MARK A ANNUNZIATA, SrVP/EXPERT CONSULTANCY TO THE CONSTRUCTION INDUSTRY| ROMAN STRUCTURES, INC WELLINGTON FLDammam, Eastern Province, Saudi Arabia
In my opinion, Internal EEFs do not exist. They are all Assets of the Organization-thus OPA's.
The Culture, Facilities, IT, Employee Skillsets, and Resources are Assets and usually unique to each Organization. When I am hired by Company B and they use Primavera as opposed to another platform, from an accounting standpoint that is an asset to be depreciated, amortized, etc. Same with Plant and equipment, and HR assets.
EEF's should be limited to influences from the outside that cannot be quantified by the Corporate Accountant such as market conditions, social issues, Codes and Standards.
Why do we confuse these 2 areas?
I would appreciate any clarification on this topic..... Saving Changes...
The main difference between EEFs and OPA's is that OPA is supporting us to make our project successful for example "Lesson Learned" or "Historical Documents" but on the other hand EEF can be constraint in project success for example "Resource availability", "Employee skills, expertise". Saving Changes...
OPAs are internal to the organization things you can touch - policies, standards, lessons learned archives and so on. EEFs are often intangibles like power structure, organizational culture, competitive pressures, market conditions and so on.
Kiron Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
OPA are by definition assets. Assets are useful to the organization.
EEF may be helpful but not necessarily. The organization culture or internal politics often are an impediment, not a help, to your project. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Besides great answers above, I will try to add something. Lot have been written in the new version of the PMBOK Guide, Why? Because key success factor is to apply systemic thinking to organizations and to be successful with project is critical to understand what does means. That is because the new chapter number two inside the PMBOK Guide.To understand about systemic thinking (just in case you did not have the opportunity to know about it) here some references:
[Bunge 1979] Mario Bunge. 1979. A world of systems. Dordrecht; Boston, Reidel.
[Bertalanffy 1968] Ludwig von Bertalanffy . 1968. General System theory: Foundations, Development, Applications. New York: George Braziller, revised edition 1976: ISBN 0-8076-0453-4
Hamel 1996] Gary Hamel & Coimbatore Krishnarao Prahalad. 1996. Competing for the Future. Harvard Business Review Press. ISBN-13: 9780875847160 Saving Changes...
MARK A ANNUNZIATA, SrVP/EXPERT CONSULTANCY TO THE CONSTRUCTION INDUSTRY| ROMAN STRUCTURES, INC WELLINGTON FLDammam, Eastern Province, Saudi Arabia
Thanks for the great feedback. One thing missing from this logic is the definition of Assets in the Accounting sense. Culture, resources, facilities, IT---alll are defined by accounting standards. they are not environmental in any financial sense. 1. Something valuable that an entity owns, benefits from, or has use of, in generating income. 2. Accounting: Something that an entity has acquired or purchased, and that has money value (its cost, book value, market value, or residual value). An asset can be (1) something physical, such as cash, machinery, inventory, land and building, (2) an enforceable claim against others, such as accounts receivable, (3) right, such as copyright, patent, trademark, or (4) an assumption, such as goodwill. Assets shown on their owner's balance sheet are usually classified according to the ease with which they can be converted into cash. From:http://www.businessdictionary.com/definition/asset.html The Culture and Politics would be classified under the Goodwill Category of a business accounting transaction. I think we have the incorrect use of the Term "Assets"
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2 replies by Sergio Luis Conte and Stéphane Parent
Oct 17, 2017 5:06 AM
Sergio Luis Conte
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Mark, the sense is beyond that accounting or any of those things. That is because you have to take into account systemic thinking.
Oct 17, 2017 10:33 AM
Stéphane Parent
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You are making the assumption, Mark, that culture and politics have a constant, positive value to the company.
Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Oct 17, 2017 12:26 AM
Replying to MARK A ANNUNZIATA, Sr
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Thanks for the great feedback. One thing missing from this logic is the definition of Assets in the Accounting sense. Culture, resources, facilities, IT---alll are defined by accounting standards. they are not environmental in any financial sense. 1. Something valuable that an entity owns, benefits from, or has use of, in generating income. 2. Accounting: Something that an entity has acquired or purchased, and that has money value (its cost, book value, market value, or residual value). An asset can be (1) something physical, such as cash, machinery, inventory, land and building, (2) an enforceable claim against others, such as accounts receivable, (3) right, such as copyright, patent, trademark, or (4) an assumption, such as goodwill. Assets shown on their owner's balance sheet are usually classified according to the ease with which they can be converted into cash. From:http://www.businessdictionary.com/definition/asset.html The Culture and Politics would be classified under the Goodwill Category of a business accounting transaction. I think we have the incorrect use of the Term "Assets"
Mark, the sense is beyond that accounting or any of those things. That is because you have to take into account systemic thinking. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Oct 17, 2017 12:26 AM
Replying to MARK A ANNUNZIATA, Sr
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Thanks for the great feedback. One thing missing from this logic is the definition of Assets in the Accounting sense. Culture, resources, facilities, IT---alll are defined by accounting standards. they are not environmental in any financial sense. 1. Something valuable that an entity owns, benefits from, or has use of, in generating income. 2. Accounting: Something that an entity has acquired or purchased, and that has money value (its cost, book value, market value, or residual value). An asset can be (1) something physical, such as cash, machinery, inventory, land and building, (2) an enforceable claim against others, such as accounts receivable, (3) right, such as copyright, patent, trademark, or (4) an assumption, such as goodwill. Assets shown on their owner's balance sheet are usually classified according to the ease with which they can be converted into cash. From:http://www.businessdictionary.com/definition/asset.html The Culture and Politics would be classified under the Goodwill Category of a business accounting transaction. I think we have the incorrect use of the Term "Assets"
You are making the assumption, Mark, that culture and politics have a constant, positive value to the company. Saving Changes...
MARK A ANNUNZIATA, SrVP/EXPERT CONSULTANCY TO THE CONSTRUCTION INDUSTRY| ROMAN STRUCTURES, INC WELLINGTON FLDammam, Eastern Province, Saudi Arabia
All-
Thanks so much for the contributions.
I respectfully offer this Construction PM response:
I have a lecture involving appointments and the critical requirement of people meeting at a scheduled time at a scheduled place. This offer is parallel to that logic:
WORDS have meaning. In order for us to communicate effectively we must utilize those worde efficiently for everyone to understand.
ASSETS is a financial term/word which means (mostly) something Tangible; something a Company can amortize, depreciate, usually a physical asset is something you can touch or feel.
ENVIRONMENT is usually defined as all those OUTSIDE and surrounding forces that
affect something. Good examples would be monetary policy, Banking policy, Weather Conditions, Political Influences, Code requirements.These items you cannot touch or feel, they are more ephemeral and transitory.
Assets are not Environmental. This is the english language. I am concerned because I see PMI exam questions and reports having the same challenges.
Thanks for all the input!
M Saving Changes...
