How to write a professional feasibility it is often the responsibility of the project manager to control such a process. The importance of writing the report lies in providing legal and technical evidence of the project’s viability, sustainability and cost-effectiveness. The reporting process allows the top management to obtain the necessary information needed to make key decisions regarding budgeting and investment planning.
How to write a professional feasibility study
- The scope of the project which is used to identify the business problem and/or opportunity to be addressed. The old write a professional feasibility adage, “A problem well explained is half solved” is a very apt saying. Scope should be specific and direct; A roving narrative serves no purpose and can confuse project participants. It is also necessary to identify the parts of the business that are affected either directly or indirectly, including the project participants and the areas of the end user affected by the project. The project sponsor must be identified, especially if he/she is paying the bill.
Existing analysis is used to identify and understand the current method of implementation, such as a system, product, etc. From this analysis, it is not uncommon to discover that there is nothing wrong with the current system or product other than some misunderstanding regarding it or perhaps it needs some minor tweaks rather than an overhaul. Also, the strengths and weaknesses of the current approach (pros and cons) are outlined. In addition, there may be very good elements of the existing system or product that can be used in its successor thus saving time and money later on. Without such analysis, this may never be discovered.
Analysts caution against the temptation to pause and correct any problems facing the current system at this time. Simply document the results instead, or else you’ll spend unnecessarily more time at this point (also known as “analysis paralysis”).
- Requirements and how requirements are defined depends on the topic of interest of the project. For example, how the requirements for a product are defined is fundamentally different from the requirements for an edifice, bridge, or information system. Each exhibits completely different characteristics, and as such, is defined differently. The way you define software requirements is also very different from how you define systems.
The approach represents the recommended solution or course of action to meet the requirements. Here, the various alternatives are considered along with an explanation of why the preferred solution was chosen. With regard to design-related projects, here complete approximate designs (for example, “designs”) are developed in order to determine feasibility. It is also at this point where the use of existing structures and commercial alternatives (eg, “build versus buy” decisions) are considered. However, the dominant considerations are:
Does the recommended approach meet the requirements?
Is it also a workable and viable solution? (Are you going to play at Poughkeepsie?)
A comprehensive analysis is required here to perform the next step…
- The evaluation examines the cost-effectiveness of the chosen approach. This begins with an analysis of the estimated total cost of the project. In addition to the recommended solution, other alternatives are estimated in order to provide an economical comparison. For development projects, an estimate of labor and personal expenses is compiled along with a project schedule showing the project’s path and start and end dates.
After calculating the total project cost, a cost summary and evaluation is prepared which includes things like cost/benefit analysis, return on investment, etc.
- Review that all previous items are then aggregated into a feasibility study and a formal review is conducted with all parties involved. The review serves two purposes: to demonstrate the thoroughness and accuracy of the feasibility study, and to make a decision on the project; Either you agree to it, reject it, or ask for a review before making a final decision. In the case of approval, it is very important that all parties sign the document expressing their acceptance and commitment to it; It may seem like a small gesture, but signatures carry a lot of weight later on as the project progresses. If the feasibility study is rejected, the reasons for the refusal must be clarified and attached to the document.
It must be remembered that the feasibility study is more of a way of thinking than a bureaucratic process. For example, what I just described is basically the same process we all go through when buying a car or a home. As the scope of the project grows, it becomes important to document the feasibility study especially if large amounts of money and/or delivery significance are involved. Not only should the feasibility study contain enough detail to proceed to the next next stage in the project, but it should also be used for comparative analysis when preparing the final project audit that analyzes what has been delivered against what has been proposed in the feasibility study.