Indicators, Baseline, and Performance

Targets in a Logical Framework

By
Misgina Asmelash (Ph.D.)
Asst. Prof. of Agricultural Economics and Management
misgie2008@yahoo.com

Sep 2022
Addis Ababa
Developing Indicators
 Indicators: quantitative or qualitative factors or variables that
provide simple and reliable means to reflect the changes
connected to an intervention.
 Measures the value of the change in units that are significant for
the management of the program and comparable to past and
future units & values
 Indicators are typically classified into two major groups;
 Final indicators measure outcomes of programs; e.g. poverty
(higher consumption per capita) and the impact on dimensions of
well-being (reduction of consumption poverty).
 Intermediate indicators measure inputs into a program (a
conditional cash-transfer or wage subsidy scheme) and the
outputs of the program (roads built, unemployed men, and
women hired).
Setting Objectives…
Indicator enable:
 Reducing a large amount of data down to its simplest form (e.g. %
of clients who tested after receiving pre-test counselling,
prevalence rate; stunt rate …)
 The objectives of using indicators are
• to set performance targets
• to assess progress
• to identify problems through an early warning system to allow
corrective action to be taken
 An indicator can be a… Number, Ratio, Percentage, Average, Rate,
Index
Setting Objectives…

Steps in Selecting Indicators

Step 1: Clarify the Results Statement

 Identify what needs to be measured

 Good indicators start with good results statements. Start with

the overall objective or goal and work backwards.

Step 2: Develop a List of Possible Indicators

 Brainstorm indicators at each level of results. Use: Internal
brainstorming (involvement)

 Consultation with references (experts, documents)

 Experience of other similar organizations

Setting Objectives…
Steps in Selecting Indicators

 Step 3: Assess Each Possible Indicator

1) Measurable (can be quantified & measured by some scale).

2) Practical (data can be collected on a timely basis & at reasonable cost)

3) Reliable (can be measured repeatedly with precision by different people)

4) Relevant-Attributable (the extent to which a result is caused by your activities).

5) Management Useful (project staff & audiences feel the information provided
by the measure is critical to decision making)

6) Direct (the indicator closely tracks the result it is intended to measure)

7) Sensitive (serves as an early warning of changing conditions)

8) Capable of being Disaggregated (data can be broken down by gender, age,

location, or other dimension where appropriate)
Setting Objectives…

Steps in Selecting Indicators

Step 4: Select the “Best” Indicators

 Based on your analysis, narrow the list to the final indicators that will be used in the
monitoring system

 They should be the optimum set that meets management needs at a reasonable
cost

 Limit the number of indicators used to track each objective or result to a few (two or
three)

 Remember your target audiences (information users)

Indicator Types
Setting Objectives…

Challenges when selecting indicators

 Feasibility of using certain indicators can be constrained by the

availability of data

 When selecting indicators;

• baseline data and comparative data to set targets for the indicators

 Several sets of criteria for the qualification of indicators:

• Specific, Measurable, Achievable, Realistic and Time-limited (SMART)
• Clear, Relevant, Economic, Adequate and Monitorable (CREAM)
• Eurostat (logic, relevance, possibility of setting a target, frequency of
data collection, appropriateness and possibility of estimating precision)
 Examples of Key Performance Indicators
1. Examples of Financial KPIs
• Growth in Revenue
• Net Profit Margin
• Gross Profit Margin
• Operational Cash Flow
• Current Accounts Receivables
• Inventory Turnover
2. Examples of Operational KPIs
• Order Fulfilment Time
• Time to Market
• Employee Satisfaction Rating
• Reflective activity #1: Operations project managers need to
track KPIs around efficiency, effectiveness and quality. How do
they set <Key Performance Indicators> of the project success?
- Measuring key objectives involves comparing performance
with vital elements of project objectives.
- For example, a delivery project goals/objectives would
include:
• Scope. This is the intended result of a project and what is
required to bring it to completion. ...
• Schedule. This is easy enough to measure and understand. ...
• Budget. Did you manage to deliver your project within budget?
• Team satisfaction. ...
• Customer satisfaction. ...
• Quality.
Baseline and Performance Target

Baseline
The achievement of planned results is at the heart of
Projects performance management system.
In order to understand where we, as project
managers, are going, we need to understand where
we have been.
Establishing quality baselines and setting ambitious,
yet achievable, targets are essential for the successful
management of foreign assistance programs.

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Baseline…
 Baseline: This is the measurement of the initial conditions
(appropriate indicators) before the start of a project/program,
and using baseline data is very common.
 E.g. recording your weight prior to a diet to monitor your
progress & later determine whether your diet made any
difference.
 Baseline data provides a historical point of reference to:
 Inform project planning, such as target setting, &
 Monitor & evaluate change for implementation & impact
assessment

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Baseline…
WHY ARE BASELINES IMPORTANT?
 Baselines help managers determine progress in achieving
outputs and outcomes.
 They also help identify the extent to which change has
happened at each level of result.
 Program managers should provide baseline and target values for
every indicator in the PMP.
 Lack of baseline data not only presents challenges for
management decision-making purposes, but also hinders
evaluation efforts. For example, it is generally not possible to
conduct a rigorous impact evaluation without solid baseline
data.
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 Baseline…
Four common scenarios provide the context for establishing baseline
data:
1. BASELINE IS ESTABLISHED If baseline data exist prior to the start of a
project or activity, additional data collected over the life of the project
must be collected in a consistent manner in order to facilitate
comparisons.
2. BASELINES MUST BE COLLECTED In cases where there are no existing data
with which to establish a baseline, its implementing partners will have to
collect it. Primary data collection can be expensive, particularly if data are
collected through a formal survey.
3. BASELINES ARE ESTABLISHED ON A ROLLING BASIS In some cases, it is
possible to collect baseline data on a progressing basis as implementation
proceeds.
4. BASELINE IS ZERO For some indicators, baselines will be zero.
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Performance Targets
 A Performance Target is the specific, planned level of a result
to be achieved within an explicit timeframe with a given level
of resources.
 Missions should set targets for the end of the development
objectives over a time period for their performance indicators
and may set targets for the interim years in between.
 Yearly targets are required for standard indicators that are
reported to PM in the annual performance reports.
 USAID guidance on setting performance targets indicates that
they should be ambitious, but achievable given inputs.

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Performance Targets
 Missions should be willing to be held accountable for
achieving their targets. On the other hand, targets that are set
too low are also not useful for management and reporting
purposes.
 For many indicators it is useful to establish annual targets as
well as an overall target and for some indicators it may be
appropriate to establish separate targets for men and women,
or to disaggregated them in other ways.
 While the value of targets in a performance management
system is well established, the mechanics of “how to” set
targets are less fully prescribed.

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Logical Framework Approach (LFA)

What the Logical Framework Approach (LFA)?

 It is an analytical, presentational and project management tool which

can help planners and managers to:

 Analyse the existing situation during project preparation;

 Establish a logical hierarchy of means by which objectives will be reached;

 Identify some of the potential risks;

 Establish how outputs and outcomes might best be monitored and

evaluated;

 Present a summary of the project in a standard format.„

Logical Framework Approach (LFA)

“It is an instrument for logical analysis and structured thinking in

project planning, which encompasses the different elements in a
process of change (problems, objectives, stakeholders, plan for
implementation)”.
Logical Framework Approach (LFA)
Logical Framework Approach (LFA)

Key Steps in the LFA…

 Establish the general scope and focus of the project.

 Agree on the specific planning framework, terminology and design process.

 Undertake a detailed situation analysis.

 Develop the project strategy, objectives hierarchy, implementation

arrangements and resources.

 Identify and analyse the assumptions and risks for the chosen strategies and
modify the project design if assumptions are incorrect or risks are too high.

 Develop the monitoring and evaluation framework.

Logical Framework Approach (LFA)

How to plan using LFA?

 Start by identifying the results
you would like to achieve:
 The impact in or goal for a
particular dev’t situation
 The lower level results you
need to achieve in order to
cause that impact
 The activities and resources
that are required.
 Clarify each level of the results
hierarchy by thinking upwards:
 What specific problem will this
address.
 What external factors need to
be considered at each level of
objectives to ensure successful
implementation?
Monitoring and Evaluation

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Basic Logic Model
Basic Logic Model
A logical structure for project monitoring
 Monitoring and Evaluation Framework

Monitoring tracks mainly the use of inputs (activities) and

outputs, but in some degree also tracks (intermediate) outcomes.

In contrast, evaluation takes place at specific moments, and

permits an assessment of a project’s progress over a longer
period of time.

Evaluation tracks changes and focuses more on the outcome and

impact level.

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Monitoring and Evaluation Framework

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Planning matrix for monitoring

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Planning matrix for monitoring: Enhanced capacity of electoral
management authority

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 How do you create a project monitoring and evaluation plan?

• Step 1: Identify Program Goals and Objectives. ...

• Step 2: Define Indicators. ...

• Step 3: Define Data Collection Methods and Timeline. ...

• Step 4: Identify M&E Roles and Responsibilities. ...

• Step 5: Create an Analysis Plan and Reporting Templates. ...

• Step 6: Plan for Dissemination and Donor Reporting (resource).

• Step 7: Risk assumption.

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Review Questions

1) List ten complementary roles that monitoring and evaluation can

play – five for monitoring and five for evaluation.

2) True or false?

a) Monitoring is useful for identifying problems early within the

progress of a project.

b) Impact assessment can be considered to be a type of

evaluation.

c) Evaluation can only be carried out at the mid-way point and

end of a project.
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Assignment #1: Develop planning matrix for monitoring and
evaluation of “Urban Productive Safety Net Programs in Addis
Abeba”. Your report should Involve all levels of project logic in the
process as indicated below (weight: 30%)

Planning Matrix for Monitoring: Enhanced Capacity of Medical Preparedness

and Response Plan of COVID-19 in Addia Abeba

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Reading

 The evaluation problem

 Experimental/Randomized Trials Design

 Quasi-experimental Design/Approach

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