The Logical Framework (LFA) methodology was developed in the early 1980s as a tool for the conceptualization, design and execution of development projects. It is used to increase precision in project planning, relate multiple objectives to project activities, clarify roles and responsibilities, and evaluate expected results against actual results.
It encourages participation through a rigorous process of analysis of the people and entities that have a legitimate interest in the project.
It is used for project planning in various international organizations, such as the United States Agency for International Development (USAID), Canadian International Development Agency (CIDA), German Corporation for Technical Cooperation (GTZ), Norwegian Agency for Development Cooperation (NORAD), Commission of the European Communities and Pan American Health Organization.
The Logical Framework consists of a series of instruments:
- Stakeholder Analysis Problem Analysis Objectives Analysis Alternatives Analysis Logical Framework Matrix Execution Plan Evaluation and Monitoring Plan Project Report
The Stakeholder Analysis, which should be repeated throughout the project cycle, is used to determine the overall project strategy (the Goal and Purpose of the project), identify the assumptions related to said strategy, and plan activities that increase the validity of the assumptions.
The success or failure of a project is often determined by the behavior of these assumptions.
Questions are raised: Who is directly affected by the specific problem being analyzed? What are the interests of the various people and entities in relation to the problem? How does each group perceive the problem? What resources does each group contribute to treating the problem? What organizational or institutional responsibilities do some of these groups have? Who benefits from the project? What conflicts could one of the stakeholder groups have with a particular project strategy? What activities can be carried out that can satisfy the interests of different people and entities?
Problem analysis is based on the problems identified by the various stakeholders and serves to analyze cause and effect relationships. Objective analysis allows these relationships to become means-ends relationships that make up the fabric of the logical framework matrix. The analysis of alternatives identifies various project strategies, some of which will be analyzed later using various criteria such as economic, financial, sectoral, environmental, etc.
Suggestions for carrying out the Stakeholder analysis
1. Prepare a "stakeholder chart." This identifies all possible groups of people and direct and indirect entities, their interests in relation to the problem and the possible impact of the project on each of them. The relative priority assigned to each of the persons and entities is also indicated.
The main categories of stakeholder analysis are as follows:
- Group Interests Perceived problems Resources and Mandate Interest in the project Potential conflicts
- Has the list of all direct and indirect stakeholders been made? Have all the people who potentially support and oppose the project been identified? Has a gender analysis been done to identify the different groups of women interested in the problem? Have they been classified stakeholders by user groups, occupational groups or economic groups? Is it possible for new stakeholder groups to emerge as a result of the project? What resources are people willing to commit (or not commit) to the project? What are the expectations of the persons and entities with respect to this project? What other interests do the persons and entities have that may conflict with the project? How do the persons consider the other members of the Stakeholders list?
2. Estimate the importance of each person in terms of their relative power or influence and their ability to achieve the goal.
Classify the stakeholders according to their importance and influence (refers to their authority, social, economic, political level, resources and knowledge).
Estimate their ability to achieve the goal. Ask which stakeholder is given priority to meet your demands, needs, interests, etc.
3. Identify risks and assumptions that will affect the design and achievement of the objective.
- What is the role of the main stakeholders in achieving the objective? Can there be negative reactions and, in this case, what would be the repercussions? What activities can be included that satisfy the stakeholders, build support for the project and reduce resistance, thereby increasing the probability that the assumptions hold?
Once the risks and assumptions have been taken into account, the stakeholder analysis serves to construct the first column of the logical framework regarding the hierarchy of objectives. The results and activities may need review once the risk analysis is done.
- Strengths Provides consistent terminology to help avoid ambiguities Provides a format for stakeholders to agree on project objectives, goals, and tasks Provides a common analytical process used by Bank staff, consultants, and consultants Borrowers in order to develop and fine-tune projects Helps the design team conceptualize the project from start to finish Creates a better basis for control and analysis of project effects Use of LFA and monitoring Systematic guarantees continuity of the process in the event that the personnel who were initially in the project are replaced.
Limitations
- Poor stakeholder analysis can create false assumptions to determine project objectives and activities The stakeholder analysis matrix may become outdated if it is not reviewed and updated throughout the project Everyone using the LFA should be trained in the technique to avoid misapplication of the technique, for example using the LFA as a form with which the boxes are simply filled in. Stakeholder analysis may take considerable time. Approach may be less helpful in dialogue with and in the participation of staff and representatives of the host country.
