2.

PROJECT
IDENTIFICATION
1
2. Project Identification
2.1 Approaches to Project Identification

2.2 Resource-Based Identification

2.3 Market-based Identification

2.4 Need-based Identification

2
 WHAT MAKES A GOOD PROJECT?

Well defined in scope and timing;

Responds to real societal needs;

Is environmentally and socially sustainable;

Complies with regulatory requirements;

Is technically & financially feasible; and

Is fiscally affordable.

3
 SOME TOOLS USED IN PROJECT
IDENTIFICATION:

Situational and Environmental Analysis

SWOT(Strengths, weakness, Oppurtunity and threats)

Analysis

Problem and Opportunity Studies

 Resource Analysis
4
 SITUATIONAL AND ENVIRONMENTAL
ANALYSIS
A market analysis will be made up of a range of factors relevant to the particular situation under review,
but would normally include the following areas:
. Actual and potential market size
ii.Trends
iii.Costumer
iv.Costumer segment
v.Distribution channel

5
 ENVIRONMENTAL ANALYSIS

Environmental analysis refers to the monitoring, evaluating and disseminating of information from

the external environment with the objective of identifying threats and opportunities and assessing

their impact given the company’s internal strengths and weaknesses.

According to Business Environment: Managing in a Strategic Context, An environment is defined as:

“anything outside an organization which may affect an organization’s present or future activities.

Thus, the environment is situational – it is unique to each organization” (Kew and Stredwick 2005).

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 ENVIRONMENTAL VARIABLES
A. Industry Environment
 Customers
 Suppliers
 Labor unions
 Creditors
 Competitors
 Government
 Community

7
 B. ORGANIZATIONAL
ENVIRONMENT
Macro Environment
Demographic
Social
Economic
Technological
Political/Legal

8
 STRENGTHS
What advantages (for example, skills, education or personal industry connections) do they have that others
don’t have?

 What makes company standout from its competitors?

What positive aspects does the company enjoy in the current environment ?

A strength can be a competitive advantage like

 Superior product quality

 Lowest price

Best expertise

 Location
9
 WEAKNESSES
 Which areas are causing concerns?

Which issues can be avoided?

 Company’s reputation among its customers.

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 OPPORTUNITIES
 How can the company be more innovative ?
 Which are the new markets or consumers that can be tapped ?
 What are the upcoming trends that are catching up in the market ?

An opportunity can be…

 A regulatory or tax change

 marketing opportunity
 An untapped market –
 A gap left by a failed competitor

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 THREATS
Are there any new competitors emerging in the industry ?
 What are the issues that threatens the company’s position ?
 Is there any significant change(s) in the industry of operation ?

A threat can be…

 Unfavourable regulation changes –
 A new entrant into the market –
 Problems with the economy
 Market shrinkage

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 SWOT ANALYSIS

 Planning tool used to understand Strengths, Weaknesses, Opportunities, &

Threats involved in a project / business.

Used as framework for organizing and using data and information gained

from situation analysis of internal and external environment.

13
 involves brainstorming sessions with concerned participants

can be applied equally well to a project proposal or to the ultimate implementation of the
project.

It is a widely used technique in business and marketing

Participants are required to list quickly on display boards all their ideas concerning the
proposal being reviewed, under each of the four themes above.

All ideas are then reviewed and consensus reached on which are critical to the success of the
project.

 The resultant lists help clarify thoughts on strategies for development or for improved
management.
14
 The results are best displayed on a whiteboard or flipchart divided into a grid of four

squares, to represent the SWOT headings.

The group should not be too large for discussion

the members should be given time to think through their own contributions, either
individually or in small groups of two or three people.

 Given the need to consult widely for many development projects, it may be appropriate to
conduct more than one SWOT, with groups representing different stakeholders.
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 EXAMPLE :
SWOT ANALYSIS FOR IRRIGATION WATER USER
ASSOCIATIONS IN PAKISTAN
STRENGTHS Weakness

 some ability to act in union to negotiate poor condition of the infrastructure with costly
with government and to resolve disputes repair needs
 some mutual trust as a basis for collective continuing dependence on government for
action major works
 intimate knowledge of the irrigation system  lack of data on system performance
ability to mobilise labour and capital  limited engineering knowledge or access to
technical guidance
ability to monitor all water users
 highly politicised and unequal social structure
 strong incentives to improve the disruptive competition for Association
performance of the system leadership
 lack of self-confidence and local models of
success to follow 16
 CONTINUED….
OPPORTUNITIES Threats
 ‘window of opportunity’ for reform exists perceptions among members that water
in the political and economic environment
charges will rise to unaffordable levels

− for associations to become multifunctional,

− non-cooperation or even adverse
bringing wider benefits and sources of
intervention by ‘feudal’ landlords
revenue
− existence of supportive pilot project
 − resistance to change in the irrigation
department
 − availability of some donor support

− continued corruption and need for payment

 − wider policy reforms improving producer of bribes to ensure suppl
prices and hence incentives
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 CREATIVE USE OF SWOTS

 How can we Use each Strength?

 How can we Stop each Weakness?

 How can we use each Opportunity?

 How can we Defend against each Threat?

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 A SWOT MATRIX

 separates and compares internal and external influencers.

Internal: strengths, weaknesses

External: opportunities, threats

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 A SWOT MATRIX
Current conditions

Strength Weakness

• Opportunities • S-O Strategies • W-O Strategies

• Threats • S-T Strategies • W-T Strategies

The Plan for the

future 20
 STRATEGY FORMULATION
Strategies that can come from SWOT Analysis
SO Strategies: Use strengths to take advantage of opportunities
(Maxi – Maxi Strategy)
WO Strategies: Overcome weaknesses to take advantage of opportunities
(Mini – Maxi Strategy)
 ST Strategies: Use strengths to avoid threats
(Maxi – Mini Strategy)
 WT Strategies: Minimize weaknesses and avoid threats
(Mini – Mini Strategy)

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PROBLEM AND
OPPORTUNITY STUDIES
Opportunity Identification – identify the technologies that could be successfully
turned into commercial products.

Opportunity – favourable position or a range for advancement

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 OPPORTUNITY STUDY

Generate Ideas

Answer the question:

“What can be brought to the market?”

“How can it be brought to the market?”

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 PROJECT IDENTIFICATION

Projects are described as:

 the “cutting edge of development” or as “building blocks of development.”

a scientifically evolved work plan devised to achieve a specific objectives within a specified

period of time.

According to the World bank, “A project is an approval of capital investment to develop

facilities to provide goods and services”.

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 IMPORTANCE OF PROJECT
 Projects are catalytic agents of economic development.

 They initiate the process of development in terms of employment & income generation.

 Projects have consequences which are long term in nature.

 They provide frame work of the future activities of the enterprises.

 Shape the future pattern of enterprises.

 Projects usually involve substantial financial outlays.

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 Initiate development of basic infrastructure and environment.

 Project commitments can not be easily reversed.

 brings necessary changes in society in course of time.

 Projects accelerate the process of socio-cultural development.

 Serves as an encouragement to with entrepreneurial qualities.

 Helps to increase the standard of living of the society.

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 2 . 1 A P P R O A C H E S T O P R O J E C T I D E N T I F I C AT I O N

Project identification
a process to assess each project idea and select the project with the highest priority.
concerned with collection, compilation and analysis of economic data for the eventual
purpose of locating possible opportunities for investment.
 Clear project identification allows you to answers questions like:
• How do the projects come about?
• Where do projects come from?
• Why are projects

There are two major approaches to project identification
(a) Top-down approach
(b) Bottom-up approach
27
.
 A. Top-Down Approach project identification
• Projects are identified based on demands from beyond the community.

• This may include directives from:

 international conventions (such as Kyoto Protocol/climate change) •

 international institutions or NGOs that have determined particular priorities and thus projects

 national policy makers identifying projects that pertain to party manifestos and/or national plans

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TOP-DOWN APPROACHES TO PROJECT IDENTIFICATI
ON
1. The household (socio-economic) survey
• Studies social and economic situations of a given area
• e.g. climate, geographical set-up, economic activities, political set up, education system, culture,
diet, social services, physical infrastructure etc.
• Uses questionnaires, interviews, documentation, and direct observation.
• Data is collected, processed and analyzed and projects are then identified

2. Rapid appraisal
• Called Rapid Rural Appraisal (RRA) when carried out in a rural areas, and Rapid Urban
Appraisal(RUA) in an urban area.
• Method collects and assesses data quickly using any data collection techniques.
• Primary purpose is to acquire the information in the shortest time possible and it lowers the cost.
• It is rapid because investigation, assessment and identification of projects are done at the same
29
RAPID APPRAISAL USES THE FOLLOWING DATA CO
LLECTION
• TECHNIQUES:
Analysis of secondary data sources
• Interviews
• Direct observation at site
• Visualization of Resources like social organizational maps and time series maps.

3. Needs Assessment Survey

• Also referred to as situation analysis.
It involves:-
• Fact finding about problems or needs in a given area or community.
• Finding out what is lacking in a given area or community.
• Investigating a situation in a given area.
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Advantages of Top-Down Approach

• It may be a rapid response to disasters like floods, war outbreak because there
is limited time and chance to consult the beneficiaries.

• It can be effective in providing important services like education, health,

water, roads etc.

• It can contribute to wider national or international objectives and goals

• and therefore potentially be part of a wider benefit (as in the case of trans-
boundary resources, such as climate, water or others)

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 LIMITATIONS OF TOP-DOWN
APPROACH
• Does not help in modifying strongly established ideas and beliefs of people.

• Assumes external individuals know better than the beneficiaries of the service.

• Communities have little say in planning process rendering approach devoid of human resource

development.

• Community develops dependency syndrome on outside assistance and does not exploit their own

potential.

• The development workers (change agents) become stumbling blocks to people-led development •

tendency to impose their own biases, etc. on people. 32

 (B) BOTTOM-UP APPROACH PROJECT
IDENTIFICATION
• In this approach community/beneficiaries are encouraged to identify and plan the
projects themselves with or without outsiders.

Bottom-up approaches to project identification

1. Animation
• Process of stimulating people to become more aware and conscious of problems
they suffer from.
• to gain confidence in their ability to deal with these problems and take initiatives
to improve situation.
• Animation makes the community better understand and be prepared to overcome
its problems and take decisions with full responsibility.
• Carried out by Animators / Helpers / Change agents. (Internal Animators if they
come from within the community or External Animators if from outside.) 33
2.Facilitation/Community action

• an attempt to assist people to get over problems by (say) training them in certain skills,

providing them with the needed information

e.g. market information, linking them up with relevant agencies and organizations to

improve access to the needed resources etc.

3. Participatory Appraisal

Project identification should be participatory, and should involve local communities in

identifying and prioritizing their needs

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 ADVANTAGES OF BOTTOM-UP APPROACH

• Interveners accomplish more with limited resources since people tend to safeguard what they have

provided for themselves.

• Develops people’s capacity to identify problems and needs and to seek possible solutions to them.

• Provides opportunities of educating people.

• Helps people to work as a team and develop a “WE” attitude - makes project progressive and

sustainable.

• Resources are effectively managed; dependence reduces, there is increased equity, initiative,

accountability, financial and economic discipline. 35

 S T E P S I N I D E N T I F I C AT I O N O F P R O J E C T S

Step 1: Identify & Meet with Stakeholders

A stakeholder is anyone who is affected by the results of project plan may include customers and

end users.

Identify all stakeholders and keep their interests while creating project plan.

Meet with the project sponsors and key stakeholders to discuss their needs and expectations, and

establish baselines for project scope, budget, and timeline.

Then create a Scope Statement document to finalize and record project scope details, get

everyone on the same page, and reduce the chances of miscommunication 36

 STEP 2: SET & PRIORITIZE GOALS

 With a list of stakeholder needs, prioritize them and set specific project goals.

 These should outline project objectives, or the metrics and benefits to achieve.

 Write the goals and the stakeholder needs to address in the project plan so it's

clearly communicated and easily shareable.

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STEP 3: DEFINE DELIVERABLES

Identify the deliverables and project planning steps required to meet the project's goals.

Step 4: Create the Project Schedule

Go through the each deliverable and define the series of tasks that must be completed to

accomplish each one.

 For each task, determine the amount of time it will take, the resources necessary, and

who will be responsible for execution.

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STEP 5: IDENTIFY ISSUES AND COMPLETE A RISK
ASSESSMENT
 No project is risk-free. If there any issues, that will affect the project

planning process.

So, should know how to manage risk in a project and consider the steps

you should take to either prevent certain risks from happening, or limit

their negative impact.

 Conduct a risk assessment and develop a risk management strategy. 39

 STEP 6: PRESENT THE PROJECT PLAN TO
STAKEHOLDERS

Explain how project plan addresses stakeholders' expectations, and

present the solutions to any conflicts.


Make sure that presentation isn't one-sided.


Have an open discussion with stakeholders instead.


Make project plan clear and accessible to all stakeholders.


Housing all project plan data in a single location, like a collaboration

tool, makes it easy to track progress. 40

2.2 RESOURCE-BASED IDENTIFICATION

Tip #1: Know what work is

required

• Make sure that you have a clear brief before the project starts.

• You and the client should have a common understanding of what is

included in the project.

• Confirm the scope with whoever needs to approve the work going 41
This is the definitive list of everything that is expected on the project.

 Of course, that might change as work progresses, but your need to have
a starting point from which to plan your work and the people who should
be involved.
When you know what the scope of the project is, you can start to look at
the resources required.
Breakdown the work into the component parts.

As you start to build out your project plan, you’ll need to draw on the
subject matter experts from your team.

42
They will help you identify the tasks to be done and give you an idea
about the skills required to complete the tasks.

 When the project schedule comes together, you’ll have a clear view of
what kind of person is required to deliver each of those activities, even if
you don’t have exact names at this point.

43
 Tip #2: Plan in advance

• It’s better to plan your resource needs in advance.

• There is too much risk involved with waiting until you need a

particular resource and then trying to book them.

• That person might be already fully committed on another project, or

on vacation or so on.

44
•
This exercise of booking resources in advance is part of capacity planning.

 It’s essential to make sure that you have a solid flow of work through the organization.

 Capacity planning means that your resources have enough to do at all times.

no one is waiting for work to come in, and everyone knows what the next quarter’s

commitments will be.

Planning in advance for your project helps your client have confidence that the project

will take the length of time you’ve said, and helps the business manage the throughput

of assignments.

• 45
 Tip #3: Confirm resource availability

• Perhaps someone is available to your project 50% of the time. What does that

actually mean? Is it 50% of the full week? Or 50% of their time after a percentage

has been sliced off for their admin and non-billable time? Or some other calculation?

 Check how much you can expect from resources – especially those who are only

contributing to the project in a part-time capacity – before you book their time into

your schedule. 46
 It’s also worth checking what level of approval you need to book that resource.
 In larger organizations, it might be prudent to go via your resource manager or their team
leader.
 Check you know the process for accessing people’s time before you allocate them to any work.

47
 Tip #4: Check their skills

Do• the people you want on the project still have up-to-date skills in the appropriate areas? Check your

organization’s skills catalogue and make sure.

It would be embarrassing to book a colleague on to a project and then find out that the last time he used those

skills was on another project with you three years ago.

Other people in the team might have got more relevant or updated skills, and they might be more appropriate for

this client engagement.

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 If no one is available with the skills you need, it’s time to think about
training.
 You may have people who could do the job with a bit of support.
 Can they be booked into training or coached before you need them
for a particular task on the project?
 If so, add this activity to your project schedule so that they can book
their time against their development and you can have confidence
that it’s actually happening.
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 TIP #5: REMEMBER TO BOOK EQUIPMENT

We tend to focus on resources as being the human kind, but here are other types of resource that are
important for projects.

 If you are working with a client in a consulting capacity, for example, you might not need any kit
beyond your own personal computer.

 But if you are designing software for a client, you might need access to your company’s test lab or
test equipment to make sure it’s fit for purpose before it goes to the client for user acceptance testing.

Equipment is another kind of resource that you can book. Schedule what you need so that it is
available for you when you need it.

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But if you don’t spend enough time planning your resource management,

 you risk your client asking you, “Why didn’t you think of that earlier?”

 Project delays happen when you don’t have the right people, so for a smooth process,

book who you need as soon as you can.

When you use these tips together, you can have confidence that you are securing the

right resources for your project, using the right process and they will have the right skills

to help you deliver fantastic outcomes for your clients.

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What Is Resource Planning?

 Resource planning organizes, identifies and lists the resources required to complete a project

successfully.

Resources are assets that are required to execute a project; a resource is a broad category and

includes equipment, tools, supplies, materials, time and people.

 A proper resource plan will map out the exact quantities of the necessary storable resources

(such as cash) and non-storable resources (like machinery or labor).

52
 WHAT ARE THE COMPONENTS OF
A RESOURCE PLAN?
A resource plan aims to use resources in the most efficient manner possible, thus
contributing to the overall productivity of the project.

This is furthered by properly allocating your project team where their skill set will
take the project the farthest.

The best is to have a constant flow of resources and make sure you’re using them
wisely and productively.

When resource planning, you should ask yourself the following questions about
the most key components : such as: 53
• What are the roles of the project team?

• What are the procurement needs of the project?

• What types of contracts are required?

• Are there any pre-qualification methods needed?

• What criteria will be used to select contractors or vendors?

• How much of the budget is allocated to resources?

• How will performance be measured in the project?

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 RESOURCE PLAN KEY TERMS
 Resource Plan: A detailed list of resources and the ways you will manage them

throughout the project. The more detailed, the better.

Resources Breakdown Structure (RBS): A resources breakdown structure creates

hierarchies of resources, according to the hiring organization (like a reporting structure or

team hierarchy) or by geography (such as all the teams or equipment required in Asia or

Africa).

Include all resources on which the project funds will be spent, but it’s up to you to define
55
 To better understand how to manage your resources in projects, we should first break down

different key terms that are often associated with resource management.

 Remember, resources are more than just your team—they’re also your equipment, assets

and office space. They’re everything, in fact, that has a cost required to complete the project.

Responsibility Assignment Matrix: A responsibility assignment matrix defines resources

according to various levels of responsibility for completing project tasks or for the overall

project.

Clarify the roles and responsibilities of the entire project.

56
Resource Overallocation: Overallocation simply means when a person is given too much
work, which can impact the budget and even derail a project.

It’s crucial that resources are balanced, so you’re going to need a way to stay on top of your
team’s workload throughout the life cycle of the project.

Resources Histogram: This provides a visual of the resources for anyone in the project who
needs to stay in the loop. It’s a quick and easy way to view the allocation of your resources
and note whether any are over- or under-allocated.

Resource Dependency: This refers to a theory that an organization should guard against
having all their eggs in one team basket.

That is, over-reliance on one team to accomplish core work (especially if it’s an external
team) can lead to workload blocks and resource shortages 57
Resource Leveling: Leveling resources is a juggling act, whereby you manage resource

availability across a project or across multiple projects. It can be accomplished by

extending the duration you had planned for certain tasks to be accomplished by adjusting

the start and end dates, depending on whether you have the resources to complete them

now or not.

Stages of a Resource Plan

There are four main stages to resource planning one should follow to ensure your bottom

line stays firm and you are able to get the available resources when you need them.

This is also called the resource management life cycle. 58

1. Ascertain Resources

After you’ve evaluated the situation and determined what the objectives of the project are, you have to select the right

strategy and estimate the resources that you’ll need to reach that goal.

 Resource forecasting must be through as efficiently and cost-effectively as possible. These resources include labor,

materials, equipment, facilities and others, such as admin, subcontractors, etc.

2. Procure Resources

You need to start to assemble your team according to the skills and experience the project requires. Equipment must be

sourced, and contractors secured.

Some of the aspects of this stage of resource planning include developing team roles, procurement needs, contracts,
59
3. Manage Resources
At this point, you need to define the roles and responsibilities of your team, who is doing what.
Subcontractors’ roles also need to be defined.
If you’re using tools and equipment that is being rented for the project, then you must make sure
they’re returned in a condition that meets the requirements of the contract.
Any facilities must be maintained, too.
There will be issues, of course, and when they occur you have to identify, define, investigate and
analyze, solve and then review.
4. Control Resources
Somewhat different from managing resources is controlling your resources, which means monitoring
the resources during execution to make sure they’re delivering the results that are expected of them.
What this boils down to is something called the resource utilization rate, which measures how
efficiently you use the resources.
 If the utilization rate is too low, action must be taken, such as a cost-benefit analysis.
You should always be evaluating outcomes to make sure you stay on track.
60
4 TYPES OF PROJECT RESOURCES AND WHY THEY ARE
SO IMPORTANT
1: Human resources
2: Material resources
3: Financial resources
4: Time resources
What’s the best way to Manage your Project Resources?

 Every project requires resources to contribute to its implementation and ultimately its success.
 The successful management of a project translates into efficient steering of the various project
resources.
These must be determined as early as possible, ideally before the project is even launched.
You have to make sure that you use the resources that are essential to the smooth running of the project
and make sure that you optimize its management.

61
 1: HUMAN RESOURCES
Also known as "work resources", these are the most important because they are the ones who do the work. They
contribute to carrying out the tasks necessary for the smooth running and completion of the project.
In addition, human resources are coupled with cognitive resources because they are the ones who hold
the knowledge and know-how:
technical skills,
knowledge,
business expertise, etc.
They can be recruited internally or externally and can work on the entire duration of the project.
💡 Example of human resources:
individual professionals,
project managers,
projet teams,
legal entities.
62
 2: MATERIAL RESOURCES
Material resources include raw materials and machines, tools, equipment, software, premises, etc.

They include both resources that the company already possesses and those that it purchases or leases

to carry out the project.

They can be goods that are temporarily made available for the project, which can be used again later,

but also consumables that can be used in a given quantity and that have a unit cost.

💡For example, the goods consumed or the raw materials processed will not be available for new

use. The investment in these resources must be determined in terms of budget, time, and desired

quality. 63
 3: FINANCIAL RESOURCES
The financial resources correspond to the project budget, which will be
defined prior to the launch by the project sponsor.
They are used to finance:
the human and material resources of the project, generally covering the
remuneration of the actors of the project, the purchase of material resources
or their rental, other costs, such as travel expenses for example.
💡 Example of financial resources:
finance funds,
project budgets,
project grants.
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 4: TIME RESOURCES

Time resources are the periods of time available and used for the completion of each task.

The duration of a task will depend on the planned and available human resources.

☝ These resources are not inexhaustible: they have limits, hence the importance of knowing how to manage

them to achieve your objectives.

💡 Example of time resources:

project plan,

project schedule,
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 2.3 NEED-BASED
IDENTIFICATION
Need based projects: Projects of non-industrial sector have a different mission, directed
towards the welfare of the common people. They are grouped as follows:
-Balancing Projects
-Modernization Projects
-Replacement project
-Expansion Project
-Diversification project
-Rehabilitation/ Reconstruction project

66