Before giving the go-ahead to launch a project, the first thing on a project manager’s agenda is the feasibility study. While project managers are not required to conduct the feasibility study themselves, they use it as a guideline to drive the project and to get an end-to-end understanding of project parameters, business goals, and risk factors.
A feasibility study is an analysis done to determine the viability of a project from an economical, legal, and technical perspective. Simply put, it gives us an insight into whether a project is doable or worth the investment.
A feasibility study, that’s well-designed should offer insights on the description of the project, resource allocation, accounting statements, financial data, legal requirements, and tax obligations. It helps to determine whether the project is both possible and profitable for the company to undertake. Hence, this study is mandatorily done before technical development and project execution.
There are five types of feasibility studies based on the area that is examined:
This study takes stock of the technical resources available to undertake a project from an organization’s perspective. It includes ensuring that the technical resources are adequate, and the hardware and software requirements are met. Technical feasibility will also include if proven technologies and methodologies exist to support the proposed development.
This assessment performs a cost/ benefits analysis of the project before the financial resources are allocated. This type of study gives a clear-cut idea of project credibility (viability) as well as the economic benefits to the organization from the project.
In this type of feasibility study, the legal requirements of the proposed project are analyzed. Several parameters, ranging from zonal laws to data protection acts are checked, and compliance mandates are mapped out.
This study will help analyze and determine whether the organization’s goals can be satisfied by completing the project.
This is the most important assessment for project success. It estimates the time necessary to complete the project after considering the organization’ s capabilities and determines whether that amount of time is available.
Below are the benefits of doing a feasibility study in project management:
The following stages are involved while conducting any feasibility study, in general:
The feasibility study is an integral aspect of project management. Well-planned projects are less likely to fail. A detailed, well-defined feasibility study will only increase the likelihood of project success. To explore more concepts in project management like these, sign up for any one of our immersive series of project management workshops here.
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