Project Identication and Appraisal

Course Objectives and Contents
Project Identication and Basic Concepts

Needs Assessments
Analysis of Project Identication
Project Identication and

Appraisal
1. Project Identication
Alemu L.(PhD)
Lunar International College
December, 2020
Alemu L. Project Identication....

Needs Assessments
Table of Contents
1 Course Objectives and Contents
2 Project Identication and Basic Concepts

Methods of Project Idea Generation
3 Needs Assessments
4 Analysis of Project Identication

Stakeholder Analysis
Problem Analysis
Objectives Analysis
Strategy Selection

Needs Assessments
Course Objectives
Upon satisfactory completion of the course students will be able to:
Be able to identify projects with desired outcomes and

potential for success
Identify and discuss the main steps in selecting and appraising

projects
Evaluate and justify dierent project selection models
Apply the selection techniques in example situations and make

recommendations
Conduct further analysis of the feasibility of a project idea

using sensitivity and simulation techniques

Needs Assessments
Course Contents

Needs Assessments
Evaluation Methods
Assessement type Grade (%)

In-class participation/Quiz 10
Group project work 20
Individual reection on group project work 10
Individual Assignment 10
Final exam 50

Needs Assessments
Reading List

Project Identication and Basic Concepts Methods of Project Idea Generation
Needs Assessments
What is a Project
A project is an activity to create a unique product or service,

called project deliverables.
It has a nite duration.
The project is temporary. So, routine, repeated activities

would not form a project.
Example: Building a football stadium is a project as it may
take nite number of durations (say six months to years) to
build it.
The output of the project, the football stadium, will remain
there indenitely.
Maintenance of the stadium would be a routine activity and
not be categorized as a project.

Needs Assessments
Project identication is developing a preliminary proposal for

the most appropriate set of interventions and course of action,
within specic time and budget frames, to address a specic
development goal in a particular region or setting.
Project identication and Appraisal: Key terms

Project identication: starts with project idea generation,
objectives, and SWOT analysis.
Project appraisal: involves evaluation of projects whether
they are worthwhile in terms of their nancial capabilities and
other aspects
Project selection: involves picking one project or a set of
projects based on criteria set

Needs Assessments
Question
How is a project identied and undertaken for subsequent

implementation?

Needs Assessments
Project Idea Generation: Sources and Methods

Finding a good idea is the rst step in the process of
converting an entrepreneur's creativity into an opportunity.
Therefore, we might have these questions in mind:

Needs Assessments
What is a Good Business Idea?
Any good business ideas could be an invention, a new product

or service, or an original idea or solution to an everyday
problems.
A good business idea does not necessarily have to be a unique

products or services.
Then what are the sources and methods of such a business

idea?

Needs Assessments
Methods of Project Idea Generation
Several techniques can be used to stimulate and facilitate

the generation of new ideas for products, services and
businesses.
The major techniques could be:

1 Brainstorming
2 Focus Group Discussion (FGDs)
3 Observations Surveys
4 Research and Development

Needs Assessments
Brainstorming
Brainstorming is a process in which a small group of people

interact with very little structure, with the goal of producing a
large quantity of novel and imaginative ideas.
Brainstorming sessions have the purpose of exploring as many

solutions or ideas to a given problem or question as possible,
without judging merit within the session itself, in a more
unstructured way than in a focus group
The goal is to create an open, uninhibited atmosphere that

allows members of the group to freewheel ideas.

Needs Assessments
Focus Group Discussion (FGDs)
Focus groups have the purpose of exploring the advantages

and disadvantages of a number of preidentied options which
are presented to the group, in a highly structured way;
These are group of individuals who provide information using a

structured format.
Normally, a moderator will lead a group of people through an

open, in depth discussion.
The group members will form comments in open-end in-depth

discussion for a new product area that can result in market
penetration.
This technique is an excellent source for screening ideas and

concept.

Needs Assessments
Dierences between FGD and Brainstorming

Indicators Brainstorming FGD
Purpose Generate ideas Improve existing ideas
Trigger A need to solve a A need to study an
problem existing idea, solution
Condition Problem exist Idea, solution exist
No. of participants 6 - 8 6 - 12
Participant types Heterogeneous Can be homogeneous
or heterogeneous
Person running the group Facilitator Skilled moderator
Knowledge of topic of Not necessary In depth knowledge
discussion of topic
Type of questions Closed-ended Can be open-ended or
closed-ended
Observers No Yes

Needs Assessments
Research and Development
Research is a planned activity aimed at discovering new

knowledge, with the hope of developing new or improved
products and services.
Researching on new methods, skills and techniques that enable

entrepreneurs to enhance their performance and ability to
deliver better products and services.

Needs Assessments
Needs Assessments
Once project idea generation is done, the next step is
conducting a need assessment .
It seeks to nd out who should benet and what their needs
are.
A `needs assessment' will give an overview of community

problems.
As soon as the problem to be solved/ opportunity is dened

and the organizational goals and objectives are clearly dened,
the business analyst must perform further analysis and break it
down into its root causes or opportunity contributors.
Using techniques such as Five Wh-questions, cause and

eect diagrams (e.g. Problem tree), the business analyst can
gain deep understanding for the situation and recommend the
most viable and appropriate solution.

Needs Assessments
Five WH Questions
The Five WH questions are :

1 WHO WAS INVOLVED?
2 WHAT HAPPENED?
3 WHEN DID IT HAPPEN?
4 WHY DID IT HAPPEN?
5 HOW DID IT HAPPEN?

Needs Assessments
PROBLEM TREE ANALYSIS

Needs Assessments
Example: PROBLEM TREE ANALYSIS

Needs Assessments
A hierarchical view of needs assessment?

Example: For a town or city

Needs Assessments
Goal : one of the major strategic directions for the

organization.
Examples of goal:
Maintain the urban infrastructure.
Reduce crime.
Create jobs for the citizens.
Function : a major activity within the organization which

supports a goal of the organization.
Examples:
Repair city streets.
Enforce the building codes.
Assess the value of property NB: think of need-to-know
question in context of function.

Needs Assessments
Facility : the physical, legal, or other asset upon which a

function of the organization is performed (i.e. database: a
collection of related entities).
Example: Street, Building, Parcel.
Entity : Components of the facilities that are managed by the
various responsibilities of the organization.
Example: Pavement, curbs, cutters.
Attributes : descriptive data that dene the characteristics of
the entity.
Example: Location, condition, size, date, type.

Course Objectives and Contents Stakeholder Analysis
Project Identication and Basic Concepts Problem Analysis
Needs Assessments Objectives Analysis
Analysis of Project Identication Strategy Selection
Project identication involves several analysis.
There are 4 steps to the Analysis Phase:

1 Stakeholder Analysis
2 Problem Analysis (image of reality)
3 Objectives Analysis (image of an improved situation in the
future)
4 Strategies Analysis (comparison of dierent options to address
a given situation).

The main purpose of need assessment (NA) is to let the
business analyst understand in details the business problem or
opportunity and make sure the right problem is solved by the
upcoming project.
Skipping NA often leads to a completed project with budget

and scope, but which no one uses i.e. a project that is not
valuable or did not satisfy the original business need
In order to identify a problem or opportunity , a business

analyst must get an understanding of the current environment,
gather information from the right stakeholders and further
analyze it.
So the rst step in this process is to identify stakeholders that

may aect, or be aected any aspect of the project.

Stakeholders : - are people or entities aected by the impact

of an activity & people who can inuence the impact of an
activity
Stakeholders are:
individuals or groups with a direct, signicant and specic
stake or interest in a given territory or set of natural resources
and, thus, in a proposed project.
People aected by the project
People who can inuence the impact of an activity
Entities, etc
Participation or stakeholder analysis seeks to identify the major
interest groups involved (all those aected by or involved) in
the project.

Stakeholders are individuals or organisations who, directly or

indirectly, stand to gain or lose from a given development
activity or policy.
Stakeholder identication involves:

1 Drawing a distinction among:
Primary stakeholders: who are directly aected and would
include the principal project beneciaries,
Secondary stakeholders: who are indirectly aected, and -
Key stakeholders: who are the agents of change.
2 The identication of NEEDS

Key players
1 The project manager: Is responsible for achieving project
objectives.
2 Sponsor : the person or group that provides the nancial
resources, in cash or kind, for the project
3 Customer/user/client : the person or organization that will
use the project/s product.
4 Performing organization : the enterprise whose employees are
most directly involved in doing the work of the project.
5 Project team members : the group that is performing the
work of the project
6 Project management team the members of the project team
:
who are directly involved in project management activities
7 Potential opponents : Groups which may oppose a project.
8 Supplier : Provides resources
Stakeholder Analysis Dened

It is a process:
To identify the people involved in and aected by the project
(stakeholders)
To determine the opinion of the stakeholders and
To facilitate their contribution to the project activities.
It is a continuous process that should engage dierent groups,
as issues, activities, and agendas evolve.
It is a four-step process:
1 Identify key stakeholders.
2 Assess stakeholder interests and the potential impact of the
project on these interests (expectations, benets, willingness to
mobilize resources, interests).
3 Assess the stakeholder inuence and importance (power,
control of strategic resources).
4 Outline stakeholder participation strategy.
Identifying stakeholders

Rationale for Stakeholder Analysis

Why stakeholder analysis :
To identify stakeholders' interests in, importance to, and

inuence over the intervention.
To identify local institutions and processes upon which to

build.
To provide a foundation and strategy for participation.
To develop a strategic view of the human and institutional

situation, and the relationship between the dierent
stakeholders and the objectives identied.
It provides a useful starting point for problem analysis.
It involves the identication of all stakeholder groups likely to

be aected (either positively or negatively).

Problem Analysis
What is the problem to be addressed?
What is the event or series of events that act as a catalyst for

action?
Is it a problem or crisis that demands immediate attention?
Is the problem one of national security, economic development,

diplomacy?
What interests are at stake for the actor (e.g. state) overall?

Problem Analysis
Problem Analysis
State the problem meaningfully
Determine the magnitude and extent of the problem
Continually re-dene the problem in light of what is possible
Question the accepted thinking about the problem
Question initial formulations of the problem
Say it with data
Clear denitions allow people to communicate with one

another
Measures are important for clarication (e.g., how many

people are living in poverty)
Often have dierent ways to measure problems Quantication

Problem Analysis
Steps in problem analysis:

1 Agree on the main problem
2 Identify the causes of the main problem by asking `But why?'
3 Identify the eects of the main problem by asking `So what?'
until we can go no further.
4 Copy the complete tree on a paper
5 Establishing a hierarchy of problems in a problem tree helps to
form a base for the objectives.

ProblemTree

Problem Analysis (Example 1): Food insecurity

Problem Analysis (Example 2): River Pollution

Objectives Analysis
It's a process to:
determine the objectives parallel to the problems by stating the

problems in positive terms and
form an objective tree (solution tree) in the light of ends

and means relationships.
From Problem to Objective/solution

Problem Objective
High rate of child deaths VI To reduce the rate of child deaths
High rate of nfectious VI To reduce the rate of infectious
disease diseases

Objective Tree
Technique to describe the future situation that will be
achieved by solving the problems
Turning negative conditions into positive in a certain time

Objective tree (Example 1): Food insecurity

Objective tree (Example 2): River pollution

Strategy Selection
Make an assessment of the feasibility of the dierent
alternatives.
Select one of the alternatives as the activity strategy.
If agreement cannot be reached, then introduce additional

criteria alter the most promising option by including or
subtracting elements from the objectives tree.
After having formulated the desired future situation, the

selection of possible interventions starts.
To analyse the strategies for implementation, the following

steps are taken:
Identication of the dierent possible groups of objectives
contributing to a higher objective (clustering).
Choice of a strategy for the intervention, choosing the scope of
the project.
Selecting Strategies

Next
Ex-ante Project Analysis
Thanks!!

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Course Objectives and Contents

Project Identication and Basic Concepts

Project Identication and

Lunar International College

Alemu L. Project Identication....

1 Course Objectives and Contents

2 Project Identication and Basic Concepts

4 Analysis of Project Identication

Alemu L. Project Identication....

Upon satisfactory completion of the course students will be able to:

Be able to identify projects with desired outcomes and

Identify and discuss the main steps in selecting and appraising

Evaluate and justify dierent project selection models

Apply the selection techniques in example situations and make

Conduct further analysis of the feasibility of a project idea

Alemu L. Project Identication....

Alemu L. Project Identication....

Assessement type Grade (%)

Alemu L. Project Identication....

Alemu L. Project Identication....

A project is an activity to create a unique product or service,

It has a nite duration.

The project is temporary. So, routine, repeated activities

Alemu L. Project Identication....

Project Identication and Basic Concepts

Project identication is developing a preliminary proposal for

Project identication and Appraisal: Key terms

Alemu L. Project Identication....

How is a project identied and undertaken for subsequent

Alemu L. Project Identication....

Project Idea Generation: Sources and Methods

Alemu L. Project Identication....

What is a Good Business Idea?

Any good business ideas could be an invention, a new product

A good business idea does not necessarily have to be a unique

Then what are the sources and methods of such a business

Alemu L. Project Identication....

Methods of Project Idea Generation

Several techniques can be used to stimulate and facilitate

The major techniques could be:

Alemu L. Project Identication....

Brainstorming is a process in which a small group of people

Brainstorming sessions have the purpose of exploring as many

The goal is to create an open, uninhibited atmosphere that

Alemu L. Project Identication....

Focus Group Discussion (FGDs)

Focus groups have the purpose of exploring the advantages

These are group of individuals who provide information using a

Normally, a moderator will lead a group of people through an

The group members will form comments in open-end in-depth

This technique is an excellent source for screening ideas and

Alemu L. Project Identication....

Dierences between FGD and Brainstorming

Alemu L. Project Identication....

Research and Development

Research is a planned activity aimed at discovering new

Researching on new methods, skills and techniques that enable

Alemu L. Project Identication....

A `needs assessment' will give an overview of community

Project Identication and Basic Concepts

Project Identication and

Alemu L. Project Identication....

2 Project Identication and Basic Concepts

4 Analysis of Project Identication

Alemu L. Project Identication....

Evaluate and justify dierent project selection models

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

It has a nite duration.

Alemu L. Project Identication....

Project Identication and Basic Concepts

Project identication is developing a preliminary proposal for

Project identication and Appraisal: Key terms

Alemu L. Project Identication....

How is a project identied and undertaken for subsequent

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Dierences between FGD and Brainstorming

Alemu L. Project Identication....

Alemu L. Project Identication....

As soon as the problem to be solved/ opportunity is dened

Using techniques such as Five Wh-questions, cause and

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Analysis of Project Identication

Project identication involves several analysis.

Alemu L. Project Identication....

So the rst step in this process is to identify stakeholders that

Alemu L. Project Identication....

Stakeholders : - are people or entities aected by the impact

Alemu L. Project Identication....

Stakeholder identication involves:

Alemu L. Project Identication....

Stakeholder Analysis Dened

Alemu L. Project Identication....

It involves the identication of all stakeholder groups likely to

Alemu L. Project Identication....

Alemu L. Project Identication....

Continually re-dene the problem in light of what is possible

Clear denitions allow people to communicate with one

Measures are important for clarication (e.g., how many

Often have dierent ways to measure problems Quantication

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....

Alemu L. Project Identication....