The role of feasibility studies on project and organizational performance

Every business organization wants to succed in her business and improves in her performance. Feasibility study has been identified as one of the key factors to reach such cardinal objective. Many projects and many business organisations have failed to achieve this goal because they do not begin or understand the implications of conducting a feasibility study. This paper therefore examined the effect of feasibility studies on project and organizational performance. It equally sought to determine the reasons and causes of project failures irrespective of conducting feasibility studies on such projects. Data utilized for the study were from both primary and secondary sources. The population of the study was 428 staff of Project Development Institute (PRODA) Enugu. A sample size of 207 was determined from the population using Taro Yamane's formular with stratified random sampling technique used in selecting respondents for the study. Statistical techniques such as frequencies, Percentages and Relative Importance Index were used to analyze the data. Our findings revealed that the conduct of feasibility studies to a very positive extent improves organizational performance, because it enables the organization to identify the flaws, challanges and unforeseen circumstances that might affect the progress of the organization with a view to taking appropriate preventive measures. The findings also revealed that though, the conduct of feasibility study is important both to existing and new business, but there are other critical factors which if not considered will negatively affect the organization no matter passing the feasibility test like sheer incompetence, downright dishonesty and employment of unsuitable staff. In view of our findings, it was recommended that for a feasibility study to stand the test of time, correct assumptions must be based on correct facts. Management should not only see the conduct of feasibility studies as prerequisite to organizational performance, also employement of competent, honest and suitable personnel are also critical to organizational growth.