1.1 What is Project Cycle Management?

Summary: Introduces the concept of Project Cycle Management (PCM) and its key components, emphasizing its role in guiding project planning, implementation, monitoring, and evaluation processes.

Learning Objectives:

1. Understand the concept and components of Project Cycle Management.
2. Gain familiarity with the stages of the project cycle.
3. Identify key principles and approaches associated with PCM.

Project Cycle Management (PCM) is a systematic approach used to plan, implement, monitor, and evaluate projects. It provides a structured framework for managing projects from their inception to completion, ensuring that they are effectively and efficiently executed to achieve their intended objectives. PCM is commonly used in various sectors, including development, business, and public administration, to ensure that projects are well-organized, resources are utilized optimally, and outcomes are realized (Dearden and Kowalski, 2003).

The project cycle is typically divided into several phases, each with its own set of activities and processes. These phases generally include (Vasiljević et al., 2013):

• Identification: In this phase, potential projects are identified based on a thorough analysis of needs, opportunities, and problems. This is where the project's feasibility and relevance are assessed, and the objectives and goals of the project are defined.
• Formulation and Design: Once a project idea is approved, the formulation and design phase begins. This involves detailed planning of project activities, defining roles and responsibilities, estimating resources and costs, and developing a comprehensive project plan. This phase lays out the blueprint for how the project will be executed.
• Implementation: The project activities are carried out according to the plan developed in the previous phase. Resources are allocated, tasks are assigned, and stakeholders are engaged in executing the project. Effective communication, coordination, and monitoring are essential during this phase to ensure that the project stays on track.
• Monitoring and Evaluation: Regular monitoring and evaluation are critical to track the progress of the project and assess whether it is achieving its objectives. Key performance indicators (KPIs) are used to measure progress, and any deviations from the plan are identified. This phase helps in making informed decisions, identifying challenges, and making necessary adjustments to keep the project on course.
• Completion and Closure: Once all project activities are completed, the project is formally closed. This involves a final review of the project's outcomes and achievements against its initial goals. Documentation of lessons learned, successes, challenges, and best practices is an important part of this phase.
• Follow-Up and Sustainability: After the project is completed, efforts are made to ensure the sustainability of its outcomes. This may involve transferring ownership of the project to relevant stakeholders, ensuring that the benefits are long-lasting, and addressing any ongoing issues that may arise.

PCM emphasizes a participatory and iterative approach, involving stakeholders at various stages of the project cycle (Svoboda et al., 2018, p. 21). It promotes continuous learning, adaptability, and improvement throughout the project's lifecycle. Effective project cycle management contributes to successful project outcomes, increased accountability, and the efficient utilization of resources.

Project Cycle Management is a systematic framework that guides the planning, execution, monitoring, and evaluation of projects to achieve their intended objectives while ensuring efficient resource utilization and stakeholder involvement. It is a dynamic process that facilitates effective project management and decision-making.

EU-funded projects and Project Cycle Management (PCM) share a close and symbiotic relationship. PCM is a structured approach to managing projects from their inception to completion, and it is particularly relevant in the context of EU-funded projects due to the unique requirements and characteristics of these projects.

History of PCM Approach: The roots of the Project Cycle Management approach can be traced back to the development sector and international organizations. In the mid-20th century, as development efforts expanded globally, there arose a need for more effective ways to plan, implement, and evaluate projects aimed at improving living conditions in developing countries (Kabeyi, 2019, p.73). The United Nations, World Bank, and other international institutions pioneered project management methodologies that emphasized systematic planning, participatory approaches, and continuous evaluation.

In the 1970s and 1980s, the European Commission (EC) adopted and adapted these principles into what we now recognize as Project Cycle Management. The EC's integration of PCM into its project funding and implementation processes was a response to the growing complexity of projects and the desire to ensure that funds were used efficiently and results were achieved. PCM became a cornerstone of the EC's project management practices, guiding the way projects were conceived, executed, and monitored.