What is a feasibility study?
A feasibility study is an early examination of the merits of an idea, proposal or project. It looks at whether or not it can be done, its likelihood of success and, perhaps most importantly, identifies the factors that could lead to success or failure. It gives an independent assessment that examines all aspects of a proposed project, including technical, economic, financial, legal, and environmental considerations. It is an objective assessment, not a sales pitch.
How to do a feasibility study
Feasibility requires the collection of evidence and the testing of that evidence. The type of evidence and testing depends on the proposal. For a new bridge, do soil testing. For a new product, test potential consumer demand and the cost to make it. If you are building a new public facility, test how often it will be used. A study always has to define its likely benefits (financial and non-financial) and its costs and to consider multiple scenarios, not just the most favoured one.
Why do a feasibility study
A feasibility study is an example of thinking before implementing strategy. The main reasons to do a feasibility study are to save time, money and effort doing something that won’t work. More specifically it will:
- Provide an independent assessment of the idea’s viability
- Identify the factors that will determine whether it should advance or not
- Explore a new opportunity at minimal risk
- Provide a foundation for a business case or funding proposal
- Clarify the realisable benefits
- Provide a clear roadmap for the next steps
- Provide clarity about strategic options
- Moderate the politics of competing projects
Who should do the feasibility study?
A person or team independent of the owner of the idea should do the study. They must be capable of doing the research and analysis and presenting the findings in a clear and coherent way. Whoever does it must not only be free of conflict of interest but also capable of recognising conflict of interest among consulted stakeholders and tempering that in their analysis. A separate team inside the organisation or an external consultant could do the feasibility study.
When to do it?
You should consider doing a feasibility study when the cost is high and the certainty is low and before detailed scoping or design or building starts. Do a feasibility study before a business case. A feasibility study presumes that, if it is viable, it can be funded whereas a business case presumes that it is viable before requesting funding. If you cannot presume viability, then do a feasibility first. A good study will allow you to monitor viability throughout the project or initiative and adapt plans or stop work if events threaten viability.
Contact us to discuss how we can help you implement your strategy or determine the best way to proceed. We can help you analyse your options, advise you on next steps and help you act with confidence
Phil Guerin, Consultant/Director, Hague Consulting Ltd. © Hague Consulting Ltd 2024. If you like this content, subscribe to our blog – it’s free!
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