Control

Control is a managerial process. It is interrelated with planning. Planning provides standards for control. Control measures actual performance and compares it with standards to identify deviations. Deviations are analyzed to take corrective actions.

• Control is a continuous process. To be effective, it should give attention to critical control points or benchmarks where deviations adversely affect the attainment of targets.

Types of Control
Control can be of the following types:

The Process of Control

1. Pre-control (Feed-forward control): It is inputs-based. It is initiated before the start of the activity. It anticipates problems in advance and takes preventive corrective actions. Examples are specifications for quality control, capital budgeting methods, acquisition of right human resources.
2. Concurrent Control (Yes/No Control): It is transformation based. It is initiated during the implementation of the activity. It consists of actions to ensure that operations are being conducted according to plans. Problems are corrected as they arise. Example is quality control from process to process.
3. Post Control (Feedback Control): It is output based. It is initiated after the completion of the activity. It is based on feedback of performance results. Example is financial analysis.

Control Cycle
Control is a cyclical process. It involves the following steps:
1. Setting Standards (What should be done?)
Planning sets standards fro performance. Standards are the starting point of control. They are target or yardstick of performance.

• Standards can be in terms of quality, quantity, costs, income and time. Standard costs, standard operating time, sales goals per salespersone, quality standards, kilometers per liter are example of standards.
• Standards should be clearly understandable. They should be reasonable. Employees should see them fair and attainable.

2. Measuring Performance (What actually was done?)
The second step in control is measurement of actual performance within a given period. It is a continuous on-going process to get feedback.

• Internal reports relating to quantity, quality, costs, income, time etc., provide information about actual performance.

3. Finding Deviations (Extent and causes of difference)

 The third step in control is comparison of actual performance with standards. Performance can be equal to, be higher, or be lower than standards.

• The magnitude of deviation is identified. The causes and incidence of deviation are analyzed.
• The responsibility for deviation is located.

4. Corrective Actions (Future standards)
The performance is evaluated in terms of deviations. Corrective actions are taken. The actions can be:

• Do nothing: If the performance deviations are withing allowable tolerance, status quo is maintained.
• Correct deviations: Actions are taken to correct the deviations. They can be more training, better raw materials, improvements in design, greater motivation etc.
• Change Standards: Standards are revised to make the appropriate and realistic.
• Control should focus on critical control points. They are of areas where deviations from standards will cause the greatest damage to project. Corrective actions can be most effectively applied to such critical control points.

Project Monitoring and Evaluation System of INGOs

INGOs (International Non-Government Organizations) are voluntary non-government international organizations. They have head office in a developed country such as UK, USA, Japan, and Germany. But their operations and activities extend to too many developing countries. They conduct various activities to uplift and develop the under developed countries. The activities of INGOs consist mainly of:

1. Community Development Activities: They aim at social well-being of target groups. The sectors consist of : 
• Health and drinking water
• Education, including literacy and child care
• Agriculture, forestry, irrigation 
• Infrastructure development such as bridges, trails, school building. 
• Skills development etc.
2. Income Generating Activities: They aim to enhance the economic well-being of the target groups. For example, goat rearing.
3. Advocacy Activities: They aim to advocate issues like democracy, transparency, environmental protection, rights of women, children and consumers, etc.

• Nepal has more than six dozen INGOs engaged in various at grassroots level. They operate directly or through local NGOs. The Social Welfare Council serves as the focal point for INGO activities.
• INGOs carry out their activities mainly through small projects. A growing number of donors have started to work in partnership with INGOs. A substantial amount of foreign aid (estimates are about Rs. 6 billion) to Nepal flows through the INGOs.
• Monitoring and evaluation is an important aspect of project management by INGOs.

Monitoring
Formal Monitoring by INGOs consists of periodic reports and accounting statements from the project, usually on a monthly or quarterly basis. The actual performance is compared against performance benchmarks in terms of time, budget and quality. Corrective actions are taken for deviations by the INGOs.

Evaluation

• Field level evaluation: It is an on-going process. The project progress is evaluated weekly or monthly by INGO staff through field visits.
• Impact evaluation: This is done for the country programme of the INGOs. It is carried out generally in three to five years.

Project M and E Techniques of Various Agencies 

Project Monitoring and Evaluation System of World Bank

Policy Action Matrix Modality is used to for project monitoring and evaluation of World Bank which involves:

• The Appraisal report and loan document specify the performance benchmarks for the project. They are stated in the form of a policy action matrix or logical framework.
• Monitoring of project progress is based on the trimester progress report and financial statements provided by the project management information system (PMIS). The local office of the World Bank also monitors the project as and when needed. Informal monitoring is done by telephone conversation and correspondence through mail, fax and E-mail.
• The World Bank evaluates the project by collaborating with external consultants and its staffs. Missions are fielded for on-going evaluation every six month or annually. Project completion evaluation is also done.
•  The evaluation mission leaves behind an aide memoir which serves as the blueprint for corrective actions and future activities of the project.

New M & E system of World Bank
Loan Administration Change Initiative (LACI)
The World Bank had introduced LACI (Loan Administration Change Initiative) for loan administration in July 1st 1998. Sound financial management is a prime factors of project success.

• LACI (Loan Administration Change Initiative) integrates project accounting, procurement, contract management, disbursement and audit with physical progress through the Project Management Report (PMR).
• There is the provision of quarterly payment to the special project based on Project Management Report (PMR) which replaces voucher-by-voucher payment method.
• Loan Administration Change Initiative (LACI) applies to new projects. The implementation is on a project-by-project basis.

Monitoring and Evaluation under LACI (Loan Administration Change Initiative)

1. The project task team conducts periodic progress reviews of the action plans through country missions.
2. The task team leader is responsible for monitoring issues and needed actions.
3. Project management report serves as the key document for monitoring purposes.

Logical Framework for M & E

A logical framework is generally used for monitoring evaluation. It evaluates cause and effect relationships as well as assumptions and risks of the project. The logical framework evaluates three sequential relationships:

1. Inputs to Outputs: Outputs resulting from inputs, for example grain storage godown facility for a grain storage project.
2. Outputs to Effects: Effects resulting from project outputs. For example reduction in grain losses as an effect of grain storage godown facility.
3. Effects to Impacts: Impacts resulting from project effects. For example higher income to farmers as an impact of reduction in grain losses.

• The assumptions and risks are evaluated as to their validity. These cannot be controlled by the project.
• Performance benchmarks serve as the standards for monitoring and evaluation purposes.
• A logical framework matrix for each project is prepared for planning, monitoring and evaluation purposes as shown in box:



Logical Framework Matrix

Key Concepts in the Logical Framework

• Objective: This is the desired outcome of the project.
• Purpose: This is the effect or impact of the project.
• Outputs: These are the deliverable of the project as specified in the Terms of Reference.
• Activities: These are the tasks that must be undertaken to accomplish outputs. They involve inputs in terms of money, human resources, equipment, materials etc.
• OVIs: Objectively Verifiable Indicators are targets in  terms of quantity, quality, time to measure actual performance.
• MOV: Means of Verification describe sources of information that provide the basis for monitoring and evaluation of the project. They are reports and publications related to project accomplished.
• Assumptions and Risks: They are important external factors beyond the control of the project. Their validity is important for achieving project objective, purpose, outputs and activities.

M & E: Monitoring and Evaluation