Projects operate within internal and external environments, each having different levels of influence on value delivery.

• Internal Environment: Includes factors such as organizational culture, existing processes, resource availability, and internal stakeholders.

• External Environment: Comprises economic conditions, regulatory changes, market competition, and external stakeholders

These environments can significantly affect project planning and execution. The impact can be favourable (e.g., strong market demand), unfavourable (e.g., supply chain disruptions), or neutral (e.g., stable resource availability).

Internal Project Environment

The internal environment includes various assets and factors that influence project activities within an organization. These include:

• Process Assets: Tools, methodologies, templates, frameworks, patterns, or Project Management Office (PMO) resources that guide project execution.
• Governance Documentation: Policies, processes, and procedural documents that provide structure and guidance for project activities.
• Data Assets: Databases, document libraries, metrics, data, and artifacts collected from previous projects, serving as a reference for current and future projects.
• Knowledge Assets: Tacit knowledge held by team members, subject matter experts, and other employees, including best practices and lessons learned.
• Security and Safety: Procedures for facility access, data protection, confidentiality, and handling proprietary information to maintain project security.
• Organizational Culture, Structure, and Governance: The organization’s vision, mission, values, leadership style, ethics, and code of conduct that shape how projects are managed.

External Project Environment

The external environment includes external factors that can impact project activities and outcomes. These include:

• Marketplace Conditions: Competitors, market share, brand recognition, technology trends, and trademarks that affect the project’s positioning and market strategy.
• Social and Cultural Influences and Issues: Political climate, regional customs, public holidays, cultural norms, codes of conduct, ethics, and public perceptions that can influence project planning and execution.
• Regulatory Environment: National and regional laws and regulations related to security, data protection, employment, licensing, procurement, and business conduct that the project must comply with.
• Commercial Databases: Standardized cost estimation data, industry risk studies, and market reports that provide valuable information for project planning and decision-making.
• Academic Research: Industry studies, publications, and benchmarking results provide valuable insights for project planning and decision-making.
• Industry Standards: Guidelines related to product quality, production processes, environmental regulations, and workmanship that the project must adhere to.
• Financial Considerations: Factors like currency exchange rates, interest rates, inflation, taxes, and tariffs that can impact project costs and financial viability.
• Physical Environment: Working conditions and weather that may affect project timelines, resource availability, and operational safety.