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A feasibility study is an evaluation and analysis of the potential of the proposed project which is based on extensive investigation and research to give full comfort to the decisions makers. A feasibility study is essentially a process for determining the viability of a proposed initiative or service and providing a framework and direction for its development and delivery. It is a process for making sound decisions and setting direction. It is also a process which: is driven by research and analysis usually involves some form of consultation with stakeholders, community, users, etc. focuses on analyzing, clarifying and resolving key issues and areas of concern or uncertainty very often involves basic modeling and testing of alternative concepts and approaches
There is no universal format for a feasibility study. Feasibility studies can be adapted and shaped to meet the specific needs of any given situation.
Definition:
By Lahle Wolfe: A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question: Will the idea work and should you proceed with it? Feasibility Study is basically a study that is done to judge the viability of a new business venture. It is actually a preliminary analysis of a project that lets the people know that whether to proceed with a project or not.
Stakeholders: Stakeholder consultation will continue to play a major part of the project, particularly during the site visit. Engage closely with the local communities as they will be an invaluable source of information for the Feasibility Study. Independent Technical Advisor: An independent technical advisor will be used to provide technical advice and to review the Feasibility Study Report.
Resource Requirment
Service Delivery Financial Assessment of Preferred Options Recommendation
A feasibility study will: Verify community needs for a proposed leisure service Assess the benefits and overall value of a proposed service to the community Assess market conditions and trends Articulate a service concept (i.e. Format, content, theme, objectives/outcomes) Determine required resources (capital and operating) Determine costs and financing strategies (i.e. Financial analysis) Review service delivery options and recommend the most effective delivery strategy. Determine the citys role and impacts (financial, resources) in the delivery of the service Produce an implementation strategy for the development and delivery of the new service The following summarizes typical contents of a feasibility study. The level of detail, analysis and involvement may vary depending on the nature and scale of the proposed initiative. 1. Service Concept: Description Origin Conformance with City policies, goals and directions.
2. Community Benefits/ Outcomes Assessment: Personal Health - physical development, skills development, mental health reduces the risk of heart disease, stroke, combats osteoporosis, etc. Build strong families and healthy communities - ethnic and cultural harmony, community pride and identity, community participation, community heritage. Ecological Survival - environmental health, protect public open spaces, natural features, ecological functions, wildlife habitat, awareness and respect of environment. Economic Generator - business development, productive workforce, reduce taxes, tourism. Human Development - development of children & youths full potential, lifelong learning. Quality of Life - build self-esteem and positive self image, enhance life satisfaction, etc. Reduces self-destructive and anti-social behavior - crime, racism, isolation, alienation, etc. Reduces health care, social services and police/justice costs - foster care, incarceration costs, etc. 3. Community Needs Assessment and Market Analysis: Target markets/profiles (geographic/ demographic) Needs assessment (i.e. product or type of service) Market supply and competition Market share goals (production or service volume goals) Trends analysis- socio-economic, demographic, environmental, recreational, etc. Short term fad or long term need? Market growth potential Impacts to current markets. 4. Service Concept Development: Content Format Provision Levels Criteria/Standards (i.e. quality, accessibility, safety, customer service)
5. Resource Requirements: Capital- land, structure, space, furnishings, fixtures, equipment, computers, technological systems Facility provision options (rental/lease, renovations, re-using/re-adapting existing facilities, joint venture, new development) Operating- staff (administrative, instructional, supervisory/management), utilities, materials, supplies, etc.
6. Service Delivery/ Management Options Review service delivery options in light of the following criteria: Cost efficiencies Accessibility Affordability Leadership capacity and commitment Public interest Liability-regulatory considerations Service quality and customer responsiveness Resource/financing capacity Service integration and continuity City role, financial impacts, impacts to other programs, services, facilities.
7. Financial Assessment of Preferred Options Capital expenditure projections Operating cost projections Capital and operating financing strategies pricing, subsidy, grants, sponsorships, fund raising, etc. 8. Recommendations Preferred service delivery approach City role and impacts (i.e. financial, resources) Implementation strategy
Project Development
Background Research
Community Consultation
Final Recommendation
The following summarizes a typical feasibility study process for a community leisure service: Phase 1 Project Development: Identify stakeholders, develop a steering committee, produce a terms of reference, call RFP and retain consultant if necessary, consulting services agreement, refine process timelines and milestones, develop task teams, clarify roles and responsibilities, communications plan, etc. Phase 2 Background Research: Collect data, trends analysis, market analysis, community demographics profile, identify issues and opportunities related to contemplated service. Phase 3 Community Consultation: Community needs assessment through focus groups, forums, surveys. Phase 4 Service Concept Development: Develop service concept and format, resource requirements, capital requirements, service delivery alternatives, financial strategies, etc. Phase 5 Community Consultation and Market Testing: Obtain input on service concept and format, delivery alternatives, costing and pricing strategies. Focus groups, surveys, forums, etc. Phase 6 Final Recommendations: Develop final recommendations on the service format, preferred delivery approach, City role and involvement and implementation strategy.
Marketing Feasibility
Schedule Feasibility
Economic Feasibility
Operational Feasibility
Cultural Feasibility
There are many different types of feasibility studies; here is a list of some of the most common:
Technical Feasibility - does the company have the technological resources to undertake the project? Are the processes and procedures conducive to project success? Managerial Feasibility- Businesses which are complex requires significant experience on part of top management to run it. Management expertise is not only in technical knowhow but also in understanding market dynamics. Schedule Feasibility - does the company currently have the time resources to undertake the project? Is the project compatible in the available time? Economic Feasibility - given the financial resources of the company, is the project something that can be completed? The economic feasibility study is more commonly called the cost/benefit analysis. Cultural Feasibility - what will the impact on both local and general cultures be? What sort of environmental implications does the feasibility study have? Legal/Ethical Feasibility - what are the legal implications of the project? What sort of ethical considerations are there? You need to make sure that any project undertaken will meet all legal and ethical requirements before the project is on the table. Resource Feasibility - do you have enough resources, what resources will be required, what facilities will be required for the project, etc. Operational Feasibility - this measures how well your company will be able to solve problems and take advantage of opportunities that are presented during the course of the project Marketing Feasibility - will anyone want the product once its done? What is the target demographic? Should there be a test run? Is there enough buzz that can be created for the product? Real Estate Feasibility - what kind of land or property will be required to undertake the project? What is the market like? What are the zoning laws? How will the business impact the area? Comprehensive Feasibility - this takes a look at the various aspects involved in the project - marketing, real estate, cultural, economic, etc. When undertaking a new business venture, this is the most common type of feasibility study performed.
Project Development
Identify stakeholders
Background Research
Start the can it be done?
Community Consultation
Final Recommendation
Complete The feasibility Study report
Useful Tools
Guidelines on Stakeholder Engagement Guidelines on Feasibility Study Feasibility Study Report TEMPLATE
Actions Action Description 1 2 3 Review the project stakeholders to be consulted during the Feasibility Study Stage. Identify when stakeholders should be consulted in this Stage. Consult with the stakeholders as identified throughout the Feasibility Study Stage.
At the end of this step: The stakeholder consultation conducted in the Feasibility Study Stage is recorded in the Socially Acceptable section of the Feasibility Study Report.
2. Describe the Site Purpose Timing Note Useful Tools To develop a complete description of the eradication site. You will learn more about the site on each visit so the description of the site can be expanded as and when necessary.
Actions Action Description 1 Get to know the site. Note: Refer to the notes in The Site section of the Feasibility Study Report TEMPLATE, for the type of information needed. Record the information in The Site section of the Feasibility Study Report.
At the end of this step: The Site section of the Feasibility Study Report is complete. 3. Describe the Target Species Purpose Timing Note Useful Tools To describe the species to be eradicated and explain why. You will learn more about the target species and impacts during the site visit expand this section as you learn more about the target species.
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Actions Action Description 1 2 Gather all the information you have on the target species; the impact at the eradication site and the benefits of eradication. Record the information in The Target Species, Impacts and Benefits of Removal section of the Feasibility Study Report .
At the end of this step: The Target Species, Impacts and Benefits of Removal section of the Feasibility Study Report is complete. 4. Define the Goal, Objectives and Outcomes Purpose Timing Note To develop a clear understanding of what the eradication project will achieve. The Goal, Objectives and Outcomes may change as a result of the findings of the Feasibility Study. Review this step as you are writing the Can it be Done? Section and the Conclusion Section.
Useful Tools
Guidelines for Project Managers Feasibility Study Report TEMPLATE Feasibility Study Report WORKED EXAMPLE
Actions Action Description 1 2 3 Record the goal of the project in the Goal, Objectives and Outcomes section of the Feasibility Study Report. Record the objectives of the project in the Goal, Objectives and Outcomes section of the Feasibility Study Report. Record the outcomes of the project in the Goal, Objectives and Outcomes section of the Feasibility Study Report.
At the end of this step: The Goal, Objectives and Outcomes section of the Feasibility Study Report is complete. 5. Start the Can It Be Done? Section Purpose Timing Note To identify what further information is required to assess the feasibility of the project. This section of the Feasibility Study Report is generally completed via known information; desktop research and a site visit (see Step 2.7 Visit the Site and Update the Can It Be Done? section).
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Useful Tools
Guidelines on the Feasibility Study Feasibility Study Report TEMPLATE Feasibility Study Report WORKED EXAMPLE Guidelines on Choosing the Correct Eradication Technique Guidelines on Cat Eradication and Monitoring Techniques Guidelines on Bio-security Guidelines on Rodent Bait and Baiting Guidelines on Non-Target Species Guidelines on Managing Environmental Effects Guidelines on Stakeholder Engagement Guidelines on Consents and Permits
Actions Action Description 1 2 3 4 Review each of the seven criteria in the Guidelines on Feasibility Study and the template notes in the Can it Be Done? Section of the Feasibility Study Report. Complete research using relevant sources of information. Record the relevant information in the Can it Be Done? Section. Make a list of what further information is required to complete this section.
What you do know about the feasibility of the project is recorded in the Can it be done? Section of the Feasibility Study Report. You have a list of what further information is required to be obtained during the upcoming site visit.
6. Complete the Site Visit Bio-security Assessment Purpose To ensure the project team do not transport any invasive species to and from the island during the site visit. This, and all subsequent trips, to all islands must apply bio-security prevention measures. Your prevention measures may need to be reassessed as you learn more about possible invasive species threats. A comprehensive Bio-security Plan is completed in the Operational Planning Stage.
Timing Note
Useful Tools
Guidelines on Bio-security Feasibility Study Report TEMPLATE Feasibility Study Report WORKED EXAMPLE
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Actions Action Description 1 2 3 4 5 6 Identify the invasive species that could be a threat to the island. Identify the invasive species that are currently on the island. Record the known threats in the Sustainable section of the Feasibility Study Report. Plan the prevention measures the project team will apply when visiting the island. Write a pre-departure checklist to ensure prevention measures are applied. See the Bio-security Prevention Trip Checklist TEMPLATE for a suggested format. Record the measures in the Prevention Strategy column of the Invasive Species Table in the Sustainable section of the Feasibility Study Report.
The Sustainable section of the Feasibility Study Report contains details of the: identified invasive species, any other possible threat, and the bio-security prevention measures to be used by the project team A project-specific pre-departure checklist based on the Bio-security prevention trip checklist TEMPLATE is complete.
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7. Visit the Site and Update the Can It Be Done Section Purpose To gather the information identified in Step 2.5 - Start the Can It Be Done? section.
Useful Tools
Guidelines on Stakeholder Engagement Guidelines on Feasibility Study Feasibility Study Report TEMPLATE Feasibility Study Report WORKED EXAMPLE. Guidelines for Project Managers. Guidelines on Choosing the Correct Eradication Technique Guidelines on Cat Eradication and Monitoring Techniques Guidelines on Bio-security Guidelines on Rodent Bait and Baiting Guidelines on Rodent Identification Guidelines on Non-Target Species Guidelines on Managing Environmental Effects
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Actions Action Description 1 Review Step 1 Consult Stakeholders to determine how you will consult with relevant stakeholders, e.g. community, landowners, government departments, before and during the site visit. Review the list of further information required (from Step 2.5 - Start the Can It Be Done? section) and plan how you will use the site visit to gather the information. Identify the people who will form the feasibility study team to visit the island. Organize the site visit. Note: Includes consulting with the stakeholders identified in Action 1 above. For further information see Guidelines on Feasibility Study. Visit the site. Record details of the site visit in the Appendix of the Feasibility Study Report. Record the information you gather on the seven feasibility criteria, in the Can it Be Done? section of the Feasibility Study Report. a) Consider each criteria in the Can it Be Done? section and decide whether the project can meet these. b) Record the decision and explanation in each criteria section of the document. a) For each criteria, identify any issues that will need resolving to make the project a success. b) Record all identified issues in each criteria section of the document. Note: Solutions to issues are not required at this stage; these will be detailed in the Operational Planning stage. At the end of this step:
2 3 4
5 6 7 8
The Can it Be Done? section of the Feasibility Study Report is complete and contains:
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whether each criteria can be met, and any issues that need resolving. The Appendix of the Feasibility Study Report contains a report on each site visit.
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8. Assess the Feasibility of the Project Purpose Timing Note To use all the information recorded in the Can It Be Done? section and decide whether the project is feasible. As the feasibility of the project is assessed, the Goal, Objectives and Outcomes may need to change. Return to Step 2.4 and check whether you need to update them as a result of the findings of the Feasibility Study.
Useful Tools
Guidelines on Feasibility Study Feasibility Study Report TEMPLATE Feasibility Study Report WORKED EXAMPLE
Actions Action Description 1 2 Review all the information, decisions and issues in the Can it Be Done? section and decide whether, all things considered, the project is feasible. Record your decision (and the reasons for your decision) in the Conclusion section of the Feasibility Study Report.
At the end of this step: The Conclusion section of the Feasibility Study Report is complete and contains the overall decision and explanation of whether the project is feasible. 9. Complete the Feasibility Study Report Purpose Timing Note To complete the Feasibility Study Report. Depending on the reviewers comments you may need to have the Feasibility Study Report reviewed more than once before it is complete.
Useful Tools
Guidelines on the Feasibility Study Guidelines for Project Managers Feasibility Study Report TEMPLATE Feasibility Study Report WORKED EXAMPLE
Actions Action Description 1 2 Complete the Executive Summary and Introduction of the Feasibility Study Report. Record all documents used and referred to while preparing the Feasibility Study Report, in the References section.
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Record any other useful information in the Appendix of the Feasibility Study Report. Review all sections of the Feasibility Study Report to ensure it is complete. Have the Feasibility Study Report reviewed by independent technical advisors. For more information, refer to the Guidelines for Project Managers. Update the Feasibility Study Report to reflect reviewers feedback.
At the end of this step: The independently-reviewed Feasibility Study Report is complete.
10. Inform the Stakeholders Purpose Useful Tools Actions Action Description 1 2 Review the Socially Acceptable section in the Feasibility Study Report to confirm how you plan to communicate with each group of stakeholders. Communicate as planned, providing copies of the Feasibility Study Report (as required). To communicate the outcome of the Feasibility Study. Guidelines on Stakeholder Engagement.
At the end of this step: Stakeholders have been informed of the outcome of the Feasibility Study Stage.
2. Creating a New Product or Service: Building a routine process for feasibility studies within an organization helps develop a culture of experimentation without putting the entire company at risk.
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3. Changing an Existing Internal Process: Many project managers face the challenges of implementing new internal systems, like customer relationship management software or communications tools. Subjecting new ideas to a feasibility study before contracts are signed can keep a company from investing too heavily in systems or processes that will fail to gain traction or meet customer needs. 4. Deciding on a Partnership or Vendor: Shareholders and employees require assurance that a merger that looks good on paper will actually fly in the real world. Likewise, white papers and glowing customer testimonials from a prospective vendor wont matter if their product or service doesnt address critical issues. Feasibility studies become important tools to separate the reality of a deal from the short term gains enjoyed by participants.
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Records what you know about the project: During the Feasibility Study Report you will have gathered significant amounts of valuable information on the project The objectives, The site, The impacts and What you plan to do. All this information will be used again in the upcoming Stages. All is not lost if a project is not feasible at this point in time, it may become feasible in the future as new techniques are developed or technology becomes available. The work completed in the Feasibility Study can then be used.
The Feasibility Study Report can be used to support your funding application: Many funding organizations will fund the Feasibility Study and maybe the Project Design stage separately from the Operational Planning and Implementation Stages. While many funders will require you to complete their own funding application document, your Feasibility Study Report can be used as part of the application.
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