Project Management guide · Planning and scope
Feasibility Study in Project Management: Types and Steps
A feasibility study assesses whether a proposed project is practical and worthwhile before significant resources are committed. It helps decision-makers choose to proceed, change direction or stop.
Key takeaways
- A feasibility study tests whether a project is practical and worthwhile.
- It covers technical, economic, legal, operational and schedule feasibility.
- It should compare options, including doing nothing.
The five types of feasibility
| Type | Key question |
|---|---|
| Technical | Do we have, or can we get, the technology and skills? |
| Economic | Do the benefits justify the costs? See cost-benefit analysis. |
| Legal | Does it comply with laws and regulations? |
| Operational | Will the organisation and users adopt and run it? |
| Schedule | Can it be delivered in the time available? |
A common memory aid is TELOS: technical, economic, legal, operational and scheduling.
How to conduct a feasibility study
- Define the project scope and objectives at a high level.
- Describe the current situation and the problem.
- Identify options, including doing nothing.
- Assess each option against the five feasibility types.
- Estimate costs, benefits and risks.
- Recommend an option.
- Present findings to decision-makers.
What the report includes
- Executive summary and recommendation.
- Description of options.
- Findings for each type of feasibility.
- Financial analysis such as NPV.
- Key risks and assumptions.
- Next steps.
Free templates for this topic
Frequently asked questions
When is a feasibility study done?
Before or during initiation, before committing to the project.
Who conducts a feasibility study?
Business analysts, project managers or external consultants, with input from experts.
How long does a feasibility study take?
From days for small projects to months for major investments.
Is a feasibility study the same as a business case?
No. A feasibility study tests whether options are viable; the business case justifies the chosen option.
What is TELOS in a feasibility study?
An acronym for technical, economic, legal, operational and scheduling feasibility.
Can a feasibility study recommend not proceeding?
Yes. Stopping an unviable project early is a valuable outcome.
What tools support feasibility analysis?
Cost-benefit analysis, NPV, SWOT, risk assessment and sensitivity analysis.
Do small projects need a feasibility study?
A brief, informal assessment is usually enough.
What is a pre-feasibility study?
A quicker, high-level screening of options before a full feasibility study.
Who approves the feasibility study?
The sponsor or an investment committee, depending on the organisation.