Project Management

(PMG 09418)

Pumulo Sooli (PhD)

Eastern and Southern African
Management Institute
Course Rationale

 Course designed to enable students

implementation of projects and programmes,
 Acquire comprehensive and practical
knowledge in planning, executing, monitoring
and evaluating development interventions.
 Learning objectives/Outcomes

 Knowledge and understanding

 Demonstrate knowledge and understanding
of the central project management concepts
in public sector management
 Demonstrate an ability to describe and
compare various public sector development
projects.
Learning objectives/Outcomes
 Skills and abilities
 Analyze and generate service delivery
performance targets
 Analyze Service Delivery Charters and
performance targets
Learning objectives/Outcomes

 Judgement and approach

 Monitor and evaluate public sector projects

 Able to identify appropriate development

projects
Course content

 PROJECT MANAGEMENT OVERVIEW

 Project management concepts
 Project management cycle
 Rationale for public sector projects and
programmes
 Project concept paper
 Project teams and project leadership
Course content
 PROJECT IDENTIFICATION AND DESIGN
 Identification techniques for public sector
projects
 Logical framework approach in public projects
 Designing tasks and activities (activity
scheduling)
 Designing public sector performance
indicators
Course content
 PROJECT IMPLEMENTATION AND
MONITORING
 Procurement of consultants, facilities and
equipment
 Stakeholder management techniques for public
sector projects
 Project monitoring techniques
 Best practices for public sector project integration.
 Risk management
 Best practices in risk management
Course content
 EVALUATION AND HANDOVER
 Designing evaluation Terms of References for
Service Delivery Projects
 Evaluation techniques for public sector
projects
 Completion reports

Assessment

 Continuous assessment
 Test (10%)
 Project paper (30%)

 Final examination (60%)

Recommended books

 David, W.K. (2009) Public Sector Project

Management, Meeting challenges and
achieving result, Wiley and Sons Inc.
 Ireland, L. & Cleland, D. (2006), Project
Management: Strategic Design and
Implementation, 5th Edition, McGraw – Hill
Professional
 Orcher, L. (2007), Conducting a Survey:
Techniques for a Term Project, Pyrczak
Publishing
Recommended books
 Fink, A. (2008), How to Conduct Surveys: A
Step-by-Step Guide, 4th Edition, Sage
Publications
 Sue, V. & Ritter, L. (2007), Conducting Online
Surveys, Sage Publications
Introduction to project
management
Introduction to project management

 Rapidly changing environment and

developmental demands have made
organisations adopt an approach of
management by projects,

 Focus:- successful management and

completion of projects.

 Link between projects and development

Introduction to project management

 Lead to flexible structure capable of

responding to market demands.

 Organisation focuses on result attainment.

 Relies more on the efficient utilisation of

resources to attain maximum benefits.
Benefits of approach

• Ensuring that the objectives of all activities are

clearly defined and aligned to corporate
objectives
• More effective use of resources

• Providing a framework for monitoring and

control and making control visible to senior
management
Benefits of approach

 Facilitating adjustment of plans to changing

scenarios
• Permitting easy monitoring of progress
towards goals
• Accelerating implementation of corporate
strategies
• Providing effective techniques for meeting
annual targets
Key characteristics of approach

• Work organised into projects

•
Delivered by project teams

• Focus on results

• Flexibility to deal with change

 Benefits of project management

 Developed to save time by properly planning

a project and considering all relevant factors
which may affect its outcome

 The benefits have been proven - it saves

time and money - and generates a more
successful outcome …. if guidelines are
followed
 How does project management benefit you?

 Goal clarity and measurement

 Resources will be coordinated
 Risks will be identified and managed
 Possibilities of time savings
 Possibilities of cost savings
 Possibilities of achieving the agreed outcome
 Possibilities to deliver projects successfully
Improved quality
 Decision-making routes and processes are clearly
defined
 Deadlines, costs and resources are controlled
systematically
 What project management helps you to
achieve

 Plan tasks in project

 Avoid dependencies problems
 Reduce risks
 Track progress accurately
 Organize project process and timeline
 Improve stakeholder - staff communication
 Improve management of stakeholders’
expectations
 Complete within budget and on time
 Project success factors
 Stakeholder involvement
 Executive management support
 Clear statement of requirements
 Proper planning
 Realistic expectations
 Smaller project milestones
 Competent staff
 Ownership
 Clear vision and objectives
 Hard working and focused staff
Managing the scope of the project

 Project scope management constitutes 'the

processes to ensure that the project includes
all of the work required, and only the work
required, to complete the project successfully
Managing the scope of the project

‘
 Project scope has several purposes:

 It defines what work is needed to complete the

project objectives
 It determines what is included in the project
 It serves as a guide to determine what work is
not needed to complete the project objectives
 It serves as a point of reference for what is not
included in the project
Project manager attributes
 Leader & manager  Knowledgeable about
 Facilitator, coordinator the organization
 Communicator  Political sensitivity
 Credibility: Technical/  Conflict: sense,
Administrative confront, resolve
 Work under pressure  Can deal with stress,
 Goal-oriented chaos, ambiguity
  Planning and follow-
Innovator
 through
Versatilist
 Ethical dilemmas
Project manager duties
 Reports to senior management
 Communicates with users
 Plans and schedules
 Obtains and allocates resources
 Controls risks
 Manages people
 Coordinates
 Implements quality assurance
 Controls the budget
 Delivers results
 Project teams

 Diversity of knowledge needed

 Cross-functional
 Self-directed
 Often ad-hoc or temporary
 Often distributed (geographically)
 Start and end dates
Project personnel skills

 Technical
 Political
 Problem-oriented
 (vs. discipline-oriented)
 Goal-oriented
 Flexibility, adaptability
 High self-esteem
Governmental projects

 Legal constraints on government projects

 Laws, statutes, ordinances, directives,
regulations, budgets, and policies
 Accountability to the public
 Accountable to legislative & judicial bodies,
interest groups, the press and the public
 Utilization of public resources
 Objective is not higher ROI, but public good
Project governance
 Risk planning
 Balancing risk avoidance and risk acceptance
 Life cycle management
 From concept to replacement
 Strategic change
 Balancing the solution and the ability to utilize
 Value management
 Adopting consistent processes, building in
quality and adding value
Project Concepts

 Programme: A set of inter-related

projects, grouped under different components
which are oriented towards the attainment of
specific objectives.

 Project: A planned undertaking of inter-

related activities designed to achieve specific
objectives from predetermined outputs using
resources within a specified time frame
Project Concepts


 Project Activities: The complex array and
sequence of technical tasks, hopefully, yield
the expected project outputs.

 Project Plan: Calculated sequence of

decisions and action which are designed to
ensure that the technical, time and cost
performance expectations are met.
Project Concepts

 Stakeholders: Parties who are involved

either directly or indirectly and those who will
be affected either positively or negatively in a
project/programme.
Project elements
Goal

Developme
nt
Objective

Outcome

Output

Activities

Inputs
Project Concepts

 Objectives/outputs/activities/inputs
 Project outcomes
 Target group
 Beneficiaries
 Stakeholders
 Project management cycle

L.P. SOOLI
Eastern and Southern African
management Institute

12/01/2024 L.P. Sooli, Project Formulation 37

Learning objectives

 Participants should understand the following:

 Describe the project management cycle

 Use of the project cycle in managing public

sector projects

 Limitations of the cycle

Project Cycle
 The project cycle is a theoretical concept.

 Project may or may not follow the sequence

of steps from formulation to evaluation of a
development project.

 Meant to guide in all stages of the project.

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Project Cycle

 Steps are however a safe-guard.

 It is easier to identify problem areas or those
that require more attention if the cycle is
followed.

12/01/2024 L.P. Sooli, Project Formulation 40

Project management cycle

Identification

Evaluation Preparation

Implementation Appraisal

Approval

12/01/2024 L.P. Sooli, Project Formulation 41

STEP 1: IDENTIFICATION

 Identify projects in line with development

objectives
 Have systematic way to screen projects

 The shortage of an item does not mean a

project to produce that item should be
formulated.

12/01/2024 L.P. Sooli, Project Formulation 42

STEP 1: IDENTIFICATION

 Normally, extensive
studies are required.  Problem tree
 The problem to be analysis is a tool
addressed has to be commonly used in
properly stated. the identification
problem areas.

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Identification
 There is no time period involved in
identification.
 Its possible to have the same project but with
different justifications.
 Elements of a problem can be used to
establish the cause and effect relationship.
 Eg malnutrition will lead to something else.

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Identification

 Projects can be identified from sector studies,

donor reports, visits, national development
plans, news items, etc.
 Other sources:- macro analysis of needs,
resources, technology, etc

12/01/2024 L.P. Sooli, Project Formulation 45

Identification

Core issue?

Coughs
Rash

Fever
Sore eyes
Swollen feet

12/01/2024 L.P. Sooli, Project Formulation 46

STEP 2:PREPARATION

 Feasibility studies are prepared under this

item.
 Involved project design
 The World Bank has a project preparation
facility.

12/01/2024 L.P. Sooli, Project Formulation 47

PREPARATION

 Member countries can access this facility by

requesting the Bank to undertake the studies
 Details in the study depend on the nature and
type of project.

12/01/2024 L.P. Sooli, Project Formulation 48

 Preparation

 All aspects of the

project are studied
 Feasibility is the
process of determining
if the project can be
implemented.
 Unsuitable projects are
discontinued.

12/01/2024 L.P. Sooli, Project Formulation 49

Preparation
 The design must be detailed enough to
enable cost estimates and decisions on other
project aspects.
 Some projects may require pilots for
feasibility.
 How does mother-to-child transmission affect
family circles.

12/01/2024 L.P. Sooli, Project Formulation 50

Preparation

 Feasibility studies
should be
approached
systematically and
deliberately:-
 Time spent on the
feasibility of a project
is usually time well
spent.

12/01/2024 L.P. Sooli, Project Formulation 51

Preparation

 Findings of the  Preliminary design

feasibility will be determine the base
useful during other for future decisions.
phases of the  Eg. concentrate on
project. prevention, treatment
or care and support
for HIV/AIDS
patients?

12/01/2024 L.P. Sooli, Project Formulation 52

 Structure of project:

 The structure and

format for writing
projects will differ
from donor to
donor.

12/01/2024 L.P. Sooli, Project Formulation 53

STEP 3:APPRAISAL

 Appraisal is the evaluation of the overall

ability of the project to succeed.

 Most widely misused term in projects

management.
.

12/01/2024 L.P. Sooli, Project Formulation 54

APPRAISAL

 Appraisal is usually undertaken by the

sponsoring or financing organisation.
 Some sponsors have rigid imposed
procedures to be followed

12/01/2024 L.P. Sooli, Project Formulation 55

Appraisal

 Appraisal process may require a comparative

study to determine the merits of one project
over the other.
 Should HIV/AIDS project tackle children,
mothers or even men?

12/01/2024 L.P. Sooli, Project Formulation 56

Appraisal

 Like in the feasibility study, numerous

components of the project can be dealt with:
 Market
 Technical
 economic

12/01/2024 L.P. Sooli, Project Formulation 57

Appraisal

 Financial
 Social
 Administrative/managerial
 Environmental

12/01/2024 L.P. Sooli, Project Formulation 58

Appraisal

Financial

Economic

Social

Project financing

12/01/2024 L.P. Sooli, Project Formulation 59

Appraisal

 Cultural factors that affect the project may also

be included.
 A good appraisal report will culminate in the
birth of a project.

12/01/2024 L.P. Sooli, Project Formulation 60

STEP 4: NEGOTIATION AND APPROVAL

 Project will have to be approved for funding

 Grant/loan conditions will have to be

negotiated for.

12/01/2024 L.P. Sooli, Project Formulation 61

NEGOTIATION AND APPROVAL

 Other issues include project scope, cost,

repayment period, interest rates, staff, etc.
 Both parties have to agree/disagree.
 The hospitals and the sponsoring
organisations will have to agree on the
modality of implementation.

12/01/2024 L.P. Sooli, Project Formulation 62

STEP 5: 1IMPLEMENTATION

 Project will have to be implemented according

to agreed schedules.
 These will include the cost, time schedule,
activity scheduling, expected outputs, staff
recruited, etc.

12/01/2024 L.P. Sooli, Project Formulation 63

Implementation

 Problems ignored or not addressed in design

stage will normally show during project
implementation.
 Monitoring is important at this stage.

12/01/2024 L.P. Sooli, Project Formulation 64

Implementation

 Establish work
programmes,
financial Marketing

programmes.
 Procurement of Human
Resource
project items eg s

ARVs, condoms. Management

 Supervision and
control
12/01/2024 L.P. Sooli, Project Formulation 65
STEP 6: EVALUATION

 Evaluation is the assessment to determine

whether or not project objectives, outputs,
goals, etc have have attained.
 To what extent have we been able to control
or manage the disease?

12/01/2024 L.P. Sooli, Project Formulation 66

EVALUATION
 It also assesses to what extent the project
has been able to operate within the budgeted
resources.
 Issues of efficiency, effectiveness,
sustainability, relevance and impact of the
project is assessed

12/01/2024 L.P. Sooli, Project Formulation 67

Evaluation

 The types of
evaluation may
include:-
 continuous or mid
term evaluation
 Terminal evaluation
 Impact evaluation

12/01/2024 L.P. Sooli, Project Formulation 68

Evaluation

 Evaluations could
be:-
 Self evaluations
 Independent
evaluations
 Joint evaluations

12/01/2024 L.P. Sooli, Project Formulation 69

Project Concept paper

(Concept Document)
Project Concept Document
 Project Concept Document, is a document
represented before the complete project
proposal.

 Concept papers should not be longer than

five pages.

 Describes the main idea and objectives of a

project.

 Purpose: capture the interest of the funding

agency, and to demonstrate that the idea they
are proposing is worthy of further
Project Concept Document
 Introduction (Problem Statement)
 Need to persuade sponsor that project
worth funding!

 Opening paragraph must capture the

community needs you have identified while
also stimulating the reader to continue
reading your document.

 Explain problem that exists and how by

applying this project, this problem will be
efficiently solved.
Project Concept Document
 Introduction (Problem Statement)
 Briefly provide supporting documentation for the
importance of addressing the problem in concern.

 In short, indicate why anyone should care to fund

or to buy such a project.

 Make sure to cite or refer to what others have

accomplished relative to your project or research.
Project Concept Document
 Project Description
 Goals and Objectives/Research Questions

 A goal is statement describing a broad or

abstract intent, state or condition.

 An objective is a statement of measurable

outcomes that relate to the goal. An objective
include “who, what, and when” information.
Project Concept Document

 Methodology and Timeline

 Give overview of methodology, how project

will be carried out, and any innovative

approaches, techniques, or processes that
will be used.

 Include general timelines for what you hope

to accomplish
Project Concept Document
 Cont. Project Description
 Benefits/Anticipated Output

 Describe the anticipated benefits/output and

who will benefit.

 Be specific on the list of beneficiaries

Project Concept Document
 Support Needed & Costs (if requested)
 Only include budgetary information if it is
specifically requested.

 Finally, appearance is important.

- The type size should be large enough to read easily (usually 12 pts
and 14 for headers)
 Margins should be standard size (left margin 3.5 cm, other margins
2.5cm)
 Check the spelling errors before submission.
 Attention to details is important.
 Number all pages.
 Place your name and the date in the header
 Include your contact information at the end of the document

 Include contact information

 PROJECT PLANNING
USING THE
LOGICAL FRAMEWORK APPROACH

Formulation and Designing of public sector projects

12/01/2024 Logframe 78
Learning objectives

 Participants should be able to;

 Understand the rationale for clearly defined
project elements
 Define the logical relationship between project
elements
 Justify the project execution
LOGFRAME
 LFA is an analytical, presentational and
management tool used for the following:
 Analyse the existing situation during project
preparation
 Establish logical hierarchy to attain objectives
 Identify potential risks
 Present summary of project in a standard
format.

12/01/2024 Logframe 80
LOGFRAME
 First formally adopted as a planning tool for
overseas development activities by USAID early
1970.
 LFA has since been adapted as a planning and
management tool by
 British DFID
 CIDA
 SIDA
 ISNAR (International Services for National
Agricultural Research
 GTZ
12/01/2024 Logframe 81
LOGFRAME
 Approach involves
 Situation analysis
 Stakeholder analysis
 Problem analysis
 Hierarchy of objectives
 Alternative analysis
 Selecting preferred implementation strategy

 Matrix summarising what project intends to

do and how, key assumptions and how
project will be monitored
12/01/2024 Logframe 82
 Idea
Situation
Analysis of Stakeholders
Project area Analysis of
Project
idea

Project
Proposal
Objective Problem
Alternative analysis Analysis
analysis

12/01/2024 Logframe 83
SITUATION
ANALYSIS
Question:
 What do we mean by situation analysis?

 What do you need to analyse?

 Why is situation analysis important?

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Situation Analysis
 Starting point for project design
 Definition:
• Status, condition, trends and key issues
affecting people and people’s
livelihoods, ecosystems or institutions in
a given geographic context at any level
(local, national, regional, international)

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Importance of situation analysis

 A situation analysis is essential:

• To clearly identify the needs and

concerns of beneficiaries and their
livelihoods

• Ensures project design is appropriate to

the situation

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Importance of situation analysis

• Assesses the likely consequences of a

project within its wider context

• Assesses situational factors that will

influence project implementation and
effectiveness

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 Situation Analysis:
 Defining the boundaries of the
situation (scope)
 Undertaking a detailed situation
analysis:
• Stakeholders
• Problems and issues
• Visions and opportunities
• Biological/physical environment

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Situation Analysis:

• Organisations
• Infrastructure
• Legal, policy and political institutions
• Economic conditions and markets
• Social and cultural

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Situation Analysis – Questions (1)
 Defining the boundaries (scope and
focus) of the situation:

• What is the geographic, demographic,

sectoral scope?

• What are the primary issues or problems

with which the project is directly
concerned (nature of the problem)?

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Situation Analysis – Questions (1)

• What are secondary issues or problems

the project will deal with in order to
improve the primary issues or problems?

 Stakeholders:
• Who are all the stakeholders and how
are they involved in the situation?

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 Situation Analysis – Question (2)

 Problems and issues:

• What problems or issues are central to
the focus of the project?

• What are the main problems or

concerns as experienced by different
stakeholder groups (problem
identification) and how do these relate
to the focus of the project?

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Situation Analysis – Question (2)

 Visions and opportunities:

• What changes would different stakeholder
groups like to see the project bring about?

• Visions, hopes or dreams do different

stakeholders have and are there
implications for the project?

• What opportunities do stakeholders see

for realising their visions?

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Situation Analysis – Questions (3)

 Biophysical:
• What are geographical
characteristics of the project area?
• What are the climatic conditions?
• What are the main forms of land
use?
• What are the main environmental
problems or risks?

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Situation Analysis – Questions (3)

 Organisations:
• What are the important government,
business and NGO organisations?
• How effectively are these
organisations performing?
• How are the different organisations
linked together (power relations,
communications, joint work,
competitors)?

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 Situation Analysis – Question (4)

 Infrastructure:
• What are the key infrastructure issues
for the area?
 Legal, policy and political institutions:
• What legal factors are significant for
the project?

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 Social and Cultural:
• What are the main social and cultural
conditions relevant to the project?

• What policies and programmes are

significant?
• What are the main government and
political structures and processes in the
area?
 Situation Analysis – Question (5)

 Economic:
• What is the economic situation of local
people?
• What are the livelihood’s main economic
activities?
• What are the key characteristics of the
local economy?
• What are the market opportunities and
constraints?

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Situation Analysis – Question (5)

 Note: for each question consider:

• The current and trends over time
• Changes and trends over time
• Future scenarios given different
assumptions
• Commonalities and divergence of
perspectives by different stakeholders

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 Situation analysis - Methods

 Analysis of background documentation

(secondary data review)
 Informal meetings
 Stakeholder workshops
 Formal surveys or formalised research
work

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Situation analysis - Methods

 Participatory Learning & Action (PLA)

methods, e.g:
• Focus groups
• Semi – structured interviewing
• Direct observation
• Mapping
• Diagrams
• Rich picturing

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PROBLEM ANALYSIS
OBJECTIVE ANALYSIS
ALTERNATIVE ANALYSIS
 ALTERNATIVE ANALYSIS
1-5 Funding Expertise Mandate Total
(60%) (30%) (10%)

Improve std 4 4 2 10
of education

Trained 3 4 2 9
teachers

Schools 2 2 3 7
constructed

Books 1 3 4 8
procured

12/01/2024 Logframe 108

LOGFRAME

 GOAL
 PROJECT PURPOSE
 OUTPUTS
 ACTIVITIES

12/01/2024 Logframe 109

Logframe matrix (4x4)
NORATIVE SUMMARY MEASURABLE INDICATOR MEANS OF ASSUMPTIONS
VERIFICATION
GOALS (S) INDICATOR TO VERIFY SOME OF DATA (EMPTY)
ATTAINMENT OF GOALS (S) NEEDED TO VERIFY
HIGHER LEVEL OBJECTIVE TO GOAL(S),METHOD,
WHICH PROJECT RESPONSIBILITY
CONTRIBUTES
PURPOSE INDICATOR(S) THAT VERIFY SOURCE OF DATA EXTERNAL FACTORS
BENEFICIARIES CHANGE NEED TO VERIFY NECESSARY TO
EFFECT OF PROJECT ON STATUS, METHOD, CONTRIBUTE TO THE
BENEFICIARIES THAT RESPONSIBILITY OBJECTIVE
LEAD TO THE GOAL

OUTPUT INDICATORS TO VERIFY SOURCE OF DATA EXTERNAL FACTORS

ACCOMPLISHMENT OF TO VERIFY NECESSARY FOR THE
FINAL PRODUCT OF OUTPUT OUTPUTS, METHOD, ACCOMPLISHMENT
OUTPUT THAT LEADS TO IN QUALITY, QUANTITY, RESPONSIBILITY OF OUTPUT
THE ATTAINMENT OF THE TIME ETC.
OBJECTIVE

ACTIVITIES SUMMARY OF PROJECT SOURCE OF DATA EXTERNAL FACTORS

RESOURCES REQUIRED NEEDED TO VERIFY NECESSARY
ACTIONS THAT CAN BE ACTIVITIES
UNDERTAKENT TO ATTAIN
OUTPUTS

12/01/2024 Logframe 110

LOGFRAME

 NARRATIVE SUMMARY
 MEASURABLE INDICATORS
 MEANS OF VERIFICATION
 EXTERNAL FACTORS/ASSUMPTIONS
 4x4 MATRIX

12/01/2024 Logframe 111

Exercise

 Using your project, identify the project

elements by undertaking the following:
 Problem Analysis
 Objective Analysis
 Project elements
 Activities
 Outputs
 Objectives
 Goal
 4x4 Matrix

12/01/2024 Logframe 112

 Commercial Investment
proposal

Project management L.P. Sooli 113

1.0 INTRODUCTION
 1.1 Project setting/environment
 1.2 Project Background
- area, people, economic activities,etc.
 1.3 Project Description.
- product, quantities, cost.
 1.4 Details of the project promoters
- Directors, banks, lawyers, shareholding,etc

Project management L.P. Sooli 114

2.0 MARKET ANALYSIS
 2.1 The product
- baby soap,village chickens, girls’ school shoes.
 2.2 Demand Analysis
- current customers, potential customers, letters
of intent.

Project management L.P. Sooli 115

Demand Analysis (cont’d)
 2.3 Supply Analysis
- local suppliers,
exports from other
regions, other emerging
companies.
 2.4 Marketing and
Distribution
- promotions, number
of outlets,

Project management L.P. Sooli 116

Market Analysis (Cont’d)
 2.5 Pricing
- based on maximum profit, return on capital,
mark-up price.
 2.6 Conclusion
- based on the above note the strong and
weak points of the marketing sector.

Project management L.P. Sooli 117

3.0 Technical analysis
 3.1 Location
- justify site or location
of business.
 3.2 Existing Facilities
- water, road, electricity
 3.3 Proposed Facilities
- building, machinery,
vehicle.
 3.4 Procurement

Project management L.P. Sooli 118

Technical Analysis (cont’d)
 3.5 Production process
- show how product will
be produced.
3.6 Implementation
Schedule
- state time from time of
implementation to
completion.
 3.7 Conclusions

Project management L.P. Sooli 119

 Raw materials/ Supplies
 4.1 Type of Raw
Materials
 4.2 Source of Material
- place, area, town
 4.3 Quantities required
 4.4 Prices of materials

120
L.P. Sooli Project management
5.0 MANAGEMENT &
LABOUR
 5.1 Senior management
-General manager, finance, production,
marketing
 Labour
- should include skilled, semi-skilled and
skilled.
- seasonal workers can also be included.

Project management L.P. Sooli 121

6.0 PROJECT COST AND
MEANS OF FINANCING
 6.1 Project Cost
- All costs (local and foreign) should be
included.
- remember to include contingencies
 6.2 Means of Financing
- show funds to be invested, loan amount
required, etc.

Project management L.P. Sooli 122

7.0 FINANCIAL ANALYSIS
 7.1 Projected profit and
loss accounts
 7.2 Projected Cashflow
Statements.
 7.3 Projected Balance
Sheets
 7.4 Internal Rate of
returns
 7.5 Economic Rate

Project management L.P. Sooli 123

8.0 SOCIO-ECONOMIC ANALYSIS
 8.1 Employment
creation
- number of people to
be employed, gender.
 8.2 Forex
Earnings/Savings
 8.3 Economic Linkages
 Use of local raw
materials

Project management L.P. Sooli 124

9.0 ENVIRONMENTAL IMPACT
ASSESSMENT
 9.1 Assess the positive
and negative impacts of
the project on the
environment.
 Mitigation factors, if
any.

Project management L.P. Sooli 125

 ANNEXES
 Detailed project cost
 Production schedules
 Tender documents
 Plant layout

Project management L.P. Sooli 126

 PROJECT PROCUREMENT
& CONTRACT
MANAGEMENT

L.P. Sooli
Eastern and Southern African
Management Institute

Project Management L.P. Sooli 127

Learning Objectives

 Understand the role of procurement in

projects
 Define the procurement process
 Understand the various types of contracts
 List best practices in project procurement
Introduction

 Governments spend US billions on

goods/services.
 Procurement life cycle: Process of identification
of needs, selection of suppliers, award of
contracts, acquiring goods and services from
third parties, post contract management and
disposal.

 Effective procurements – properly planned and

managed are essential to achieve value for
money.
 Why value for money matters

 Procure goods with lowest cost that is ‘fit for

purpose’ and meets specifications.
 For Items that don’t have lowest cost, ‘value
added’ benefits must be clear and justifiable.
 Need for competitive process
 Takes into account sustainability issues – (eg
disposal of items, cost to society)
Why Procurement?

 Essential for good public services.

 Applies highest professional standards

 for taxpayers to ensure acquisition of
appropriate and necessary goods/services to
quality required to meet user needs.

 Contracting authorities requires strong

personal and commercial leadership
Why Procurement?

 Approach and procedure: appropriate and

relevant to what is being purchased and
market should be able to provide at an
affordable price.

 Authorities should promote sustainable

development consistent with value for money
and within legal framework.
Strategic context of procurement

Contracting governments need

policy outcomes:- safe society,
healthy and educated citizens,
etc.

Policies developed to meet

these outcomes and engage in
contracting activities to deliver
them.

Procurement contributes to
policies and outcomes.
• Educated citizens need schools
(procured)
Procurement processes

 Items procured include low value to highly

complex policy solutions.

 Key factors affecting decision

 Repeatability: (repeated purchase or one-off)
 Complexity: (require technical specifications)
 Value and risk: (low value but high risk)
 Commonality: (required by one user or many)
 Factors making project complex
or high risk

Competition
Specification (restricted or Capabilities Contract
Risks in
Technicality (complex or few and skills (usual or
delivery
innovative) dominant required common)
suppliers)
Complex project procurement

 Emphasis on major procurements, usually of

a one-off nature.

 Areas where the greatest risks and

opportunities lie.

 Need for more public scrutiny and where

senior non- specialists are more likely to play
a role
Stages of complex procurement process

Tender
process and
contract
award
Contract and
Pre-
supplier
procurement
management

Procurement
process
Stage 1: Pre-procurement

 A) Pre-procurement planning
 Consultations with stakeholders (needs &
budget)
 Engage market )assess what is available and
how best to meet needs)
 Establish governance arrangements and
resourcing plans
 Ensure necessary expertise is appointed to
oversee process.
Procurement planning

Stakeholders

Project
All play role
team
in
procurement

Procure
ment
Departm
ent
Stage 1: Pre-procurement

 B) Developing specifications
 Provide sufficient details to allow market
respond to requirements – leave room for
innovation.
 Use output or outcome based specifications –
what authorities want to achieve!
 Start with high-level statement, then refine to
level of required detail for final specification.
Stage 1: Pre-procurement

 C) Project and Programme Management and

Skills
 Run procurements as projects
 Appointed senior officer should clearly define
required outputs and how they contribute to
overall business objectives.
 Ensure access personnel with appropriate
professional skills, knowledge and experience.
Stage 1: Pre-procurement
 D) Investment appraisal for procurement
 Make a business case to justify procurement
 Justify expenditure, value for money, benefits,
affordability, options and other commercial
approaches.( hire, buy, etc)

 Keep reviewing business case for any major

changes.
Stage 1: Pre-procurement

 E) Market engagement
 Useful to involve market in early process
 Take care not to give unfair advantage to one
or more suppliers
 Ensure exchanges are transparent and
compliant with procurement regulations.

 Right approach may encourage suppliers in

less privileged sectors to respond.
Stage 1: Pre-procurement

 F) Procurement strategy
 Should contain options analysis and
recommendations
 Eg type of contracting process
 Number and nature of suppliers required
 Length and type of contract
 Contract
 Supplier management
 Can also consider ‘prime contracting – where
lead supplier manages sub-contactors
 Management of employment issues
Stage 2: Tender process

 Vital to achieve fair and open competition

 Comply with legal obligations
 Equal treatment
 Non-discrimination
 Mutual recognition
 Transparency
 Statement of Work (SOW)

Many contracts include a statement of work (SOW).

A description of the work required for the procurement.

Describes the work in sufficient detail to allow

prospective sellers to determine if they are capable of
providing the goods and services required, and to allow
them to determine an appropriate price.

Project Management L.P. Sooli 146

Procurement statement of work

Details in SOW

Enable sellers
make informed
choice on bidding

Refined into
contract
 Statement of Work (SOW)

SOW gives bidders a better understanding of

the buyer’s expectations, and therefore
should be as clear, concise and as complete
as possible.

Describes all the services required, and

include performance reporting requirements.

Project Management L.P. Sooli 148

Procurement documents

 Request for information (RFI)

 Invitations for Bids (IFB)
 Requests for Proposals (RFP)
 Requests for Quotations (RFQ)
 Tender notice
 Invitations for negotiations
 Invitations for seller’s initial response.
REQUEST FOR INFORMATION (RFI)
 Issued solely for information and planning
purposes
 Does not constitute a Request for Proposal
(RFP) or a promise to issue an RFP in the
future.
 Request for information does not commit to
contract for any supply or service whatsoever
Invitation for bid (IFB) or invitation to bid (ITB)

 Submit an offer on a specific

project to be realized or product or
service to be furnished.
 The IFB is focused on pricing
 An offer given in response to an IFB is a bid,
which should not be confused with a quote.
 A quote is not an offer and, consequently, ca
nnot be accepted to form a binding contract.
.
 A request for quotation (RFQ)

 Purpose is to invite
suppliers into a bidding process to bid on spe
cific
products or services
 An RFQ typically involves more than the price
per item. Information like payment termsmay
be requested during the bidding process.
 RFQs
often include the specifications of the items/s
ervices to make sure all the suppliers are bid
ding on the same item/service.
 Detailed
 Request for Proposal (RFP)
 Two envelope procurement method that can
be used for goods, services or works.
 Used when suppliers, contractors or services
providers are expected to propose a specific
solution (methodology and workplan) to
fulfilling a specific requirement.
 Firms are required to submit technical and
financial proposals in two separate
envelopes.
 Request for Proposal (RFP)

 Technical proposal is evaluated first and

ranked according to pre-established
evaluation criteria,
 Then financial proposals of firms that
achieved the minimum qualifying mark
(score), indicated in the RFP, are opened and
evaluated.
 Request for Proposal (RFP)

 The RFP method differs from open tendering

in six fundamental aspects:
 (i) Proposals are submitted in two sealed
envelopes,
 (ii) At the opening event, the financial
proposals are left unopened and are
safeguarded,
 (iii) Financial proposals are opened only after
completion of the evaluation of technical
proposals,
 Request for Proposal (RFP)

 (iv) Only the financial proposals of the firms

achieving the minimum qualifying mark or
more are opened,
 (v) Selection is based on a proposed solution
and not on price,
 (vi) The sum of the combined weighted score
of the technical and financial proposals
determines the winning firm with which the
contract is negotiated.
 Invitation to negotiate

 Not an offer.
 Merely a preliminary discussion by one party
to the other to negotiate or make an offer.
 Establishes a Framework Agreement under
which projects can be allocated.
 Includes a statement of how the negotiation
will proceed, additional 'quality' aspects not
covered.
Stage 2: Tender process

 A) The Open procedure

 All interested candidates invited to tender
 All those who have capability can apply
 Procedure does not allow any form of pre-
qualification or pre-selection.
Stage 2: Tender process

 B) Restricted Procedure
 Interested candidates invited to respond to
advertisements by submitting an expression of
interest.
 Expression should be against defined criteria
relating to technical capability and financial
standing
 Shortlist of candidates then drawn up and
invited to tender.
 This is preferred procedure: reduces costs
Stage 2: Tender process

 C) Competitive Dialogue Procedure

 Restricted procedure is too rigid as it allows
only limited discussions

 Used where authorities need to discuss

aspects of contract with candidates.

 Useful where authorities can not define clearly

the technical means capable satisfying needs.
Stage 2: Tender process

COMPETITIVE DIALOGUE PROCESS

Preparation

Pre-qualification

Competitive dialogue

Final tenders

Contract award
Conduct procurements
Conduct
procurement
inputs
Procurement
management INFORMATION ON SCOPE, COST, TIME
plan

Procurement SOLICIT PROPOSALS FROM SELLERS

documents

Source of SELECTION CRITERIA ALREADY AGREED UPON

selection criteria

Seller proposals COME FROM SELLERS IN RESPONSE TO DOCUMENTS

Project PROJECT DELIVERABLES REQUIRED

documents

Make or buy
INFORMATION FOR DECISIONS
decision

Procurement PROVIDES SUPPLIER WITH

statement of REQUIREMENTS FOR
work RESPONSE

Organisational LISTINGS OF
process assets PROSPECTIVE
SELLERS
Stage 2: Tender process

 Evaluation of tenders
 Tenders evaluated according to tender
documents
 Should use the pre-defined evaluation
strategy
 Financial and qualitative elements of tender
assessed.
 Requires skilled and experienced staff
Guidelines
for Tender preparation and evaluation

L.P. Sooli (Ph.D)

Eastern and Southern African
Management Institute
Learning objectives
 Rationale for tender processing
 Preparation issues
 Setting advertising criteria
 Evaluation modalities
 Tender documents
Introduction
 All procurement (and planning) must conform
to
 Integrity,
 Transparency and
 Accountability.

 Apply to all activities before the actual

procurement
Procurement
 Procurement rules exist in most countries and
all international financing agencies
 Rules meant to encourage open competition
in tendering and contract award
 Encompass equitable and fair distribution of
information, monitoring and auditing of all
processes and implementation activities.
Procurement
 Preparation work before any tender is
advertised,
 requires a realistic estimate of the cost of the
structure with a breakdown cost items.
 Requires an engineer to supervize the
contractor and ensure all works are carried
out according to the design and to the highest
quality possible.
Procurement
 Estimates must be kept strictly confidential

 Underestimates from bidders could lead to

poor contract performance

 Overestimates may suggest over pricing,

cartel links or other unrealistic bidding.
Procurement
 Prequalification of bidders for expensive
contracts recommended
 Avoid the possibility of establishing cartels.
 Prequalification should be based on
professional competence, equipment,
relevant experience, financial capability and
integrity.
Preparation work
 Preparation of tender and contract
documents should be done on time.

 If funds from international agencies their

guidelines will have to be followed

 Preparation may require the application for

land and water rights, environmental impact
assessments, compensation or resettlement
plans
Advertisement of tender
 Tender advertisement period should consider
 the need for approval from the lender or donor,
 the need to adhere to local or national
government regulations and bureaucratic
procedures,
 whether it be advertised internationally,
regionally or nationally and
 the scope of works.
Advertisement of tender
 The evaluation modalities to be attached to
every tender document
 permits bidders to understand the proposed
evaluation process.
 Keep written records of significant events and
advise bidders in writing of any matter that
could have legal implications.
Evaluation modalities
 Two options - indicated in the tender document.

 1. - technical and financial offers are combined and

presented in a single envelope.

 2. – involves a two envelope system in which the

technical proposal (first envelope) is evaluated and
bids ranked before the financial offer (second
envelope) is opened.

 Ensures that price does not influence the technical

evaluation of the bid.
Evaluation modalities
 A points system could be adopted

 All tenderers made aware of the evaluation

procedure

 Indicate if there are any special conditions

involved.
Technical bid: 50 points
 Experience: 20 pints

 Equipment and staff: 10 points

 Work programme: 10 points

 Location of contractor: 10 points

Financial bid: 50 points
 The lowest priced bid receives 50 points and
other bids receive points based on 50 minus
1 point for every 2 percent difference from the
lowest bid price.

 Any bids more than 100 percent higher than
the lowest bid receive no points.
Evaluation
 Evaluation team should be composed of
people with relevant experience.

 4 recommended – 6 maybe too many.

 All bidders to be informed in writing

Tender documents
Tender documents
Tender Documents consist of the following:
 Tender Drawings
 The specification
 General requirements
 Specification of workmanship and
materials
Tender documents

 Bill of Quantities
 Conditions of Contract
 Form of Tender
 Form of Agreement
 Form of bond
Tender drawing
 Describes the project in sufficient detail so
that the price submitted by the contractor is
realistic.

 Drawings must show sufficient detail so that

there is
 not significant change and
 subsequently no significant change of the
cost.
Specifications
 (a) PART A: General Requirements
 Includes relevant details of the site and
information on items which do not form part of
the permanent works.

 (i) Preliminaries (Not part of permanent

works). They include:
 Services (water, electricity, gas, drainage)
 Accommodation (offices, toilets
Specifications

 Huttage (stores, workshops)

 Security (fencing, watchman)
 Protection
 Temporary roads and lighting
 Insurance
 Scuffolding
 Administration and office equipment
 Cost of staff
Specifications
 (a) PART A: General Requirements

 (ii) Program and sequence of construction

 (iii) Liaison with other contractors
 (iv) List of tender drawings
Specifications
 PART B: Specification of workmanship and
materials

 Deals with the detailed requirements of every

trade.
 The type, the quality and method of fixing (or
fabrication) and testing of every item for
incorporation in permanent works is
described.
Specifications

 Typical contents of ‘specification of

workmanship and materials’ are: Demolitions

 Excavations and Earthworks Drainage and
sewerage Piling, Mass reinforced concrete
Brickwork

 Metalwork Structural steelwork

Specifications
 PART B: Specification of workmanship and
materials
 Carpentry
Floor, wall and ceiling finishes
Glazing
Sanitary appliances
Mechanical and electrical Engineering
services Painting and Decorating
Roads
Fencing
Specifications
 PART B: Specification of workmanship and
materials

 Typical contents of concrete specification:

Type of cement to be used
Type of aggregate
Type of water
Specifications

 Type of mixer required

Trial mixes required
Test results required
Method of mixing
Tests on mixing
Methods of transporting and placing Tests on
concrete produced Methods of curing
 Stripping times for formwork
Bill of quantities
 Lists every work activity or component part
necessary for the execution of the
(permanent) works.
 These quantities are generally prepared by
the Engineer’s staff and sometimes by
quantity surveyors.
 Bill of Quantities is essential to cost control.
 Arranged to same sections as specifications.
 Bills of quantities are prepared from tender
drawings.
Bill of quantities
 Serves the following purposes:
 Help to describe the scope of the works

 Provide a means for pricing

 Provides a means of comparing the costs of

different tenders
Bill of quantities
 Provides a means of valuing completed work

 Provides a basis (method) for pricing

variations.
Conditions of contract
Purpose
 To define the responsibilities and liabilities of
the parties to the contract.
 To describe the method of administration (by
Engineer)
 Define the terms under which the work is to
be carried out, the relationship between the
Employer and the Contractor, the powers of
the Engineer and the terms of payment.
Form of tender

Standard letter of offer by the Contractor to

execute the works.
Prepared by the Engineer and signed by the
contractor.
 It contains the main points of the offer: --
 Starting date
 Duration
 Tender sum
Form of agreement
 List contract documents, signatures of
parties, sealed contact documents,
signatures, of parties.

 A standard form of agreement is the legal contract between the
promoter and the contractor.
 Evidences agreement of Employer to pay
price indicated and the contractor’s
agreement to undertake works in accordance
with tender documents.
Form of bond
 Signed by both the contractor and a third
party
 As evidence of agreement to pay in event of
the contractor’s default.
 Guarantee is provided by a third party (often
a bank or an insurance company) to the
contractor.
 If the contractor does not complete the work according to the
specification (contract documents), he pays sum of money
(bond) to the Employer.
Form of bond
 The form of bond is a guarantee in two ways:
Compensation to the Employer

 If the Contractor can get bond by a third party,

this means that it is an indication that he has
got reputation.

 The amount of bond is 10% of the contract

sum.
 Sample Proposal Evaluation Sheet

The following template could be used by a project team to

help create a short list of the best three proposals.

Project Management L.P. Sooli 200

Stage 3: Contract and Supplier management

 Contractual relationships very vital

 Good management of operational phase
important
 1. Service delivery management

 2.Relationship management
 3. Contract Administration

Contract administration:-
 ensures that the seller’s performance
meets contractual requirements.

 Contracts are legal relationships,

subject to the contract law in the country
where the project is conducted, and in
the case of international projects, the
country of supply.

Project Management L.P. Sooli 202

 3. Contract Administration

Due to complexities of projects, many

project managers ignore contractual
issues.

This can result in serious problems.

Project Management L.P. Sooli 203

 3. Contract Administration

Be aware of the legal problems they might

cause by not understanding a contract.

 In particular, most projects involve

changes, and these changes must be
handled properly for items under
contract.

Project Management L.P. Sooli 204

 Change Control for Contracts

Change control is an important part of the

contract administration process.

Apply change control process to contracts:

 1. Changes to any part of the project need to be

reviewed, approved, and documented by the
same people in the same way that the original
part of the plan was approved.

Project Management L.P. Sooli 205

 Change Control for Contracts

 2. Evaluation of any change should include an

impact analysis.
 How will the change affect the scope, time, cost,
and quality of the goods or services being
provided?

 3. Changes must be documented in writing.

 4. Project team members should also

document all important meetings and phone
calls.
Project Management L.P. Sooli 206
 Types of Contracts

 Three broad categories:

1. Fixed price or lump sum: involve a fixed
total price for a well-defined product or service.

2. Cost reimbursable: involve payment to the

seller for direct and indirect costs.

3. Unit price contracts: require the buyer to

pay the seller a predetermined amount per unit
of service.

Project Management L.P. Sooli 207

 1. Fixed Price or lump sum Contracts

 Involve a fixed total price for a well-defined

product or service.

 Suited where supplies or services can be clearly

specified before tenders are invited.

 The buyer incurs little risk in this situation.

Project Management L.P. Sooli 208

 Fixed Price or lump sum Contracts

 Fixed price contracts may also include

incentives for meeting or exceeding project
objectives.
 May include safeguards in the form of
penalty clauses.
 May be difficult to apply before the
consequences of delay are felt.

Project Management L.P. Sooli 209

 Fixed Price or lump sum Contracts

 NOTE:
Any changes to resource
requirements due to project revision
(change) is likely to lead to additional
claims by, and extra payment to the
contractor.

Project Management L.P. Sooli 210

 2. Cost Reimbursable Contracts

 Contracts involve payment to the seller for direct

and indirect actual costs.

 These contracts are often used for projects that

include the provision of goods and services
associated with new technologies.

Project Management L.P. Sooli 211

 Cost Reimbursable Contracts

 The buyer absorbs more risk with the type of

contract, which has three forms:
 Cost plus incentive fee (CPIF): the
buyer pays the seller for allowable
performance costs plus a
predetermined fee and an incentive
bonus.

Project Management L.P. Sooli 212

Cost Reimbursable Contracts

 Costplus fixed fee (CPFF): the buyer

pays the seller for allowable
performance costs plus a fixed fee
payment usually based on a
percentage of estimated costs.
Cost Reimbursable Contracts

 Cost plus percentage of costs (CPPC

 ): the buyer pays the seller for
allowable performance costs plus a
predetermined percentage based on
total costs.
 Contract Types Versus Risk

 Figure summarises the spectrum of risk to the buyer and seller for
different types of contract.
 Note that a low risk option for a buyer will be high risk for the seller,
and visa-versa.

Project Management L.P. Sooli 215

 3. Unit Price Contracts

 Contract often used for services that are

needed when
 the work cannot be clearly specified and
 total costs cannot be estimated in a contract.

 Many contract programmers and consultants

prefer to use unit price contracts.

Project Management L.P. Sooli 216

 Unit Price Contracts
 Require the buyer to pay the seller a
predetermined amount per unit of service.

 The total value of the contract is a function of

the quantities needed to complete the work.

 Unit price contracts are also called a time and

materials contract, and may incorporate
volume discounts.

Project Management L.P. Sooli 217

 Contract Close-out

 Contract close-out is the final project procurement

management process.
 Includes:

 Product verification to determine if all work was

completed correctly and satisfactorily.
 Administrative activities to update records to
reflect final results.
 Archiving information for future use.

 Procurement audits are often undertaken during contract

close-out to identify lessons learned in the procurement
process.
Project Management L.P. Sooli 218
 Best practices in project procurement

 Essential that organisations obtain good contracts that

minimise risk while ensuring optimum results through
effective contract administration.

 Very important to prepare contracts with great

care and expert assistance.

 It is equally important to initiate and follow effective

contract administration procedures.

Project Management L.P. Sooli 219

 Best practices in project procurement

The following guidelines can help can assist in preparing

proposals, contracts and administrative procedures:

 Use checklists and templates where appropriate.

 Evaluate risks by reference to suggested contract

provisions where appropriate.

Project Management L.P. Sooli 220

 Best practices in project procurement

 All major proposals and contracts, and contracts

with questionable provisions, should be reviewed
by a contract law expert.

 Appropriate pricing and/or insuring of risk

under the contract.

 Periodic review, improvement and updating of

contract preparation and administration
procedures.

Project Management L.P. Sooli 221

 Project exercise

 Given that limited resources are available to

organisations, ensuring value for money in
procurement is key to the optimal utilisation of scarce
resources.
 Discuss why:
 A) Value for money should be the prime driver for
procurement.
 B) Why procurement is often prone to corruption
 C) Disadvantages of open and restricted tender
procedures.
Setting Project Performance
Indicators
SYSTEMIC APPROACH AND TYPES OF INDICATORS
Learning objectives

 Participants should be able to:

 Define the various types of indicators
 Set good project performance indicators
 Understand the limitations of indicators
Definition: indicator

 Quantitative or qualitative factor or variable

that provides a simple and reliable basis for
assessing achievement, change or
performance.

 A unit of information measured over time that

documents changes in a specific condition.
 Performance indicator

Kilometers Nairobi by
Drive per hour 10.00hrs

• Activit • Measure • Objective

• Of
y • performanc
e
Indicators

 A given goal, objective or additional

information need can have multiple
indicators.

 Represents a simplification or approximation

of a situation
 Why indicators alone are not enough

 Sometimes indicators
may be too difficult or
expensive to measure:

 What can easily be

measured, may be
relatively meaningless.
 Why indicators alone are not enough

 Not everything that is

important can be
counted.

 Indicators alone do not

explain the reasons for
success or failure.
Making M&E worthwhile

 By ensuring that information leads to

knowledge and understanding which then
lead to improved action:

 Provides a comprehensive feedback and

learning process.
Specifying Qualitative Indicators

 Type of change you are trying to understand,

including the unit of analysis (e.g. changes in
a household, village, region).

 Time frame to be monitored.

Checking the quality of indicators

 First rule: avoid duplication!

 Find out which organizations already have

information that you need (secondary data
review).
 Checking the quality of indicators

 The quantitative & qualitative indicators must

be:
 Measurable;
 Representative;
 Reliable;
 Feasible.
 Checking the quality of indicators

 Measurable
 Clear indicator;
 Small, manageable set of
indicators;
 High quality indicator.
Checking the quality of indicators

 Representative
 It covers the most important aspect(s) of the
objective;
 Higher in objective hierarchy: set of
indicators.
Checking the quality of indicators

 Reliable:
 Well founded;
 Accurate;
 Measured in a standardized way with sound and
consistent sampling procedures;
 Directly reflects the objective concerned
Checking the quality of indicators

 Feasible – it can be obtained at a reasonable

cost and effort:
 Financially;
 Technically.
The Management Cycle

Operating plans
and budgets

Project
management

Needs
Assessment

Performance
Measurement

238
The perfect world

 Measuring what matters,

 Providing corrective feedback and positive

reinforcement to enthusiastic people who
enjoy being measured and take improvement
on as a challenge.

239
ATTRIBUTES OF A GOOD MEASUREMENT SYSTEM

 An effective performance measurement

system should have the following attributes.

 FOCUS ON EFFECTIVENESS

 FOCUS ON THE FUTURE

240
ATTRIBUTES OF A GOOD MEASUREMENT
SYSTEM

 FOCUS ON OBJECTIVES, “KEY RESULT

AREAS”

 KRAs are those functions or divisions of

performance in which your organization
must continually improve to be successful.

241
EXAMPLES OF “KEY RESULT” AREAS

 Customer
 Product/service
 Public/society/natural environment
 Marketing
 Human Resources
 Production
 Maintenance
 Operations
 Finance
 Good measurement systems don’t just
measure things done according to the
organizational chart. Good systems measure
things done to satisfy stakeholders.
242
Key Performance Indicators “KPI’s”

 “Performance” is the result or activity we are

looking for what fits in to strategic goals.

 “Key” means that this measure has been

pinpointed so carefully that management knows
precisely what to do.

 Measures are developed to capture both the input

and output elements of a business system.

243
SPEED INDICATORS

 Response time records

 Turn around time records
 Cycle time records
 Project completion dates
 Meeting scheduled time records

244
ACCURACY INDICATORS

 Judgment based climate or opinion surveys

 focus groups
 comment cards
 telephone surveys
 advisory panels
 Opinions of community leaders
 Meeting design specifications or passing an
inspection point that ensures the product works.

245
VOLUME INDICATORS

 Measures the amount (Number of) of outputs

or results from a specific activity or program.
 Number of units produced
 number of completed transactions
 % market share
 Number of failed sales due to being out of
stock

246
INVESTMENT INDICATORS

 Measures the amount of resources expended

on a specific program or activity or the unit
cost (cost/number of units produced ($)).
 operating costs per unit produced
 capital costs per unit produced
 cost per customer as to sales and marketing expenses
 cost per unit of after sales service and customer support.

 Notice that the financial measures are “per”

something

247
 SYSTEMIC APPROACH And
Types of Indicators

Inputs
Inputs Outputs
Outputs

Resources
Resources Process
Process Results
Results

Information
Information
Material
MaterialResources
Resources Outputs
Outputs
Procedures
Procedures
Financial Resources
Financial Resources Outcomes
Outcomes
Activities
Activities
Human
HumanTalent
Talent Impact
Impact
Technology
Technology
 SYSTEMIC APPROACH And
Types of Indicators

Inputs
Inputs Input
Inputindicators
indicators

Describe thematerial,
Describethe material,financial,
financial,
Resources technological
technologicaland
andhuman
human
Resources resources invested
resources invested. .Examples
Examples
staff
stafftime,
time,supplies
suppliesand
andequipment,
equipment,
funds,
funds, or in-kind contributionsto
or in-kind contributions toan
an
Information intervention.
intervention.
Information
Material
MaterialResources
Resources
Financial Resources
Financial Resources
Human
HumanTalent
Talent
Technology
Technology
 SYSTEMIC APPROACH And
Types of Indicators

Process indicators

Process Describe activities carried out

to achieve the desired results or
objectives of an intervention;

They show what is done and how

well it is done. Examples:
Procedures training sessions or educational
Activities programs prepared.
 SYSTEMIC APPROACH And
Types of Indicators

Outputs
Outputs

Output
OutputIndicators
Indicators
Outcome
Outcome
Indicators
Indicators

Describe the results achieved after

intervention was delivered, usually
Impact
Impact
observable immediately after the
Indicators
Indicators
intervention. Examples: number of
people trained, school built,
mosquito nets distributed.
 SYSTEMIC APPROACH And
Types of Indicators

Outputs
Outputs

Output
Output Outcome
Indicators Outcome
Indicators Indicators
Indicators

Impact
Impact
Describechanges
Describe changesin inbehavior
behavioramong
amongmembers
membersof ofthe
the Indicators
target population as a result of introducing an intervention. Indicators
target population as a result of introducing an intervention.
GGenerally
enerallyobserved
observedat atleast
leastaafew
fewmonths
monthsafter
afterthe
the
intervention
intervention. .Examples:
Examples:percentage
percentageof ofsexually
sexuallyactive
active
adolescents
adolescentsusing
usingcontraceptives,
contraceptives,thethenumber
numberof of
households using treated bed nets to prevent malaria.
households using treated bed nets to prevent malaria.
 SYSTEMIC APPROACH And
Types of Indicators

Outputs
Outputs

Outcome
Outcome
Indicators
Indicators Impact
Impact
Output
Output Indicators
Indicators Indicators
Indicators

Measure
Measurechanges
changesin thehealth
inthe healthor orsocioeconomic
socioeconomiccondition
conditionof ofthe
thetarget
target
population that generally occur after several
population that generally occur after several years. years .
Examples
Examplesinclude
includechanges
changesin infertility,
fertility,morbidity,
morbidity,orormortality
mortalityamong
amongcertain
certain
segments
segments of the population. Impact on health or socioeconomic statuscannot
of the population. Impact on health or socioeconomic status cannotbe
be
attributed to any single intervention. Although an intervention may
attributed to any single intervention. Although an intervention may make a make a
significant
significantcontribution,
contribution,ititcan
cannever
neverbe begiven
givenfull
fullcredit
creditfor
forthese
thesechanges.
changes.
 SYSTEMIC APPROACH And
Types of Indicators

Outputs
Outputs
Impact
Impact
Indicators
Indicators
Outcome
Outcome
Indicators
Indicators
Output
Output •• Measure changes in
Measure changes in
Indicators
Indicators the
thehealth
healthor or
•• Measure changes socioeconomic
socioeconomic
Measure changes condition
in conditionof ofthe
the
•• Measure results inattitudes,
attitudes, target
Measure results behavior targetpopulation.
population.
achieved behaviorandand •• Cannot be attributed
achievedat atthe
the practices
practicesof ofthe
the
Cannot be attributed
program
programlevel
levelinin to
toany
anysingle
single
target
targetpopulation
population
which
whichthe
the intervention.
intervention.
as
as a resultof
a result of •• Result of many
intervention
interventionwaswas introducing Result of many
introducingan an factors
delivered.
delivered. intervention. factors(some
(some
•• Observable intervention. intentional
Observable •• Observed at least a intentionaland andsome
some
immediately Observed at least a beyond the control
immediatelyafter
after few
fewmonths
monthsafter
after
beyond the control
the
theintervention.
intervention. of
ofany
anyorganization).
organization).
the intervention.
the intervention. •• Occurs after several
Occurs after several
years
years. .
More time, more effort!
 Example of indicators

INPUTS PROCESS OUTPUT

Increase in
Number of
people
Writing Projects
-20% increase
in written
projects by
- Recruitment of - Preparation of 10 Workshops 2012
resource persons training materials, conducted
-Release of funds - Conducting -70% of workshops OUTCOME
- 60 % of funds workshop -Conducted by
-Disbursed by - 80% of materials 2011
-June 2010 Developed by Dec, Increase in
2010 Donor funding
30% increase by IMPACT
Dec, 2015
Class exercise: Indicator setting

 Revisit the TSC project and develop the

following indicators:
 Input,
 process,
 output,
 outcome and
 impact
Factors Affecting Project
Sustainability in Public
Sector Projects
L.P. Sooli
Eastern and Southern African
Management Institute

257
Learning objectives
 Participants should be able to:
 Understand the rationale for sustainability

 Identify factors necessary for project

sustainability
 Incorporate sustainability factors in project
formulation
Class discussion
 What are the factors that might influence the
sustainability of projects in the public sector?
 How should they be monitored?

259
What is Sustainability?
 Sustainable development was defined in
1987 in a report on World Commission on
environment and Development as
Development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs

260
What is Sustainability?
 In the context of donor funded projects,
sustainability can be define as continuation of
benefits after major assistance from donors
has ended.

 Focus on flow of benefits into the future

261
Sustainability
 Is it important to include and monitor
sustainability factors?
 How should we monitor factors affecting
sustainability?

262
Keys to Sustaining the Future of
Communities
 Managing sustainability is a process aimed at
maximizing the flow of sustainable benefits.
 It is an ongoing process, that should be
introduced at project formulation stage.

263
Keys to Sustaining the Future of
Communities
 Maintaining benefit flows after major external
funding is completed assumes that the
stakeholder (Gov, Community, etc) will
provide an appropriate level of financial,
technical and managerial resources.

264
1. Government Policies

 Activities are implemented within a wider

policy environment.
 Activities which fit with the partner
government policies have a much better
prospects for sustainability as they will have
more political support

265
2. Delivery and contracting mechanisms

 A strong sense of local ownership is

critical to successful implementation
and sustainability of a project.

 Project ownership depends on the local

demand for the project

266
3. Participation
 The stakeholders should actively participate
by having the opportunity to influence the
direction and detail of design and
implementation of the project.

267
268
Ideas for effective participation: include:
 Activities are demand driven
 Design phase is given adequate time
 Design phase is participatory
 Ensuring that key team members have
appropriate skills.

269
3. Management and Organization
 Activities which build on local structures
have better prospects for promoting
sustainability of benefits
 Use of external technical expert without
training the local capacity may lead to
project failure after their departure

270
4. Financial and
Economic Benefits
 If an activity does not deliver clear and
equitable financial or economic benefits, it is
more unlikely to be sustained after the door
funding finishes.
e.g. health service users will not pay for
government health services if the service is
poor.

271
 Quality assurance needed to ensure
that the service produces expected
results even after the donor funding
stops.
 Counterpart contribution either in cash
or kind are a sign of commitment to the
activity’s objectives.

272
5. Partnerships

 Private sector and civil society involvement is

also important in sustainability of projects
 i.e private sector construction of roads, civil
society’s HIV/AIDS home based programs

273
6. Capacity building
 The provision of appropriate training for
the target group is a key strategy for
achieving sustainability
 Training should not be an add-on idea,
but should be included from formulation.

274
 Communities need to be mobilised to not only
support the project,

 but to be made aware of the benefits of the

project, it’s life-time, goals and impact

275
7. Technology
 To promote sustainability, the technology
transferred must be selected on the basis of
it’s appropriateness, in terms of technical
acceptability
 User expectations and acceptance
 Costs and benefits
 Reliability of supply and delivery
 Spare parts

276
8. Social, Gender and Culture
 For sustainability, there must be
considerations and understanding of the local
decision making systems, gender, issues,
division of labor, and cultural preferences
 e.g. the design of rural sanitation system
must take into considerations of traditions
attitudes to human waste.

277
 Projects which involve behavioural change take
a long time.
 Such a project should be planned and
implemented with a life-span longer than 5
years-tangible benefits accrued should be seen
 A greater participation of women in
identification, design and decision making is a
key part of sustainability.

278
 Donor agency staff and contractors must be
‘culture sensitive’ if they are to effectively
contribute to providing relevant and
sustainability solutions to development
problems.

279
9. Environment Management
 The key concern is that the activity does not
over-exploit non renewable resources,
deplete productive capacity of soil, or
damage the environment
 Environmental impact assessment is more
effective if it involves communities in
identifying and managing environmental risks

280
10. Political and Economic Factors
 Sustainability can be more difficult to achieve
in an unstable political or economic
environment
 Changes in government, policies, lack of
direction within the executive, and stalled
legislative program plus a failing business
confidence can all have adverse impact on
sustainability of projects

281
282
 Also the overall level of development of any
particular country will influence prospects for
sustainability
 Economic shocks such as rises in the price of
oil, or collapse of the market confidence in the
region can frustrate sustainability
 Natural disasters can also have negative
effects on sustainability of projects

283
Conclusion
 Its important for an organization delivering the
project to conduct a sustainability analyses in
the design and implementation strategy.
 Continuous revision of the sustainability
strategies are needed, in order to incorporate
any changes.
 Monitoring sustainability is vital!

284
Learning objectives
 Participants should be able to:
 Understand the importance of stakeholders in
development projects
 Appreciate the role played by stakeholders in
project implementation
 Identify and use the various stakeholder
techniques
Definition: stakeholder

 A stakeholder =
 an agency,
 organisation,
 group or individual
 who are involved either directly or indirectly
in the project/programme, and/or whose who
are affected either positively or negatively by
the implementation and outcome of it.
Question:
 What do we mean by stakeholder?

 What do we mean by stakeholder analysis?

 Why do we need actor stakeholder analysis?

Definition: stakeholder analysis

 An approach for
understanding a
system by
identifying the key
actors
 assessing their
involvement in that
system
Stakeholder analysis
 Refers to a range of
tools for the  their attributes,
identification and  interrelationships
 description of and
stakeholders on the  interests related to a
basis of: given initiative or
resource
Why stakeholder analysis
 To empirically discover existing patterns of
interactions
 To mobilise key stakeholders and to build up
a common awareness
 To target interventions and approaches
Stakeholder analysis is a tool

Policy
making

Mobilise Conflict
management
support

Identify Assess
risks interactions
Stakeholder management
Political
Stakeholders
issues

Organisational
Social Legal
Stakeholders Ability to grow
issues issues
And survive

Environ
mental
Stakeholders issues
Importance of Stakeholders in
public projects

 They enhance project implementation.

 Have potential ability to speed up, slow down
or completely obstruct public project progress

 Are useful advocates, sponsors and agents of

change
Importance of Stakeholders in
public projects

 They help in the successful performance of

the project.
 If stakeholders are well managed critical
requirements of the project will not be missed.
 Project will deliver good results and be
successful.
 Source of great moral and organization support
to project team in times of need or crisis.

Importance of Stakeholders in
public projects

 They help in minimizing project risks.

 Managing stakeholders is viewed as a form of
risk management.

 Will reduce the risk of negative influences

affecting the project and also inform project
team about likelihood of occurrence of any
risk.
Importance of Stakeholders in
public projects

 They are a source of valuable resources.

 Using stakeholder’s time, expertise and
influence to help reach goals of the project
gives access to a host of additional
resources,improve the quality of the results to
deliver.

Importance of Stakeholders in
public projects

 Encourages project ownership

 Ensures stakeholders view the project in a
positive light, regardless of the actual
outcome thus it gives increased confidence in
the success of the project.
 Stakeholders more prepared to take the
reins when project reaches its conclusion.
 Much easier to hand over.
STAKEHOLDER MANAGEMENT
 Necessary to determine how the stakeholders
are likely to

 react to project decisions,

 what influence their reactions will carry
 and how they might interact with each other,
 with the project staff to affect the chances for
success of a project strategy.
Understanding stakeholders

World
views

Ideals Values

Cultural
outlook

Interests Power

Conflicts

EACH PROJECT HAS ITS OWN UNIQUE STAKEHOLDERS

Purpose of stakeholder analysis
 To identify all those
people,  To identify local
groups or institutions and
institutions – processes upon
 who might be which to build
affected by an
intervention or can
affect its outcome
Purpose
 To provide a foundation and strategy for
participation: mobilisation of key stakeholders
 To make a start with understanding needs
and interests of the key stakeholders
 Important stages in stakeholder analysis
 During the problem identification and analysis:

• To mobilise stakeholders & to analyse the

stakeholders’ needs and interests, objectives,
linkages and interactions, etc.
Important stages in stakeholder
analysis

 While designing the project strategy or policy

• To balance conflicting interests and to

• assure commitment/participation in
implementation
Key questions in stakeholder
analysis
 Who are the stakeholders in a system, with regard
to a certain project / programme?

 What are their interests, views, objectives?

 How important are they?

 How are they affected?

Key questions in stakeholder analysis

 How do they affect / influence the project /

programme outcomes?

 What kind of relations?

 How should stakeholders participate or

contribute?
KEY QUESTIONS
 What opportunities and challenges do the
stakeholders pose to the project?

 What strengths and weaknesses do they

possess?
KEY QUESTIONS
 What resources are at the stakeholders’
disposal?

 Do any of these factors give them an

advantage in influencing the project
outcome?
STAKEHOLDER TOOLS
AND
TECHNIQUES
Tool 1- Participation Analysis Matrix

 Design a matrix using columns:

 Column 1
Brainstorm stakeholders. Group
stakeholders: place similar groups in
one row.
Tool 1- Participation Analysis Matrix

 Column 2:  Eg size,
Characteristics,  degree of influence
which describe in the area;
the agency or  how it is organised;
group  scale or scope
(national, regional,
provincial);
 rural/urban;
 membership etc.
Tool 1- Participation Analysis Matrix

 Column 3: Interests in the project.

 What is it they hope to get out of the

project?
 Any benefits that will accrue to them from
the project?
• (adapted from Hamilton & Gaertner,
1992) – GOPP)
Tool 1 (continued)
 Column 4:
resources that they  Eg data or
(can) provide to the information;
project.  human resources

 What is it that (personnel, expertise);

 a network;
they contribute  financial resources;
towards the  material, facilities and /
project? or equipment that might
be used in the project;
 mandate, policies.
Tool 1 (continued)
 Column 5: problems faced (by stakeholders)
that hinders the successful outcome of the
project,
 Eg lack of involvement in planning;
 lack of funds or material;
 lack of information or orientation to the project etc.
 No clear benefits
 Illiteracy
Tool 1 (continued)
 Column 6: required actions. Given what we
know about the stakeholders.
 What actions should the project implementers
take?
 What is it that we can provide to ease
implementation?
 How can participation be widened?
 Participation analysis matrix
Stakeholders Characteristics Interest Resources Problems Action
required

World
Bank

Govt

Churches

Community
Tool 2 – Actor analysis checklist

 Column 1: brainstorm stakeholders.

 Group stakeholders: place similar groups in
one row.
 Stakeholders should be identified by brain
stoming.
 Involved either directly or indirectly
 Affected either positively or negatively
Tool 2 – Actor analysis checklist
 Column 2: primary activities carried out
by each actor?
 What is it that they do economically,
socially, etc.
 What are the main productive
activities?
Tool 2 – Actor analysis checklist

 Column 3: position in the decision making

system.
 To what extent do the different actors have a mandate,
 policies,
 knowledge or other ‘power’ in relation to other actors in the project.
 Rank actors in order of importance (1 = low position/importance;
highest score = total number of actors).
Tool 2 – Actor analysis checklist
 Column 4: impact on the project.

 Indicate to what extent the actors contribute
towards the successful outcome of the project.
 Rank actors in order of importance (1 = low impact
on the project; highest score = total number of
actors).

• Adapted from Engel, 1997)

 Tool 2 – Actor analysis checklist

Stakeholders Primary Position in Impact on

activities decision making project

Private sector Funding, export 5 3

processing

Church organisations Spiritual care 2 4

Subsistence farmers Food crops, 1 5

labour

Export organisations Markets 4 2

Ministry of Policy 3 1
Agriculture
Tool 3 – Task analysis checklist
 Column 1: brainstorm stakeholders. Group
stakeholders: place similar groups in one row
and write the name of the stakeholder group
on a separate card.
Tool 3 – Task analysis checklist

 Column 2-7: brainstorm different tasks that need

to be carried within the project.
 Eg policy,
 situation analysis,
 programme planning,
 finance, technology development,
 programme management,
 implementation, monitoring evaluation?
 Indicate (by putting x) for each actor where they are
involved.
• (adapted from Engel, 1997)
 Task Analysis checklist
Policy Finance Planning Monitoring Implementation Evaluation

Government X X X x

Churches X X x

Community X X X

Private X X x
sector

World bank X X x
Tool 4 – Making a Venn diagram
 A Venn diagram (named after the man who
created it)
 It shows the key institutions and individuals in
a community and their relationships and
importance for decision – making.
Tool 4 – Making a Venn diagram
 Identify key groups institutions and individuals
who are responsible for decisions that are made
in the project.
 Who has some role to play in terms of making decisions on
the use of the land/area
 (eg for agriculture,
 recreation,
 landscape,
 water,
 environment etc).
Tool 4 (continued)
 Circles are used to indicate institutions,
groups or individuals.

 The size of the circle indicates
 the relative importance of this actor in relation
to the decision making process.
Tool 4 – making a Venn diagram
 The larger the circle, the more weight in terms
of decision making on the use of land.

 Identify the size relevant to each of the actors

and write the name of the actor on it.
Tool 4 (continued)
Identify degree of contact between the actors in
terms of decision making and arrange the
circles accordingly.

The closer, the more frequent / the better the

contact (in terms of passing on information,
co-operation, decision making).
 Tool 4 – Making a Venn diagram

Churches

Government
Community

Size: Decision making Private

NGOs
Closeness: Information sector
sharing
Tool 5 – Influence and Importance (DFID)

 Combine influence and importance in

matrix diagram
 Identify risks and assumptions for
stakeholder cooperation
 Determine how and which stakeholders
should participate in the project cycle
activities
Definitions: Influence
 The power which stakeholders have a project
to control what decisions are made, facilitate
its implementation, or exert influence which
affects the project negatively.
Definitions: Influence

 The extent to which the stakeholder is

able to persuade or coerce others into
making decisions, and following certain
course on action
Definition: Importance
 The priority given (by your organisation) to
satisfying stakeholders’ needs and interests
through the project
 Likely to be most obvious when stakeholders
interests in the project converge closely with
your objectives
Variables affecting stakeholders’ relative power and influence

 Within and between formal  For informal interest groups

organisations: and primary stakeholders:
• Legal hierarchy • Social, economical and
(command & control, political status
budget holders) • Degree of organisation,
• Authority of leadership consensus and
(formal, informal, leadership in the group
charisma, political,
familial or cadre
connections)
Variables affecting stakeholders’ relative power and
influence

• Control of strategic • Degree of control of

resources for the strategic resources
project significant for the
•
project
Possession of • Informal influence
specialist knowledge
through links with
& skills
other stakeholders
• Negotiating position • Degree of
(strength in relation
dependence on
to other stakeholders other stakeholders
Tool 5 – Influence and Importance
matrix

 A.  B.
High importance High importance
Low influence High influence

D  C.
•Low importance •Low importance
•Low influence •High influence
Tool 5 – relevant questions
 Which problems, affecting which
stakeholders, does the project seek to
address or alleviate?
 For which stakeholders does the project
place a priority on meeting their needs,
interests and expectations?
 Which stakeholder interests converge most
closely with policy project objectives?
Tool 5 – implications for your project

 A: stakeholders in A
require special  B: your project
initiatives if their needs to construct
interests are to be good working
protected relationships with
these stakeholders,
to ensure effective
coalition of support
Tool 5 – implications for your project
 C: these  D: These
stakeholders may stakeholders are
be a source of unlikely to be the
significant risk, and subject of project
they will need activities or
careful monitoring management
and management
Continuous assessment
 Discuss the importance of stakeholder
management in public sector projects.

 What challenges do public sector projects

have in assessing and incorporating
stakeholders in their projects?
 5 -6 pages
 Intake 30 evening, Lilongwe.
 L.P. Sooli 342

DESIGNING A PARTICIPATIVE

MONITORING SYSTEM
AND
MONITORING SCHEDULES
FOR PROJECTS

L.P. SOOLI
12/01/2024 Eastern and Southern African Management
Institute
 What is monitoring?
343

 Monitoring is a management process

which systematically seeks to supply to
the stakeholders, information on the
progress of implementation of the project
to facilitate timely decision making.

L.P. Sooli 12/01/2024

 Characteristics of a good monitoring system
344

• Quickly provides information for corrective

action

• Simple

• Cost – effective

• Flexible

L.P. Sooli 12/01/2024

 Characteristics of a good monitoring system
345

 Comprehensive

 Relevant

 Leads to learning

 Sustainable

L.P. Sooli 12/01/2024

 Characteristics of a good
346
monitoring system
 Transparent

 Information
sharing
(communication)

 Accessible

L.P. Sooli 12/01/2024

Project implementation
Monitoring Challenges

 Tendency to collect to
much information
 Data collection costly
 Unqualified
researchers

 PRINCIPLE: ‘’LESS IS
MORE’’
 Steps in designing a system
349

 Steps meant as a guide.

 Each level of the process should be

exhausted fully before the next step is
undertaken.

 Stakeholders at each level of project

elements should be considered.

L.P. Sooli 12/01/2024

MONITORING PROCESS

X Y

X Z

MONITORING
MONITORING FLOW CHART
MONITORING
DESIGN
STAKEHOLDER BASED

MONITORING
PLAN

MONITORING
SCHEDULES
 STEP 1: STAKEHOLDER ANALYSIS
352

 Stakeholders are people who are involved

directly/indirectly and/or are affected
negatively or positively by the project.
 Stakeholders monitor the project
 Identify important stakeholders.

L.P. Sooli 12/01/2024

 STEP 2: DECISIONS MADE
353

 Identify the decisions made by all the

stakeholders in Step 1.
 Decisions should pertain to the operations
of the project and/or those that might
affect the project.
 Some stakeholders may not make
decisions that affect the project directly.

L.P. Sooli 12/01/2024

 STEP 3: FREQUENCY OF DECISIONS MADE
354

 For each of the decisions identify in Step

2, assess the frequency of the decisions.

 How often decision is made?

 This should be either weekly or monthly or
yearly.

L.P. Sooli 12/01/2024

 STEP 4: INFORMATION REQUIRED
355

 For each of the decisions identified in Step

2, state the information required.
 Information required to make the decision

 Information should be disaggregated,

 Include performance indicators

L.P. Sooli 12/01/2024

 STEP 5: SOURCES OF INFORMATION
356

 Identify the sources of the information

required in Step 4.
 These could be within or outside the
project perimeter.
 Those sources should be informed of the
need to collect such information.
 Sources should be accessible.

L.P. Sooli 12/01/2024

 STEP 6: METHODS OF COLLECTION
357

 State the way information is to be

collected.
 The most widely used methods are:
written reports, questionnaires, visits and
meetings.
 The relevant stakeholders involved should
be informed of the method to be used.

L.P. Sooli 12/01/2024

 STEP 7: RESPONSIBILITY
358

 The responsibility to collect and

disseminate the information should be
vested in specific individuals or groups of
individuals.
 This should be communicated in writing.
 The reporting mechanism should be clear.

L.P. Sooli 12/01/2024

 STEP 8: RESOURCES REQUIRED
359

 For information to be provided effectively

and on time, specific resources should be
assigned to the activity.
 These might be transport, allowances,
computers, office space, time.

L.P. Sooli 12/01/2024

 DESIGN FORMAT
360
Stakehold Decisions Frequency Informatio Source of Method of Responsibil Resource
ers made of n required informatio collection ity s
decisions n (Groups required
made /individuals
)

Govt

NGOs

Private

Farmers

L.P. Sooli 12/01/2024

 STEP 9. MONITORING PLAN
361

 The end result of a designing process is a

monitoring plan.
 It summaries all the details given in the
design process.
 It allows for the systematic monitoring of
the programme, with justifications.
 Report formats, questionnaires, meetings
are developed using the tool.

L.P. Sooli 12/01/2024

MONITORING FLOW CHART
MONITORING
DESIGN
STAKEHOLDER BASED

MONITORING
PLAN

MONITORING
SCHEDULES
 MONITORING PLAN
363

 It will show which stakeholders will need

what information, at what time, and
provided by whom for them to make
certain decision.
 Eg. The project staff may require more
detailed information at a higher frequency
than the policy makers.

L.P. Sooli 12/01/2024

 REPORT FORMAT
364

1. General particulars of project

2. Findings and recommendations of
previous report
3. Current operations
1. Eg. Level of activities, resource use,
challenges.
4. Conclusions and recommendations
5. Work-plan

L.P. Sooli 12/01/2024

LINK REPORTS

CURRENT FOR NEXT REPORT

PREVIOUS PROJECT PROJECT WORK PLAN
REPORTS
OPERATIONS
 Risk management
Risk Management in
projects

L.P. Sooli
Success or failure of projects
366
Learning objectives
 The participants should be able:
 Define risk
 - Define risk management strategies
 - Identify methods of risk management
 - Make a risk management plan
 Best practices in risk manangement
 Risk management
Risk management
 Risk: effect of uncertainity on objectives;
(Could produce positive or negative impact)
 Risk management is the identification,
assessment and priotization of risks.

L.P. Sooli
 Involves coordinated and economical
application of resources to minimise, monitor
and control the probability of unfortunate
events or maximise opportunities.
368
 Risk management
Principles of risk management
 Create value
 Integral part of organisational processes
 Part of decision making
 Addresses uncertainities
 Systematic and structured

L.P. Sooli
 Based on best available information
 Takes into account human factors
 Responsive to change and interactive
369
Risk management
 Projects with high risks need more rigorous
application of project management methods.

 Idea: manage risks in a cost effective manner

to increase chances of project success.

 Spend more time envisioning those factors

that can cause project failure
 Risk management
Risk management
 Priotisation process involves:
 The risks with the greatest loss and the
greatest probability of occurring are handled
first
 The risks with the lowest probability of

L.P. Sooli
occurrence and lower loss are handled in
descending order.
 In practice process can be very difficult

371
 Risk management
Risk management
 Risks come from:
 Unstable financial markets
 Project failures
 Legal liabilities
 Accidents

L.P. Sooli
 Disasters
 Deliberate attacks

372
 Risk management
Risk management
 Strategies to manage risks can include:
 Transferring risk to another party
 Avoiding risks
 Reducing negative impact
 Accepting risk and other consequences

L.P. Sooli
373
 Risk management
Risk management
 Intangible risk management identifies a risk
that has a 100% probability of accuring.

 Eg deficiencies in knowledge lead to a

knowledge risk.

L.P. Sooli
 Ineffective operational procedures will reduce
productivity

374
 Risk management
Methods of risk management
 Risk management not an easy process

 First risks need to be identified

 Then categorise for likelihood and impact

L.P. Sooli
 Has to be done for each risk

375
 Risk management
Methods of risk management
 ISSUE BASED:
 Project broken down into parts that cover
certain issues within project
 Examples: technical issues, health, safety,
environmental, financial, managerial,

L.P. Sooli
commercial.
 These are then considered in turn and
analysed.
 Covers obvious areas but has a tendency to
forget ‘yesterday’s mistakes” 376
 Risk management
Methods of risk management
 CHECKLIST:
 Check list of all important areas that might
have high chances of risks identified.

 Provides comprehensive picture of operations.

L.P. Sooli
 Suffers from same problem as above- forget
las experiences!

377
 Risk management
Methods of risk management
 SCORING:
 Tries to give a value that indicates the degree
of risk
 May a threshold value on a level of 1 to 10 –
with 10 indicating the highest risk.

L.P. Sooli
 Method has trouble in distinguishing impact
from the likelihood of the event occurring.
 Example risk may have potential impact but not
chances of occurring.
378
 Risk management
Methods of risk management
 QUANTITATIVE:
 Uses the plan (Schedules) that is already in
use
 Uses the cost and schedule breakdown
information

L.P. Sooli
 Risk is measured in the same units as costs.
 Example for durations time might be days and
costs could be dollars
 Makes it possible for people to understand.
379
 Risk management
Risk management
 Risk management also faces difficulties in
resource allocation.
 Resources spent on risk management could
be used for other profitable activities
 Dilemma: Risk management reduces

L.P. Sooli
spending and minimises the negative effects
of risks.
 Risks in project keep changing – risks at
beginning of project may disappear later.
380
 Risk management
Process for project risk management
 1. Creating plan for risk management
 2. Identifying risks
 3. Analysing risks
 4. Developing risk responses
 5. Managing project’s legal and administrative

L.P. Sooli
constraints

381
1. Creating a risk management plan
 Everything done in projects meant to reduce
the risk failure.
 Project scope meant to reduce risk of not
delivering outputs
 Schedules to reduce risk of late completion
 Budgets to reduce risk of over-spending
 Communication plan to reduce risk of not
providing correct and timely information to
stakeholders
 Creating a risk management plan
 Risk planning is not a one-off event

 Adopt a proactive approach to risks –

constantly evaluating risks

 Best done through a risk management plan

 Creating a risk management plan
 Risk management plan can include the
following
 Methods used in identifying risks
 Categories of risks
 Scales for ranking risks
 Methods for managing unique constraints of
public systems, eg bureaucracy
 Responsible person for risk management
 Risk reporting systems
Risk probability scale
Probability description Probability score

Nearly certain that risk will occur 10

Highly likely that risk will occur 7

Likely that risk will occur 5

Not very likely that risk will occur 3

Very unlikely that risk will occur 1

 2. Identifying risks

 Risk identification needs to be performed

periodically

 Risk identification should involve most

stakeholders – ownership

 Project team can draw on the expertise of the

team
 Identifying risks
 Strategies for risk identification
 Brainstorming
 Reviewing project documentation
 Analysing root causes of events
 Analysing previous projects
 Analysing project assumptions
 3. Analyzing risks
 Create list of risks
 Priotise the risks – do quatitative risk analysis
 Quatitative risk analysis is the application of
probability and impact weighting.
 Stakeholders can assign probability and impact
scores to each risk and multiplying those scores
to determine the risk factor for each risk.
 Or use simpler indicators of risk seriousness
 Use colours ‘red’, ‘yellow’, ‘green’
 4. Risk responses

 Create cost-effective responses to identified

and priotised risks.
 Start with most serious risks and develop
responses that address the probability
weighted impact.
 Example: If risk has 10% chance of occuring and
could cost project $100,000, we would not want
to spend more that $10,000 on a risk response.
(10% X $100,000)
 Risk responses
 Since risks could have positive or negative
impacts:
 Identify strategies to reduce the impact and
probability of negative outcomes and identify
strategies that increase the probability and
impact of positive outcomes. (opportunities)

 You can also accept a risk

5. Manage administrative constraints
 Observe the law
 Study legal and administrative constraints
 Review laws and administrative rules
 Learn from prior projects
 Consult legal staff
 Risk management
Risk mitigation measures
 Design a new business process with built-in
risk control measure, eg new buildings
 Periodically re-assess risks that are
acceptable in ongoing process
 Transfer risks to an external agency eg

L.P. Sooli
insurance company
 Avoid risks – closing down high-risk
business areas.
392
 Best practices in Risk management

Risk management
for projects
 Planning how risk will be managed – plan
should include risk management tasks,
responsibilities activities and budget.

 Assigning a risk officer

L.P. Sooli
 Maintaining a project risk database

393
 Best practices in Risk management

Risk management
for projects

 Creating anonymous risk reporting channels

 Preparing mitigation plans for risks

 Summarizing planned and faced risks,

L.P. Sooli
effectiveness of mitigation activities and effort
spent for risk management.

394
Discussion question
 Create a risk management plan for your
project or organisations.
 What are the limitations in implementing the
plan?
 MANAGING PROJECT
HUMAN RESOURCES

L.P. SOOLI
Eastern and Southern African
Management Institute

Project management L. P. Sooli 396

Learning objectives
 Participants should be able to understand the
following:
 - the rationale for HR in public sector projects
 - challenges in HR
 - creating a HR plan
 - HR functions in projects
 - best practices in HRM
Human Resources
 Represents the largest single cost item for
most public sector projects
 Managing HR is about maximising
contributions to project success
 Provides most challenges for Project
managers.

Project management L. P. Sooli 398

Challenges of HR Management
 HR management may differ between public
and private sector projects
 Challenges include:
 Inability to link performance and reward
 Most productive members may not be the
most highly compensated
 Project manager may not select team based
on expertise

Project management L. P. Sooli 399

Challenges of HR Management
 Challenges
 Culture of work performance may not reward
risk taking.
 Compensation may not be based on the
retention of the highest performers with critical
skills.
 Work place may not be familiar with result-
oriented project management
 Political interference and political appointees

Project management L. P. Sooli 400

Other challenges…
 Progressive discipline process ( improve
performance)
 Verbal warnings
 Counselling
 Written warnings
 Suspensions
 Termination/

Project management L. P. Sooli 401

Required Functions for HRM
 1. CREATING A PLAN FOR OPTIMAL USE
OF HR
 HR cost is normally the highest
 In order to get best return, consider the use
through:-


Identify strengths and weaknesses of HR

Provide training

Make work assignments appropriate to the
individual

Monitor individual and team behaviour
Project management L. P. Sooli 402
Required Functions for HRM
 1. CREATING A PLAN FOR OPTIMAL USE
OF HR

 Take corrective action – engage in progressive

discipline
 Provide adequate incentives
 Inspire team and individual performance
 Manage contract staff

Project management L. P. Sooli 403

Need for HRM plan
 Orderly and disciplined approach need HR
plan
 To include the following:
 Method to acquire project team
 Time in which resources are required (bar
charts)
 Training need and plans
 Team evaluation criteria
 Team rules
 Project organisation chart
Project management L. P. Sooli 404
Required Functions for HRM
 2. MOTIVATING AND MANAGING TEAM
 Challenge not created by team members but
by constraints on HRM
 Training budgets limited
 Training not included in project
 Training centrally controlled and approved
 Members may have been in projects for long –
hence - skeptical about new initiatives
 Gaining trust a huge challenge

Project management L. P. Sooli 405

Required Functions for HRM
 2. MOTIVATING AND MANAGING TEAM
 Other incentives
 Salary increments
 More responsibilities
 Written letters of commendation
 Clear career path
 Promotions

Project management L. P. Sooli 406

Required Functions for HRM
 3. RESOLVING PROJECT CONFLICTS
 The old view of conflicts
 Conflict always regarded as bad
 Caused by troublemakers
 Best managers did not have conflicts
 People viewed as causes of conflicts
 Limited tools on conflict resolution

Project management L. P. Sooli 407

Required Functions for HRM
 3. RESOLVING PROJECT CONFLICTS
 Main causes of conflicts may include
 Being listened to
 Getting services needed
 Being respected by others
 Reduce transaction costs
 Make project succeed
 Complying with rules and laws
 Protecting personal reputations
 ( All these are reasonable)
Project management L. P. Sooli 408
Required Functions for HRM
 3. RESOLVING PROJECT CONFLICTS
 Get parties in a conflict to express their
interests rather than their positions, we can…
 Focus on solving problems rather than fixing
people
 Work on real issues
 Broaden solution set and find options for
mutual gain
 Create good relationships

Project management L. P. Sooli 409

Strategies for managing HR
 Financial incentives for public sector projects
are limited.
 Many theories state that employees are not
highly motivated by financial incentives.
 Frederick Herzberg:
 Factors that motivate employees are different
from factors that dissatisfy them

Project management L. P. Sooli 410

Strategies for managing HR
 Frederick Herzberg
 Workers dissatisfied by factors such as
 pay,
 working conditions
 Relationship with peers
 Company policies

Project management L. P. Sooli 411

Strategies for managing HR
 Frederick Herzberg
 Workers motivated by factors such as
 Achievement
 Recognition
 The work itself
 Advancement
 Opportunity for growth

Project management L. P. Sooli 412

Strategies for managing HR
 Douglas McGregor (1960s)
 Framed a theory of management of how
people approach work and how they must be
managed.
 Theory X
 Employees seeking to avoid work
 Require supervision
 Value security over all else
 Motivated by the presence of penalties for
non performers
Project management L. P. Sooli 413
Strategies for managing HR
 Douglas McGregor (1960s)
 Theory Y
 Value self direction
 Self motivated
 Capable of being creative to solve
organisational problems
 Accept responsibility
 McGregor argues that better results obtained
by employing strategies that assume that
employees are predominantly from Theory Y
Project management L. P. Sooli 414
Strategies for managing HR
 Abraham Maslow:
 Created hierarchy of needs
 Lower level: physiological and social needs
 Higher level: esteem and self actualisation
 Once a need is met, it no longer becomes a
motivator.
 So best motivators are those higher on the
hierarchy

Project management L. P. Sooli 415

Strategies for managing HR
 Victor Vroom
 Defined expectancy theory
 Although employees have different goals, their
behaviour is a result of the extent to which
they see a correlation between their behaviour
and achievement of those goals.

Project management L. P. Sooli 416

Strategies for managing HR
 Victor Vroom

 Employee behaviour is a function of the extent

to which they see effort tied to reward – which
contributes to personal goals.

 Those personal goals are different for each

person

Project management L. P. Sooli 417

Best practices for HRM in projects
 Develop a human resources management
plan
 HR department regarded as an asset
 Be demanding but respectful in getting
resources you need
 Give project team latitude to define their own
activities
 Engage project members in decision making

Project management L. P. Sooli 418

Best practices for HRM in projects
 Assume that team members are Theory Y
employees
 Give team members chance to experiment
and learn
 Project manager has responsibility for project
success but only with the help and support of
other members.
 Protect team from outside interference
 Fix problems, not people

Project management L. P. Sooli 419

Discussion questions
 Discuss challenges you encountered in the
management of human resources in projects.
 Challenges encountered in acquiring project
team members with the right skills and
qualifications.
 What experiences have you had in motivating
team members.
 What other best practices can you have for
managing projects.

Project management L. P. Sooli 420

 CAPACITIES &
CONDITIONS FOR
MONITORING &
EVALUATION
(Public Sector Projects)
L.P. SOOLI
Eastern and Southern African
Management Institute

L.P. Sooli Project Management, 421

Learning objectives

By the end of the session, participants are able

to:-
 List the necessary capacities and conditions
for effective and efficient PME
 Describe what needs to be considered
when putting in place these capacities and
conditions.

L.P. Sooli Project Management, 422

 MONITORING AND EVALUATION PROCESS

Evaluati
on

Monito
ring

Project
process

L.P. Sooli Project Management, 423

KEY MESSAGES (1)
 Joint development of M&E is critical for
capacity building
 Ensure everyone is clear about his/her
responsibilities, to avoid gaps and duplicate
or contradict efforts
 Building capacity for M&E usually involves
external and on the job training both for
project staff and implementing stakeholders.

L.P. Sooli Project Management, 424

KEY MESSAGE(2)
 Pay attention to M&E functions
 Information flows fit in the project so
that the insights gained can feed into
timely decision making.

L.P. Sooli Project Management, 425

KEY MESSAGE (3)
 Ensure an appropriate and flexible
information system that provides
easy access for data entry, analysis
and retrieval, .

L.P. Sooli Project Management, 426

KEY MESSAGES (4)
 Support the M&E system with a well planned
budget.
 Work towards creating learning processes
that support local development.
 Decentralised learning process between
stakeholders requires local capacity building,
with local resources and structures.

L.P. Sooli Project Management, 427

What is needed to ensure the
M&E system actually works?

L.P. Sooli Project Management, 428

Necessary conditions
 What is needed to ensure the M&E
actually works?
 Human and institutional capacity
 Incentives for M&E
 Organised M&E structures and
responsibilities
 Organised systems for managing
information
 Finances and resources to operate
the M&E system.
L.P. Sooli Project Management, 429
Capacity for people and their organisations

 For an effective M&E system you need

skilled people who can fulfill the M&E
functions and tasks
 Designing the general outline of the M&E
system
 Setting up and operating supportive
system.
 Facilitating learning
 Managing the communication of M&E
findings
L.P. Sooli Project Management, 430
What is needed to meet the
capacity needs of people and
their organisations?

L.P. Sooli Project Management, 431

Meeting capacity needs of people and
organisations

1. Acquiring the right people

 recruiting trained staff, consultants
2. Ensuring capacity of good quality
 keep track of performance, clear
job descriptions
3. Building capacity for M&E
 skills for dealing with data and
people
4. Investing in capacity for participatory
M&E.
L.P. Sooli Project Management, 432
Investing in capacity for
participatory M&E.

 For M&E to be worthwhile, the various

stakeholders must be able to participate
meaningfully:
- skills in participatory facilitation
techniques
- seek other people’s views
- commitment to PM&E, self-criticism.

L.P. Sooli Project Management, 433

CAPACITIES FOR PRIMARY
STAKEHOLDERS
 Capacity should be built into the overall
participatory approach of the project
 Building their capacity for M&E to participate
is critical:
- it can contribute to building overall capacity
- it encourages project ownership& success.

L.P. Sooli Project Management, 434

PAYING ATTENTION TO
INCENTIVES
 Offering stimuli that encourages all
stakeholders involved in M&E to perceive the
usefulness of M&E.
 It involves implementing encouragement and
removing disincentives.
 Changing incentives touches the very heart of
project culture and norms.

L.P. Sooli Project Management, 435

Exercise on incentives
 Since projects commit large
amounts of money, what incentives
should be included to motivate
staff?

L.P. Sooli Project Management, 436

EXAMPLES OF INCENTIVES
1. Clear job description
2. Financial/physical rewards
3. Support to carry out project activities
4. Career development
5. Personnel strategy
6. Recognition of work
7. Feedback
8. Performance forms

L.P. Sooli Project Management, 437

BASIC MOTIVATIONAL FACTORS
 Everyone accepts and shares org. vision
 Org. culture and institutional atmosphere
encourages good performance.
 There is a supportive, fair and inclusive
leadership and management style.
 Attractive incentive and reward system.
 Idea of promoting teamwork of org.goals.

L.P. Sooli Project Management, 438

AN OPTIMAL STRUCTURE FOR
M&E RESPONSIBILITIES

 Developing an optimal  It is important to:-

structure for M&E - Avoid communication
means: bottlenecks
 Considering the most - Avoid conflict of power
appropriate contribution and interests
for project staff, partner - Avoid duplication of
organisation staff and tasks.
primary stakeholders. - Avoid wasting effort,
resources.
L.P. Sooli Project Management, 439
CRITICAL ASPECTS FOR ENSURING
CLARITY OF M&E FUNCTIONS
 Considering where to locate the M&E
function in a project structure.
 Being clear about M&E responsibilities.
 Know what it is that you want to monitor
and evaluate.

L.P. Sooli Project Management, 440

ENSURING CLARITY OF M&E
TASKS
 Define the M&E responsibilities of
implementing partners and primary
stakeholders.
 Consider staffing levels needed for tasks
 Allocate clear levels of authority to staff.
 Ensure overlap between project management
and M&E for decisions.
 Use detailed job descriptions for staff.

L.P. Sooli Project Management, 441

MANAGEMENT INFORMATION
SYSTEM
 What is management information
system?
 Why is it important to have good
information systems?
 What type of information needs to be
stored?

L.P. Sooli Project Management, 442

MANAGEMENT INFORMATION
SYSTEM
 A system of in-putting, collating and
organising data that should provide selective
data and reports to the management, to
assist in monitoring/evaluation and controlling
project organisation, resources, activities and
results.

L.P. Sooli Project Management, 443

POSSIBLE ASPECTS OF MIS
 Can be paper-based archives or computer
based
- intranet with e-mail facility
- data base application (e.g excel) for storing,
reports and records.
- filing and documentation system
- library

L.P. Sooli Project Management, 444

 TYPES OF INFORMATION STORED

 Impact-related
information
 Progress information
 Annual Plans
 Work breakdown
schedules

445
Project Management, L.P. Sooli
BUDGETING FOR M&E

WHAT ITEMS DO YOU NEED TO BUDGET

FOR IN ORDER TO CARRY OUT M&E?

L.P. Sooli Project Management, 446

ITEMS TO INCLUDE IN BUDGET

 Contracts for external expertise

fees and travel expenses
 Physical non-contractual investment costs
equipment,computers
 Training and study tours
 Labour costs
 Non-labour operational costs
stationary, meetings, allowances.

L.P. Sooli Project Management, 447

 Project paper
 Discuss why stakeholder management is
important in the designing of a monitoring
system.
 What challenges do public sector projects
face in the integration of stakeholders in
project management?

 12 -15 pages
 Intake 29 day Seychelles

12/01/2024 Prepared by: L.P. Sooli 448

Project paper
 Discuss why risk management is an important
process in effective project management.
 What component should be included in a risk
management plan and why?
 10 – 12 pages
 Intake 30 evening, Lusaka
PROJECT PAPER
 Discuss why it is important to undertake a
stakeholder analysis in public sector projects.

 What challenges are faced in trying managing

stakeholders in public sector projects.
 10 -12 pages
 Intake 31 evening, Kampala
Project paper

 Discuss the rationale for risk management in

projects.
 Discuss the essential features of a risk
management strategy and explain how it can
improves project performance.

 10 -12 pages
 Intakes 31, 32 and 33 Harare
Project paper
 A) Explain the importance of project
management in national development.

 B) Discuss the factors to be considered in the

formulation of policies for project
management.

 10- 12 pages
 Intake 31, Lilongwe
Project paper
 Discuss why risk management is an important
process in effective project management.
 Discuss the features of an effective risk
management strategy.
 10 – 12 pages
 Intake 32 evening, Kampala
Project paper
 Discuss how the project management cycle
can be used to formulate a country’s
development policies and improve project
implementation efficiency.

 10 – 12 pages
 Intake 32 Evening Nairobi.
 Project paper
 Discuss why stakeholder management is
important in the designing of a monitoring
system.
 What challenges do public sector projects
face in the integration of stakeholders in
project management?

 12 -15 pages
 Intake 32 Evening ESAMI HQ

12/01/2024 Prepared by: L.P. Sooli 455