Everything you need to know about a career in project evaluation
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Every organization must make important decisions about the tasks and projects they wish to pursue over the coming fiscal year. Project evaluation, as a job role within a financial planning and analysis (FP&A) department, refers to the process of assessing the financial viability of proposed projects and providing recommendations to senior management about which projects to pursue. This involves analyzing various aspects of the project, including the projected costs and revenues, risks and uncertainties, and potential benefits to the organization.
The goal of project evaluation is to provide decision-makers with accurate and comprehensive information to enable them to make informed decisions about which projects to invest in and which to prioritize. This process is crucial to ensure that organizations are using their resources effectively and efficiently and are investing in projects that align with their strategic objectives and long-term goals.
To evaluate a project, financial analysts in FP&A typically use a range of tools and techniques, including financial modeling, forecasting, cost-benefit analysis, and risk assessment. They work closely with project managers, senior management, and other stakeholders to gather data and information, assess the potential impact of the project on the organization’s financial performance, and make recommendations based on their analysis.
Skills for Success in Project Evaluation
Strong analytical skills with attention to detail
Ability to work under pressure and manage multiple projects simultaneously
Excellent communication and interpersonal skills to collaborate with various departments and stakeholders
Business intelligence tools such as Tableau and/or Power BI for visualizations and data analysis
Key Stakeholders in Project Evaluation
As a project evaluator, you will work with various stakeholders, including project managers to evaluate potential projects and create project budgets, senior management to present financial analysis and recommendations, and various departments such as marketing, engineering, and operations to collaborate on projects. You may also will work with other financial analysts and members of the FP&A team for peer review and collaboration.
A Typical Day for a Project Evaluation Professional
A typical day in this role involves conducting financial analysis and creating financial models to evaluate project proposals, analyzing project budgets and forecasting financial outcomes, collaborating with project managers to evaluate potential projects and create project budgets, preparing reports and presentations to present to senior management, and providing recommendations to senior management based on financial analysis and forecasting.
Qualifications and Experience Required for Project Evaluation
To qualify for most positions in project evaluation, you will need a bachelor’s degree in finance, accounting, or a related field, along with two to five years of experience in financial analysis or FP&A. An accounting designation is often required as well, and knowledge of specific industry or business type may be preferable depending on the organization(s) you’re most interested in working with.
Compensation in Project Evaluation
Compensation for financial analysts in FP&A focused on project evaluation can vary depending on factors such as industry, location, and level of experience. Generally, this role falls within the mid-range of financial analyst salaries, with potential for growth and advancement within the company.
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