NZAID Tools Activity Cycle Tools 

Activity Cycle Management

The Three Stages of ACM

Identification Stage

The Identification stage is when choices are made about different possible Activities. These need to be:

  • consistent with our partners’ and NZAID’s policies and strategies, (including ‘cross-cutting issues’).
  • relevant to intended beneficiaries’ priority development needs.
  • feasible given the ‘risk environment’ in which they are intended to be implemented.

Activity ideas (or concepts) can come from a wide variety of sources, including from prospective implementing partners. We often work with our partners to support the identification of new Activities, either through funding them to carry-out the identification processes and/or by providing technical assistance for joint identification, scoping or feasibility missions.

It is important to check that the ‘idea’ fits within the agreed programme strategy before committing substantial resources to any identification work. More complex and potentially risky Activities may require discussion at the NZAID Programme Committee.

Depending on the amount of information provided by our partners, a scoping study may be commissioned to identify the options for addressing a particular problem or need. A pre-feasibility study may be necessary to help inform choices between these options. The preferred option is then usually presented as an Activity concept note.

The Activity concept note is the key document produced at the end of the identification stage. It should contain adequate information for NZAID and our partners to make an effective initial appraisal of the proposal. See NZAID Appraisal Guideline.

NZAID staff play an important role in facilitating the identification process (e.g. through initial consultations with our partners and helping to develop appropriate ToR) and ensuring that appropriate identification processes are followed. We are also responsible for appraising the various concepts and for deciding with our partners which should be taken to the design stage.

Tasks undertaken during the identification stage

There are a number of key tasks to be undertaken during the identification stage. Many of these will need to be repeated in greater depth during the design stage. There are tools available to support each task. The tasks and their related tools are set out in Table 1.

Table 1: Identification and Design Tasks

What information about an Activity should be presented in the Activity concept note?

The Activity concept note should summarise the information derived from carrying out the tasks listed in Table 1. In addition it should present:

  • A preliminary Activity description showing the goal, objectives and main outputs. See NZAID Logical Framework Approach Guideline,
  • An indication of resource and cost implications (including recurrent costs),
  • An indication of the financing arrangements and how they will be managed,
  • An outline of the other proposed management (including monitoring) and coordination arrangements, and
  • An indicative plan for the further development of the Activity during the design stage.

The amount of information and detail required will vary depending on the size and complexity of the proposed Activity.

Identification Stage Appraisal

The appraisal process needs to consider the proposed Activity’s relevance, effectiveness, efficiency, sustainability, impact and management processes. See details in NZAID Activity Appraisal Guideline. The decision options will generally follow those set out in Diagram 2.

Design Stage

The design stage follows approval of the Activity concept note by all the key development partners. Its purpose is to develop a more detailed plan to guide the implementation of an Activity. This plan is presented for appraisal in an Activity design document that builds on and adds to the information gathered during the identification stage.

Tasks undertaken during the Design Stage

Table 1 also summarises the main tasks to be undertaken during the design stage. These tasks and the tools used to support them are essentially the same as those used for the identification stage. The logical framework approach and in particular the steps involved in developing the logical framework matrix, indicative work-plan and resource schedule provide a sound logical process for developing much of the content of the design document. See NZAID Activity Design Guideline and the NZAID Logical Framework Approach Guideline.

It is critical that the Activity design process is carried out with the full participation of key stakeholders. Partner capacity to lead the design process is vital. A decision should be made early in the design stage on whether to proceed with institutional capability strengthening measures alongside work on the final design, i.e. ahead of approval of the actual Activity design document.

NZAID staff have an important role to play in facilitating the design process (e.g. through initial consultations with our partners and helping to develop appropriate ToR) and in ensuring that appropriate design processes are followed. We are also responsible for appraising any feasibility studies and the final Activity design document and then deciding, with our partners, whether the Activity should be implemented.

NZAID’s aim is to support effective partner-owned design processes. In some instances we may be presented with completed design documents. We should appraise these to determine whether any further important information is required. Provided they are consistent with our ACM principles and meet our appraisal criteria, we should not insist on the prescriptive application of our own design processes.

What information about an Activity should be presented in the Activity design document?

The completed Activity design document should include summaries of the information gathered in the situational and policy analyses, and a description of the Activity and its management and monitoring arrangements. Details of the format and content of an Activity design document are set out in Annex 1 of the NZAID Activity Design Guideline.

The amount of detail needed in an Activity design document will depend on the size and complexity of the proposed Activity. A substantial amount of detail is usually expected for any Activity likely to require more than $500,000 per annum of NZAID support.

Design Stage Appraisal

At the end of the design stage a decision has to be made about the next steps for the proposed Activity. The appraisal process needs to consider its relevance, effectiveness, efficiency, sustainability, impact and management processes. See details in NZAID Activity Appraisal Guideline. The decision options will generally follow those set out in Diagram 2.

Implementation Stage

The implementation stage begins once all the key development partners have agreed to proceed with the Activity as described in the Activity design document.

The purpose of the implementation stage is to ensure that the Activity goal is achieved. This requires the effective management of inputs and outputs, the management of any significant risks, effective monitoring and evaluation, and the continued close involvement of all key stakeholders.

Successful implementation requires a management approach that is focussed clearly on achieving development results, while remaining flexible, sensitive to changes, and reinforcing partnerships.

There are three main phases to the implementation stage:

  • The inception phase - reconfirming Activity design and establishing management processes.
  • The main implementation phase - mobilising resources and monitoring performance.
  • The completion/transition phase - measuring impact, ensuring sustainability, drawing lessons for future activities and deciding what to do next.

NZAID staff involvement in the implementation stage will vary considerably depending on the:

  • Scale of the Activity,
  • Level of risk involved, and
  • The modality and management arrangements for the Activity.

Further guidance on implementation can be found in the NZAID Activity Implementation Guideline, NZAID Activity Monitoring Guideline, NZAID Evaluation Series Guidelines and NZAID Activity Reporting Guideline.