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PRINCE2 2009 - Tailoring PRINCE2 part 37

Tailoring PRINCE2 to the project environment

Project type

The evolving project

Research funded by the Engineering and Physical Sciences Research Council under the title Rethinking Project Management (Winter and Smith, 2006) identified that today’s projects tend not to start with a predefined specification, but have specifications that evolve as the project progresses.

Furthermore the specifications are often contestable and open to negotiation throughout the project’s life.
The implication is that because the specification is driven by the Business Case, a project may not start with a predefined Business Case.

PRINCE2® handles the evolving paradigm as the Business Case represents a ‘best and agreed forecast’ at a particular point in a project’s lifecycle, which will evolve as the project moves from discovery to implementation.

The outline Business Case developed pre-project (during the Starting up a Project process) is likely to have a wide-range forecast of desired outcomes (e.g. a 30% to 50% reduction in costs), whereas the detailed Business Case updated mid-project is likely to have a much narrower forecast (e.g. a 35% to 40% reduction in costs).
Furthermore, as the project progresses, the set of products required to provide the desired outcomes are also likely to evolve.

The value of the evolving Business Case is that it enables the organization to make an investment commitment that is commensurate with the expected benefits and risks forecast at that time in the project’s evolution.
The Business Case also provides the basis for the control and impact assessment of requested changes as a result of the ‘contestable and open to negotiation throughout the project’s life’ aspects of modern projects.

Projects involving research and development, the development of a new policy or the undertaking of a feasibility study are typical of the evolving project paradigm.

They require specific consideration as they may not yield any direct benefits (only options) and are likely to generate a negative return on investment.
It is possible to value options, which means it is possible to compare the value of one research and development project with another, if prioritization is required.

PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.

This product contains EVERYTHING in the publications:

Managing Successful Projects with PRINCE2 - 2005 edition
Managing successful Projects with PRINCE2 – 2009 edition
Directing Projects with PRINCE2.
plus:
The Complete Project Management package.

And much more besides - at a fantastic price.