« Project Lifecycle Processes - Phase I - Initiation Phase
Project Lifecycle Processes - Phase 3 – Delivery Phase »

Project Lifecycle Processes - Phase 2 - Feasibility Study Phase

June 11, 2007 | Author: PM Hut | Filed under: Project Lifecycle Phases

Project Lifecycle Processes - Phase 2 - Feasibility Study Phase
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:
    • The business objectives and strategy;
    • Functional and generic requirements;
    • Data models;
    • Data flow diagrams;
    • 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:
    • Re-iterate the objectives and business requirements;
    • Specify the proposed solution;
    • 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:
    • The Business Sponsor;
    • The appropriate management area;
    • Information Technology representatives;
    • Finance Division representatives;
    • Stakeholders;
    • 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.

Stephen S Alison is a retired “bean counter” who spent 26 years in middle management positions for major US financial institutions in Europe and a further 10 years as an adviser/consultant to a number of European financial institutions. He owns and operates a number of “hand built” niche websites including: http://www.24carat-gold.com
http://www.forex-arbitrage.com

Share this article:
  • Digg
  • del.icio.us
  • Facebook
  • Google
  • blogmarks
  • LinkedIn
  • Reddit
  • StumbleUpon
  • TwitThis
  • Yahoo! Buzz

Related Articles

This entry was posted on Monday, June 11th, 2007 and is filed under Project Lifecycle Phases. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

No comments yet.

feel free to leave a comment

Comment Guidelines: Basic XHTML is allowed (a href, strong, em, code). All line breaks and paragraphs are automatically generated. Off-topic or inappropriate comments will be edited or deleted. Email addresses will never be published. Keep it PG-13 people!

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

All fields marked with " * " are required.

Project Management Categories