OR2 - Environment Flashcards
What impacts a project’s context/environment (5)?
-Industry sector
-Geographical considerations
-Virtual teams
-Financial impact
-Effects of technology
Environment (BOK Definition)?
“A collective term for the societal and/or organisational setting of a project, programme or portfolio”
What does PESTLE stand for
P= Political
E= Economic
S= Social
T= Technical
L= Legal
E= Environment
What is PESTLE used for?
-to help examine the external influences on a project
What does SWOT stand for?
S= Strengths
W= Weaknesses
O= Opportunities
T= Threats
What is SWOT used for?
-to help examine the internal influences on a project
What is the difference between SWOT & PESTLE
SWOT - Internal influences
PESTLE - External influences
Types of Questions to be considering about your project?
-What’s the effect on the project?
-Are there any stakeholders & what are their views?
-What are the risks?
-Are there any issues?
-Are there any dependencies?
-What are the constraints?
Considerations for PESTLE - ‘P’ POLITICAL?
-internal politics
-differing agendas amongst key stakeholders?
-how will this affect the project?
-external politics - local vs national government
-will change in the ruling party have an effect on the project?
-do international governments need to be considered?
Considerations for PESTLE - ‘E’ ECONOMIC?
-how will project be funded?
-operational costs?
-are grants available?
-will cashflow & borrowing be affected by contract types?
Considerations for PESTLE - ‘S’ SOCIAL?
-what effect will the project have on society?
-will it bring employment?
-will there be an influx of workers?
-what effect will this have on local residents?
-if the project is undertaken in a different culture, how will this affect the way in which the project will be managed?
Considerations for PESTLE - ‘T’ TECHNICAL?
-is the technology used standard or breaking new ground?
-if new technology is required or developed, what implications does this have on the costs & risks?
Considerations for PESTLE - ‘L’ LEGAL?
-are there any regulatory requirements?
-is a public consultation required?
-is the project affected by local or international laws?
-what are the health & safety regulations?
Considerations for PESTLE - ‘E’ ENVIRONMENTAL?
-will you be building on a site of special scientific interest?
-will the project affect any protected species?
-what about pollution & waste disposal?
-are you building on a brownfield site & what are the environmental considerations?
-will the project generate waste & how will it be disposed of?
Benefits of Environmental Analysis?
-establish the environments that may affect the project
-identify key stakeholders & their views
-identify major risks
-generate issues, constraints & dependencies
What does VUCA stand for?
V= Volatility
U= Uncertainty
C= Complexity
A= Ambiguity
(all 4 factors are related… the more complex & volatile an industry is, the harder to predict & therefore more uncertain it will be)
What is VUCA?
-describes the world & the inter-relationships between countries
Considerations for VUCA - Volatility?
-speed of change in an industry, market or the world in general
-consider ways affected by fluctuations in demand, turbulence or short time to markets
-the more volatile the world, the more & faster things change (e.g. starting new projects or changing those already under way)
Considerations for VUCA - Uncertainty?
-how well the future can be predicted with confidence
-part of uncertainty is related to our perceptions & will depend on how confident we are about what is going on
-uncertainty is a more objective characteristic of an environment
-highly uncertain environments don’t allow any prediction
-greater uncertainty = less easy to predict
-lower uncertainty = more easily predicted
-likely as uncertainty increases, the number of decision gates on a project will also increase to provide management with more control over the investment
Considerations for VUCA - Complexity?
-the number of factors we need to take into account when considering our investment
-more factors means more variety = more complexity
-fewer factors = less complexity
-to mitigate the risks of this adversely affecting the project, the more rigour & discipline is needed in the project’s management
Considerations for VUCA - Ambiguity?
-refers to the lack of clarity about how to interpret something
-e.g. when info is incomplete, contradictory or inaccurate, we will not be able to draw clear conclusions from it; therefore the outcomes of the project may be unclear
-in these situations, careful management is needed to clarify the situation before significant investment is made
haven’t added the questions… check the corresponding page on onenote for these
