Project Management Lecture 9 Project Environment

Lecture 9- Project environment Project environment     Refers to elements existing outside the boundary of the organization Refers to external factors that influence a project’s success Task environment: Specific external factors that directly affect the day-to-day operations of a project or organization. These elements are also called project stakeholders General environment: Consists of broader, less immediate factors that indirectly influence a project or organization. These factors often operate on a larger scale and impact the organization in ways that are less specific or harder to control. Project stakeholders/ task environments       Stakeholders are a group of people who have interest in a project Majority of the stakeholders do not have direct control over the project If more people become interested in the project, it complicates the execution. Before initiating a project, project managers need to identify stakeholders who have interests in a project and strive to meet their needs. Some stakeholders may support the project while others oppose it. There is a need to balance the needs of stakeholders. Examples of project stakeholders is project customers/clients, project sponsor, suppliers, project committee and the project owner. It can also be public authorities, financial institutions, end-users, consultants and the media. Environmental factors           Refers to broader, more indirect external forces that affect the organization or project but do so in a less immediate and direct way. These are often macro-level factors that influence the entire industry or economy and can shift over time. While organizations cannot directly control these factors, they must adapt to them. Technological factors: Access to new technology is critical for projects. Physical factors: Factors such as weather and geological conditions which can affect projects, (rain, snow, types of rocks) Economic factors: These include interest rates, exchange rates, inflation, funding, etc. Labor related factors: Availability of project personnel with required skills Political factors: Government policies, regulations and laws Sustainability factors: conditions that ensure the project personnel align with sustainable demand. Cultural factors: values norms, traditions, and language which might affect the project. Stakeholder management    Is a critical aspect of project management that involves identifying, analyzing and managing the interests, expectations, and involvement of individuals or groups who have a stake in the project. The goal is to ensure that stakeholders are engaged, their needs and concerns are addressed, and they are kept informed throughout the project lifecycle. Effective stakeholder management helps in building positive relationships, minimizing resistance, and increasing the chances of project success. Stakeholder management process      Stage 1: startup o This is the initiation phase, obtain information which can be necessary in stakeholder mapping. Stage 2: identifying stakeholders o Identify people or groups who have interests in the project Stage 3: analyzing the stakeholders o Once stakeholders are identified, the next step is to analyze their interests, influence and potential impact on the project. o Includes understanding:  Level of influence  Level of interest o Savage two-dimensional model: classifies stakeholders into 4 categories. o SWOT-analysis can also be used to analyze the stakeholders. Stage 4: strategy and actions o Based on the analysis, a tailored engagement strategy for each stakeholder group is developed Stage 5: follow up o This is more a review process where the project manager evaluates the effectiveness of the stakeholder management strategy Types of stakeholder relationships      Classic market: this relationship focus on short term exchange. Third party: the organization relates with stakeholders through a third party. This third party is usually called boundary spanner and can be a professional who can offer advice to the organization. Open and direct: parties establish open and direct relationships. Integrated teams: collaborative form of relationship between project and stakeholders. For example, a bank collabs with construction company. Partnering: high degree of collaboration without any boundary between parties.