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Projects in Business Environments

Projects do not float in space; they actually operate in a business environment. Key factors influencing the Projects are Organizational Process Assets (OPA’s) and Enterprise Environmental Factors (EEF’s). OPAs may further be categorized into two main categories as Processes, Policies, Procedures and Corporate Knowledge Base. On the other hand, the EEF’s are further categorized in two major categories- Internal EEF’s and External EEF’s.  As per PMBOK Guide® – Sixth Edition, Internal EEF’s are further described as  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.   *Courtesy of PMBOK® Guide – Sixth Edition Page# 38 As per PMBOK Guide® – Sixth Edition, External EEF’s are further described as-   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. *Courtesy of PMBOK® Guide – Sixth Edition Page # 39 On the other hand, we have Organizational Process Assets. OPAs consist of the plans, processes, policies, procedures, and knowledge bases owned by the specific performing organization, which varies organization to organization widely. These assets have a huge impact on, the way projects are managed in any given organization. OPAs may further be categorized as: Processes, policies, and procedures and Organizational knowledge bases. The second category of the above listed is updated throughout the Project Life cycle according to the Project information as & when required; these typically include lessons learned, metrics & issues related to performance as well as financial performance information.  On the other hand, the first category of the OPAs are generally untouchables due to their development & enforcement by top management or PMO (usually from outside the Project) & may only be updated through proper procedural provisions enforced by the concerned entities. Any organization’s OPAs are utilized throughout the Project Life cycle so expect the involvement of OPAs in all Process Groups (Initiating, Planning, Executing, Monitoring, and Controlling and Closing) throughout the Project. The Organizational Process Assets usually include but are not limited to- Guidelines, policies, methods and procedures, templates, lists, sample agreements, Change control procedures, Traceability matrices, deliverables or result verification and validation procedures etc.      Organizations are composed of various systems which are the basic building blocks of any organization. Governance is one of these systems which exists as organizational or structural arrangements at various levels of the organization, these systems exist & function as frameworks which may contain Rules, Policies, Procedures, Norms, Relationships, Systems, and Processes etc. this list doesn’t exhaust here & may contain many other components. According to PMBOK Guide® – Sixth Edition, a number of organizational structures may be implemented as per the requirements of an organization. These various types may include: Organic or Simple, Functional (centralized), Multi-divisional (may replicate functions for each division with little centralization), Matrix – strong, Matrix – weak, Matrix – balanced, Project-oriented, (composite, hybrid), Virtual, Hybrid, PMO *Courtesy of PMBOK® Guide – Sixth Edition Page # 47 To standardize Project Management practices organization-wide, an independent organizational structure is created with the name of Project Management Office (PMO) which enables standardized methodologies, tools, techniques, and facilitation of shared resources. Based on responsibilities PMO may be of following different types: Supportive Controlling   Directive The spread of the PMO office’s responsibilities depends on organization’s needs as well as the view of top management towards the necessity & involvement. As the PMO plays a vital role in Projects delivery organization-wide so the typical responsibilities played by a PMO are: PMO takes care of Management of shared resources across all Projects. All the Project Management related methodologies, Best Practices, and Standards are identified & further developed/enforced by PMO. PMO is responsible for Training, Coaching, and Mentoring & Oversight. Project audits play a vital role in managing/monitoring compliance of Project Management Standards, Policies, Procedures, and Templates; which is another role played by PMO. PMO also handles development & management of OPAs, normally referred as project procedures, policies, templates, and various other documentation shared among the Projects. Lastly, management of inter-project communications.  
Projects in Business Environments
Muhammad
Muhammad

Muhammad Asim Rashid

Blog Author

Creating Program/Project plans and high-level schedule, providing the basis for the individual project plans. Monitoring and managing Program/Project constraints (Scope, Budget/Cost, Time, Risk, HR, Quality) etc. Handling stakeholder (Vendors, Supplier, Consultants, Govt. agencies, Regulators, and client) management
 

Posts by Muhammad Asim Rashid

Projects in Business Environments

Projects do not float in space; they actually operate in a business environment. Key factors influencing the Projects are Organizational Process Assets (OPA’s) and Enterprise Environmental Factors (EEF’s). OPAs may further be categorized into two main categories as Processes, Policies, Procedures and Corporate Knowledge Base. On the other hand, the EEF’s are further categorized in two major categories- Internal EEF’s and External EEF’s.  As per PMBOK Guide® – Sixth Edition, Internal EEF’s are further described as  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.   *Courtesy of PMBOK® Guide – Sixth Edition Page# 38 As per PMBOK Guide® – Sixth Edition, External EEF’s are further described as-   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. *Courtesy of PMBOK® Guide – Sixth Edition Page # 39 On the other hand, we have Organizational Process Assets. OPAs consist of the plans, processes, policies, procedures, and knowledge bases owned by the specific performing organization, which varies organization to organization widely. These assets have a huge impact on, the way projects are managed in any given organization. OPAs may further be categorized as: Processes, policies, and procedures and Organizational knowledge bases. The second category of the above listed is updated throughout the Project Life cycle according to the Project information as & when required; these typically include lessons learned, metrics & issues related to performance as well as financial performance information.  On the other hand, the first category of the OPAs are generally untouchables due to their development & enforcement by top management or PMO (usually from outside the Project) & may only be updated through proper procedural provisions enforced by the concerned entities. Any organization’s OPAs are utilized throughout the Project Life cycle so expect the involvement of OPAs in all Process Groups (Initiating, Planning, Executing, Monitoring, and Controlling and Closing) throughout the Project. The Organizational Process Assets usually include but are not limited to- Guidelines, policies, methods and procedures, templates, lists, sample agreements, Change control procedures, Traceability matrices, deliverables or result verification and validation procedures etc.      Organizations are composed of various systems which are the basic building blocks of any organization. Governance is one of these systems which exists as organizational or structural arrangements at various levels of the organization, these systems exist & function as frameworks which may contain Rules, Policies, Procedures, Norms, Relationships, Systems, and Processes etc. this list doesn’t exhaust here & may contain many other components. According to PMBOK Guide® – Sixth Edition, a number of organizational structures may be implemented as per the requirements of an organization. These various types may include: Organic or Simple, Functional (centralized), Multi-divisional (may replicate functions for each division with little centralization), Matrix – strong, Matrix – weak, Matrix – balanced, Project-oriented, (composite, hybrid), Virtual, Hybrid, PMO *Courtesy of PMBOK® Guide – Sixth Edition Page # 47 To standardize Project Management practices organization-wide, an independent organizational structure is created with the name of Project Management Office (PMO) which enables standardized methodologies, tools, techniques, and facilitation of shared resources. Based on responsibilities PMO may be of following different types: Supportive Controlling   Directive The spread of the PMO office’s responsibilities depends on organization’s needs as well as the view of top management towards the necessity & involvement. As the PMO plays a vital role in Projects delivery organization-wide so the typical responsibilities played by a PMO are: PMO takes care of Management of shared resources across all Projects. All the Project Management related methodologies, Best Practices, and Standards are identified & further developed/enforced by PMO. PMO is responsible for Training, Coaching, and Mentoring & Oversight. Project audits play a vital role in managing/monitoring compliance of Project Management Standards, Policies, Procedures, and Templates; which is another role played by PMO. PMO also handles development & management of OPAs, normally referred as project procedures, policies, templates, and various other documentation shared among the Projects. Lastly, management of inter-project communications.  
Projects in Business Environments

Projects do not float in space; they actually oper... Read More

Introduction to Project Management with Ref to PMBoK-06

The PMBOK® Guide – Sixth Edition is out & PMP exam is due to evolution once again, which has been announced by the PMI to be changed on 26th of March 2018. With this latest iteration of PMBoK guide, the whole profession of Project Management is being revamped. The need for an understanding of the latest iteration is mounting all over the globe, the Professionals holding PMP/PgMP/PfMP etc. credential, as well as people willing to earn one in near future are curious to know how this update will impact the profession as well as the upcoming exam & credentialing process? That’s the reason I am going to present this series of articles explaining the core ideas from each chapter of the PMBOK® Guide – Sixth Edition. The focus of each episode will be on core components of the relevant chapter, additionally, will try to compare the contents with the contents of the previous edition along with further discussion of ITT’s etc.       Chapter 01:  Introduction to Project Management The project management is not a new profession; thousands of years ago the wall of China, pyramids of Egypt, and a lot other historical marvels saw the light of the day due to the successful project management. In the recent days, the profession has grown a lot & developed into a branch of science in itself, which led to the delivery of projects like Hoover dam, ISS, Landings on moon & Mars and thousands of other projects worldwide.  PMI is in an effort to provide a common framework which is industry neutral & acceptable globally. These efforts led to the release of PMBOK® Guide – Sixth Edition, which is the latest buzz of the town. In following lines, I will explain the changes & updates introduced in this edition & will try to explain how these updates will affect the profession. The focus of PMBOK® Guide – Sixth Edition is to identify Best practices, Processes, Inputs, Tools & Techniques. The focal point of this guide is Project Management specifically, so the areas of Program & Portfolio Management are discussed up to a certain point only.   The same legacy relationship among Projects, Programs & Portfolios is continued in the latest edition as well, being the Projects on the lowest level and the Portfolio at the topmost level on the other hand, the Programs in the middle of the hierarchy. The Project level is for handling individual projects & the Program tackles with the interdependencies among the Projects & between the Projects and Program level to attain the optimal performance. The Portfolio Manages Projects, Programs, Sub-Portfolios, and Operations as a group to attain strategic objectives. The PMBOK® Guide – Sixth Edition’s key components are-   Project life cycle Project phase Phase gate Project management processes Project Management Process Group Project Management Knowledge Area As per PMBOK® Guide – Sixth Edition guide, the Project may be divided into four segments roughly, as follows-  Starting the Project Organizing and Preparing Carrying Out the Work Ending the Project  The concepts of Project lifecycle, Project phase, Phase gate, Project Management Processes, Project Management Process Groups, Project Management Knowledge Areas, Project Management Data and Information are as usual as were always. Project Managers are supposed to apply Project Management methodologies to their routine work, A methodology is basically a system of practices, techniques, procedures, and rules adopted for implementation by concerned professionals in their discipline.  Project management methodologies may be: Developed by experts within the organization, Purchased from vendors, Obtained from professional associations, or Acquired from government agencies.   So, these methodologies are open for tailoring & customization as & when required.  The Projects may contain a lot of documentation for the purpose of planning, tracking, reporting, controlling etc. Each Project starts with a Business Case which addresses the feasibility & need of Project. Another important aspect of the Project Management is the Project Success Measures, the major constraints of Project i.e. Scope, Time, Cost, Quality, which  are traditionally the most important factors in defining the success of a project. When defining the Project success, three major questions are to be answered by Key stakeholders & Project Manager.  What does success look like for this project? How will success be measured? What factors may impact success? The answers to these questions must be documented & agreed upon by the key stakeholders & PM. Additional criteria components are also attached with Project success, which is further linked to the organizational strategy & to the delivery of business results. The Project situation, harmonizing the demands, & enabling proactive communications throughout the project are to be handled by the project teams. So the overall efforts on project may be translated into successful delivery of Project deliverables/results or outputs.  Another vital aspect is the constant business alignment for the Project which eventually leads to an enhanced probability of Project success as a result of project alignment with the strategic direction of the organization.   
Introduction to Project Management with Ref to PMB...

The PMBOK® Guide – Sixth Edition is out & PMP e... Read More

What’s new in PMBoK-06th Edition

Yet it is interesting having a look on the upcoming changes & updates the new version will bring our way. Well, let’s have a look what we may expect: Iterative practices especially Agile As we already heard there is some new content to emphasize the importance and relevance of agile and other iterative practices. Unlike previous editions, the PMBOK®Guide –Sixth Edition will contain plentiful references to adaptive and iterative practices, including agile. This resulted in response to the demands of PMIs stakeholders. This content will include: Inclusion to The practices often used in an adaptive environment in the front of each Knowledge Area section (Sections 4–13). A supplement to The Standard for Project Management on agile and other iterative practices. PMI Talent Triangle™ PMI Talent Triangle™ has also enhanced its reflection in the upcoming PMBoK Guide Version. Sixth Edition contains a new chapter on the role of the project manager which debates the PMI Talent Triangle™ and the skill sets organizations require which make project managers more competitive and relevant—technical project management, leadership, and strategic and business management. Key Concepts Several key concepts are focused in the first three chapters, in Section I of the Standard concepts are concealed in abbreviated form. A description of the project management processes is included in Section II of the Standard, which is organized by Process Groups, along with their crucial benefits, inputs and outputs.  Processes; Process Groups and Knowledge Areas The Process Groups remain the unchanged in the Sixth Edition, though two Knowledge Areas has re-named: Project Time Management is renamed as Project Schedule Management, stressing the importance of scheduling in project management. This aligns with PMI’s Practice Standard for Scheduling. And Project Human Resource Management is renamed as Project Resource Management. It discusses both team resources and physical resources in the processes of this Knowledge Area. Three new processes are added in the Sixth Edition: Manage Project Knowledge is added in the Executing Process Group and Project Integration Management knowledge area. Implement Risk Responses is added in the Executing Process Group and Project Risk Management knowledge area. Control Resources is added in the Monitoring and Controlling Process Group and Project Resource Management knowledge area. Estimate Activity Resources is still slice of the Planning Process Group, but it is now shifted to Project Resource Management processes instead of Project Schedule Management processes. However we do not know about deleting processes at the moment, the overall number of processes appears to grow to 50! Additionally, some processes have been renamed. This is to align things with research reflecting that project management is more about facilitating and managing than controlling, several processes has shifted from a Control function to a Monitor function. In other cases, alignment to the process naming with the intent of the process. Here are the overall name changes. PMBOK 5th Edition PMBOK 6th Edition Perform Quality Assurance Manage Quality Plan Human Resource Management Plan Resource Management Control Communications Monitor Communications Control Risks Monitor Risks Plan Stakeholder Management Plan Stakeholder Engagement Control Stakeholder Engagement Monitor Stakeholder Engagement The function of the Close Procurement process has now been captured within Control Procurements and Close Project or Phase. Research indicates that limited number of project managers have the authority to formally and legally close a contract. Project managers are responsible to determine & conclude that work is complete, records indexed and archived, and responsibilities transferred appropriately. Hence, PMI now included work associated with Close Procurements within the above-mentioned processes. Project Management Plan Components and Project Documents The changes to the project management plan components and project documents: The components of the project management plan that are inputs to a process, or that are updated as outputs from a process, are not listed separately in the inputs or outputs. Rather, the project management plan is the input and project management plan updates is the output. Underneath the input/output table, a list of probable project management plan components is identified. Though, the components of the project management plan that will be inputs or updated depends on the needs of the project. Project documents are listed as an input and project documents updates is listed as an output, as applicable. Underneath the input/output table there is a list of potential project documents that may be inputs, or may be updated as an output. The needs of the project will determine the actual project documents that should be inputs or updated as an output. That’s it what we know about the upcoming changes& updates so far. There may be additional changes.We have to wait for updates from PMI & will keep sharing with you.
What’s new in PMBoK-06th Edition

Yet it is interesting having a look on the upcomin... Read More