Project Cycle Management

(Logical Framework Approach)

Two Day Primer Workshop

- Course work Compiled from

Aid Delivery Methods – Volume 1, Project Cycle Management Guidelines,
European Union, 2004

ROOTS – 5: - Project cycle management, Tearfund

- Compiled by
Abraham Dennyson K
dennyson@gmail.com
Manager, MCH – Community Health & Development Programmes
Madhepura Christian Hospital,
Emmanuel Hospital Association,
Madhepura, Bihar - 852113

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 Table of Contents
INTRODUCTION ............................................................................................................................................ 6
What is a project? ..................................................................................................................................... 6
Project cycle management (PCM)............................................................................................................ 6
The project cycle ....................................................................................................................................... 6
IDENTIFICATION.................................................................................................................................... 7
DESIGN .................................................................................................................................................... 7
IMPLEMENTATION................................................................................................................................. 7
EVALUATION .......................................................................................................................................... 7
LESSON LEARNING ................................................................................................................................ 7
EXERCISE 1: ................................................................................................................................................... 7
Give examples of projects; Examples of projects could include:.............................................................. 7
THE LOGICAL FRAMEWORK APPROACH............................................................................................ 8
TWO MAIN PHASES...................................................................................................................................... 8
Analysis Phase .......................................................................................................................................... 8
Planning Phase ......................................................................................................................................... 8
STAKEHOLDERS ........................................................................................................................................... 9
PRIMARY STAKEHOLDERS ................................................................................................................... 9
SECONDARY STAKEHOLDERS ............................................................................................................. 9
EXERCISE 2................................................................................................................................................... 10
Identify the different stakeholders........................................................................................................... 10
STAKEHOLDER ANALYSIS ...................................................................................................................... 11
1. Stakeholder analysis matrix – how affected by the general problem or opportunity? .................. 11
Stakeholder analysis Matrix.................................................................................................................... 11
2. Stakeholder.................................................................................................................................... 12
EXERCISE 3................................................................................................................................................... 12
SWOT ANALYSIS......................................................................................................................................... 13
SWOT Matrix .......................................................................................................................................... 13
PROBLEM ANALYSIS................................................................................................................................. 14
METHOD OF CONSTRUCTING A PROBLEM TREE ........................................................................... 14
STEP 1 .................................................................................................................................................... 14
STEP 2 .................................................................................................................................................... 14
STEP 3 .................................................................................................................................................... 15
EXERCISE 4: ................................................................................................................................................. 15
Group Work:- Establish a problem tree with the main problem as Shortage of Drinking water ........... 15
STEP 4: ................................................................................................................................................... 16
ANALYSIS OF OBJECTIVES ..................................................................................................................... 17
OBJECTIVES TREE..................................................................................................................................... 17
EXERCISE 5: ................................................................................................................................................. 18
Group Work: - Establish an Objective Tree from the ‘lack of income’ problem tree ............................. 18
LOGICAL FRAMEWORKS (LOG FRAMES) .......................................................................................... 19

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 General Sequence of completion............................................................................................................. 20
Link between Logframe and indicator/ Evidence Terminology .............................................................. 20
Example of Indicators & sources of verification .................................................................................... 20
Intervention Logic................................................................................................................................... 21
Relationship between assumption and objective hierarchy .................................................................... 21
EXERCISE 6: ................................................................................................................................................. 22
Group Work:- Prepare a log frame for a project to Decrease incidence and impact of diarrhoeal
disease..................................................................................................................................................... 22
ACTIVITY SCHEDULE (KNOWN AS A GANTT CHART) ................................................................... 23
EXERCISE 7: ................................................................................................................................................. 23
Group Work - Prepare a log Gantt chart for the above project (Decrease incidence and impact of
diarrhoeal disease) ................................................................................................................................. 23
MONITORING, REVIEWING & EVALUATION .................................................................................... 24
Comparison............................................................................................................................................. 24
Assessment & Hierarchy of Objective relationship ................................................................................ 25
How to complete the summary reports?.................................................................................................. 25
GLOSSARY .................................................................................................................................................... 29
Activities.................................................................................................................................................. 29
Analysis of Objectives ............................................................................................................................. 29
Activity Schedule..................................................................................................................................... 29
Appraisal................................................................................................................................................. 29
Assumptions ............................................................................................................................................ 29
Commitment ............................................................................................................................................ 29
Evaluation............................................................................................................................................... 29
Evaluation Phase .................................................................................................................................... 29
Factors Ensuring Sustainability.............................................................................................................. 29
Feasibility Study...................................................................................................................................... 30
Gantt Chart ............................................................................................................................................. 30
Hierarchy of Objectives .......................................................................................................................... 30
Identification Phase ................................................................................................................................ 30
Formulation Phase.................................................................................................................................. 30
Implementation Phase............................................................................................................................. 30
Indicative Programmes........................................................................................................................... 30
Integrated Approach ............................................................................................................................... 30
Intervention Logic................................................................................................................................... 30
Logframe................................................................................................................................................. 31
Logical Framework Approach (LFA) ..................................................................................................... 31
Means...................................................................................................................................................... 31
Milestones ............................................................................................................................................... 31
Monitoring .............................................................................................................................................. 31
Objective ................................................................................................................................................. 31
Objective Tree......................................................................................................................................... 31
Objectively Verifiable Indicators (OVI).................................................................................................. 31
Overall Objective (also called ‘Goal’) ................................................................................................... 31
Pre-Conditions........................................................................................................................................ 31
Prefeasibility Study ................................................................................................................................. 32
Problem Analysis .................................................................................................................................... 32
Programming Phase ............................................................................................................................... 32
Project..................................................................................................................................................... 32
Project Cycle........................................................................................................................................... 32
Project Purpose ...................................................................................................................................... 32

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Recurrent Costs....................................................................................................................................... 32
Resource Schedule .................................................................................................................................. 32
Results..................................................................................................................................................... 32
Risks, Constraints & Assumptions .......................................................................................................... 33
Sources of Verification............................................................................................................................ 33
Stakeholders............................................................................................................................................ 33
Strategy Analysis..................................................................................................................................... 33
Sustainability .......................................................................................................................................... 33
SWOT Analysis ....................................................................................................................................... 33
Terms of Reference ................................................................................................................................. 33
Workplan................................................................................................................................................. 33

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 PCM Training
(Logical Framework Approach)

Objective
By the end of the workshop, participants will understand:
1. the role of the project cycle, and key activities to be undertaken at each stage
2. the principles of Project Cycle Management & the Logical Framework Approach
(LFA)
3. the role of the log frame in project monitoring & evaluation

Participants

Project officers (EHA)

Project Assistants (EHA)

Volunteers (EHA)

Junior Field Officers (EFICOR)

Schedule

06 Oct 2009 07 Oct 2009

(Analysis Phase) (Planning Phase)
0900 – 0930 Introduction to PCM Logical frameworks
0930 – 1030 Introduction to LFA
1030 – 1100 Tea Break Tea Break
1100– 1145 Stakeholder Analysis & Matrix Log Frame Exercise
1145 – 1230 SWOT Analysis
1230 – 0130 Lunch Lunch
0130 – 0230 Problem Analysis & Problem Tree Activity Schedule
0230 – 0245 Tea Break Tea Break
0245 – 0345 Analysis of Objectives & Objective Monitoring & Reviewing
Tree
0345 – 0430 Reflection time Evaluation

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Introduction
What is a project?
A project is a series of activities aimed at bringing about clearly specified objectives within
a defined time-period and with a defined budget

Project cycle management (PCM)

PCM is the term given to the process of planning and managing projects, programmes and
organisations. It is used widely in the business sector and is increasingly being used by
development organisations. Development projects sometimes fail because they are badly
planned and do not take account of some important factors, particularly the needs and
views of stakeholders. PCM is based around a project cycle, which ensures that all aspects
of projects are considered.

The project cycle

The process of planning and managing projects can be drawn as a cycle. Each phase of the
project leads to the next.

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IDENTIFICATION
To identify what a project will focus on, we need to find out who should benefit and what
their needs are. A ‘needs assessment’ will give an overview of community problems. A
‘capacity assessment’ will help identify which problem the project should address.

DESIGN
Once it is decided to go ahead with the project, we can start to think about the detail. This
involves carrying out further research into the people affected by a problem and how they
are affected by it. We also need to consider the risks to the project and how we will
measure the project’s performance.

IMPLEMENTATION
During the implementation of the project it is important to monitor and review the progress
of the project and any outside changes that affect it. The project plans should be adjusted
where necessary.

EVALUATION
Evaluation should be carried out at or after project completion. Evaluation could be carried
out a few months or years after the project has finished in order to assess its longterm
impact and sustainability.

LESSON LEARNING
While the project cycle is a useful way of outlining the stages of a project, it has one
drawback: it makes it look as though one tool follows another. In fact, many of the
planning tools can be used at any stage of the project. They should be repeated throughout
the project’s life to ensure that any changes that might affect project success are accounted
for. Findings should also be used for organisational learning and to improve other projects.

Exercise 1:
Give examples of projects; Examples of projects could include:

A sanitation project to reduce people dying of diarrhea in 5 villages costing 10 Lakh
rupees over one year.

A health service reform and expansion project, implemented primarily by the
Ministry of Health of the partner government and with financial support of other
donors, costing Rs. 300 Crore over 10 years;

An emergency relief project, coordinated by the UN and implemented through
NGOs, costing Rs. 5 crore over one year;

A road and bridge building project, using a contracted project manager, costing Rs
3 Crore over 5 years;

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The Logical Framework Approach
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 analyse the existing
situation, investigate the relevance of the proposed project and identify potential
objectives and strategies;

During the formulation stage (Design & Planning), 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/programme implementation, the LFA provides a key management
tool to support contracting, operational work planning and monitoring; and

During the evaluation and audit stage, the Logframe 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 Phases

Analysis Phase Planning Phase

Stakeholder analysis – identifying &
Developing Logical Framework
characterising potential major matrix - defining project structure,
stakeholders; assessing their capacity testing its internal logic & risks,

Problem analysis – identifying key formulating measurable indicators of
problems, constraints & opportunities; success
determining cause & effect
Activity scheduling – determining the
relationships sequence and dependency of

Objective analysis – developing activities; estimating their duration, and
solutions from the identified problems; assigning responsibility
identifying means to end relationships
Resource scheduling - from the

Strategy analysis – identifying activity schedule, developing input
different strategies to achieve schedules and a budget
solutions; selecting most appropriate
strategy.

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The project should come out of what people say they want and not from assumptions that
we make. Organise and participate in consultations with key stakeholders throughout
different phases (e.g. partner government institutions, nonstate entities, civil-society
groups, other donors, etc), and ensure their active involvement in decision making.

Stakeholders
Any individuals, groups of people, institutions or firms that may have a significant interest
in the success or failure of a project (either as implementers, facilitators, beneficiaries or
adversaries) are defined as ‘stakeholders’. It is important that stakeholder analysis take
place at an early stage in the identification and appraisal phases of a project / program.
Stakeholders can be divided into two main types:

PRIMARY STAKEHOLDERS
who benefit from, or are adversely affected by, an activity. This term describes people
whose well-being may be dependent on a resource or service or area (e.g. a forest) that the
project addresses. Usually they live in the area or very near the resources in question. They
often have few options when faced with change, so they have difficulty adapting. Primary
stakeholders are usually vulnerable. They are the reason why a project is carried out – the
end users.

SECONDARY STAKEHOLDERS
include all other people and institutions with an interest in the resources or area being
considered. They are the means by which project objectives can be met, rather than an end
in themselves.

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Exercise 2
Identify the different stakeholders
Study the picture below. Villagers are concerned about a new dam which has been
proposed in their valley. The dam will help provide drinking water for the city. It is decided
that the project should focus on ensuring that the views of villagers are listened to so that
their livelihoods are not adversely affected. Identify the different stakeholders of the
proposed dam, saying whether they are primary or secondary.

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Stakeholder analysis
1. Stakeholder analysis matrix – how affected by the general
problem or opportunity?
An example of a stakeholder analysis matrix format is shown in Figure below.
The type of information collected, analysed and presented in the columns of such a matrix
can be adapted to meet the needs of different circumstances.
For example, additional columns could be added to specifically deal with the different
interests of women and men. Also, when analyzing potential project objectives in more
detail (at a later stage in project planning), greater focus should be given to analyzing the
potential benefits and costs of a proposed intervention to different stakeholder groups.
Stakeholder analysis Matrix

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2. Stakeholder Table

List all the possible stakeholders in the project. Divide these into primary stakeholders
and secondary stakeholders. Remember to include supporters and opponents, user
groups, vulnerable groups and sub-groups that are relevant to the project.

In the second column, write down the interests of each stakeholder in relation to the
project and its objectives. These interests might be obvious. However, there might be
some hidden interests, so assumptions might need to be made about what these are
likely to be. Remember that each stakeholder might have several interests.

In the third column, write down the likely impact of the project on each stakeholder’s
interests. This will enable us to know how to approach the different stakeholders
throughout the course of the project. Use symbols as follows:
i. + Potential positive impact on interest
ii. Potential negative impact on interest
iii. +/– Possible positive and negative impact on interest
iv. ? Uncertain

In the fourth column, indicate the priority that the project should give to each stake
holder in meeting their interests. Use the scale 1 to 5, where 1 is the highest priority.

Exercise 3: Complete a stakeholder table for the stakeholders

identified for the proposed dam.

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SWOT analysis
SWOT analysis (strengths, weaknesses, opportunities and threats) is used to analyse the
internal strengths and weaknesses of an organization and the external opportunities and
threats that it faces. It can be used either as a tool for general analysis, or to look at how an
organization might address a specific problem or challenge.
The quality of information derived from using this tool depends (as ever) on who is
involved and how the process is managed – it basically just provides a structure and focus
for discussion.
SWOT is undertaken in three main stages, namely:
1. Ideas are generated about the internal strengths and weaknesses of a group or
organization, and the external opportunities and threats;
2. The situation is analysed by looking for ways in which the group/organisation’s
strengths can be built on to overcome identified weaknesses, and opportunities can
be taken to minimize threats; and
3. A strategy for making improvements is formulated (and then subsequently
developed using a number of additional analytical planning tools).
An example of a SWOT matrix, further analyzing the capacity of Fishing Cooperatives to
represent members’ interests and manage change, is shown in Figure below:

SWOT Matrix

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Problem Analysis
Problem analysis identifies the negative aspects of an existing situation and establishes the
‘cause and effect’ relationships between the identified problems. Problem trees enable
stakeholders to get to the root of their priority need and to investigate the effects of the
problem. 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. Visualisation of the problems in form of a diagram, called a “problem tree” or
“hierarchy of problems” to help analyse and clarify cause–effect relationships.
The analysis is presented in diagrammatic form (see Figure) 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.
METHOD OF CONSTRUCTING A PROBLEM TREE
STEP 1
Main Problem Agree on the main problem, usually the one identified during project
identification. Write it on a post-it note or piece of card and place it in the middle of the
wall or floor. There might be other problems identified by the community that could be
explored. Draw separate problem trees for these and compare them later when starting to
think about exactly what the project will address.

STEP 2
CAUSES: Identify the causes of the main problem by asking ‘But why?’ until we can go
no further. Write each cause on a separate post-it note or piece of card. Some problems
might have more than one cause. For example:

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STEP 3
EFFECTS: Identify the causes of the main problem by asking ‘But why?’ until we can go
no further. Write each effect on a separate post-it note or piece of card. Some problems
might have more than one effect. For example:

Exercise 4:
Group Work:- Establish a problem tree with the main problem as
Shortage of Drinking water

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STEP 4:
Construct a problem Tree: Copy the problem tree onto a sheet of paper. Draw in vertical
links to show the relationship between the causes or effects. Draw horizontal lines to show
where there are joint causes and combined effects.

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Analysis of Objectives
Analysis of objectives is a methodological approach employed to:

Describe the situation in the future once identified problems have been remedied;

Verify the hierarchy of objectives; and

Illustrate the means-ends relationships in a diagram.

The ‘negative situations’ of the problem tree are converted into solutions, expressed
as ‘positive achievements’
The main steps in the process are summarised below
First. Reformulate all negative situations of the problems analysis into positive
situations that are:

desirable

realistically achievable

Second. Check the means-ends relationships to ensure validity and completeness of

the hierarchy (cause-effect relationships are turned into means-ends linkages)

Third. 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

Objectives tree
An objectives tree is similar to a problem tree, except that it looks at objectives rather than
problems. An objectives tree can be developed without first identifying problems, but the
easiest way to develop an objectives tree is to convert a problem tree.
To do this, turn each of the causes in the problem tree into positive statements. For
example, ‘poor yields’ would become ‘yields increased’. This will result in an objectives
tree. Check the logic. Will one layer of objectives achieve the next? Add, delete or change
objectives if necessary.

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Focus Area: If we try to address all of the objectives we have identified, we will find we
have a very expensive and lengthy project. It is therefore necessary to focus on one or a
few areas of the objectives tree. If more than one objectives tree has been drawn, we will
need to decide which of these to focus on for the project
Ask the following questions:

Which objectives should we address?

Which combination of objectives are most likely to bring about the most positive
change?
Issues to consider are:

cost

benefits to primary stakeholders

likelihood of achieving the objectives

risks (see page 45)

whether other organisations are already addressing the problem

sustainability

environmental impact.
Look at the objectives tree and identify the branches that the project could address. For
example, for the objectives tree above, it might be decided to address the right-hand branch
(circled).
It is a good idea to come back to the objectives tree later when starting to think of project
assumptions. All the objectives that are left in the objectives tree can be viewed as
constraints which could affect project success.

Exercise 5:
Group Work: - Establish an Objective Tree from the ‘lack of income’
problem tree

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Logical frameworks (log frames)
The log frame is a tool used to help strengthen project design, implementation and
evaluation. Although it is constructed during the planning stage of a project, the log frame
is a living document, which should be consulted and altered throughout the project’s life
cycle.
The log frame is a table of four rows and four columns, where all the key parts of a project
can be inserted as a clear set of statements: the project goal, purpose, outputs and activities,
with their indicators, evidence and assumptions. It shows the project’s structure and
describes the project logically.
The log frame asks a series of further questions:

Where do we want to be? (GOAL, PURPOSE)

How will we get there? (OUTPUTS, ACTIVITIES)

How will we know when we have got there? (INDICATORS)

What will show us we have got there? (EVIDENCE or SOURCE of
VERIFICATION)

What are the potential problems along the way? (ASSUMPTIONS)

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General Sequence of completion

Link between Logframe and indicator/ Evidence Terminology

Example of Indicators & sources of verification

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Intervention Logic

The logic is tested and refined by analysis of assumptions in the fourth column of matrix

Relationship between assumption and objective hierarchy

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Exercise 6:
Group Work:- Prepare a log frame for a project to Decrease incidence
and impact of diarrhoeal disease

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Activity schedule (known as a Gantt chart)
The activity schedule enables us to consider when our activities will happen and for how
long. This will help us to think about when would be appropriate to carry out the different
activities.
Timing will depend on things such as:

seasonal weather patterns

availability of trainers

availability of materials.
The activity schedule helps us to look at the sequencing of activities because some
activities will depend on others being completed first.
Use the activity schedule during the project to monitor progress. Ask questions like:

Why are these activities not happening to schedule?

What will be the effect of this on other project activities?

How can we catch up?
The activity schedule should be viewed as a flexible document and can be altered if new
circumstances arise.
The lines in the chart indicate the time span for each activity. Make some lines thicker if
the activity is intense, and so avoid planning too many intense activities at the same time.
Put the initials of the member of the team who is responsible for the activity above each
line. The chart format can be altered if we want to indicate activities on a week-by-week
basis.
Example:

Exercise 7:
Group Work - Prepare a log Gantt chart for the above project (Decrease
incidence and impact of diarrhoeal disease)

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Monitoring, Reviewing & Evaluation
Many people think of monitoring, reviewing and evaluation as the same thing, but they are
different. One of the main differences is that they are carried out at different stages of the
project:

MONITORING is done continuously to make sure the project is on track, for example,
every month.

REVIEWING is done occasionally to see whether each level of objectives leads to the
next one and whether any changes need to be made to the project plans, for example,
every six months.

EVALUATION is usually done at the end of the project to assess its impact.

Wherever possible, primary stakeholders should take part in monitoring, reviewing and
evaluation. This is to ensure that they have strong ownership of the project so that benefits
are achieved and sustained.

Comparison
The table below looks at some other differences between the three terms.

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Assessment & Hierarchy of Objective relationship
Monitoring, reviewing and evaluation each assess indicators at different levels in the hierarchy
of objectives as the log frames shown below.

How to complete the summary reports?

Copy the summary and indicators from the log frame into the first two columns.

Report against each indicator in the progress column. Add any unplanned activities
that have been carried out underneath.

Comment against each indicator and make recommendations where appropriate.
Note unexpected outcomes in the comments and recommendations column and the
extent to which the assumptions are being met.

In the ratings column, place a number to show whether, at the current time, the
objective is likely to be achieved or not.

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 Glossary
Activities
The specific tasks to be undertaken during a project’s life in order to obtain results.

Analysis of Objectives
Identification and verification of future desired benefits to which the beneficiaries attach
priority. The output of analysis of objectives is the objective tree.

Activity Schedule
A Gantt chart, a graphic representation similar to a bar chart, setting out the timing,
sequence and duration of project activities. It can also be used to identify milestones for
monitoring progress, and to assign responsibility for achievement of milestones.

Appraisal
Analysis of a proposed project to determine its merit and acceptability in accordance with
established criteria. This is the final step before a project is agreed for financing. It checks
that the project is feasible against the situation on the ground, that the objectives set remain
appropriate and that costs are reasonable.

Assumptions
See “risks and assumptions”

Commitment
A commitment is a formal decision taken by the funding agency to set aside a certain
amount of money for a particular purpose. No expenditure can be incurred in excess of the
authorized commitment.

Evaluation
A periodic assessment of the efficiency, effectiveness, impact, sustainability and relevance
of a project in the context of stated objectives. It is usually undertaken as an independent
examination of the background, objectives, results, activities and means deployed, with a
view to drawing lessons that may guide future decision-making.

Evaluation Phase
The sixth and final phase of the project cycle during which the project is examined against
its objectives, and lessons are used to influence future actions.

Factors Ensuring Sustainability

Factors that are known to have had a significant impact on the sustainability of benefits
generated by projects in the past, and which should be taken into account in the design of
future projects.

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Feasibility Study
A feasibility study, conducted during the formulation phase, verifies whether the proposed
project is well-founded, and is likely to meet the needs of its intended beneficiaries. The
study should design the project in full operational detail, taking account of all technical,
economic, financial, institutional, management, environmental and socio-cultural aspects.
The study will provide the European commission and partner government with sufficient
information to justify acceptance, modification or rejection of the proposed project for
further financing.

Gantt Chart
A method of presenting information graphically, often used for activity scheduling. Similar
to a bar chart.

Hierarchy of Objectives
Activities, results, project purpose, overall objectives as specified in the intervention logic.

Identification Phase
The second phase of the project cycle. It involves the initial elaboration of the project idea
in terms of objectives, results and activities, with a view to determining whether or not to
go ahead with a feasibility study.

Formulation Phase
The third phase in the project cycle. It involves the establishment of the details of the
project on the basis of a feasibility study, followed by an examination by EC staff to assess
the project’s merits and consistency with sectoral policies.

Implementation Phase
The fifth phase of the project cycle during which the project is implemented, and progress
towards achieving objectives is monitored.

Indicative Programmes
These are prepared by the European Commission in coordination with partner country
governments. They provide general guidelines and principles for cooperation with the
European Union. They specify focal sectors and themes within a country or region and may
set out a number of project ideas.

Integrated Approach
The consistent examination of a project throughout all the phases of the project cycle, to
ensure that issues of relevance, feasibility and sustainability remain in focus.

Intervention Logic
The strategy underlying the project. It is the narrative description of the project at each of
the four levels of the ‘hierarchy of objectives’ used in the logframe.

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Logframe
The matrix in which a project’s intervention logic, assumptions, objectively verifiable
indicators and sources of verification are presented.

Logical Framework Approach (LFA)

A methodology for planning, managing and evaluating programmes and projects, involving
problem analysis, analysis of objectives, strategy analysis, preparation of the logframe
matrix and activity and resource schedules.

Means
The inputs required in order to do the work (such as personnel, equipment and materials).

Milestones
A type of OVI providing indicators for short-term objectives (usually activities) which
facilitate measurement of achievements throughout a project rather than just at the end.
They also indicate times when decisions can be made.

Monitoring
The systematic and continuous collecting, analysing and using of information for the
purpose of management control and decision-making.

Objective
Description of the aim of a project or programme. In its generic sense it refers to activities,
results, project purpose, overall objectives and goals.

Objective Tree
A diagrammatic representation of the proposed project interventions planned logically,
following a problem analysis, showing proposed means, resources and ends.

Objectively Verifiable Indicators (OVI)

Measurable indicators that will show whether or not objectives have been achieved at each
level of the logframe hierarchy. OVIs provide the basis for designing an appropriate
monitoring system.

Overall Objective (also called ‘Goal’)

Objective in the wider sectoral and national sector, to which the project is designed to
contribute.

Pre-Conditions
Pre-conditions (if any) attached to the provision of aid which must be met before the
project can commence.

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Prefeasibility Study
The prefeasibility study, conducted during the identification phase, ensures that all
problems are identified and alternative solutions are appraised, and selects a preferred
alternative on the basis of sustainability criteria. The study will provide the European
commission and partner government with sufficient information to justify acceptance,
modification or rejection of the proposed project for further formulation.

Problem Analysis
A structured investigation of the negative aspects of a situation in order to establish causes
and their effects.

Programming Phase
The first phase of the project cycle during which the Indicative Programme is prepared.

Project
A project is a series of activities aimed at bringing about clearly specified objectives within
a defined time-period and with a defined budget.

Project Cycle
The project cycle follows the life of a project from the initial idea through to its
completion. It provides a structure to ensure that stakeholders are consulted, and defines the
key decisions, information requirements and responsibilities at each phase so that informed
decisions can be made at key phases in the life of a project. It draws on evaluation to build
the lessons of experience into design of future programmes and projects.

Project Purpose
The central objective of the project in terms of sustainable benefits to be delivered to the
project beneficiaries. It does not refer to the services provided by the project (these are
results), nor to the utilisation of these services, but to the benefits which project
beneficiaries derive as a result of using project services.

Recurrent Costs
Costs which are incurred for operation and maintenance that will continue to be incurred
after the implementation period of the project.

Resource Schedule
The project budget.

Results
The outputs produced by undertaking a series of activities. The results are what the
project will have achieved by its completion date.

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Risks, Constraints & Assumptions
External factors which could affect the progress or success of the project, but over which
the project manager has no direct control.

Sources of Verification
The means by which the indicators or milestones will be recorded and made available to
project management or those evaluating project performance.

Stakeholders
Any individuals, groups of people, institutions or firms that may have a relationship with
the project/programme are defined as stakeholders. They may – directly or indirectly,
positively or negatively – affect or be affected by the process and the outcomes of projects
or programmes. Usually, different sub-groups have to be considered.

Strategy Analysis
Critical assessment of the alternative ways of achieving objectives, and selection of one or
more for inclusion in the proposed project.

Sustainability
A key requirement for a successful project. Sustainability is the ability to generate results
after the external support has been discontinued. While a project is limited by time, the
benefits should continue and the activities should be developed long after the project has
ended, without the need for external
inputs.

SWOT Analysis
Analysis of an organisation’s Strengths and Weaknesses, and the Opportunities and Threats
that it faces. A tool used for project appraisal.

Terms of Reference
Terms of Reference define the tasks required of the contractor and indicate project
background and objectives, planned activities, expected inputs and outputs, budget,
timetables and job descriptions.

Workplan
The schedule which sets out the activities and resources necessary to achieve a project’s
results and purpose.

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