsibility

Objectives Analysis (Solutions Tree)

Developing solutions from the identified problems; identifying means-to-end

relationships

Resource Scheduling (Budgeting)

Developing input schedules and a budget

Strategy Analysis

Identifying different strategies to achieve solutions; selecting most appropriate

strategy.

THE LFA ANALYSIS STAGE Preparatory Analysis Stakeholder Analysis Problem Analysis Analysis of Objectives Analysis of Strategies/Alternatives

STAKEHOLDER ANALYSIS A Stakeholder is any individual, group of people, institution or

firm that may have an significant interest in the success or failure of a project.

A project usually has different types of stakeholders (e.g. sponsor/client, beneficiary, project partners).

Each type of stakeholder will have its own concerns, capacities and interests which need to be explicitly understood.

The most widely used tool by donor agencies for conducting Stakeholder Analysis is the Stakeholder Analysis Matrix and SWOT Analysis

STAKEHOLDER ANALYSIS MATRIXStakeholder and

basic characteristics

Problems (How

affected by the problems)

Interests(and possible actions to

address them)

Potential

(Capacity and motivation to

bring about change)

Fishing Families in XY Region100 families, low income earners, minimal formal

education, small scale family

businesses, limited skills beyond

fishing, high illiteracy rates, limited

access to capital, women involved in

subsistence agriculture and limited fish

processing.

1. Pollution affecting volume

and quality of catch.

• Family income and health being

affected

Improve their means of

livelihood.

• Support capacity to organise and

lobby for pollution control

• Implement industry pollution

control

• Develop capacity to pursue

alternative sources of income

Limited political influence due to

weak organisational structure

Keen interest in pollution control

measures.

SWOT ANALYSIS SWOT Analysis is used to analyse internal Strengths and

Weaknesses of an organisation and the external Opportunities and Threats.

Strengths• Men and women both represented

Weaknesses• Limited lobbying capacity and environmental

management skills

Opportunity• Growing public/political concern about maritime

pollution and its effects

Threats• Strong political influence of industry lobby groups

opposed to tighter environmental laws.

Note: Stakeholder Analysis is an iterative process that is developed throughout the stages of LFA. It is a process, not just a single isolated step.

PROBLEM ANALYSIS (PROBLEM TREE) Identifies negative aspects of an existing solution Establishes the “cause and effect” relationships between the

identified problems Distinguishes the problem’s “root cause” from its “symptons” Problems identified are all arranged in a “Problem-Tree” to

visually reflect the “cause and effect” relationship. Most critical stage in project identification, selection and

planning since it guides the development of both the Programme Charter and the detailed Project Plan.

Problem Tree

CORE PROBLEM

EFFECT EFFECT EFFECT

CAUSE CAUSE

CAUSE CAUSE CAUSE

EFFECT EFFECT

STEPS IN PROBLEM (TREE) ANALYSIS1. Identify major existing problems, based upon available

information.

2. Select an individual starter, a focal or core problem for analysis

3. Identify the related problems to the Core Problem

4. Separate related problems according to whether they contribute to the Core Problem (Causes) or result from the core problem (Effects)

5. Sort the Causes in terms of their relationship to each other.

6. Sort the Effects in terms of their relationship to each other

7. Connect the problems using Cause-Effect arrows, clearly showing key links.

8. Review the Problem Tree for logic, flow and completeness and adjust as necessary

OBJECTIVES ANALYSIS (OBJECTIVES TREE) Describes the situation in the future once all identified

problems have been remedied Verifies the hierarchy of objectives Represents the Means-Ends relationship in a diagram.

With Objective Analysis, the negative situations listed in the problem tree are converted into solutions and expressed as positive achievement.

Objectives Tree

PROJECT

OBJECTIVE OBJECTIVE OBJECTIVE

RESOURCE RESOURCE

RESOURCE RESOURCE RESOURCE

OBJECTIVE OBJECTIVE

ACTIVITIES

RESULTS

PURPOSE

OVERALL OBJECTIVE

STEPS IN OBJECTIVES (TREE) ANALYSIS1. Reformulate all negative situations of the problem analysis

into positive situations that are desirable and realistically achievable

2. Check the Means-Ends relationships to ensure validity and completeness of the hierarchy (Cause-Effect relationships are turned into Means-End linkages)

3. Work from the bottom upwards to ensure that the Cause-Effect relationships have become Means-Ends relationships.

4. Draw connecting lines to indicate the Means-Ends relationships.

STRATEGY ANALYSIS

Purpose is to identify possible alternative options/strategies, to assess feasibility of these and agree upon one project strategy.

Requires choosing the most pertinent and feasible cluster of objectives from the Objective Tree and making that the project intervention and related project components

Specific selection criteria would be used to make this determination

STEPS IN STRATEGY ANALYSIS

Identify different “Means-Ends” ladders, as possible alternative options or project components.

Eliminate objectives which are obviously not desirable or achievable Eliminate objectives which are pursued by other projects in the area Discuss the implications for affected groups Make an assessment of the feasibility of the different alternatives Select one of the alternatives as the project strategy

If consensus on the final strategy cannot be reached: Introduce alternative criteria or modify the most promising option (e.g. by

adding/subtracting elements from the Objective Tree)

LOGICAL FRAMEWORK MATRIX Reference Lecture #6 from 2012/13 Class.

PROS AND CONS OF LFAADVANTAGES DISADVANTAGES

• Ensures that fundamental questions are asked and weaknesses

are analysed to inform decision-making

• Does not allow for much flexibility in project administration (if over-

emphasis placed on objectives and external factors)

• Guides systematic and logical analysis of inter-related key elements of a well-designed project

• LFA is a general analytical tool (policy-neutral on several issues such

as income distribution, access to resources etc.) Cannot be a stand-

alone approach

• Improves project planning by highlighting linkages between

project element and external factors

• Requires systematic training, continuous practice and

methodological follow-up

• Provides better basis for systematic monitoring and analysis of project effects

• Facilitates common understanding and better communication between project stakeholders

NEWER DEVELOPMENTS IN LFA Reference Lecture #6 from 2012/13 Class.