Projects in an International Context Student Guide PRINCE2® is a registered trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved. The Swirl logo™ is a trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 1 of 121 Restriction on Use and Reproduction This document is confidential and contains proprietary information and intellectual property of AXELOS Limited and Masaryk University. Neither this document nor any of the information contained herein may be modified, copied, published, disclosed, distributed, displayed, exhibited, or reproduced in any manner, including but not limited to electronic or printed formats, or otherwise transferred to a third party without the prior written consent of an authorized representative of Masaryk University. This statement applies to all pages, appendices, annexes, attachments, or other materials accompanying this document. Masaryk University is the Accredited Training Organisation responsible for compiling and / or creating this course material. Referencing for materials taken from the official PRINCE2 Manual is done via the statement: Based on AXELOS PRINCE2 material. Reproduced under licence from AXELOS Limited. All Rights Reserved. Direct quotes from reference material are cited using Harvard Style in-text referencing. The following reference materials are cited from this document: 1. Axelos, 2017. Managing Successful Projects with PRINCE2®. 2017 Edition. The Stationery Office PRINCE2® is a registered trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved. The Swirl logo™ is a trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved. PeopleCert is the accreditation body responsible for approving this student Guide. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 2 of 121 Message to Students Welcome to the Masaryk University, Faculty of Social Studies, Projects in an International Context Course. This course is based on the 2017 version of PRINCE2® and is designed to teach you the fundamentals of the method. PRINCE2, Projects in a Controlled Environment 2nd version, is an industry recognised, structured, project management methodology which is recognised worldwide. It was first released in 1989 and is a product-based approach to project management, providing an easily tailored method for the management of all types of projects in all domains. Our goal is to provide the best training possible in project and programme management. To that end, our lecturers are not only faculty members of the University but are also highly respected industry professionals with extensive, international, project and programme management experience. This proficiency is an invaluable asset when it comes to explaining how the PRINCE2 method is used in some of the most challenging project environments. We thank you for choosing to take this course here at the, Faculty. We strive to deliver the best learning experience possible and trust that you will find your time with us enlightening and rewarding. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 3 of 121 Table of Contents SECTION I - DOCUMENT CONTROL SECTION .............................................................................. 4 SECTION II - COURSE DETAILS.................................................................................................... 5 1 COURSE MATERIALS ......................................................................................................................... 5 2 COURSE OBJECTIVES......................................................................................................................... 5 3 FOUNDATION CERTIFICATION EXAM.................................................................................................... 5 4 COURSE SCHEDULE........................................................................................................................... 6 5 REQUIRED READING.......................................................................................................................... 6 6 GRADING........................................................................................................................................ 7 SECTION III - PRE-COURSE READING AND INSTRUCTIONS........................................................... 8 1 INTRODUCTION TO PRINCE2............................................................................................................. 8 2 INTRODUCTION TO PRINCE2 PRINCIPLES .......................................................................................... 13 3 INTRODUCTION TO PRINCE2 THEMES .............................................................................................. 18 4 INTRODUCTION TO PRINCE2 PROCESSES........................................................................................... 19 SECTION IV - COURSE SLIDES................................................................................................... 23 SECTION V - VISUAL AIDS.......................................................................................................120 1 PRINCE2 ELEMENTS.................................................................................................................... 120 2 PRINCE2 MANAGEMENT BY STAGES.............................................................................................. 120 Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 4 of 121 Section I - Document Control Section DOCUMENT HISTORY This document is only valid at the moment it was printed. The source document is under configuration management control and can be viewed on-line through the Masaryk University Information System. Only those printed copies distributed under configuration control and documented in the Document Distribution Section below are deemed valid after printing up until recalled by the course sponsor. REFERENCES A. Axelos, 2017. Managing Successful Projects with PRINCE2®. 2017 Edition. The Stationery Office B. PeopleCert PRINCE2-2017_Edition_FOUNDATION_EN_CEW PRODUCT IDENTIFIER PR2-EN-L-MVZDG-171215-01 Revision Date Summary of Changes Version 15/11/2017 Original Version 01 DOCUMENT REVIEW Name Signature Date Version Tuck MacRae DIGITAL SIGNATURE 13/12/2017 01 DOCUMENT APPROVAL Name Signature Date Version Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 5 of 121 Section II - Course Details 1 COURSE MATERIALS The course materials consist of this student guide, and the Managing Successful Projects with PRINCE2® 2017 Edition Manual. The manual is an invaluable tool in understanding the PRINCE2 method; all of the learning materials contained in this guide are either taken from or derived from the manual. At the end of the manual, there is a comprehensive glossary. It is highly recommended that you review the glossary regularly to familiarize yourself with the PRINCE2 terminology. The manual is also a very useful resource when doing the seminar exercises contained in this guide. 2 COURSE OBJECTIVES The main objective of this course is to provide students with an understanding of the structure and key terminology of the method. This includes creating an understanding of the need for project management and how PRINCE2 meets this need. Upon completion of the course, students will be familiar with the characteristics and context of a project and the benefits of adopting PRINCE2. They will understand the purpose of the PRINCE2 roles, management products, themes, and principles, and they will be aware of what decisions the project manager is expected to make. Lastly, they will be fully versed in the purpose, objectives and context of the PRINCE2 processes and be well prepared to take the PRINCE2 Foundation Certification Examination. 3 FOUNDATION CERTIFICATION EXAM The Foundation professional qualification confirms that an individual has sufficient knowledge and understanding of the PRINCE2 method to be able to work effectively with, or as a member of, a project management team working within an environment supporting PRINCE2. It is also a prerequisite for the Practitioner qualification. To be awarded the Foundation qualification, an individual must pass the Foundation exam. The objective of the examination is to enable delegates to demonstrate an understanding of the PRINCE2 principles, processes, themes, techniques and roles. The examination paper consists of 60 questions. Each question is worth 1 mark and the passing grade is 55%. This equates to 33 correct answers out of 60 questions. It is always best to answer all the questions as marks are not subtracted for incorrect answers. It is important to note that there will only ever be one answer to each question; if you select more than one answer, no marks can be given for that question. For those who wish to attempt the external certification examination, it will be administered through the Masaryk University Project Management Centre of Excellence. This is a fee-based exam and is not, in any way, part of the course requirements. The exam is by invitation only. Invitations will be extended to any students achieving a grade of 80% or better in this course. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 6 of 121 4 COURSE SCHEDULE ****SEE THE COURSE SCHEDULE DOCUMENT IN THE IS COURSE MATERIALS SECTION FOR SPECIFIC LECTURE AND SEMINAR DATES**** 5 REQUIRED READING Textbook: Managing Successful Projects with PRINCE2® 2017 Edition Manual. Available at: https://is.muni.cz/obchod/baleni/105111 Lecture / Seminar Required Reading Prior to Class Prior to Lecture 1 Read sections I through III of the Student Guide posted in the IS. Read pages 3 to 40 of Managing Successful Projects Lecture 2 Read pages 41 to 76, plus Appendix A.1 and A.2, Managing Successful Projects Lecture 3 Read pages 77 to 92, Appendix A17, A.22, A.23, A.21, of Managing Successful Projects Lecture 4 Read pages 93 to 118, 349 to 356 of Managing Successful Projects, and A.16, A.17, A.21. Lecture 5 Read Pages 119 to 136 of Managing Successful Projects and Appendix A.24, Risk Management Approach, A.25, Risk Register Lecture 6 Read pages 137 to 146 of Managing Successful Projects and Appendices: A.6, Configuration Item Records A.3, Change Control Approach A.12, Issue Register A.13, Issue Report A.18, Product Status Account Lecture 7 Read pages 120 to 136 of Managing Successful Projects and Appendices: A.24, Risk Management Approach A.25, Risk Register Seminar 1 Read the case study in the Student Case Book. Download the book from the IS and print it prior to the first seminar. Read pages 157 to 194 of Managing Successful Projects, and Appendices: A.2, Business Case A.7, Daily Log A.14, Lessons Log A.16, Plans A.21, Project Product Description A.19, Project Brief Do exercises 1 and 2 in the exercise book and be prepared to discuss in seminar 1. Seminar 2 Memorize the composition section of Appendix A.19, Project Brief. Do exercise 3 in the exercise book and be prepared to discuss in seminar. Seminar 3 Read Pages 195 to 214 of Managing Successful Projects plus Appendices: A.20, Project Initiation Documentation A.5, Communication Management Approach Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 7 of 121 Lecture / Seminar Required Reading Prior to Class A.3, Change Control Approach A.22, Quality Management Approach A.24, Risk Management Approach A.16, Plans A.2, Business Case A.1, Benefits Management Approach Do exercise 4 in the exercise book and be prepared to discuss in seminar. Seminar 4 Memorize the composition section of each document in the PID and the PID itself. Seminar 5 Do exercise 6 in the exercise book and be prepared to discuss in seminar. Read pages 216 to 258 of Managing Successful Projects and Appendices: A.4, Checkpoint Report A.6, Configuration Item Records A.7, Daily Log A.9, End Stage Report A.10, Exception Report A.11, Highlight Report A.12, Issue Register A.13, Issue Report A.14, Lessons Log A.23, Quality Register A.25, Risk Register A.26, Work Package Seminar 07 Read pages 260 to 270 of Managing Successful Projects and Appendix A.8, End Project Report. Do exercise 8 in the exercise book and be prepared to discuss in seminar Seminar 08 Read about premature closure and review log, register and document creation exercises. Seminar 09 Review all readings and exercises. Prepare for the exam. 6 GRADING Type Description Duration (%) Graded Activity 1 Project Initiation Documentation 60 min 10 Graded Activity 2 Delivery Stage Activities 60 min 15 Graded Activity 3 Closure 60 min 15 Exam Foundation Exam 60 min 60 Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 8 of 121 Section III - Pre-course Reading and Instructions The material contained in this section has been extracted from Managing Successful Projects with PRINCE2®, 2017 Edition. Copyright © AXELOS Limited 2017. Material is reproduced here under licence from AXELOS. All rights reserved 1 INTRODUCTION TO PRINCE2 PRINCE2 (Projects in a Controlled Environment) is a structured project management method based on experience drawn from thousands of projects – and from the contributions of countless project sponsors, Project Managers, project teams, academics, trainers and consultants. This manual is designed: • For entry-level project management personnel wishing to learn about project management generally and the PRINCE2 method in particular. • For experienced Project Managers and personnel who wish to learn about the PRINCE2 method. • As a detailed reference source for PRINCE2 practitioners. • As a source of information on PRINCE2 for managers considering whether to adopt the method. The manual covers the questions frequently asked by people involved in project management and support roles. These questions include: • What is expected of me? • What does the Project Manager do? • What do I do if things don’t go to plan? • What decisions am I expected to make? • What information do I need, or must I supply? • Who should I look to for support? For direction? • How can I tailor the use of PRINCE2 for my project? 1.1 The importance of projects A key challenge for organizations in today’s world is to succeed in balancing two parallel, competing imperatives: • To maintain current business operations – profitability, service quality, customer relationships, brand loyalty, productivity, market confidence etc. What we term ‘business as usual.’ • To transform business operations in order to survive and compete in the future – looking forward and deciding how business change can be introduced to best effect for the organization. As the pace of change (technology, business, social, regulatory etc.) accelerates, and the penalties of failing to adapt to change become more evident, the focus of management attention is inevitably moving to achieve a balance between business as usual and business change. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 9 of 121 Projects are the means by which we introduce change – and, while many of the skills required are the same, there are some crucial differences between managing business as usual and managing project work. 1.2 What makes projects different? “A project is a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case.” There are a number of characteristics of project work that distinguish it from business as usual: • Change Projects are the means by which we introduce change. • Projects are temporary in nature. Once the desired change has been implemented, business as usual resumes (in its new form) and the need for the project is removed. Projects should have a defined start and a defined end. • Cross-functional Projects involve a team of people with different skills working together (on a temporary basis) to introduce a change that will impact others outside the team. Projects often cross the normal functional divisions within an organization and sometimes span entirely different organizations. This frequently causes stresses and strains both within organizations and between, for example, customers and suppliers. Each has a different perspective and motivation for getting involved in the change. • Every project is unique. An organization may undertake many similar projects, and establish a familiar, proven pattern of project activity, but each one will be unique in some way: a different team, a different customer, a different location. All these factors combine to make every project unique. • The characteristics already listed will introduce threats and opportunities over and above those we typically encounter in the course of business as usual; projects are more risky. 1.3 Why have a project management method? Project management is the planning, delegating, monitoring and control of all aspects of the project, and the motivation of those involved, to achieve the project objectives within the expected performance targets for time, cost, quality, scope, benefits and risks. It is the development of the project’s deliverables (known as products in PRINCE2) that deliver the project’s results. A new house is completed by creating drawings, foundations, floors, walls, windows, a roof, plumbing, wiring and connected services. None of this is project management – so why do we need project management at all? The purpose of project management is to keep control over the specialist work required to create the project’s products or, to continue with the house analogy, to make sure the roofing contractor does not arrive before the walls are built. Additionally, given that projects are the means by which we introduce business change, and that project work entails a higher degree of risk than other business activity, it follows that implementing a secure, consistent, well-proven approach to project management is a valuable business investment. 1.4 Introducing PRINCE2 PRINCE2 is a non-proprietary method and has emerged worldwide as one of the most widely accepted methods for managing projects. This is largely due to the fact that PRINCE2 is truly generic: it can be applied to any project regardless of project scale, type, organization, geography or culture. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 10 of 121 PRINCE2 achieves this by isolating the management aspects of project work from the specialist contributions, such as design, construction etc. Regardless of the product delivery method, waterfall or agile, the specialist aspects of any type of project are easily integrated with the PRINCE2 method and, used alongside PRINCE2, provide a secure overall framework for the project work. Because PRINCE2 is generic and based on proven principles, organizations adopting the method as a standard can substantially improve their organizational capability and maturity across multiple areas of business activity – business change, construction, IT, mergers and acquisitions, research, product development and so on. In order to achieve control over anything, there must be a plan. It is the Project Manager who plans the sequence of activities to build the house, works out how many bricklayers will be required and so on. It may be possible to build the house yourself – but being a manager implies that you will delegate some or all of the work to others. The ability to delegate is important in any form of management but particularly so (because of the cross-functionality and risks) in project management. With the delegated work under way, the aim is that it should ‘go according to plan’, but we cannot rely on this always being the case. It is the Project Manager’s responsibility to monitor how well the work in progress matches the plan. Of course, if work does not go according to plan, the Project Manager has to do something about it, for example, exert control. Even if the work is going well, the Project Manager may spot an opportunity to speed it up or reduce costs. Whether it is by taking corrective action or implementing measures to improve performance, the aim of PRINCE2 is to make the right information available at the right time for the right people to make the right decisions. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 11 of 121 There are six variables involved in any project, and therefore six aspects of project performance to be managed: • Costs: The project has to be affordable and, though we may start out with a particular budget in mind, there will be many factors which can lead to overspending and, perhaps, some opportunities to cut costs. • Timescales: Allied to this, and probably the next most-frequent question asked of a Project Manager, is: ‘When will it be finished?’ • Quality: Finishing on time and within budget is not much consolation if the result of the project does not work. In PRINCE2 terms, the project’s products must be fit for purpose. • Scope: Exactly what will the project deliver? Without knowing it, the various parties involved in a project can very often be talking at cross-purposes about this. The customer may assume that, for instance, a fitted kitchen and/or bathroom is included in the price of the house, whereas the supplier views these as ‘extras’. On large-scale projects, scope definition is much more subtle and complex. There must be agreement on the project’s scope, and the Project Manager needs to have a detailed understanding of what is and what is not within the scope. The Project Manager should take care not to deliver beyond the scope as this is a common source of delays, overspends and uncontrolled change (‘scope creep’). • Risk: All projects entail risks, but exactly how much risk are we prepared to accept? Should we build the house near the site of a disused mine, which may be prone to subsidence? If we decide to go ahead, is there something we can do about the risk? Maybe insure against it or have thorough surveys carried out? • Benefits: Perhaps most often overlooked is the question, ‘Why are we doing this?’ It is not enough to build the house successfully on time, within budget and to quality specifications if, in the end, we cannot sell or rent it at a profit or live in it happily. The Project Manager has to have a clear understanding of the purpose of the project as an investment and make sure that what the project delivers is consistent with achieving the desired return. PRINCE2 is an integrated framework of processes and themes that addresses the planning, delegation, monitoring and control of all these six aspects of project performance. The PRINCE2 method addresses project management with four integrated elements of principles, themes, processes and the project environment. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 12 of 121 The principles are the guiding obligations and good practices which determine whether the project is genuinely being managed using PRINCE2. There are seven principles, and unless all of them are applied, it is not a PRINCE2 project. The themes describe aspects of project management that must be addressed continually and in parallel throughout the project. The seven themes explain the specific treatment required by PRINCE2 for various project management disciplines, and why they are necessary. The processes describe a step-wise progression through the project lifecycle, from getting started to project closure. Each process provides checklists of recommended activities, products and related responsibilities. Tailoring PRINCE2 to the project environment addresses the need to tailor PRINCE2 to the specific context of the project. PRINCE2 is not a ‘one size fits all’ solution; it is a flexible framework that can readily be tailored to any type or size of project. It is not intended (or possible) for PRINCE2 to cover every aspect of project management. There are three broad topic categories which are deliberately considered to be outside the scope of PRINCE2: • Specialist aspects. PRINCE2’s strength is in its wide applicability – it is entirely generic. Consequently, industry-specific or type-specific activity is excluded. Engineering models, project lifecycles or specific techniques (such as organizational change management or procurement) can readily be used alongside PRINCE2. PRINCE2 categorizes all of these aspects of project work as ‘specialist’ (which means that the specialist products concerned need to be identified and included within project scope and plans). • Detailed techniques. There are many proven planning and control techniques that can be used in support of the PRINCE2 themes. Examples are critical path analysis (in planning) and earned value analysis (in progress control). Such techniques are well documented elsewhere. Only techniques that have a specific PRINCE2 approach are described, e.g. the product-based planning and quality review techniques. • Leadership capability. Leadership, motivational skills and other interpersonal skills are immensely important in project management but impossible to codify in a method. Leadership styles vary considerably, and a style that works in one situation may be entirely inappropriate in another. The fact that it is easy to think of successful leaders who have adopted very different styles – from autocratic to consensus-based – bears this out. For this reason, PRINCE2 cannot address this aspect of project management directly. There are many leadership models and interpersonal-skills training programmes that fulfil this requirement. 1.5 Benefits of PRINCE2 Before introducing the structure of the method, it is worthwhile reviewing the key benefits of adopting PRINCE2: • PRINCE2 embodies established and proven best practice and governance for project management. It can be applied to any type of project – and can easily be implemented alongside specialist, industry-specific models (‘engineering models’ or ‘development lifecycles’). • PRINCE2 is widely recognized and understood, and therefore provides a common vocabulary for all project participants – promoting effective communication. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 13 of 121 • PRINCE2 provides for the explicit recognition of project responsibilities – so that participants understand each other’s roles and needs. There is a defined structure for accountability, delegation, authority and communication. • Its product focus clarifies (for all parties) what a project will deliver, why, when, by whom and for whom. • PRINCE2 plans are carefully designed to meet the needs of the different levels in the management team, improving communication and control. • It is based on a ‘management by exception’ framework, providing for the efficient and economic use of management time (whether at corporate, programme, Project Board or project management levels). • PRINCE2 ensures that participants focus on the viability of the project in relation to its Business Case objectives – rather than simply seeing the completion of the project as an end in itself. • It defines a thorough but economical structure of reports. • It ensures that stakeholders (including sponsors and resource providers) are properly represented in planning and decision making. • Adopting PRINCE2 promotes learning and continual improvement in organizations. • PRINCE2 promotes consistency of project work and the ability to reuse project assets; it also facilitates staff mobility and reduces the impact of personnel changes/handovers. • PRINCE2 is an invaluable diagnostic tool, facilitating the assurance and assessment of project work, troubleshooting and audits. • There are scores of accredited training and consultancy organizations (ATOs and ACOs) operating worldwide, who can supply expert support for PRINCE2 projects or for organizations planning to adopt PRINCE2. 2 INTRODUCTION TO PRINCE2 PRINCIPLES The purpose of PRINCE2 is to provide a project management method that can be applied regardless of project scale, type, organization, geography or culture. This is possible because PRINCE2 is principles-based. Principles are characterized as: • Universal in that they apply to every project. • Self-validating in that they have been proven in practice over many years. • Empowering because they give practitioners of the method added confidence and ability to influence and shape how the project will be managed. The principles on which PRINCE2 is based originate from lessons learned from projects both good and bad. They provide a framework of good practice for those people involved in a project. If a project does not adhere to these principles, it is not being managed using PRINCE2, because the principles are the basis of what defines a PRINCE2 project. The seven PRINCE2 principles can be summarized as: • Continued business justification. • Learn from experience. • Defined roles and responsibilities. • Manage by stages. • Manage by exception. • Focus on products.] Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 14 of 121 • Tailor to suit the project environment. It is the adoption of these principles that characterizes whether a project is using PRINCE2; the adoption of processes and documents alone does not fully define its usage. The principles facilitate good use of PRINCE2 by ensuring that the method is not applied in an overly prescriptive way or in name only, but it is applied in a way that is sufficient to contribute to the success of the project. 2.1 Continued business justification A PRINCE2 project has continued business justification. A requirement for a PRINCE2 project is that: • There is a justifiable reason to start it. • The justification should remain valid throughout the life of the project. • The justification is documented and approved. In PRINCE2, the justification is documented in a Business Case. As a project is inextricably linked to its business justification, it drives the decision-making processes to ensure that the project remains aligned to the business objectives and benefits being sought. Organizations that lack rigour in developing Business Cases may find that some projects proceed even where there are few real benefits, or where a project has only tentative associations with corporate strategy. Poor alignment with corporate strategies can also result in organizations having a portfolio of projects that have mutually inconsistent or duplicated objectives. Even projects that are compulsory (for example, to comply with new legislation) require justification of the option chosen, as there may be several options available that yield different costs, benefits and risks. Although the justification should remain valid, it may change. It is therefore important that the project and evolving justification remain consistent. If, for whatever reason, the project can no longer be justified, the project should be stopped. Stopping a project in these circumstances is a positive contribution to an organization as its funds and resources can be reinvested in other more worthwhile projects. 2.2 Learn from experience PRINCE2 project teams learn from previous experience: lessons are sought, recorded and acted upon throughout the life of the project. Projects involve a temporary organization for a finite timescale for a specific business purpose. A common characteristic is that the project includes an element of uniqueness such that it cannot be managed by existing line management or functional units. It is this element of uniqueness that makes projects challenging as the temporary team may not have experience of a project like the one being undertaken. In PRINCE2, learning from experience permeates the method: • When starting a project: previous or similar projects should be reviewed to see if lessons learned could be applied. If the project is a ‘first’ for the people within the organization, then it is even more important to learn from others, and the project should consider seeking external experience. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 15 of 121 • As the project progresses: the project should continue to learn. Lessons should be included in all reports and reviews. The goal is to seek opportunities to implement improvements during the life of the project. • As the project closes: the project should pass on lessons. Unless lessons provoke change, they are only lessons identified (not learned). It is the responsibility of everyone involved with the project to seek lessons learned rather than waiting for someone else to provide them. 2.3 Defined roles and responsibilities A PRINCE2 project has defined and agreed roles and responsibilities within an organization structure that engages the business, user and supplier stakeholder interests. Projects involve people; no amount of good planning or control will help if the wrong people are involved, if the right people are not involved, or if people involved do not know what’s expected of them or what to expect of others. A project is typically cross-functional, may involve more than one organization, and may involve a mixture of full-time and part-time resources. The management structures of the parties involved in the project are likely to be different – with different priorities, objectives and interests to protect. The day-to-day line management structures may not be designed for, or suited to, project work. To be successful, projects must have an explicit project management team structure consisting of defined and agreed roles and responsibilities for the people involved in the project. This requires a means for effective communication between them. All projects have the following primary stakeholders: • ‘Business’ sponsors who endorse the objectives and ensure that the business investment provides value for money. • ‘Users’ who, after the project is completed, will use the products to enable them to gain the intended benefits. • ‘Suppliers’ who provide the resources and expertise required by the project (these may be internal or external). Therefore, all three stakeholder interests need to be represented effectively in the project management team – two out of three is not enough. If the project costs outweigh the benefits, the project will fail. Equally, if the outcome of the project does not meet the users’ or operational needs, or cannot feasibly be delivered by the suppliers, failure is inevitable. The defined project management team structure unites the various parties in the common aims of the project. For all those people involved, a defined project management team structure provides the answer to the question, ‘What is expected of me?’ 2.4 Manage by stages A PRINCE2 project is planned, monitored and controlled on a stage-by-stage basis. Management stages provide senior management with control points at major intervals throughout the project. At the end of each stage, the project’s status should be assessed, the Business Case and plans reviewed to ensure that the project remains viable, and a decision made as to whether to proceed. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 16 of 121 Breaking the project into a number of stages enables the extent of senior management control over projects to be varied according to the business priority, risk and complexity involved. Shorter stages offer more control, while longer stages reduce the burden on senior management. Planning can only be done to a level of detail that is manageable and foreseeable. A great deal of effort can be wasted on attempts to plan beyond a sensible planning horizon. For example, a detailed plan to show what each team member is doing for the next 12 months will almost certainly be inaccurate after just a few weeks. A detailed Team Plan for the short term, and an outline plan for the long term is a more effective approach. PRINCE2 overcomes the planning horizon issue by: • Dividing the project into a number of management stages. • Having a high-level Project Plan and a detailed Stage Plan (for the current stage). • Planning, delegating, monitoring and controlling the project on a stage-by-stage basis. PRINCE2 requires there to be a minimum of two management stages: one initiation stage and one or more further management stages. 2.5 Manage by exception A PRINCE2 project has defined tolerances for each project objective to establish limits of delegated authority. PRINCE2 enables appropriate governance by defining distinct responsibilities for directing, managing and delivering the project and clearly defining accountability at each level. Accountability is established by: • Delegating authority from one management level to the next by setting tolerances against six objectives for the respective level of the plan: ➢ Time Plus or minus an amount of time on the target completion dates. ➢ Cost Plus or minus an amount of the planned budget. ➢ Quality Plus or minus degrees off a quality target (e.g. a product that weighs a target 300 g, with an allowed -5 g to +10 g tolerance). ➢ Scope Permissible variation of the plan’s products (e.g. mandatory requirements plus or minus desirable requirements). ➢ Risk Limits on the plan’s aggregated risks (e.g. cost of aggregated threats to remain less than 10% of the plan’s budget) or limits on any individual threat (e.g. a threat to operational service). ➢ Benefit Plus or minus degrees off an improvement goal (e.g. 30–40% cost reduction). • Setting up controls so that if those tolerances are forecast to be exceeded, they are immediately referred up to the next management layer for a decision on how to proceed. • Putting an assurance mechanism in place so that each management layer can be confident that such controls are effective. This implementation of ‘management by exception’ provides for very efficient use of senior management time as it reduces senior managers’ time burden without removing their control by ensuring decisions are made at the right level in the organization. 2.6 Focus on products A PRINCE2 project focuses on the definition and delivery of products, in particular their quality requirements. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 17 of 121 A successful project is output-oriented not activity-oriented. An output-oriented project is one that agrees and defines the project’s products prior to undertaking the activities required to produce them. The set of agreed products defines the scope of a project and provides the basis for planning and control. The purpose of a project is to fulfil stakeholder expectations in accordance with the business justification, and to do this, there must be a common understanding of the products required and the quality expectations for them. The purpose of a project can be interpreted in many different ways. To secure the project’s meaning, there should be an explicit understanding of the products to be produced, and the criteria against which they will be individually approved should be specified. A PRINCE2 project uses Product Descriptions to provide such clarity by defining each product’s purpose, composition, derivation, format, quality criteria and quality method. They provide the means to determine effort estimates, resource requirements, dependencies and activity schedules. The ‘product focus’ supports almost every aspect of PRINCE2: planning, responsibilities, status reporting, quality, change control, scope, product acceptance and risk management. Without a product focus, projects are exposed to several major risks such as acceptance disputes, rework, uncontrolled change (‘scope creep’), user dissatisfaction and underestimation of acceptance activities. 2.7 Tailor to suit the project environment PRINCE2 is tailored to suit the project’s environment, size, complexity, importance, capability and risk. The value of PRINCE2 is that it is a universal project management method that can be applied regardless of project type, organization, geography or culture. It can be used by any project because the method is designed to be tailored to its specific needs. If PRINCE2 is not tailored, it is unlikely that the project management effort and approach are appropriate for the needs of the project. This can lead to ‘robotic’ project management at one extreme (the method is followed without question) or ‘heroic’ project management at the other extreme (the method is not followed at all). The purpose of tailoring is to: • Ensure the project management method relates to the project’s environment (e.g. aligning the method to the business processes that may govern and support the project, such as human resources, finance and procurement). • Ensure that project controls are based on the project’s scale, complexity, importance, capability and risk (e.g. the reporting and reviewing frequency and formality). Tailoring requires the Project Manager and the Project Board to make an active decision on how the method will be applied, for which guidance is provided. When tailoring PRINCE2, it is important to remember that it requires information (not necessarily documents) and decisions (not necessarily meetings). To ensure that all those people involved with the project understand how PRINCE2 is to be used, the Project Initiation Documentation should state how the method is being tailored for that particular project. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 18 of 121 3 INTRODUCTION TO PRINCE2 THEMES The PRINCE2 themes describe aspects of project management that must be addressed continually. Any Project Manager who gives thorough attention to these themes will fulfil the role in a professional manner. However, the strength of PRINCE2 is the way in which the seven themes are integrated, and this is achieved because of the specific PRINCE2 treatment of each theme (i.e. they are carefully designed to link together effectively). The PRINCE2 processes address the chronological flow of the project – with actions relating to different themes mixed together. Here, the logical thread that runs through each theme is highlighted, and more detailed guidance is provided in order to amplify the process activities. The following table taken from the manual lists the seven PRINCE2 themes and the relevant chapter. 3.1 Applying the themes All seven themes must be applied in a project, but they should be tailored according to the scale, nature and complexity of the project concerned. Themes can be tailored ‘up’ or ‘down’. That is to say, additional detailed documentation and process discipline can be introduced for complex or high-risk projects, whereas concise bulletpoint presentations and more informal processes may be adequate for simple, low-risk projects. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 19 of 121 4 INTRODUCTION TO PRINCE2 PROCESSES PRINCE2 is a process-based approach for project management. A process is a structured set of activities designed to accomplish a specific objective. It takes one or more defined inputs and turns them into defined outputs. There are seven processes in PRINCE2, which provide the set of activities required to direct, manage and deliver a project successfully. The figure below shows how each process is used throughout a project’s life. The Project Board sets direction and makes key decisions throughout the life of the project. The Project Board’s activities are covered by the Directing a Project process (Chapter 13), which runs from pre-project through to, and including, the final stage. 4.1 Pre-project In the beginning, someone has an idea or a need. This may result from new business objectives, responding to competitive pressures, changes in legislation, or a recommendation in a report or an audit. The trigger for the project could be almost anything. In PRINCE2, this trigger is called a project mandate. The project mandate is provided by the commissioning organization (corporate, programme management or customer) and can vary in form from a verbal instruction to a welldefined and justified project definition. Prior to the activity to fully scope the project, it is important to verify that the project is worthwhile and viable. Such activities are covered by the process Starting up a Project, which culminates in the production of a Project Brief and a Stage Plan for project initiation. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 20 of 121 The Project Board reviews the Project Brief and decides whether to initiate the project. They then state the levels of authority to be delegated to the Project Manager for the initiation stage. 4.2 Initiation stage Once there is a decision that approves the project, it needs to be planned in detail. Funding needs to be obtained, and controls should be defined to ensure that the project proceeds in accordance with the wishes of those who are paying for the process and those who are making use of the final products. The detailed planning, establishment of how the project will be managed and controls, development of a robust Business Case, and a means of managing benefits are covered by the Initiating a Project process. Also, during the initiation stage, the Managing a Stage Boundary process is used to plan the next stage in detail. The initiation stage culminates in the production of the Project Initiation Documentation, which is reviewed by the Project Board to decide whether to authorize the project. As the contents of the Project Initiation Documentation are likely to change throughout the project (under change control), this version of the Project Initiation Documentation is preserved as input for later performance reviews. 4.3 Subsequent delivery stages The Project Board delegates day-to-day control to the Project Manager on a stage-by-stage basis. The Project Manager needs to assign work to be done, ensure that the outputs of such work (products) meet relevant specifications, and gain suitable approval where appropriate. The Project Manager also needs to ensure that progress is in line with the approved plan and that the forecasts for the project’s performance targets are within agreed tolerances. The Project Manager ensures that a set of project records (Daily Log, Lessons Log, Issue Register, Risk Register, Quality Register and Configuration Item Records) are maintained to assist with progress control. The Project Manager informs the Project Board of progress through regular Highlight Reports. The activities to control each stage are covered by the Controlling a Stage process. In the Managing Product Delivery process, the Team Manager(s) or team members execute assigned Work Packages (that will deliver one or more products) and keep the Project Manager appraised of progress via Checkpoint Reports. Towards the end of each management stage, the Project Manager requests permission to proceed to the next stage by reporting how the stage performed, providing an update to the Business Case and planning the next management stage in detail. The Project Manager provides the information needed by the Project Board in order for it to assess the continuing viability of the project and to make a decision to authorize the next management stage. The activities to manage each stage boundary are covered in the Managing a Stage Boundary process. 4.4 Final delivery stage As a project is a temporary undertaking, during the final stage (once the Project Manager has gained approval for all of the project’s products) it is time to decommission the project. The Project Board needs to be satisfied that the recipients of the project’s products are in a position to own and use them on an ongoing basis. Should this be the case, the products can be transitioned into operational use and the project can close. The project documentation should be tidied up and archived; it should be assessed for performance against its original plan, and the resources assigned to the project need to be released. The closure activities include planning post-project benefits management to take place for those benefits that can only be assessed after the products Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 21 of 121 have been in use (and therefore after the project has closed). The activities to decommission a project are covered by the Closing a Project process. The PRINCE2 process model is shown on the next page. The processes are aligned to the management levels of corporate or programme, directing, managing and delivering. The triggers between each process are shown. Projects in an International Context & PRINCE2® Student Guide PR2-EN-L-MVZDG-171215-01 Page 22 of 121 . PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 23 of 121 Section IV - Course Slides PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 24 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 25 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 26 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 27 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 28 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 29 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 30 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 31 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 32 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 33 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 34 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 35 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 36 of 121 PRINCE2® Practitioner 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PR2-EN-L-MVZDG-171215-01 Page 110 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 111 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 112 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 113 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 114 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 115 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 116 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 117 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 118 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 119 of 121 PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 120 of 121 Section V - Visual Aids 1 PRINCE2 ELEMENTS Based on AXELOS PRINCE2® material. Reproduced under licence from AXELOS Limited. All rights reserved. 2 PRINCE2 MANAGEMENT BY STAGES PRINCE2® Practitioner Level PR2-EN-L-MVZDG-171215-01 Page 121 of 121 Based on AXELOS PRINCE2® material. Reproduced under licence from AXELOS Limited. All rights reserved. PRINCE2® is a registered trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved. The Swirl logo™ is a trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.