Programming and Project

Formulation Wokshop

Manila

Sep 30-Oct 4, 2002

International Training Centre

Day Two:

Methods and Tools

for Project Formulation

International Training Centre

Methods and Tools for Project

Formulation

Problem Tree Analysis

Stakeholder Analysis

Logical Framework Analysis

Goal-Oriented Project Planning

(ZOPP)

Methods

and Tools

1. The Problem Tree

Purpose: to identify major problems and

their main causal

relationships.

Output: a graphical arrangement of

problems differentiated

according to ‘causes’ and

‘effects

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and Tools

Core Problem Approach

1. Identify a “core” or central problem

2. List all the problems related to or stemming from the core problem

3. Determine which related problems are causes and which are effects of the core problem

4. Arrange the problems in a cause-effect heirarchy around the core problem

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Problem Tree ExampleMethods

and Tools

From Problems to Objectives

The Problem Tree provides the basis for:

a) the identification of specific project

objectives (by converting problems or

constraints into specific objectives)

b) the definition of project activities and

outputs (by substituting cause-effect

relationships with means-end relationships)

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Problem Tree Analysis

Relies on:

• Group-based inter-action eg. Workshop

format

• Participation of key stakeholders

• Process facilitation

• Achieving consensus on problems,

causes and effects

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2. Stakeholder Analysis

Purpose:

to identify those groups who, directly or indirectly, will affect or be affected by a project.

To determine, through consultation, the issues, concerns and information needs of different stakeholders

To estimate the probable impact which various stakeholders will have on the project

To identify measures to enhance stakeholder support for the sustainable development objectives of the project.

Methods

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What is a Stakeholder?

• Any group within or outside a

project that has a stake in the

project’s activities and/or

outcomes.

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Categories of Project Stakeholders

Government

Local Authorities

Vulnerable groups

Employers

Workers

NGOs

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Importance of Stakeholder Analysis

Stakeholder Analysis promotes the three necessary conditions for the effective implementation of a project.

1. Awareness/Comittment: that stakeholders understand and believe in the objectives and implementation strategy of the project.

2. Capability: that stakeholders believe they can cope with and benefit from the changes which the project is intended to bring

3. Inclusion: that stakeholders feel they are valued, consulted and part of the change process which the project represents

Methods

and Tools

Conducting a Stakeholder Analysis

Step 1: Identify and Categorize Project

Stakeholders:

Identify project stakeholders (including

local institutions, community interest

groups, suppliers etc.) and then divide

them amongst the categories mentioned

earlier.

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Step 2

Create a Probable Character Profilefor each Stakeholder by seeking answers to questions like:

What is the importance of the stakeholders for the project?

What does the stakeholder demand of the project?

What are the expected goals of the stakeholders?

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Step 3

Identify the Strengths, Weaknesses,

Opportunities and Threats of the

Stakeholders to the Project (SWOT)

What are the strengths and weaknesses

of the stakeholders?

As a consequence, what are the

opportunities and threats of the external

environment?

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and Tools

Step 4

Identify the main individuals/groups of

Stakeholders who need special attention

and propose specific measures in a

summary table:

Stakeholder

Stakeholder

Interest(s) in the

Project

Assessment of

Impact

Potential Strategies for

Obtaining Support or

Reducing Obstacles

Methods

and Tools

Alternative Stakeholder

Analysis Technique

a) (Draw up a Chart on a whiteboard or flipchart)

Att=attitude Inf=influence E=estimate C=confidence

Methods

and Tools

Draw up a chart

b) List stakeholders

Identify and list the stakeholders

(individuals, or stakeholder groups, or

both)

Transfer them to the left hand column of

the chart in order of (perceived)

importance

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c) Estimate Attitude and

Confidence

Column 2: Record your best estimate of

the stakeholder's attitude, from fully

supportive to fully opposed. eg. from +5

to –5

Column 3: Record your level of

confidence in this estimate eg. From 1

(fully confident) to 5 (wild guess)

Methods

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d) Estimate Influence and

Confidence

Repeat (3) for Stakeholder’s perceived

influence on the project

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e) Plan Strategies

Plan your strategies for approaching and

involving each person or group.

The estimates in columns 2 to 5 help you to

do this.

Your strategy is written in column 6. It

usually takes the form of obtaining more

information, or of involving the stakeholder

in the planning of project activities

Methods

and Tools

3. Logical Framework Analysis

Q: What is Logical Framework Analysis?

A: An analytical tool to assist project specialists and stakeholders in conceptualising:

the objectives of a project;

the means whereby these objectives will be achieved

how progress towards achieving objectives will be measured and,

the underlying assumptions and risks which will be faced

Methods

and Tools

The LogFrame Matrix

• The Logical Framework Approach uses a matrix

or LogFrame to present information about project

objectives, outputs and activities in a concise,

logical and systematic way.

• The basic Log Frame matrix contains 16 cells

organized into 4 columns and 4 rows, as

indicated in the next slide:

Methods

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The LogFrame Matrix

Objectives

(Narrative Summary) Verifiable Indicators Means of Verification Important Assumptions

Goal:

(Development Objective)

Purpose:

(Immediate Objectives)

Outputs:

Activities:

.

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Objectives

(Narrative Summary) Verifiable Indicators Means of Verification Important Assumptions

Goal:

(Development

Objective)

What are the quantitative

ways of measuring, or

qualitative ways of judging,

whether these broad

objectives are being

achieved? (estimated time)

What sources of information

exists, or can be provided

cost-effectively?

What external factors are

necessary for sustaining

objectives in the long run?

Purpose:

(Immediate Objectives)

What are the quantitative

measures or qualitative

evidence by which

achievement and distribution

of impacts and benefits can be

judged (estimated time)

What sources of information

exists or can be provided

cost-effectively? Does

provision for collection need

to be made under inputs-

outputs?

(Purpose to Goal):

What conditions external to the

project are necessary if

achievements of the project’s

purpose is to contribute to

reaching the project goal?

Outputs:

Indicate each of the

outputs that are to be

produced by the project

in order to achieve

project purpose

What kind and quantity of

outputs, and by when will

they be produced? (quantity,

quality, time)

What sources of

information?

(Output of Purpose):

What are the factors not within

the control of the project

which, if not present, are liable

to restrict progress from

outputs to achievements of

project purpose?

Activities:

Indicate each of the

activities that must be

undertaken in order to

accomplish the outputs.

VI’s should be included

against all activities. This is

essential for projects

reporting and monitoring

against the Logical

Framework.

What are sources of

information?

(Activity to Output):

1) What external factors must

be realised to obtain planned

outputs on schedule?

2) What kind of decisions or

actions outside the control of

the project are necessary for

inception of the project?

Contents of the LogFrame Matrix

The LFA Process

Logical framework analysis is an iteritive process which seeks to promote clear conceptual thinking on what a project intends to do and how it intends to do it.

It is “logical” in the internal relationship between project objectives, outputs, activities (and inputs)

It is based on a consultative process between project authorities, beneficiaries and stakeholders

Methods

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Steps in Constructing a LogFrame

Step 1: Define the Overall Goal to which your project contributes ie. Development Objective

Step 2: Define the Purpose(s) to be achieved by the project (Immediate objectives)

Step 3: Define the Outputs for achieving this Purpose

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Step 4: Define the Activities for achieving each Output

Step 5: Define the Assumptions under which success in achieving the objective of one level will contribute to achieving objectives at the next level

Step 6: Define the Objectively Verifiable Indicators (OVI) at Goal, Purpose, Output and Activity levels.

Step 7: Define the Means of Verification (MOV) ie. the source(s) of information for each indicator

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Why Use Logical Framework Analysis?

Because it demands clear thinking at the

conceptual stage of project formulation

Because it brings together in one place a

statement of all the key components of a

project

Because it presents them in a systematic,

concise and coherent way

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Because it separates out the various levels in the hierarchy of objectives, outputs and activities helping to ensure that they are not confused with each other

Because it identifies the main factors related to the success of the project

Because it provides a basis for monitoring and evaluation project success

… and because 9 out of 10 donors prefer it!

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Limitations of the LFA

It is not a substitute for other technical, economic, social and environmental analyses. It cannot replace the use of professionally qualified and experienced staff.

Rigidity in project management may arise when objectives and external factors specified during design are over emphasised.

Methods and

Tools

It requires a team process with good

leadership and facilitation skills to be

effective.

The whole culture of the Logical

Framework can be alien in some

societies.

Tips When Filling in a LogFrame

start at the top and work down the first column (what do you want to do?)

then think horizontally: how can I measure the progress of what I want to do and what sources of info do I need?)

then reflect back up (under what assumptions will success at one level contribute to (or detract from) success at the next level?

Methods

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4. Goal Oriented Project

Planning: ZOPP

Zopp is a systematic structure for identification, planning, and management of projects

Applied through iterative workshops with project authorities, beneficiaries and stakeholders

Utilizes problem analysis and stakeholder analysis to create a project planning matrix or logical project framework

Methods

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Stages in the ZOPP Process

Pre-ZOPP: in-house exercise by agencies in preparation for a project.

Appraisal ZOPP: in-house appraisal for preparing Project TORs

Partner ZOPP: in-country; presentation and discussion of previous phase conclusions and recommendations with staff of project country

Take-off ZOPP: in-country; preparation of the plan of operations with personnel responsible for project execution and counterpart authorities.

Re-planning ZOPP: prepared in-country; adjustments during project implementation.

Methods

and Tools

Zopp Workshops

last from 1 day to 2 weeks (avg. 1 week)

participants selected to represent all

interest groups

basic premise: main interest groups must

be represented from all levels

exercise requires a facilitator with a high

degree of experience and skill

Methods

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WS Content and Methodology

Based on a series of analysis and

planning exercises comprising:i) Analysis

Participant analysis: (interests, motives, attitudes

and implications for project)

Problem analysis: major problems grouped into a

problem-tree with cause and effect and identification

of the core problem

Objectives analysis: a restatement of the problems

into realistically achievable goals;

Alternatives analysis: assessment of alternative

objectives according to resources, feasibility, cost-

benefit ratio, social risks, sustainability and other

factors as decided by group. Prepared on charts.

Methods

and Tools

ZOPP’s Project Planning Matrix (PPM)

The PPM is a Logframe Matrix. It is central to ZOPP-based

project work because the process of building it relies on

repeated, collaborative stakeholder input. The PPM It is a

one-page summary of:

why the project is carried out,

what the project is expected to achieve,

how the project is going to achieve these results,

factors crucial for the success of the project,

how can success be measured,

where data is needed to assess project success,

what the project will cost.

Methods

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ZOPP’s Iterative Workshops

• ZOPP is not a oneshot exercise;

• Each plannng phase has a specific goal

• Each goal is the subject of a workshop

• Each workshop comprised of different stakeholders

• Participants analyse key issues throughout the project cycle.

• No set formula for successful workshop.

• All need to create common language and understand one another divergent views

ZOPP’s Iterative ProcessMethods

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Conclusion

Collaboration is not "automatically" part of

the ZOPP process. The project team,

borrower/donor, and stakeholders must

commit to adopting a participatory stance

for the overall project; otherwise, the

ZOPP process is merely an organizing

tool.

ConclusionMethods

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