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CASE STUDIES IN PROJECT MANAGEMENT

Lecture 4

Results-Based Management

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RBM and Logical Framework RBM and Logical Framework Approach (LFA)Approach (LFA)

The LFA is an RBM tool used for systematic planning, implementing, monitoring, and The LFA is an RBM tool used for systematic planning, implementing, monitoring, and evaluating projects/ programmes.evaluating projects/ programmes.

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The Logical Framework Approach The Logical Framework Approach (i)(i)

Features of LFAFeatures of LFA : : stakeholder involvementstakeholder involvement needs-based approachneeds-based approach logical intervention approachlogical intervention approach framework for assessing relevance, feasibility framework for assessing relevance, feasibility

and sustainabilityand sustainability

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The Logical Framework The Logical Framework

Approach (ii)Approach (ii) Features of LFAFeatures of LFA : :

results-oriented – not activity driven

logically sets objectives and their causal relationships

shows whether objectives have been achieved: Indicators (for M&E)

describes external factors that influence the project’s success: assumptions and risks

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Main steps:Main steps:• Stakeholder AnalysisStakeholder Analysis• SWOT AnalysisSWOT Analysis• Problem Tree AnalysisProblem Tree Analysis• Objective Tree AnalysisObjective Tree Analysis• Logical Framework MatrixLogical Framework Matrix• Monitoring and evaluationMonitoring and evaluation

LFA Key FeaturesLFA Key Features

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Stakeholder is any individuals, group or Stakeholder is any individuals, group or organization, community, with an interest in organization, community, with an interest in the outcome of a programme/project.the outcome of a programme/project.

Stakeholder AnalysisStakeholder Analysis

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Purpose:Purpose: To identify: To identify:

The needs and interest of stakeholders The needs and interest of stakeholders

The organizations, groups that should be The organizations, groups that should be encouraged to participate in different stages of encouraged to participate in different stages of the project; the project;

Potential risks that could put at risk programme;Potential risks that could put at risk programme;

Opportunities in implementing a programme;Opportunities in implementing a programme;

Stakeholder AnalysisStakeholder Analysis

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SWOT Analysis (i)SWOT Analysis (i)Purpose:Purpose: To assess the performance and capacity of the To assess the performance and capacity of the

participating units, divisions of organization. participating units, divisions of organization. Each participating unit has to undertake SWOT Each participating unit has to undertake SWOT

analysis.analysis.

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SWOT Analysis (ii)SWOT Analysis (ii) SWOT analysis is a tool for institutional SWOT analysis is a tool for institutional

appraisal and a brainstorming exercise in appraisal and a brainstorming exercise in which the representatives of the organization which the representatives of the organization participate fully.participate fully.

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SWOT Analysis (iii)SWOT Analysis (iii)

SWOT stands for: SWOT stands for: StrengthsStrengths - the positive internal attributes of - the positive internal attributes of

the organisationthe organisation WeaknessesWeaknesses - the negative internal attributes - the negative internal attributes

of the organisationof the organisation OpportunitiesOpportunities - external factors which could - external factors which could

improve the organisation’s prospectsimprove the organisation’s prospects ThreatsThreats - external factors which could - external factors which could

undermine the organisation’s prospectsundermine the organisation’s prospects

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Purpose:Purpose: - to identify major problems and their main - to identify major problems and their main causalcausal relationships. relationships.

Output:Output: problem tree with cause and effectsproblem tree with cause and effects

Problem Tree AnalysisProblem Tree Analysis

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Steps in Undertaking Problem Steps in Undertaking Problem Tree Tree

1. Identify the major problems that the project will address. State problems in negative manner.

2. Group problems by similarity of concerns.3. Develop the problem tree::

a) Select a focal problem from the list and relate other problems to the focal problem.

b) If the problem is a cause of the focal problem it is placed below the focal problem

c) If the problem is an effect of the focal problem is goes above

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Problem Tree

CAUSE

EFFECT

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Analysis of ObjectivesAnalysis of Objectives Transforming the problem tree into an Transforming the problem tree into an

objectives tree by restating the problems as objectives tree by restating the problems as objectives.objectives.

Problem statement converted in to positive Problem statement converted in to positive statementsstatements

Top of the tree is the end that is desiredTop of the tree is the end that is desired Lower levels are the means to achieving the Lower levels are the means to achieving the

end.end.

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Objectives Tree Objectives Tree

Ends

Means* Project Cycle Management Guide, 2004

*

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The relationship between the The relationship between the problems tree and the objective problems tree and the objective

treetree

PROBLEM TREEPROBLEM TREE OBJECTIVE TREEOBJECTIVE TREE Focal problem Focal problem Project PurposeProject Purpose

EffectsEffects OverallOverall Objectives Objectives

CausesCauses ResultsResults

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Strategy Analysis (i)Strategy Analysis (i) The aim of strategy analysis is division of the The aim of strategy analysis is division of the

objectives tree into more consistent smaller sub-units objectives tree into more consistent smaller sub-units that may, compose the core for a project.that may, compose the core for a project.

Each of the sub-units of the objective tree can Each of the sub-units of the objective tree can represent an alternative strategy for the future represent an alternative strategy for the future project. project.

The project objectives set the framework for the The project objectives set the framework for the strategy of the project. strategy of the project.

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Strategy Analysis (ii)Strategy Analysis (ii) Criteria for selection of the project strategy: Criteria for selection of the project strategy:

1. RELEVANCE: the strategy corresponds to the needs of the 1. RELEVANCE: the strategy corresponds to the needs of the stakeholders.stakeholders.

2. EFFECTIVENESS: the lower level objectives of the strategy 2. EFFECTIVENESS: the lower level objectives of the strategy will contribute to achievement of thewill contribute to achievement of the project purposeproject purpose

3. EFFICIENCY: cost-effectiveness of the strategy in 3. EFFICIENCY: cost-effectiveness of the strategy in transforming the means into results.transforming the means into results.

4. CONSISTENT with development policies4. CONSISTENT with development policies 5. SUSTAINABILITY of the project5. SUSTAINABILITY of the project 6. ASSUMPTIONS and RISKS6. ASSUMPTIONS and RISKS

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The Logframe MatrixThe Logframe Matrix

The main output of the LFA is the logframe matrix.The main output of the LFA is the logframe matrix. The Logical Framework Matrix is used to present The Logical Framework Matrix is used to present

information about project objectives, outputs and information about project objectives, outputs and activities in a systematic and logical way. activities in a systematic and logical way.

The basic Logframe matrix contains 16 cells organized The basic Logframe matrix contains 16 cells organized into 4 columns and 4 rows, as indicated in the next into 4 columns and 4 rows, as indicated in the next slide:slide:

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The Logical Framework Matrix

Objectives & activities

Purpose/ (Outcome)

Goal (Impact)

Outputs

ActivitiesMeans

IndicatorsMeans of

verificationAssumptions

What needs to be fulfilled

before activities can

start

Pre-conditions

Cost

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Assumptions (i)Assumptions (i) Describe necessary internal and external conditions Describe necessary internal and external conditions

in order to ensure that the activities will produce in order to ensure that the activities will produce resultsresults

Assumptions are risks, which can jeopardize the Assumptions are risks, which can jeopardize the success of the projectsuccess of the project

Are worded positively, i.e. they describe Are worded positively, i.e. they describe circumstances required to achieve certain circumstances required to achieve certain objectivesobjectives

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Assumptions (ii)Assumptions (ii) Should be relevant and probableShould be relevant and probable

If an assumption is not important or almost If an assumption is not important or almost certain: Do not includecertain: Do not include

If an assumption is unlikely to occur: Killer If an assumption is unlikely to occur: Killer assumption – abandon projectassumption – abandon project

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Assumptions (iii)Assumptions (iii)

Example of Assumptions for the Goal and Example of Assumptions for the Goal and Purpose: Purpose: Political – stability of NSO and government Political – stability of NSO and government

staffstaff Economic – sustainable economy Economic – sustainable economy Etc.Etc.

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Assumptions (iv)Assumptions (iv)

Example of Assumptions:Example of Assumptions: Adequate funds materials.Adequate funds materials. Skilled people – training needs.Skilled people – training needs. Approvals & contracts – legal, administrative.Approvals & contracts – legal, administrative. Participation of stakeholders.Participation of stakeholders.

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The logical frameworkThe logical framework

Outcome

Impact

Outputs

Activities

Assumptions

Assumptions

Assumptions

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Indicators (i)Indicators (i) Indicators measure to verify to what extant the results are Indicators measure to verify to what extant the results are

achieved.achieved. Specify how the achievement of an objective can be verified or Specify how the achievement of an objective can be verified or

demonstrateddemonstrated Provide a basis for Monitoring and EvaluationProvide a basis for Monitoring and Evaluation 3 Dimensions of Indicators3 Dimensions of Indicators

QuantityQuantity QualityQuality TimeTime

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Indicators (ii)Indicators (ii)

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Means of VerificationMeans of Verification Tools or means to obtain the informationTools or means to obtain the information required by the indicatorsrequired by the indicators Include:Include:

project documentsproject documents field verificationfield verification ad-hoc studiesad-hoc studies

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Results Chain & Logical Framework Matrix

RBM

Result

Result

Result

Goal/Impact

Result

Purpose/Outcome

Output

Activities

LFA