Established project management models offer a system of knowledge about the logical process of project development. It starts with an analysis of the environment in which the project will take place. Processes, disproportions, deficits, and development potential are explored through the application of appropriate methods and techniques.
The role of stakeholders is evaluated to establish possible partnerships and support for the project. The main problems and goals of the project are identified. Through the logic modeling approach, the elements of the project and the relationships between them are formulated.
The planning of activities and resources is based on determining the required volume of activities, the types of work, the time for their implementation, the assessment of the resource provision of the defined activities.
Current project management theory and practice pay attention to the effectiveness of their use. To this end, success factors are derived that have a significant impact on the sustainability of the benefits generated by the projects. The nature and relative importance of these factors depend on the specific characteristics of the project. Knowledge of these factors is essential to achieve better project management results.
Analysis of the environment
Each project is part of a broader “context”. A single project is influenced by the various economic, social, and political processes that take place in society. A good understanding of the overall context of the project is very important for planning. The environmental analysis determines the environment the project needs to be implemented.
Environmental analysis
Environmental analysis requires the use of a considerable amount of information and the carrying out of specific studies for the region, the sector, etc. Data on the overall context can be collected from official statistics, from regional and local development plans through surveys, analyses, and direct observations. The information collected is summarized, systematized, and analyzed.
SWOT analysis and STEP analysis
Two methods are used for environmental analysis: SWOT analysis (analysis of strengths and weaknesses, opportunities and threats to the development of the region) and STEP analysis (analysis of processes and trends in the region). These popular strategic planning techniques are applied to select the appropriate strategy for the development of the region.
A quantitative description of the existing situation
The analysis of the environment begins with a quantitative description of the existing situation in terms of disproportions, deficits, and development potential. The STEP analysis examines the social, technological, economic, and political processes and trends in the region. The social dimensions are identified through culture, health care, education.
The processes related to the technological state are quite diverse: availability of information and communication technologies, Internet access, technical level, and the ability to adopt imported technologies, etc. In economic processes, issues such as the rate of economic growth, inflation, and the current environment are studied.
Attention is paid to environmental legislation and practice. In the study of political processes, important elements are labor, tax, customs, political situation, the degree of development of democratic processes, protection of human rights. Based on the results obtained, a map of the current problems is created, and the causes that led to these problems are examined.
Analyzing strengths and weaknesses and development potential
Environmental analysis continues to explore the region concerned by analyzing strengths and weaknesses and development potential. The use of SWOT analysis serves as a safeguard against setting unattainable goals for the development of the region. It focuses attention on the process of assessing conditions and the environment, on the analysis of strengths and weaknesses, and on the positioning of governing bodies so as to make the most of external opportunities and to address existing challenges in the most appropriate way.
A SWOT analysis requires that the strengths, weaknesses, opportunities, and threats be identified in a synthesized form in accordance with their inherent differentiating criteria:
Strengths
Strengths (advantages) of the region, i.e., its potential - those internal conditions and factors (economic, financial, human resources, etc.) that give it a competitive edge;
Weaknesses
Weaknesses of the region, i.e., the difficulties it faces - those internal conditions and factors that reduce its competitiveness and impede its development, current and paramount problems;
Opportunities
Opportunities of the region that are both within and beyond its control - the conditions of the external environment and the tendencies that contribute to the achievement of present or future success and which could positively influence it in the future;
Threats
Threats (dangers), i.e., the likely future that the region expects if no action is taken - the conditions of the external environment and the tendencies which, in adverse circumstances, could negatively affect its development in the future.
A general framework for this type of analysis is applicable, reflecting the interaction of internal (strengths and weaknesses) and external factors (opportunities and threats).
Strengths and opportunities are factors for the future development of the region
Strengths and opportunities are factors for the future development of the region. They are the basis for ensuring sustainable development. Weaknesses and threats are the factors limiting the chosen future development. Effective measures must, therefore, be taken into account in order to overcome them or eliminate them altogether.
In order to obtain a consistent set of actions that produce the required result at an acceptable cost of resources, the following sequence of assessment of the real situation in the region has been adopted.
The environment in which the region is developed is evaluated objectively and critically. The environment is purposefully assessed, identifying hazards, i.e., the mandatory restrictions that must be kept in mind in order to exclude costly and ineffective decisions and actions. The other element of purposeful evaluation is opportunities, i.e., favorable conditions (existing or realistically expected in the future) that can be used for faster development.
The state of the region being targeted
The state of the region being targeted is assessed objectively and critically. Evaluation is made by activity lines. The result of the evaluation, compared to other similar regions, is a list of strengths and a list of weaknesses.
Opportunities and environmental hazards are compared with the strengths and weaknesses of the region in the following scheme:
- Opportunities - Strengths: How to make the most of the two elements?
- Opportunities - Weaknesses: How to minimize the impact of the weaknesses of the region in order to make full use of the opportunities of the environment?
- Hazards - Strengths: How to use the strengths of the region to minimize the impact of hazards?
- Dangers - Weaknesses: How to minimize the two elements?
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Summary
Project management models provide knowledge on the process of project development. The environment is analyzed, stakeholders are evaluated, and goals are identified. Logic modeling is used to formulate the elements and relationships of the project. Activities and resources are planned based on volume, type, time, and resource assessment. Success factors are derived to ensure the sustainability of project benefits. Understanding these factors is crucial for better project management results.
Economic, social, and political processes
Projects are influenced by economic, social, and political processes in society, so it's important to understand the overall context for planning. Environmental analysis requires collecting data from official statistics, regional and local plans, surveys, and observations. This information is then analyzed using SWOT analysis and STEP analysis to select the appropriate strategy for regional development.
The analysis of the environment starts with describing the current situation in terms of disproportions, deficits, and development potential. The STEP analysis examines social, technological, economic, and political processes and trends. Social dimensions are identified through culture, health care, and education. The availability of information and communication technologies, Internet access, technical level, and the ability to adopt imported technologies are studied in technological processes. Economic processes include economic growth, inflation, and the current environment. Environmental legislation and practice are also studied. Political processes include labor, tax, customs, political situation, the degree of development of democratic processes, and protection of human rights. The results are used to create a map of current problems and examine their causes.
Identifying strengths, weaknesses, opportunities, and threats
Environmental analysis examines the region by identifying strengths, weaknesses, opportunities, and threats. SWOT analysis helps to avoid setting unattainable goals by assessing conditions and positioning governing bodies. Strengths are internal factors that give the region a competitive advantage, while weaknesses hinder its development. Opportunities come from both internal and external factors that contribute to success, and threats arise from adverse external conditions. This analysis considers both internal and external factors.
Strengths and opportunities are important for the sustainable development of the region, while weaknesses and threats limit progress. Effective measures must be taken to overcome or eliminate them. To achieve desired results at an acceptable cost, the real situation in the region must be assessed, including identifying hazards and opportunities for faster development.
Assessment of the targeted region is done objectively and critically, resulting in a list of strengths and weaknesses compared to similar regions. Opportunities and environmental hazards are evaluated in relation to the region's strengths and weaknesses. The four possible scenarios are: maximizing opportunities and strengths, minimizing weaknesses while taking advantage of opportunities, using strengths to mitigate environmental hazards, and minimizing both dangers and weaknesses.
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