1. Lesson 5: Relevance Macerata, 6 th December Alessandro Valenza, Director, t33 srl

2. Agenda  What does relevance mean?  Assessing the needs  Context Indicator  The SWOT and PEST analysis

3. Utility / Relevance: Definition The term RELEVANCE, in the context of an evaluation, refers to the appropriateness of the explicit objectives of the program in relation to the socio-economic problems it is supposed to address. In ex ante evaluation, questions of relevance are the most important because the focus is on choosing the best strategy or justifying the one proposed. (European Commission – DG REGIO EVALSED GUIDE) UTILITY is used in ex post evaluation connecting the real impact with the social needs.

4. Utility and Relevance In relation to the projectRelated Evaluation Questions To what extent are the programme objectives justified in relation to the needs? Can their raison d'être still be proved? Do they correspond to local, national, international priorities? Are the expected or unexpected effects globally satisfactory from the point of view of direct or indirect beneficiaries? (Source Evalsed)

5. The Utility / Relevance Evaluation Process Identify the theory change Collecting context information Setting the correct IndicatorsSWOT analysis Assessing the needs and objectives

6. Collecting Information Qualitative Interviews to project actors (Donors, Policy Owner, Control body, Implementing Body) Workshop / Focus group with the stakeholders Interview with Sector experts (Accademics, researchers, etc.) Quantitative National / regional statistics Data from the project Data and Information from previous studies (literature review)

7. Context Indicator “Simple” NatureEconomic Indicator DYNAMIC Growth in Export (%) 2007- 2008 Growth level of GDP over 2006-2007 (%) STATIC Income level for GDP per capita ( STATIC) “Comparable” Sector - Area (eg. Regional/ National) Average / Median - Maps

8. Context information - Context Map 1: Life expectancy at birth, 2009

9. Thematic - Research and development Map 5: Total intramural R&D expenditure, 2009 Research and development expenditures are key factors both for gaining competitiveness on a global scale and for overcoming the current economic recession. R&D expenditure of 3% of the GDP is one of the five headline targets in the Europe 2020 Strategy (Map 5). Total intramural R&D expenditures in Umbria are up to 1% of the GDP. Such value is far from the European target of 3%. The proposed regulations for the next funding period suggest “strengthening research, technological development and innovation” as one possible thematic objective.

10. Analytical tools: PEST PEST analysis is a tool from business science. It is a useful tool for understanding the general feature of the Context. PEST is an acronym for Political, Economic, Social and Technological factors which provide a framework for reviewing a situation, or a strategy. It is very simple, and is a good subject for work group session or brainstorming meeting. PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis

11. PEST MATRIX CRITERIA political ecological/environmental issues current legislation home market future legislation international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initiatives home market lobbying/pressure groups international pressure groups wars and conflicts economic home economy situation home economy trends overseas economies and trends general taxation issues taxation specific to product/services seasonality/weather issues market and trade cycles specific industry factors market routes and distribution trends customer/end-user drivers interest and exchange rates international trade/monetary issues social lifestyle trends demographics consumer attitudes and opinions media views law changes affecting social factors brand, company, technology image consumer buying patterns fashion and role models major events and influences buying access and trends ethnic/religious factors advertising and publicity ethical issues technological competing technology development research funding associated/dependent technologies replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communications consumer buying mechanisms/technology technology legislation innovation potential technology access, licencing, patents intellectual property issues global communications

12. Analytical tools: SWOT SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats. A SWOT analysis is a subjective assessment of data which is organized by the SWOT format into a logical order that helps understanding, presentation, discussion and decision-making. The four dimensions are a useful extension of a basic two heading list of pro's and con‘ Strengths and Weaknesses are internal factors, whereas Opportunities and Threats might be:  Obstacles or Advantages for strengths and weaknesses coming from external factors  The evolution in the near future

13. SWOT Analysis NOWStrengthsWeaknesses IN THE FUTURE Opportunities (external driving forces empowering the strengths ) Threats (external obstacles)

14. PEST AND SWOT COMBINATION PEST is useful before SWOT - not generally vice-versa - PEST definitely helps to identify SWOT factors. PEST assesses more generally the global situation. SWOT is an assessment of the more specific sector / territory or policy/ project / programme.

15. Practical example (1) Assessment the relevance of the issues: PEST PEST Analysis factors Importance / Impact/ Time frame Political Economical Social Technological Relative Importance: - Critical - Important - Un-important - Unknown Impact Very positive Positive Medium Negative Very negative Time frame (short / long term)

16. SWOT SWOTPESTStrengths Here you have to locate the items that in the PEST Are short term important / critical Positive/ very positive Weaknesses Here you have to locate the items that in the PEST Are short term important / critical Negative / Very negative Opportunities Here you have to locate the items that in the PEST Are long term important / critical Positive/ very positive Threats Here you have to locate the items that in the PEST Are Long term important / critical Negative / Very negative POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL

17. FROM SWOT TO NEEDS SWTO Vantaggi comparati Debolezze strutturali COMPARATIVE ADVANTAGE STRUCTURAL GAPS

18. Compiti del valutatore:Verificare la “consistency” del’analisi bisogni STTO Potenziali di soluzione Ostacoli – colli di bottiglia Obstacles (needs) Potential for solutions

19. See you www.t33.it a.valenza@t33.it