Write a proposal you can deliver to the rescue’s leadership and stakeholders to help them understand how the adoption event will be managed within the identified organizational structure.

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2

THE ENVIRONMENT IN WHICH PROJECTS OPERATE

2.1 OVERVIEW Projects e ist and operate in environments that ma have an influence on them. These influences can have a

favorable or unfavorable impact on the project. T o major categories of influences are enterprise environmental factors (EEFs) and organi ational process assets (OPAs).

EEFs originate from the environment outside of the project and often outside of the enterprise. EEFs ma have an impact at the organi ational, portfolio, program, or project level. See Section 2.2 for additional information on EEFs.

OPAs are internal to the organi ation. These ma arise from the organi ation itself, a portfolio, a program, another project, or a combination of these. Figure 2-1 sho s the breakdo n of project influences into EEFs and OPAs. See Section 2.3 for additional information on OPAs.

In addition to EEFs and OPAs, organi ational s stems pla a significant role in the life c cle of the project. S stem factors that impact the po er, influence, interests, competencies, and political capabilities of the people to act ithin the organi ational s stem are discussed further in the section on organi ational s stems (see Section 2.4).

2.2 ENTERPRISE ENVIRONMENTAL FACTORS

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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 e ternal to the organi ation. EEFs are considered as inputs to man project management processes, specificall for most planning processes. These factors ma enhance or constrain project management options. In addition, these factors ma have a positive or negative influence on the outcome.

EEFs var idel in t pe or nature. These factors need to be considered if the project is to be effective. EEFs include but are not limited to the factors described in Sections 2.2.1 and 2.2.2.

2.2.1 EEFS INTERNAL TO THE ORGANIZATION The follo ing EEFs are internal to the organi ation:

O a a a c , c , a a c . E amples include vision, mission, values, beliefs, cultural norms, leadership st le, hierarch and authorit relationships, organi ational st le, ethics, and code of conduct. G a c b ac a c . E amples include factor locations, virtual teams, shared s stems, and cloud computing. I a c . E amples include e isting facilities, equipment, organi ational telecommunications channels, information technolog hard are, availabilit , and capacit . I a c a . E amples include scheduling soft are tools, configuration management s stems, eb interfaces to other online automated s stems, and ork authori ation s stems. R c a a ab . E amples include contracting and purchasing constraints, approved providers and subcontractors, and collaboration agreements. E ca ab . E amples include e isting human resources e pertise, skills, competencies, and speciali ed kno ledge.

2.2.2 EEFS EXTERNAL TO THE ORGANIZATION The follo ing EEFs are e ternal to the organi ation.

Ma ac c . E amples include competitors, market share brand recognition, and trademarks. S c a a c a c a . E amples include political climate, codes of conduct, ethics, and perceptions. L a c . E amples include countr or local la s and regulations related to securit , data protection, business conduct, emplo ment, and procurement. C c a a aba . E amples include benchmarking results, standardi ed cost estimating data, industr risk stud information, and risk databases. Aca c a c . E amples include industr studies, publications, and benchmarking results. G a a . E amples include regulator agenc regulations and standards related to products, production, environment, qualit , and orkmanship. F a c a c a . E amples include currenc e change rates, interest rates, inflation rates, tariffs, and geographic location. P ca a . E amples include orking conditions, eather, and constraints.

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2.3 ORGANIZATIONAL PROCESS ASSETS Organi ational process assets (OPAs) are the plans, processes, policies, procedures, and kno ledge bases

specific to and used b the performing organi ation. These assets influence the management of the project. OPAs include an artifact, practice, or kno ledge from an or all of the performing organi ations involved in

the project that can be used to e ecute or govern the project. The OPAs also include the organi ation's lessons learned from previous projects and historical information. OPAs ma include completed schedules, risk data, and earned value data. OPAs are inputs to man project management processes. Since OPAs are internal to the organi ation, the project team members ma be able to update and add to the organi ational process assets as necessar throughout the project. The ma be grouped into t o categories:

Processes, policies, and procedures; and Organi ational kno ledge bases.

Generall , the assets in the first categor are not updated as part of the project ork. Processes, policies, and procedures are usuall established b the project management office (PMO) or another function outside of the project. These can be updated onl b follo ing the appropriate organi ational policies associated ith updating processes, policies, or procedures. Some organi ations encourage the team to tailor templates, life c cles, and checklists for the project. In these instances, the project management team should tailor those assets to meet the needs of the project.

The assets in the second categor are updated throughout the project ith project information. For e ample, information on financial performance, lessons learned, performance metrics and issues, and defects are continuall updated throughout the project.

2.3.1 PROCESSES, POLICIES, AND PROCEDURES The organi ation's processes and procedures for conducting project ork include but are not limited to:

I a a P a :

Guidelines and criteria for tailoring the organi ation's set of standard processes and procedures to satisf the specific needs of the project; Specific organi ational standards such as policies (e.g., human resources policies, health and safet policies, securit and confidentialit policies, qualit policies, procurement policies, and environmental policies); Product and project life c cles, and methods and procedures (e.g., project management methods, estimation metrics, process audits, improvement targets, checklists, and standardi ed process definitions for use in the organi ation); Templates (e.g., project management plans, project documents, project registers, report formats, contract templates, risk categories, risk statement templates, probabilit and impact definitions, probabilit and impact matrices, and stakeholder register templates); and Preapproved supplier lists and various t pes of contractual agreements (e.g., fi ed-price, cost- reimbursable, and time and material contracts).

E c , M , a C :

Change control procedures, including the steps b hich performing organi ation standards, policies, plans, and procedures or an project documents ill be modified, and ho an changes

ill be approved and validated; Traceabilit matrices; Financial controls procedures (e.g., time reporting, required e penditure and disbursement revie s, accounting codes, and standard contract provisions);

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Issue and defect management procedures (e.g., defining issue and defect controls, identif ing and resolving issues and defects, and tracking action items); Resource availabilit control and assignment management; Organi ational communication requirements (e.g., specific communication technolog available, authori ed communication media, record retention policies, videoconferencing, collaborative tools, and securit requirements); Procedures for prioriti ing, approving, and issuing ork authori ations; Templates (e.g., risk register, issue log, and change log); Standardi ed guidelines, ork instructions, proposal evaluation criteria, and performance measurement criteria; and Product, service, or result verification and validation procedures.

C . Project closure guidelines or requirements (e.g., final project audits, project evaluations, deliverable acceptance, contract closure, resource reassignment, and kno ledge transfer to production and/or operations).

2.3.2 ORGANIZATIONAL KNOWLEDGE REPOSITORIES The organi ational kno ledge repositories for storing and retrieving information include but are not limited

to:

Configuration management kno ledge repositories containing the versions of soft are and hard are components and baselines of all performing organi ation standards, policies, procedures, and an project documents; Financial data repositories containing information such as labor hours, incurred costs, budgets, and an project cost overruns; Historical information and lessons learned kno ledge repositories (e.g., project records and documents, all project closure information and documentation, information regarding both the results of previous project selection decisions and previous project performance information, and information from risk management activities); Issue and defect management data repositories containing issue and defect status, control information, issue and defect resolution, and action item results; Data repositories for metrics used to collect and make available measurement data on processes and products; and Project files from previous projects (e.g., scope, cost, schedule, and performance measurement baselines, project calendars, project schedule net ork diagrams, risk registers, risk reports, and stakeholder registers).

2.4 ORGANIZATIONAL SYSTEMS

2.4.1 OVERVIEW Projects operate ithin the constraints imposed b the organi ation through their structure and governance

frame ork. To operate effectivel and efficientl , the project manager needs to understand here responsibilit , accountabilit , and authorit reside ithin the organi ation. This understanding ill help the project manager

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effectivel use his or her po er, influence, competence, leadership, and political capabilities to successfull complete the project.

The interaction of multiple factors ithin an individual organi ation creates a unique s stem that impacts the project operating in that s stem. The resulting organi ational s stem determines the po er, influence, interests, competence, and political capabilities of the people ho are able to act ithin the s stem. The s stem factors include but are not limited to:

Management elements, Governance frame orks, and Organi ational structure t pes.

The complete information and e planation of the organi ational s stem factors and ho the combination of these factors impacts a project are be ond the scope of this guide. There are disciplines ith associated literature, methodologies, and practices that address these factors in more depth than is possible ithin this guide. This section provides an overvie of these factors and their interrelationship.

This overvie begins b discussing s stems in general. A s stem is a collection of various components that together can produce results not obtainable b the individual components alone. A component is an identifiable element ithin the project or organi ation that provides a particular function or group of related functions. The interaction of the various s stem components creates the organi ational culture and capabilities. There are several principles regarding s stems:

S stems are d namic, S stems can be optimi ed, S stem components can be optimi ed, S stems and their components cannot be optimi ed at the same time, and S stems are nonlinear in responsiveness (a change in the input does not produce a predictable change in the output).

Multiple changes ma occur ithin the s stem and bet een the s stem and its environment. When these changes take place, adaptive behavior occurs ithin the components that in turn add to the s stem's d namics. The s stem's d namics are defined b the interaction bet een the components based on the relationships and dependencies that e ist bet een the components.

S stems are t picall the responsibilit of an organi ation's management. The organi ation's management e amines the optimi ation trade-offs bet een the components and the s stem in order to take the appropriate action to achieve the best outcomes for the organi ation. The results of this e amination ill impact the project under consideration. Therefore, it is important that the project manager take these results into account hen determining ho to fulfill the project's objectives. In addition, the project manager should take into account the organi ation's governance frame ork.

2.4.2 ORGANIZATIONAL GOVERNANCE FRAMEWORKS Recent PMI research reveals that governance refers to organi ational or structural arrangements at all levels

of an organi ation designed to determine and influence the behavior of the organi ation's members [9]. This research suggests that the concept of governance is multidimensional and:

Includes consideration of people, roles, structures, and policies; and Requires providing direction and oversight through data and feedback.

2.4.2.1 GOVERNANCE FRAMEWORK

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Governance is the frame ork ithin hich authorit is e ercised in organi ations. This frame ork includes but is not limited to:

Rules, Policies, Procedures, Norms, Relationships, S stems, and Processes.

This frame ork influences ho :

Objectives of the organi ation are set and achieved, Risk is monitored and assessed, and Performance is optimi ed.

2.4.2.2 GOVERNANCE OF PORTFOLIOS, PROGRAMS, AND PROJECTS

The G e a ce f P f li , P g am , a d P jec : A P ac ice G ide [10] describes a common governance frame ork aligning organi ational project management (OPM) and portfolio, program, and project management. The practice guide describes four governance domains of alignment, risk, performance, and communications. Each domain has the follo ing functions: oversight, control, integration, and decision making. Each function has governance supporting processes and activities for stand-alone projects, or projects operating

ithin the portfolio or program environments. Project governance refers to the frame ork, functions, and processes that guide project management

activities in order to create a unique product, service, or result to meet organi ational, strategic, and operational goals. There is no one governance frame ork that is effective in all organi ations. A governance frame ork should be tailored to the organi ational culture, t pes of projects, and the needs of the organi ation in order to be effective.

For more information regarding project governance, including its implementation, see G e a ce f P f li , P g am , a d P jec : A P ac ice G ide [10].

2.4.3 MANAGEMENT ELEMENTS Management elements are the components that comprise the ke functions or principles of general

management in the organi ation. The general management elements are allocated ithin the organi ation according to its governance frame ork and the organi ational structure t pe selected.

The ke functions or principles of management include but are not limited to:

Division of ork using speciali ed skills and availabilit to perform ork; Authorit given to perform ork; Responsibilit to perform ork appropriatel assigned based on such attributes as skill and e perience; Discipline of action (e.g., respect for authorit , people, and rules); Unit of command (e.g., onl one person gives orders for an action or activit to an individual); Unit of direction (e.g., one plan and one head for a group of activities ith the same objective); General goals of the organi ation take precedence over individual goals;

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Paid fairl for ork performed; Optimal use of resources; Clear communication channels; Right materials to the right person for the right job at the right time; Fair and equal treatment of people in the orkplace; Clear securit of ork positions; Safet of people in the orkplace; Open contribution to planning and e ecution b each person; and Optimal morale.

Performance of these management elements are assigned to selected individuals ithin the organi ation. These individuals ma perform the noted functions ithin various organi ational structures. For e ample, in a hierarchical structure, there are hori ontal and vertical levels ithin the organi ation. These hierarchical levels range from the line management level through to the e ecutive management level. The responsibilit , accountabilit , and authorit assigned to the hierarchical level indicate ho the individual ma perform the noted function ithin that organi ational structure.

2.4.4 ORGANIZATIONAL STRUCTURE TYPES Determination of the appropriate organi ational structure t pe is a result of the stud of tradeoffs bet een

t o ke variables. The variables are the organi ational structure t pes available for use and ho to optimi e them for a given organi ation. There is not a one-si e-fits-all structure for an given organi ation. The final structure for a given organi ation is unique due to the numerous variables to be considered. Sections 2.4.4.1 and 2.4.4.2 give e amples of some of the factors to be included hen considering the t o variables given. Section 2.4.4.3 discusses one organi ational structure that is prevalent in project management.

2.4.4.1 ORGANIZATIONAL STRUCTURE TYPES

Organi ational structures take man forms or t pes. Table 2-1 compares several t pes of organi ational structures and their influence on projects.

2.4.4.2 FACTORS IN ORGANIZATION STRUCTURE SELECTION

Each organi ation considers numerous factors for inclusion in its organi ational structure. Each factor ma carr a different level of importance in the final anal sis. The combination of the factor, its value, and relative importance provides the organi ation's decision makers ith the right information for inclusion in the anal sis.

Factors to consider in selecting an organi ational structure include but are not limited to:

Degree of alignment ith organi ational objectives, Speciali ation capabilities, Span of control, efficienc , and effectiveness, Clear path for escalation of decisions, Clear line and scope of authorit , Delegation capabilities, Accountabilit assignment, Responsibilit assignment, Adaptabilit of design,

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Simplicit of design, Efficienc of performance, Cost considerations, Ph sical locations (e.g., colocated, regional, and virtual), and Clear communication (e.g., policies, status of ork, and organi ation's vision).

2.4.4.3 PROJECT MANAGEMENT OFFICE

A project management office (PMO) is an organi ational structure that standardi es the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. The responsibilities of a PMO can range from providing project management support functions to the direct management of one or more projects.

There are several t pes of PMOs in organi ations. Each t pe varies in the degree of control and influence it has on projects ithin the organi ation, such as:

S . Supportive PMOs provide a consultative role to projects b suppl ing templates, best practices, training, access to information, and lessons learned from other projects. This t pe of PMO serves as a project repositor . The degree of control provided b the PMO is lo . C . Controlling PMOs provide support and require compliance through various means. The degree of control provided b the PMO is moderate. Compliance ma involve:

Adoption of project management frame orks or methodologies; Use of specific templates, forms, and tools; and

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Conformance to governance frame orks.

D c . Directive PMOs take control of the projects b directl managing the projects. Project managers are assigned b and report to the PMO. The degree of control provided b the PMO is high.

The project management office ma have organi ation- ide responsibilit . It ma pla a role in supporting strategic alignment and delivering organi ational value. The PMO integrates data and information from organi ational strategic projects and evaluates ho higher-level strategic objectives are being fulfilled. The PMO is the natural liaison bet een the organi ation's portfolios, programs, projects, and the organi ational measurement s stems (e.g., balanced scorecard).

The projects supported or administered b the PMO ma not be related other than b being managed together. The specific form, function, and structure of a PMO are dependent upon the needs of the organi ation that it supports.

A PMO ma have the authorit to act as an integral stakeholder and a ke decision maker throughout the life of each project in order to keep it aligned ith the business objectives. The PMO ma :

Make recommendations, Lead kno ledge transfer, Terminate projects, and Take other actions, as required.

A primar function of a PMO is to support project managers in a variet of a s, hich ma include but are not limited to:

Managing shared resources across all projects administered b the PMO; Identif ing and developing project management methodolog , best practices, and standards; Coaching, mentoring, training, and oversight; Monitoring compliance ith project management standards, policies, procedures, and templates b means of project audits; Developing and managing project policies, procedures, templates, and other shared documentation (organi ational process assets); and Coordinating communication across projects.