Project Cycle Management
May 26, 2012
European Commission, Project Cycle
Table of Contents
II. Analysis Stage
- Stakeholder Analysis
- Problem Analysis
- Objective Analysis
- Strategy Analysis /Project Selection/
III. Planning stage
- Formation of Project Design Matrix /PDM/
- PDM Appraisal
- Plan of Operation
IV. Summary 2
• The word Participatory refers to the way in which
implementing agencies and beneficiaries /Stakeholders/ in
recipient countries are the main actors and should
participate in project analyzing and planning process by
sharing ideas of projects, human resources and materials
with each other.
• Participatory Planning method has two stages, analysis
and planning, which are carried out during the
identification and preparation phases of the project cycle.
• During Analysis stage the existing situation is analyzed
to develop a vision of the future desired situation and to
select the strategies.
• In the Planning stage the results of the analysis are
transcribed into a practical, operational plan ready to be
Main steps in Participatory Planning (PP)
Stakeholder Analysis: identify issues, problems and current
conditions of the target area by analyzing local residents, as
well as the people in related groups, organizations and
Stakeholder Analysis procedures:
1. Confirm the expected project framework,
2. List on the cards all stakeholders that are to be involved,
3. Sort the cards by category,
4. Select important stakeholders,
5. Analyze the selected stakeholder in detail,
6. Select a target group tentatively.
Problem Analysis: virtually represents the causes and
effects of existing problems in the project area, in the form of
a problem tree and clarifies the relationships among the
It involves three steps:
1. Precise definition of the framework and subject of
2. Identification of the major problems faced by target
groups and beneficiaries;
3. Visualization of the problem in the form of a problem
tree to establish cause-effect relationship.
Objective Analysis: to develop an objective tree by
clarifying the means-ends relationship between the desired
situations for solving problems.
Steps to establish an objective tree:
1. Reformulate all negative situation of the problem analysis
into positive situations that are desirable and realistically
2. Check the means-ends relationships thus derived to
ensure validity and completeness of the hierarchy;
3. If necessary revise statements, add new objectives if these
seems to be relevant and delete objectives which do not
seem suitable or necessary.
Strategy Analysis: is a process in which specific strategies
are selected from among the objectives and means raised in
objective analysis, based on selection criteria.
Strategy analysis involves deciding:
- what objectives will be included IN the project
- what objectives will remain OUT of the project
Steps to select Project:
1. Identify objectives you do not want to pursue;
2. Group objectives, to obtain possible strategies;
3. Access which strategy represents an optimal strategy
according to the agreed criteria;
4. Determine overall objective and project purpose. 11
Main steps in Participatory Planning (PP)
Formation of Project Design Matrix: The PDM is formed
through elaborating the major project components and plans
based on the approach selected in the previous step.
Activities Inputs Pre-conditions
• The horizontal logic relates to the measurement of the effects
and resources used by the project through the specification of
key indicators, and the sources where they will be verifies.
• Objectively Verifiable Indicators (OVI): Usually expressed
in numbers, these are objective indicators that can assess the
level of achievement of each item in the project summary.
• Means of Verification: This refers to sources of OVI. They can
be either external sources or ones that can be studied internally.
• Important Assumptions: Predictable risks during project
• Preconditions: Conditions to confirm prior to project
execution and should be fulfilled before the project begins.
• Inputs: This refers to all resources invested in a project,
including human and material resources and funds. 16
• The vertical logic identifies what the project indents to do,
clarifies the causal relationship and specifies the important
• Four levels of Objectives:
• Overall Goal: Indicates the long-term objective or goal of
development and refers to how the project can contribute
toward achieving it.
• Project Purpose: This is translated as mid-term goal or
direct purpose, and it refers to an effect a project can achieve
by yielding all outputs as planned.
• Outputs: This refers to a short-term objective, the result of
project execution, or all planned products of a project.
• Activities: This refers to all actions that have to be taken to
produce an output. 17
PDM Appraisal is conducted by an aid agency to
ensure the project plan.
It is composed of the following stage;
1. Examination of details of the PDM elements;
2. Review of the PDM formation process;
3. Examination from the perspective of the five
• Plan of Operations (POP): is prepared by the project
implementers, based on the PDM and other
• It is an effective tool for project implementation and
management, and provides important data for
monitoring and evaluation of the project.
• Activity Scheduling: determining the sequence and
dependency of activities; estimating their duration, and
• Resource Scheduling: from the activity schedule,
developing input schedules and a budget.
• European Commission, Project Cycle
Management Handbook, pages 33-60,
• KOICA, Development Cooperation Evaluation
Guide, Annexes: PDM and Logical Framework
Approach, Pages 83-89,
• Foundation for Advanced Studies on
International Development (FASID), PCM
Management Tool for Development Assistance,
Participatory Planning, An example: Safer
Driving Project in County A.