project cycle management presen codecs romania private public oct 07

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Project ManagementPublic vs Private

Project Management

Bucharest, 30 October 2007

Alberto Gomez

MBA, Key Expert EU 2007 PHARE ProjectRomania



Project Cycle Management (PCM),

that includes the Logical Framework Matrix

(LFM), is the Methodology used by the European

Commission (EC) to design , execute and evaluate

economic , social and regional Programmes andProjects . It is similar to the one used by all major

Multilateral Institutions (UN,

WB, IDB, etc.)

The World Bank



Overview of EC Project Cycle Management

What is a project?

ISO/PMI: “A series of activities aimed at achieving one or

more specific objectives within a defined time frame andwith a defined budget”

EC: “A project is an instrument which is used to contribute to

the achievement of a larger goal (e.g. a programme), whichwill in its turn supports the implementation of a broader

policy”



The essential PCM principles are:

use of Logical Framework Approach (LFA) to

formulate the project and analyse the problems;

production of good quality key documents ineach phase to ensure structured and well-

informed decision making; consulting and involving key stakeholders as

much as possible.



The main tools supporting ProjectCycle Management:

The Project Fiche - or Terms of reference;

The Project Logframe Matrix- especially to help

assessing what has been achieved against plan;Monitoring reports;Evaluation reports- intermediate and final.



Key documents in the PCM:

Programming

Identification

FormulationImplementation

Evaluation

Programming

Identification

FormulationImplementation

Evaluation

Decisions to take Documents to produce

Country

Strategy Paper Priority areas,

Sectors,

timetable

Which options

to study

further

Pre feasibility

studyProject

Identification

Sheet

Feasibility

study

Financial

Proposal

Decisionon funding

Financing

Agreement

Progress

& Monitoring

Report

Decision whether to

continue as plannedor reorient the project

Evaluation

Report

Decision

on how to use resultsfor planning



Stakeholders Analysis Matrix

Stakeholders and

basic

characteristics

Interests and how

affected by the

problems

Capacity and

motivation to bring

about change

Possible action to

address

stakeholders

interests

Stakeholder 1

Stakeholder 2

Stakeholder ….



Problem Analysis

STEP 1: brainstorm on problems considered to be a

priority by the stakeholders

STEP 2: select individual starter problem

STEP 3: identify related problems to the starter problem

STEP 4: begin to establish a cause-effect relationship

STEP 5: all other problems are sorted in the same way(cause-effect)

STEP 6: problems are connected with cause-effect arrows

showing the links

STEP 7: revise the diagram to find out if some problems

have not been identifiedSTEP 8: the diagram is revised accordingly and

distributed

A different, yet similar, method for Problem analysis is the

“Fishbone diagramme”, or Ishikawa Root-cause analysis



Analysis of objectives

SMEs are able to better

access int. markets

SMEs build Int.

partnerships

SMEs increase int.

exposure

SME develop Export

Prom. Strategies

SMEs acquire

specific skills

SMEs benefit of ad hoc

fundsSMEs access advisory

services



Analysis of strategies/options1. if all the problems have to be faced or only a selection

of them;

2. positive opportunities on which we can build on (fromSWOT);

3. combination of interventions which is likely to better

achieve the results and ensure sustainability;

4. which option is best promoting local ownership;

5. which is the most cost effective option;6. which option best impact on the needs of the

poor/most vulnerable groups



Logical Framework Matrix

ProjectDescription Indicators Sources of

verificationAssumptions

Overall objective: the

project’s contribution

to policy or programme

objectives (impact)

Purpose (often calledspecific objectives) –

direct benefits to the

target groups

Results (often called

outputs) – tangible

products or services

delivered by the project

Activities (sometimes

referred to Inputs) –

which have to be

undertaken to deliver

the desired results

How the Overall

Objective has to be

measured including

Quantity, Quality, and

Time?

How the Purpose hasto be measured

including Quantity,

Quality, and Time?

How the Results have

to be measured

including Quantity,

Quality, and Time?

How will the

information be

collected, when and by

whom?

Same as above

Same as above

What are general

Assumptions?

or major risks?

If the purpose isachieved, what

assumptions must hold

true to achieve the

Overall Objective?

If results are achieved,

what assumptions

must hold true to

achieve the Purpose?

If activities are

completed, what

assumptions must hold

true to deliver the

Results?



I D N o m e a t t i v i t à

22 C . In s t i t u t i o n B u i ld i n g f o r R D P2

22 E s t a b l is h a S t r a t e g y C o m m i t t e e i n e a c h r e g i o n

22 I d e n t i fy a n d m e e t w i th m e m b e r s o f t h e S C

22 D e v e l o p m o d a l it ie s & m e c h a n i s m f o r t h e o p e r a t i o n o f t h e S C

22 S u b m i t S C m e m b e r s h ip t o E C D e l e g a t io n a n d P r o j e c t P a r t n e r s

22 E s t a b l is h W o r k i n g G r o u p s i n e a c h r e g i o n

22 D e f in e t h e m a t ic W o r k i n g G r o u p s

22 I d e n t i fy m e m b e r s o f t h e W o r k i n g G r o u p s

22 D e v e l o p m e c h a n i s m a n d m o d a l it ie s f o r t h e o p e r a t i o n o f th e W G s

22 S u b m i t W G m e m b e r s h ip t o E C D e l e g a t io n a n d P r o je c t B e n e f i c i a r ie s

22 T r a in i n g o n R D P f o r b o t h S C a n d W G m e m b e r s

22 D e s i g n a n d a g r e e t ra i n i n g p r o g r a m m e o n R D P

22 S e l e c t p a r t i c ip a n t s

22 O r g a n i s e & d e l i v e r t r a i n i n g w o r k s h o p s i n R D P

22 E v a l u a t e t h e p e r fo r m a n c e & s u p p l e m e n t a r y t r a i n i n g s a s n e e d e d

22 A s s i s t r e g i o n a l o f fi c i a l s w i t h d r a f t in g R D s t r a t e g i e s

22 A s s i s t t o c a r r y o u t R e g i o n a l S o c i o - E c o n o m i c A n a l y s e s

22 A s s i s t t o s e t p r i o r i t i e s & d r a f t R D s t r a t e g i e s

22 A s s i s t t o f o r m u l a t e a c t i o n p l a n s f o r i m p l e m e n t a t i o n o f R D s t r a t e g i e s

22 F a c i l i t a te a c c e p t a n c e o f R D P s b y t h e C e n t r a l G o v e r n e m e n t

22 D e v e l o p & i m p l e m e n t M a r k e ti n g S t r a t e g y t o i m p l e m e n t R D P

R D A

R D A

/22 22

R D A

R D A

M G L A S O N D G F M A MG L A S O N D GF M A M G L A S O N D G F MA M G L A S O N D G F MA M G L A S O N D GF M A M G L A S O N D G F MA M G L A S O

2222 2222 2222 2222 2222 2222 2222

S T E P :2

L i s t m a i n a c t i v i t ie s

f r o mL o g f r a m e

S T E P :2B r e a k a c t i v i t ie s

I n t o t a s k s

S T E P :2

C l a r i fy s e q u e n c e &

d e p e n d e n c e

S T E P :2

E s t i m a t e s t a rt-up ,

D u r a t io n &

c o m p l e t i o n

S T E P :2

S u m m a r i s e

S c h e d u l in g o f

m a i n a c t i v i t ie s

S T E P :2

D e f in e m i le s t o n e s

S T E P , :22

D e f i n e e x p e r t i se

r e q u i r e d & a l lo c a t e

t a s k s

S T E P :2

C l a r i fy s e q u e n c e &

d e p e n d e n c e

S T E P :2

E s t i m a t e s t a rt-up ,

D u r a t io n &

c o m p l e t i o n

S T E P :2

S u m m a r i s e

S c h e d u l in g o f

m a i n a c t i v i t ie s

S T E P :2

D e f in e m i le s t o n e s

S T E P , :22

D e f i n e e x p e r t i se

r e q u i r e d & a l lo c a t e

t a s k s

Activity Schedule



Resource and cost schedule

ACTIVITIES / INPUTS Unit Quantity per planning period

Cost per

unit

Funding

source Cost codes Cost per planning per iod

Project

Total

Annualrecurrent

costs

2st Q 2nd Q 2rd Q 2thQ Donor Govt 2st Q 2nd Q 2rd Q 2thQ

C . Establish WGs in each region22

Equipment

computers no. 2 2 2222 2222 2222 2222

fax, modem no. 2 222 222 222

furniture lump 2 2222 2222 2222

Salaries & allowances

office staff mm 2 2 2 2 222 222 222 222 222 2222 2222

counterparts mm 2 2 2 2 222 222 222 222 222 2222 2222

ETC

STEP 1:

Copy activities

from Activity Schedule

STEP 2:

Specify INPUTS STEP 3:

Put inputs into cost

categories

STEP 4:

Specify units

STEP 5:

Specify quantity

STEP 6:

Estimate unit cost

STEP 7:

Identify funding

source

STEP 8:

Allocate cost codes

STEP 9:

Schedule costs

STEP 10:

Calculate total

STEP 11:

Estimate recurrent

costs



Focus of the

analysis

Questions to

answer

Information

needed

Planned vs

actual

(efficiency)

Risk &

Assumptions

Design

(relevance)

Project results

(effectiveness)

Sustainability

Impact

Is the project doing what

was originally planned?

Activity schedule

Resource schedule

Logframe matrix

Project Reports

Interviews

Are the assumptions holding

true? Are new risks emerging? Risk matrix

Logframe matrix

Was the project design

relevant? Is it still relevant?

Logframe matrix

Stakeholders Analysis (etc LFA)

What difference is the

project making?

Logframe matrix, Project Reports

Interviews

Are the project purposes likely tobe sustainable?

Will the project impact on the

overall objective?

Logframe matrix

Monitoring



Focus of the

analysis

Questions to

answer

Information

needed

Relevance

Efficiency

Effectiveness

Impact

Sustainability

Is the project design relevant?Logframe matrix

Stakeholders Analysis, Problem

Analysis, Analysis of Objectives,

Analysis of Strategies (if available)

Monitoring Reports

How well the various activities

transformed the available resources

into the intended results?

Logframe matrix

How far the project’s results were used

or their potential benefits were

realised?

Logframe matrix

To what extent the benefits

received by the target

beneficiaries have had a wider

overall effect?

Logframe matrix

Interviews

Are the positive outcomes of the

project at purpose level likely to

continue after the external funding?Interviews

Evaluation



Eco-Fin Analysis

Economic and Financial Analysis

• Economic and Financial Analysis (EcoFin Analysis) is one of the relevant

forms of analysis of a project among others (institutional, environmental,

political, social, gender, etc.). It is not compulsory as is the LogFrame

matrix and used by EuropeAid mostly in developing regions, not so much

transition or mid-level countries or regions.

• Financial Analysis focuses on the point of view of one entity or group of

institutions (beneficiary, target group, etc.). This is done through Cost-

benefit analysis or Cost-effectiveness analysis.

• Economic Analysis on the point of view of society at large... or at leastthe wider environment of the project. This is done through the Effects

Method or the Shadow-pricing method.

• The philosophy of Eco-Fin analysis is to measure the incremental value

of the “with-project” situation and the “without-project” situation.



International Private Project Management

Techniques

• International (public and especially private sector) standards of ProjectManagement are:

• ISO 10,006: 2003- “Quality Management in projects”, 20 pages of text, is a very general standard, only covers quality area, see

www.iso.org .

• PMBOK (Project Management Body of Knowledge or PMBOK) of the Project Management Institute (PMI), 425 pages its 3rd - 2004edition. US-based professional association, 170,000 members

worldwide and 100 chapters, see www.pmi.org. Certifies projectprofessionals as PMPs .

• IPMA , www.ipma.ch , Prince 2 www.prince2.com , Ten Step ,www.tenstep.com ,etc

http://www.iso.org/

http://www.pmi.org/

http://www.ipma.ch/

http://www.prince2.com/

http://www.tenstep.com/

http://www.tenstep.com/

http://www.prince2.com/

http://www.ipma.ch/

http://www.pmi.org/

http://www.iso.org/



Key documents are the Charter, the Scope (similar to

terms of reference) and the Project Plan



Comparison Public vs Private PM

• It is difficult to compare PCM with the International ProjectManagement Standards; such as PMBOK, the I IPMA,ISO 10,006- Project Quality , the British Prince 2, or other private methodologies (Ten Step, etc)

.• The origin, vocabulary, areas of knowledge, tools

,sections ,procedures and other general aspects that arevery different among standards

• Nevertheless , a brief comparison will help us to better understand the Key different Methodological aspects on how to manage Public International Projects vs Privatefunded ones.



Stakeholders analysis in Private PM

• In private PMI standards there is no specific way

to analyze the stakeholders. There is no

template or specific technique recommended ,

although the need to do so is mentioned .

• Neither ISO 10.006 nor Prince2 specifically

mention the stakeholder analysis nor the method

to do so.



Problem Analysis and Objectives in Private PM

• The Problems referred to in the PCM are not on the ProjectManagement , but on the beneficiaries, and other Projectstakeholders, or on the surrounding social ,economicenvironment which the project wants to solve or tackle

• In the International PM Standards these problems have their definition and scope and strategies in their different sections inthe Project cycle of the PMBoK . Scope definition andstrategies, and product definition and analysis , are also treatedin the ISO, IPMA (ICB Level4) and Prince 2 ones.

• But a difference exists with the International Standards ,sincenone establishes a specific tool or methodology to carry out theproblem or objectives analysis of the target group, as the PCMdoes (Logical Framework Approach, LFA)



Monitoring and Evaluation in Private PM

• PMBoK deals with monitoring and evaluation ,but it does notdifferentiate specifically between Monitoring (integrated changecontrol) and Evaluation (a project snapshot by an outsideobserver).

• IPMA covers these two elements in PM General Element- 27

• ISO 10.006 deals marginally about them in sub-clause 8.3, butdoes not differentiate between permanent monitoring and static

evaluation.

• Prince2 covers the issue about project control and processevaluation ,not about the actual results evaluation



Ecofin in private PM

• Economic and Financial Analysis (Eco-Fin): PMBOK

mentions the feasibility study in the chapter : Project phase andProduct life cycle, but not the type of analysis to carry out

• IPMA ICB has the PM Content Element 3 – Programme and Project

Portfolio, but its neither the economic justification , not its techniqueare mentioned

• ISO 10.006 does not deal with the Economic and Financial justification , or economic analysis at all.

• Prince 2 talks about the “Business Case” as a prerequisite to approvethe project, therefore it is part of the process SU 4, as for projectbrief.



Conclusions

• The different objectives of Public and Private PM Projects andProgrammes , determine the emphasis in the “Methodology”.While in International PM ,there are some tools that areobligatory ,in PM Private Methodologies the standards are

more varied and flexible. But certainly they are complementaryand useful.

• Some of the tools and templates used in Private PM

methodologies, are very useful and to a certain extent moredetailed than the tools necessary to manage a Public Project. And that is positive ,since the a Manager has to use those toolsthat in her/his mind are more appropriate to achieve the Projectdeliverables.



Conclusions

• There some areas that in the PCM are not covered in depth: it isthe human resources, quality ,or risk and alternative strategiesduring the actual problem.

• PCM does not go very deep in time management , or criticalpath, network diagram , or project management office ,PMO .Which is necessary in large and complex projects.

• A important aspect of PCM is the fact managers do not deal just

with the quantitative issues , but with people perceptions of varied stakeholders with sometimes, different interests andagendas.



Conclusions

• A Methodological comparison shows that PCM manages the

Project Cycle (design ,plan .execution , monitoring, evaluation,

budgeting and indicators) very well, compared with other Private

methods such as PMBOK, or IPMA-ICB, ISO 10,006,or Prince2 .

•The stakeholders, Contracting institutions, implementing institutionsand beneficiaries issue ,which is more complex in International PM

is also a key difference. Experience in International PM and people

management, is a good help for that.

•The Private PM methodologies deal with some other areas ,such ashuman resources, team management, quality and risk , and complex

and long calendars in more detail. And they have a technical focus

principally.



1. The right people

2. The right skills

3. The right motivation/incentives4. The right business environment

5. The right leadership

Practice makes perfection !!!!

Multumesc !