Undertake a Feasibility Study with a Project Management Template
Welcome to our newsletter for Project Managers Seeking Excellence. In this edition, you will learn the ‘ins and outs’ of feasibility studies and you will be given the opportunity to enter our June prize draw.
How to undertake a Feasibility Study…
So what exactly is a Feasibility Study and when do I complete it? Simply put, a Feasibility Study is an exercise which involves identifying a range of alternative solutions to a particular business problem or opportunity to be addressed by the project. Project Managers usually undertake a Feasibility Study early in the Initiation phase of a project, to identify a range of alternative solutions and determine which solution is most likely to satisfy the requirements of the customer.
To get the best out of your Feasibility Study, complete these 4 steps:
1) Identify the Problem. Before you begin identifying all possible solutions, you first need to first investigate each of the business environmental factors which led to the creation of the business problem / opportunity reported by the customer. Typical examples of environmental factors include:
- Changes to industry standards, laws or regulations
- The introduction of new competitors to the market
- A change in the business vision, objectives or strategies
- The creation and adoption of new technologies
- The setting of new performance targets within the business
Having identified the environmental and business drivers, you should now define the business problem / opportunity in real depth. Make sure you also describe the affect it’s having on the business, the timeframes it must be resolved within and the cost to the business if it’s not addressed at all.
2) List the Requirements. You’re now ready to list the requirements for a solution. Examples of requirements include:
- A new process to be implemented which improves efficiency
- A new business unit to deliver new services
- A new premise to provide more capacity
- A new computer system to provide more functionality
- A new technology platform to deliver higher stability
3) Identify the Solutions. Now that you understand the business problem and the requirements for a solution, you need to list each of the possible solution alternatives in your Online Project Management Template. You will then want to create a shortlist of alternative solutions before you undertake a detailed assessment of the feasibility of each.
4) Assess the Feasibility, by undertaking the following steps:
- Identify the methods used to assess the feasibility of each solution. For example you may wish to; create a prototype to test that each solution will deliver the desired results, do a staff survey to determine whether a new business process will be adopted or issue a customer survey to assess the potential demand for a new business product or service
- Undertake the assessment methods identified, to determine the feasibility result for each alternative solution
- List any risks and issues identified during the assessment
- Rank each solution based on the results, risks and issues
- Identify the solution with the highest overall ranking
- Create a Feasibility Study document which describes the business problem, requirements and the preferred solution, based on the results of the feasibility assessment
- Submit this document to the Project Sponsor for approval for the project to proceed with the creation of the preferred solution for the customer.
By completing each of these steps you will undertake more thorough, comprehensive and accurate Feasibility Studies using your project management template than ever before.
Download the Method123 Feasibility Study project management templates now to help you to
undertake Feasibility Studies for your project.