The project environment

Enterprise environmental factors – EEF

  • Organizational culture
  • Organizational structure (functional, matrix, projectized, composite)
  • Distribution of facilities and resources
  • Resource availability (manpower, machine, material)
  • Labor laws
  • Political climate
  • Environmental laws
  • Salary structures
  • Transportation facilities
  • Information systems
  • National holidays
  • Work culture
  • Climatic conditions (Weather conditions)
  • Waste disposal norms
  • Trade unions etc..

Can be internal or external to the organization.

Organizational process assets – OPA

  • Quality management systems
  • Reusable components
  • Proprietary data
  • Processes, procedures, guidelines, templates
  • Lessons learned
  • Databases
  • Project management information systems (PMIS)
  • Management information systems (MIS)
  • Organizational governance frameworks (structures, systems)
  • Organizational structures (Reference PMBOK V6 Page 47)
    • Organic or simple – PM has very less authority
    • Functional – PM has very less authority
    • Multi divisional – PM has very less authority
    • Matrix (cross functional teams)
      • Strong matrix – PM has moderate to high power
      • Weak matrix – PM has low power
      • Balanced matrix – PM has low to moderate power
    • Project oriented – PM has high to almost total power
    • Virtual (distributed teams) – PM has low to moderate power
    • Hybrid – Mix of other types – PM has mixed power
    • PMO (Project management office) – PM has high to almost total power
      • Supportive
      • Controlling
      • Directive

Why are the processes in PMBOK numbered from 4 onwards?

The processes in PMBOK are numbered from 4 onwards because chapters 1,2,3 contains the topics given below.

  • The standard for project management
  • The standard for portfolio management
  • The standard for program management
  • Code of ethics and professional conduct
  • Projects
  • Project initiation context
  • Projects, programs, portfolio and operations management
  • Organizational project management and strategies
  • Structure of PMBOK
  • Project and development lifecycles
  • Project phase
  • Phase gate
  • Project management processes
  • Project management process groups
  • Project management knowledge areas
  • Project management data and information
  • Tailoring
  • Project management business documents
  • Project business case
  • Project benefits management plan
  • Project charter and project management plan
  • Project success measures
  • Enterprise environmental factors
  • Organizational process assets
  • Organizational systems
  • Organizational structure types
  • Project management office
  • The role of the project manager
  • Project manager competencies
  • Comparison of Leadership and management
  • Performing integration

Project integration management comes under chapter 4. The first process under this knowledge area ‘Develop project charter’ is numbered at 4.1.

Project stakeholder management

If we can maintain the project stakeholders satisfied throughout the project, then the project is successful. The first step towards this is aggressive stakeholder identification and stakeholder’s expectation management. The positive expectations must be maximized where as the negative expectations must be minimized. While the stakeholder register will vary across projects, the following list contains the most common project stakeholders;

  • The sponsor (the entities funding the project)
  • Project managers (Owner’s PM, Contractor’s PM, Consultant’s PM, Discipline wise PMs)
  • Program managers (If the project under consideration is part of a program)
  • Portfolio managers (If the project under consideration is part of a portfolio)
  • Project management office (PMOs)
  • Consultants
  • Team members
  • Supervisors
  • Equipment manufacturers / Suppliers
  • Procurement management teams
  • Risk management teams
  • Quality management teams
  • Safety department
  • Planning department
  • Competitors
  • Statutory bodies

I am sure that a detailed analysis will extend this list further. If we have to perform a detailed stakeholder analysis, we need to;

  1. Identify the stakeholders
  2. Perform stakeholder analysis
  3. Manage stakeholder engagement in the project

The following two blog post of mine published at  Wrench elaborates these concepts further;

The art of managing project stakeholders – Part 1 

The art of managing project stakeholders – Part 2

 

The output of the stakeholder analysis is the stakeholder classification into the quadrants

stakeholderanalysis

The high power / low interest category of stakeholders must be kept informed about the project progress using a milestone chart (summary level information). The high power / high interest category of stakeholders must get more detailed view of the project at frequent intervals in the form of   Milestone charts, High level schedules, Risk rating matrix, Project ‘S’ Curves etc. The Low power / Low interest category can be ignored. The Low power, High interest category must receive the project progress details at a frequency which will ensure their interest in the project. Very often, the low power – high interest category is very powerful as a segment. For example :- The product review bloggers. They are the opinion leaders, and they must be proactively managed.

Summary

Stakeholder engagement is one of the critical success factors for every project. Project managers must proactively plan for effective stakeholder identification and management throughout the project. Since stakeholders power is directly linked to their organizational structure (functional, strong matrix, weak matrix, balanced matrix, projectized, composite), a proper study of the stakeholder’s positions, and their organizational structures will help in better project risk management and communications management.

pmp_kochi_kerala_india

 

 

Chekutty from Kerala

Hats off to social entrepreneurs Gopi and Lakshmi for implementing the brilliant idea of creating chekutty dolls from the handloom sarees and clothes destroyed by the Kerala floods 2018. They could raise considerable amount of money to help the weavers who lost their looms and stock. True story of grit and big hearts. Gopi is one person who visited us in person during Kerala floods 2018, just to say Hello to us,…which I can never forget. Wish him great success. I have a chekutty in my car. Since I know the origins of chekutty, and understand the trauma of the floods because we experienced it first hand, and the unity and the fighting spirit we demonstrated as a community during the flood, I have a special bonding to the chekutty doll and the project.

 

Impact of Artificial intelligence on Project Management

That is the future of project management

https://wp.me/p1GMg-hB

Forget Nostradamus – Here’s Tony O’Dowd’s IT Predictions for 2019

A quick update on the emerging trends.

https://wp.me/p3cjZq-3ac

Climate Change and India

A classical case for explaining enterprise environmental factors and their impact on projects.

https://wp.me/p54MZb-1wN

Japanese agency stops funding for Bullet train project

While teaching project management it is very interesting for me to teach stakeholder management where as it is not that interesting when it is about  ‘enterprise environmental factors’. One of today’s main news item is about the stoppage funding of the bullet train project by Modi, because the project team did not address the farmers grievances (fair compensation for the farmlands lost to this project). From a professional project management perspective, this is a very interesting case which combines stakeholder management and enterprise environmental factors.

Anybody who is affected positively or negatively by doing a project or by delaying a project or by not doing a project falls into the category of project stakeholders. Any thing that can affect a project like culture, national holidays, business rules, ethics, environmental regulations, waste disposal norms, working hours, trade union norms are all examples of enterprise environmental factors.   It will be very interesting to identify the key stakeholders of this bullet train project, and analyze how the enterprise environmental factors affect the decision making and stakeholder management.

Business today link 

National Herald

India times 

Lessons from a crowdfunding social service project

We started a crowdfunding project to construct a home for a family whose house got washed away during the Kerala floods 2018. This was our first experience in a crowdfunding project. Here are the lessons we learnt out of this project. 

Credibility of the idea and the promoters are the key success factors for every crowdfunding project.

Credibility of the promoters is the most difficult to achieve. It has to be built over a long period of credible track record.

During execution phase of the project, trust of all the stakeholders have to be built by bringing in absolute transparency of the project (funding, expenses, project progress, project risks, forecasts of time and cost). This is achieved through continuous communication. We used whats-app group, facebook page and the wordpress blog for this purpose.

Probability of scope creep is much higher in crowd funding projects, as the expectations of the beneficiaries escalate during the project execution, when they understand that it is funded by multiple people , hence the illusion that there is plenty of money.

There has to be a key project manager, who owns the entire project, and accountable to the sponsors.

For one of our projects, we started raising funds from people. Then another sponsor who was willing to sponsor the entire project turned up, scuttling our initiative to generate public interest in the project. In fact we started receiving donations for this project and we had to get the permission from the donors to use the funds for another similar project. Getting a single sponsor is good for the beneficiary and at the same time it is a risk for crowd funding.

Ensure that the beneficiary have not sought / applied or is eligible for any alternative funding, before going for crowd funding. Other wise it will lead to point 6. Sometimes we will be preventing a better opportunity (funding) by linking them to your crowdfunding project. There are many larger sponsors out there. So please check whether the project under consideration is eligible for any other source of funding.

Funds have to be distributed against the milestone completion only. Pay it directly to the vendors and service providers. Do not entrust money to the project beneficiary, as it can be misused.

If we are constructing a new house, the risk is very low compared to demolishing an existing house, as the ownership of raising sufficient finding to complete construction falls on the project manager. In such cases, do not even start without sufficient funding required to complete the project.

In new constructions, we have the freedom to start developing and show progress as soon as funds start coming in. This in turn will generate more interest among the sponsors, resulting in better funding.

We started with one project (home for a person whose house was washed away during the floods) based on impulse and intuition. That gave us more confidence to venture into the second project, and the funnel is growing. It would have been better if we had managed it as a program, with a standard design, bill of material, budgeting and funding for the program, than for individual projects. In this case we could have raised funds against the program, instead of individual projects.

Hope to come out with more lessons learned as we progress further.

Visit the crowdfunding project web site