Pages: 4

Decision-making processes can be simple or complex, rigorous or messy, quantitative or qualitative (or both). They can be applied to the most mundane of actions (Should I have a peanut butter sandwich or a salad for lunch? Should I sleep in or get out of bed?) and can be scaled up to guide potential undertakings by major companies, nonprofit organizations, and governments. We make decisions every day, most of them undocumented. Our decisions are affected by our perspective, known and unknown biases, level of tolerance for risk, past experiences, amount of available information, access to funds/resources, deadlines, influence by others, and so much more. We don’t always make the “right” decision, often discovering that after the fact.

Pages: 3

Before diving into the details of how to perform strategic project analysis, Chapter 1 discusses the two broad contexts in which it is used: engineering economics and welfare economics (evaluation). Some background is provided, and concepts and basic calculations are described. This section includes examples of when (and by what type of entity) each methodology is typically used.

Pages: 22

Chapter 2 explains the basic process for conducting analysis, using cost-benefit analysis as a starting point (although all analysis methods follow the same or a similar process). Each step is described in detail, and tools and guidelines are provided for improving analysis results and avoiding complications. Particular attention is paid to developing the analysis scope, the types of choices that need to be made during that step of the process, and the potential effects of those choices. Definitions of costs, benefits, and disbenefits are provided, with a list of examples. Approaches to (and issues with) quantification are then discussed, including costing, monetary values by proxy (shadow pricing), and the use of ordinal scales for ranking. Basic economic feasibility calculations are introduced next, followed by scenario ranking and selection. Concepts of assumptions and omissions are introduced and discussed. The section concludes with a discussion about benefits management and ex-post analysis.

Pages: 6

Having introduced basic concepts and the analysis process, the book then proceeds to discuss specific elements of analysis in detail, by chapter. Chapter 3 introduces the concepts of stakeholders, assurance, stakeholder engagement, and stakeholder standing as they apply to the analysis scope and impact the analysis. Success, failure, and value are discussed from the stakeholder perspective.

Pages: 8

Chapter 4 presents project risk and opportunity identification, management, and treatment. There are discussions about how risk may be treated in both financial analysis and evaluation.

Pages: 20

At this point, the book begins to delve into greater detail on the specific methods of inquiry and calculations used in quantitative and qualitative analysis. Chapter 5 presents the primary calculations used in financial/economic analysis, with a discussion of how and why each is applied. Concepts such as schedule, cash flow, and interest and discount rates are introduced, as they relate to the calculations presented. The chapter concludes with a discussion about lifecycle cost analysis, as an example of cost-benefit analysis that is applied to the longest possible scenario duration.

Pages: 15

Chapter 6 then presents qualitative approaches to analysis that may be conducted in lieu of the quantitative approach or used to supplement quantitative analysis. The use, ease of application, and challenges of each approach are discussed, with some examples. The primary calculations used in evaluation are also presented, with a discussion of how each is applied. Concepts such as weighting, ordinal scales, and ranking are examined in more detail, adding to the information provided in Chapter 2. Finally, several blended approaches are introduced and discussed, which combine quantitative and qualitative methods.

Pages: 12

Chapter 7 considers the effects that perspective, bias, and ethics have on the analysis. Different perspectives are described and discussed, and select biases are introduced, along with tips for overcoming those biases. The chapter concludes with a discussion about the ethical dimensions of each step in the analysis process.

Pages: 4

Having provided the basics of both quantitative and qualitative analysis, the book then pivots to the perspective of the reader and recipient of a strategic project analysis report. Chapter 8 revisits the concepts introduced in Chapters 1–7, discussing them in the context of potential pitfalls in and obstacles to understanding the analysis report. Critical thinking is used to guide the reader to an understanding of report context and the effects that funding, perspective, and objective might have on the outcome of the analysis. Next, there is a discussion about report quality and contents. Finally, a list of questions is provided that can be used to guide the reader through the critical questioning process necessary to assure themselves of the rigor, transparency, and accuracy of the analysis, report, and scenario selection recommendations.

Pages: 7

Chapter 9 introduces the concepts of sustainability and resilience in the context of societal value benefits and advocates for using sustainability and resilience goals to identify benefits and disbenefits during the analysis process. It discusses the timeframe required for benefits to be realized and the challenges that poses for analysis.

Pages: 19

Chapter 10 discusses strategic project analysis as applied for different types of projects, including the challenges experienced in analysis and the types of benefits that might be included or specifically excluded in the context of hidden long-term benefits and sustainability and resilience benefits. Construction project scenarios include public services, infrastructure, and private investment. Science and technology project scenarios include radio astronomy observatories and space-based solar power. Last, there is a discussion about policymaking.

Pages: 2

The closing comments recap some of the basic concepts in the book, touch on the use of artificial intelligence, and opine on the future of the practice.

Pages: 15

Solutions to the questions posed throughout the chapters