PRINCE2 For Dummies

1. PRINCE2 is a flexible project management method adaptable to any project

PRINCE2 is impr essively responsible.

Tailored approach. PRINCE2 is not a rigid, one-size-fits-all methodology. It can be adapted to projects of any size or complexity. The key is to apply the principles and tailor the processes to fit the specific needs of your project. This flexibility allows PRINCE2 to be used effectively in various industries and project types.

Core components. PRINCE2 is built around seven principles, seven themes, and seven processes. These provide a structured framework for managing projects while allowing for customization. The principles ensure consistent application, the themes provide areas of focus throughout the project, and the processes guide the project through its lifecycle.

Scalability. Whether you're managing a small internal project or a large, complex initiative, PRINCE2 can be scaled accordingly. For smaller projects, processes can be simplified and combined, while larger projects may require more detailed planning and control mechanisms.

2. Clear roles and responsibilities are crucial for project success

Projects are about people.

Project organization structure. PRINCE2 defines clear roles and responsibilities within the project management team. This structure includes:

• Project Board: Responsible for overall direction and decision-making
• Project Manager: Responsible for day-to-day management
• Team Manager(s): Responsible for delivering project products

Accountability and authority. Each role has specific accountabilities and levels of authority. This clarity helps prevent confusion and ensures that decisions are made at the appropriate level. The Project Board, for example, is accountable for the project's success, while the Project Manager is responsible for its day-to-day running.

Separation of duties. PRINCE2 separates the roles of directing, managing, and delivering the project. This separation ensures proper oversight and prevents conflicts of interest. It also allows for specialized focus at each level of project management.

3. The Business Case drives project decisions and must be kept current

The Business Case is the main driver of PRINCE2 projects and just about everything else fits round it.

Justification for the project. The Business Case outlines why the project should be undertaken, including the expected benefits, costs, and risks. It provides the justification for the project and is used to make key decisions throughout the project lifecycle.

Living document. The Business Case is not static; it should be regularly reviewed and updated as new information becomes available or circumstances change. This ongoing review ensures that the project remains viable and aligned with organizational objectives.

Key decision points. The Business Case is a critical input at stage boundaries and other decision points. The Project Board uses it to determine whether the project should continue, be adjusted, or terminated. This focus on ongoing viability helps prevent projects from continuing when they no longer deliver value.

4. Product-based planning ensures clear project scope and deliverables

PRINCE2 puts in some techniques up front that require a totally different approach when thinking about the project.

Focus on outcomes. Product-based planning shifts the focus from activities to deliverables. This approach ensures that the project team clearly understands what needs to be produced, rather than just what needs to be done.

Key components:

• Product Breakdown Structure (PBS): Hierarchical decomposition of project products
• Product Flow Diagram: Shows dependencies between products
• Product Descriptions: Detailed specifications for each product

Benefits of product-based planning:

• Clearer scope definition
• Improved quality management
• Better progress tracking
• Enhanced stakeholder communication

5. Quality is built into the project through product definitions and reviews

Quality is the vital third dimension.

Quality criteria. Each product has defined quality criteria in its Product Description. These criteria specify what the product must achieve to be acceptable, providing a clear benchmark for quality.

Quality review technique. PRINCE2 includes a formal quality review process for checking products, particularly documents. This structured approach ensures thorough examination of deliverables against defined criteria.

Quality responsibilities. Quality is everyone's responsibility in PRINCE2. The Project Board sets quality expectations, the Project Manager ensures quality processes are followed, and Team Managers implement quality controls during product development.

6. Risk management is ongoing and integral to project success

Risk management is very positive.

Proactive approach. PRINCE2 emphasizes ongoing risk management throughout the project lifecycle. This proactive stance helps identify and address potential issues before they become problems.

Risk management cycle:

1. Identify: Recognize potential risks
2. Assess: Evaluate probability and impact
3. Plan: Develop response strategies
4. Implement: Execute risk responses
5. Communicate: Keep stakeholders informed

Risk log. A central repository for tracking and managing risks. It includes risk descriptions, assessments, owners, and response plans. Regular review of the risk log ensures that risk management remains a priority.

7. Change control and configuration management maintain project integrity

PRINCE2 is actually rather good at managing quality.

Change control process. A formal process for managing requests for change ensures that all changes are properly evaluated, approved, and implemented. This helps maintain project scope and prevents unauthorized changes.

Configuration management. This process manages and tracks the project's products and their versions. It ensures that the correct versions of products are being used and that changes are properly recorded.

Baselines. Establishing baselines for key project documents and products allows for effective change control and configuration management. Baselines provide a reference point against which changes can be measured and managed.

8. Exception management allows focused control without micromanagement

Exception Management gives the Project Manager some space to get on with his job without undue interference.

Tolerances. PRINCE2 uses tolerances for time, cost, quality, scope, risk, and benefits. These tolerances define acceptable deviation from the plan before escalation is required.

Management by exception. As long as the project remains within defined tolerances, the Project Manager has the authority to manage without constant intervention from the Project Board. This approach allows for efficient decision-making and reduces unnecessary oversight.

Exception reporting. When a tolerance is forecast to be exceeded, the Project Manager must report this exception to the Project Board. This triggers a review and decision on how to proceed, ensuring that significant issues are addressed promptly.

9. Stage boundaries provide key decision points for the Project Board

The stages are the big controls in the method.

Management stages. PRINCE2 divides the project into management stages, each ending with a stage boundary. These boundaries provide natural break points for reviewing progress and making decisions about the project's future.

End Stage Assessment. At each stage boundary, the Project Board conducts an End Stage Assessment. This review examines the project's performance, current viability, and plans for the next stage.

Key decisions at stage boundaries:

• Approve plans for the next stage
• Revise project tolerances
• Confirm continued business justification
• Address any exceptions
• Potentially terminate the project if no longer viable

Last updated: November 19, 2024