25-Jan-24

Project Identification

ABDUL QAYOOM
B.E (CIVIL)
M.E (CONSTRUCTION MANAGEMENT)
PhD (CONSTRUCTION ENGINEERING & INFRASTRUCTURE MANAGEMENT)
NEBOSH IGC, IOSH, HABC Lev2 Award Fire Safety © Abdul Qayoom © Abdul Qayoom

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Project Identification
 Purpose of Project Identification The purpose of project identification is to develop a preliminary proposal for the
 Steps for Project Identification most appropriate set of interventions and course of action, within specific time and
 Stakeholder Analysis budget frames, to address a specific development goal in a particular region or
 Problem Analysis setting.
 Project Objectives
 Market Demand
 Financial Management
 Alternate Solutions
 Preliminary Appraisal
 Risk Analysis
 Overall Appraisal and Recommendation
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Project Identification involves:
 Identification of Problem
 A review of alternative approaches or options for addressing a set of
development problems and opportunities
 The definition of project objectives and scope of work at the degree of detail
necessary to justify commitment of the resources for detailed formulation and
respective preparatory studies; and
 The identification of the major issues that must be tackled and the questions to be
addressed before a project based on the concept can be implemented.
 Sufficient information on project options must be gathered to enable the
government and financing agencies to select a priority project and reach
agreements among stakeholders on arrangements for preparation work,
including setting up steering committees or national preparation teams.
 The results of identification work should be summarized in a report, project brief or
concept document, the format of which will depend upon the government’s
and/or financing agencies’ requirements.

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Steps for Project Identification Stakeholder Analysis
 Stakeholder Analysis  As a first stage it is important to carry out a preliminary stakeholder analysis. This
 Problem Analysis enables identification of the primary stakeholders, as well as partners and their
 Project Objectives roles. Greater understanding of interest groups and their interest should result in a
 Market Demand better quality of project.
 Financial Management  Different roles for stakeholders can be identified at this stage, and these can be
 Alternate Solutions developed as the project progresses. Different organizations can play different
 Preliminary Appraisal roles such as sub-contractors, delivery agency, enabling agency etc.
 Risk Analysis  The outcome of the stakeholder analysis at this stage is that the primary
 Overall Appraisal and Recommendation stakeholder is identified before the objectives of the project are finalized. This
ensures that the problem analysis relates specifically to the primary stakeholders.
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Stakeholder Analysis Problem Analysis
 Stakeholder tables are often constructed which provide a structured format for What is the problem that you want to solve?
assessing the interest of each group.
 A good project comes from a good problem definition.
 It is important to first identify the problem you want to address, whether it be in
your country, community or school.
 In general, try to describe what you want to change and why you want to
change it.
 A way to test the clarity of your problem statement is to see if you can
summarize it in one sentence.

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Problem Analysis
 A helpful tool for systematically understanding the causes of a problem is the
problem tree method. This involves the identification of a core problem (at the
center) which is based on the best understanding and sources of information
available. It is important to reach agreement amongst the participants of the key
core problem.
 The causes of the problem are then traced back as the ‘roots’ of the problem and
provide the causal chain.
 The effects of the problem are then traced forward as the branches and main
effects of a problem on stakeholders.
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Problem Analysis
What evidence and/or data do you have that supports the identified problem?
 You not only need a good problem definition, but it is also equally important to
have solid evidence and/or data to prove that the problem actually exists.
 This implies doing some research on the problem you have identified.
 Sources of data and evidence can include statistics, survey results, and
information from previous reports elaborated by International Organizations, Non-
Governmental Organizations (NGOs) and/or government institutions.
 Data and evidence-based research add validity to your project.
 This information is crucial as it will help others understand why the problem
identified is a worthy issue to tackle. © Abdul Qayoom

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Problem Analysis
What other initiatives have been implemented that target the same problem?
 It is likely that other organizations might have already done similar projects to
address the problem you’ve identified.
 Before settling on your project, investigate what other initiatives have been
implemented on the same topic.
 This will be helpful because you can learn from previous results, and the lessons
and challenges from other Projects.
 You might also get new ideas that can improve your project design.
Project Objectives
 When there is agreement and understanding about the core problem and the
causes and effects, the project objectives can be specified.
 Although setting project objectives appears to be straightforward, the process
may provide insights which could require revisiting the core problem.
 Overall, the approach may need to be an iterative one.
 Initial consideration of objectives may prompt further investigation and data
collection, and/or consultation with stakeholders.

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Objectives Analysis Objectives Analysis
What are the objectives and/or expected results of your project? SMART Objectives

 What is the project going to be about?

 If you had previously identified the problem, it is now time to reflect on what you
want to achieve and how.
 Keep in mind that you don’t have to solve every dimension of the problem you
identified.
 Be realistic. It is better to have only a few targets (2–4) which can actually be
attained.

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Market Analysis Market Analysis
 Market and demand analysis are carried out by the project manager in the  The market and demand analysis helps the
process of evaluating a project idea. project manager to understand how the firm’s
 There are six steps in the market and demand analysis abilities can be synchronized with market
 Situational analysis and objectives specification requirements.
 Collection of data
 Market survey  Market analysis studies market needs and
 Market description consumer preferences for a given project
 Barriers to Entry idea and demand analysis aims at
 Regulations calculating the aggregated demand for a
 Demand forecasting and market planning. particular product or service.
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Financial Management Financial Management
“Project Financial Management is a process which brings together planning,  Cash flow is one of the most important measurements
budgeting, accounting, financial reporting, internal control, auditing, procurement, in business. It is the amount of money and cash
disbursement and the physical performance of the project with the aim of managing equivalents that move in and out of a business at any
project resources properly and achieving the project’s objectives” given time.

Like the concept of Project Management, it is a strategic competency for

organizations and can make the difference between a successful project and audit
reports.

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Alternative Solutions Preliminary Appraisal
 The alternatives analysis is a technique used to Project Appraisal is a consistent process of reviewing a given project and evaluating
evaluate identified options to select which options its content to approve or reject this project, through analyzing the problem or need
or approaches to use to execute and perform the to be addressed by the project, generating solution options (alternatives) for solving
work of the project. the problem, selecting the most feasible option, conducting a feasibility analysis of
 An example would be evaluating the cost, schedule that option, creating the solution statement, and identifying all people and
resource, and quality. organizations concerned with or affected by the project and its expected
 Alternative analysis is often performed to give decision-makers choices for outcomes. It is an attempt to justify the project through analysis, which is a way to
continuing existing programs or starting a new one. determine project feasibility and cost-effectiveness.
 With this, it identifies cost-effective actions to avoid duplication of efforts as well
as decrease the risks in delivering successful programs in the future.
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Preliminary Appraisal Risk Analysis
Key Steps Risk Analysis is defined as the sequence of processes of risk management planning,
1. Initial Assessment analysis of risks, identification and controlling risk on a project.
2. Defining Problem and Long Listing
3. Consulting & Shortlisting  Risk Analysis and Management is a key project management practice to ensure
4. Developing Options that the least number of surprises occur while your project is underway. While we
5. Comparing and Selecting Project can never predict the future with certainty, we can apply a simple and
streamlined risk management process to predict the uncertainties in the projects
and minimize the occurrence or impact of these uncertainties.

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Overall Appraisal & Recommendations
Project appraisal is the structured process of assessing the viability of a project or
proposal. It involves calculating the feasibility of the project before committing
resources to it.

 Assessment of a project in terms of its economic, social and financial viability

 Decide to Accept or reject a Project
 It is a tool to check the viability of a Project Proposal

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