PREPARATION COURSE

PROJECT MANAGEMENT PROFESSIONAL

PMP
Chapter 2
ENVIRONMENTS IN WHICH
PROJECTS OPERATE

ENGG550 - Engineering Project

Management and Control
 Outline
Today ’s Discussion

• ENVIRONMENTS IN WHICH PROJECTS OPERATE

• ENTERPRISE ENVIRONMENTAL FACTORS

• ORGANIZATIONAL PROCESS ASSETS

• ORGANIZATIONAL SYSTEMS AND STRUCTURE

 Overview of EEF’s
• Projects exist and operate in environments that may have an influence on them.
• These influences can have a favourable or unfavourable impact on the project.
• Two major categories of influences are enterprise environmental factors (EEF’s) and organizational process assets
(OPA’s).

• EEF’s originate from the environment outside of the project and often outside of the enterprise.
• EEF’s may have an impact at the organizational, portfolio, program or project level.
• EEF’s refers to conditions not under the control of the project team and it could internal and external.

EXAMPLES OF INTERNAL EEF’s EXAMPLES OF EXTERNAL EEF’s

• Organizational culture, structure and governance • Marketplace conditions
• Geographic distribution of facilities and resources • Social and cultural influences and issues
• Infrastructure • Legal restrictions
• Information technology software • Commercial databases
• Resource availability • Academic research
• Employee capability • Government or industry standards
• Financial considerations
• Physical environmental elements 3
 Overview of OPA’s
− OPA’s 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 (OPA’s) are the plans, processes, policies, procedures and knowledge bases.

− 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.

O rganizational know ledge bases are updated throughout the project w ith project information.

EXAMPLES OF OPA’S EXAMPLES OF OPA’S

(PROCESSES, POLICIES AND PROCEDURES) (ORGANIZATIONAL KNOWLEDGE REPOSITORIES)
• Guidelines and criteria for tailoring • Configuration management
• Specific organizational standards such as policies • Issues and defect management data
• Product and project life cycles, methods and procedures • Financial data repositories
• Preapproved supplier lists and other contractual agreements • Repositories for metrics
• Change control procedures • Historical information and lessons learned
• Traceability matrices • Project files from previous projects
• Financial control procedures
• Templates
• Resource availability

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 Project Management Organizational Structures

• FUNCTIONAL
• PROJECTIZED
• MATRIX
o WEAK MATRIX
o BALANCED MATRIX
o STRONG MATRIX
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 Functional Structure

Functional organization CEO

• Grouped by areas of specialization/
functions. Power is with the functional
Functional Functional Functional
leader. Manager Manager Manager
• Advantages: access to specialists;
members reporting to only one
supervisor, clearly defined career
Staff Staff Staff
paths
• Disadvantages: less focus on project
Staff Staff Staff
deliverables, no career path on
project management, PM has no
Staff Staff Staff
authority

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 Projectized Structure

CEO
Projectized organization

• Organization is by projects. Project Project Project

Personnel report to PM/has total Manager Manager Manager
power.
• Advantages: efficient project
organization - loyalty to the project Staff Staff Staff
- effective communications.
• Disadvantages: no “home” after Staff Staff Staff
the project is completed -
duplication of facilities. Staff Staff Staff

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 Matrix Structure

Matrix organization

• Power varies between project & functional

managers according to its type (strong, balanced
or weak)
• Advantages:
• Maximum utilization of scarce resources
• Efficient horizontal & vertical dissemination of
information
• Retention of home after project closure.
• Disadvantages:
• Different priorities between PM & FM (conflicts)
• Dual reporting
• Complex to monitor and control
• Duplication of effort

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 Weak Matrix Structure
CEO

Functional Functional Functional

Manager Manager Manager

Staff Staff Staff

Staff Staff Staff

Project
Staff Staff
Coordinator
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 Balanced Matrix Structure
CEO

Functional Functional Functional

Manager Manager Manager

Staff Staff Staff

Staff Staff Staff

Manager Staff Staff

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 Strong Matrix Structure

CEO

Functional Functional Project

Manager Manager Management Unit

Project
Staff Staff
Manager

Project
Staff Staff
Manager

Project
Staff Staff
Manager

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