THE PROJECT ENVIRONMENT

2.4 

THE PROJECT ENVIRONMENT 

Projects exist and operate within internal and external environments that have varying degrees of influence on value delivery. Internal and external environments can influence planning and other project activities. These influences can yield a favorable, unfavorable, or neutral impact on project characteristics, stakeholders, or project teams.

2.4.1 

INTERNAL ENVIRONMENT 

Factors internal to the organization can arise from the organization itself, a portfolio, a program, another project, or a combination of these. They include artifacts, practices, or internal knowledge. Knowledge includes lessons learned as well as completed artifacts from previous projects. Examples include but are not limited to :

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Process assets. 

Process assets may include tools, methodologies, approaches, templates, frameworks, patterns, or PMO resources. 

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Governance documentation. 

This documentation includes policies and processes. 

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Data assets. 

Data assets may include databases, document libraries, metrics, data, and artifacts from previous projects. 

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Knowledge assets. 

Knowledge assets may include tacit knowledge among project team members, subject matter experts, and other employees. 

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Security and safety. 

Security and safety measures may include procedures and practices for facility access, data protection, levels of confidentiality, and proprietary secrets. 

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Organizational culture, structure, and governance. 

These aspects of an organization include the vision, mission, values, beliefs, cultural norms, leadership style, hierarchy and authority relationships, organizational style, ethics, and code of conduct. 

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Geographic distribution of facilities and resources. 

These resources include work locations, virtual project teams, and shared systems. 

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Infrastructure. 

Infrastructure consists of existing facilities, equipment, organizational and telecommunications channels, information technology hardware, availability, and capacity. 

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Information technology software. 

Examples include scheduling software, configuration management systems, web interfaces to online automated systems, collaboration tools, and work authorization systems. 

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Resource availability. 

Examples include contracting and purchasing constraints, approved providers and subcontractors, and collaboration agreements. Availability related to both people and materials includes contracting and purchasing constraints, approved providers and subcontractors, and time lines. 

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Employee capability. 

Examples include general and specialized expertise, skills, competencies, techniques, and knowledge.

2.4.2 

EXTERNAL ENVIRONMENT 

Factors external to the organization can enhance, constrain, or have a neutral influence on project outcomes. Examples include but are not limited to:

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Marketplace conditions. 

Marketplace conditions include competitors, market share, brand recognition, technology trends, and trademarks. 

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Social and cultural influences and issues. 

These factors include political climate, regional customs and traditions, public holidays and events, codes of conduct, ethics,  and perceptions. 

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Regulatory environment. 

The regulatory environment may include national and regional laws and regulations related to security, data protection, business conduct, employment, licensing, and procurement. 

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Commercial databases. 

Databases include standardized cost estimating data and industry risk study information. 

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Academic research. 

This research can include industry studies, publications, and benchmarking results. 

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Industry standards. 

These standards are related to products, production, environment, quality, and workmanship. 

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Financial considerations. 

These considerations include currency exchange rates,  interest rates, inflation, taxes, and tariffs. 

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Physical environment. 

The physical environment pertains to working conditions  and weather.

2.5 

PRODUCT MANAGEMENT CONSIDERATIONS 

The disciplines of portfolio, program, project, and product management are becoming more interlinked. While portfolio, program, and product management are beyond the scope of this standard, understanding each discipline and the relationships between them provides a useful context for projects whose deliverables are products.

A product is an artifact that is produced, is quantifiable, and can be either an end item itself or a component item. Product management involves the integration of people, data, processes, and business systems to create, maintain, and develop a product or service throughout its life cycle. The product life cycle is a series of phases that represents the evolution of a product, from introduction through growth, maturity, and to retirement.

Product management may initiate programs or projects at any point in the product life cycle to create or enhance specific components, functions, or capabilities (see Figure 2-4). The initial product may begin as a deliverable of a program or project. Throughout its life cycle, a new program or project may add or improve specific components, attributes, or capabilities that create additional value for customers and the sponsoring organization. In some instances, a program can encompass the full life cycle of a product or service to manage the benefits and create value for the organization more directly.

Product management can exist in different forms, including but not limited to : 

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Program management within a product life cycle. 

This approach incorporates related projects, subsidiary programs, and program activities. For very large or long running products, one or more product life cycle phases may be sufficiently complex to merit a set of programs and projects working together. 

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Project management within a product life cycle. 

This approach oversees development and maturing of product capabilities as an ongoing business activity. Portfolio governance charters individual projects as needed to perform enhancements and improvements or to produce other unique outcomes. 

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Product management within a program. 

This approach applies the full product life cycle within the purview and boundaries of a given program. A series of subsidiary programs or projects will be chartered to achieve specific benefits for a product. Those benefits can be enhanced by applying product management competencies like competitive analysis, customer acquisition, and customer advocacy. 

While product management is a separate discipline with its own body of knowledge,  it represents a key integration point within the program management and project management disciplines. Programs and projects with deliverables that include products use a tailored and integrated approach that incorporates all of the relevant bodies of knowledge and their related practices, methods, and artifacts.