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separate entities. A demerger or split is also likely to change the overall goals of the

project or perhaps cause its cancellation.

Business Process Change Business process changes typically occur within the
organization. An example of a business process change is automating a process that
previously was performed on paper. If your project has anything to do with this process
or is impacted by the process, changes will be coming your way.

Internal Reorganization A reorganization can impact the resources assigned to

and working on your project. This could potentially delay the schedule, especially if you
will no longer have the resources originally planned for project activities. You’ll need
time to negotiate resource availability with the new managers.

Relocation A relocation involves a physical move of the organization, or parts of the
organization, and may impact your project. There could be resources (both physical
and human) assigned to the project that are targeted for relocation.

Outsourcing Outsourcing occurs when an organization uses external resources to
perform business processes and tasks. Outsourcing usually involves hiring outside

companies to perform business functions or tasks such as payroll, information
technology, security, janitorial services, and so on. Outsourcing project team members,
for example, by bringing in consultants to help with the work, can alter the make-up of
the team. You should watch for team cohesiveness when there are outside members
and make certain to nip conflicts before they arise.

Procurement Planning

Procurement planning is the process of identifying the goods and services required for
your project that will be purchased from outside the organization. If your project
doesn’t require any external resources, you don’t need a procurement plan.

One of the first techniques you should use when thinking about the procurement
planning process is whether you should make or buy the goods and services needed for

the project. Make-or-buy analysis determines whether it’s more cost-effective to
produce the needed resources in-house or to procure them from outside the
organization. You should include both direct costs and indirect costs when using the
make-or-buy analysis technique. Direct costs are those that are directly attributed to
the project, such as costs needed to produce the resource. Indirect costs are those costs
associated with overhead, management, and ongoing maintenance costs. You can also
use make-or-buy analysis when deciding whether it’s more cost-effective to buy

equipment or to lease it. Other considerations to take into account in make-or-buy
analysis include capacity, skill sets, availability, and company trade secrets.

The procurement process is complex and often involves the legal department. Many
organizations have a procurement department that manages all aspects of the process.
If that’s the case in your organization, you’ll want to make certain you understand the
forms and processes you’re required to follow, or you may end up with some significant

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