1. PROJECT PLANNING: THE LOGICAL FRAMEWORK
APPROACH (LFA)
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Temesgen B. (PhD), AAU-School of
Commerce
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2. Temesgen B. (PhD), AAU-School of
Commerce
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RBM and Logical Framework Approach
(LFA)
• The LFA is an RBM tool used for systematic planning, implementing, monitoring,
and evaluating projects/ programmes.
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3. By using the LFA-method correctly the
project/program reaches;
RELEVANCE
FEASIBILITY
SUSTAINABILITY
COST EFFECIENCY
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Why LFA?
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Temesgen B. (PhD), AAU-School of
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4. The nine steps of an LFA
analysis- the planning process
1. Analysis of project´s Context
2. Analysis of Stakeholders
3. Problem Analysis/Situation Analysis
4. Objectives Analysis
5. Plan of Activities
6. Plan of Resources/Inputs
7. Indicators and Source of Verification
8. Risk Analysis and Risk Management
9. Analysis of Assumptions
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5. Step 1. Context Analysis
Background information
• Projects are part of a larger context - prior to start, collect
relevant background information on the sector and on the
relevant organizations to work with.
• Which environment will the project be situated in,
the country, the region and the sector?
• Analysis of Context made through a study and/or through
making a “SWOT” analysis
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Temesgen B. (PhD), AAU-School of
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6. SWOT analysis
A tool for auditing /identifying e.g. an
environment, agency, company etc:
• Strengths
• Weaknesses
• Opportunities
• Threats
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7. Step 2 :Stakeholder Analysis
People with different knowledge, different
background, different sex, different region
Listen and involve
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Temesgen B. (PhD), AAU-School of
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8. Cont’d....
• Stakeholders, those who are influenced by and exert an
influence on the project entity. Who will be influenced,
positively or negatively, by the project.
• Stakeholder analysis - mapping of stakeholders and their
respective roles, include gender, age, ethnic, regional and
aspects of experience!
• Which stakeholders should be involved in planning and /
or implementing the project – important to include a
broad group – people with different knowledge on the
sector!
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Temesgen B. (PhD), AAU-School of
Commerce
9. Cont’d...
Five main groups of stakeholders to involve:
Beneficiaries/Target group
Implementers
Financing agents
Decision makers
Experts
One stakeholder may belong to several groups. The stakeholders all have
important information to give to the future project group/ implementers.
They provide a relevant picture of the situation in order to find relevant,
feasible and sustainable solutions.
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Temesgen B. (PhD), AAU-School of
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10. Step 3: Problem Analysis
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How to involve stakeholders
and get an understanding of the situation
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Temesgen B. (PhD), AAU-School of
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Finding “the roots of the evil”
Which is the problem to be solved?
Who owns the problem?
One focal problem, focus!
Find the causes and effects to the focal problem
The causes of the problem shall be “tackled”
through activities within the framework of the
project in order to solve the problem in a
sustainable way
11. cont’d...
• Problem analysis is helping us finding “the roots of the evil”
• Three parts in a problem analysis;
The main problem to be solved, one focus
The causes, reasons to the focal problem
The effects of the focal problem
• Discuss who owns the problem?
• A problem analysis should always be made by the local
stakeholders, the owners of the problem.
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13. 07/24/25
EXAMPLE on a
PROBLEM TREE
High number of
bus accidents
Careless
busdrivers
Buses in
poor condition
Roads in
poor condition
People die and
get injured
Buses
are delayed
Disabled
people
High cost for
hospital care
Effekr
Bus company gets a
bad reputation
Stress
Tight
schedule
Bad traffic
situation
Too few drivers
and buses
Poor
maintenance
No maintenance
routines
Old buses Poor maintenace
Corruption
Weak
knowledge
on manintenace
Alcohol
abuse
Weak management capacity
at the bus company 13
Temesgen B. (PhD), AAU-School of
Commerce
15. Why a Problem Tree?
Objective Tree
Overall objectives
Project Objective
Expected results
Activities
Problem Tree
Effects
Focal problem
Causes
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17. 07/24/25
Objectives vs. Activities
There is a difference between objectives and activities.
Objectives should describe;
Which is the changed situation to acheive
What to acheive when the project is completed.
What the activities are aiming at
While, an activity is a mean to acheive the objective
Example
on an objective: Enhanced competence on trade facilitation
among ITP participants
Example
on an activity: Arrange a seminar on trade facilitation
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Temesgen B. (PhD), AAU-School of
Commerce
18. Cont’d...
Long-term: Overall Objectives, Development Objectives
Overall Objectives, Development Objectives: Often
Governmental level, long term perspective, vision e.g. social welfare, economic
growth... Time frame: Long term. Several different projects often aiming at the
same overall objectives. Sometimes also called goals.
goals.
Medium-term: Project Objective, Project Purpose
Project Objective, Project Purpose :
: The main
objective that the intervention/project should be able to achieve. Solution to
the focal problem. The very reason for implementing a project. Time frame:
Medium term (the length of the project). Purpose should be “SMART
(Specific, Measurable, Approved, Realistic and Time-Bound”)
Short-term: Expected results, immediate objectives
Expected results, immediate objectives: The results
describe the services to be produced by the project. What services do the
beneficiary get access to? Short term objectives. Directly after the project
activities. Time frame: After the activities have been implemented. Results
should be “SMART”.
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Temesgen B. (PhD), AAU-School of
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19. LFA Overall Objectives...................
• Long-term social and or economic benefits, to
which the project will contribute
• Not achieved by the project on its own, several
projects contribute
• States the positive state for the beneficiaries
and for the society
• Examples;
- Improved social well fare
- Economic growth in region X
- Food supply stabilised
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Commerce
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20. LFA Project Purpose..........
• The main reason for having a project ! WHY a project
• Connection to the “focal” problem
• Sets out the benefits, which the beneficiaries derive from the
project
• Implementing agencies should enable for the beneficiaries to
achieve the benefits by delivering the required services/results
• Examples;
- Improved labour productivity for crop X achieved..,
- Health hazards (for certain diseases) of the
population in area X reduced to a certain standard
- River water quality improved etc...
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Commerce
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21. LFA Results.........................
• Connected to the causes of the focal problem
• Sets out the services which the beneficiaries will
receive from the implementing agency through the
project
• Examples;
- Farmers able to apply more efficient maize
production techniques,
- Adequate mother and child care provided to the
people in region X,
- Improved transport between A and B
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22. 07/24/25
Different terminology for objectives used by
different projects
and donors, choose what’s best for you
Objectives
Think of the
time – line,
the logic
DFID
(department of
International
development)
(Great Britain)
EU RBM
(Results-
Based
Management)
World Bank
Long-term
objectives
Goals Overall
Objectives
Impact Impacts/
Development
Objectives
Medium-term
objective
Project
Purpose
Project
Objective
Outcome Project
Outcome
Short-term
Objectives
Immediate
objectives
Expected
Results
Outputs Intermediate
Outcomes
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Temesgen B. (PhD), AAU-School of
Commerce
23. Step 5. Activities/ Plan of Operation/
Plan of Activities
• Activities are means to achieve the objectives, not
the objectives. Activities tackle the causes to the
focal problem
• Activities should be clearly specified and
expressed as an action. They explain how to
achieve the expected results of the project (the
short term objectives).
• Activities should be connected to the expected
results , the short-term objectives
(Expected result 1: activities 1:1,1:2, 1:3… etc.)
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Temesgen B. (PhD), AAU-School of
Commerce
24. Cont’d...
Activities should always be connected to the expected results/short-term
objectives e.g.
Result 1: Improved knowledge among decision-makers at ministerial level on
efficient trade facilitation measures
Activity: 1:1 Make a need assessment among staff in Ministries and relevant
authorities
1:2 Develop a training program, a curricula, and training material for trainings
1:3 Print training material
1:4 Train 15 teachers/trainers (ToT )
1:5 Implement the training program for 25 persons, a pilot training
1:6 Follow-up of the training program, review evaluations, if needed make
changes in the training curricula
1:7 Complete the training program
1:8 Evaluation and dissemination of the results of the trainings
1:9 Integrate the program in to existing services
Specified plans of activities make it easier to implement, to monitor
and much easier to make a realistic planning of resources
(budget, manning schedule and time schedule etc.) .
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Temesgen B. (PhD), AAU-School of
Commerce
25. Step 6. Inputs/Resource
planning
• Experts and personnel (human resource management, project group,
reference group, which knowledge & capacity is needed?)
• Financing (loans, grants, funds, cost sharing, who is financing what?
Future long term financing?)
• Equipment, equipment should be adapted to local conditions
(Are spare parts and maintenance available?)
• Premises (office, training facilities, is there a contract for the premises?)
• Time (make a realistic time schedule, e.g. GANTT-schedule)
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Planning on: Staff , Budget , Equipment , Time
26. .......Indicators Measure achievements
• Are the objectives achieved? Any positive results?
• The process of setting up indicators shows whether
the objectives are vague and unrealistic.
• Indicators should be set for all expected results and for the
project purpose (short-term objectives and medium-term
objective).
• Indicators should state the quantity and the quality
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Step 7 : Indicators & Sources of verifications
27. Examples of indicators, quantity and/or quality
Indicators for a management training e.g.:
1. Number of persons participating in the training
(SoV: List of participation) (quantity)
2. Number of occasions when knowledge among the trained personnel
has been used
(Source of verification (SoV): Number, interviews) (quality)
3. Number of persons passing the test after the training
(SoV: The test results from the training)
4. Examples of changes made in the organization after the training
(SoV: Organizational study )
5. Staff recognition/comments 6 months after the management
training ( SoV: Interviewing staff on management at the authority)
Indicator for service: e.g. Number of satisfied customers (SoV:
statistics, interviews %) (measures quality).
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Temesgen B. (PhD), AAU-School of
Commerce
28. ............... Measure achievements
• A baseline study: input data is needed, in order to be able to
measure the final results, to be able to compare.
(E.g. how many custom clearances per year when we start our
project)
• Each indicator should be connected to a Source of Verification
(SoV), answering the questions how the information on the
indicator should be collected, when/how it will be collected
(e.g. SoVs interviews, exams, at the statistical office,
questionnaires etc.)
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Temesgen B. (PhD), AAU-School of
Commerce
29. Cont’d...
• Analysis of factors which may influence the
implementation of the project and hence the
achievement of the objectives.
• Internal and External risks
• Make a risk management plan – mitigation of
risks, new activities.
• Killing factors? Important threats, threatening the whole
implementation e.g. the political situation, corruption etc.
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Temesgen B. (PhD), AAU-School of
Commerce
Step 8 : Risk Analysis and Risk Management
30. Step 9: Analysis of Assumptions
• Assumptions describe situations and
conditions which are necessary for project
success, problems needed to be solved,
but which are largely beyond the control of
the project group to solve (due to the
resources of the project group, their mandate
and knowledge etc.)
• An assumption, is a problem the project
group realistically can assume that other
projects/ authorities/actors will handle
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Temesgen B. (PhD), AAU-School of
Commerce
31. Cont’d...
• The project in the perspective of society/
institutional situation in a country (laws, political
commitments, financing)
• Assumptions describe situations and conditions,
which are necessary for project success, but which
are largely beyond the control of the project
management
• Assumptions on each level of objective (results,
project purpose and overall objectives)
Examples: Delivery in time of equipment, at least five
of the trained personnel stays within the company
for 5 more years, prevailed stable political situation
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Commerce
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33. Why different steps in LFA
in the planning procedure?
• Relevance Step 1 – 4 The Context, the Stakeholder-, the
Problem- and the Objectives analysis. Logical links between problems and
solutions? Ensure that the problems of the target group are solved by
the project.
• Feasible Step 5 – 7 Plan of Activities, Resources/inputs and
Indicators. Are the activities and resources sufficient to achieve the
objectives? (Resources: Personnel, time, funding, equipment)
• Sustainable Step 8 – 9 Risk analysis, Risk Management and
Analysis of the Assumptions. If the project is sustainable, will the effects
of the project remain without external assistance?
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Narrative
Summary
Verifiable
Indicators
(OVI)
Means of
Verification
(MOV)
Important
Assumptions
GOAL
PURPOSE
OUTPUTS
ACTIVITIES Inputs
LOGICAL FRAMEWORK MATRIX
35. 35
The Logical Framework Matrix
Objectives &
activities
Purpose/
(Outcome)
Goal
(Impact)
Outputs
Activities
Means
Indicators
Means of
verification
Assumptions
What needs to
be fulfilled
before activities
can start
Pre-conditions
Cost
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Temesgen B. (PhD), AAU-School of
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36. Summary of the logical framework
• Goal
– The higher level objective towards which the project is expected
to contribute (mention target groups)
• Purpose
– The effect which is expected to be achieved as the result of the
project.
• Outputs
– The results that the project management should be able to
guarantee (mention target groups)
• Activities
– The activities that have to be undertaken by the project in order
to produce outputs.
Intervention Logic
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Temesgen B. (PhD), AAU-School of
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37. Cause-effect relationship among objectives at
several levels
Inputs
Activities
Outputs
Purpose
Goal
under full control of
project management
beyond control of
project management
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Temesgen B. (PhD), AAU-School of
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42. Monitoring and Evaluation
Monitoring: the systematic and continuous assessment of
progress over time by collecting and analysing information, and
using that information to improve the project’s work. The periodic
The periodic
measurement of progress of a program/project . Monitoring focus on:
measurement of progress of a program/project . Monitoring focus on:
Project/program implementation process, tracking progress towards a
Project/program implementation process, tracking progress towards a
predetermined set of objectives, by using indicators and sources of
predetermined set of objectives, by using indicators and sources of
verifications.
verifications.
Evaluation: the assessment at one point in time of the impact of
a project and the extent to which objectives have been achieved.
Both are tools for identifying strengths and weaknesses and for
making good and timely decisions to reach progress.
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Commerce
43. Evaluation Criteria
Relevance: The appropriateness of the project objectives to the problems
it addresses and to the physical and policy environment.
Efficiency: Results acheived at reasonable cost i.e how well inputs/means
have been converted into results in terms of quality, quantity and time?
Effectiveness: An assessment of the contribution made by the results to
achievement of the project purpose and how assumptions have affected
project achievements.
Impact:The effect of the project on its wider environment. Its contribution
to the objectives for the sector (overall objectives)
Sustainability: Likelihood of the benefits produced by the project to
continue to flow after end of project with particular reference to ownership,
environment, policy support, institutional capacity and financial support.
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Temesgen B. (PhD), AAU-School of
Commerce
44. The nine steps of an LFA
analysis - why?
1. Analysis of project´s Context
2. Analysis of Stakeholders
3. Problem Analysis/Situation Analysis RELEVANCE
4. Objectives Analysis
5. Plan of Activities
6. Plan of Resources/Inputs FEASIBILITY
7. Indicators/measurements
8. Risk Analysis & Risk Management
9. Analysis of Assumptions SUSTAINABILITY
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Temesgen B. (PhD), AAU-School of
Commerce
