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PMP internal needs and external influences

PMP internal needs and external influencesPMP  internal needs and external influences

PMP internal needs and external influences are important as projects are initiated because of internal needs, and others are initiated because of external influences.  The PMBOK Guide lists several reasons why projects can be initiated:

Organisational need.  Internal projects to help an organization operate better

Market demand.  Projects that respond to external influences in the market.  These projects can be initiated in response to a change in the market, new markets, or developing markets.

Customer request.  These projects are generally initiated based on external influences, such as responding to a customer request or winning a competitive bid.

There are times when an internal customer in an organization requests a project, such as a division asking the IT department for a new functionality in company’s software.

Technological advance.  These projects can be the result of internal needs or external influences.  They are initiated to take advantage of better off faster results because of new technology or technology upgrades.

Legal requirements.  External influence projects that are mandatory in nature.  They respond to regulatory, legal, or compliance issues.

Ecological impact.  Projects that reactively clean up ecological problems, or proactively implement ecological sound practices.

Social need.  Projects and improve the quality of life.  They can be reactive to a particular situation, or proactively planned, such as developing a new Medical Devices.

PMP – Organisational need

The organisational need is the umbrella term for internal needs.  Examples of organisational needs include:

  • The company has grown, and the payroll system is no longer sufficient to meet the needs of the company
  • The organisation wants to reduce the amount of time it takes to bring the employees on board from eight weeks to four weeks
  • To improve production time and reduce defects, the production line is being reorganised.  The reorganisation include staff, production equipment, processes, quality control, and supply chain management

You can see that these types of projects can be quite complex, depending upon the organization.  They can include business process improvement projects, relocations, the organizations, or any kind of project designed to improve the efficiency and effectiveness of the organization.

PMP – Market demand

This covers the external influences than initiate projects.

A market demand can include projects that are designed to create new markets, respond to changes in the marketplace, or gain market share.

These projects support the reason the organization is in business.  They address the product, service, or result the organization provides.

Here are some examples:

  • Because of the high cost of petrol, a car manufacturer initiate a project to develop the car that runs on by no fuel
  • A new type of mobile phone comes out, and your organization decides to create a line of products that can be downloaded on to define
  • A competitor has released a new product that is eroding your market share, and your company needs to develop a competing product as soon as possible

PMP – Customer request

Customer requests can be the result of bidding on the contract.  In this case the statement of work in the contract becomes a driving force in initiating the project.

The statement of work is a narrative description of products, services, or results to be supplied.

A customer request can also come from an existing customer asking you to change, increase, or improve something about an existing product or service that you are providing.

Here are some situations where a customer request with initiate a project:

  • You are engineering firm is designing a new world headquarters for a client.  The client is so pleased that they ask your company to design the new service centre they will be opening after headquarters is complete
  • The local government office has issued a request for proposal to resurface 150 miles of road.  Your company response to the request for proposal and wins the bid

A request for proposal is a type of procurement documents used a request proposals from prospective Sellers of products or services.

  • Your organization provide safety training for a company with 20 locations.  The company so pleased with the results they had a strong organization to provide Consulting Services the following year as the company updates its safety programme.

PMP – Technological advance

These types of projects can affect internal operations or market place opportunities.  Because of the rate of technological advances as well as the need to keep up with the markets adaption of technological advances, these types of projects have increased dramatically.

They can be smaller projects lasting a couple of months, or huge programs that take years to complete.

Examples of technological advances that can lead to the initiation of a project are:

  • A new version of your organizations inventory control system has been released, and you initiate a project to update to the new version
  • A technological advance in microprocessors has made it possible to storm actual date or in a smaller space.  Your company initiate a project to redesign an entire line of products to take advantage of the smaller size and lighter weight now possible
  • Your organisation does sensitive work for the government.  Because of heightened security concerns and the development of cost effective retinal imaging systems, your organization is upgrading the security protocols for entrances, exits, and computer access to sensitive data

PMP – Legal requirements

Legal requirements can include new laws, regulations, code compliance, safety requirements, or any other type of situation where a government agency imposes a new requirement.  Examples are:

  • The emissions standards for specific chemical that your organization uses have got far more restrictive.  Your organization initiate a project to upgrade the workplace several pieces or commitment and be recertified by the enforcing agency
  • Because they have been several instances of the organizations in your field misappropriating funds and not following good accounting practices, the government has passed new reporting, accountability, and transparency regulations for reporting.
  • Your reporting system does not support a new requirements, so the project is initiated to implement the new reporting regulations
  • Your company builds high-end custom homes.  Last month, a number of homes in the area were damaged by mud and debris runoff and particularly wet rainy season.
  • The local city council enacted a law that requires all retaining walls to support heavier weight.  Your company initiate a project to retrofit all loans in be impacted area

PMP – Ecological impact

These types of projects are often mandated, and us in some cases it can be considered a combination of ecological impact and legal requirements.

Examples are:

  • To become more environmentally conscientious, your company institute a recycling program.  The initial startup of the programme is considered a project
  • To reduce waste water treatment costs, your organization decides to build its own waste water treatment facility and sell the treated water back to the city for irrigation and other non-profitable uses
  • To be considered an “ECO friendly” company, your organization undertakes a project to get all of its buildings leadership in energy and environmental design certified

PMP – Social need

Many government agencies to project based on social needs.  These projects can also be in response to a disaster.  Some organisations undertake social need projects to be good corporate citizens.

Examples of social needs that can lead to the initiation of a project are:

  • An earthquake causes significant damage to a third world country.  Your organization provides tender workers for 20 weeks to help rebuild the infrastructure
  • The county agency initiates a project to collect coats and blankets for the homeless and poor for the coming winter months
  • A hospital produces a 10 kilometre run to raise awareness for heart healthy eating habits and exercise

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