<p>A1302</p><p>Introduction: Peru is a country that is undergoing a process of democratic transformation. Local and international development agencies are established in Peru in order to support this process. In the last decade, there has been an encouragement for these agencies to use strategic management in their project work. The Logical Framework Approach (LFA) is an objective-oriented approach that has become widely employed for the planning, implementation and evaluation of development projects. The so called “vertical logic” of the LFA, rests on the assumption that project stakeholders can predetermine and agree on how certain activities will lead to the accomplishment of a hierarchy of formally stated goals.</p><p>Purpose: The purpose of this thesis is to analyze the applicability of the vertical logic of LFA on development projects in Peru.</p><p>Theoretical framework: The theoretical framework of this paper is based on theories and arguments raised for and against Management By Objectives (MBO) from which the LFA originates. In addition, the special features of the development sector are discussed in regard to this rational goal approach.</p><p>Method: This paper has been carried out as a Minor Field Study (MFS) in Peru where representatives of local as well as international development agencies have been interviewed.</p><p>Empirical findings and Analysis: This paper highlights the special characteristics of development work in Peru. Projects are typically large with abstract, complex goals and multiple stakeholders. In addition, they are carried out in an environment typified by significant instability and change. These characteristics potentially make some of the features inherent in the vertical logic of LFA, such as strict planning and goal congruency, unrealistic. This potentially limits its usefulness as a strategic management tool.</p>

A1302 Introduction: Peru is a country that is undergoing a process of democratic transformation. Local and international development agencies are established in Peru in order to support this process. In the last decade, there has been an encouragement for these agencies to use strategic management in their project work. The Logical Framework Approach (LFA) is an objective-oriented approach that has become widely employed for the planning, implementation and evaluation of development projects. The so called “vertical logic” of the LFA, rests on the assumption that project stakeholders can predetermine and agree on how certain activities will lead to the accomplishment of a hierarchy of formally stated goals. Purpose: The purpose of this thesis is to analyze the applicability of the vertical logic of LFA on development projects in Peru. Theoretical framework: The theoretical framework of this paper is based on theories and arguments raised for and against Management By Objectives (MBO) from which the LFA originates. In addition, the special features of the development sector are discussed in regard to this rational goal approach. Method: This paper has been carried out as a Minor Field Study (MFS) in Peru where representatives of local as well as international development agencies have been interviewed. Empirical findings and Analysis: This paper highlights the special characteristics of development work in Peru. Projects are typically large with abstract, complex goals and multiple stakeholders. In addition, they are carried out in an environment typified by significant instability and change. These characteristics potentially make some of the features inherent in the vertical logic of LFA, such as strict planning and goal congruency, unrealistic. This potentially limits its usefulness as a strategic management tool.