CHAPTER TWO

PROJECT PLANNING APPROACHES AND

METHODS
 Concept
• Project planning approaches and methods are the
strategies, frameworks, and techniques used to define,
organize, and schedule project work.

• Approaches define the overall philosophy (e.g., rigid vs. flexible),

while

• Methods are specific, actionable tools (e.g., Gantt charts, CPM)

used to map out tasks, resources, and timelines efficiently
– Critical Path Method (CPM): Identifying the longest sequence of dependent tasks to
determine the shortest possible project duration.
 INTRODUCTION
• Planning: defining and refining objectives of the project and
selecting the best course of action to attain those objectives

• Project planning and analysis is essentially a process of

“seeking alternative choices” to reach an agreed upon set of
objectives in the most efficient manner

• Evaluation involves the systematic collection of information

about the activities, characteristic and outcomes of an activity
or action, in order to determine its worth or merit
 Why Planning?
Four concrete reasons for the paramount (principal)
importance of planning are as follows:
1. Minimizes risk and uncertainty
2. Leads to success
3. Focus attention on the organization’s goals
4. Facilitate to control the project
 Int Cont’…
Project planning represents processes during the identification and
preparation stage of the project cycle.
– where particular problems areas are identified and clear objectives
are set to achieve the required changes;
– where alternatives are developed and choices are made and
– where appropriate actions are prepared for implementation.

• It also provide a framework for project management,

implementation, monitoring and evaluation,
 …. Int’ Cont’
• Participation is a key for successful project planning method.
– Who can participate?
• Key Stakeholders in Project Planning
• Beneficiaries (farmers / community members)
• Local government authorities
• Implementing organizations
• Donors and funding partners
• Technical experts and advisors
• Private sector partners
• Community leaders and local institutions

• The logical framework approach is very useful in effective

participative project planning method.

• So; What is the Logical Framework Mean?

 The Logical Frame Work Approach
• Origins of LFA:
– It was Developed in response to poor planning and monitoring
of Development projects. ( by USAID and gtz)

– A quality-based understanding of planning founded on

• a participatory and transparent approach to the planning
process,
• oriented towards the needs of partners and target
groups, in which the key elements of a project are agreed on
step by step, in teams, with those concerned, and recorded
transparently” (GTZ, 2005).
 Logical Framework Analysis (LFA)
Definition
• It is a systematic planning procedure for complete project
cycle management.

• It is a problem solving approach which takes into account the

views of all stakeholders.

• It also agrees on the criteria for project success and lists

the major assumptions.
 Logical Framework Analysis (LFA)
• The LFA approach is a tool for planning, monitoring and
evaluating projects.
• This is also a useful approach to link projects (at the micro level)
to the broader context of regional development programs and
national goals (ie. the macro level).

• LFA is essentially used as a tool to clarify cause-effect

relationships and to clarify the logical link between
– project inputs and objectives;
– project activities and outputs;
– broader purposes; and
– the ultimate goals a project could serve.
• LFA is therefore a systematic planning process based on
logical deductions.
 Features of LFA
– Needs Stakeholder involvement,
– needs-based approach,
– logical intervention approach,
– framework for assessing relevance,
– feasibility and sustainability,
– results-oriented – not activity driven,
– logically sets objectives and their causal relationships,
– shows whether objectives have been achieved:
– Indicators (for M&E),
– describes external factors that influence the project’s
success: assumptions and risks.
 Main steps in LFA

• The LFA has the following steps:

• Stakeholder Analysis,
• SWOT Analysis,
• Problem Tree Analysis,
• Objective Tree Analysis,
• Logical Framework Matrix and
• Monitoring and Evaluation.
• There are two Main Stages of Logical Framework Approach:
1. Analysis stage which includes
1. Preparatory Analysis
2. Stakeholder Analysis
3. Problem Analysis
4. Analysis of Objectives
5. Analysis of Strategies/Alternatives and

2. Planning stage
– consists of a matrix with four columns and four (or more)
rows, summarizing the key elements of a project
1. Stakeholder Analysis
• Stakeholder is any individuals, group or organization,
community, with an interest in the outcome of a
program/project.

• Purpose in Stackholder analysis:

– To identify:
• The needs and interest of stakeholders
• The organizations, groups that should be encouraged to participate
in different stages of the project;
• Potential risks that could put at risk program;
• Opportunities in implementing a program;
• To assess the performance and capacity of the participating units,
divisions of organization.
• Each participating unit has to undertake SWOT analysis
Table 2. Stakeholder Analysis Matrix

Stakehold Key Importance to Influence on Participatio

ers Interests Project project n

Primary

Secondar
y
 Example
Interest
Level of Engagement
Stakeholder in Role in the Project
Influence Strategy
Project
Continuous
Farmers / Adopt and implement
High Medium consultation and
Beneficiaries project practices
training

Local Government Provide policy support Regular meetings and

High High
(Woreda/Kebele) and coordination reporting

Donors / Funding Provide financial Progress reports and

High High
Partners resources transparency

Implementing Plan and manage project Strong coordination

High High
Organization implementation and monitoring

Provide technical Periodic technical

Technical Experts Medium Medium
guidance support
Cooperatives / Support market linkage Partnership and
Medium Medium
Private Sector and supply chain collaboration
2. SWOT Analysis and Project Sustainability
• For inclusion in logical framework analysis or more generally as
part of project identification and formulation factors affecting
project sustainability should be identified.

• A project can be said to be sustainable when it continues to deliver

benefits to the project beneficiaries for an extended period after the
main part of the external assistance has been completed

• SWOT analysis is a tool for institutional appraisal and a brainstorming

exercise in which the representatives of the organization participate fully.
• SWOT stands for:
– Strengths - the positive internal attributes of the organisation;
– Weaknesses - the negative internal attributes of the organisation;

– Opportunities - external factors which could improve the

organisation’s prospects; and
– Threats - external factors which could undermine the
organisation’s prospects
3. Log frame, Logical Framework Analysis/Approach,
LFA is
 4x4 matrix
 Ensures clear statement of objectives (distinction between
purpose and objectives)
 Introduces indicators of progress
 Focuses attention on the assumptions and risks involved

• Key Features of the Logical Frame Matrix (LFM)

– It is a participatory Planning, Monitoring & Evaluation tool
whose power depends on the degree to which it incorporates the
full range of views of intended beneficiaries and others who
have a stake in the program design.
– It is a tool for summarizing the key features of a program and
is best used to help program designers and stakeholders.
Features cont’…
 It is Objectively Verifiable Indicators:
 Cost-effective and stated independently from other levels.
 Indicators should make clear how the target group will benefit
from the realization of outputs.

 Indicators should be specific in terms of:

– Quality (what?)
– Quantity (how much?)
– Time (when, how long?)
– Target Group (who?)
– Place (where?)
Features cont’…
• The main output of the LFA is the log frame matrix.
• The LFM is used to present information about project objectives,
outputs and activities in a systematic and logical way.
• The basic LFM contains 16 cells organized into 4 columns and 4
rows, as indicated in the table:
• The four main components of a Logical Framework Matrix are as follows
Table 3: The Logical Framework Matrix

Objectives & Means of

Indicators Assumptions
activities verification
Goal (Impact)
Purpose/ (Outcome
Outputs
Activities
Example of Logical Framework Matrix
Intervention Objectively Verifiable Means of
Assumptions
Logic Indicators (OVI) Verification (MOV)

• Improved livelihoods of • Household income

• Stable market
Goal smallholder coffee farmers surveys, project
demand for coffee
in the project area evaluation reports

• Increased sustainable • Coffee yield • Farmers adopt

Purpose
coffee production and farm increased by 20% recommended
(Outcome) productivity within 3 years practices

1. Farmers trained in agro-

• Training reports, • Farmers actively
ecological practices
Outputs 2. Shade trees and compost
farm monitoring participate in
records training
systems established

• Conduct farmer training, • Adequate project

establish nurseries, provide • Project reports, field funding and
Activities technical support, monitor visit records technical support
farm practices available
 4. Problem Tree Analysis
 Purpose: to identify major problems and their main causal
relationships.
 Output: problem tree with cause and effects

Steps in Undertaking Problem Tree

1. Identify the major problems that the project will address. State
problems in negative manner.
2. Group problems by similarity of concerns.
3. Develop the problem tree:
a) Select a focal problem from the list and relate other problems to the
focal problem.
b) If the problem is a cause of the focal problem it is placed below the
focal problem
c) If the problem is an effect of the focal problem is goes above
 Problem analysis (Developing a problem tree):

• This is a methodological step which enables us to analyze:

– an existing problem situation to identify the problems and
put them into order and to highlight the cause-and-effect
relationships in a diagram (problem tree).

• It is of major importance with regard to project planning,

since it strongly influences the design of a possible
intervention(s).

• It is the basis and the justification for the project design.

Figure 1. Problem Tree
 Problem analysis
• The problem analysis includes:
 verification of the subject of analysis;

 identification of problems related to the subject;

make and inventory of all problems perceived by all
participants in the workshop;

 establishment of a cause-effect hierarchy between the

problems;

 Visualization of the cause-effect relations in a diagram

• It is important that all participants get the chance to express the
problems they experience.
• After discussion and clarification by the ‘problem owner’ all problems
should be respected
• After a common understanding of all problems is reached, the analysis is
presented in the form of a diagram, or a problem tree.
• A problem is never an isolated negative perceived situation, but relates
to other problems.
• In the problem tree the relations and hierarchy among all identified
problems is expressed.
• Each stated problem is preceded by the problem(s) which cause(s) it,
and followed by the problem it causes itself.
Cont’…
Example
• Suppose there is a workshop its subject is food security, the
possible problems mentioned in relation to this subject are:
 Food production on hills decreasing
 Ethnic clashes in neighboring districts
 Food shortages
 High incidence of malnutrition
 Canals are blocked
 Rice production in low lands decreasing
 Poor maintenance of irrigation facilities
 Dikes are degraded
 Soil fertility on hill slopes is decreasing
 Soil erosion on hill slopes
 Irregular supply of inputs for rice production
 High immigration rates
 Irrigation water does not reach fields in desired quantity
Practical Examples for Problem tree
High incidence of
malnutrition

Food shortage

Rice production in low lands Effect

Food production on High immigration
decreasing hills decreasing rates

Irrigation water does Irregular supply of Soil fertility on hill Ethnic clashes in
not reach field in inputs for rice slopes is decreasing Neighboring districts
desired quantity production

Cause
Canals are Dikes are Soil erosion on hill
blocked degraded slopes

Poor maintenance system

for irrigation facilities
 5. Objectives analysis:
– Transforming the problem tree into an objectives tree
by restating the problems as objectives.
– Problem statement converted in to positive statements.
– Top of the tree is the end that is desired.
– Lower levels are the means to achieving the end.

• The objective tree

– This is a methodological step which enables us to describe
the future situation which will be achieved when the
problems are solved;
– To identify the objectives and pinpoint their position in the
hierarchy
Objective Tree Cont’…
• Strategy Analysis (i):
– The aim of strategy analysis is division of the objectives tree into more
consistent smaller sub-units that may, compose the core for a project.
– Each of the sub-units of the objective tree can represent an alternative
strategy for the future project.
– The project objectives set the framework for the strategy of the project.
• Strategy Analysis (ii):
– Criteria for selection of the project strategy:
1. Relevance- the strategy corresponds to the needs of the stakeholders.
2. Effectiveness- the lower level objectives of the strategy will contribute
to achievement of the project purpose
3. Efficiency- cost-effectiveness of the strategy in transforming the means
into results.
4. Consistence with development policies
5. Sustainability of the project
6. Assumptions and risks
 Setting objectives
• After the problem analysis follows the analysis of objectives.
• This analysis includes:
– the translation of the negative situations in the problem tree into
a realized positive state (the objectives) for example, 'low rice
production' is converted into 'improved rice production’;
– verification of the hierarchy of objectives;

– Visualization of means-end relationships in a diagram

• Also in this step all stakeholders are involved.

– building consensus amongst the stakeholders.
– It might also be necessary to reformulate some of the problems.
Objective Tree
6. The planning phase: Completing the log frame
matrix
 When we have analysed the situation, our next step is to plan the
intervention.
 The planning phase aims at setting up a logical framework (log frame), in the
form of a summary matrix showing four vertical columns and four
horizontal ones:

Indicators Evidence Assumptions

Goal
Purpose
Outputs
Activities
Table 4. log frame;
• The logframe matrix summarizes the intervention in one (full)
page as follows:
– WHAT IS THE GOAL of the (project) intervention being carried out?
– WHAT IS THE PURPOSE of the (project) intervention?

– HOW does the intervention contribute to this objective(intermediate

results)?
– WHAT WILL the intervention DO (activities)?

– WHICH crucially important external factors will determine the

success, or failure, of the intervention (assumptions)?
– WHERE can we find the data needed to administer, monitor and
evaluate the intervention (sources of verification)?

– WHAT resources – and their cost – are involved in the intervention?

• Column one shows the (project) INTERVENTION LOGIC (IL)
which follows from the objectives tree.
 The goal: The future state at a high level, to which several
interventions will contribute.

 The purpose (or objective): The future state targeted by the project
intervention itself.

 The intermediate results (or outputs): The future intermediate

states or outputs to be brought about by the intervention and which
together aim at achieving the purpose. The (project) intervention
leader is responsible for achieving intermediate results.

 The activities: The work which must be carried out as part of the
intervention in order to achieve the intermediate result. The
intervention leader is responsible for carrying out and managing
these activities.
Column two shows the objectively verifiable indicators

– These describe the goal, the purpose and the intermediate

results in operational terms,
• i.e. in terms of quality, quantity, place and time.

• Indicators describe “milestones” of progress and enables

detailed follow-up and monitoring.

• This column shows the RESOURCES needed to carry out

the planned activities.
Column three shows the sources of verification.

• It is the process of ensuring the procedures of accomplishment …..

– These indicate where and in what form information may be obtained in order to
verify progress towards achieving the goal, the purpose and the intermediate
results.

– This column also includes the COST of the resources needed to carry out the
activities.
• Column four shows ASSUMPTIONS:
 External factors over which the intervention has no direct control
but which are nevertheless important with a view of achieving the
intermediate results, the purpose and the goal.

 The intervention leader is not responsible for these assumptions

but must bear them in mind, monitor them closely, take them into
account and if possible, exert some influence over them.
 The Advantages of LFA as a Planning Tool
 It tries to make the project appraisal transparent

 It is understandable to non-scientists.
 The logframe, therefore, can be used as a tool to clarify
tradeoffs, and thus, to ameliorate/upgrade the decision-
making process; and

 It is flexible with regard to information and skill requirements.

 It can incorporate social benefit – cost analysis, use input-
output tables, and partial models.

 But it can also be used with rudimentary information skills,

albe it of the cost of more hypothesis and uncertainties.
A log frame enables planners to:
 Set clear objectives.
 Define indicators of success:
 Performance standards.
 Incorporate change over time.

 Clarify logical linkages in the plan.

 Define critical assumptions underlying the project.
 Identify key activity groups.
 Identify means of verifying project accomplishments.
 Define resources required for implementation.
 Set up a need-based monitoring and evaluation system.