Factors that influence an initiative
There exist many factors that can influence a project initiative. Projects are influenced by factors internal and external to the organization. For instance, stakeholders, governance, risks and many other factors have influence over projects.
These internal and external factors can have a positive or negative impact on the project. Project Managers need to know these elements in order to intervene in a timely manner and avoid or reduce negative effects.
Internal influences on projects
Among internal influences that can affect a project is organizational culture. Organizational culture is the set of beliefs, principles, values and ways of interacting that create the unique social and psychological environment of an organization.
In addition, there is also corporate governance that can influence a project positively or negatively:
“Corporate governance… involves a set of relationships between a company’s management, its board, its shareholders, and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.” ~ The Organisation for Economic Co-operation and Development.
Another internal factor can be the presence of software. In fact, the existence or not of certain type of software such as scheduling software tools, web interfaces, automated systems and so on, can have an influence on projects.
Finally, also resource availability can surely have an impact on projects. Examples include contracting constraints, approved providers, and collaboration agreements.
External influences on projects
Among external influences that can affect a project is marketplace conditions. In fact, Project Managers and organizations should always be aware of any outside developments and market conditions. In addition, if necessary, they should be ready to respond and change plans quickly.
Social and cultural influences which include political climate can influence a project. In fact, from development project’s perspective, these factors contribute to an environment of uncertainty on return of capital investment. Political instability may result in frequent change of governments or stimulate abrupt change of policies. As a result, this will adversely affect the successful achievement of project objectives.
Finally, legal factors which include absence of appropriate regulatory systems, rates and methods of taxation, role of local courts in arbitration and so on can block or delay a project.
Keep in mind
Many are the factors that can influence a project. So, Project Managers and in general companies need to know these factors in order to act promptly and guarantee the project success.