The Value of a Feasibility Assessment and supporting Business Case

In project management, the feasibility study and business case stands as a cornerstone for any successful project. It serves as a critical document that justifies the initiation of a project, outlining the benefits, costs, and risks associated with it. This article delves into the importance of a business case in project management, highlighting five key points: strategic alignment, a measure in change, risk management, stakeholder engagement, and performance measurement.

Feasibility Study

A feasibility study is a comprehensive analysis conducted to determine the viability of a proposed project or business venture. It assesses various aspects such as technical, economic, legal, and operational factors to ensure that the project is feasible and worth pursuing. The primary goal of a feasibility study is to identify potential obstacles and provide a clear picture of the project’s chances of success. The greater the investment requirement, the more importance the feasibility study will hold.

Does the project make sense: With all knowns, based on the value created and the risks managed, does it make sense to complete the project?
How do we gather the inputs to get the outputs: The information which is needed to make an informed decision, this information comes from a variety of sources, namely stakeholders – Risk Accountable, Risk Responsible, Subject Matter Experts and anyone who can meaningfully contribute to the content.
Framing and Scoping Study: Ask yourselves the questions to inform your question in full. This is a facilitated session which can be iterated to get the full understanding. It is an essential requirement. Includes preliminary Analysis of what we know, any investigation work to find out what we need to know and a summarisation of the outcome. Question the economic, technical, resource, schedule, limitation and impact feasibility are all considerations in developing our understanding.

A feasibility study is a vital tool in project management that helps organizations make informed decisions about proposed projects. By evaluating technical, economic, legal, and operational aspects, a feasibility study provides a clear picture of the project’s viability and potential challenges. Developing a feasibility study involves a systematic process that includes preliminary analysis, detailed investigation, and report preparation. This comprehensive approach ensures that all relevant factors are considered, enabling organizations to proceed with confidence and clarity.

A feasibility study is a very involved body of work which AMREP are experts in compiling – please reach out directly to talk through how do this via our contact page

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Strategic Alignment

A business case ensures that the project aligns with the organization’s strategic goals and objectives, providing a clear direction for the project. This alignment is crucial as it helps in prioritizing initiatives that contribute to the organization’s long-term vision. Ultimately, it supports the project’s success and drives the overall growth of the organization. Organisational values, policies, strategy forecasts and other business important information all comes from strategic alignment. It is a requirement of the project manager to ensure they facilitate the drawing out of necessary information in building a strategic alignment. This alignment strengthens the credential of the business case.

Vision and Scope Alignment: Ensures the project supports the organization’s long-term vision and mission.
Prioritization of Initiatives: Helps in prioritizing projects that offer the most significant strategic benefits.
Performance Metrics: Establishes clear metrics to measure the project’s contribution to strategic goals.

Strategic alignment is vital as it ensures that resources are invested in projects that drive the organization forward. By aligning projects with strategic objectives, organizations can achieve a cohesive approach to growth and development.

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A Measure in Change

All projects are subject to change as understanding evolves, leading to adjustments in cost, schedule, and the forecast performance or quality of the project deliverable. These changes can impact the business case, necessitating its update to reflect the current and future state of the project. As new information becomes available, it is important to revise the business case to ensure it remains accurate and relevant. This continuous updating process allows the project team to progressively evaluate the project’s value and make informed decisions. By keeping the business case current, stakeholders can better understand the project’s trajectory and potential outcomes. Ultimately, this practice supports the successful management and completion of the project.

Change Impact: Understand what the impact means in terms of the outcome.
Schedule, quality and cost: These changes all need to be understood to evaluate the measure in full.
Be Honest with the Measures: Changes are sometimes downplayed. It is essential to the decision makers that the impacts of the change are qualified and known early.

As projects evolve, changes in cost, schedule, and performance impact the business case, necessitating regular updates to accurately assess the project’s value. Understanding and honestly evaluating these changes ensures decision-makers are fully informed of their implications.

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Risk Management

A detailed business case includes a thorough risk assessment, which involves identifying potential risks and planning mitigating controls. This evaluation helps in anticipating possible challenges that could impact the project. By proactively addressing risks, the project team is better prepared to handle issues as they arise. This approach minimizes the likelihood of project disruptions but also enhances the likelihood of success. Effective risk management is crucial for maintaining project momentum and achieving desired outcomes. Ultimately, a well-prepared business case with a strong focus on risk management is essential for the successful execution of any project.

Risk Identification: Identifies potential risks that could impact the project.
Risk Mitigation Strategies: Develops strategies to minimize or eliminate identified risks.
Contingency Planning: Establishes contingency plans to address unforeseen issues.

Risk management is a proactive measure that safeguards the project from potential setbacks. By identifying and addressing risks early, a business case ensures that the project can proceed smoothly, even in the face of challenges.

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Stakeholder Engagement

Engaging stakeholders is a critical component of project management. The stakeholders are the people who are accountable, responsible and experts to the outcome and the controls of the project. Their impact is critical to the best understanding of the project, its inputs and what needs to be done to see the project a success. The initial framing and scoping of a project needs to include the valuable input from the stakeholder groups to ensure the requirements are best informed.

Stakeholder Roles: Stakeholders are accountable, responsible, and experts in the project’s outcome and controls.
Critical Impact: Their involvement is essential for understanding the project, its inputs, and ensuring its success.
Initial Input: Including stakeholder input during the project’s framing and scoping ensures well-informed requirements

The framing and coping are informed by the stakeholders, their inputs will identify what is important to and makes up the business case. It is an essential requirement to include the stakeholders in the business case development and as the business case evolves.

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A strong process for business case development

The process is crucial to developing a robust business case. It begins with determining where to start and how to evaluate inputs effectively. Addressing uncertainties is another significant challenge that requires careful consideration. Gathering input from relevant stakeholders is essential to ensure the business case is comprehensive. Maintaining objectivity throughout the process is vital for credibility. All these aspects must be facilitated well to keep the business case relevant as the project evolves.

Effective Facilitation: An experienced project or portfolio manager has the experience to pull together the requirements to build the business case.
Complex made simple, simple made compelling: The business case complexities need to be structured to reflect your audience. Only include information which is important to the business case. Try not to fill it with distractions.
Be Honest with the outcome: The outcome will be the outcome, an honest approach to the business case means the stakeholders, particularly the accountable people will be informed earlier.

Developing a business case involves a structured process that addresses various challenges, such as determining where to start and how to evaluate inputs. It requires strategies for managing uncertainties, gathering input, maintaining objectivity, and explaining contingencies. Keeping the business case relevant as the project progresses is essential for its success.

Business case development - how we do it

A business case is an essential tool in project management. It ensures strategic alignment, measures in change, comprehensive risk management, robust stakeholder engagement, and precise performance measurement. By addressing these key areas, a business case not only justifies the project’s initiation but also paves the way for its successful execution. Organizations that invest time and effort in developing a strong business case are better positioned to achieve their project goals and drive sustainable growth.