Saturday 10 July 2021

Project environment

The project's environment (the concept of "project participants") is supposed to mean everything that can affect its success: social, economic and political conditions, geographical and climatic factors, consumer interests and competitors, the technology used in the project and the potential of new scientific achievements. 

The psychological attitude of the project's performers and the so-called public. In this mixture of various factors, which also have different nature, there is a great sense. 


On the one hand, it is possible to classify all real, potential and interested participants in the project from a single standpoint, on the other hand, each participant can be considered anonymized, 

To characterize the degree of his participation in the project only from the following points of view: 

The causes and probability of occurrence, the degree of importance, the trend of their change, the likely risks - and then determine measures to stimulate, prevent or mitigate their impact on the results of the project. The project environment is a complex complex of interconnected relationships that constantly affect each other as the project progresses. The project, in turn, has a different impact on the environment, which can lead to conflict situations. 


Taking these interdependence into account is essential to ensure the success of the project. The environment has a feature to change over time, especially if the project lasts several years. 


This can lead to additional uncertainties and risks. Identifying and promptly accounting for emerging factors is one of the main areas of work of the project manager and his team, especially when maintaining close contact with individuals and organizations with "weight" in society. 

As you can see, the environment of the project is a very broad concept.


Therefore, its analysis (identification of the whole set of factors, the degree of their priority, classification) requires special care. The approach to analyzing the whole set of factors, i.e. assessment: 

The acting role of the factor (useful, neutral, harmful), the degree of reliability of information about the factor, the risk of using this information in THE procedures has received wide recognition in the literature. - the real nature of the factor, who or what determines its occurrence, possible actions to neutralize it; 

Understanding the stimuli of the behavior of the factor, the possible reaction of the factor in the change of circumstances; 

Positions on the basis of which it is possible to establish a "good" relationship with the factor; - awareness of the impact of the factor on individual participants of the project (not only the direct performers, but all participants of the project). 


The analysis identifies the key areas on which the successful implementation of the project depends.

The search and analysis of existing and likely future factors should be treated with the utmost care. On the one hand, it is an important part of the UP methodology, on the other hand - a negligible likely negative factor or a small group of people interested in the failure of the project can find a fatal gap in the project and stop the implementation of the project.


The project's inner circle

The environment of the project may, for example, include:

  company management, which determines the goals and basic requirements for the project. The company's management summarizes individual recommendations of experts and develops a strategy for the development of the organization. Added to this are the management's own requirements, such as:

  • Requirements for the results of the project,
  • Requirements for the implementation of the project,
  • Method and order to adjust the purpose and requirements
  • Project by the departments and specialists of the company, etc.;

The area of finance, which determines the budget framework of the project, as well as the ways and sources of financing for the project;

  The sales area that creates project requirements related to the market, customer needs, availability and actions of competitors;

  •   manufacturing industry, which may require:
  • Abandoning some of the processes
  • Using a certain technology and equipment
  • Loading idle production sites,
  • Agreeing project requirements with capabilities
  • Market of means of production, etc.;

  The material support area that imposes project requirements on the ability to provide raw materials, materials and equipment at reasonable prices;

  infrastructure, which is related to the market of services and various services and puts demands on advertising, transport, communications, telecommunications, information, various types of engineering and other support;

  industrial waste management and waste management, which imposes demands on environmental protection and waste management.


The project's far environment


In addition to the factors of the near environment (enterprise environment), the project is influenced by the factors that make up its long-range environment.


Political factors:

  • Political stability,
  • Support for the project by the government,
  • Nationalist manifestations,
  • Crime rate,
  • Trade balance with participating
  • Countries
  • Participation in military alliances.


Economic factors:
-         the structure of the national economy,

Types of responsibilities and property rights, especially the right to land,

Tariffs and taxes

Insurance guarantees,

Inflation and currency stability,

The development of the banking system,

Sources of investment,

Degree of freedom of enterprise and economic


The development of market infrastructure,

Price levels

- the state of markets: sales, investment, means of production, raw materials, materials, labor, etc.


Society, its characteristics and factors:

  • Conditions and living standards
  • The level of education
  • Freedom of movement (entry and exit)
  • Labour legislation, banning strikes,
  • Health care and medicine, rest conditions,
  • Public organizations, the media,
  • The attitude of the local population to the project.


Laws and law:

  • Human rights
  • Entrepreneurship rights,
  • Ownership,
  • Laws and regulations on the provision of guarantees and benefits.


Science and Technology:

  • The level of development of fundamental and applied sciences,
  • The level of information technology and computerization
  • The level of manufacturing technology
  • Energy systems,
  • Transport systems,
  • Communication, communication.




  • Literacy rate,
  • History, cultural traditions, religion,
  • Cultural needs
  • The level of requirements for quality of results and working conditions.


Natural and environmental factors:

  • - climatic conditions: temperature, precipitation, humidity,
  • winds, altitude, seismicity, landscape and topography, etc.,
  • Natural resources,
  • Location and communication with transport networks,
  • Standards for the quality of airspace, water
  • sources and soil cover,
  • Sanitary requirements for the environment,

Environmental legislation

A characterization of the state and trends of the environmental system.


Infrastructure characteristics and factors:

Means of transport, communications and communications,

  • Computer networks and information systems
  • Energy supply,
  • Utilities,
  • Raw materials and services
  • Sales network,
  • Logistics and logistics,
  • Industrial infrastructure.


Project inner environment


The project, especially the successful implementation process, is significantly influenced by the project's internal environment:

  • The style of project management determines the psychological climate and atmosphere in the project team, affects its creative activity and performance;
  • The specific organization of the project determines the relationship between the main participants of the project, the distribution of rights, responsibilities and responsibilities;
  • Project participants realize their various interests in the project, form requirements in accordance with their goals and motivations and influence the project in accordance with their own interests, competence and degree of participation in the project;
  • The project team is the project's think tank, motor and executive body of the project, on which much depends on the progress and success of the project;
  • methods and means of communication determine the completeness, reliability and speed of information exchange between the project participants. In essence, it is a "nervous system of the project" on the degree of perfection of which depends in many respects its success;
  • the economic conditions of the project are related to the project's estimates and budget, prices, taxes and tariffs, risk and insurance, incentives and benefits and other economic factors of the project and determining its main economic characteristics;
  • the social conditions of the project are characterized by:
  • Providing standard living conditions for project participants,

The level of wages

Provided by utilities,

Provided social services (schools, kindergartens, health care, recreation, etc.),

Working and safety conditions,

Insurance and social security, etc.;

Other factors:

  • The environmental impact of the project's results on the environment
  • The level of computerization and informational of the project,
  • Organization, and the project documentation system, etc.


A long list of factors surrounding the project demonstrates how deeply the project's relationship with its surroundings extends. However, the impact of these factors on different projects varies. In the table. 1.1 provides expert data on the impact of project environment factors on the main types and types of projects of comparable proportions.


It is clear from the table that social and investment projects are most influenced by the external environment, then organizational, economic, and, to a lesser extent, innovative ones. The greatest influence on projects are: economy, laws and law, then culture, which is somewhat unexpected, and only after that politics and society. Nature, ecology and infrastructure have the least impact on projects.

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