1. The Project Cycle Management
October 26-27,2017
Place branding and rural development

2. Our objectives
To understand the basics of funding mechanisms of the European Union
To learn the Project Cycle Management approach and its implications for project design
To learn how to use the logical framework matrix and the Gantt matrix

3. What is the EU?
“The European Union (EU) is a political and economic union of 28 member states that are located primarily in Europe. It has an area of 4,475,757 km2 (1,728,099 sq mi), and an estimated population of over 510 million. The EU has developed an internal single market through a standardised system of laws that apply in all member states. EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and regional development. Within the Schengen Area, passport controls have been abolished. A monetary union was established in 1999 and came into full force in 2002, and is composed of 19 EU member states which use the euro currency” (Wikipedia) Here a quick video on the basid of the European Union and its bodies

4. Understanding who does what

5. What is the European Commission?
The European Commission (EC) is an institution of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU. The Commission operates as a cabinet government, with 28 members of the Commission (informally known as "commissioners"). The EC is the Commission that currently holds executive powers over the European Union (it basically is the Government of the European Union). The EC implement policies through the directorates-general are branches of an administration dedicated to a specific field of expertise.

6. Directorates-General
Agriculture and Rural Development (AGRI)
Budget (BUDG)
Climate Action (CLIMA)
Communication (COMM)
Communications Networks, Content and Technology (CNECT)
Competition (COMP)
Economic and Financial Affairs (ECFIN)
Education and Culture (EAC)
Employment, Social Affairs and Inclusion (EMPL)
Energy (ENER)
Environment (ENV)
European Civil Protection and Humanitarian Aid Operations (ECHO)
Eurostat (ESTAT)
Financial Stability, Financial Services and Capital Markets Union (FISMA)
Health and Food Safety (SANTE)
Human Resources and Security (HR)
Informatics (DIGIT)
Internal Market, Industry, Entrepreneurship and SMEs (GROW)
International Cooperation and Development (DEVCO)
Interpretation (SCIC)
Joint Research Centre (JRC)
Justice and Consumers (JUST)
Maritime Affairs and Fisheries (MARE)
Migration and Home Affairs (HOME)
Mobility and Transport (MOVE)
Neighbourhood and Enlargement Negotiations (NEAR)
Regional and urban Policy (REGIO)
Research and Innovation (RTD)
Secretariat-General (SG)
Service for Foreign Policy Instruments (FPI)
Taxation and Customs Union (TAXUD)
Trade (TRADE)
Translation (DGT)

7. Why are we talking about this?
Understanding the relations and the tasks among the reference bodies and their function is necessary to understand what is behind the funding programme formulation.
It is crucial to understand the logical steps entailing the passage from policies to strategies (or plans), as these represents the basis for the formulation of the programmes, which are expressed by means of call for proposals, and which defines general and specific objectives required to the projects.

8. Your upcoming project work
In the frame of this course, you will be asked to design a project idea on the basis of a real call:
Supporting the Promotion and Development of Transnational Thematic Tourism Products Linked to Cultural and Creative Industries
In these two days we will understand the relation between a programme and a project, and we will learn the basics on how to organise information to draft a project outline

9. Funding mechanisms
To reach policy objectives, the EU uses two main types of financial instruments:
Indirect funds, it means funds managed by the EC and the member states authorities through a shared responsibility;
Direct funds, which are managed directly by the EC.
Examples of indirect funds:
Structural funds and investment funds, e.g. the European Regional Development Funds (ERDF); European Social Fund (ESF); Cohesion Fund (Italy is not a beneficiary of this); the European Maritime and Fisheries Fund (EMFF); European Agricultural Fund for Rural Development (EAFRD);
Examples of direct funds :
Thematic programmes, managed by the Directorates-general, instruments for external assistance (e.g. the European Neighbourhood and Partnership Instrument (ENPI) or the Pre-Accession Instrument (IPA))

10. Funding mechanisms

11. Thematic Programmes
Thematic programmes are funded by the direct budget of the European Union, managed and implemented directly by the Directorates-general. These programmes cover one programming period of the EU (seven years) and are implemented on the basis of work programmes, that can cover one or two years (as in Horizon 2020). Some thematic programmes are shared between more than one Directorate, however usually management is appointed only to one Directorate or to an Executive Agency.

12. From programmes to projects
A project always starts from a problem
Each of these phases entails a number of tasks!

13. What is a project?
You can find many definitions of PROJECT.
All of them however share some elements, namely objective, time, and resources:
A project is an action of a series of integrated actions aimed at achieving a specific objective over a fixed time and by means of defined resources.

14. What is the PCM?
Project cycle management (PCM) is the process of planning, organizing, coordinating, and controlling of a project effectively and efficiently throughout its phases, from planning through execution then completion and review to achieve pre-defined objectives or satisfying the project stakeholder by producing the right deliverable at the right time, cost and quality. It has been used since the Seventies particularly for ma- naging interventions for development cooperation (by USAid), then adopted by the OECD for the programming in member states. The EU has adopted the PCM for programming, imple- menting and evaluating the EU programmes around the Nineties, also publishing a manual that is freely available online (click on the image here at the right)

15. Project Cycle Management

16. Project Cycle Management
the situation at national and sector level is analysed to identify problems, constraints and opportunities which cooperation could address. The purpose is to identify the main objectives and sector priorities for co-operation, and thus to provide a relevant and feasible programming framework within which programmes and projects can be identified and prepared
identify the problems/situation that can be tackled to implement policies and perform feasibility of project ideas; prepare a Financing Proposal ; prepare a financing decision for a Programme of projects, or determine the scope of further work required during the formulation stage for individual projects.
Project design (detailing objectives, results, activities, time, resources)
Deliver the results, achieve the purpose(s) and contribute effectively to the overall objective of the project; manage the available resources efficiently; and monitor and report on progress.
Periodic – mid-term, Ex-ante
completion, ex-post (systems reviews),
ongoing and upon
Implementation + evaluation = learning process

17. The process in practices
You have studied the situation (programming) and you have clear in mind the elements that should be taken into account.
You have listed a number of «problems» that require intervention to improve the situation. You have decided which is the issue that you and your partners have to address (identification)
It’s time to design your intervention.

18. The project design How to design a project?
A few simple questions to start:
WHERE?
WHY?
WHO?
WHEN?
WHICH MEANS (RESOURCES)?

19. The Logical Framework Approach
The EC, as other agencies and bodies, suggests the logical framework approach as tool to support the process of project design. For external assistance, the EC requires the logframe matrix as document annexed to the application form.

20. Structure of the logical framework matrix
Intervention
Indicators
Source of verification
Hypothesis/
Conditions
logic
General
Objectives
Specific
Objective
Results
Activities
Pre-conditions

21. Example (this comes from DEVCO, former EuropeAid)

22. Structure of the logical framework matrix
Vertical logic
Identifies what the project aims to reach
Identifies relations means-goals
Specifies risks and uncertain elements
Horizontal logic
Specifies indicators to verify progresses
Identifies sources and means through which verification is possible
Focus on the vertical logic firstly

23. Necessary resources to carry out the activities
Intervention logic
Objectives at a higher level to which the project contributes (but that doesn’t reach)
Main objective of the project
Consequences of realised activities
Realised activities
General objective
Specific
objective
Results
Necessary resources to carry out the activities
Activities
Means

24. General objectives
Long term benefits – a project does not achieve these objectives, but contributes to their achievement. For reaching general objectives you need a number of projects (and programmes).
Explain why the project is important for society and for the addressed target group and citizens
From our point of view (project design), these correspond to the Programme objectives.

25. Specific objective
This is the project scope – the project is made to reach this objective and it is measured on this basis
Links with the programme objectives defining the long term benefits, but defines and achieves also short term benefits for the addressed target group
Generally, one project has one objective, to make clear the action.

26. Results Benefits of the target group through the project achievements
Direct result(s) of the project – both outputs and outcomes
Results are the proof that the project scope has been reached

27. Activities Actions that should be carried out to reach the objectives
Presented in a structured way in the matrix (grouped in work packages), and in a short way (mainly listed, while the detailed description is required in the application form)

28. Means and costs
Defines the resources needed to carry out the project (then to perform activities, achieve results, reach the project/specific objective, contribute to the overall objective)
It is a cell not in line with the first column, but sometimes it is not present (in this case, means and costs are listed to the Activities’ cell)

29. Hypothesis, preconditions, assumptions
External factors that could have a relevant role in the project feasibility and success
Conditions that could affect the project implementation
Conditions that could affect the sustainability of the project results (after the end of the project)

30. Have we understood? Let’s try to see if it works.
Our project is a travel (for leisure).
Which is the intervention logic?
General Objective: to relax and rest
Specific Objective: a trip to [a chosen destination]
Results?
Activities?
Costs?
Preconditions?

31. Vertical logic of the LFM
Intervention
Indicators
Sources of
verification
Hypothesis,
conditions
logic
General
objectives +
Specific
Objectives +
Results +
Activities
Preconditions

32. Vertical logic of the LFM explained
Intervention
Hypothesis
Conditions
logic
General
Objectives
If the project objective is achieved and the set hypothesis are true, the project contributes to the general objectives
If the results are achieved and the hypothesis are true, the project objectives is reached
If the activities are carried out the set hypothesis are true, results are achieved
If there are the preconditions, then the project can be realised
Specific
Objectives
Results
Activities
Preconditions

33. Have we understood?
Let’s try to add the preconditions and the hypothesis to our travel project.

34. Monitoring and evaluation
To keep our project implementation under control, we need to measure progresses and achievements – the two central columns of the project serve this
purpose

35. Indicators and sources of verification
«concrete» (measurable) description of results
Their definition implies that the project is relevant and feasible
Sources of verification
Provide tools and methods through which obtain information to verify indicators

36. Links between intervention logic and indicators
General
Objective
Impact
Indicators
Specific
Objective
Impact
Indicators
Outcome
Indicators
Results
Output
Indicators
Activities

37. What is an indicator?
An indicator is the “measure” of the project objectives.
Objectively Verifiable Indicators (which is the way in which the PCM Manual define indicators) describe the project’s objectives in operationally measurable terms – therefore in quantity, quality and time.

38. Example of indicator
Nature and quality of the indicator (e.g. students involved in training)
Quantity, dimension of the indicator (e.g.: min 100 students)
The target group (e.g. Erasmus students)
Place (e.g.: in Macerata/at UNIMC)
Time, moment in which the measurement is expected (e.g.: by December 2017; or 2 years after the project beginning; 2 years after the project ending, etc.)
Min 100 Erasmus students involved in training
activities at UNIMC by December 2017

39. How to define an indicator
SMART criteria
Specific  suitable to measure exactly what has to be measured
Measurable  able to measure the change
Available  obtainable with reasonable costs
Relevant  focused on the objectives
Time bound  available in time

40. Have we understood?
Take again our LFM of the «project travel» and set indicators

41. Examples of sources of verification
Surveys
Costs
Interviews to
beneficiaries
Statistics
Elaboration
General
Statistics
Management
Reports
Admin docs
Complexity

42. Have we understood?
We take again our LFM and we add our sources of verification.

43. Quality of the LFM The vertical logic is complete and convincing
Conditions and hypothesis are complete and realistic
Risks are acceptable
Indicators and sources of verification are reliable and accessible
The probability of success are sufficient
Benefits justify costs
There is nothing more that can be added

44. Tips on how to start

45. What have we missed?
We have missed the WHEN. The WHO is detailed in the description of the application form, for the WHEN we need to use another tool: the Gantt chart.
A Gantt chart is a type of bar chart that illustrates a project schedule.

46. A simple chart
Time (months)
Work package type

47. How does it appears

48. Application form – narrative and financial plan
From the LFM to the project submission
LFM
Application form – narrative and financial plan
Salaries
Allowances
Vehicle Op.
Office
Tel/Fax
Seeds
Fertilizer
Piano finanziario aa
bbb
ccc
ddd
fff
ggg
5000
5500
1250
1750
3750
4250
750
400
850
1100
2300
3100
Programma delle attività