This chapter emphasizes the importance of the project initiation process: that launching a new project should rely on disciplined, thorough analysis, and that any project, no matter how valuable, must be considered in the context of the organization's other projects and strategies. It explores project initiation into the context of the entire project life cycle, examines the skills and techniques required during initiation, and recommends guidelines for turning a problem or an opportunity into a project proposal. The chapter also introduces a powerful technique, the logical framework approach, which has been proven on major projects around the world, yet has only recently found its way into corporate decision‐making processes. Finally, it shows how proposal content reflects portfolio selection criteria.