Socioeconomic and Environmental Influences

As the world becomes more global, international, and complex in its economic perspective, a multitude of factors can influence a project. These include government regulations and industry standards, which are viewed as ways to safeguard society from inappropriate business practices. Many of these are a result of unprofessional situations that have been identified after they have occurred for example, the Enron and WorldCom stock market problems, where investors were defrauded of millions of dollars. The PMBOK defines these attributes as follows:

• Standard A standard is "a document approved by a recognized body that provides for common and repeated use, rules, guidelines, or characteristics for products, processes, or services with which compliance is not mandatory." Companies frequently set standards for their own products, services, and employees. These are not mandated by the government or regulatory bodies but are generally part of the culture, and many times these factors differentiate a company from its competitors in the marketplace.

• Regulation A regulation is a "document which lays down product, process, or service characteristics, including the applicable administrative provisions with which compliance is mandatory." Government entities frequently create regulations that they feel are in the best interest of society. Examples include regulations concerning pollution levels of factories and automobiles. Fines are usually imposed on companies that do not comply with regulations to act as a deterrent to noncompliance.

Regulations, standards, and the identification of international differences are a necessary part of professional business operations. They are also constraints to a project manager who must incorporate them into the project plan as business requirements. The PMBOK emphasizes the need to acknowledge characteristics, such as cultural differences and economic climates, when developing project plans.

It is not appropriate to only think in American ideologies for the governing requirements of a project. We must think in global terms and how different cultures and economies can impact our timelines, objectives, and success factors. The world can be a volatile environment based on the implications of war, recessions, and economic downturns. Therefore, focusing on the "big picture" is a prerequisite to success and survival.