Project Management:

Project Context

Nader Jarmooz 2012

Context StatementEvery project exists within a context

• The Context statement establishes the external framework for the project in relation to organisational gaols and objectives

• It sets the scene for the project, its outcome, and relevance in terms of the organisational strategy

• It identifies the external factors that can influence the project and its external dependencies

Context Statement

The context statement – in conjunction with the Scope statement – should be developed at the project definition stage and will have a profound input into the project Rationale statement.

The context statement helps senior management with decision making in terms of prioritisation of the project in relation to available resources.

Context StatementProjects do not exist in a vacuum, nor are they divorces from the organisation’s other activities. Though each project is unique and a stand-alone endeavour, nevertheless, it must make valid contribution to overall organisational objectives and goals.

When establishing the project context Young (2006) recommends that the project, its timely outcome, and relevance to other projects within the firm’s portfolio must be considered in order to align the undertaking with organisational strategy.

Context StatementProject contextualisation defines and validates the external factors. when developing the context it is imperative to consider the following issues:

Legal and statutory obligations professional standards technological advances financial and economic factors national and international boundaries dynamic and evolving market geopolitical issues socioeconomic benefits and constraints

Context Statement

Defining the context requires close examination of the problem statement. The first questions to be considered are:

•why the project should go ahead?

•what does the project aim to achieve?

•how will it interact with other planned projects?

Context Statement

To answer the above questions it is important to consider the project’s ‘fit’ within overall organisational direction and identify the benefits it offers

Field and Keller (1998) suggest if the ‘fit’ is identified at an early stage, then it may be possible to address a wider set of organisational concerns and increase the available resources in recognition of the increased value and fringe-benefits it offers to the organisation beyond its planned scope.

Context Statement

Conversely, if the project does not fit within the organisational strategy, then the feasibility of the project becomes doubtful and resources will be allocated to more ‘fitting’ projects.

Turner (1993) defines the context as an abstract concept, though it also includes the environment where the physical activity within the constraints of economic, social and ecosystem in which the project exists

Context StatementTurner (1993) argues that the context has three primary elements:

1. Project and corporate strategy: the organisation needs the result to fulfil its obligations and achieve its long term objectives,

2. The parties involved: the needs of stakeholders, users, supporters, and parent organisation must be identified and managed,

3. Strategic management of project: the project manager, project team, and stakeholders must be in unison with regards to understanding the project purpose and objectives; and recognise issues in respect of the triple constraints of time, scope, and resource management.

Therefore successful management of a project within its identified context requires adoption of a strategic management approach. Organisational strategy and strategic management can only be achieved within a given particular context and is dependent on the enterprise, its activity, and the greater environment (Macmillan and Tampoe, 2000).

Therefore the context has great bearing on the project scope and determines the strategic issues that the project needs to address.

Context Statement

SummaryContext encompasses both fact and perspective, and can be both objective and subjective depending on the final outcome and points of view. Project context provides the fit within organisational strategy and customer requirements with regards to its goals and objectives.

The context relates the project to its wider environment and establishes justification for its approval and continuation.

One important point to consider is the ever changing façade of a given context in response to a changing internal and external environment. Therefore, the project context must remain dynamic and match the requirements in a rapidly changing world in order to provide a viable and timely solution.

http://lessons.lerntipp.at/4/lesson-plan-2-project-planning-concepts

http://www.rationaldb.com/project-life-cycle-requirements/module3/define-project-context.php

http://www.bis.gov.uk/assets/biscore/corporate/docs/g/10-1257-guidelines-for-managing-projects.pdf

Further Readings

YouTubehttp://www.youtube.com/watch?v=iY7xZ8Nut5A

References:

Field, M, and Keller L, 1998, Project Management, London, International Thomson Business PressMacmillan, H, and Tampoe, M, 2000, Strategic Management, Oxford, Oxford University Press

Turner, J.R., 1993, The Handbook of Project-Based Management, Maidenhead , McGraw-Hill Publishing Company,

Young, T, 2007, Successful Project Management, 2nd ed, London, Kogan Page Ltd