2.1.1 Project Environment

Question 1

Why do organisations use projects?

Answer 1

Organisations operate dynamically, often full of uncertainty and turbulence. Using projects, programmes and portfolios allows them to:

1. Enhance performance
2. Bring about change
3. Adapt, improve & grow
4. Deliver business value through the realisation of benefits that result from project work.

Project work represents intentional investment in development, enhancement and improvement.

Projects deliver the beneficial change required to implement, enable and satisfy the strategic intent of an organisation.

Question 2

Project environment - why do projects exist in the first place?

Answer 2

Businesses operate in changing environment that is creating problems, opportunities or business needs requiring a response if threats at to be minimised, opportunities exploited and needs addressed.

Question 3

Tools and techniques used to determine factors which influence and impact projects.

Answer 3

PESTLE

SWOT

VUCA

Question 4

PESTLE

Answer 4

Method of examining different factors affecting an organisation and the project.

Assists the project manager in understanding external or internal influences on success or failure.

P - Political
E - Economical
S - Sociological
T - Technological
L - Legal
E - Environmental

Question 5

SWOT

Answer 5

Framework to systemically understand the strengths, weaknesses, opportunities and threats a project may face.

S - Strengths
W - Weaknesses
O - Opportunities
T - Threats

Allows for proactive approach of understanding weaknesses and avoiding threats.

Powerful in allowing project team to undercover opportunities that they may not have previously been aware of with other forms of comparison.

Question 6

How can PESTLE and SWOT be used in different ways?

Answer 6

PESTLE - can be used to consider environment and to establish options for consideration.
SWOT - can be used as an evaluation tool to test options being considered.

SWOT is more of a comparative analysis.

Both can raise more questions than answers, caution should be used when appraising outputs of traditional models eg. political, social or environmental concerns may require new ways of engaging with uncertainty.

Question 7

VUCA

Answer 7

Key implication of VUCA is that there is an inherent uncertainty that makes it difficult to predict and plan with great accuracy.

Enables managers to identify emerging opportunities, respond to new conditions and address shortfalls or differences in outcomes.

V - Volatility
U - Uncertainty
C - Complexity
A - Ambiguity

Question 8

Impact of the legal and regulatory environment on projects (WMGS)

Answer 8

1. Working conditions - governs what employers can expect from employees, what employers can ask employees to do & rights at work eg. working hours, leave, contracts, pay and dismissal/grievance procedures. PM must create right working conditions for project in accordance with legislation.
2. Management of workplace risk - Duty of PM and project personnel to understand risks in area of work and take steps to highlight and proactively manage risks. Individuals must have sufficient knowledge to maintain duties in compliance with the law. All employers must product H&S at work incl. employees, all other visitors and public.
3. Governance - sponsor is responsible for ensuring work is governed effectively. PM must provide high degree of assurance to sponsor that work is being managed effectively, responsibly and sustainably.
4. Sustainability - balancing environmental, social, economic and administrative aspects of work to meet needs to stakeholders without compromising or overburdening future generations.