PRINCE2 2009 - Directing Projects with PRINCE2 part 3
of the Cabinet Office under delegated authority from the Controller of HMSO.
Overview of PRINCE2
Structure of PRINCE2
The PRINCE2® method addresses project management with four integrated elements of principles, themes, processes and the project environment (diagram 1):
© Crown copyright 2005 Reproduced under licence from OGC
Diagram 1
- The principles are essential and must be followed for PRINCE2 to be truly implemented
- The themes address key aspects of project management that must be addressed throughout a project - they apply continually and in parallel
- The processes describe a step-wise summary progression through the project lifecycle - outlining the detailed activities for directing and managing the project successfully (with references to explanatory guidance in the themes)
- The fourth element is the project environment. This recognizes that PRINCE2 must be tailored to the context of the particular organization and project concerned, taking into account factors such as project size, complexity, type, geography, culture etc.
The seven PRINCE2 principles are the guiding obligations for good practice that a project should follow if it is using PRINCE2.
These are derived from lessons, both good and bad, that have affected project success.
If a project does not follow these principles, then it is not using PRINCE2.
- A PRINCE2 project has continued business justification
- PRINCE2 project teams learn from previous experience (lessons are sought, recorded and acted upon throughout the life of the project)
- A PRINCE2 project has defined and agreed roles and responsibilities with an organization structure that engages the business, user and supplier stakeholder interests
- A PRINCE2 project is planned, monitored and controlled on a stage-by-stage basis (management by stages)
- A PRINCE2 project has defined tolerances for each project objective to establish limits of delegated authority (management by exception)
- A PRINCE2 project focuses on the definition and delivery of products, in particular their scope and quality requirements PRINCE2 is tailored to suit the project’s environment, size, complexity, importance, capability and risk.
The PRINCE2 themes are those aspects of project management that:
- Need to be addressed continually. They are not one-off activities. For example, Risk Management [see ‘The Complete Risk Management package’] should be central to every decision: it is not a case of updating a register from time to time
- Require specific treatment for the PRINCE2 processes to be integrated effectively. For example, the processes require a division of responsibilities between those people who direct (the Project Board), those who manage (the Project Manager) and those who deliver (the project team) as defined in the Organization theme.
The themes provide guidance on how the process activities should be performed (and explain why).
For example, numerous processes in PRINCE2 involve creating or approving plans: explanatory guidance can be found in the Plans theme.
There are seven PRINCE2 themes, as outlined below.
| Theme: | Business Case |
| Description: | The project starts with an idea which is 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. |
| Answers: | Why? |
| Theme: | Organization |
| Description: | The organization sponsoring 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 so the normal line function structures are not suitable. This theme describes the roles and responsibilities in the temporary PRINCE2 project management team required to manage the project effectively. |
| Answers: | Who? |
| Theme: | Quality |
| Description: | The initial idea will only be understood as a broad outline. This theme explains how the outline is developed so that all participants understand the quality attributes of the products to be delivered - and then how project management will ensure that these requirements are subsequently delivered. |
| Answers: | What? |
| Theme: | Plans |
| Description: | PRINCE2 projects proceed on the basis of a series of approved plans. This theme complements the Quality theme by describing the steps required to develop plans and the PRINCE2 techniques that should be applied. In PRINCE2 the plans are matched to the needs of the personnel at the various levels of the organization. They are the focus for communication and control throughout the project. |
| Answers: | How? How much? When? |
| Theme: | Risk |
| Description: | Projects typically entail more risk than stable operational activity. This theme addresses how project management manages the uncertainties in plans and in the wider project environment. |
| Answers: | What if? |
| Theme: | Change |
| Description: | This theme describes how project management assesses and acts upon issues which have a potential impact on any of the baseline aspects of the project (its plans and completed products). Issues may be unanticipated general problems, requests for change or instances of quality failure. |
| Answers: | What’s the impact? |
| Theme: | Progress |
| Description: | This theme addresses the ongoing viability of the plans. The theme explains the decision-making process for approving plans, the monitoring of actual performance and the escalation process if events do not go according to plan. Ultimately, the Progress theme determines whether and how the project should proceed. |
| Answers: | Where are we now? Where are we going? Should we carry on? |
In summary, the set of PRINCE2 themes describe:
- How baselines are established (in the Business Case and Plans themes). The baselines cover all six project performance targets - benefits, risks, scope, quality, cost and time – and act as key reference points for subsequent monitoring and control
- How the project management team monitors and controls the work as the project progresses (in the Progress, Quality, Change and Risk themes)
The Organization theme underpins the other themes with a secure structure of roles, clarifying accountability and offering clear paths for delegation and escalation.
ProcessesPRINCE2 provides a process model for managing a project.
The processes can easily be scaled and tailored to suit the requirements of all types of project.
They consist of a set of activities that are required to direct, manage and deliver a project.
The PRINCE2 process model addresses project activity at four levels of management:
Corporate or programme management
While not part of the project management team, this higher management level is an important influence as it sets the business context for projects.
The Project Board
This is the most senior level within the project management team.
The Project Board represents three key interests: those of the sponsoring business, the users and the suppliers.
The Project Board is accountable for the success of the project within the boundaries set by corporate or programme management.
This manual is designed to act as a reference manual for Project Board members.
The Project Manager
Acts as the single focus for the day-to-day management of the project.
The Project Manager has authority to run the project within constraints approved by the Project Board.
The Team Manager
At the lowest management level in a PRINCE2 project, the Team Manager’s prime responsibility is to supervise the creation of the products allocated to the team by the Project Manager.
Note that in simple projects the Project Manager and Team Manager roles are often performed by the same person.
The processes are illustrated in diagram 2 and summarized below.
© Crown copyright 2005 Reproduced under licence from OGC
Diagram 2
Starting up a Project*
This process covers the pre-project activities required to commission the project and to get commitment from corporate or programme management to invest in project initiation by answering the question ‘Do we have a viable and worthwhile project?’ Project Board members are appointed at this time and detailed guidance is provided in the section covering ‘Starting up a Project’.
Directing a Project
This process describes the Project Board’s activities in exercising overall project control.
The activities focus on the decision making necessary for Project Board members to fulfil their accountabilities successfully while delegating the day-to-day management of the project to the Project Manager.
The activities in the Directing a Project process are described in detail in the following sections:
- Authorize initiation
- Authorize the project
- Authorize a Stage or Exception Plan
- Give ad hoc direction
- Authorize project closure
Initiating a Project*
This process describes the activities the Project Manager must lead in order to establish the project on a sound foundation.
Every PRINCE2 project has an initiation stage.
The key deliverable from this stage is the Project Initiation Documentation which includes an overall Project Plan and defines baselines for the six project performance targets of time [see 'The Complete Time Management package'], cost, quality, scope, risk and benefits.
The Project Initiation Documentation represents an authoritative statement of what the project will deliver, how this will be achieved, and by whom.
Managing a Stage Boundary*
PRINCE2 projects are managed in stages.
This process describes the activities the Project Manager must undertake to provide the Project Board with sufficient information to enable it to review the success of the current stage, approve the next Stage Plan, review the updated Project Plan and confirm continued business justification and acceptability of the risks.
Therefore, the process should be executed at, or close to, the end of each management stage.
Controlling a Stage*
This process describes how the Project Manager manages the project execution/delivery activity during a stage and reports progress and exceptions to the Project Board.
Managing Product Delivery*
This process addresses the Team Manager’s role in supervising the detailed work of creating the specialist products and provides the link between the Project Manager and the teams undertaking the project work.
Closing a Project*
This process describes the closure activity towards the end of the final stage of the project.
The Project Manager leads the process which provides for an orderly de-commissioning, including any remaining project acceptance and handover requirements.
*Note:These processes are explained within this training information to the extent that they impact the Project Board’s decision-making activities.
They are covered in detail in the companion guide, Managing Successful Projects with PRINCE2 (2009).
PRINCE2 can be used on projects irrespective of project scale, complexity, geography, culture etc.
PRINCE2 can also be used whether the project is part of a programme or is being managed as a stand-alone initiative.
This reflects the principle that PRINCE2 must be tailored to suit the particular project context.
Tailoring refers to the measures taken to apply the method properly to an individual project, ensuring that the amount of governance, Planning and control is appropriate - neither too burdensome for a simple project nor too informal for a large or complex project.
Further guidance is provided in the section covering ‘Tailoring PRINCE2’.
The adoption of PRINCE2 across an organization is known as embedding.
Below sets out the differences between tailoring and embedding.
Embedding: (done by the organization to adopt PRINCE2)
Focus on:
- Process responsibilities
- Scaling rules/guidance (e.g. score card)
- Standards (templates, definitions)
- Training and development
- Integration with business processes
- Tools
- Process assurance.
Guidance in PRINCE2 Maturity Model (P2MM)
Tailoring: (done by the project management team to adapt the method to the context of a specific project)
Focus on:
- Adapting the themes (through the strategies and controls)
- Incorporating specific terms/language
- Revising the Product Descriptions for the management products
- Revising the role descriptions for the PRINCE2 project roles
- Adjusting the processes to match the above.
Guidance in Chapter 11 and in Managing Successful Projects with PRINCE2 (2009).
All references above are in Directing Successful Projects with PRINCE2 unless stated otherwise.
PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.
References to the 'manual' refer to the official publication by OGC. Everything in the manual is included in the product package.
Managing Successful Projects with PRINCE2 - 2005 edition
Managing successful Projects with PRINCE2 – 2009 edition
Directing Projects with PRINCE2.
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The Complete Project Management package.
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