Product development consists of different phases based on risk and reward, but the one constant in any development effort is feasibility.

A company may first perform feasibility activities to evaluate the technical or market viability of a product. At this early stage, only minimal funds may be lost if goals are not met. While financial commitment can range greatly depending on scope, the next phase of product development is typically a significant investment by the company. Defining and managing feasibility is critical to minimizing future project and product risks.

Successful feasibility studies greatly depend on having an overall strategy and process in place from the time of project inception. Having all key stakeholders agree on the specific objectives is crucial, as these key performance indicators (KPIs) will make or break the project and determine whether additional funds for continued feasibility or committed product development will be available. These measures of success should not be ambiguous. They must be clearly defined and may consist of title, description, testing approach, and acceptance criteria (minimum feasibility vs. commercial requirement).

KPIs should focus on technical metrics as well as operational and market-based indicators, and schedule is equally important to the feasibility study’s success. Can the feasibility of each KPI be determined in the allotted time? As limited budgets have become the norm, feasibility projects must be lean and efficient so the project team must always focus on the defined KPI level of scope.

Once KPIs are identified and approved, a project manager’s primary goal is to track to those measures. This is commonly done with a risk signal chart. Each KPI is scored based on the current risk level: demonstrated in feasibility, unlikely to demonstrate but confident to show in the next project phase, or unlikely to demonstrate but risk is acceptable.

Risk status should be frequently reviewed and evaluated with key stakeholders to show transparency on feasibility progress. While demonstrating KPIs is a primary goal of feasibility, it is also critical to keep decision makers engaged, which can be done by understanding the audience, their interests, and setting up ongoing, prototype demonstrations.

Feasibility studies are a critical tool for companies to stratify different product concepts based on their ability to result in a market-winning product. Successful feasibility study management and execution—demonstrating feasibility or lack thereof—is an essential process for product development companies and should not be undervalued.