Enterprise Environmental Factors and Organizational Process Assets

Produced by Dr. Linda P. Dowdell, MS, MBA, PMP, PMI-ACP

Project Management Solutions, LLC PMI® New York City

One of the dilemmas that concern project managers is how to initiate a project

The dilemma increases when project managers are new to the organization – especially when they work as consultants

The dilemma increases even more when project managers must take mandatory training geared for new resources, and postpone to learn about enterprise environmental factors and organizational process assets.

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The mentioned dilemmas are inevitable; however, project managers should initiate a project in parallel with two knowledge areas, Project Integration Management and Project Stakeholder Management (PMI® standards) because the first knowledge area starts with a Project Charter which

contains key information to justify a project, a list of key stakeholders, etc.

the second knowledge area identifies the stakeholders in more detail, which will be part of a Stakeholder Registry

At the same time, project managers need to familiarize themselves with the enterprise environmental factors, and the organizational process assets – because these contain the factors about the company and the assets which could be applied to projects.

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These process assets are outside of PMI standards but form part of an organization (e.g., policies, historical information, lessons learned, etc.) These process assets are important because they influence the recommended processes (PMBOK®, for example) which are necessary to develop a project.

Note: Generally, each PMI® process group (initiating, planning, executing, monitoring, controlling and closing) makes reference to organizational process assets (whatever they are).

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PMI® makes references to 2 categories of organizational process assets which are specific to the performing organization

Processes and Procedures (for initiating, planning, executing, and closing) Plans Processes Politics Procedures

Corporate Knowledge Base Lessons learned Historical information

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PMBOK, Fifth Edition, p. 27-28

These are the categories which are specific to the performing organization to conduct project work

(1) Processes and Procedures for Initiating and Planning

Guidelines and criteria to tailor processes and procedures that are standard to the organization

Organizational standards for policies such as human resources, health and safety, ethics, project management, etc.

Organizational standards for product and project life cycle Organizational standards for quality policies and procedures

such as process audits, improvement targets, checklists, process definition, etc.

Templates such as risk register, stakeholder register, contract templates, etc.)

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PMBOK, Fifth Edition, pp. 27-28

These are the categories which are specific to the performing organization to conduct project work (cont.)

(1) Processes and procedures for execution, monitoring y controlling ◦ Procedures for change control (and the steps required),

which includes how approval and validation of changes will be done

◦ Procedures for financial controls such as time reporting, accounting codes (e.g., cost centers), how consultants will report time, etc.

◦ Procedures for issue and defect management ◦ Communication requirements such as retention policies,etc. ◦ Procedures for approving project work ◦ Guides, work instructions, performance measurement

criteria

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PMBOK, Fifth Edition, p. 27-28

These are the categories which are specific to the performing organization to conduct project work (cont.)

(1) Processes and procedures for closing Guides or requirements to close projects

Lessons learned

Project audit requirements by required parties

Project evaluations by required parties

Product validations (by required parties) along with corresponding acceptance criteria

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PMBOK, Fifth Edition, p. 27-28

These are the categories which are specific to the performing organization to conduct project work (cont.)

(2) Corporate Knowledge Base These are the knowledge bases that are necessary to

archive and retrieve information Configuration management knowledge bases Financial databases (which can be systems) Historical information and lessons learned knowledge

bases (e.g., SharePoint) Issue and defect management databases Process measurement databases Project files of previous projects

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PMBOK, Fifth Edition, p. 27-28

Enterprise environmental factors are outside PMI® standards but form part of and may be unique to organizations (e.g., culture, infrastructure, etc.). Enterprise environmental factors are important because they influence the recommended and necessary processes to develop a project.

Note: Generally, each PMI® process group (initiating, planning, executing, monitoring, controlling and closing) makes reference to enterprise environmental factors (whatever they are).

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Enterprise environmental factors are NOT under the control of the project management team, but they do influence, constrain, or help direct a project. In other words, these environmental factors could improve or constrain project management options that in turn may influence the outcome of a project in a positive or negative manner.

Enterprise environmental factors are necessary inputs to most PMI® planning processes.

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PMBOK, Fifth Edition, p. 29

Among others, the following enterprise environmental factors include:

Culture, infrastructure and governance of the organization Geographic distribution of facilities and resources Government or industry standards

◦ Regulatory agency regulations ◦ Codes of conduct ◦ Project standards ◦ Quality standards ◦ Workmanship standards

Infrastructure ◦ Existing facilities ◦ Capital equipment

Existing human resources ◦ Skills ◦ Disciplines and knowledge (design, dev, contracting, purchasing)

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PMBOK, Fifth Edition, p. 29

Among others, the following enterprise environmental factors include (cont.):

Personnel administration ◦ Guidelines in selecting and retaining personnel ◦ Employee performance reviews and training records ◦ Reward and overtime policy ◦ Time tracking

Work authorization systems

Market conditions

Stakeholder risk tolerances

Political climate

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PMBOK, Fifth Edition, p. 29

Among others, the following enterprise environmental factors include (cont.):

Established communication channels

Commercial databases (standardized cost estimating, industry risk study information, risk databases)

Project management information system ◦ Scheduling tool, configuration management system,

repositories, web sites, etc.

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PMBOK, Fifth Edition, p. 29