Project Analysis Lecture Note, 2015 CH: 5 Monitoring and Evaluation

CHAPTER 5: MONITORING AND EVALUATION

What is Monitoring and Evaluation?

Throughout life we are monitored and evaluated: in school we receive grades, at work we are
given performance appraisals, and we evaluate relationships and monitor our health. Before we
use the formal definitions of monitoring and evaluation, let’s use commonsense definitions:
Evaluation asks the question “Are we doing the right thing” or “Do we have the right plan?” and
Monitoring checks to see if we are following our plan.

Monitoring and Evaluation is the systematic collection and analysis of information to enable
managers and key stakeholders to make informed decisions, maintain existing practices, policies
and principles and improve the performance of their projects.

Monitoring is the regular gathering analyzing and reporting of information that is needed for
evaluation and/or effective project management. Monitoring is either ongoing or periodic
observation of a project’s implementation to ensure that inputs, activities, outputs, and external
factors are proceeding according to plan. It focuses on regular collection of information to track
the project. Monitoring provides information to alert the stakeholders as to whether or not results
are being achieved. It also identifies challenges and successes and helps in identifying the source
of an implementation problem.

Evaluation is a selective and periodic exercise that attempts to objectively assess the overall
progress and worth of a project. It uses the information gathered through monitoring and other
research activities and is carried out at particular points during the lifetime of a project.

Evaluation is different from monitoring. Monitoring checks whether the project is on track;
evaluation questions whether the project is on the right track. Monitoring is concerned with the
short-term performances of the project, and evaluation looks more at long-term effects of project
goals. Frequently, evaluation is perceived as an activity, carried out by an expert or a group of
experts, designed to assess the results of a particular project. This is a common misconception. It
is vital that evaluation is carried out with the participation of all project stakeholders, including
beneficiaries. The results of a periodic evaluation are fed into the project planning process as
quickly as possible to enhance the project’s effectiveness.

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 Project Analysis Lecture Note, 2015 CH: 5 Monitoring and Evaluation

Monitoring is useful because it tends to highlight little problems before they become big ones.
An evaluation is a systematic examination of a project to determine its efficiency, effectiveness,
impact, sustainability, and the relevance of its objectives. The dictionary defines evaluation as a
systematic investigation of the worth or merit of an activity. Traditionally, evaluation has been
the last step in the project life cycle and in the project development process. However, it does not
make sense to wait until the project is finished to ask the question “Did we do the right thing?”
Indeed, you could evaluate the effectiveness at each stage of the project life cycle.

In a project the monitoring and evaluation group decides what to monitor. By collecting data
regularly on activity inputs and outputs, processes, and results, the community can monitor the
progress toward the group’s goals and objectives (e.g., income generated by the sale of a
cookbook, how many people sold how many books over what period of time). In managing a
project indicators are indispensable management tools. They define the data needed to compare
the actual verses the planned results.

M&E can be seen as a practical management tool for reviewing performance. M&E enables
learning from experience, which can be used to improve the design and functioning of projects.
Accountability and quality assurance are integral components of M&E, which help to ensure that
project objectives are met, and key outputs and impacts are achieved.

Why Monitor and Evaluate?

M&E can help an organization to extract, from past and ongoing activities, relevant information
that can be used as the basis for future planning. Without M&E how would it be possible to
judge if a project was going in the right direction, whether progress and success was being
achieved, and how future efforts might be improved?

A structured M&E approach makes information available to support the implementation of

projects and activities and will enhance the sustainability. Used effectively M&E can help to
strengthen project implementation and encourage useful partnerships with key stakeholders.

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 Project Analysis Lecture Note, 2015 CH: 5 Monitoring and Evaluation

The main objectives of M&E are thus to:

• Ensure informed decision-making;

• Enhance organizational and development learning;

• Assist in policy development and improvement;

• Provide mechanisms for accountability;

• Promote partnerships with, and knowledge transfer to, key

• Stakeholders;

• Build capacity in M&E tools and techniques.

M&E is about feedback from implementation. The ultimate purpose of M&E is change for the
better.

Different Kinds of M&E

Internal Project M&E is built into the design of a project and is undertaken by the team that is
responsible for management and implementation of the project. This is done to ensure that the
project meets deadlines, stays within the budget and achieves its objectives, activities, outputs
and impacts. A project that does not monitor its implementation is not a well-managed project.
Findings, recommendations etc of internal monitoring is usually captured in progress reports
submitted by project management.

External Project M&E is carried out by an¬ outside team, which is not directly responsible for
the management or implementation of the project. External M&E should assess the effectiveness
of the internal M&E put in place by the project management team. External monitoring can take
place once the project has been completed, and/or during implementation of the project. External
M&E is often required by donor agencies or government organizations if, for example, they need
to know how their funds are being spent or if their policies are being adhered to. All projects can
benefit from external M&E. Findings and recommendations of external monitoring are often
documented in a review or evaluation report. External M&E also monitors and evaluates internal
M&E.

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 Project Analysis Lecture Note, 2015 CH: 5 Monitoring and Evaluation

Monitoring Levels

Traditionally, M&E focused on assessing the inputs and activities of a project. Today the focus is
increasingly on measuring the outputs and impacts of a project to achieve a broader development
objective or goal. Project inputs, activities and assumptions/risks are also important, however, as
they all affect outputs. For example, if the budget (an input) is cut by 50%, this will obviously
affect the outputs of the project and will need to be taken into account when conducting the
M&E. The various monitoring levels in a project are:

Input Monitoring: Input monitoring is the monitoring of the resources that are put into the project
- these include budget, staff, skills, etc. Information on this type of monitoring comes mainly
from management reports, progress reports and accounting. For example, ways of measuring this
can be the number of days consultants are is employed, or the amount of funds spent on training
and equipment.

Activity Monitoring: Activity monitoring monitors what happens during the implementation of
the project and whether those activities which were planned, were carried out. This information
is often taken from the progress report.

Output Monitoring: Output monitoring is a level between activity and impact monitoring. This
type of monitoring assesses the result or output from project inputs and activities. The
measurements used for output monitoring will be those which show the immediate physical
outputs and services from the project.

Impact Monitoring: Impact monitoring relates to the objectives of the project. The aim of impact
monitoring is to analyze whether the broader development objectives of the project have been
met. Such monitoring should demonstrate changes that are fundamental and sustainable without
continued project support.

The Monitoring and Evaluation Procedure

The M&E procedure below sets out the steps in planning and implementing external M&E. The
M&E procedure must be customized to the specific needs of each project, taking into account the
project objectives, inputs, outputs, activities, stakeholders and beneficiaries. The M&E steps will

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 Project Analysis Lecture Note, 2015 CH: 5 Monitoring and Evaluation

vary from situation to situation. Seven key steps are listed in and further explained in the rest of
this chapter.

Step 1: Establish the Purpose and Scope of M&E

Specifying the purpose and scope of the M&E helps to clarify what can be expected of the M&E
procedure, how comprehensive it should be and what resources and time will be needed to
implement it. When formulating the purpose of M&E, relevant stakeholders including the project
management team, should be consulted or at least made aware of and understand the purpose of
the M&E.

Example of an External M&E Purpose: To verify that the development objective and outputs of
the project have been achieved within the allocated budget.

The scope of the M&E may be determined by asking some of the following questions:

• What is the purpose of M&E?

• How much money is available for your M&E?

• What type of information is required by project management, donor agents?

• What is the level of M&E expertise available?

• To what extent should local communities and other stakeholders, participate in the M&E

Step 2: Identify Performance Questions and Indicators

Performance Questions: A performance question is used to focus on whether a project is

performing as planned and if not, why not. Performance questions will be guided by the broader
development objective, the project objectives, the project outputs, as well as the M&E purpose.
Once performance questions have been identified, it will be easier to decide what information is
needed to evaluate the project. Table 1 gives examples of performance questions for the M&E of
a particular project.

Indicators: Indicators should be guided by performance questions and linked to the purpose of
the M&E. Indicators are basically measurements that can be used to assess the performance of

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 Project Analysis Lecture Note, 2015 CH: 5 Monitoring and Evaluation

the project. While performance questions help to decide what should be monitored and
evaluated, indicators provide the actual measurements for M&E and determine what data needs
to be gathered. The project itself may have indicators by which it monitors it's own progress -
these may be used for external M&E, if relevant. Also the funding organization and other
stakeholders can provide broader indicators that may be relevant to the external M&E of the
project.

Indicators, and therefore the data needed to verify them, can be qualitative or quantitative.
Quantitative data is factual while qualitative information is based on opinions and perceptions
and thus may be subject to further interpretation. During M&E, one should aim to have both
qualitative and quantitative indicators. Table 3 provides examples of quantitative and qualitative
indicators.

Step 3: Establish M&E Functions and Assign Responsibilities and Financial Resources

Establishing M&E functions and responsibilities at the beginning of the procedure can help to
avoid major communication issues, conflicts of interest, duplication of tasks and wasted efforts.
Organizing responsibilities means deciding which stakeholders will be involved and clarifying
and assigning roles to these stakeholders as well as to funding organization officials, project
management and any partner organizations. Stakeholders may need to be trained in different
aspects of the M&E procedure. M&E will require financial resources in accordance with the type
of project(s) that is being evaluated as well as the M&E purpose, performance questions and
indicators. Among the items that should be included in M&E costs are:

• Staff salaries;

• Fees and expenses for consultants;

• M&E training;

• Organizing M&E meetings and other participatory exercises.

Consultants can play an important role in enabling projects to fulfill its M&E responsibilities by
providing specialist knowledge and expertise that may not be readily available in the
organization.

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 Project Analysis Lecture Note, 2015 CH: 5 Monitoring and Evaluation

Step 4: Gather and Organize Data

Data is the oxygen that gives life to M&E. However, selecting methods of data collection can be
confusing, unless it is approached in a systematic fashion. Rarely is anyone method entirely
suitable for a given situation. Instead, using multiple methods helps to validate M&E findings
and provides a more balanced and holistic view of project progress and achievements. The
performance questions and indicators will provide guidance in deciding what data/information to
gather and the methods to be used. Data can either be primary or secondary.

Data Sources and Data Collection Methods

Potential data sources and data collection methods are listed below:

• Document Review: Documents and reports provide a rich source of information for M&E.

• Interviews: Interviews can provide a rich source of data, particularly in regard to qualitative
and sensitive information that may not be readily available in official documents.

• Surveys and Questionnaires: Surveys and questionnaires provide a way of obtaining

information from a large number of people. Questions should be relevant and simple to answer.

• Field Visits and Transect Walks Visits to the site of a project can provide valuable information
about the environment in which the project is taking place, its impact on beneficiaries and the
working methods that are being used. Transect walks are an effective participatory method to
gather this information.

• Expert Opinion obtaining the views of experts who are knowledgeable about particular aspects
of the project's activities can in some instances provide valuable insights that may not be
revealed by other methods of data collection.

Organizing and Storing Data

Data needs to be captured, organized and stored so that it can be readily used for the M&E
purposes. Proper capturing, organizing and storage is particularly important when information
has been collected from different sources with different methods.

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 Project Analysis Lecture Note, 2015 CH: 5 Monitoring and Evaluation

Step 5: Analyze Data and Prepare an Evaluation Report

The captured and organized data needs to be analyzed, and findings and recommendations
summarized and compiled into a report. In this regard, the performance questions and indicators
can provide important assessment tools for the analysis. A final comparison with the outputs and
impacts of the project should then be made. In this way performance, progress and achievements
of the project can be assessed. Feedback and reporting are key to both internal and external M&E
as, in this way, information can be meaningfully combined, explained, compared and presented.
All reporting should thus be as accurate and relevant as possible. As mentioned earlier, external
M&E will frequently use the internal project progress reports and other relevant information as
part of the information gathered to externally monitor and evaluate the project. For external
M&E the report is usually called an evaluation or review report.

Step 6: Disseminate Findings and Recommendations

The evaluation reports, or summaries of these reports, should be widely distributed and presented
to decision-makers and key stakeholders ¬including those who were consulted in the M&E
process.

Step 7: Learn from the M&E

Knowledge gained through M&E lies at the core of DW AF's organizational learning process.
M&E provides information and facts that, when analyzed, understood and accepted, become
knowledge that can be used to improve Project management. Besides learning about the
progress/achievements of the project outputs, etc, it is essential to learn from what works
regarding partnership strategies, project design and implementation, and to feed this knowledge
back into ongoing and future projects and policies. This information also provides a means to
regulate the sustainable management of state projects by other agencies.

Project evaluations can help to bring development partners together, and when this occurs the
learning from M&E goes beyond project to stakeholders involved in other development and
natural resource management activities.

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