Nazlawi business college

PMP
Chapter 2
(Environment in Which Projects Operate)
 Enterprise Environmental Factors (EEFs)
• 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. EEFs refers to conditions not under
the control of the project team and it could Internal and External.
• Examples of internal EEF’s  
• Organizational culture, structure, and governance
• Information technology software
• Geographic distribution of facilities and resources
• Resource availability.
• Infrastructure
• Employee capability
• Examples of External EEF’s
•  Marketplace conditions
•  Social and cultural influences and issues
•  Legal restrictions
•  Commercial databases
•  Academic research
•  Government or industry standards
•  Financial considerations
•  Physical environmental elements
•
 Organizational Process Assets (OPAs)
• OPAs are internal to the organization. These may arise from the organization itself, a
portfolio, a program, another project, or a combination of these. Organizational process
assets (OPAs) are the plans, processes, policies, procedures, and knowledge bases.
• Organizational process assets are grouped in two categories:
• Processes, policies, and procedures;
– Initiating and planning
– Executing, monitoring and controlling
– Closing
• Organizational knowledge bases;
– Configuration management knowledge bases
– Financial databases
– Historical information and lessons learned
– Issue and defect management databases
– Data repositories
• Processes, policies, and procedures are not updated as part of the project work and usually
established by the project management office (PMO). However, these can be updated only
by following the appropriate organizational policies associated with updating processes.
• Organizational knowledge bases are updated throughout the project with project
information
• Examples of OPA’s (Processes, Policies and Procedures)
– Guidelines and criteria for tailoring
– Specific organizational standards such as policies
– Product and project life cycles, and methods and procedures
– Issue and defect management procedures
– Change control procedures
Examples of OPA’s (Organizational Knowledge Repositories)
– Configuration management
– Historical information and lessons learned
– Project files from previous projects
 Organizational Systems
• Projects operate within constraints imposed by the
organization through their structure and governance
framework. The project managers need to understand
where responsibilities, accountability and authority
reside within organization as this understanding will help
them to effectively use their power, influence,
competence, and leadership. The organizational system
includes so many factors, the most important are:
– Management elements
– Governance frameworks
– Organizational structure types
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• A system is a collection of various components

that together can produce results not
obtainable by the individual components alone.
A component is an identifiable element within
the project or organization that provides a
particular function or group of related functions
• Systems are Dynamic, can be optimized, but
can’t be optimized with components at same
time, Systems are nonlinear in responsiveness.
Systems are typically the responsibility of an
organization’s management.
 Organizations Governance framework
• Governance refers to organizational or structural
arrangements at all levels of an organization designed
to determine and influence the behavior of the
organization’s members. they include: Rules, policies,
procedures,
• Project governance refers to the framework, functions,
and processes that guide project management
activities in order to create a unique product .
• There is no one governance framework that fits or may
be applied/ adapt by all organizations.
 Governance framework
• Framework within the authority is exercised in
organization, includes but not limited to:
– Rules, Policies, procedures Norms, relationships,
systems, processes
– And the framework influences how:
• Objectives of organization are set and achieved
• Risk is monitored and assessed
• Performance is optimized
 Project Management Office (PMO)
• A project management office (PMO) is an organizational structure
that standardizes the project-related governance processes and
facilitates the sharing of resources, methodologies, tools, and
techniques.
• Supportive PMOs provide a consultative role to projects by supplying
templates, best practices, training, access to information, and lessons
learned from other projects. This type of PMO serves as a project
repository. The degree of control provided by the PMO is low.
• Controlling PMOs provide support and require compliance through
various means. The degree of control provided by the PMO is
moderate. Compliance may include (Adoption of project management
frameworks or methodologies, use of specific templates, forms, and
tools, conformance to governance frameworks)
• Directive PMOs take control of the projects by directly managing the
projects. Project managers are assigned by and report to the PMO.
The degree of control provided by the PMO is high
 1

• PMO is the natural liaison between the organization’s

portfolios, programs, projects, and the organizational
measurement systems.
• A primary function of a PMO is to support project managers
– Managing shared resources
– Identifying and developing p project management mythology, best
practices, standards…
– Coaching, mentoring, training
– Coordinating the communication across the project
• The PMO may:
– Make recommendations
– Lead knowledge transfer
– Terminate projects
– Take actions as required
 Management Elements
• Management elements are components that comprise the key functions or
general management principles of the organization. Management elements
include:
– Division of work using specialized skills and availability to perform work
– Authority to perform work
– Responsibility to perform work
– Discipline of action
– Unity of command
– Unity of direction
– General goals of the organization
– Paid fairly for work performed
– Clear communication channel
– Right materials to the right person for the right job at the right time
– Fair and equal treatments of people in the workplace
– Clear security of work positions
– Open contribution to planning and execution by tech person
– Optimal morale
 Organizational structure types

• Organic or simple
• Functional (centralized)
• Multidivisional with replication for each division with little
centralization
• Matrix (strong)
• Matrix (weak)
• Matrix (balanced)
• Project-oriented (composite, hybrid)
• Virtual
• Hybrid
• PMO(portfolio, program, or project management office or
organization)
Factors in Organization Structure Selection

• Factors to consider in selecting an organization

structure include but not limited to”
– Degree of alignment with organization objectives
– Specialization capabilities
– Span control efficiency and effectiveness
– Clear line and scope of authority
– Delegation capability
– Physical location