THE ENVIRONMENT IN WHICH PROJECTS OPERATE

OVERVIEW
Projects exist and operate in environments that may have an influence on them. These
influences can have a favorable or unfavorable impact on the project. Two major categories
of influences are enterprise environmental factors (EEFs) and organizational process assets
(OPAs).
EEFs originate from the environment outside of the project and often outside of the
enterprise. EEFs may have an impact at the organizational, portfolio, program, or project
level.
ENTERPRISE ENVIRONMENTAL FACTORS
Enterprise environmental factors (EEFs) refer to conditions, not under the control of the
project team, that influence, constrain, or direct the project. These conditions can be internal
and/or external to the organization. EEFs are considered as inputs to many project
management processes, specifically for most planning processes. These factors may enhance
or constrain project management options. In addition, these factors may have a positive or
negative influence on the outcome. EEFs vary widely in type or nature. These factors need to
be considered if the project is to be effective.
EEFS INTERNAL TO THE ORGANIZATION
The following EEFs are internal to the organization:
 Organizational culture, structure, and governance. Examples include vision, mission,
values, beliefs, cultural norms, leadership style, hierarchy and authority relationships,
organizational style, ethics, and code of conduct.
 Geographic distribution of facilities and resources. Examples include factory
locations, virtual teams, shared systems, and cloud computing.
 Infrastructure. Examples include existing facilities, equipment, organizational
telecommunications channels, information technology hardware, availability, and
capacity.
 Information technology software. Examples include scheduling software tools,
configuration management systems, web interfaces to other online automated
systems, and work authorization systems.
 Resource availability. Examples include contracting and purchasing constraints,
approved providers and subcontractors, and collaboration agreements.
 Employee capability. Examples include existing human resources expertise, skills,
competencies, and specialized knowledge.
EEFS EXTERNAL TO THE ORGANIZATION
The following EEFs are external to the organization.
 Marketplace conditions. Examples include competitors, market share brand
recognition, and trademarks.
 Social and cultural influences and issues. Examples include political climate, codes of
conduct, ethics, and perceptions.
  Legal restrictions. Examples include country or local laws and regulations related to
security, data protection, business conduct, employment, and procurement.
 Commercial databases. Examples include benchmarking results, standardized cost
estimating data, industry risk study information, and risk databases.
 Academic research. Examples include industry studies, publications, and
benchmarking results.
 Government or industry standards. Examples include regulatory agency regulations
and standards related to products, production, environment, quality, and
workmanship.
 Financial considerations. Examples include currency exchange rates, interest rates,
inflation rates, tariffs, and geographic location.
 Physical environmental elements. Examples include working conditions, weather, and
constraints.
ORGANIZATIONAL PROCESS ASSETS
Organizational process assets (OPAs) are the plans, processes, policies, procedures, and
knowledge bases specific to and used by the performing organization. These assets influence
the management of the project.
OPAs include any artifact, practice, or knowledge from any or all of the performing
organizations involved in the project that can be used to execute or govern the project. The
OPAs also include the organization’s lessons learned from previous projects and historical
information. OPAs may include completed schedules, risk data, and earned value data.
OPAs are inputs to many project management processes. Since OPAs are internal to the
organization, the project team members may be able to update and add to the organizational
process assets as necessary throughout the project. They may be grouped into two categories:
 Processes, policies, and procedures; and
 Organizational knowledge bases.
The project planning process is essential to laying the groundwork for a successful project.
But planning a project is not linear. The project manager might need to change things on the
fly to adjust plans to reality. For example, you could need to adjust the project timeline after
planning your resources to avoid burning out your employees. As a result, the project
planning processes can quickly become complicated!
In this guide, we’ll share a structured approach to project management planning that will help
you plan your future projects better.
When working with projects, the approach you choose will be the glue that holds your
planning and processes together. The below methodologies, methods and frameworks are
designed for managing the project lifecycle.

1. PRINCE2
PRINCE2, which stands for PRojects IN Controlled Environments is a method that provides
you with principles, themes and processes to follow when it comes to the planning and the
execution of your project. With a clear outline of how you should approach your project,
PRINCE2 will support you in your planning stage by stage.
According to Allan Thomson, Axelos Propath Product Ambassador, PRINCE2 is generic in
nature so that it can be applied to any project regardless of scale, type, organisation,
geography or culture. “The specialist aspects of any type of project are easily integrated with
the PRINCE2 method and provide a secure overall structure for the project by focussing on
describing whatneeds to be done, rather than prescribing how everything is done.”
PLANNING STAGES
Determine the project goals and objectives.
Determine the project scope.
 Your project scope protects you from unrealistic expectations, conflicting interests,
and unattainable demands as the project progresses.
Build your work breakdown structure (WBS)
 At this stage, start determining which tasks, subtasks, and deliverables must be carried
out to complete the project. You can do this by referring to your scope and creating a
work breakdown structure—a structured decomposition of tasks needed to complete a
project.
Set timelines
 Project timelines help you estimate the completion date and keep things on track.
Timelines are usually plotted on a Gantt chart or in a resource management tool like
Float.
PRINCE2
PRINCE2, which stands for PRojects IN Controlled Environments is a method that provides
you with principles, themes and processes to follow when it comes to the planning and the
execution of your project. With a clear outline of how you should approach your project,
PRINCE2 will support you in your planning stage by stage.
According to Allan Thomson, Axelos Propath Product Ambassador, PRINCE2 is generic in
nature so that it can be applied to any project regardless of scale, type, organisation,
geography or culture. “The specialist aspects of any type of project are easily integrated with
the PRINCE2 method and provide a secure overall structure for the project by focussing on
describing what needs to be done, rather than prescribing how everything is done.”
PROJECT STAKEHOLDERS AND ORGANISATIONAL STRUCTURES

THE ROLE OF THE PROJECT MANAGER

The project manager is the person assigned by the performing organization to lead the team
that is responsible for achieving the project objectives. The role of the project manager is
distinct from the role of the functional or operations manager. Operations managers are
responsible for ensuring that business operations are efficient. Depending on the
organizational structure, a project manager may report to a functional manager. Project
managers also work closely and in collaboration with other roles, such as a business analyst,
quality assurance and subject matter experts.

RESPONSIBILITIES AND COMPETENCIES OF THE PROJECT MANAGER

As project management is a critical strategic discipline, the project manager becomes the link
between the strategy and the team. Projects are essential to the growth and survival of
organizations. The project manager’s role becomes increasingly strategic. However,
understanding and applying the knowledge, tools, and techniques that are recognized as good
practice are not efficient for effective project management. In addition to any area specific
skills and general management proficiencies required for the project, effective project
management requires that the project manager possess the following competencies.

 Knowledge- refers to what the project manager knows about project management.
 Performance-refers to what the project manager is able to do or accomplish while
applying his/her project management knowledge.
INTERPERSONAL SKILLS OF A PROJECT MANAGER

Project managers accomplish work through the project team and other stakeholders. Effective
project managers require a balance of ethical, interpersonal and conceptual skills that help
them analyze situations and interact appropriately.

Interpersonal skills describes important skills such as:

 Leadership
 Team building
 Motivation
 Communication
 Influencing
 Decision making
 Political and cultural awareness
 Negotiation
 Trust building
 Conflict management
 Coaching
ORGANISATIONAL INFLUENCES ON PROJECT MANAGEMENT

Projects and project management takes place in an environment that is broader than the
project itself. Understanding this broader context helps ensure that work is carried out in
alignment with the organization’s goals and are managed in accordance with the
organization’s established practices. Organizational influences affect the methods used
for staffing, managing and executing the project. An organization’s culture, style, and
structure influence how its projects are performed. The organization’s level of project
management maturity and its project management systems can also influence the project.

ORGANISATIONAL CULTURES AND STYLES

Organizations are systematic arrangements of entities (persons/departments) aimed at

accomplishing a purpose, which may involve undertaking projects. An organization’s
 culture and style affects how it conducts projects. Cultures and styles are group
phenomena known as cultural norms, which develop over time. The norms include
established approaches to initiating and planning projects, the means considered
acceptable for getting the work done and recognized authorities who make or influence
decisions.

Organizational culture is shaped by the common experiences of members of the

organization and most organizations have developed unique cultures over time by
practice and common usage. Common experiences include, but not limited to:

 Shared visions, missions, values, beliefs and expectations

 Regulations, policies, methods and procedures
 Motivation and reward systems
 Risk tolerance
 Code of conduct, work ethic, and work hours
 Operating environments.
Cultures and styles are learned and shared and may have a strong influence on a project’s
ability to meet its objectives. A project manager should therefore understand the different
organizational styles and cultures that may affect a project. The project manager needs to
know which individuals in the organization are the decision makers or influencers and work
with them to increase the probability of project success.

PROJECT STAKEHOLDER MANAGEMENT

Stakeholders are all internal or external actors, social and economic partners of an
organization. The activity of the organization has a direct or indirect impact on these actors,
and these actors have a more or less important influence on the organization. The
organization is therefore accountable to all parties and must take into account their opinions.
It is important to identify stakeholders but there is also a need to plan stakeholder
management. This includes management strategies to literally engage them and generate
interest throughout the project. Depending on the nature of the project, there may be several
types of stakeholders that may have sometimes divergent interests. In some projects, some
stakeholders can play several roles at a time. Stakeholders may have a positive or negative
influence on a project. Managing stakeholders in a pro-active way is an important factor that
can influence the project success.

The stakeholder analysis synthesizes and summarizes information about all the people,
groups of people, organizations and institutions involved in one way or another by the
project. This involves identifying all actors involved in the action; to examine their respective
roles, interests, ability to participate or curb the project, estimate the degree of collaboration
or potential friction between the different parties. Depending on the type and size of the
project, there might be several types of stakeholders that have different requirements, goals
and objectives. A competent project leader recognizes the key impact that stakeholders can
have both to help and hinder the progress of the project. Careful stakeholder analysis and a
careful communication plan will maximize the project's chances of delivering deliverables on
time and in budget.

The management of the project stakeholders includes the processes necessary to identify the
persons, groups or organizations likely to affect the project or to be affected by it, to analyze
the expectations of the stakeholders and their impact on the project, but also to develop
appropriate management strategies to effectively mobilize stakeholders by involving them in
project decisions and implementation.

TYPES OF STAKEHOLDERS

Internal stakeholders

Internal stakeholders include general groups such as managers and employees (and/or
volunteer workers or other types of members, in not-for-profit organizations). For example
the procurement function may have to market itself to senior management or management
teams, or may have to communicate changes in purchasing policy and procedures to all staff.

External stakeholders

Businesses are increasingly aware of the need to maintain a positive reputation in the
marketplace, and this may require a more inclusive approach to stakeholder management
which recognizes the legitimate needs and concerns of wider, secondary or indirect
stakeholders. External stakeholders are likely to have quite diverse objectives and degrees of
influence.

Phantom stakeholders

People who are subject to, part of, or impacted by the project, yet have not formally been
identified by the project manager or project team as stakeholders.

THE PROJECT LIFE CYCLE AND PROJECT MANAGEMENT PROCESSES

PROJECT LIFE CYCLE

A project life cycle is the series of phases that a project passes through from its initiation to
its closure. The phases are generally sequential and their names and numbers are determined
by the management and control needs of the organization involved in the project, the nature
of the project and its area of application.

1. PROJECT INDENTIFICATION.

2. PROJECT DESIGN.

3. PROJECT IMPLEMENTATION.

4. PROJECT EVALUATION.

5. LESSON LEARNING
PROJECT IDENTIFICATION

 Identify what the project will focus on.

 Find out who should benefit and what their needs are.
PROJECT DESIGN

 Once it is decided to go ahead with the project

1. Start to think about the detail
2. Conduct further research on the people affected by a problem and how they are
affected.
3. Consider the risks to the project and how performance will be measured.
PROJECT IMPLEMENTATION

 During the implementation of the project it is important to:

1. Monitor and review the progress of the project and any outside changes that affect it.
2. The plans should be adjusted where necessary.
EVALUATION

1. Should be carried out during or after project completion.

2. Could be carried out a few months or years after project completion.
3. Assesses long term project impact and sustainability.
LESSON LEARNING

 Experiences and findings during project implementation should provide lessons for
organizational and future programming.
PROJECT MANAGEMENT PROCESS GROUPS

Initiating

The initiating process group is generally when a project is formally approved and assigned a
project manager. The group includes two primary processes: developing the project
charter and identifying the project stakeholders.

The two outcomes of this process group are the project charter document and
the stakeholder register. The stakeholder register lists who the project stakeholders are, what
their stake in the project is, and what they expect in regards to frequency and form of
communication.

The project charter should include the business case for the project (why it should be
completed), as well as a high-level overview of the project’s scope, deliverables, and
objectives.

Typically, a project charter will also include:

 Resources required
 Key stakeholders
  A high-level timeline with key milestones
 A high-level cost estimate
 Any known risks, issues, or dependencies

Planning

The planning group is the largest of the five process groups, consisting of 24 processes in
total. This group of processes is designed to help you plan your entire project in detail, from
the scope, schedule, and budget, through to how you will manage the key stakeholders. The
primary outcome of this planning stage is a project management plan (PMP).

For larger projects, the PMP may have sub-plans to further outline some of the critical areas,
such as the project schedule or quality management. For smaller projects, processes may
simply be covered in separate subsections or fleshed out in an appendix.

The PMP is a “living document” that is updated and revised throughout the project as
changes occur.

Executing

The executing group is where most of the action happens on a project. It is also where most
of the budget is spent and where the actual project deliverables are produced.

The executing process group includes ten project management processes. It is primarily
focused around managing project activities and tasks to ensure progress is occurring,
communications are happening, risk responses are being implemented, and stakeholders are
being engaged.

The most significant role for the project manager during this phase is directing and managing
the project work and managing the project knowledge (requirements documentation, meeting
minutes, lessons learned). Other typical responsibilities of the project manager
include acquiring project resources, developing and managing the project team, and
managing communications

Controlling and monitoring

The controlling and monitoring process group is the second largest, containing twelve project
processes. These processes happen throughout the entire project and are in place to ensure
there is sufficient oversight. This will also help identify and mitigate any potential issues.

Inevitably, something unexpected will come up during the project life cycle. The processes in
this process group are designed to help you update the plan, modify your team’s activities,
and get everything back on track.

One of the essential processes in this group is monitoring the project work. This requires the
tracking of the overall project and its key aspects. This process is critical in limiting overages
and project errors. Often, project management software is used to monitor and report on
progress.

Closing
The closing process group only has one primary process: close out the project or phase. This
process involves ensuring the customer has accepted all final phase or project deliverables.
Documentation should also be completed and stored and any loose ends of the project or
phase should be tied up.

NB. THIS LECTURE HANDOUT WORK AS GUIDE FOR YOUR STUDYING, IT IS

RECOMMENDED TO READ WIDELY FROM DIFFERENT SCHOLARS AND
JOURNALS.

REFERENCES AND FURTHER READING.

1. Project Management Institute (US)2013 A Guide to the Project Management Body of

Knowledge® (6th Edition) (pages 1 – 171) PMI Publications

2. Anderson E S: Grude K V Haug T Goal Directed Project Management [4th edition]

2002 Kogan Page/Coopers & Lybrand

3. Baker S; Baker K; 1998 The Complete Idiot’s Guide to Project Management Alpha
Books: Macmillan General Reference

4. Burke R; 2003 Project Management – Planning and control [4th edition] Management
Press

5. Mishra R.C. 2005 Modern Project Management

(PMZ COM&E Recommended Handbook edition for Project Management Students)