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48 The bottom part of this framework is the capacities and conditions’ part. Without necessary condictions and capacities including readness to implement M&E systems, change cannot be guaranteed. Of the six components, four components “guiding the strategy, effective operations, monitoring and evaluation systems and creating a learning enviornment” are the major components of the framework. The other two are equally important and are interlinked with the other four and work together to maximise impact (Kuster et al, 2010). These being: 1. Strategic guidance - which must be based on an in-depth understanding of the specifics of the situation (sitaution analysis). This also involves well-defined and articulated theories of change and the capacity for adapting the strategy in response to learning and changes, both internal and external. 2. Effective operations - involves managing financial, physical and human resources to achieve impact. The core qualities that managers need here are the abilities to communicate and to manage the different interests of each stakeholder or partner. 3. Establishing a participatory and learning-oriented M&E system - means putting in place systems and processes with which to regularly gather and process the information needed to guide the strategy, ensure effective operations and encourage learning. This monitoring and evaluation system therefore underpins and links the other three components of M4I. 4. Creating a learning environment - involves establishing a culture of learning amongst stakeholders and a set of relationships that build trust, stimulate critical questioning and innovation, and generate commitment and ownership. The other two components of the managing for impact framework (facilitating people engagment and connnecting to context dynamics) influence impact and participation. Engaging people means involving stakeholders in the project process. This should enhance ownership and participating in project activities. Projects do not work in a vaccum hence the need to consider contexts in which they operate. Consider how the context is working for or against the project and put corrective actions if the context is working aganist the project. All six components are intricately connected. You cannot design an effective monitoring and evaluation system without a good project design, neither can you succesfully implement and guide the project towards impact without managing operations effectively, including human resources, assets and budgets. In addition, if you do not learn you reinvent the wheel, hence managing operations becomes cost ineffective.