HOW TO PREPARE A DEVELOPMENT PROJECT

TABLE OF CONTENTS
• Necessity of Systematic Planning
• DMF Introduction
• Stakeholder Analysis
• Problem Analysis
• Objectives Analysis
• Alternatives Analysis
• Design of DMF
 NECESSITY OF SYSTEMATIC PLANNING IN
DEVELOPMENT INTERVENTION
• A development intervention will affect the lives of people in a multitude ways,
irrespective of its sectoral focus, level of interventions, or sources of funding.
• To achieve desired results, systematic information gathering, conceptual analysis,
and the involvement of stakeholders are imperative.
• A logical systematic process is needed to analyze, conceptualize, and design a
development intervention that builds on beneficiary participation and country
ownership and delivers desired results.

 Inadequate Planning is one of the main reasons that an intervention fails.

DESIGN AND MONITORING FRAMEWORK (DMF)
• Logical framework approach (logframe): a methodology used for designing,
monitoring, and evaluating international development projects; widely used
by bilateral and multilateral development agencies
• A results-based tool for analyzing, conceptualizing, designing, implementing,
monitoring, and evaluating projects
• Structures the project planning process and helps communicate essential
information about the project to stakeholders in an efficient, easy-to-read
format
• Steps of designing a DMF, including: stakeholder analysis, problem and
objectives analysis, and analysis of alternatives
• It can be applied to analysis and planning of country programs, sector
strategies, program, and project level interventions
DMF: WHOLE PROCESS
Stakeholder Problem
Analysis Analysis

Objectives Alternatives
Analysis Analysis

Design
 DMF ANSWERS FOLLOWING QUESTIONS
• Why do we do this project in the first place
(impact)?
• What is the project going to accomplish (outcome)?
• What is the scope of the project (outputs)?
• What key activities need to be carried out?
• What resources are required (inputs)?
• What are the risks that could affect the success of
the project?
• What are the fundamental assumptions underlying
the project design?
• How do we measure (performance indicators) and
verify (data sources) that we have been successful?
STAKEHOLDER ANALYSIS
 Plays an important role in
identifying the
development problem

• Helps clarify which people and organizations are directly or indirectly

involved in or affected
• Helps identify which groups are supportive or may oppose the project
and subsequently obstruct project implementation
• Be a dynamic process and should be refined throughout the project
cycle
CASE STUDY: PUBLIC TRANSPORT IN ARUSHA
STAKEHOLDER ANALYSIS: CASE STUDY

Tips for Stakeholder Analysis:

 Comprise a series of focus-group meetings and

workshops.
 Define group categories narrowly or broadly,
depending on the situation.
 Make sure to have all fundamental information
of the key stakeholders.
 Perform detailed analysis of the key
stakeholders.
 Keep stakeholder analyses updated during
project implementation because this is a vital
source of information.
PROBLEM ANALYSIS
Structure of a problem tree
• Analyze the existing situation
surrounding a given
development problem context,
• Identify the major related
problems and constraints
associated with the
development problem, and
• Visualize the cause-effect
relationship in a diagram—a
problem tree.
PROBLEM TREE: PUBLIC TRANSPORT
 A planning method
based on needs
and not a
mechanical
translation of
problems into
objectives.

 Dynamic process,
continuously
having room for
improvement.

 Actual project
planning to be
followed.
OBJECTIVE ANALYSIS
Structure of an objective tree
• Important for project
identification
• Describes the desired future
situation after the identified
problem is solved
• Identifies the means-end
relationship
• Objectives should be realistically
achievable.
OBJECTIVE TREE: PUBLIC TRANSPORT
 The quality of an objective
tree is largely dependent
on the quality of the
original problem tree.

 If the logic of the objective

tree is patchy, reexamine
the cause-effect links in
the problem tree.

 Feasibility of the
objectives may be
questioned. Questions
should be answered to the
extent possible prior to
finalizing the design.
ALTERNATIVE ANALYSIS
• Another tool which can Selection of Alternative Solutions
be used in project
identification and help
identify alternative means
of achieving the desired
situation or development
objective
• Should be conducted
early and can be
combined with the
objective analysis
ALTERNATIVE ANALYSIS
• There are always different ways to solve a problem or achieve
an objective. The key is to pick up the one that best matches
desired results with the constrained resources.
• Be mindful of the fact that a stakeholder always propose
solutions they prefer or are familiar with, but which may not be
desirable against other stakeholders’ criteria.
• The decision to pursue just one or a combination of results
chains through a single or a series of project(s) depends on
how closely they are dependent on each other for achieving
the desired outcome.
DESIGN AND MONITORING
FRAMEWORK
• Simple but powerful design and
management tool
• Help build consensus with
stakeholders and create
ownership of the proposed
project
• Organizes thinking and relates
activities to expected results
• Provides a structure for
monitoring and evaluation
where planned and actual
results can be compared
LINKAGES BETWEEN THE OBJECTIVES
TREE AND THE DMF
DMF: IMPACT
• Also termed goal or longer-term objective, refers to the
sectoral, sub-sectoral, or in some cases national objectives
• Wide in scope and influenced by many factors other than the
project itself
• The impact statement provides the link between the project
and broader sectoral or national objectives

• Case study: the transport system of Arusha functions well.

DMF: OUTCOME
• Describes what the project intends to accomplish at the
completion of the project; and makes it clear what
development problem the project will address.
• The starting point for preparing the DMF must be the outcome
statement.
• The phrasing of the outcome statement determine the nature
and scope of the outputs that will be necessary to achieve the
outcome.

• Case study: SBC provides safe and reliable public transport

services.
DMF: OUTPUTS
• Physical and/or tangible goods and/or services delivered by
the project and describe the scope of the project
• Must be necessary to achieve the outcome
• The means-ends relationship has to be clearly identified

• Case study:
(i) Bus fleet is well maintained; and
(ii) Drivers observe safety and traffic regulations.
DMF: ACTIVITIES
• The groups of tasks carried out using project inputs to produce
the desired outputs
• Represent the main steps in the process of transforming inputs
into outputs
• Shall be achievable with the available inputs
• Include completion dates and/or important milestones for
each activity
• The list of core activities forms the basis for preparing the
implementation schedule.
DMF: ACTIVITIES – CASE STUDY
Output 1: bus fleet is well
maintained.
1.1 Establish and follow the bus
maintenance schedule.
1.2 Establish and operate an
inventory control system.
1.3 Obtain preferential import license
for spare parts.
1.4 Procure spare parts.
1.5 Upgrade mechanical workshop.
1.6 Upgrade skills of bus mechanics.
Output 2: Drivers observe safety
and traffic regulations.
2.1 Introduce a national bus driver
license and examination system by
year 20**.
2.2 Establish bus safety and
operating regulations by year 20**.
2.3 Train and test bus drivers by
year 20**.
2.4 Introduce incentives for safe
driving by year 20**
DMF: INPUTS
• Main resources required to undertake the activities and to
produce the outputs, e.g. consulting services, personnel, civil
works, equipment, materials, and operational funds, etc.
• Inputs to be listed shall include at least:
 Inputs by financier and main cost categories in financial and/or physical
terms
 In-kind contributions from other stakeholders.

Case study:
 Bank: $15 million
 Government: $ 5 million
 Beneficiaries: personnel 200 person-months
DMF: PERFORMANCE
TARGETS/INDICATORS
• A target specifies quantity and time – how much and when
• An indicator outlines what will be measured
• Tips:
 If we can measure it, we can manage it.
 All indicators have to be measurable and therefore expressible in numeric
terms, in terms with quality, time, access, cost/price or customer
satisfaction.

• Critical attributes:
 SMART: specific, measurable, achievable, relevant, and time-bound
 CREAM: clear, relevant, economic, adequate, and monitorable
DMF: DATA SOURCES AND REPORTING
• Data sources show where information on the status of each
indicator can be obtained, who provides the information, and
how the information is collected, e.g. surveys.
• Reporting mechanisms state where the information is
documented.
• Tips:
 Try to use existing data sources and reporting mechanism, as it helps
institutionalize good information management practices.
 How much data gathering is sensible and worthwhile? If data collection is
not feasible due to constraints, it may be necessary to identify proxy
indicators instead.
DMF: ASSUMPTIONS AND RISKS
• Assumptions: positive
statements of conditions,
events, or actions that are
necessary to achieve the
results
• Risks: negative statements
of conditions, events, or
actions that would
adversely affect or make it
impossible to achieve the
intended results
DMF: LOGIC SEQUENCE
Assumptions and Risks:
• apply at all levels of the
project design
• Complete the cause-
effect logic of the DMF –
e.g. the completion of
activities will result in the
outputs only if certain
assumptions hold true and
the risks do not eventuate
DMF: CASE STUDY
Benefits of DMF:
• Strategic alignment from high-level
goals to project activities
• A shift in focus to results rather than
activities
• Clarity on work priorities to deliver
results
• Transparency in the measurement of
achievements
• Evidence of performance to aid
decision making
• An information base for learning
DMF: WHOLE PROCESS
Stakeholder Problem
Analysis Analysis

Objectives Alternatives
Analysis Analysis

Design
 DMF AND PROJECT MANAGEMENT CYCLE:
BASIC STEPS
• Identify results (outputs and outcome) and the causal relationships between them;

• Identify alignment with the broader sector- or country-level results (impact);

• Identify the external factors that could influence success or cause failure (risks);

• Select indicators to determine performance and decide on targets to be achieved;

• Implement activities to deliver outputs;

• Measure project performance (monitoring and evaluation);

• Report on results achievement and make project management decisions based on

evidence of performance; and

• Learn about success and failure, and integrate the lessons back into the project cycle.
 MAIN TAKE-AWAY
The DMF Communicates:
• How the project will achieve results by converting a series of inputs into a
defined set of outputs that are expected to achieve a desired
development result or outcome, and contribute to a broader sector or
subsector impact;
• Time-bound and quantifiable indicators and targets that allow the project
to be monitored throughout implementation and evaluated subsequently;
• Identified project risks that may adversely affect achievement of desired
results and appropriate mitigation measures; and
• Specific assumptions that must remain valid for the project to succeed.