Apart from Project Management Professional(PMP)®, PRINCE2® (PRojects IN Controlled Environments) is one of the most widely used methods for managing projects across the globe. It is a very methodical way of managing projects based on experience drawn from various projectsand from the contributions of numerous people who worked using PRINCE2, such as project sponsors, project managers, project teams, academics, trainers and consultants.
Its generic designcan be applied to any project regardless of project scale, type, organization, geography or culture.
It separates the project management work from specialist contributions, like design or construction
Focus is on describing what needs to be done, instead of prescribing how project is to be done.
PRINCE2®:
is based more on governance for project management
is tailored to meet the needs of the organization
is implemented alongside industry-specific models e.g. ’engineering models’ or ‘development lifecycles’
helps participants focus on the viability of the project in relation to objectives mentioned in the business case
makes sure that everybody involved isrepresented in planning and decision-making, appropriately
inspiresto learn lessons from experience in the projects and helps in continual improvement within the organizations.
PRINCE2 in Project Management
Some characteristics of project work that differentiates itself from business as usual (BAU)are:-
Change -Projects are a great catalyst for introducing change.
Temporary -Projects have a definite start and a definite end.
Cross-functional -people having different skills worktogether
Unique -each project will be unique such as it involvesa different customer,a different time.a different team, a different location
Uncertainty–All projects carry a very high uncertainty – threats and opportunities.
What are six project constraints that we wish to control throughout a project
Costs–spending depends on the budget given to the project manager
Timescales -A question the project manager is most frequently asked: Whatis your expected project completion date?
Quality - products must be fit for the purpose for which they are produced.
Scope–What is in-scope and out-of-scope of the project
Benefits– What is the reason for doing this?Avery crystal-clear understanding of the purpose of the project is required by the project manager
Risk - All projects are risky but project manager must be aware of exactly how much risk weare in a position to accept
PRINCE2 assumes that there will be -
a customer who will specify the requirement of a product
a supplier who will provide all skilled resources to deliver that product
PRINCE2 Structure
The PRINCE2 Seven Principlesare:-
1. Continued business justification -A PRINCE2 project has continued business justification.
All PRINCE2 projects require that:
for starting the project, there has to be a justifiable reason
this justification must be recorded and approved
the justification must remain valid and is revalidated, throughout the project life-cycle to ensure that the project remains in line with the benefits which contribute to business objectives
justification is documented either as a business case document or may use some business plans or any other similar document
2.Learn from experience - lessons learned (seek), recorded and acted upon throughout the project.
3. Defined roles and responsibilities - within an organization structure engages the business, user and supplier stakeholder interests
4. Manage by stages -A PRINCE2 project is planned, monitored and controlled on a stage-by-stage basis.
In PRINCE2, a project must have at least two management stages:
an initiation stage
at least one further management stage.
5.Manage by exception -tolerances are defined for each project objective, to set limits for delegating authority.
6.Focus on products–focus ismore on the defining the products and delivery of products, including quality requirements.
7. Tailor to suit the environment -PRINCE2 can be tailored to suit the project size, complexity, team capability, environment, importance and risk. Project manager and project board will have to make choices including decisions on how PRINCE2 should be applied on the project.
PRINCE2 SevenThemes
The PRINCE2 Seven Themes are -
Business Case (Why?):a project usually starts with an idea or a concept which is then considered to have potential value for the organization concerned. This theme addresses how the idea is developed into a viable investment proposition for the organization and how project management maintains the focus on the organization’s objectives throughout the project.
Organization(Who?): organization which commissions the project needs to allocate the work to managers who will be responsible for it and steer it through to completion. Projects are cross-functional. This theme describes the roles and responsibilities the project management team is required to have, in order to manage the project efficiently and effectively.
Quality(What?):all participants understand the quality attributes of the products to be delivered and then how the project management will ensure that these requirements are ultimately delivered.
Plans(How? How much? When?):
project plan for the project as a whole, will usually be a high-level plan, providing indicativetimescales, milestones, cost and resource requirements based on estimates
detailed stage plan for the current management stage, aligned with the overall project plan timescales, produced before the start of that stage
exception plans show actions performed to recover or come back on track from or avoid a forecast deviationfrom agreed tolerances, applies to project plan or stage plan
a number of work packages are developed using detailed team plan
Risk(What if?): addresses how project management manages uncertainty.
Change(What is the impact?): describes how project management assesses and responds to issues which have a potential impact on any of the baseline aspects of the project such as its plans and completed products. Issues may be instances of a product not meeting its specificationor requests for change orunanticipated general problems.
Progress (Where are we now? Where are we going? Should we carry on?): addresses the ongoing viability of the plans. This thememonitors actual performance, explains the decision-making process for approving plans and the escalation process if events do not go according to plan. Ultimately, it determines how and whether the project should proceed.
PRINCE2 Seven Processes
The PRINCE2 Seven Processes are:-
Starting Up A Project (SU)
Purpose
to ensure that the prerequisites for initiating a project are in place by answering the question: Do we have a viable and worthwhile project?
base information needed to make rational decisions such as commissioning of the project is defined, key roles and responsibilities are identified and resources are allocated and a foundation fordetailed planning is made available.
Objective: To ensure that:
a business justification is documented in an outline business case, for initiating the project
necessary authorities exist, for initiating the project
project brief is available to define and confirm the scope of the project
a feasible project approach is selected after evaluating different delivery approaches
individuals are appointed who will undertake the project work
the work required for project initiation is planned and documented in a stage plan
Directing A Project (DP)
Purpose: To enable project board
to be accountable for the project’s success by making key decisions and exercising overall control of the project and
delegating day-to-day management of theproject to the project manager
Objective
To ensure that
someauthority existsto initiate the project, to deliver the products and close the project
management direction and control are provided to all concerned throughout the project’s life
project remains viable at every stage
corporate, programme management or the customer has a transparent interface to the project
post-project benefits realization plans are reviewed and managed
Initiating A Project (IP)
Purpose
to establish asturdy foundation for the project
to understand the work that needs to be done to deliver the project’s products before committing to a large spend
Objective: to ensure that there is a common understanding of -
what are the reasons for doing the project, what benefits are expected and what are the associated risks
what is the scope of the work and what are the products to be delivered
how the products will be delivered, whenshould they be delivered and what would be the cost involved at that point of time
What the project decision-making teamis comprised of
how the required level of quality is be achieved
how baselines can be established and controlled
how risks, issues and changes can be identified, assessed and controlled
how progress of the project can be monitored and controlled
who requires which information, in what format and at what point of time
Controlling A Stage (CS)
Controlling A Stage (CS)
Purpose: To assign and monitor work, deal with issues, report progress to the project board and take corrective actions to ensure that the management stageremains within tolerance
Objective: to ensure that:
proper attention is focused on delivery of the management stage’s products by monitoring to avoid uncontrolled change and loss of focus
risks and issues are tracked to keep them under control
business case is reviewed at appropriate times
agreed products for the management stage are delivered to stated quality standards, within cost, effort and time agreed
project management team is focused on delivering within the tolerance level set
Managing Product Delivery (MPD)
Purpose:is to control the link between the project manager and the team manager(s). Both agree on requirements for acceptance, execution and delivery.
Objective: to ensure that:
product related work allocated to the team is authorized and agreed upon first
team managers, team members and suppliers are clear about what needs to be produced and what is the expected effort, cost or timescales
planned products are delivered to expectations and within tolerances
accurate information on progress of product development should be provided to the project manager at an agreed frequency to ensure that expectations are managed
Managing a Stage Boundary (SB)
Purpose:to enable the project manager to provide the project board with sufficient information to be able to:
review the current management stage if it has completed successfully
approve the next stage plan
review the updated project plan
confirm continued business justification and acceptability of the risks
Hence, this process should either be executed at the end of or close to the end of each management stage.
Objective: is to:
give an assurance tothe project board that all products produced in the stage plan for the current management stage aredeveloped by the team and approved
preparethe next management stage plan
review the PID documentsand if necessary, update the business case, project plan, project approaches, project management team structure and role descriptions
provide all the accurate information required by the project board to assess the continuing viability of the project
record any information gathered or lessons learned that can help later management stages of the current project and/or other/future projects
request authorization to start the next management stage from the project board
For exceptions, the objectives are to:
review the PIDdocuments and if necessary, update the customer’s quality expectations, projectapproaches and controls and role descriptions
provide all the accurate information required by the project board to assess the continuing viability of the project
prepare an exception plan as directed by the project board
without fail and further delay project manager must seek approval to replace the project plan or stage plan for the current management stage with the exception plan
Managing a stage boundary is not performed towards the end of the final management stage,exceptan exception plan may be created on need basis.
Closing A Project (CP)
Purpose
provide a normal termination point at which acceptance of the project’s product is confirmed and accepted by the user group
recognize that objectives set out in the original PID documents have been achieved (or approved changes to the objectives have been achieved), or that the project has nothing more to contribute
Objective
verify that the final product has been accepted by the user
make sure that the operations are able to support the products when the project is disbanded
review the performance of the project against its baselines
assess any benefits that have been realized during the project cycle and update the benefits management approach to include any post-project benefit reviews
ensure that provision has been made to address all open issues and risks, with follow-on action recommendations
Team roles in PRINCE2
Project Board
Members: Executive, Senior Users and Senior Suppliers
Responsibilities
Accountable for the success or failure of the project
Provides unified direction to the project
Delegates effectively
Facilitates integration
Authorizes the funds
Effective decision-making
Supports the project manager
Ensures effective communication
Executive
Appointed by Corporate, Programme management or Customer
Ultimately responsible for the project
Key decision maker, buck stops at him
Ensures project is focused throughout its life on achieving its objectives
Ensures project delivers value for money
Ensures project is aligned to corporate strategy.
Responsibilities
Design and appoint project management team
Oversee development of the Project Brief
Oversee development of detailed Business Case
Secure funding for the project
Hold Senior Supplier accountable for the quality and integrity of the product
Hold Senior User accountable for realizing the benefits
Monitor and control the progress at strategic level
Chair Project Board reviews
Project Manager
Given authority to run the project on a day to day basis
Ensures that the project produces the required products
Responsible for producing the result capable of achieving the benefits as stated in the business case
Responsibilities
Produce key project documents
Prepare key project reports
Maintain key project records
Liaise with corporate, programme management or customer
Liaise with external suppliers
Lead and motivate the project management team
Manage information flows between various levels of the project
Manage production of the required products
Establish and manage the project procedures
Authorize Work Packages
Advise the Project Board of any deviations from the plan
Senior User
Specifies the needs of those who will use the project’s products.
Represents the interests of :
Those who will use the project’s products.
Those for whom the products will achieve an objective
Those who will use the products to deliver benefits
Responsibilities
Provide the customer’s quality expectations
Ensure project products deliver the desired outcomes
Ensure that expected benefits are realized
Resolve user requirements and priority conflicts
Ensure availability of user resources
Make decisions on escalated issues
Undertake Project Assurance from user perspective
Senior Supplier
Represents interest of those producing the project products
Accountable for quality of products delivered by the supplier
Responsible for technical integrity of the project
Responsibilities
Assess the viability of the project
Ensure that proposals are realistic
Advise on the selection of product methods
Ensure that supplier resources are made available
Make decisions on escalated issues
Resolve supplier requirements and priority conflicts
Ensure adherence to quality procedures
Undertake Project Assurance from supplier perspective.
Project Assurance
Covers the primary stakeholder interests
Has to be independent of the Project Manager
Has sufficient credibility
May be from corporate, programme management or customer organization.
Responsibilities
Liaison between business, user and supplier is maintained
Risks are controlled
Right people are involved in writing product descriptions
Right people are planned and involved in quality inspections
Staff are properly trained in quality methods
Quality methods are adhered to
An acceptable solution is being developed
Applicable standards are being used
Change Authority
Authority for approving responses to requests for change or off-specifications
Adequately represents the business, user and supplier interests
Has sufficiently credibility
Change Authority could be assigned to:
Corporate or Programme management
Project Board
A nominated person / body
Project Manager.
Responsibilities
Review and approve or reject all requests for change and off-specifications within the delegated limits of authority and change budget set by the Project Board.
Refer to the Project Board if any delegated limits of authority or allocated change budget are forecast to be exceeded.
Project Support
Is mainly concerned with providing administrative services or advice and guidance on the use of project management tools.
Is the responsibility of the Project Manager.
May be delegated to other roles or a separate role.
Project Support and Project Assurance roles must be kept separate.
Responsibilities
Set up and maintain project files
Establish document control procedure
Collect data – actuals and forecasts
Update plans and maintain them
Administer quality review progress
Administer project board meetings
Assist with compilation of reports
Contribute expertise in tools and techniques
Maintain key records
Administer the configuration management procedure.
Team Manager
Reports to and takes direction from the Project Manager
Responsible to ensure production of products allocated by the Project Manager
Reasons for allocating a separate Team Manager :
Size of the project
Specialist skills or knowledge needed
Geographical location, or
Preferences of the Project Board.
Responsibilities
Prepare the Team Plan
Produce Checkpoint Reports
Plan, monitor and manage the team’s work
Ensure progress of team’s work and use of team resources
Identify any issues and risks associated with a Work Package
Advise Project Manager of any deviations
Handover completed and approved products
Liaise with Project Assurance and Project Support roles
Plan and manage quality activities relating to team’s work.
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Types of PRINCE2 documentation
Throughout PRINCE2 project, documentation is maintained as management products.
There are three types of management product: baselines, records and reports.
Baseline management products: are those that define aspects of the project and, when approved, are subject to change control. These are:
Benefits management approach
Business case
Change control approach
Communication management approach
Plan (covers project plans, stage plans, exception plans and, optionally, team plans)
Product description
Project brief
Project initiation documentation (PID)
Project product description
Quality management approach
Risk management approach
Work package
Records management products:are dynamic and they maintain information regarding project progress. These are:
Configuration item record
Daily log
Issue register
Lessons log
Quality register
Risk register.
Reportsmanagement products:provide a snapshot of the status of certain aspects of the project. These are:
separates the management of project work from the specialist contributions, such as design or construction.
focuses on describing what needs to be done, rather than prescribing how everything is to be done focusing on describing what needs to be done, rather than prescribing how everything is done.
Characteristics of project work that differentiates itself from business as usual (BAU) are Change, Temporary, Cross-functional, Unique and Uncertainty
We wish to controlCost, Timescale, Scope, Quality, Benefits and Riskon a PRINCE2 project
PRINCE2 assumes that there will be -
a customer who will specify the desired result
a supplier who will provide the resources and skills to deliver that result
PRINCE2 principles are :-
Continued business justification
Learn from experience
Defined roles and responsibilities
Manage by stages
Manage by exception
Focus on products
Tailor to suit the project
PRINCE2 Themes are :-
Business Case
Organization
Quality
Plans
Risk
Change
Progress
PRINCE2 processes are :-
Starting Up a Project (SU)
Directing A Project (DP)
Initiating A Project (IP)
Controlling A Stage (CS)
Managing Product Delivery (MPD)
Managing a Stage Boundary (SB)
Closing A Project (CP)
PRINCE2 Team roles are – Project Board (Executive, Senior User and Senior Supplier), Project Manager, Team Manager, Project Assurance, Change Authority and Project Support
Throughout PRINCE2 project, documentation is maintained as management products - baselines, records and reports.
Kevin D.Davis
Blog Author
Kevin D. Davis is a seasoned and results-driven Program/Project Management Professional with a Master's Certificate in Advanced Project Management. With expertise in leading multi-million dollar projects, strategic planning, and sales operations, Kevin excels in maximizing solutions and building business cases. He possesses a deep understanding of methodologies such as PMBOK, Lean Six Sigma, and TQM to achieve business/technology alignment. With over 100 instructional training sessions and extensive experience as a PMP Exam Prep Instructor at KnowledgeHut, Kevin has a proven track record in project management training and consulting. His expertise has helped in driving successful project outcomes and fostering organizational growth.
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