Capacity Building in Project Identification, Formulation and Design

Capacity Building in Project Identification, Formulation and Design
Version: February 2011
© EIF 2011

Project Identification, Formulation and Design -----------------------------------------------------------------
This training resource was developed for the Enhanced Integrated Framework by the Centre for International Development and Training (CIDT) at the University of Wolverhampton, UK. The methodology presented in this document was piloted by the EIF Executive Secretariat, in collaboration with the Standards and Trade Development Facility (STDF), in selected Least Developed Countries in 2011. The interpretations and conclusions in this document are entirely those of the authors. They do not necessarily represent the view of the Enhanced Integrated Framework, or any of its partner agencies or donors. This document may be used and reproduced for non‐commercial purposes. Commercial uses are prohibited. The use of this document for training purposes is encouraged, and the EIF Secretariat would be grateful to received feedback on where and how this training resource is applied. For further information, contact the EIF Executive Secretariat by email ([email protected]).
© EIF 2011

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CONTENTS
INTRODUCTION ........................................................................................................ 3
1. STAKEHOLDER ANALYSIS; WHO ARE WE?.................................................. 6 1.1 Why do we involve others? .......................................................................... 6 1.2 Who do we need to involve? ........................................................................ 7 1.3 Undertaking a Stakeholder Analysis............................................................. 8 1.4 Where to get more information on stakeholder analysis:- ............................ 9 1.5 A note on the Organic and Fairtrade Dried Fruit (OFDF) project case study 9
2. PROBLEM ANALYSYS; WHERE ARE WE NOW? ..........................................12 2.1 Identifying Problems and Possibilities (the current situation) ......................12 2.2 Developing a Problem Tree.........................................................................12
3. OBJECTIVES AND OPTIONS ANALYSIS; WHERE DO WE WANT TO BE? .15 3.1 Looking forward...........................................................................................15 3.2 Developing an Objectives/Vision Tree.........................................................15 3.3 Choosing between options ..........................................................................17 3.4 Linking with the logframe.............................................................................18
4. OBJECTIVES DESIGN; HOW WILL WE GET THERE? ...................................19 4.1 Identifying our objectives .............................................................................19 4.2 The Objectives Column in the Logical Framework ......................................21 4.3 Checklist - Objectives ..................................................................................23
5. RISK MANAGEMENT; WHAT MAY STOP US GETTING THERE? .................24 5.1 Managing Risk ............................................................................................24 5.2 The Key Questions......................................................................................25 5.3 Undertaking a Risk Analysis........................................................................25 5.4 The Assumptions Column in the Logframe .................................................28 5.5 Checklist – Risks and Assumptions.............................................................31
6. HOW WILL WE KNOW IF WE’VE GOT THERE? .............................................32 6.1 Laying the foundations for Monitoring, Review and Evaluation (M,R&E) ....32 6.2 Terms and principles ...................................................................................32 6.3 The process in brief .....................................................................................34 6.4 Constructing indicators and targets .............................................................35 6.5 Types of Indicators ......................................................................................36 6.6 Identifying the Data Sources, the evidence .................................................38 6.7 Checklist – Indicators and Data Sources.....................................................40
7. RESOURCE PLANNING; WHAT DO WE NEED TO GET THERE? .................45 7.1 Preparing a Project Work Plan ....................................................................45 7.2 Preparing a Project Budget .........................................................................45
8. CONCLUSIONS .................................................................................................48 8.1 Checking the Logical Framework ................................................................48 8.2 Using the Logical Framework ......................................................................50 8.3 Nesting the Framework ...............................................................................50 8.4 Useful References.......................................................................................50

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APPENDIX A: GLOSSARY .....................................................................................51 APPENDIX B: PROJECT MANAGEMENT..............................................................54 APPENDIX C: SUMMARY OF THE LOGICAL FRAMEWORK ..............................58 APPENDIX D: STRENGTHS AND WEAKNESSES OF THE LOGFRAME ............60 APPENDIX E: CATEGORIES OF OUTPUTS ..........................................................65 APPENDIX F: ASSESSING PROJECT PERFORMANCE ......................................66 APPENDIX G: PORTFOLIOS OF LOGFRAMES ....................................................73 APPENDIX H: NESTING OF LOGICAL FRAMEWORKS .......................................74 APPENDIX I: THE LOGFRAME AS A COMMUNICATION TOOL ..........................76 APPENDIX J: REPORTING USING THE LOGFRAME; AN EXAMPLE .................77 APPENDIX K: AN EXAMPLE OF A SIMPLE LOGFRAME.....................................81 APPENDIX J: EXAMPLES OF LOGFRAMES.........................................................82

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INTRODUCTION
Project and Programme management and planning can be difficult at the best of times. When the project or programme is one that involves a whole range of partners and agencies, it can be made even more so.1 The “Programme and Project Thinking Tools” introduced in this handbook have evolved over several decades to support teams undergoing “project” work.
The term ‘project’ can be confusing. In essence a project is set of activities aimed at achieving clearly specified objectives within a defined time period and with a defined budget. The “Project Thinking Tools” can be applied at different levels of planning and decision-making. Essentially they can be used, with a relatively small project, a higher-level programme or indeed a whole organisation. In this handbook, the term ‘project’ is intended to include these higher levels.
The process of developing the key “thinking tool” - a logical framework (logframe) for a project includes the development with key partners of thorough and clear plans2. The logical framework can help to organise the thinking within the project and to guide the purpose, with built-in mechanisms for minimising risks and monitoring, reviewing and evaluating progress. Completed logical frameworks form the basis of a project plan and can be used as a reference tool for on-going reporting.
The thinking tool approach is divided into two phases of analysis and design.
The Project “Thinking Tool Approach”
Stakeholder analysis – identify who has an interest
and who needs to be involved
Problem analysis – identify key problems, causes
and opportunities; determine causes and effects
Objectives analysis – identify
solutions
Options analysis – identify and
apply criteria to agree strategy
Developing the logframe –
define project structure, logic, risk and performance management
Activity scheduling – set a
workplan and assigning responsibility
Resourcing – determine human
and material inputs

1 For more background on projects and project management, see Appendix B 2 For more information on the strengths and weaknesses of the logframe approach, see Appendix D

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Put it another way, the “Project Thinking Tool” process helps guide the planning of a journey from where we are now, HERE, to where we want to go, THERE. It works through 7 core questions. This guidebook devotes a chapter to each question.

HERE THERE

1 - Who are ‘we’?
Who has an interest? Who should be involved?
2 - Where are we now?
What are the problems? What are the possibilities?
3 - Where do we want to be?
What are the options? What are our objectives?
4 - How will we get there?
What activities do we have to undertake?
5 - What may stop us getting there?
What are the risks and how can we manage them? What assumptions are we making?
6 - How will we know if we’ve got there?
What are our indicators and targets? What evidence do we need?
7 – What do we need to get there?
What detailed activities and resources are needed?

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Figure 1: The Programme or Project Cycle

Evaluation • Internal • External
Evaluation
Project Completion Report (PCR)
Monitoring
Project Supervision Report
6 monthly reports

Strategic Objectives Vision/ Mission Plans
Project Idea
“Project Thinking Tools”:
• Stakeholder Analysis • Problem Analysis • Risk Analysis • Logical Framework • Communication
Lesson Learning
Approval to
Implement

Early Review Concept Note - Strategic fit - Profile - Funding - Team - Timing
Approval to Design
Project Approval • Project Information • Profile • Activities • Time and Work Plans • Finance and Budgets

The Programme or Project Cycle

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1. STAKEHOLDER ANALYSIS; WHO ARE WE?
1.1 Why do we involve others?
Involving key partners in the early stages of project planning helps ensure commitment and ownership. This can help minimise tensions later on and has the added benefit that it pools knowledge and experience; helping to ensure the plan is as robust as possible. In a multi-agency project this early involvement is vital. Effective engagement is likely to result in:
 Improved effectiveness of your project. There is likely to be a greater sense of ownership and agreement of the processes to achieve an objective. Responsiveness is enhanced; effort and inputs are more likely to be targeted at perceived needs so that outputs from the project are used appropriately.
 Improved efficiency. In other words project inputs and activities are more likely to result in outputs on time, of good quality and within budget if local knowledge and skills are tapped into and mistakes are avoided.
 Improved sustainability and sustainable impact. More people are committed to carrying on the activity after outside support has stopped. And active participation has helped develop skills and confidence and maintain infrastructure for the long term.
 Improved transparency and accountability if more and more stakeholders are given information and decision making power.
 Improved equity is likely to result if all stakeholders’ needs, interests and abilities are taken into account.

W hat the experts proposed

W hat the governm ent departm ent specified

T he design after review by an advisory com m ittee

The final com prom ise design agreed

The system actually installed

W hat the people really w anted!

Participation can have some simple but very important benefits!3
3 The original of this cartoon was published about 30 years ago. We have been unable to trace the cartoonist but we would very much like to acknowledge them.

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Participation is likely to have many benefits. But it is not a guarantee of success. Achieving participation is not easy. There will be conflicting interests that come to the surface; managing conflict is likely to be an essential skill. Participation can be time consuming. And it can be painful if it involves a change in practice; for example in the way institutions have ‘always done things’. Working out who needs to be involved and what their input/interest is likely to be needs to be done as early as possible, but should also be repeated in the later stages of the project to assess whether the original situation has changed and whether the involvement of groups is being adequately addressed.
1.2 Who do we need to involve? Analysing the stakeholders who need to be involved is one of the most crucial elements of any multi-agency project planning. Stakeholder analysis is a useful tool or process for identifying stakeholder groups and describing the nature of their stake, roles and interests. Doing a stakeholder analysis can help us to:
 identify who we believe should be encouraged and helped to participate  identify winners and losers, those with rights, interests, resources, skills and
abilities to take part or influence the course of a project  improve the project sensitivity to perceived needs of those affected  reduce or hopefully remove negative impacts on vulnerable and
disadvantaged groups  enable useful alliances which can be built upon  identify and reduce risks; for example identifying areas of possible conflicts
of interest and expectation between stakeholders so that real conflict is avoided before it happens  disaggregate groups with divergent interests.
Stakeholder analysis needs to be done with a variety of stakeholders to explore and verify perceptions by cross-reference. Some potential groups you may want to consider are:
 Users groups - people who use the resources or services in an area  Interest groups - people who have an interest in or opinion about or who can
affect the use of a resource or service  Winners and losers  Beneficiaries  Intermediaries  Those involved in and excluded from the decision-making process.

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Another useful way of thinking about stakeholders is to divide them into:
 Primary stakeholders. (Often the WHY or target population of a project.) They are generally the vulnerable. They are the reason why the project is
being planned. They are those who benefit from or are adversely affected by the project. They may be highly dependent on a resource or service or area (e.g. a neighbourhood, a health clinic) for their well-being. Usually they live in or very near the area in question. They often have few options when faced with change.
 Secondary stakeholders. (Often the HOW of reaching the Primary Stakeholders. These include all other people and institutions with a stake or interest or intermediary role in the resources or area being considered. Being secondary does not mean they are not important; some secondaries may be vital as means to meeting the interests of the primaries.
It may be helpful to identify Key Stakeholders; primary and secondary stakeholders who need to play an important active part in the project for it to achieve its objectives. These are the agents of change. Some key stakeholders are ‘gatekeepers’ who, like it or not, it is necessary to involve; otherwise they may have the power to block the project.
NOTE: Other meanings of the terms Primary and Secondary are used in some organisations. For example, Primary may refer to those directly affected, Secondary to those indirectly affected. This interpretation has generally been replaced by that above in order to emphasise a poverty and MDG-focus.
1.3 Undertaking a Stakeholder Analysis
There are many different tools to help us to think about our stakeholders. Which ones are used depends upon the questions that need to be addressed. This example is one way (but not the only way) of doing a stakeholder analysis.
There are several steps:
1. List all possible stakeholders, that is, all those who are affected by the project or can influence it in any way. Avoid using words like ‘the community’ or ‘the Local Authority’. Be more specific, for example, ‘12 to 14 year olds’ or the ‘Youth Service’
2. Identify, as thoroughly as possible, each stakeholder’s interests (hidden or open) in relation to the potential project. Note some stakeholder may have several interests. (See Figure 1a).
3. Consider the potential impact of the project on the identified stakeholders. Will the project have a positive or negative impact on them? (Award it + or - or +/or ?).
4. Decide which stakeholder groups should participate at what level and when during the project cycle (see Figure 1b). Remember you cannot work with all groups all of the time. Complete participation can lead to complete inertia!
There are many other ways of doing a stakeholder analysis and many other factors that could be considered.

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