Enterprise Environmental Factors And Their Impact On Project Management Essay.

Discuss About The Enterprise Environmental Factors Imply Conditions?

Environmental factors can have an effect over the project management in an environment, which is relatively stable. Through access to capital, technology, people, and projects will fail or success relying over the ability of the project leaders for making the highest use of available resources. Along with this, the unanticipated environment change might cause the well managed as well as smoothly project proceeding for losing the momentum.

Below are the internal and external factors and its effect on the process of project management:

Operational and organizational- they are mainly part of the administrative and operational procedures. It includes inaccurate and disorganized record keeping. Supply chain interruption, as well as faculty IT systems, are also considered as factors, one should need to evaluate. If one fails to overcome this, then customers might view it as unreliable, and one can even lose their data.

Strategic risks- this impact the ability of the company to meet the goals of the business plan. The same can be due because of the effect of changes occurring in demand of the customer and evolution of technology (Sharma, 2010). These factors might create a threat, as the same can alter how the customers can perceived the products. Relying on this, customers might think about the overpriced, outdated and dull product.

Innovation- the business requires innovation to keep the competition. It is important to move a step ahead. Innovation can be considered as the type of marketing. The same can be undertaken through the promotional initiative in the staff training, marketing plan as well as in welfare. Embracing the new technology is considered as the right way for keeping up the advancement of technology. The lack of innovation might create a risk to the booming business (Cadle, Eva, Hindle, Paul, Rollason, Turner & Yeates, 2014). No innovation can make the company stay boring. The organization will become irrelevant, dull and stagnant.

Financial- the financial risk relies on the business financial structure. It also depends on the financial system and business transactions. For instance, interest rate change or other it reliant on the customers, this might impact business (Cadle, Eva, Hindle, Paul, Rollason, Turner & Yeates, 2014).

Employee risks- Employees are critical to the success of the business, but it also related risk with it. For the industry, it is noted that strike action might create issues.

Internal factors

The external environment covers up all elements, which stays outside the project, which might impact it. It includes, but simultaneously it’s not limited to the below:

Global issues- if the company tries to cut across the global boundaries, and or either try to change the particular global policies or either the new global problems, it can impact the project.

Geographical setting- the project might get delayed, in those cases where unforeseen issues of environment crop up (Cadle, Eva, Hindle, Paul, Rollason, Turner & Yeates, 2014).

Skill availability- if the skills are needed for the project and the same is readily available or if they are not available in the measured monetary range, then in that case project might get delayed or either the project budget requires revision, which might not be possible.

Government regulations and standard- It is important that project manager should be aware of the present standard and regulations of the business, along with expected changes, which might impact the project (Cadle, Eva, Hindle, Paul, Rollason, Turner & Yeates, 2014).

It is important that project managers should be aware of the internal and external environmental problems, which can impact the project and help in attaining success.

Development of strategies to implement appropriate course of action

The main component in the engagement process is the involvement of every staff at every level of an organization. Engagement of staff supports in generating the additional inputs and supports in building the commitment in the end plan (Cook, 2001). It is important to involve the staff in the planning of direction and strategy for the company.

Strategic planning process gets successful when the top down approach of communication is considered within an organization. It begins with the communication taking place at all levels by involving employees in the strategic planning process (Winstead, 2010). It also includes how they can be involved in the strategic planning process.

Few strategic plans cover up strategies for developing the new product and for delivering the restructure and new service department (Crawford, 2014). They place teams of individuals to work on individual initiatives and provide them investment money, to ensure the success. There are companies, who ask their employees to become more innovative and ask them to create strategies for their new products and services (Project Management Institute, 2013). But they also fail in developing the innovative strategy, which covers up reshaping the organizational culture for innovation, and for implementation of a process for managing innovation.

External factors

Once the strategic plan is formulated, there is two main critical components link with project management. One is related with exploring the projects, which is needed to make sure about the success, during execution of every project strategy. Other is to develop the prioritization of projects for making sure about the high priority one hold, while proper resourcing to ensure project success (Kliem, 2007). It needs strong commitment and involvement on the part of the staff for spending the time required for the project.

Organizational culture is referred as the commonly held values, behaviour, attitude, and belief of the employees. The corporate culture is diverse and unique, just like the individual personality (Kliem, 2007). If the organizational employees consider that change is something that can be avoided, then, in that case, change implementation is reactive as well as haphazard.

Communication on project management processes and outcomes to diverse stakeholders

Project communication management process affects the knowledge areas of PMBOK project management like management of project cost. For instance, one needs to communicate the index of cost performance in the project for the appropriate stakeholders of an organization. The communication includes the dictated through the project communication management knowledge area process (Project Management Institute, 2013). The project management guide emphasizes over the knowledge area.

The identifying process of stakeholder includes the stakeholder identification, which might affect the project. The communication process of project management includes the documenting at the level of power, interest, and influence and project effect. The primary tools and techniques applied in the stakeholder analysis process as well as expert judgment. During analysis of stakeholder, one requires making use of power/influence, power/interest and impact/influence grids (Dow & Taylor, 2010). The model of salience is also applied in the analysis of stakeholder. By the end of the process, one should try to create the stakeholder management strategy and stakeholder register.

The process of plan communication includes the documentation of communication requirement of the stakeholder explored in the course of identity stakeholder (Lindstrom, 2014). For effectively planning the project communication, one requires making use of stakeholder management strategy and stakeholder register during the process of identifying stakeholder.

The primary tools and techniques in the communication requirement analysis process are communication methods, communication technology, and communication models. The key output of the process is the plan of communication management. Other plans of project management might also require getting updated, as the requirement of stakeholder is uncovered (Pritchard, 2013). The expectation process of managing stakeholder includes the different communication methods, management skills, and interpersonal skills for making sure about the needs of communication of stakeholders that are addressed, this will also include the resolving conflicts at the workplace, building trust as well as facilitating the meetings with the stakeholders (Mochal & Mochal, 2012).

Conclusion

Project management supports in identifying the project manager not only the types of stakeholder in the project, along with the expectation of every type. This knowledge helps the project manager in managing the expectations of various people involved as well as related with the project and also supports in reducing the conflict occurred over the deliverables. For the success of the project, it is important to set up the meaningful and transparent process of strategic planning. Engaging the employees at all levels of an organization can help in ensuring the success. Communication throughout the levels among employees should be undertaken.  It is also important that innovation process should be done for every new project development and service delivery. Creating the projects for managing the strategies and prioritizing the projects for making sure they are resourced properly. Reshaping the organizational culture to become more adaptive towards the changes, it is important to have a better strategic plan.

References

Cadle, J., Eva, M., Hindle, K., Paul, D., Rollason, C., Turner, P., & Yeates, P. (2014). Business Analysis Techniques (3rd ed.). North Star Avenue, Swindon: BCS, The Chartered Institute for IT.

Cook, M. S. (2001). Real-world Monte Carlo analysis. Paper presented at Project Management Institute Annual Seminars & Symposium, Nashville, TN. Newtown Square, PA: Project Management Institute.

Crawford, J. K. (2014). Project Management Maturity Model, Third Edition. CRC Press

Dow, W., & Taylor, B. (2010). Project Management Communications Bible. John Wiley & Sons

Kliem, R. L. (2007). Effective Communications for Project Management. CRC Press

Lindstrom, D. (2014). Procurement Project Management Success: Achieving a Higher Level of Effectiveness: J. Ross Publishing Operations Management Professional Series. J. Ross Publishing

Mochal, J., & Mochal, T. (2012). Lessons in Project Management. Apress

Pritchard, C. (2013). The Project Management Communications Toolkit, Second Edition Project Management. Artech House

Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK Guide) (5th ed.). Newtown Square, PA: PMI.

Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK Guide®) (5th ed.). Retrieved on 12^th August 2017, from https://www.stjohns.edu/sites/default/files/documents/academics/tobin/enterprise_tools_and_techniques.pdf

Sharma, R. (2010). PMBOK Guide: Project Communications Management. Retrieved on 12^th August 2017, from https://www.brighthubpm.com/certification/85770-pmbok-guide-project-communications-management/

Winstead, C. (2010). CRITICAL SUCCESS FACTORS FOR PROJECT MANAGERS (PART 1). Retrieved on 12^th August 2017, from https://www.naomedia.co/critical-success-factors-project-managers/