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PRINCE2 2009 - Directing Projects with PRINCE2 part 54

Give ad hoc direction

Respond to external influences

It is the particular responsibility of Project Board members to be sensitive to factors in the external project environment, which may have an impact on project viability or plans.


It demonstrates a good professional awareness of project disciplines to discuss external factors as potential issues and risks.
Alerting the Project Manager to factors in the wider environment can often affect the project’s Communication Management Strategy and may need to be reflected in the preparation of plans.

If external influences or events have a decisive impact on the Business Case, risks or plans, the other Project Board members should be alerted and the Project Manager informed so that the need to invoke the exception process can be considered.

Business, corporate or programme management influences

Part of the Executive’s responsibility is to be aware of changes in corporate or programme strategies which affect the project, but it is possible that these may also come to light via other Project Board members.
For instance, Senior Suppliers may become aware of new standards, methods, techniques or equipment that might have a bearing on the development of the solution; Senior Users may similarly learn of new requirements or market changes that are relevant.

Example of beneficial external influence

In an IT services company, a manager was acting as Senior Supplier on the Project Board of several projects.
In the course of one project he discovered that some expensive new equipment had been ordered which was subsequently found to be surplus to requirements.
He was quickly able to redirect the equipment to a second project (with a different customer), offsetting the potential for wasted expenditure.

All Project Board members should be alert to changes in the host environment which may impact the project.

For larger projects, it is important to recognize that the influences operate both ways.
The project has needs and obligations which also have to be respected in the wider business environment.
So it is often part of the Project Board members’ responsibilities to champion and advocate the project in the wider corporate and business environment (just as the director of a line function would do for their department).
However, if the project is part of a programme, this wider business engagement would normally be managed, or at least coordinated, at programme level.

‘PESTLE’ influences

Depending on the scope of the project, similar considerations may apply to the wider project environment.
PESTLE is a commonly used acronym for the types of influence that might be encountered in many projects and all sectors, i.e. Political, Economic, Social, Technological, Legislative and Environmental.

For instance, project Executives and Senior Users (particularly for government projects) are frequently aware of potential Budget or legislative proposals that may impact their projects or represent risks.
Senior Suppliers, similarly, may be aware of technology changes relevant to the project that might merit a significant change in the project approach or the current proposed solution.
It demonstrates a good professional awareness of project disciplines for Project Board members to discuss external factors.

Project Managers are often, of necessity, very focused on delivering in accordance with current plans.
By contrast, Project Board members will have a wider perspective.
It is not difficult to imagine the potential impact - both on project work and potential risks and opportunities - of major changes such as:

  • The microcomputer revolution in the 1980s
  • The internet in the 1990s
  • The ‘credit crunch’ that emerged in 2008
  • The expansion of the European Union
  • Global warming
  • Fluctuating oil prices
  • Rising food prices
  • Globalization
  • Off-shore outsourcing

Accordingly, it is easy to see that where Project Board members identify the potential impact of such changes early in the project, they can influence the results of the work immensely - whether by limiting the damage, reducing costs or significantly increasing benefits such as competitive advantage.

All references above are in Directing Successful Projects with PRINCE2® unless stated otherwise.

PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.

This product contains EVERYTHING in the publications:

Managing Successful Projects with PRINCE2 - 2005 edition
Managing successful Projects with PRINCE2 – 2009 edition
Directing Projects with PRINCE2.
plus:
The Complete Project Management package.

And much more besides - at a fantastic price.