Business Environment – Project Compliance: Best Practices
Project compliance encompasses a wide range of regulations and standards that projects must adhere to for successful execution. It’s crucial for the project team to understand the origins of compliance-related threats and how they can be identified and managed.
Awareness and Initial Assessment
Before a project kicks off, a project manager should assess the compliance knowledge within the organization. Knowing who handles compliance—often a project stakeholder—is fundamental. Understanding the impact of legal or regulatory requirements, such as workplace safety and data protection, lays the foundation for effective compliance management. Moreover, project teams must be informed about compliance matters—a direct inquiry can be an effective means to gauge their understanding .
Proactive Compliance Management
Managing compliance risks proactively is not an optional step; it’s a necessary one. Project managers must be ready to execute quality audits and validate legal and regulatory compliance continuously. Risks associated with compliance must be documented, with a clear risk owner and defined responses for potential risk realization. This approach avoids the pitfalls of addressing compliance too late in the project, which can lead to more severe issues .
Best Practices for Compliance
- Documentation: Keep updated records of compliance needs and risks. Having well-documented compliance procedures and requirements sets a clear standard for the project team to follow .
- Risk Planning: Compliance should take a front seat during risk planning sessions. Prioritize and evaluate compliance-related risks to ensure they’re managed effectively .
- Compliance Council: Establish a council that includes quality/audit specialists and legal/technical experts who understand the nuances of compliance in your specific industry .
- Formal Audits: Conduct regular compliance audits using both internal and external bodies to ensure adherence to all standards. These audits should be as frequent as possible, integrated throughout the project’s lifecycle, not just at the end .
- Compliance Stewardship: Embrace your role in compliance. It’s the project manager’s responsibility to ensure the project stays within compliance boundaries, educating the team, and rectifying any non-compliances .
Compliance Classifications and Tailoring
Compliance categories such as environmental risks, workplace health and safety, ethical practices, and quality standards differ based on the project’s industry, solution scope, and unique legal exposures. As a PMP test taker, it’s essential to recognize that compliance is not a static set of rules applied uniformly across all projects. Instead, it must be tailored to each project’s specific context, taking into account the industry, geography, and particular project needs. Consulting with subject matter experts and referring to the organization’s process assets can help categorize and manage these compliance requirements effectively .
In essence, understanding and managing project compliance is about more than meeting legal obligations—it’s about ensuring that the project contributes positively to the organization and its stakeholders while maintaining ethical and quality standards. For PMP aspirants, this knowledge underscores the importance of incorporating compliance into the very fabric of project planning and execution.
For those looking to accelerate their PMP exam preparation while gaining a solid foundation in project management, consider exploring our comprehensive PMP program. This program is designed to equip you with the necessary skills and knowledge to not only pass the PMP exam but also excel in managing complex projects in any environment.
