Project Cycle Management

Project cycle management can best be introduced into an organisation if staff and decision-makers are convinced that an alternative to previous working practices is required in order to get better quality services.

Staff will be shown evaluations that clearly demonstrate the relationship between inadequate project preparation and the wasting of resources (time, funds, materials, etc.) during the implementation of a project. The insights gained from the evaluations can be transformed into concise guidelines – general or sector-specific – on how to manage the project cycle, from the identification to the evaluation and indicative programming phases.

The phases are programming, identification, formulation, financing, implementation and evaluation.

A good project proposal should demonstrate, within a limited number of pages (+- 10), that the proposed project is relevant to the beneficiaries and to society in general. It should also demonstrate that it is comprehensive and feasible, given prevailing circumstances (acceptable risks), and that it offers sufficient potential for benefits to be sustained after external support is withdrawn. The project design should be summarised in the form of a Logical Framework matrix.

A project cycle manager must ensure that the agreed procedures applicable to each phase are correctly followed. He or she initiates each phase (ToR) and evaluates or appraises compliance with the terms of reference using the document produced during each phase. For example, during the identification phase, the project concept is appraised in the light of the strategy/indicative programme. Terms of reference for the identification process are drawn up and the identification document or pre-feasibility study is evaluated before the formulation phase can be launched. See the overview of tasks of a project cycle manager in the chapter on Project Cycle Management.

A project manager is hired to ensure that the project is implemented in accordance with the ‘Plan of Operation’. He or she ensures that resources are mobilised on time and that progress is monitored and corrective action proposed where necessary.

Project Cycle Management (PCM) is a combination of concepts, techniques, instruments and practices that enable desk-officers and project cycle managers to guide different projects and programmes through the project cycle phases, on the basis of informed decisions.

The management software, for example, can be classified as follows:

• Management concepts: Assessment of the relevance, feasibility and sustainability of a concept by means of certain analytical processes.
• Management techniques: Skills that can be used to perform project cycle management tasks more efficiently or effectively. These include the assessment technique for project proposals and project planning by objectives.
• Management instruments: Aids or guidelines to support a particular task in project cycle management, e.g. the Basic Format and the format for Terms of Reference.
• Management practices: A set of procedures used during the life-cycle of a project to help those responsible for planning and implementation to make decisions, e.g. whether or not to increase beneficiary involvement. For more information consult the document entitled ‘PCM, a tool for Aid Effectiveness’.

A project manager runs the project by carrying out ‘activities’ that lead to ‘results’ during the implementation phase. The project cycle manager, however, ensures the proper management of each of the six phases of the project cycle by formulating terms of reference for each phase and by verifying the quality of the implementation at each phase.