The Life of a Project II: Identification of the Project Needs

The first part of the series started with an overview of the project management concepts, the project life cycle, and the project management process steps. In Part Two of the series, we dive deeper into the first phase of the project life cycle – Identification of Project Needs. We will learn more about identifying and selecting projects, creating proposal requests and the solicitation process.

Why is It Important to Identify the Needs of a Project?

The identification of project needs is not merely a procedural step; it forms the cornerstone of effective project management. By clearly defining and understanding the needs from the outset, project managers can align their strategies with stakeholder expectations, mitigate risks, and optimise resource allocation. This proactive approach lays the groundwork for successful project outcomes and helps navigate potential challenges during the project lifecycle.

Identification of Project Needs

Defining Project Needs

The first step in the project life cycle involves determining the needs of the project. What is the problem that we are trying to resolve? Why are we starting this project? The need could be identified as a result of a problem or an opportunity to improve. The overall goal of the project will always be to improve or take advantage of a particular situation.

Gathering Relevant Data

After the initial need identification, you will have to gather data. The data will assist you in understanding the magnitude of the problem or opportunity. Through quantifying the problem, you can determine if the expected outcome will outweigh the costs associated with the project. If the project's costs outweigh the benefits of the project, it might not be a feasible option to proceed with the project.

Documentation and Validation of Project Needs

Once project needs are identified, documentation is crucial for clarity and transparency. Creating a detailed record of identified needs, including their priority and interdependencies, provides a reference point throughout the project life cycle. Additionally, validating these needs with stakeholders ensures that there is mutual understanding and agreement, reducing the likelihood of misunderstandings or misalignments as the project progresses.

Continuous Review and Adaptation

As a project manager, there will be many times in your career to determine several needs for the company. Still, the company will have limited funds and people available to pursue the projects. This will put you in a position where you will have to decide on the project that will benefit the company at that given point.

Project Selection

Project selection is the process that you, as a project manager, will use to determine which of the company’s needs is the most important and should thus be pursued. Before selecting the project, you will have to weigh the different aspects of the projects against each other. This could include:

• The benefits of each project.
• The consequences of pursuing one project instead of another.
• The advantages and disadvantages of the different projects.
• The different aspects that influence a project can be qualitative, quantitative, and tangible.

Let's explain this as follows:

• Qualitative Benefits: Subjective advantages such as improved team collaboration and enhanced stakeholder relationships.
• Quantitative Benefits: Measurable gains like cost savings and increased revenue.
• Tangible Benefits: Observable and physical advantages, including infrastructure and technology.
• Intangible Benefits: Immeasurable advantages like enhanced brand reputation, customer satisfaction, and team morale.

Luckily, there are specific steps that you can follow to assist you in selecting the correct project:

1. Establish Criteria: Define evaluation criteria for each project, such as initial investment requirements.
2. List Assumptions: Identify project assumptions. For example, assuming a loan for project initiation.
3. Gather Project Information: Collect data on financial expectations, revenue streams, implementation costs, and operating costs for informed decision-making.
4. Project Evaluation: Evaluate projects based on the established criteria and collected information.

We suggest that you make use of a group of people to assist you with the selection process. Different people in the organisation have different views and would provide opinions based on those views. It could put things in another perspective for you.

After receiving all the feedback from your control panel, you will be in a position to choose the appropriate project to pursue. Next on your to-do list will be to prepare a request for a proposal.

Request for Proposal

The Request for Proposal (RFP) serves as an invitation to potential vendors, contractors, or service providers to submit detailed proposals outlining how they can meet the project's requirements. This document should articulate the project's goals, scope, and specific needs, allowing respondents to provide tailored solutions. Additionally, it is made available to prospective contractors/suppliers that could perhaps assist in completing the project. The suppliers then have the opportunity to present a presentation to the company, motivating why they would complete the current project and at what cost.

All RFPs don’t have to be a formal process; they could be informal. Informal RFPs could be in written format or presented orally.

Soliciting Proposals

After the RFP has been successfully created, it will be sent out to the suppliers. You can do this by identifying a closed group of suppliers you would like to invite or by giving anyone access to submit a bid.

As this is a competitive situation, it would be wise not to provide certain information that you are not prepared to share with all the suppliers. The goal of the RFP process is to get the right person for the project at the most competitive price.

Critical Success Factors

Below are some factors that are critical to the success of the need identification part of the Project Life Cycle.

• Define Project Goals: Clearly outline project objectives before creating an RFP.
• Prioritise High-Impact Projects: Choose projects with the most significant benefits for the company.
• Utilise Evaluation Committee: Employ an evaluation committee and robust criteria for objective project selection.
• Maintain Consistency in RFP Information: Ensure uniformity by not sharing information with certain suppliers that you wouldn't provide to others.

Conclusion

In part two of The Life of a Project, we looked at the identification of the project needs. IPM's Project Management Framework course is designed to help you achieve more goals by using the right tools and techniques of project management. The first step in the process focuses on identifying the business needs, selecting the most viable project to proceed with, putting together an RFP and sending out the RFP to possible suppliers. In part three of The Life of a Project, we will look at the next steps in the Project Life Cycle that focuses on developing a proposed solution for the project.