Objective- and Strategic Analysis

Project Cycle Management-----

A short training course in project cycle management for subdivisions of MFAR in Sri Lanka

MFAR, ICEIDA and UNU-FTP

Icelandic International Development Agency (ICEIDA)

Iceland

United Nations University Fisheries Training Programme (UNU-FTP)

Iceland

Ministry of Fisheries and Aquatic Resources (DFAR)

Sri Lanka

Content

• The purpose of objective analysis• How to build a objective analysis using post

harvest losses case study• The purpose of strategy analysis• How to use objective analysis to assist

development of strategic analysis• The purpose of strategic analysis in formulating

the first column in the logical framework

Learning objectives

• After this lecture participants will understand:– the purpose of objective- and strategic analysis– how to formulate and build objective- and strategy

analysis using post harvest losses case study

Analysis of objectives

• The objectives tree ensures validity and completeness of the hierarchy of objectives (the means–end relationships)

• It might be necessary to revise statements or to add new objectives in case they seem to be relevant and necessary to achieve the objective at the next higher level

• Some problems cannot simply be reformulated, as they cannot be easily influenced (e.g. heavy rainfalls, insufficient budgets made available, etc.)

How to build a objective tree

Objective analysis for post harvest losses

Step 1

• Reformulate all negative situations of the problems analysis into positive situations that are– Desirable

– Realistically achievable

Quality loss in transportation

Quality loss in transportation

is reduced

Causes Means

Reformulate

Step 1

Building objective treeBuilding objective tree

Step 2

• Check the means-ends relationship to ensure validity and completeness of the hierarchy (cause-effect relationship are turned into means-ends linkages

Building objective tree II

Step 3

If necessary• Revise statements• Add new objectives if these seem to be relevant

and necessary to achieve the objective at the next higher level

• Delete objectives which do not seem suitable or necessary

Objective analysis for post harvest losses

Strategy Analysis

Strategy analysis

• The aim of strategy analysis is to divide 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

• Analysis the identified (potential) objectives in relation to a set of ‘feasibility’ criteria

• Selects an appropriate strategy for project implementation

• Decision is based on policy priorities, budget, human resources, urgency, social acceptability, etc

• Part of the objective tree is possibly not a part of the project but should be considered in the analysis of assumptions and risk

Strategy analysis

• During the process of stakeholder analysis, problem analysis and the identification of potential project objectives, views on the potential merits or difficulties associated with addressing problems in different ways will have been discussed

• These issues and options then need to be more fully scrutinized to help determine the likely scope of the project before more detailed design work is undertaken

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. CONSISTENT with policies

5. SUSTAINABILITY of the project

6. ASSUMPTIONS and RISKS

Selection of a project strategy

• Having selected a project strategy the different levels of objectives (immediate objective and development goal) can be identified, which will later on be transposed into the logical framework matrix

Some questions to be asked and answered

• Should all the identified problems and/or objectives be tackled, or a selected few?

• What are the positive opportunities that are most likely to bring out the desired results and promote sustainability of benefits?

• What is the combination of interventions that are most likely to bring about the desired results and promote sustainability of benefits?

EC Guidelines

Some questions to be asked and answered

• How is local ownership of the project best supported, including development of the capacity of local institutions?

• What are the likely capital and recurrent costs implications of different possible interventions, and what can realistically be afforded?

• What is the most cost effective option(s)?

EC Guidelines

Some questions to be asked and answered

• Which strategy will impact most positively on addressing the needs of the poor and other identified vulnerable groups?

• How can potential negative environmental impacts best be mitigated or avoided?

EC Guidelines

Analyzing strategic choices

• This analytical stage is in some respects the most difficult and challenging, as it involves synthesizing a significant amount of information then making a complex judgment about the best implementation strategy (or strategies) to pursue

• A number of compromises often have to be made to balance different stakeholder interests, political demands and practical constraints such as the likely resource availability

Strategy analysis

Strategy selection

• The selected strategy will then be used to help formulate the first column of the Logical Framework, particularly in helping to identify the project Overall Objective, Purpose and potential Results

References

• European Commission (2004). Project Cycle Management Guidelines. Downloaded 1st March from: http://ec.europa.eu/europeaid/qsm/documents/pcm_manual_2004_en.pdf