Top Management Story

Writen by Stephen S Alison

The purpose of the Feasibility Study phase is to confirm the business requirements and benefits of the project, identify and select the preferred or most advantageous solution and to prepare an Outline Schedule for the Delivery Stage.

Key Players - The key players within the Feasibility Study Phase are:

• the Feasibility Study Manager/Project Manager who is responsible for managing the Feasibility Study Stage;
• the Business Sponsor who is responsible for signing off the key deliverables;
• the Sponsor's Representative who is responsible for preparing the Full Business Case and representing the Business Sponsor on day-to-day issues an matters;
• the Business Sponsor's cost or profit center which is responsible for providing assistance in the production of the Full Business case and obtaining the necessary authorisation for the project to progress into Delivery;

Process Description & Recommendations

• The Business Sponsor should appoint a Feasibility Study Manager/Project Manager;
• The Feasibility Study Manager/Project Manager should plan the Feasibility Study Stage in detail, including the production of a document entitled the Terms of Reference for the Requirements Definition Phase;
• The Feasibility Study Manager/Project Manager should create the working environment including any necessary office accommodation, project filing system and specific management procedures including time recording management;
• As the Feasibility Study Phase progresses, the Business Sponsor should collect the information required to develop the benefits within the business case;
• The Feasibility Study Manager/Project Manager should conduct the Requirements Definition and produce the Requirements Definition Report to include:
• o The business objectives and strategy;
• o Functional and generic requirements;
• o Data models;
• o Data flow diagrams;
• o Recommendations;
• The Feasibility Study Manager/Project Manager should review the project with the Business Sponsor to revalidate its continued viability;
• The Feasibility Study Manager/Project Manager should produce the Terms of Reference for the Feasibility Study;
• The Feasibility Study Manager/Project Manager should undertake the Feasibility Study and produce the Feasibility Study Report which should:
• o Re-iterate the objectives and business requirements;
• o Specify the proposed solution;
• o Include a comparative analysis between the proposed solution and other options which were considered;
• The Sponsor's Representative, with assistance from Finance personnel and the Project Manager, should prepare the Full Business case;
• The Sponsor's Representative should issue the Full Business Case for review and agreement to:
• o The Business Sponsor;
• o The appropriate management area;
• o Information Technology representatives;
• o Finance Division representatives;
• o Stakeholders;
• o Steering Committee members, if appropriate;
• The Finance Division, with assistance from the Business Sponsor should produce the Project Authorisation Form and obtain the requisite corporate authorisation;
• The Business Sponsor should send a copy of the Full Business Case and the signed Project Authorisation Form to the appropriate management area to obtain the required resources and confirm funding for the project;

As in the Initiation Phase, The Business Sponsor should be responsible for continually monitoring the progress of the Feasibility Study Stage. If at any time he/she has doubts about the benefits or risks of the project, or that it will support the real business needs, it is the responsibility of the Business Sponsor to reconsider the initiative and, if necessary, terminate the work.