Question

How you design your program will be influenced by the regulatory environment in which the organization operates. Some jurisdictions are quite prescriptive, requiring Certificate of Need submissions for major projects and even (in the State of Maryland) mandating hospital reimbursement rates. In other places, market forces are left to drive healthcare. What are the relative merits of these divergent approaches?

Answer 1

Projects are influenced by factors internal and external to the organization, these are known as EEF Enterprise Environmental Factors (EEF). Examples of internal EEFs are company infrastructure, skill availability, risk attitude, governance approach, etc. Examples of external EEFs are political and financial climate.

Projects will use policies and standards of the organization, may use past metrics, and may apply lessons from previous similar projects. Such artefacts are called Organizational Process Assets (OPA).

Projects are also impacted by the organizational system which is comprised not only of organization structures which were described earlier but also general management and governance aspects.

Enterprise Environmental Factors

“Enterprise Environmental Factors (EEFs) refer to conditions:

• not under the control of the project team,

• that influence, constrain, or direct the project.

These conditions can be internal and/or external to the organization.

Enterprise Environmental Factors are considered as inputs to many project management processes, specifically for most planning processes. These factors may enhance or constrain project management options. In addition, these factors may have a positive or negative influence on the outcome.” (PMBOK Guide p38)

There are many different types of Enterprise Environmental Factors, and they are divided into 2 distinct groups: those that are external to the organization and those that are internal. I think of Enterprise Environmental Factors this way. Imagine you on the project team are travelling to another country on a cruise ship.

The ship represents the organization

Enterprise Environmental Factors internal to ship would include:

RESOURCE AVAILABILITY.

E.g. the vision, mission, values, beliefs of the shipping company. The rules of the ship, the expected behavior of the crew and the passengers, the code of ethics and rule of law. The leadership of the captain, as well as the hierarchy and authority relationships of crew members.

GEOGRAPHIC DISTRIBUTION OF FACILITIES AND RESOURCES.

E.g. there would be a floorplan of the ship, showing the facilities on each deck, and you would have information about your cabins, where to eat.

INFRASTRUCTURE.

E.g. there would be details of what equipment is available for your use on board the ship, for example, computers and gym equipment.

RESOURCE AVAILABILITY.

E.g. you would have a list of staff available to help you, and there would be shop to purchase items.

EMPLOYEE CAPABILITY.

There would be a list of services that can provide, and the times they are available. They could include medical, a gym instructor, religious services, financial services, dance instruction, and so on.

These are the Enterprise Environmental Factors INTERNAL to a cruise liner, but what about an organization?

Enterprise Environmental Factors INTERNAL to the organization

ORGANIZATIONAL CULTURE, STRUCTURE, AND GOVERNANCE.

E.g. vision, mission, values, beliefs, cultural norms, leadership style, hierarchy and authority relationships, organizational style, ethics, and code of conduct.

GEOGRAPHIC DISTRIBUTION OF FACILITIES AND RESOURCES.

E.g. factory locations, virtual teams, shared systems, and cloud computing.

INFRASTRUCTURE.

Eg. existing facilities, equipment, organizational telecommunications channels, information technology hardware, availability, and capacity.

INFORMATION TECHNOLOGY SOFTWARE.

E.g. scheduling software tools, configuration management systems, web interfaces to other online automated systems, and work authorization systems.

RESOURCE AVAILABILITY.

E.g. contracting and purchasing constraints, approved providers and subcontractors, and collaboration agreements.

EMPLOYEE CAPABILITY.

Eg. existing human resources expertise, skills, competencies, and specialized knowledge.

Now, let’s go be to our cruise liner and consider the Enterprise Environmental Factors EXTERNAL to the ship.

MARKETPLACE CONDITIONS.

E.g. the other competitor shipping companies you could have traveled with. The reputation of the shipping company that you choose. The name and logo of the company

SOCIAL AND CULTURAL INFLUENCES AND ISSUES.

E.g. political climate, codes of conduct, ethics, and perceptions of the countries you are traveling through.

LEGAL RESTRICTIONS.

E.g. Country or local laws and regulations. For example, you are not allowed to consume alcohol in some countries, in others, you may not bring certain foods ashore.

COMMERCIAL DATABASES.

E.g. Tables of average ticket prices and expected facilities, as well as published data on risk studies, safety reputation and so on.

ACADEMIC RESEARCH.

E.g. Online forums and review sites that rate and compare shipping companies, and their offerings.

GOVERNMENT OR INDUSTRY STANDARDS.

E.g. health and safety laws, employment laws -- such as anti-discrimination, minimum wage. Certifications for crew and equipment. Sea-worthiness certification for the ship. Laws relating to the storage, preparation, and serving of food.

FINANCIAL CONSIDERATIONS.

E.g. currency exchange rates, interest rates, inflation rates, tariffs, and geographic location.

PHYSICAL ENVIRONMENTAL ELEMENTS.

E.g. working conditions, weather, and constraints.

These are the Enterprise Environmental Factors EXTERNAL to a cruise liner, but what about an organization?

Enterprise Environmental Factors EXTERNAL to the organization:

MARKETPLACE CONDITIONS.

E.g. competitors, market share brand recognition, and trademarks.

SOCIAL AND CULTURAL INFLUENCES AND ISSUES.

E.g. political climate, codes of conduct, ethics, and perceptions.

Organizational Process Assets

“Organizational Process Assets (OPAs) are the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization. These assets influence the management of the project. Organizational Process Assets include any artifact, practice, or knowledge from any or all of the performing organizations involved in the project that can be used to execute or govern the project. The Organizational Process Assets also include the organization’s lessons learned from previous projects and historical information. Organizational Process Assets may include completed schedules, risk data, and earned value data.