Structure of PRINCE2: Its Benefits in Project Management

Introduction

PRINCE2 (an acronym for PRojects IN Controlled Environments) is a de facto process-based method for effective project management. Used extensively by the UK Government, PRINCE2 is also widely recognised and used in the private sector, both in the UK and internationally. The PRINCE2 method is in the public domain, and offers non-proprietorial best practice guidance on project management.

PRINCE was established in 1989 by CCTA (the Central Computer and Telecommunications Agency), since renamed the OGC (the Office of Government Commerce). In June 2010, the Office of Government Commerce Best Practice Management functions moved into the Cabinet Office.

PRINCE was originally based on PROMPT, a project management method created by Simpact Systems Ltd in 1975, and adopted by CCTA in 1979 as the standard to be used for all Government information system projects.

When PRINCE was launched in 1989, it effectively superseded PROMPT within Government projects. PRINCE remains in the public domain and copyright is retained by the Crown. PRINCE2 was published in 1996, having been contributed to by a consortium of some 150 European organisations.

7 Principles of PRINCE2

PRINCE2 is a process-based approach that focuses on organization and control over the entire project, from start to finish. That means projects are thoroughly planned before kickoff, each stage of the process is clearly structured, and all loose ends are neatly tied up after the project ends.

The PRINCE2 method is built on these 7 principles

1. Projects must have business justification. Each project must have a clear need, a defined customer, realistic benefits, and a detailed cost assessment.

2. Teams should learn from every stage. Lessons are sought and recorded at every step in the process, and then used to improve future work.

3. Roles and responsibilities are clearly defined. Everyone should know exactly what they’re responsible for — and what their teammates are responsible for.

4. Work is planned in stages. Projects are broken up into individual work phases, with periodic reviews to record lessons learned and confirm the project is still on track to meet requirements.

5. Project boards “manage by exception.” Since board members are typically senior execs who don’t have time to manage a project’s daily activities, they establish baseline requirements for things like time, cost, risk, and scope, and then delegate daily oversight to the project manager. The project manager has the authority to get the project back on track if it’s running late, going over budget, etc. But if issues arise that will impact the established requirements, that’s an “exception,” and the project board decides the best way to proceed.

6. Teams keep a constant focus on quality. Deliverables are continually checked against requirements through the use of a quality register.

7. The approach is tailored for each project. The PRINCE2 method itself should be adjusted to suit the needs of each project, changing the amount of oversight and planning to fit the size of the project, number of people involved, etc.

PRINCE2 Outlines Eight Processes

1. Startup: The decision-makers gather and appoint a Project Manager. Together, these people all define the need for the project and outline the processes by which it is to be executed.

2. Direction: A Project Board is responsible for the overall success of the project, but an individual called the Project Manager, who reports to the Project Board, is charged with the responsibility of managing the details.

3. Initiation: The Project Manager prepares a Project Initiation Document. This document is submitted to the Project Board for approval. If it is not approved, it is returned to the Project Manager for revision.

4. Stage control: The project is broken down into manageable stages, the number of which depends on the project size and risk level. Each stage contains plans for the succeeding stage. Before a new stage can be begun, the current stage must be fully executed.

5. Stage boundary management: The current stage is reviewed, and the process for the next stage is developed. The project can continue only after the Project Board has approved the execution of the current stage and the plan for the next stage.

6. Planning: This includes decisions as to what products will be produced, the activities that will be required to produce the products, estimates of the cost, time, and other resources that will be necessary, risk analysis, activity scheduling, and process streamlining.

7. Product delivery management: The Project Manager must make sure that the right products are produced according to the planned schedule.

8. Closing: After the project has been completed, the Project Manager conducts a Post Project Review, which is an evaluation of the project’s outcome. Once this document has been approved by the Project Board, the project is closed down.

The 7 Phase Process

Starting-up a project

- Someone submits a request for a new project, called the project mandate. The project mandate is very brief, covering only why the project is necessary and what it will ideally accomplish.

- Someone assesses every project mandate to make sure the company is capable of taking on the project.

- If approved, the person who initiated the project then submits a more detailed project brief, which covers the actions, resources, manpower, etc. needed to execute the project.

Directing a project

- The project board reviews and evaluates project briefs based on business justification and viability for another round of approval/disapproval.

- The project board decides what it needs to do in order to organize and execute each approved project, and what/how they’re going to delegate to the project manager.

Initiating a project

- The project manager creates Project Initiation Documentation, including a comprehensive project plan and baselines for 6 performance targets: time, cost, quality, scope, risk, and benefits.

- Initiation documents are sent to the project board for approval. Once the board is confident in the project plan, they give their approval once again and work begins.

Controlling a Stage

- The project manager breaks down the project into smaller “work packages” and passes them off to team managers and teams to complete.

- The project manager oversees the progress of work packages during each stage and steps in to help overcome roadblocks or correct any mistakes, if necessary.

- Team managers coordinate detailed daily work and act as the link between the project manager and individual team members, helping to make sure everything goes according to plan.

Managing Product Delivery

- The project manager checks progress against the project brief and makes sure deliverables meet quality expectations.

- The project board evaluates completed work packages, and either approves them or requests revisions/changes.

Managing Stage Boundaries

- The project manager and project board review each stage to make sure the project is progressing according to plan and meeting project assurance requirements.

- At each review, the project board decides whether to continue with the next stage or to abandon the project completely.

- Project managers hold a retrospective with the project team to record any lessons learned and improve the next stage.

Closing the Project

- When the project is complete, the project manager wraps up and loose threads, including documentation, outcomes, and reporting.

Advantages of Prince2

- PRINCE2 provides a controlled start, controlled progress, a controlled close

- Regular reviews against plan, business case and risks

- PRINCE2 provides flexible decision points

- Automatic management control over deviations

- Stakeholder involvement at the right times

- Clear communication channels

- Project managers using PRINCE are able to establish terms of reference before the project start

- There is a defined structure for delegation & communication

- Project manager divide a project into manageable stages for more accurate planning

- Resource commitment from management is part of any approval to proceed

- Regular but brief management reports are available (checkpoint reports, highlight reports and exception reports)

- Meetings with management are kept to a minimum, but at vital points in the project

- End product users are able to participate in the decision-making

- End users are involved in project progress

- End users participate in quality checks throughout the project

- User requirements are specified

- PRINCE2 is free (other then any training or support you want to pay for)

- PRINCE2 has a strong User Group

- PRINCE2 is supported by (UK) Government and organisation such as APM and ISEB

- Training courses are available from many accredited training organisation

- PRINCE2 is flexible and can be applied to any kind of project