PRINCE2 Project Management Responsibilities

The PRINCE2 Project Manager will follow the PRINCE2 methodology very closely in order to ensure that the project remains truly PRINCE2, but also to give the project the best possible chance at being successful. From the very start of the project right up to the project’s closure, the Project Manager will have many duties to perform and delegate to keep the project on it’s intended path.

Below we will have a look at the different duties that a PRINCE2 Project Manager will perform during the lifecycle of a PRINCE2 project. Using the Project Manager tools gained while earning their Project Management qualification, the Project Manager will guide the project in the desired direction.

Preparing baseline management products

Here the PRINCE2 Project Manager will define certain aspects of the project such as the documentation listed below:

Project initiation documentation – This document will include the project’s goals, scope, risks, constraints, assumptions, project organisation, project control, reporting frameworks, stakeholders and planning.

The Project Brief – This will provide a balanced and firm foundation for the initiation of the project. The Project Brief will include the Project Product Description, the project definition, the Business Case, the project’s tolerances, quality expectations and acceptance criteria.

Benefits Review Plan – This will outline the benefits that will be measured, accountability for the expected benefits, how measurement will be done, when they will be measured, the resources needed to measure benefits, baseline measurements and how performance of the products will be reviewed.

Stage Plan – This will detail the plans set in place for a certain stage of the project.

Exception Plans – These will replace other plans when an exception occurs.

Work Packages – This will include the team or person in charge of the work package, product descriptions, techniques and processes to be utilised, the quality check method, constraints and problem reporting procedures.

Create and maintain reports and records

The following reports and records need to be prepared and updated by the PRINCE2 Project Manager:

Highlight Report – this will show the progress of the project and will allow for the monitoring of stage progress.

Issue Report – outlines any issues that may occur such as a request for change or specification deviations.

End Stage Report – details the overall progress and status of the project.

Lessons Report – contains information on the lessons learned during the projects and is used to improve future projects.

Exception Report – this will be created whenever a stage or project plan is forecast to exceed the agreed upon tolerances.

Issue Register – this report is created whenever an issue arises during a PRINCE2 project.

Risk Register – this will document all risks that are identified and will include the probability of a risk arising, it’s impact etc.

Daily Log – this is used to document informal issues that can be handled by the PRINCE2 Project Manager.

End Project Report – created at the end of the project and presented to the project board detailing how the project performed against initial forecasts.

Information flow

The PRINCE2 Project Manager needs to ensure that all relevant information is made available to the relevant project members as it is needed. One of the leading causes of project failure is miscommunication which can be easily avoided by ensuing the right information is conveyed at the right time.

There are other platforms that can help the Project Manager keep the lines of communication open, such as e-mailing, project management applications with a synchronisation function and, in some cases, even social media platforms such as LinkedIn.

Authorising work packages

When specialist work needs to be carried out during a PRINCE2 project, it is essential that the work only begins once it has been authorised. The PRINCE2 Project Manager will make use of work packages to schedule the start of such work.

During the creation of work packages, the stage plan needs to be consulted in order to identify the products that are to be created as well as the cost of the work to be done and any tolerances that need to be adhered to.

Working with the project team

The Project Manager will need to liaise closely with the project team throughout the duration of the project. He will need to direct and manage them in order to ensure that the applicable work is done when it is required.

Working on a project can often be daunting and tiresome for project team members, especially if the project will take a long time to complete. This is where the PRINCE2 Project Manager needs to keep the team motivated and focussed on the end goal, outlining the benefits that are to be attained.

Resource management

The resources that are available to undertake and finish a project are invaluable and need to be managed very carefully. The applicable resources need to be made available to the right departments at the right time in order for work to continue uninterrupted.

The cost involved in attaining resources also needs to be managed properly as it could have a large impact on the success of the project. If too many resources are procured, it will lead to waste at the end of the project, where the Project Manager will look to either use them on another, or a future project.

Acting as liaison

As the project follows it’s lifecycle, the Project Manager will need to liaise with corporate management to ensure that there isn’t any work that has been overlooked and neds to be added to the existing work being done. They will also keep each other informed of any products being produced on related projects to ensure that they aren’t duplicated.

PRINCE2 Project Managers will also liaise with external suppliers and Account Managers to ensure the relevant resources are available when needed to be distributed to the relevant departments and that the funds needed to procure those resources are available in time.

The work of a PRINCE2 Project Manager takes many forms and we have listed but a few here. Other duties could arise according to the needs of each individual project, or due to departmental shortages or changes. A good PRONCE2 Project Manager, however, can take up many roles and delegate tasks according to whichever situation may arise.

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5 Suggestions for an OpEX Practitioner in a Digital World

The Lean Six Sigma (LSS) Green Belt and Black Belt curriculum needs an overhaul. The original operational excellence (OpEx) Lean Six Sigma methodology developed by Motorola in the 1980s and made famous by Jack Welch at General Electric (GE) in the early 1990s is finding itself a bit long in the tooth in comparison to the digital transformation activity going on around it. Practitioners of Lean Six Sigma who learned their craft more than 10 years ago need on-the-job training or CE (continuing education) classes to remain valuable to their client companies. The digital transformation has overtaken this quaint methodology, and unless continuous improvement teams embrace the new paradigm, their ability to affect the world will get smaller and smaller.

To be fair, the Six Sigma methodology (DMAIC [Define, Measure, Analyze, Improve, Control] or DFSS [Design for Six Sigma]) was an amalgamation of the best statistical minds at that time. Designed to solve process problems that resulted in defects, or to stimulate product design aligned with customer desires, it offered a linear approach to fact-based decision-making with an eye to customer needs. It took the arrogance out of process improvement and drove intellectual curiosity, which eludes more managers today than you might think. In the 80s and 90s, technology was a distant star. However, while technology grew up around it, LSS engineers huddled in their corners, not realizing the importance of evolving to the new concept of predictive statistics, machine-based learning, neural networks, artificial intelligences and the management of the data as an asset in the sciences.

And this is where the change needs to happen. Even the classic Green Belt-certified practitioner should be able to parse out the difference between waterfall and Agile methodology for software build, and that should be taught in the “I – Implementation” chapter. Lean Software Development was written by Mary and Tom Poppendiecks in 2003, but few have embraced it as part of the OpEx body of knowledge.

In a digital world nothing, and I mean nothing, is ever built without a technology component. And yet, all the explorative knowledge uncovered in the D, M and A phases should be driving towards the completing of the standard technical documents (BRD, FRB and technical specs). A good Green Belt can be an excellent IT business analyst, with their ability to articulate design and root cause, and yet, very few trainers and students make this connection. It’s as if OpEx, IT and the digital world are separate planets around the same strategic sun. I proclaim they are linked, and here are my first 5 recommendation where OpEx, LSS and continuous improvement practitioners need to make the biggest changes in their body of knowledge.

1. Data as an Asset

Let’s recognize that anything digital means data as an asset. A “digital” company is data-driven and data-democratic. Therefore, we should teach the 5S’s (sort, simplify, shine, standardize, sustain) in terms of data governance or a data quality function. As if it was a factory floor, dirty data is a business showstopper, so let’s give a quick nod to the 5S’s for good data quality. These are the fundamental tenets of managing data in the digital age. True, you don’t take out a brush to shine the data, but if your OpEx practitioner is not providing solutions or disciplines for good data quality or good data governance, fire them.

2. Customer Behavior Analytics

Replace the analytical hierarchy protocol (AHP) chapter with a discussion on web clicks and neural networks. I am not saying this has to be in the Green Belt class, AHP was included in my Black Belt class, but please, there is so much more “behind the black mirror” analysis of what the customer wants, and coupled with predictive analytics, you don’t have to ask the customer anymore. An OpEx practitioner can add some neuroscience-based suggestions to new product/new service development.

3. Retire CTQ

Remove the voice of the customer (VOC) critical to quality (CTQ) tool completely. In fact, this part of the DMAIC/DFSS curriculum needs a complete re-write. With machine learning based on customer data, the traditional interview and focus group should be dying like the dinosaurs. We don’t have to ask the customer if our organizations are transforming to a digital world; we already know. If our company is not yet using customer predictive modeling, a good OpEx practitioner should be driving them there. A company that has embraced a digital transformation can predict customer behavior, even the irrational customers, and continue to track customer “voice” as it changes over time. These days, the CTQ tree is theoretical at most, obsolete at best.

4. Data Visualization as a Self-Service Tool

Data visualization is a key component of transformation to digital, but how many OpEx practitioners know how to navigate the big 4 offerings in data visualization technology – Tableau, Datameer, MicroStrategy and IBM Cognos Analytics? If an OpEx or a LSS practitioner is leaving the visualization to the data scientists/management information services team, the boat is sailing and we are not on it. Digitally transformed companies have ventured far away from control charts, pareto charts and box plots. The training emphasis is no longer the creation of the charts, but the insights that follow. The message is different, the solutions are different. OpEx practitioners need to gain exposure to the better tools and learn to self-serve.

5. Remote Communication, Collaboration and Project Management

Hard-goods manufacturing and pharmaceuticals may need shop floor or process improvement for efficiency, but the growth industries are financials services, tech and hospitality. A well-rounded OpEx practitioner should be able to apply the same tools in each. LSS barely addresses the underlying needs in those companies, although they are leaders in digital transformation. OpEx practitioners are also light on project management and project leadership. In the 1980s, there was no software for scheduling, coordination or collaboration. Newly minted Green Belts or Black Belts should be introduced to Jira, Slack, Noodle or at minimum, SharePoint or some other document repository/collaboration platform. In digitally transformed companies, data democratization and virtual teams form the new organizational and work effort design. It’s more hub and spoke than production line. OpEx practitioners may need to change their coaching and management style for this change.

Each of these recommendations must be considered if LSS is going to survive the transformation to digital. The Green Belt/Black Belt curriculum should not lean on obsolete spreadsheets, but offer the penology of software options that each practitioner could find in their organization. All OpEx practitioners can be brand agnostic, but digital companies will demand that we understand the new functionality now available to data engineers and data scientists. Without embracing our own digital transformation, OpEx practitioners will cease to be a strategic partner to leadership.

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Should I study PRINCE2 or CAPM?

It is a commonly asked question among those that have little to no experience who are only just beginning their project management career: Should I study PRINCE2 or CAPM? Both the PRINCE2 Foundation and CAPM certifications are aimed at helping you start your career, laying a solid base of fundamental skills and knowledge from where to build a career. All of these factors mean that it can be a tough and often confusing decision to have to make.

What about experience?

The reason that PRINCE2 and CAPM are mentioned together in this regard is that neither of the certifications require the student to have previous project management experience to undertake the training. The Practitioner level of PRINCE2 does, of course, require you to pass the Foundation level exam first, but there are no prerequisites to writing the PRINCE2 Foundation Exam.

CAPM also requires you to demonstrate 23 hours of training before sitting the exam, but this will obviously only help you to understand the material that the exam relates to and will ensure that you are fully prepared when you do sit the exam.

Choose your training path

After gaining the PRINCE2 Foundation certification, you will be eligible to carry on to the Practitioner level. When done through classroom training, it is possible to gain both the Foundation and Practitioner certifications through a five-day course with the Foundation course and exam covered in the first three days and the Practitioner level covered over the following two days, If you are studying PRINCE2 online, however, there is an extended timeframe (typically 6-12 months) in which you will be able to complete the course before sitting the exam.

Many aspiring Project Managers choose to bypass the CAPM certification when looking to gain PMI credentials and study PMP straight away (CAPM and PMP are both awarded by PMI) however, the experience needed to gain the PMP certification can be daunting. Hence, those looking to gain a certification that will help them gain the necessary experience that will allow them to undertake the PMP exam choose to study CAPM first.

A common language

One of the more confusing aspects of project management is that different organisations use different methods, such as PMP and PRINCE2. This means that the standards and terminology differ from organisation to organisation and from certification to certification. That makes it harder to follow a PRINCE2 certification up with CAPM and vice versa, since the language and methods differ.

Thus, it is a much better idea to choose a project management method and follow through with your studies before adding a different certification to it. You will have a strong understanding of the processes and language used in the method that you have mastered, ensuring that the new information does not get muddled up with what you have already learned.

The UK market

PRINCE2 is without a doubt the leading project management method in the UK as it was developed to be used by the UK government to aid with their IT projects and has since spread to every sector of business throughout the world. It is considered to be the method that all other project management methods are measured against as far as quality of training and project success is concerned.

CAPM has far less of a following in the UK, but is growing steadily as more organisations become aware of the method and are endeavouring to take on bigger and more complicated projects. As it grows, CAPM Project Managers will become more in demand, but it would seem that, for the time being, PRINCE2 remains the preferred certification by employers and Project Mangers alike.

A matter of geography

A prevailing question to consider is where you will be working as a Project Manager. Whilst PRINCE2 is wildly popular throughout the UK and practiced in over 50 countries worldwide, it is not as popular in others. It would certainly be the method of choice for those starting a project management career in one of these countries.

However, in the United States PRINCE2 has a far smaller following and is not as well known (as with CAPM in the UK). US-based Project Managers are almost always required to hold a PMP certification before being considered for a position as the hours of experience and educational prerequisites are considered to be a means of ensuring that only quality and fully trained Project Managers will undertake an organisation’s projects.

Consider your career progression

Choosing either PRINCE2 or CAPM to start your career does obviously not mean that when you have finished your studies you will be expected to apply only the one method. Quite the contrary is in fact true. Adding multiple certifications to your CV will only increase your career prospects and, ultimately, can only effect your career progression in a positive way.

Base your decision on the sector that you will be working in. A little research will quickly teach you which certifications are preferred in which fields. Browse through job boards and have a look at which companies list PRINCE2 as a prerequisite and do the same for CAPM. This will narrow your decision down considerably and could make the decision just a little easier.

If, in the end, you decide to pursue a PRINCE2 certification, study the PRINCE2 Foundation course, write the exam and then follow through with the PRINCE2 Practitioner course and exam. This will not only show that you have gained a higher level of competency, but demonstrates dedication towards the project management profession.

Likewise, if you decide to study CAPM, use it as a stepping stone in order to build up your experience and project management hours to eventually gain a PMP certification. He higher you are able to travel on the project management certification ladder, the better.

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Comparing PRINCE2 and PMP

The battle between project management methods will never end as each project manager and project management professional has their own personal preference and reasons for their choice of methodology. However, it must be said that it is entirely possible for different project management methods to be used in conjunction with each other to enable the practitioner to implement the parts of each that suit the project at hand. This must be done with care so as to not negatively affect the integrity of each method.

For those who are looking to adopt a specific method, it is important to weigh up the differences between them and make an informed decision. Here we will be comparing PRINCE2 and PMP in order to offer information that can assist you in taking the next step towards a successful and rewarding career in project management.

PRINCE2 Certification

PRINCE2 stands for PRojects IN Controlled Environments and it is a process-driven project management method which provides a framework for delivering successful projects. With clearly defined principles, themes and processes and an approach which breaks the project down into stages, PRINCE2 ensures that each project is handled in a manner which promotes the delivery of products that meet the requirements and expectations of the Customer.

If you are looking to become a PRINCE2 project manager, it is recommended that you undergo an approved PRINCE2 project management training course in order to full prepare for each of the PRINCE2 certification exams.

There are two levels of PRINCE2 project management training:

PRINCE2 Foundation – The first level of PRINCE2 project management training will provide you with an understanding of the terminology as well as the 7 Principles, 7 Themes and 7 Processes of the PRINCE2 method.

PRINCE2 Practitioner – This second level of PRINCE2 project management training will delve deeper into what was learned during the PRINCE2 Foundation course and focus on the ability to practically apply the PRINCE2 method in real life project scenarios.

In order to gain the certifications associated with each of these PRINCE2 project management training levels you will need to pass the relevant certification exams. Passing the PRINCE2 Foundation exam is a prerequisite for writing the PRINCE2 Practitioner exam so it is important to ensure that you complete this step first.

The PRINCE2 Foundation exam consists of 75 multiple choice questions and you will be given one hour in which to complete the exam. This is a closed-book exam and a score of 50% is required in order to pass.

When it comes to the PRINCE2 Practitioner exam, you can expect around 9 scenario-based objective testing questions where you will be given a situation and asked how to handle it using the practical application of the PRINCE2 project management method. This is an open-book exam where only the official PRINCE2 manual will be allowed and the exam generally lasts 150 minutes. The pass mark for the PRINCE2 Practitioner exam is 55% and once you have passed both the PRINCE2 Foundation and PRINCE2 Practitioner exam, you will gain Registered PRINCE2 Practitioner status.

The PRINCE2 Foundation certification does not expire and there is no need to renew or recertify this qualification. The PRINCE2 Practitioner qualification, however, needs to be renewed every 3-5 years and this is done by simply taking a shorter recertification exam.

Project Management Professional (PMP) Certification

PMP, which stands for Project Management Professional, is a technique-based framework which enables you to work with any project management methodology and within any industry. PMBOK (Project Management Body Of Knowledge) is a guide to an evolving set of project management principles and these can improve the success rate of any type of project. The PMP qualification is based on the principles of PMBOK which is what makes it a popular choice.

There is only one level of training for the PMP (Project Management Professional) certification and only one certification exam that must be passed. However, there are other formal requirements which must be met in order to gain this qualification.

• A secondary degree (e.g. high school diploma)
• 35 hours of formal project management training
• 7500 hours of paid, full-time work directing/leading projects

OR

• A four year degree
• 35 hours of formal project management training
• 4500 hours of paid, full-time work directing/leading projects

It is only after you have fulfilled these prerequisites, and provided the necessary documentation as proof, that you will be approved to write the PMP certification exam.

The exam for the Project Management Professional (PMP) qualification is closed-book and you will need to rely solely on your project management knowledge and the experience that you have gained as a project manager. The exam comprises of 200 multiple choice questions and the duration of the exam is 4 hours. The exact pass mark is not public knowledge in an effort to ensure that maximum effort is given during the exam, but it is said to be around 64%. After passing the PMP exam, you will have achieved your official Project Management Professional certification.

In order to maintain your PMP certification, you will need to earn a minimum of 60 PDUs within each three year period from the date that you passed your certification exam. PDUs are Professional Development Units and there are a few options available in which to earn these. One PDU can be gained from each hour of additional project management training that you study, can be claimed from the PMI website and can also be earned by volunteering your skills as a project manager. If you fail to gain the required number of PDUs within the required time period, your PMP certification will expire and your certification will be considered “suspended”. You will then be given a one year suspension period in which to rectify the situation or you will be require to take the certification exam again in order to regain your PMP qualification.

How Will I Benefit?

Regardless of which project management method you choose to adopt, becoming a certified Project Manager will benefit your career. As a Project Manager you will be responsible for the success or failure of any project that you are working on and this is a lot of pressure. Knowing that you are qualified and have a proven method to support you along the way is not only reassuring, but also provides you with a greater chance for success. This said, there are some specific benefits that are generally considered to be attributed to each particular project management method that we have discussed here:

Benefits of being a PRINCE2 Project Manager

• Well structured methodology
• Improved earning potential
• Increased employability
• Comprehensive method
• Standard approach used throughout
• Focuses on the Business Case
• Internationally recognised

Benefits of being a PMP Project Manager

• Higher salary potential
• Value to your employer
• Project efficiency
• Networking opportunities
• Standardised skills
• Internationally recognised

If you are still struggling to make a decision as to which type of Project Manager you are interested in becoming, then perhaps you should consider ensuring that you are the most well-rounded Project Manager that you can be by gaining certifications in more than one method. This will enhance your career and enable you to be flexible in the world of project management.

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The 6 Most Effective Project Management Methodologies

There are many project management methodologies to choose from when deciding on which certification will best suit your career as a Project Manager. Each methodology has it’s supporters and, of course, it’s detractors but the key lies in finding the methodology that best works for you and the style of project management that your organisation will benefit from the most.

It is always best to do your homework before committing to one methodology by weighing up the positives and negatives of each. While one might focus on key areas that are important to your organisation, another may involve more thorough planning, which is also a vital aspect of project management. Here we will outline 5 project management methodologies that have been proven to be effective and enjoy popularity amongst Project Managers to this day.

1. Critical Chain Methodology

The critical chain methodology lays it’s aim very strongly on ensuring that the resources needed to complete the project are available and, should any resource issues arise, ensuring that they are quickly and efficiently.

Each of these projects has a set of vital elements that are called a critical chain (sometimes referred to as the critical path) which determines the project’s timeline. Resources are then made available to the critical chain whilst ensuring that there are enough additional resources available to be assigned to other tasks, enabling the work on each task to be done at the same time. The Project Manager will then reassign resources as and when they are needed. This methodology will perfectly suit project teams that contain members with multiple skills.

2. Agile

During an Agile project, there is a strong focus on change management – preparing for and adapting to change when, for example, there is a change in assignment in the project team.

Feedback is also considered to be a very important component, whether it be communication between teams that are involved in the project, feedback from the client or between the project manager and management. This means that everyone has a firm understanding of the production process and the direction that it is heading in.

3. Waterfall Project Management

This is considered to be the traditional method of project management. During a waterfall project, everything is done in a planned and predetermined sequence. The project is first conceptualised and planned after which development starts with quality assurance implemented.

Once the project has reached it’s conclusion, maintenance is carried out. The requirements of the project are set out in the very early stages of planning and are rarely altered unless there is an absolute need for it.

4. PMP

PMP (Project Management Professional) is considered by some to be an agreed upon set of standards and conventions as set out in the PMBOK (Project Management Body Of Knowledge) in project management rather than a project management methodology. It does, however, remain tremendously popular among Project Managers, especially in the US.

PMBOK contains 5 main process groups that are to be followed during a project namely; Initiating Group, Planning Group, Executing Group, Controlling Group and Closing Group. It also follows 10 knowledge areas namely:

◈ Project Communication Management

◈ Project Cost Management

◈ Project Human Resources Management

◈ Project Integration Management

◈ Project Procurement Management

◈ Project Quality Management

◈ Project Risk Management

◈ Project Scope Management

◈ Project Stakeholder Management

◈ Project Time Management

In order to qualify for the PMP exam, a very rigid set of prerequisites need to be followed:

◈ 35 hours of formal project management training

◈ Secondary diploma

◈ 7500 hours directing and leading projects

OR

◈ 35 hours of formal project management training

◈ Four year degree

◈ 4500 hours directing and leading projects

5. PRiSM

The PRiSM (Projects integrating Sustainable Methods) methodology takes into account any environmental factors that may be affected by the project. It was developed by GPM Global to a repeatable methodology and focusses largely on projects that are on a bigger scale.

What sets PRiSM apart from other project management methodologies is that it is one of very few methods that requires Project Managers to be accredited, and rewards them for that fact. It is a methodology that is primarily used in the construction and infrastructure sector where work has a likelihood to have a negative effect on the surrounding environment.

6. PRINCE2

Possibly the best known and most popular project management methodology in the UK and throughout Europe, PRINCE2 (PRojects IN Controlled Environments) prides itself on the fact that it can be tailored to meet the needs of any project, regardless of it’s size and industry. It follows a very strict set of processes and principles that, when followed correctly, ensure that the project can in fact be considered to be PRINCE2.

The terminology that is used in PRINCE2 remains the same during each project, ensuring that communication runs smoothly and roles and responsibilities are assigned to each member of the project team, which ensures that each team member knows what they are responsible and accountable for.

Choosing Wisely

It is easy to see that each project management methodology has it’s positive and negative points, depending on the needs of the organisation and the types of projects that it will be undertaking. There are a number of factors that need to be considered before making a decision such as the cost of certification, the amount of staff members that will have to receive training, the reputation that accompanies the methodology and, of course whether it will suit the environment in which it will be utilised.

Other factors that will come into play is whether it will give you a competitive advantage, the effect that it will have on daily operations, the core values of the organisation where it will be used and whether the stakeholders will be likely to agree with the choice that you have made. In the end, the project management methodology that wins out should be the one that gives you the best chance at delivering a successful project as often as possible.

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Understanding the 7 Principles of PRINCE2

Anyone familiar with the PRINCE2 project management methodology will know that it uses 7 Themes, 7 Processes and 7 Principles to ensure the project remains truly PRINCE2 and that best practice is used throughout. Uderstanding the 7 Principles of PRINCE2 is vital as their implementation could mean the difference between aPRINCE2 Project that reaches a successful conclusion and one that falls short before reaching it’s scheduled conclusion. With that goal in mind, they are outlined and explained here.

1. Continued Business Justification

Since a PRINCE2 project is divided into manageable stages, the Project Manager has a chance at the end of each project stage to review the project and the Business Case to ensure that it is still viable. It may happen that project change or risk causes the project to veer from it’s justification when the project was first initiated initiated.

If this happens, corrective action needs to be taken in order to steer the project back towards it’s intended goal. If the Project Board deems the project to have strayed too far from it’s boundaries, it will no longer be viable and the project may be brought to a premature close.

2. Defined roles and responsibilities

Each individual involved in a PRINCE2 project need to know exactly what their role is and what they will be responsible for during it’s lifecycle. It is near impossible to work efficiently in an environment of uncertainty and disarray and therefore, each person’s duties need to be outlined in a clear and detailed manner.

This will ensure that there is no confusion when the project starts and each member of the project team can immediately start with their duties. This is of the utmost importance as time is a major factor in any project and procrastination and uncertainty cannot be allowed to interfere.

3. Tailor to Suit the Project Environment

Each PRINCE2 project has a measurable size, scope, risks, environment, complexity and importance. PRINCE2 makes it possible to tailor the project while taking these factors into account. No matter how big or how small the project may be, it needs to be tailored to it’s own specific needs with all the above factors accounted for.

Tailoring a PRINCE2 project ensures that Project Managers don’t follow a template-driven style of project management, but rather cater to the needs of each specific project. This, once again, ensures that he project remains fully PRINCE2 and is treated on it’s own merit.

4. Manage by stages

As previously mentioned, each PRINCE2 project is divided into stages, making it easier to manage and to keep track of the direction that the project is heading towards. The Project Plan is revised at the end of each stage and a Stage Plan is created for the start of the next stage. This gives the Project Manager and Project Board a chance to verify that the project is still viable and the risks involved are contained within the prearranged and agreed upon limits.

5. Manage by exception

Managing by exception is basically the opposite of micro-management. Once the tolerances as far as time, cost, quality risk and scope are established, the different levels of management will each assume a determined level of authority and accountability over each of the tolerances. The PRINCE2 Project Manager will manage the day-to-day running of the project and if the above tolerances are forecast to be exceeded, the issue should be escalated to the next level of management for a decision to be made as far as how to proceed in order to remedy the situation.

The Project Manager will also follow this Principle. They cannot supervise every member of the project team, who have been given their own roles and responsibilities. If an issue is discovered, it will be reported to the Project Manager and they will ensure that it is either dealt with or reported to the applicable superior or manager.

6. Focus on products

When implementing the PRINCE2 method, it is vital that the products produced are of the quality that was agreed upon during the very conception of the project. This is an output-oriented approach to creating the product and will ensure that the quality of the product not only meets the agreed upon standards, but that each subsequent product meets those same standard every time. This includes not only the product produced at the end of the project, but all products produced throughout the project’s lifecycle.

7. Learn from experience

As a PRINCE2 project progresses, lessons learned should be documented in the Lessons Log as they occur, including the outcome of each lesson. This will make for excellent reference when undertaking future PRINCE2 projects where similar situations may arise, not only for one, but all Project Managers within the organisation.

Similarly, lessons learned from previous PRINCE2 projects will have been documented and made available for scrutiny during the current project. This ensures that mistakes are not repeated and that an issue that arises may have a swift resolution. An issue that may now seem impossible to overcome may have occurred in a previous instance and a resolution may be readily available. The input from other Project Managers who have worked on similar projects may prove to be an invaluable resource during future PRINCE2 projects.

Final notes for PRINCE2 Project Managers

As with any PRINCE2 project, following these Principles drives the project towards a goal that not only the Project Manager, Project Sponsors and Investors have time and money invested in, but speaks volumes as far as the use of best practise is concerned within the organisation. A client that is fully satisfied by the product produced at the end of a project is far more likely to provide return business.

A PRINCE2 project that is not managed according to the Themes, Processes and Principles that are outlined in the methodology can easily spiral out of control, coming to an abrupt and unscheduled halt. Gaining a firm grasp of comprehension of these 7 PRINCE2 Principles will ensure that every subsequent project is treated and managed correctly and according to it’s own character.

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The Seven PRINCE2 Themes Defined

The PRINCE2 project management method contains 7 PRINCE2 Principles, 7 PRINCE2 Processes and 7 PRINCE2 Themes. The Seven PRINCE2 Themes are integrated into the 7 PRINCE2 Processes and this is a notable strength of the PRINCE2 method. The PRINCE2 Themes offer a thematic approach to the project whilst the PRINCE2 Processes describe the chronological approach to the project from beginning to end. With these PRINCE2 themes comes the ability to steer the project towards success and the seven PRINCE2 themes defined below are vital to ensuring that your project is provided with every opportunity to succeed.

The Business Case

The first of the PRINCE2 themes is the Business Case which aims to clearly define the reasons for which the project is being undertaken. The Business Case documents the benefits that the project is expected to deliver and in order for the Business Case to remain valid, the benefits must continue to outweigh the risks and costs that are associated with the project at hand.

Continued business justification must be maintained in order for the project to continue and the Business Case of the PRINCE2 themes will provide a reference point to ensure that this is achieved. This vital document enables the Project Board to define the estimated costs, risks and benefits of the project which will provide a clear view of what will constitute a successful result for the current project.

It is necessary, when considering the Business Case of the PRINCE2 themes, to ensure that this document is referred to regularly and updated at the end of each project stage. If at any point during the course of the PRINCE2 project it is found that it has veered too far from the objectives as laid out in the Business Case, the Project Board can make the decision to prematurely close the project to minimise further losses and prevent the wastage of the remaining resources. The Business Case, as defined in the PRINCE2 themes, can be considered to be the Guide Book for the project.

Organisation

The next of the PRINCE2 themes that we will be taking a look at is the Organisation Theme. The main goal of the Organisation theme is to define the structure for responsibility and accountability of the project team members, the Project Manager, the corporate management, the Project Board and the stakeholders. The roles and responsibilities within a PRINCE2 project ensure that everyone is aware of what is required from them and this prevents uncertainty and situations of “passing the blame”.

Some of the roles that are found within the Organisation aspect of the PRINCE2 themes are:

• Executive – as a member of the Project Board, the Executive is responsible for ensuring that a PRINCE2 project maintains its focus on achieving the expected objectives and assuring that the project provides value for money.

• Senior User – this Project Board member specifies the product/s and outcomes that the project must achieve and is responsible for defining the required benefits and demonstrating to higher management that the project is fulfilling these needs.

• Project Manager – is the person who is ultimately held responsible for the success or failure of a project and this is determined by whether or not the required product is delivered, meets the quality criteria and does not exceed the budget for time and cost.

• Team Managers – are usually present on large-scale projects where the project team is broken down into smaller teams and the duties of the Team Manager is to ensure that the Work Packages are received, completed and returned; as well as reporting progress to the Project Manager via Checkpoint Reports.

Plans

When it comes to the PRINCE2 themes, the Plans theme is one of the most important and provides the crucial backbone which supports the method. Regardless of whether or not you use the PRINCE2 method, there is no denying that proper planning is essential to the success of any project. Not only does planning define the instructions for the future of the project, it also provides a means by which to evaluate the project as it progresses. The PRINCE2 theme for planning enables you to clearly see what has been achieved thus far and what has been expended on a project at any given point.

There are four levels of planning within this PRINCE2 theme:

1. Project Plan

This is used by the Project Board throughout the course of the project as a baseline against which project progress can be measured. The Project Plan contains an overall schedule and cost assessment for the project, as well as the approved tolerances that have been agreed upon.

2. Stage Plan

The Stage Plan is a baseline reference which is used by the Project Manager for the day-to-day activities that must be carried out when managing a PRINCE2 project. Each stage has its own Stage Plan and these will describe the resources and products involved with that stage, the tolerances assigned by the Project Board and the quality activities which must be addressed. Updating the Stage Plan regarding the ongoing progress of the stage will allow the Project Manager to spot deviations in a timely manner.

3. Team Plan

When the current project requires Team Managers (generally due to size and/or complexity), the Stage Plan can be segmented into Team Plans which are used by the Team Managers. These Team Plans are used to allocate tasks, monitor progress and remain watchful with regards to team-level constraints.

4. Exception Plan

If, at any point during the project, it is forecast that the stage-level tolerances will be exceeded, the Project Manager must submit an Exception Report to the Project Board as expected by this one of the PRINCE2 themes. This will include details of the exception, the impact that it is expected to have on the project, suggestions for what course of action can be taken and the recommendation of a particular option that could be implemented to handle the issue. When necessary, an Exception Plan will be created through this section of the PRINCE2 themes as a response to the Exception Report. If approved, the Exception Plan will replace the section of the original plan from the point at which the Exception was noted.

Risk

The Risk Theme supports the first three PRINCE2 Themes and is focused on managing the risks associated with the project. High quality risk management significantly increases the project’s chance for success and this one of the PRINCE2 themes provides a risk management strategy for the project at hand.

The Risk Management Strategy which is used by the PRINCE2 project management method recommends five steps when dealing with risks:

• Identify the risk
• Assess the probability and impact of the risk
• Plan a response to the risk
• Implement the approved risk response
• Communicate all information associated with the risk

Quality

An important inclusion in the PRINCE2 themes is the Quality Theme. This addresses the need to fulfil the specified quality requirements of the product that is to be delivered by the project. The purpose of the Quality portion of the PRINCE2 themes is to define the expected level of quality that must be achieved in the development of the product.

Whereas other project management methods place their focus on cost or time, the emphasis of the PRINCE2 method is on quality. Dedicated quality planning, quality control, quality management strategy and quality review all strive to ensure that the quality tolerances for the product are met in order for the product to be accepted by the customer.

Change

Change is inevitable and this is particularly true when it comes to the world of project management. One of the PRINCE2 themes is the Change Theme and this provides the required guidance for managing these changes. Approaching change in a reliable and controlled manner is essential to managing it appropriately whilst maintaining the security and stability of the project.

Change deals with project issues which are any relevant events which were unplanned but have happened, or are likely to happen, and require management action. When an issue has been identified, the PRINCE2 method has a five-step procedure for dealing with the issue:

1. Capture the issue information in the Issue Register (or Daily Log for informal management) and create an Issue Report
2. Examine the issue and assess the impact it can have on the project if change is initiated
3. Evaluate alternatives and recommend the proposed action necessary to handle the issue
4. The Project Manager, Project Board or Change Authority will make a decision regarding the action to be taken
5. Implement the authorised corrective action and update the appropriate Logs and Registers

Progress

The last of the PRINCE2 themes is the Progress Theme and the purpose of this is to monitor and control the progression of the PRINCE2 project. To ensure continued business justification, it is vital to compare the project plans to the project reports. The plans will describe the expected input and the reports will identify what has already been achieved and what is still required. This comparison assists in minimising the variation between the expected progress and the actual progress which then determines whether or not the project is still on track to achieving its objectives. Without this control in place for monitoring the project’s progress, it could veer far enough away from the Business Case to result in it being deemed no longer viable and this almost always results in a premature closure and a failed project. Ensuring that progress remains steady can truly make the difference between failure and a successfully completed project.

The PRINCE2 method is well-structured and is based on the experience, knowledge and insight of many project management professionals. To ensure that you gain every advantage provided by this method it is necessary to implement the method as it was designed and this includes making proper use of all seven of the PRINCE2 Themes.

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The PRINCE2 Processes Explained

The PRINCE2 project management methodology breaks projects down into staged which are then each managed as an entity on their own. This ensures that each stage can be monitored and controlled which provides the ability to resolve situations, risks and issues as soon as they arise. The goal of any PRINCE2 project is to deliver a product which meets the expectations and agreed upon criteria as determined by the Customer. The PRINCE2 project management method consists of 7 Principles, 7 Themes and 7 Processes. The PRINCE2 processes explained below are what drive a PRINCE2 project towards a successful completion.

1. Starting Up a Project (SU)

The Starting Up a Project process is the first of the 7 PRINCE2 Processes when using the PRINCE2 project management method. Technically, this is actually a pre-project process as it deals with ensuring that the requirements for beginning the project are in place. This process uses the Project Mandate which provides a basic definition of what reasons there are for the project to be initiated and what the expected outcomes of the project are.

During the Starting Up a Project process of the PRINCE2 project management method the Initiation Stage plan will be created, the Project Brief will be prepared, the project management team will be appointed and the information required by the PRINCE2 project team will be compiled. This PRINCE2 process aims to determine whether or not the PRINCE2 project is viable.

2. Directing a Project (DP)

The PRINCE2 Directing a Project process runs from the very start of any PRINCE2 project until project closure. This process is aimed at the PRINCE2 Project Board which manages and monitors the project. The Directing a Project process of the PRINCE2 project management method does not handle the day-to-day activities of the PRINCE2 Project Manager.

This PRINCE2 process has four main responsibilities in terms of the project:

◉ Initiating the PRINCE2 project if it is deemed viable

◉ Monitoring progress whilst providing guidance and dealing with exception situations

◉ Addressing stage boundaries

◉ Closure of the PRINCE2 project (planned or premature)

3. Initiating a Project (IP)

The Initiating a Project process of the PRINCE2 project management method is where work on the actual project truly begins. This is the main planning stage of a PRINCE2 project and the Project Initiation Document (PID) is created during this process. During the Initiating a Project process, the work done in Starting Up a Project is expanded upon and all elements are viewed in more depth. This is when the “What? When? How? Where? And Who?” questions are answered.

It is also important during this project management process to confirm that there is an acceptable Business Case as this is vital to the success of any PRINCE project. Committing the necessary resources for the first stage of the project is also done during the Initiating a Project process and a baseline for decision-making processes is established. This PRINCE project management process will set the tone for the project which means that it is essential to ensure that the appropriate actions have been taken before the project continues any further.

4. Controlling a Stage (CS)

Controlling a Stage is the PRINCE2 project management process which ensures that each project stage stays on track. The monitoring and control activities of the PRINCE2 Project Manager are addresses by this process which enables the Project Manager to react appropriately to any unforeseen events that occur. The Controlling a Stage PRINCE2 process deals with the day-to-day management of the project which is the core role of the Project Manager position. This PRINCE2 project management process is applied to each stage of the PRINCE2 project and repeats in a cycle as necessary until the closure of the project. Some of the key activities in this project management process are:

◉ Authorising work packages

◉ Compiling progress reports for the PRINCE2 Project Board

◉ Reporting on stage highlights

◉ Monitoring any changes that arise

◉ Escalating project issues that require PRINCE2 Project Board attention

◉ Taking corrective action

◉ Taking receipt of completed work packages

5. Managing Product Delivery (MP)

In the PRINCE2 project management method, the Managing Product Delivery process provides the link between the PRINCE2 Project Manager and the Project Team Managers. This PRINCE2 project management process controls the flow of work packages from the moment that they are assigned to the relevant team until they are delivered back to the Project Manager via the Team Manager. Work packages travel the following route:

Project Manager > Team Manager > Project Team > Team Manager > Project Manager

Some of the main responsibilities of this PRINCE2 process are:

◉ Accepting work packages

◉ Executing work packages

◉ Ensuring that the work packages meet all necessary requirements

◉ Delivering the completed work packages

◉ Receiving approval for completed work packages

◉ Monitoring work progress and forecasts

6. Managing a Stage Boundary (SB)

The most important part of the Managing a Stage Boundary process in PRINCE2 project management is to provide the Project Board with key decision points in order to determine the continued feasibility of the project at hand. This information will enable the PRINCE2 Project Board to decide whether or not the project should continue on to the next stage. The activities and objectives of this PRINCE2 project management process include:

◉ Providing assurance to the Project Board that the deliverables have been completed in accordance with the defined requirements

◉ Providing information to the Project Board to assess project viability

◉ Providing information to the Project Board in order to gain approval for the completion of the current PRINCE2 project stage

◉ Determining the tolerance levels for the next project stage

◉ Gaining authorisation to begin work on the next project stage

◉ Reviewing and updating (where necessary) the Business Case, Project Plan and Risk Register

◉ Producing an Exception Plan (when necessary)

◉ Recording any lessons which have been learned during this stage

7. Closing a Project (CP)

The PRINCE2 Closing a Project process relates to any closure of the project – whether it is the planned closure of a successfully completed project or the premature closure of a project which has proven to be unfeasible. Just as it is important to begin a PRINCE2 project in a controlled manner; it is equally essential to ensure a controlled closure. The decision to bring a PRINCE2 project to an end belongs to the Project Board and it is the responsibility of the Project Manager to prepare and compile the information and documentation that will be required for this decision to be made. The main objectives of the PRINCE2 Closing a Project process are:

◉ Determine whether the objectives detailed in the Project Initiation Document (PID) have been achieved

◉ Ensure that the product has been handed over to the Customer

◉ Confirm that the Customer’s product expectations have been met

◉ Gain formal acceptance of the project’s product/s

◉ Ensure that operational and maintenance arrangements are in place for the product/s

◉ Provide recommendations for follow-on actions that may be required

◉ Update the Lessons Log

◉ Update the Issue Register

◉ Compile the End Project Report to be provided to the PRINCE2 Project Board

◉ Notify the organisation in charge of the intention to bring the project to an end

When it comes to the world of project management it is vital to ensure that you are using a method which has been consistently proven to have a high rate of success. The PRINCE2 project management method has earned its reputation for success and this has led to it being the most choice across the world. Choosing the right project management method can literally make the difference between project failure and project success.

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The Advantages of the PRINCE2 Methodology

In the world of project management, one name stands head and shoulders above other project management methodologies – PRINCE2. It is a method that has been designed to give projects the greatest possible chance at being successful and has gained a massive following over the last decade.

The success of the PRINCE2 methodology is undeniable given the fact that the number of exam takers is still rising year-on-year. It is virtually a given that organisations looking to employ Project Managers list a PRINCE2 certification as a must-have on the CVs of those that will be considered for a position.

PRINCE2 Methodology Explained

The PRINCE2 methodology is fully tailorable to suit the needs of projects of any size and complexity. It follows a set of 7 Themes, 7 Principles and 7 Processes to ensure that the project remains viable and a truly PRINCE2 project.

The 7 PRINCE2 Principles are:

1. Business Justification – Ensuring the project remains viable.

2. Learn from Experience – lessons learned are recorded for future projects.

3. Roles and Responsibilities – defines who will be responsible for certain work to be done.

4. Manage by Stages – the project is divided into more manageable stages.

5. Manage by Exception – ensures that agreed-upon boundaries are not exceeded.

6. Focus on Products – clear and concise product descriptions.

7. Tailoring – the project is tailored according to it’s environment, size, complexity, importance, capability and risk.

The 7 PRINCE2 Themes are:

1. Business Case – outlining why the project is necessary and is reviewed to ensure it remains viable.

2. Organisation – defines project roles and responsibilities.

3. Quality – ensures that the quality of the product produced is as was agreed.

4. Risk – details any issues that may, or have arisen during the project.

5. Plans – detailing the plans to be implemented at different stages during the project.

6. Change – outlines any potential or approved changes to the baseline objectives.

7. Progress – compares actual progress to planned progress.

The 7 PRINCE2 Processes are:

1. Starting Up a Project – establishes the approach and objectives of the project.

2. Initiating a Project – outlines project management strategies and controls.

3. Directing a Project – shows the desires direction that the project should follow.

4. Controlling a Stage – the day-to-day management of the current project stage.

5. Managing Product Delivery – focusses on the creation of specialist products.

6. Managing Stage Boundaries – planning of the next project stage to be undertaken.

7. Closing a Project – closing the project in a controlled and orderly fashion.

The advantages of the PRINCE2 methodology

◉ PRINCE2 is predictable

The fact that the PRINCE2 methodology breaks projects down into stages means that it can be closely monitored using a step-by-step method from the very beginning of the project up to it’s closure. This severely decreases the chances of the project spiralling out of control and and revision of this document keeps it on track towards it’s intended goal.

◉ Utilising best practice

A project is only considered successful if it delivers the quality of product that was agreed upon at it’s conception. The best way for this to be realised is in using best practice – one of the factors that has kept the PRINCE2 methodology as popular as it is today.

◉ Standardisation

The PRINCE2 methodology standardises every aspect of the project to ensure that there is no chance of miscommunication or misdirection. From the common PRINCE2 language, a standardised filing process to standardised documentation, it guarantees that everyone involved in the project knows what to do and when it should be done.

◉ Time and cost effective

Given the above-mentioned standardisation, time and money is saved on training new employees that are already familiar with the PRINCE2 methodology. Less time is spent identifying risks as they will have been outlined at the beginning of the project and, if an unexpected risk arises, it can be dealt with timeously as project stages end and the next begins.

Time and money are also saved in that PRINCE2 encourages a minimum number of meetings – only to be undertaken at crucial stages of the project and to be kept brief and to the point.

◉ Tried and tested

When the PRINCE2 methodology is revised, input from project management professionals from around the globe is considered, ensuring that it does not stray from lessons learned by those that are in the know in the project management industry.

PRINCE2 has reached the age of 30 years and is still going strong, proof that it remains a trusted method in over 50 countries across the globe. It is used in every sector of business and has been hailed as the project management methodology to which all other methods are measured.

◉ PRINCE2 is free to use

Many other project management methods will charge a licensing fee in order for it to be used on projects. Not so with the PRINCE2 methodology. There are no licensing fees attached and the method can be freely used, negating the need for organisations to develop their own project management methodologies.

There are numerous other benefits to implementing the PRINCE2 methodology – for organisations and individuals alike. The PRINCE2 Foundation and Practitioner certifications are held in high regard and, upon gaining your certification, you will be well on your way to managing successful projects with PRINCE2.

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Project Based Organization: PMP Concepts to Learn

Whether you are far along in your preparation for the PMP exam or if you are just starting out, one concept you have likely run across is Project Based Organization, or PBOs. The reason I make this assumption is PBOs, as a topic, are typically covered within the first few chapters of any PMP prep book.

PBOs are a general philosophy about organizational structure you will experience on the PMP exam. What I means is, PBOs relate, but are unique to the three overall organizational structures tested on the PMP exam. It is important for you to understand what PBOs are and how they relate to the three tested organizational structures. As well, you should understand how this concept will show up as a question on the PMP exam.

To fully understand Project Based Organizations, let’s start by clarifying what the three types of organizational structures are that you will see on the exam. Then with that general understanding we can better address what PBOs are and how they relate. Finally, we will address how you can expect to see this concept appear on the exam.

Organizational Structures

As I noted above there are three different types of organizational structure that you could experience as a project manager; which include, functional, projectized, and matrix.

Functional Organization

A functional organization is what you are likely most accustomed to, which makes sense because this organizational structure is the most common.

Functional organizations rely on traditional hierarchy created around areas of work specialization. What that means, for example, accounting would be its own functional area, or specialization. There could be an Accountant reporting to a Director of Accounting who reports to the CFO. All position specialize in the functional area of accounting.

What you need to remember for the exam is in a functional organizational structure a project manager has little authority over project team members. Evaluations, both positive and negative, are provided by the functional leader.

Projectized

A projectized organization is a company who is entirely organized around projects. This means that all employees are hired and retained for specific project work. When the project ends, so could their employment.

I say could, only because there might be another similar project in the works that the employee could be added to. However, if another similar project is not scheduled, employees would look for a new employer.

Projectized organizations do not provide work stability, they are solely focused on completing project work.

What you need to remember for the exam, is in a projectized organization the project manager has all the authority, as all employees report directly to the project manager.

Matrix

A matrix organization is a company that puts emphasis both on the functional work structure as well as the project work. What you need to understand about a matrix environment is project team members essentially have two bosses.

In a matrix environment team members work on their assigned project work – where the Project Manager has authority – as well as their operational tasks – where their functional manager has authority.

There is a spectrum for matrix environments that range from weak matrix to strong matrix.

In a weak matrix the functional manager has much more authority than the project manager. This authority is highlighted by the fact that in a weak matrix a project manager is typically not called a project manager, instead they are referred to as Project Expediter or Project Coordinator.

In a strong matrix the project manager has more authority. The team members look towards the project manager to provide their work assignments. The project manager provides all managerial functions including team member evaluation.

Finally, a moderate matrix falls somewhere in between. Where the functional manager and the project manager hold equal authority over the project team members. One for the operational work, and one for the project work respectively.

An important item you should note about a matrix environment, is it is the most typical type of organizational structure you will see on the exam. What I mean is a matrix environment is the PMIs ideal environment. Unless otherwise specified you should assume that all questions utilize the matrix organization structure as framing for your answer.

Project Based Organization

Okay, okay, enough with the extra stuff, let’s discuss PBOs – that is what you came here for.

A PBO is an organization that creates temporary reporting structures in support of project work. PBOs create these temporary structures to help reduce barriers, which might exist otherwise, to ultimately allow the project team to be more efficient.

PBOs have an overall philosophy that project work is important, regardless of the organization’s overall structure (i.e., functional, projectized, or matrix.)

One confusion you might experience is separating projectized organizational structure from PBOs. Think of it like this, projectized organizations will hire and release based on project needs, there is no long term guarantee of employment – as we discussed above.

However, PBOs want to reduce barriers to aid project success. Employees in a PBO will likely experience various reporting structures throughout their career, but they will have a home even when their current project is complete.

With that said, a PBO can be a projectized organization, but it could also be functional or matrix. Just remember that a PBO creates temporary structures to accommodate project work, because of of the organization’s belief in the importance of project success.

One additional note, project managers could have some authority over the project team within a PBO as they may receive some direct reporting within a temporary structure.

PBOs on the Exam

Although I have provided you with some tips throughout the post about how you will see this information on the exam, there are a few additional items to point out to help you connect the information to other concepts you have learned in your preparation.

Enterprise Environmental Factors

When you consider organizational structure, for the exam purposes, you should think of all the concepts we address in this post, PBOs included, as the organization’s Enterprise Environmental Factors (EEFs).

As you will read within my peers blog post, EEFs are important to consider. For example, the EEF of organization structure can showcases an organization’s commitment to projects and help you understand the direct effects to your ability as a project manager.

Typical PBO Exam Questions

Most exam questions that contain these organizational structure concepts as an answer choice should be pretty straight forward. Here is one example question.

1. Maria, a senior accountant, just completed her tasks for a year long project to update the financial management system at her company. She received word that she will soon be supporting a project to procure and implement a new ERP system for the company, but first she will spend a little time completing general operations within the accounting department. Based on this information it sounds like Maria is working in what type of environment?

a. Projectized
b. Weak Matrix
c. Functional
d. Project Based Organization

1. D. It sounds like this company is creating temporary structures that are both functional and projectized, which sounds like a PBO. Did you think this sounded like a projectized organization? Well the trick here was Maria completes some general operational work in between projects. In a projectized organization there is not operational work.

PBOs Final Thought

I hope you learned a little more about PBOs and how they relate to the overall organizational structure.

Although I know this was a long winded discussion of PBOs, if nothing else please remember for the exam that PBOs can be present in any type of organizational structure, whether functional, matrix, projectized. PBOs have a general philosophy that project work is important and the organization will try and reduce any barriers to ensure project success.

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