What is a Project Exit Strategy?

Exit strategy is a plan of action telling how an existing project or programme will withdraw support in terms of financial and personnel resources without compromising the quality and continuity of the set goals and or objectives. Exit strategy is required not to lose what has already been achieved through previous and current endeavors, while ensuring that the unfinished or new but necessary components are achieved.

What is the goal of an exit strategy? 

Exit strategy ensures the sustainability of impacts after a program or a project end. It can also be defined in a broader sense as a program’s sustainability strategy.

Why are exit strategies important?

Exit strategies, when planned with partners in advance of close-out, ensure better program outcomes and encourage commitment to program sustainability. In addition, good exit strategies can help resolve tension that may arise between the withdrawal of assistance and commitment to achieve program outcomes. Exit strategies can also help clarify and define a sponsor’s role to host countries and local partners as being time limited, reducing the potential for misunderstandings and future dependency.  

Basic approaches to exit strategies 

There are three basic approaches to exit strategies are outlined below;

1) phasing down, 2) phasing out, and 3) phasing over.

1.     Phasing down 

Phasing down is a gradual reduction of program activities, utilizing local organizations to sustain program benefits while the original sponsor (or implementing agency or donor) deploys fewer resources. Phasing down is often a preliminary stage to phasing over and/or phasing out.

2. Phasing out   

This refers to a sponsor’s withdrawal of involvement in a program without turning it over to another institution for continued implementation. Ideally a program is phased out after permanent or selfsustaining changes are realised, thus eliminating the need for additional external inputs. Programs can be designed from the onset to inculcate knowledge, skills and tangible assets within a fixed time period, and with funding cycles considered in the planning of phase out timing.  

3. Phasing over 

The third type of exit strategy approach is ‘phasing over’. In this case, a sponsor transfers program activities to local institutions or communities. During program design and implementation, emphasis is placed on institutional capacity building so that the services provided can continue through local organizations.

Key features of exit strategy 

Key features of exit strategy include:

·      Intervention/actions/activities

·      Actors (who will implement/manage what)?

·      Time lines (when will what be done)

·      Resources needed (financial, human, material)

·      Source of resources (who will provide human and financial resources)

·      Monitoring and Evaluation (what and when)?

·      Who will monitor the activities

·      Other challenges and how they can be addressed

What is the good time to start implementing Exit Strategy?

A well thought-out and planned exit strategy is important for the sustainability of the intervention. Remember, exit strategy is a process and not an event. The exit strategy should be the part of the main project proposal. For a short project of I year or less, the implementation of exit strategy should be started from the first month of project implementation. For a long-term project, say 4 or 5 years, the strategy should be get approved within six months of the start of the project and exit strategy implementation should start in the first year of the project.