Project feasibility study and its importance in project management
It is estimated that up to 70% of project management failures are due to a lack of feasibility and preparation.
A project feasibility study is an essential part of any successful project, as it allows you to check whether a given project is possible or not.
It's a detailed analysis of all factors that can influence the outcome of your project. A well-structured feasibility study will answer the most important questions: Is this project worth our time and money?
Are we giving ourselves enough time to complete the project without running into roadblocks? Are there any potential hurdles that we need to account for early on?
This article explains why a feasibility study is so important, what it means in practice, and what things you should consider if you're working on a new project.
What is a project feasibility study?
A project feasibility study analyses all the factors that can affect the outcome of a project.
A feasibility study aims to determine whether a project is worth pursuing or not—which is why it's sometimes also referred to as a "project feasibility analysis."
Projects that don’t go through a feasibility study often fail or get scrapped due to several reasons:
The client or stakeholders are not clear on what they want to achieve with the project, so it’s hard to know how long it will take or how much it will cost.
Projects that don’t have a clear scope and goals often don’t bring any value to the business.
They might get scrapped before they even begin. Projects that are not feasible are usually doomed from the start.
They usually take longer and cost more than expected because the team wasn’t well prepared.
Why is a Feasibility Study so important?
A project starts with an idea, and creating a project is the first step toward turning that idea into reality.
But, without the right foundation, even the most promising projects can fail and never see the light of day.
A feasibility study is all about checking and confirming whether a project is feasible and whether it can be done or not.
A feasibility study is the most important step in the project management lifecycle, as it can determine whether or not a project is worth pursuing.
It’s crucial to do your homework at the beginning of a project as some factors
- like the availability of resources or the competition in the market
- are impossible to change later on.
If you want to turn your project into reality, you need to make sure that it’s feasible. A feasibility study will help you determine whether or not your project is worth pursuing and how to go about it.
How to conduct a Feasibility Study?
A feasibility study usually has three parts:
1. The project's objectives, the SWOT analysis, and the risk assessment. The project objectives outline the main goals of your project.
2. The more specific you are about what you want to achieve, the easier it will be to measure your success at the end of the project.
3. The SWOT analysis is a useful tool for exploring the strengths, weaknesses, opportunities, and threats that can affect the outcome of your project.
It's the third part of the feasibility study, where you analyse the external environment in which your project will take place.
You can do this by looking at the following factors:
- The industry in which you’re working
- The type of project you’re working on (product development, service, construction, etc.)
- The stakeholders involved in the project
- The resources available to you
- And the risk assessment is a tool for exploring the risks that can affect your project.
A risk is anything that can affect the outcome of your project. It’s important to account for these risks as early as possible so you can either avoid them or find ways to deal with them.
Tips for a successful feasibility study
You can do several things to ensure your feasibility study is as successful as possible.
Knowing what you're getting yourself into and what mistakes to avoid can help you create a sound foundation for your project.
Here are some tips to help you conduct a successful feasibility study:
- Define your project’s goals
- Set clear expectations
- Get to know your stakeholders
- Do your research
- Assess the risks
- Choose the best project delivery method
- And remember that the results of your feasibility study will determine whether or not your project will go ahead.
If you’re careful about gathering the right information and creating a sound foundation for your project, you can avoid a lot of headaches down the road.
Your project is only as good as its foundation. A project feasibility study will help you determine whether or not your project is worth pursuing.
Doing your homework at the beginning of a project is crucial, as some factors are impossible to change later on.
To turn your project into reality, you must ensure it is feasible. A project feasibility study can help you do this.
It's important to remember that your feasibility study's results will determine whether your project will go ahead.
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