Activity Cycle Management
Introduction to ACM
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This guideline is intended to provide:
- an overview of the principles and practice of Activity Cycle Management
- a general understanding of the stages involved in the evolution of a development initiative or Activity
- identify the main actions that need to be carried out during each of these stages
The guideline is not intended to be a prescriptive set of requirements.
The guideline should be applied in conjunction with the principles of ownership, harmonisation, alignment, results and mutual accountability contained in the 2005 Paris Declaration on Aid Effectiveness (pdf 169k), and the Aid Effectiveness Tool. The main role of NZAID staff should be to facilitate and support our partners’ actions and processes, appraise key Activity documents, and ensure that mechanisms are in place to measure the effectiveness of Activities we support.
What is an Activity?
An Activity is an instrument for partner (donor and non-donor) support aimed to promote development.
NZAID uses the term Activity (with a capital ‘A’) to include projects and other aid modalities such as programmatic approaches and sector wide approaches. This should not to be confused with ‘activities’ (with a small ‘a’) as used in the logical framework matrix. See NZAID Logical Framework Approach Guideline.
What is an Activity Cycle?
A development Activity usually has three main stages: identification; design; and implementation. The three stages follow each other with implementation leading back to identification in a sequence called the Activity cycle.
Programming work also links in within these three stages of the Activity cycle and in particular helps inform the identification stage during planning. An essential part of the Activity cycle is an integral sequence of ‘evaluative processes’ encompassing appraisal, review and evaluation.
The concept of a cycle is used to emphasise the importance of ‘lesson learning’ with the lessons learnt from one Activity providing information and lesson-learning for future work:
Diagram 1: Linking the Activity Cycles
What is Activity Cycle Management?
The Activity cycle provides a framework for decision-making and activity management. The key to effective development is ensuring that Activities are well managed through each of the stages. Each stage involves using a variety of processes and tools to help gather or produce the information necessary for good decision-making.
Effective Activity Cycle Management (ACM) requires participatory management of all of the stages by the implementing partner, with appropriate support from NZAID.
Purpose of Activity Cycle Management
The purpose of ACM is to ensure that each Activity we support achieves its objectives. ACM involves ensuring that each stage and process in the cycle is carried out as effectively as possible.
Effective ACM will in turn help ensure that Activities:
- Are relevant to the real needs of the intended beneficiaries
- Align with and support our partners’ and our own policies and programmes
- Conform to the principles enshrined in the Paris Declaration on Aid Effectiveness
- Are feasible and have objectives that can be realistically achieved within the constraints of the actual operating environment
- Produce benefits that are likely to be sustainable beyond the life-cycle of the Activity itself.
Principles Underlining Activity Cycle Management
ACM processes should be:
- Participatory - All stakeholders (and in particular intended beneficiaries) must be involved in all stages of the cycle.
- Supportive - Our processes should fit as closely as possible, and help strengthen, those used by our partners.
- Information-based - Key decisions should be based on appropriate and accurate information.
- Sequential - The information gathered as part of each stage of the cycle should inform decision-making in the next one.
- Reflective - Lessons learnt during preceding stages of the Activity should be applied to both the following stages of the Activity in question and in the programming of new Activities.