PRINCE2 Methodology & Advantages

Projects IN Controlled Environments or known as PRINCE2, is a methodology in project management. Which is applicable to all types of projects.

It is evolved from an earlier method called Project Resource Organisation Management Planning Techniques or known as PROMPT II. In 1989 the Central Computer and Telecommunications Agency (CCTA) started using one of the methodologies of PROMPT II for their Information System Project Management as a UK Government standard. And later they named it as “PRojects IN Controlled Environments” or “PRINCE2” s an acronym name.

PRINCE2 METHODOLOGY

PRINCE2 is not like others framework structure. It can promptly be custom-made to any size or sort of Project Management Framework. PRINCE2 methodology has comprised of 4 primary parts of Integrated Elements. Those are 1.Core Principles; 2.Themes; 3.Processess; and 4.Tailoring.

• Core Principles: It has seven principles. Which is using for evaluating a project in a good way. Those principles are,
• Continued business justification.
• Learn from experience.
• Define roles and responsibilities.
• Manage by stages.
• Manage by exception.
• Focus on products.
• Tailor to suit the project environment.
• Themes: Ought to be tended to consistently be parts of Project Management. It gives us a decent review of how to address each of these viewpoints. Those viewpoints are, Business Case. Organization. Quality. Plans. Risk. Change. Progress.
• Processes: From beginning to the end of a project it has been using seven processes step by step to complete a project. Those processes are,
• Starting Up a Project.
• Initiating a Project.
• Directing a Project.
• Controlling a Stage.
• Managing Product Delivery.
• Managing a Stage Boundary.
• Closing a Project.
• Tailoring: Tailoring is about speculation how best to apply the strategy to Project Management to get a decent adjust of project control and low organisation. It has been checking on
• Terms and Language.
• Management Products.
• Roles and Responsibilities.

Advantages of PRINCE2 methodology

PRINCE2 has lots of benefits and also capabilities. Below we are highlighting all its benefits and capabilities.

Key Benefits:

◈ Conveyance Confidence.
◈ Talk the Same Language.
◈ Client Focused.
◈ Conveys Reliability.
◈ Backings Cross Functional Working.
◈ Convey What the Business Need.
◈ Adaptable Control.
◈ Vocation Development.
◈ Some portion of an Integrated Set.

Key Capabilities:

◈ Support Business Outcome.
◈ Empower Business Change.
◈ Oversee Risk in Line with Business Needs.
◈ Enhance Customer Experience.
◈ Show Value for Money.
◈ Persistently Improve.

Pros and Cons about PRINCE2 methodology

PRINCE2 also has its own few pros and cons. Actually, PRINCE2 has only one small con, which very small to manage.

Its Pros are:

◈ PRINCE2 gives a strategy to overseeing projects inside a plainly characterized structure.
◈ It has been giving learning about what to do if the project doesn’t create as arranged.
◈ In this method, every strategy is resolved with its key data sources and yields and with specific targets and activities to be finished.

And its Con is:

◈ Infrequently PRINCE2 become improper for little tasks or where prerequisites are relied upon to change because of the work required in making and looking after reports, logs and records.

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The 7 principles, themes and processes of PRINCE2

Are you Agile or Prince?

Many today are supporters of agile project management methods such as Scrum or Kanban. PRINCE2 is more a representative of classic project planning - but there are also voices that follow the hybrid system: PRINCE2 for the clear structure and framework, Scrum for sprints within the project stages. So it makes sense to look at PRINCE2 (Projects in Controlled Environments) and its principles - here the overview of the 7 principles, the 7 topics and the 7 processes.

The 7 Principles - from Good Practice to Best Practice

The seven basic principles of PRINCE2 are the backbone of a project. They are used again and again. You can also ignore parts of it - but if you remove too many vertebrae from the backbone, the project can collapse.

- Ongoing justification. A project has to pay off. Invest, expenditure of time and resources must be constantly justified.

- Valuable experience. Project teams should learn from previous projects. Therefore, project journals should be available.

- Defined roles. Everyone needs to know what the other one is doing. It has to be clear who the decision maker is.

- Defined phases. Difficult tasks are better divided into manageable sections or project phases.

- Defined exceptions. In a well-running project hardly intervene. The project management is only informed if there is a problem or if it becomes apparent.

- Focused product. The result is a product and it should be well defined. The product properties determine the work, not the other way around.

- Customized project environment. PRINCE2 can be scaled and customized. Projects that adapt PRINCE2 to their needs are more successful than dogmatic PRINCE2 projects.

The 7 topics - from clue to certainty

The seven topics are something like the working dimensions of a project. For example, in each project, the organization wants to be defined, the quality or risk to be weighed. While perhaps the principles from above are still informal or self-evident in a project, at the latest the themes of a project should be transcribed. The topics can also be dealt with W-questions.

- Business Case. Compare with the ongoing justification. It's about turning an idea into a worthwhile business case.

- Organization. Compare with the defined roles. Here, the project manager defines all the roles and responsibilities of the participants.

- quality. Compare with the focused product. It is also about quality. To make sure that this is not too abstract, it is important to define and stick to it at the beginning of a project.

- Plans. With a plan you get to the destination. Plans focus on products, timeframes, costs, quality and benefits.

- Risks. This topic serves to anticipate, identify, evaluate and control events during a project. These are recorded in a risk log. Negative risks are referred to as threats and positive as opportunities.

- Changes. This topic is about editing change requests and issues that occur during the project. The idea is not to prevent changes, but to subject them to a standardized procedure.

- progress. The project progress must be constantly checked. The project manager checks where the team is relative to the plan. Escalations to the end of the project are part of the project progress.

The 7 processes - from planning to action

PRINCE2 is a process-oriented method. Anyone who has been scanning these lines with restless eyes and wondering: when will the action finally come - are now in their element! This is about the division of a project into process sections, and here the action is brought into a structured sequence. The project manager closely monitors the project phases and leads the team to a goal. In addition, the English terminology is mentioned here because the processes are occasionally provided with the specified project abbreviations.

- Prepare / Start Up (SU). Create a project mandate that answers logistical questions about the project. It explains the purpose of the project, who does it and how it is done. The project briefing results from the mandate, existing project diaries and discussions with the persons involved in the project. This phase should also discuss feasibility and gather all information for the next process.

- Initiate / Initiate a Project (IP). This phase is about recognizing what needs to be done to complete the project successfully. The project manager describes the project dimensions that need to be controlled, such as time, cost, quality, scope, benefit, or risk.

- Steering / Directing a Project (DP). This project dimension applies to the entire project. The five core activities are initiation, phase demarcation, ad hoc alignment / consulting, project completion.

- Controlling a Phase / Controlling a Stage (CS). Here the tasks of project manager and team manager are described. The project manager authorizes work packages that break down the project into manageable activities. He assigns these to the teams and their leaders and monitors progress and progress if necessary. At the same time, team leaders have these tasks: Coordinating the daily work and communication between the team members and the project manager.

- Managing the product / Managing Product Delivery (MP). Here the communication between team leader and project manager is controlled. The product delivery is divided into three sections: Accepting a work package, executing a work package and handing over a work package.

- Managing the phase transition / Managing Stage Boundaries (SB). The project manager and a steering committee review each phase. The panel decides whether the project should continue. The project manager meets with the team to record the learnings for the next phase. The main activities are: planning the next phase, updating the project plan and the business case, reporting the end of the phase or creating a change or exception.

- Closing / Closing a Project (CP). When is a project over? This banal question is not so easy to answer at the end of complex projects. This makes it all the more important to adhere to these guidelines: declare the project over, identify follow-up actions, complete the project diary and hand over the product.

This overview describes the framework conditions under which projects should take place. As always, a project is only as successful as the motivation and discipline of those involved. At the same time PRINCE2 offers enough flexibility - up to the use of agile methods - to lead projects to success. PRINCE2 brings the discipline to the project. It depends on the project manager to apply rules creatively.

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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

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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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