Project Management Basics: The Environment in Which Projects Operate

Factors that influence a system

1. Governance framework 2. Management elements 3. Organizational structure types

In regards to Organizational Process Assets (OPAs), an organization's processes and policies are grouped into 3 categories

1. Initiating and Planning 2. Executing, Monitoring, and Controlling 3. Closing

uncontrollable conditions that influence, constraint, or direct a project

Enterprise environmental factors

Organizational arrangements designed to determine and influence the behavior of the organization's members

Governance

Governance Framework can influence

How objectives of an organization are set and achieved How risk is monitored and assessed How performance is optimized

If a PMO is supportive, what type of role does it provide and at what level?

It provides a consultative role and the control level is low

If a PMO is controlling, what type of roles does it provide and at what level?

It provides support and require assistance around compliance and the control level is medium.

If a PMO is directive, what type of role does it provide and at what level

It takes control and manages the project and controls at a high level.

Components that dictate the principles and functions of management in an organization

Management Elements

Examples of external enterprise environmental factors

Marketplace conditions Social and cultural influences Legal restrictions Commercial databases Academic research Government and industry standards Financial considerations Physical environmental elements

Defines the way different responsibilities are allocated between different entities of the organization

Organizational Structure

Examples of internal environmental enterprise factors

Organizational culture, structure, and governance Infrastructure of organization Geographic distribution of facilities and resources IT software Resource availability Employee capability

The plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization

Organizational process assets

Framework that guides project management activities in order to meet organizational, strategic, and operational goals

Project Governance

10 Primary Organizational Structures

Simple or Organic Functional (centralized) Multi-Divisional Virtual Hybrid Matrix-Strong Matrix-Weak Matrix-Balanced Project Oriented Project Management Office

Collection of various components that produce results not obtainable by the individual components alone

System

identifiable element that provides a particular function or group of related functions

System component

Examples of Management Elements

authority given to perform work division of work any discipline of action being paid fairly demonstrating that the goals of an organization take precedence over individual goals

What is a hybrid org structure?

combination of different types of organizational structures

What is a virtual org structure?

disseminated entity requires specific technology to work and communicate

What is a multi-divisional org structure?

organization is composed from multiple divisions which act independently (parent company - subsidiaries)

What is a functional (centralized) org structure?

people are organized into entities and departments based on their specialties

What is a matrix-balanced org structure?

similar to functional, but one of the employees assumes the role of PM and has double responsibility - operational and for the project

What is a matrix-strong org structure?

similar to functional, but there is a dedicated entity for PMO

What is a matrix-weak org structure?

similar to functions, but project coordination is done at lower levels of the org by a group of employees

What is a simple or organic org structure?

simplest org structure - presumes flat reporting and a large number of employees for each manager. typically interactions between employees are equal with authority

What is a project management office structure?

standardizes project related governance, processes, and facilitates, the sharing of resources, methods, tools, and techniques across a dept of entire organization

What is project oriented org structure?

structured and oriented around projects