This document provides guidance on conducting a problem and situation analysis for a public sector project. It outlines steps to 1) define the purpose and scope of the analysis, 2) formulate the key problem, 3) identify the causes and effects using tools like a problem tree, objective tree, and fishbone diagram, 4) develop a conceptual model showing the relationship between interventions, results, and goals, 5) evaluate the project feasibility, and 6) select the project strategy. The overall aim is to thoroughly understand the problem context in order to plan an effective project.

1. Problem and Situation
Analysis
Public Sector Improvement Facility
Project Resources

2. Why conduct a problem/situation analysis?
Define clearly:
Who it is for:
• Project management staff and partners?
• People who will be affected by the initiative?
• Donors?
How the results will be used:
• As a basis for project planning?
• By project managers, staff, partners and stakeholders
affected by the initiative?
• As a funding proposal?
• As a baseline analysis for impact evaluation?
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3. Purpose of the Problem Analysis
• Understand how different problems affect different
stakeholders and their priorities in addressing them
• Analyse the situation in which the agency will be
working
• Identify a suitable area or sector to work in
• Understand the complexities of a problem, its causes
and how it is already being handled
• Analyse the constraints and opportunities for
development work
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4. Formulate the Problem
• Brainstorm suggestions to identify a focal
problem i.e. the central point of the overall
problem
• Record suggestions and present to group e.g. on
butchers paper or post-it notes
• Discuss each suggestion and agree on a single
focal problem to be addressed
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5. Identify Cause & Effect: The Problem Tree
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6. Develop the Problem Tree
1. Identify immediate and direct causes of the
focal problem
2. Identify immediate and direct effects of the
focal problem
3. Construct a problem tree showing the cause
and effect relationships for the problem
4. Review the problem tree and verify that it is
complete and valid.
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7. Case Study Part 1: Samoa Immigration
Problem Tree Analysis
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8. Develop the Objective Tree
1. Reformulate the elements in the problem tree
into positive desirable conditions
2. Review the resulting means-ends relationships
to assure the validity and completeness of the
Objective Tree
3. If necessary:
• Revise statements
• Delete unrealistic or unnecessary objectives
• Add new objectives if required
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9. Case Study Part 2: Samoa Immigration
Objective Tree Analysis
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10. Identify Cause & Effect:
The Fishbone (Ishikawa) Diagram
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11. Constructing the Fishbone Diagram
• Prepare the basic fishbone framework
• List the problem or issue to be addressed
• Label each “leg” of the diagram:
– Manpower, Machines, Methods, Materials
• Alternative labels may include:
– Place, Procedure, People, Policies; or
– Surroundings, Suppliers, Systems, Skills
• Brainstorm the factors affecting the problem in each leg
• Keep asking “Why is this happening” until participants
agree there is sufficient detail
• Analyse the results to find the most likely causes
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12. Case Study Part 3: Samoa Immigration
Fishbone Diagram
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13. Alternative Analysis
1. Identify alternative cause & effect ladders or
diagrams, as possible alternative options or
activity components
2. Eliminate objectives that are obviously not
desirable or achievable (the “sore thumb”)
3. Eliminate objectives being pursued by other
projects or agencies
4. Discuss the implications for affected groups
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14. Develop a Conceptual Model
A conceptual model explains how:
• The project will achieve the desired results in
theory
• The strategy will make the desired change
• Clarify the relationship between the strategy,
the expected results and the goal (or outcome)
of the project
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15. Example of a Conceptual Model
Strategies / Intermediate Goal /
Interventions Results Outcome
For example:
Increased Change in Change in
Knowledge Attitudes practices
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16. Developing the Conceptual Model
Step 1 Identify the goal (or outcome) of the
project:
• What are the specific problems affecting the
stakeholder population or client group?
• Which of these problems can we change?
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17. Developing the Conceptual Model
Step 2 Identify the intermediate results of the
project:
• What changes must occur in the human
resources, equipment, work methods or
materials (see the 4Ms in the Fishbone Diagram)
to reduce the problem?
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18. Developing the Conceptual Model
Step 3 Identify the interventions of the
project:
• What activities can be undertaken that will
achieve the changes identified in Step 2?
• Why will these activities accomplish these
changes?
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19. Evaluating the project feasibility
A Project can be evaluated on:
• Technical feasibility- appropriateness, use of
resources, market suitability, etc.
• Financial (cost/benefit) feasibility- set-up/
recurrent costs, financial sustainability;
• Social implications- distribution of benefits,
gender issues, socio-cultural constraints, local
involvement;
• Environmental issues- impact, environmental
costs vs. benefits.
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20. Selecting the Project Strategy
1. Make an assessment of the project against the
PSIF Eligibility Criteria
2. Select one of the alternatives as the preferred
strategy
3. Prepare the Project Identification Brief (PIB)
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