The document discusses Project Cycle Management (PCM) and its importance for development projects. It outlines the evolution of PCM as an approach to improve development effectiveness. PCM provides a framework to ease communication, ensure efficient funding use, and increase measurability and organizational credibility. The key elements of PCM include phases like identification, formulation, implementation and evaluation. Tools like the logical framework matrix are used to design projects and monitor progress. While PCM provides structure, true success requires commitment from planners, implementers and beneficiaries.

1. Project Cycle
Management
(PCM)
Why for BB2C? Why Now?
Ela Gerthnerova
Source: MDF (2010-2013). RBM: Monitoring and Planning Course. MDF
Pacific-Indonesia, Training and Consultancy.

2. PCM Presentation Outline
 Evolution of the concept
 Why do we need it?
 What is it exactly?
 Phases of PCM
 Format of the documents & example
 Logical Framework Matrix
 Limitations of PCM instruments & procedures
 Further readings

3. Evolution
 Throughout history of development
cooperation (40+ years) - difficulties to be fully
satisfied with the results of the interventions
(projects, programmes)
 Need to learn from the past experience to
better perform in the future – this is the
objective of Project Cycle Management (PCM)
 Addressing the real needs of the beneficiaries
 Analysis of the existing situation →
stakeholders´ participation→ ownership
creation.

4. PCM: Why do we need it?
 An approach to ease communication and
to improve decision-making
 Effective & efficient funds utilization
 Determines our intervention results in both
technical and organizational nature
 Determines the project/programme
performance and impact (measurability)
 Increases organizational credibility in the
eyes of donors

5. What is PCM?
1) LEARNING APPROACH 2} INSTRUMENT 3} ADMINISTRATIVE
ORGANIZATION
 Involves Beneficiaries –
clear problem analysis
on the project plan is
developed
 Create Framework for
Learning – involving
users and all actors
 Adhere to the phases of
the project cycle
 Plan for sustainability in
planning process
 Logical Framework (LF) =
tool for consistent and
complete project design
and management
 Logical Framework is the
precise description of
project objectives, it is
easier to appraise and
improves monitoring
 LF consists of:
Impact/Outcomes/Outp
uts/Activities; Indicators,
Assumptions-Risks and
Pre-conditions
 Gains efficiency and
improves the
communication and co-
ordination
 Transparent and clear
flow of the documents
at each stage of the
PCM
 Procedures and
regulations –
consultations, meeting
structure, frequency
 Quality and motivation
of all experts and desk
officers dealing with the
project analysis

6. Phases of PCM
Indicative
Programming
Identification
(pre-feasibility)
Formulation
(Appraisal)
Appraisal
(Financing)
Implementation
Evaluation

7. I. Indicative Programming
 Includes specific aid thematic focuses in
a country
 Sets out a number of ideas for projects or
programmes
 Includes policy guidelines or strategic
framework of a recipient country
(government)

8. II. Identification/Pre-feasibility
 Concerns the initial formulation of a
project/programme idea in terms of
objectives, results and activities
 Determines whether it is worthwhile to do
a feasibility study
 If yes – drawing Terms of Reference for the
study

9. III. Appraisal/Financing
 Drafting financial proposals
 Examination
 A comparative appraisal by a financing
committee (if there is one)
 Drafting and signing of a financing
agreement

10. IV. Implementation
 Concerns the execution of the
project/programme (usually drawing on the
resources provided by the financing
agreement)
 Aims to achieve desired results and the
purpose of the project/programme
 Various reports are produced: inception
report or plan of operations, annual work
plans and monitoring reports/field visits
reports.

11. V. Evaluation
 The results and impact of the
project/programme are analyzed
 The evaluation part can start during the
implementation phase
 It is used to recommend possibilities for
corrections
 If done after implementation, it formulates
recommendations how to improve
guidance for similar interventions

12. Format of the Documents Used
in PCM
 Standardized format (both writers and
readers)
 Chapters & headings are the same, terms are
clearly defined what aspects are addressed
and fixed
 Based on Logical Framework matrix
 Different donors use similar form of logical
framework
 A donor’s example of the documents
needed (contd.)

13. PCM: EC Format Example
1. Summary 5. Implementation
5.1. Physical and non-physical means
5.2. Organization and implementation
procedures
5.3. Timetable
5.4. Cost-estimate and financing plan
5.5. Special Conditions (Govt. Measures)
2. Background
 2.1. Government/sector policy
 2.2.Features of sector
 2.3.Beneficiaries and parties involved
 2.4.Problems to be addressed
 2.5.Other interventions
 2.6. Documentation available
6. Factors Ensuring Sustainability
6.1. Policy Support
6.2. Appropriate Technology
6.3. Environmental Protection
6.4. Socio-cultural aspects(Gender)
6.5. Institutional and Management
Capacity (public, private)
6.6. Economic and financial analysis
3. Intervention
• 3.1. Overall objectives
• 3.2. Project Purpose
• 3.3. Intermediate Results
• 3.5. Activities
7. Monitoring and Evaluation
7.1. Monitoring indicators
7.2. Reviews/evaluations
4. Assumptions
 4.1. Assumptions at different levels
 4.2. Risks and flexibility
8. Conclusions and Proposals

14. The Logical Framework Matrix
Logic Indicators Sources of
Verification
Assumptions/
Risks
Impact
Outcomes
Outputs
Activities
Pre-
conditions

15. Limitations of PCM instruments
and Procedures
 PCM alone cannot guarantee successful
results of our projects/programmes!
 Valuable for those who prepare and control
the implementation of the projects
 Available information has to be of high
quality
 Planners, implementers and and
beneficiaries have to be genuinely
committed

16. Misunderstandings of PCM
 PCM is not just a formal exercise resulting in a
blue-print for a project/programme
 It is a result of analysis at a certain point in
time
 Necessary to always adapt the plan to the
changing situation!

17. Further Readings
 NORAD (1999). Logical Framework Approach
(LFA). Handbook for Objectives-Oriented
Planning. Fourth edition.
 European Commission (2004). Aid Delivery
methods. Project Cycle Management
Guidelines: Supporting effective
implementation of EC external assistance.
Volume 1.
 EC & ITAD (1999). Project Cycle Management
Training Handbook. Version 1