Ken Bradley’s        Understanding PRINCE 2®PRINCE is a Registered Trademark of CCTA
Ken Bradley’s Understanding PRINCE 2ISBN 1 902192 00 1Published by:SPOCE Project Management LimitedHomelife HouseOxford Ro...
Ken Bradley’s Understanding PRINCE 2                                   DedicationThis book is dedicated to the many client...
Ken Bradley’s Understanding PRINCE 2                                               LIST OF CONTENTSForeword .................
Ken Bradley’s Understanding PRINCE 2PRINCE 2 Planning........................................................................
Ken Bradley’s Understanding PRINCE 2The Senior Supplier Role ................................................................
Ken Bradley’s Understanding PRINCE 2The PERT Logic Network & The Timed Network...............................................
Ken Bradley’s Understanding PRINCE 2Management Stages........................................................................
Ken Bradley’s Understanding PRINCE 2Individual Process Summary Models........................................................
Ken Bradley’s Understanding PRINCE 2Controlling A Stage (CS) - Introduction .................................................
Ken Bradley’s Understanding PRINCE 2Summary Of The Closing A Project Process.................................................
Ken Bradley’s Understanding PRINCE 2FOREWORDThis publication is based on the PRINCE 2 Project Management Methodology.     ...
Ken Bradley’s Understanding PRINCE 2                           Chapter 1    UNDERSTANDING THE        BACKGROUNDTO THE PRIN...
Ken Bradley’s Understanding PRINCE 2Origins of the PRINCE 2 MethodThe   PRINCE Methodology is a development of the PROMPT ...
Ken Bradley’s Understanding PRINCE 2The Standard PROMPT LifecycleGovernment PROMPT had a number of deficiencies from the s...
Ken Bradley’s Understanding PRINCE 2                         Senior Management - Strategic Direction                      ...
Ken Bradley’s Understanding PRINCE 2CCTA were keen to place the enhanced method into the public domain, as an openmethod, ...
Ken Bradley’s Understanding PRINCE 2CCTA continue to support and develop the PRINCE 2 Method and a contribution is leviedf...
Ken Bradley’s Understanding PRINCE 2                              Chapter 2UNDERSTANDING THE BASICS                       ...
Ken Bradley’s Understanding PRINCE 2Introduction to PRINCE 2PRINCE    (PRojects IN Controlled Environments) is a structure...
Ken Bradley’s Understanding PRINCE 2The Structure Of A PRINCE 2 ProjectWithin a PRINCE 2 project environment, each project...
Ken Bradley’s Understanding PRINCE 2♦ the sequence of production of Products/Deliverables;♦ the grouping of Products into ...
Ken Bradley’s Understanding PRINCE 2programme “jigsaw” it will be apparent which outputs and inputs do not match, andappro...
Ken Bradley’s Understanding PRINCE 2The PRINCE 2 ProcessesDESCRIPTION                  REF      EXPLANATIONStarting Up A P...
Ken Bradley’s Understanding PRINCE 2The PRINCE 2 Components:DESCRIPTION       USED       EXPLANATION                  BYOr...
Ken Bradley’s Understanding PRINCE 2The PRINCE 2 Components (Continued)Stages                     IP        Management Sta...
Ken Bradley’s Understanding PRINCE 2The PRINCE 2 TechniquesDESCRIPTION                  EXPLANATIONProduct-Based Planning ...
Ken Bradley’s Understanding PRINCE 2the method. It is anticipated that most organisations will already be using some speci...
Ken Bradley’s Understanding PRINCE 2                    Corporate or Programme Management                            The P...
Ken Bradley’s Understanding PRINCE 2There is a requirement within the Method to have a Project Board function and this can...
Ken Bradley’s Understanding PRINCE 2Project Resources and (Specialist) TeamsThe Project and/or Team Manager have responsib...
Ken Bradley’s Understanding PRINCE 2Project SupportWithin PRINCE 2, Project Support, on a formal basis, will only exist wh...
Ken Bradley’s Understanding PRINCE 2PRINCE 2 PlanningEstimating, planning and re-planning are constant and key activities ...
Ken Bradley’s Understanding PRINCE 2Management activities are concerned with planning, monitoring and reporting the work o...
Ken Bradley’s Understanding PRINCE 2defined in terms of its Products or Deliverables. This is a very effective way to ensu...
Ken Bradley’s Understanding PRINCE 2Additional, lower-level Gantt Plans can be expected to exist in most projects, to give...
Ken Bradley’s Understanding PRINCE 2                                               Stage 1              Stage 2           ...
Ken Bradley’s Understanding PRINCE 2effective, modern project management is therefore integral and inherent in PRINCE 2.Th...
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  1. 1. Ken Bradley’s Understanding PRINCE 2®PRINCE is a Registered Trademark of CCTA
  2. 2. Ken Bradley’s Understanding PRINCE 2ISBN 1 902192 00 1Published by:SPOCE Project Management LimitedHomelife HouseOxford RoadBournemouth, DorsetBH8 8EZTelephone & Fax: 01202-780740Switchboard: 01202-319987E-Mail: enquiries@spoce.comInformation: www.spoce.comPRINCE is a Registered Trademark of CCTA© Ken Bradley 1997First Published October 1997Revised and reprinted February 1999All rights reserved by the copyright holder and the licensee. No part of this publication may bereproduced in any material form (including photocopying and/or storage in any medium byelectronic means and whether or not transiently or incidentally to some other use of thispublication) without the written permission of the copyright holder identified above, except inaccordance with the provisions of the Copyright Designs and Patents Act 1988. Applications forthe copyright holder’s written permission to reproduce any part of this publication should beaddressed to the publisher at the address above.2
  3. 3. Ken Bradley’s Understanding PRINCE 2 DedicationThis book is dedicated to the many clients and friends who over the past twodecades have put their trust and key projects into my hands, often for just the firstfew critical weeks of life and sometimes for support from cradle to grave. Thanksalso go to the “SPOCETTES” Carol and Livia who have used their charm andcharisma to ensure that this project was delivered on time, to the agreed plan andonly marginally over budget! Ken Bradley What Others Say About This Book“An excellent companion to the CCTA PRINCE 2 Reference Manual. The manyclear diagrams and supporting text answer the questions What should I do now? –and Why?” Martin Shepherd ICL HR Consultancy“This book provides a comprehensive and practical exposition of the PRINCE 2Method and truly lives up to its title. Ken Bradley’s practical experience ofmanaging projects, together with his understanding of the needs of ProjectManagers, whether new to the profession or old hands, gleaned from many yearsof providing consultancy and training is evident through the techniques and bestpractice tips that abound in this publication.” Dave Rose, Principal Consultant Project Management Devon IT Services 3
  4. 4. Ken Bradley’s Understanding PRINCE 2 LIST OF CONTENTSForeword ................................................................................................................................... 13Who This Publication Is Intended For ......................................................................................... 13Origins Of The PRINCE 2 Method .............................................................................................. 17The PROMPT Methodology ........................................................................................................ 17Government PROMPT................................................................................................................ 17The Standard PROMPT Lifecycle ............................................................................................... 18PROMPT Organisation - Stage Managers................................................................................... 18PROMPT Planning..................................................................................................................... 19The Enhancement Project And PRINCE...................................................................................... 19PRINCE 2 And Other Developments ........................................................................................... 20Introduction To PRINCE 2.......................................................................................................... 25Benefits Of PRINCE 2 ................................................................................................................ 25The Structure Of A PRINCE 2 Project......................................................................................... 26The Key Elements Contained In PRINCE 2 ................................................................................. 28The PRINCE 2 Processes............................................................................................................ 29The PRINCE 2 Components:....................................................................................................... 30The PRINCE 2 Techniques.......................................................................................................... 32The Organisation Component ..................................................................................................... 33The Project Board ...................................................................................................................... 34The Project Manager.................................................................................................................. 35The Team Manager..................................................................................................................... 35Project Resources And (Specialist) Teams................................................................................... 36Project Assurance....................................................................................................................... 36Project Support .......................................................................................................................... 37The Project Support Office.......................................................................................................... 37Summary Of The Organisation Component ................................................................................. 37 5
  5. 5. Ken Bradley’s Understanding PRINCE 2PRINCE 2 Planning.................................................................................................................... 38Products Or Deliverables And Related Activities........................................................................ 38Planning For The Delivery Of Specialist Products ...................................................................... 40Resource Planning & Reporting.................................................................................................. 41Quality Planning -BS/EN/ISO9001 ............................................................................................. 42Tolerance And Planning ............................................................................................................. 43The Controls Component ............................................................................................................ 44Management Controls ................................................................................................................ 44Project Initiation ........................................................................................................................ 44End Stage Assessment (ESA)....................................................................................................... 45Mid Stage Assessment (MSA) ...................................................................................................... 45Tolerance ................................................................................................................................... 46Project Closure .......................................................................................................................... 47Highlight Reports ....................................................................................................................... 48Stages......................................................................................................................................... 48Business Benefits And Risk Management..................................................................................... 49Planning For Quality.................................................................................................................. 50Quality Controls - Quality Review............................................................................................... 50Change Control.......................................................................................................................... 52Configuration Management ........................................................................................................ 52Filing Arrangements................................................................................................................... 53Software Support For PRINCE 2 ................................................................................................ 53Following This Introduction........................................................................................................ 54PRINCE 2 Organisation - Introduction ....................................................................................... 57Responsibilities In A PRINCE 2 Controlled Project.................................................................... 58The Project Board ...................................................................................................................... 58The Executive Role ..................................................................................................................... 59The Senior User Role.................................................................................................................. 596
  6. 6. Ken Bradley’s Understanding PRINCE 2The Senior Supplier Role ............................................................................................................ 59Responsibilities Of The Project Board Members.......................................................................... 59The Project Assurance Function ................................................................................................. 60Delegation Of Day-To-Day Project Assurance ............................................................................ 61The Project Manager.................................................................................................................. 61Team Manager(s) ....................................................................................................................... 62Responsibilities Of The Team Manager....................................................................................... 63Team Managers And Technical Stages ........................................................................................ 64Project Support .......................................................................................................................... 64Customer:Supplier Environment ................................................................................................. 65Developments On The PRINCE 2 Theme..................................................................................... 66The Supplier Project Board ........................................................................................................ 67Customer: Supplier Steering/Co-Ordinating Group..................................................................... 68Customer: Supplier Project Manager.......................................................................................... 69Customer:Supplier - Project Support .......................................................................................... 69Organising The Managing Of Programmes................................................................................. 69Programme Board, Programme Manager & Programme Support ............................................... 70User/Customer Group In A Programme Context ......................................................................... 71Individual Project Boards In A Programme Context.................................................................... 71Project Support & Programme Assurance................................................................................... 71Programme And Project Resources............................................................................................. 72Other Structures Based On PRINCE 2 ........................................................................................ 72PRINCE 2 Organisation - Summary........................................................................................... 74Planning - Introduction & Overview ........................................................................................... 76Project Level Plans..................................................................................................................... 77Product Breakdown Structure ..................................................................................................... 78Product Flow Diagram ............................................................................................................... 80PERT Network............................................................................................................................ 81 7
  7. 7. Ken Bradley’s Understanding PRINCE 2The PERT Logic Network & The Timed Network......................................................................... 81Earliest Start Gantt Plan ............................................................................................................ 82Resource Smoothing ................................................................................................................... 82Project Gantt Plan...................................................................................................................... 84Project Resource Reporting ........................................................................................................ 84Graphical Summary.................................................................................................................... 85Earned Value Analysis................................................................................................................ 86Risk Analysis .............................................................................................................................. 87Measuring The Business Benefits ................................................................................................ 88Project Plan Text........................................................................................................................ 89Management Stage Plans............................................................................................................ 89Team Plans ................................................................................................................................ 91Individual Plans ......................................................................................................................... 91PRINCE 2 Planning - Summary .................................................................................................. 91Introduction To Controls ............................................................................................................ 94Management Controls ................................................................................................................ 94The Project Initiation Meeting .................................................................................................... 95Project Initiation & The Project Initiation Document (PID) ........................................................ 96End Stage Assessment (ESA)....................................................................................................... 96Attendees At An End Stage Assessment........................................................................................ 97End Stage Assessment Agenda .................................................................................................... 97Mid Stage Assessment (MSA) ...................................................................................................... 98Tolerance ................................................................................................................................... 99Project Closure ........................................................................................................................ 102Highlight Reports ..................................................................................................................... 102Checkpoint Reports .................................................................................................................. 103Stages....................................................................................................................................... 103Management & Technical Stages .............................................................................................. 1078
  8. 8. Ken Bradley’s Understanding PRINCE 2Management Stages.................................................................................................................. 108Updating The Business Case..................................................................................................... 108Technical Stages....................................................................................................................... 109Handling The End Of A Management Stage .............................................................................. 109Stages - Summary ..................................................................................................................... 110Risk Management - Introduction ............................................................................................... 113Risk Ranges & Risk Factors...................................................................................................... 114Updating The Risk Analysis ...................................................................................................... 115Modifying The Risk Analysis Checklist ...................................................................................... 116PRINCE 2 &BS/EN/ISO9001.................................................................................................... 123Quality Management ................................................................................................................ 123Customer Quality Expectations................................................................................................. 124Quality Aspects For Suppliers & Sub-Contractors..................................................................... 124Quality Management - Summary............................................................................................... 125Configuration Management - Introduction ................................................................................ 129Configuration Management Techniques .................................................................................... 129CM Activities............................................................................................................................ 130Change Control - Introduction.................................................................................................. 135Project Issue............................................................................................................................. 135Off Specifications ..................................................................................................................... 136Request For Change ................................................................................................................. 136Change Control Forms And Documentation.............................................................................. 136Change Control - Summary ...................................................................................................... 137Introduction To Processes ......................................................................................................... 141The Processes........................................................................................................................... 141The PRINCE 2 Process Model .................................................................................................. 142Major Processes And Processes ................................................................................................ 143Structure Of The Individual Process Models.............................................................................. 145 9
  9. 9. Ken Bradley’s Understanding PRINCE 2Individual Process Summary Models........................................................................................ 147Starting Up A Project (SU) - Introduction ................................................................................. 151SU1 - Appointment Of A Project Board Executive And A Project Manager ................................ 152SU2 & SU3 - The Project Management Team ............................................................................ 153SU5 - The Project Approach: .................................................................................................... 156SU6 - The Initiation Stage Plan................................................................................................. 157Starting Up A Project - Summary .............................................................................................. 158Initiating A Project (IP) - Introduction ...................................................................................... 163The Project Initiation Document ............................................................................................... 163IP1 - Planning For Quality ....................................................................................................... 165IP2 - Planning A Project........................................................................................................... 166IP3 - Refining The Business Case & Risks................................................................................. 168IP4 - Setting Up Project Controls.............................................................................................. 169Project Board Controls ............................................................................................................. 169Project Manager/Team Controls: .............................................................................................. 170IP5 - Set Up Project Files ......................................................................................................... 171IP6 - Assembling The Project Initiation Document .................................................................... 173Approach To Assembling Or Producing The PID....................................................................... 174Initiating A Project (IP) - Summary........................................................................................... 175Directing A Project (DP) - Introduction .................................................................................... 181Management By Exception........................................................................................................ 182DP1 – Authorising Initiation..................................................................................................... 183DP2 – Authorising A Project..................................................................................................... 184DP3 – Authorising A Stage Or Exception Plan.......................................................................... 185Approval Of Exception Plans .................................................................................................... 186DP4 – Giving Ad-Hoc Direction ............................................................................................... 188DP5 – Confirming Project Closure............................................................................................ 189Summary Of The DP Process .................................................................................................... 19110
  10. 10. Ken Bradley’s Understanding PRINCE 2Controlling A Stage (CS) - Introduction .................................................................................... 197CS1 – Authorising A Work Package .......................................................................................... 199CS2 – Assessing Progress ......................................................................................................... 200CS3 - Capturing Project Issues ................................................................................................. 202CS4 - Examining Project Issues ................................................................................................ 203CS5 - Reviewing Stage Status.................................................................................................... 204CS6 - Reporting Highlights....................................................................................................... 205CS7 - Taking Corrective Action ................................................................................................ 207CS8 - Escalating Project Issues................................................................................................. 208CS9 - Receiving A Completed Work Package ............................................................................ 209Summary Of The Controlling A Stage Process........................................................................... 210Managing Product Delivery (MP) - Introduction ....................................................................... 215MP1 - Accepting A Work Package............................................................................................. 217MP2 - Executing A Work Package............................................................................................. 218MP3 - Delivering A Work Package............................................................................................ 219Managing Stage Boundaries (SB) - Introduction ....................................................................... 223Exception Plans........................................................................................................................ 224SB1 - Planning A Stage............................................................................................................. 225SB2 - Updating A Project Plan ................................................................................................. 226SB3 - Updating A Project Business Case................................................................................... 227SB4 -Updating The Risk Log..................................................................................................... 228SB5 - Reporting Stage End........................................................................................................ 229SB6 - Producing An Exception Plan.......................................................................................... 231Summary Of The Managing Stage Boundaries Process.............................................................. 232Closing A Project (CP) - Introduction ....................................................................................... 237CP1 - Decommissioning A Project ............................................................................................ 239CP2 - Identifying Follow-On Actions ........................................................................................ 241CP3 – Project Evaluation Review............................................................................................. 242 11
  11. 11. Ken Bradley’s Understanding PRINCE 2Summary Of The Closing A Project Process.............................................................................. 243Planning (PL) - Introduction.................................................................................................... 247PL1 - Designing A Plan ............................................................................................................ 249PL2 - Identifying, Defining And Analysing Products.................................................................. 250PL3 - Identifying Activities And Dependencies .......................................................................... 252PL4 - Estimating....................................................................................................................... 253PL5 - Scheduling ...................................................................................................................... 254PL6 - Analysing Risks............................................................................................................... 255PL7 - Completing A Plan.......................................................................................................... 256Summary Of The Planning (PL) Process ................................................................................... 257PRINCE 2 Filing Technique - Introduction ............................................................................... 261The Management File ............................................................................................................... 261Physical Filing Considerations ................................................................................................. 266Quality Review Technique - Introduction .................................................................................. 269Quality Assurance And Quality Control .................................................................................... 269What Is A Quality Review?........................................................................................................ 269Quality Reviews - Formal And Informal .................................................................................... 270People Involved ........................................................................................................................ 270The Quality Review Steps......................................................................................................... 271Step 1 - Preparation ................................................................................................................. 271Step 2 - The Review Meeting .................................................................................................... 272Step 3 - Follow-Up Of Review Meeting ..................................................................................... 273Summary Of The Quality Review Technique.............................................................................. 274Index ........................................................................................................................................ 27712
  12. 12. Ken Bradley’s Understanding PRINCE 2FOREWORDThis publication is based on the PRINCE 2 Project Management Methodology. It hasbeen produced to help anybody involved in a PRINCE 2 controlled project to understandthe approaches used in the Method.This re-print incorporates the additional material included in the new manual – “ManagingSuccessful Projects with PRINCE 2” published in October 1998.The book aims to fill the gaps present in the PRINCE 2 Method – in order to do thiscertain assumptions have been made and these are based upon my own experience andunderstanding of the practical use of PRINCE.I hope you will not only find this publication of practical use in managing your projectsbut will also enjoy reading and learning from it. If you have any questions or observationsabout the content of this publication, please contact me at SPOCE Project ManagementLimited direct at (UK +44) 01202-780740 (Telephone & fax) or E-Mail KGB@spoce.comKen BradleyFebruary 1999Who This Publication Is Intended ForPRINCE 2 is the UK Government standard for managing large projects and has beenwidely adopted as the standard for project management for all types of projects within theprivate and public sectors. PRINCE 2 was officially launched on 1 October 1996.The book is aimed at Project Managers, project management staff, and anyone needing toorganise, plan and control an undertaking using a structured project managementapproach.Although primarily a summary and interpretation of the PRINCE 2 project managementmethod, this publication provides an excellent start point for anyone wishing to understandthe principles and use of structured project management in any activity. It is also aninvaluable aid for anyone wishing to take the CCTA/APMG PRINCE 2 examinations. 13
  13. 13. Ken Bradley’s Understanding PRINCE 2 Chapter 1 UNDERSTANDING THE BACKGROUNDTO THE PRINCE METHODOLOGY 15
  14. 14. Ken Bradley’s Understanding PRINCE 2Origins of the PRINCE 2 MethodThe PRINCE Methodology is a development of the PROMPT Methodology (ProjectResource Organisation Management Planning Technique) originally formulated in the mid1970s. A private sector company, Simpact Systems Limited, evolved the PROMPTMethodology to provide a suitable framework within which to manage the strategy,feasibility study, development and support of Information Technology systems through astructured project management approach.The PROMPT MethodologyThe PROMPT Methodology comprised five major components:♦ PROMPT I - Strategic Planning♦ PROMPT II - System Development♦ PROMPT III - Operations, Maintenance and Enhancement♦ QSTAR Quality Assurance♦ PROMPT Software Support Tools (The PROMPT Aids).Government PROMPTIn the early 1980s, the UK Government published a requirement for a projectmanagement method to improve the management and control of government IT projects.Many different methods were proposed and evaluated, and the contract to license the useof the Method was awarded to Simpact Systems Limited.CCTA (Central Computer and Telecommunications Agency) acting for the UKGovernment commissioned some changes in the basic methodology. Chief amongst thesewas the incorporation of the quality assurance aspects into the PROMPT II Methodologyto provide a product that was to become referred to as “Government PROMPT”.Although CCTA licensed all the PROMPT Methodology, PROMPT II was the onlyelement fully implemented.The belief was that Government Departments were already well supported in theproduction of strategic plans, and that maintenance and enhancement aspects would beeasily handled providing development systems were properly supported by developmentand quality assurance documentation. PROMPT II was therefore considered to be the keyingredient for success. Government PROMPT, incorporating PROMPT II principles onlywas introduced into the major UK Government Departments in Spring 1983. 17
  15. 15. Ken Bradley’s Understanding PRINCE 2The Standard PROMPT LifecycleGovernment PROMPT had a number of deficiencies from the start; for instance, a pre-defined lifecycle provided the backbone for a PROMPT II project, but this caused someproblems with its view that IT projects broke down into standard stages of workaddressing Initiation, Specification, Design, Development, Installation, and Operation.Many projects did not conform to this formula and inconsistencies were encountered. Initiation Specification Design Development Installation Operation The PROMPT II “Planning” Stages The PROMPT II “Action” StagesFigure 1: The PROMPT Standard Six Stage LifecyclePROMPT Organisation - Stage ManagersThe PROMPT II Method made no mention of Project Managers, instead relying on aseries of Stage Managers, each responsible for a pre-defined stage within the standard sixstage lifecycle.The philosophy was that this left the way open to appoint the most appropriate individualto manage each Stage of the project. The Specification Stage managed by aUser/Customer, the Design Stage by a Designer/Analyst, the Development Stage by aTechnical Programmer and the Installation and Operation Stages by User/Customers.The Initiation Stage was typically managed by someone with sufficient technical expertiseto understand and plan the whole of the project.18
  16. 16. Ken Bradley’s Understanding PRINCE 2 Senior Management - Strategic Direction The Project Board Senior User Senior Technical Executive Assurance Stage 2 Manager Stage 4 Manager Stage 6 Manager Specification Development Operation Stage 1 Manager Stage 3 Manager Stage 5 Manager Initiation Design Installation Work Direction Administrative Support Project Assurance Team Project Resources & Development Teams * Business Assurance Co-ordinator * Technical Assurance Co-ordinator * User Assurance Co-ordinatorFigure 2: The PROMPT Organisation StructurePROMPT PlanningThe Government PROMPT Methodology also made no mention or use of Critical PathAnalysis, which was used extensively in major projects. In practice these omissions didnot cause real problems as training courses and consultancy support filled the gaps.However the methodology was perceived as being not quite complete, or indeed, relevantto many projects.The Enhancement Project and PRINCEDuring 1987, CCTA determined to update the Methodology by reflecting the actual usageof PROMPT II and by introducing modern project management ideas. These elementswere Product-based planning, formal Project Initiation procedures, a Project Manager role,sharper focus on Quality Management, and Open Life-cycle planning.Leading consultancy companies in project and quality management were contracted towork with the PROMPT User Group and CCTA to incorporate the changes. 19
  17. 17. Ken Bradley’s Understanding PRINCE 2CCTA were keen to place the enhanced method into the public domain, as an openmethod, in order to enable suppliers of major IT systems (and their component parts) toadhere to consistent standards when fulfilling UK Government contracts.The overall objective was to provide a high-level of consistency throughout governmentprojects and to improve project management generally.Meanwhile, LBMS (Learmonth & Burchett Management Systems) a major managementconsultancy company, who had developed SSADM (Structured Systems Analysis andDesign Methodology) under a CCTA contract, had acquired the PROMPT products andname from Simpact Systems (which had ceased its commercial operations) and waslicensing the methodology successfully to the public and private sectors.LBMS obviously could not agree to an enhanced version of PROMPT II being placed inthe public domain in direct competition with their own proprietary method, andnegotiations provided that the enhanced method be re-named PRINCE (Projects inControlled Environments) to meet this point.PRINCE was introduced in April 1989 with full documentation and formal entry into thepublic domain in January 1990. The PRINCE Methodology is now the UK GovernmentStandard for managing major projects. It has been widely adopted by private sectorcompanies both for use in government projects, and in many cases for their own internaluse. CCTA, with its collaborative partners (The Association for Project ManagementGroup, IBM UK Limited, and The Stationery Office) continues to pursue the acceptanceof PRINCE as “best practice” project management within the UK, Europe and worldwide.PRINCE 2 and Other DevelopmentsPRINCE 2 has now been developed, funded by CCTA and following extensiveconsultation with users and organisations over a two year period. PRINCE 2 is “Process-driven” (ie “what” and “why” but little in the way of “how”) addresses a wider base ofprojects (IT and non-IT), Programmes of Work, Smaller Projects, Customer:Supplier:issues and introduces changes to the PRINCE version 1 Organisation component.PRINCE 2 was formally launched by CCTA in London on 1 October 1996.CCTA are working in collaborative partnership with a number of organisations (IBM(UK), The Stationery Office and the Association for Project Management Group) topromote PRINCE. One of the partners, IBM (UK) Limited, has developed a softwaresupport product based on their existing Process Integrator application, which provides afull PRINCE 2 Environment, enabling the launch of specific software for planning, word-processing and other office applications.The package is particularly useful for managing the myriad of project documentation thathas to be created, updated, tracked and managed during the life of a project.With PRINCE 2, CCTA has launched an accreditation and certification scheme providinga vehicle for assuring users of PRINCE 2 that training and consultancy providers areregistered as competent and that training courses reflect a common syllabus withexaminations and certification at its conclusion.20
  18. 18. Ken Bradley’s Understanding PRINCE 2CCTA continue to support and develop the PRINCE 2 Method and a contribution is leviedfrom all those taking the APM Group Professional Examinations and registering as trainedPRINCE 2 Practitioners.Future plans include companion volumes covering the “softer” aspects of projectmanagement (leadership, delegation, appraisal etc) and Programme Management, RiskManagement, including examinations on these topics.Further information can be obtained from CCTA Information Services on telephone: (UK +44) (0)1603 704787 21
  19. 19. Ken Bradley’s Understanding PRINCE 2 Chapter 2UNDERSTANDING THE BASICS 23
  20. 20. Ken Bradley’s Understanding PRINCE 2Introduction to PRINCE 2PRINCE (PRojects IN Controlled Environments) is a structured method for effectivemanagement of any size or type of project. It is the standard method for use in UKGovernment Departments and is widely used in the private sector, NHS and LocalGovernment. A growing number of overseas Governments and multi-national companieshave adopted the method, or integrated it within their existing project managementapproaches. The Method is being promoted actively by the APM Group (APMG) as a“Best Practice” project management approach.Benefits of PRINCE 2There are a number of benefits to be gained from introducing and using a structuredapproach to project management; among the benefits of using PRINCE 2 are that it:♦ identifies management, technical (specialist) and quality Products or Deliverables andhelps ensure that they are produced on time and to budget;♦ focuses attention on the quality of Products or Deliverables;♦ separates the management and technical/specialist aspects of Organisation, Planningand Control;♦ facilitates control at all levels;♦ makes the project’s progress more visible to management;♦ provides a communication medium for all staff working on the project;♦ ensures that work progresses in the correct sequence;♦ involves senior management in the project at the right time and in the right place;♦ allows the project to be stopped and, if required, re-started completely undermanagement control, at any time in the project’s life;♦ is in the Public Domain and requires no license fee;♦ has a well established User Group dedicated to the support, promotion andstrengthening of the method. 25
  21. 21. Ken Bradley’s Understanding PRINCE 2The Structure Of A PRINCE 2 ProjectWithin a PRINCE 2 project environment, each project which is undertaken must:♦ address all the processes concerned with establishing an effective project managementenvironment;♦ have a stated business case indicating the benefits and risks of the venture;♦ demonstrate a properly defined and unique set of Products or Deliverables;♦ have a corresponding set of activities to construct the Products or Deliverables;♦ identify appropriate resources to undertake the activities;♦ have a finite life-span; suitable arrangements for control;♦ identify an organisation structure with defined responsibilities;♦ include a set of Processes with associated techniques which will help plan and controlthe project and bring it to a successful conclusion.A PRINCE 2 project is divided into a number of Management Stages, each forming adistinct unit for management purposes. Like the project, a Stage is driven by a series ofProcesses, has a defined set of products and activities, a finite life-span, control elements,and an organisational structure. The delivery of these products, to the agreed qualitystandards, marks the completion of the Management Stage. PRINCE 2 defines:♦ the organisation of the project and its stages;♦ the processes which drive the undertaking;♦ the structure and content of the project plans;♦ basic project management techniques;♦ a set of controls which ensure that the project is proceeding to plan.These, together with the products of the project and the activities which produce them, theproject business case, all encompassed within a Quality Management framework, makeup the PRINCE 2 environment.All products of a PRINCE 2 project are filed within a defined structure - the"Configuration". Management, Specialist and Quality Products are identified and filedseparately.The PRINCE 2 framework provides the flexibility to set stage boundaries which areappropriate to the needs of the project. Management Stage boundaries are chosenaccording to:26
  22. 22. Ken Bradley’s Understanding PRINCE 2♦ the sequence of production of Products/Deliverables;♦ the grouping of Products into self-contained sets or associated Processes;♦ natural decision points for review and commitment of resources;♦ the risks and business sensitivity of the project;♦ the completion of one or more discrete Processes.The project stages correspond to the steps in the natural project life-cycle towards theeventual outcome. Thus the stage boundaries are normally defined to correspond to thecompletion of the major Products to be built and key decisions concerning commitment ofresources that need to be made. Whatever the nature of the project, it is advisable todefine one or more planning and/or definition processes in the early part of the projectslife. PRINCE 2 provides two Processes to cater for this - “Starting Up A Project (SU)”(where the early foundations for decision support are laid) and “Initiating A Project (IP)”(where senior management are invited to commit to the undertaking and a baseline isproduced. The project is triggered by a “Project Mandate” which might take any formfrom an informal request by a sponsor to a formal recommendation from a report.PRINCE 2 recognises that few projects will be undertaken entirely in isolation. Theoutputs from one project may be used as input by another project. There may be otherdependencies between projects, such as the use of shared resources. PRINCE 2, therefore,provides a mechanism for defining the boundary of a project and its relationship to otherprojects. A high-level context diagram is a useful mechanism for defining theserelationships. Key User Groups Current System Business Processes Cleaned Data The Project Under Development Bullet List of the Main Functions to be produced, developed or bought-in Information Parts Requisitions MIS Project Central Logistics ProjectFigure 3: Scoping Diagram showing Inputs and Outputs for the ProjectThe Scoping Diagram illustrated above is particularly useful when planning and managinga Programme of Work where individual projects inter-relate with each other and it isnecessary to ensure that expected outputs from individual projects are anticipated andplanned for. When all individual project Context Diagrams are assembled to complete the 27
  23. 23. Ken Bradley’s Understanding PRINCE 2programme “jigsaw” it will be apparent which outputs and inputs do not match, andappropriate action can be taken by the Programme Director/Manager.The Key Elements Contained In PRINCE 2To understand the content of the PRINCE 2 Project Management Method, the followingmodel showing the key elements should be studied: ORGANISATION STANDARDS & APPROACHES; BUSINESS STANDARDS & ETHICS QUALITY MANAGEMENT SYSTEM (QMS) (ISO9001) TECHNIQUES COMPONENTS PROCESSES * Product-Based Planning * Organisation * Starting Up A Project (SU) - Product Breakdown - Structure & Role Descriptions - Product Description * Initiating A Project (IP) - Product Flow Diagram * Planning - Products, Activities, Resources * Directing A Project (DP) * Quality Reviews * Controls * Controlling A Stage (CS) - Preparation, Review, - Management, Team, Quality Follow-up * Managing Product Delivery (MP) * Stages - Management & Technical Stages * Managing Stage Boundaries (SB) * Change Control - Capture, Logging, * Management of Risk * Closing A Project (CP) Assessment, Decision - Risk Assessment & Management * Planning (PL) * Quality in a Project Environment * Project Filing Structure - Quality Requirements & Response - Management File THE BUSINESS CASE - Specialist File * Configuration Management * Business Benefits - Quality File - Tracking Products & Documentation + Existing Organisation * Change Control RISK MANAGEMENT Techniques already used - Capture & Assessment * Risk Analysis & Actions within the host organisation * Risk Management PRINCE 2 SOFTWARE SUPPORT ENVIRONMENT EXPERIENCE, BEST PRACTICE, COMMONSENSEFigure 4: Summary Model of the PRINCE 2 MethodThe PRINCE 2 methodology applies three key elements to each project and to theManagement Stages within a project. These are summarised in the above Model anddescribed, briefly, in the following tables. The three elements are the Processes whichdrive the project management, Components and Techniques, which are used by each of theProcesses to effect the management of the project.28
  24. 24. Ken Bradley’s Understanding PRINCE 2The PRINCE 2 ProcessesDESCRIPTION REF EXPLANATIONStarting Up A Project SU Establishes the Objectives and Approach to the Project; Set up the Project Management Team; Plans for the Initiation Process. This is a pre- project Process, which looks to answer the question “do we have a worthwhile and viable project?” before asking for commitment of resources to set up a project environment.Initiating A Project IP Plans the whole Project in terms of its Products, Activities, Resource Usage and Quality; Sets the baseline for the Business Benefits & Risks.Directing A Project DP Provides Authorisation for work to be carried out and Resources to be committed. Authorisation for Project Initiation and Project Closure and, in some cases, its premature termination. The Process is “owned” by the Project Board – the ultimate authority for the Project - accountable for its overall success.Controlling A Stage CS The basic day-to-day project management Process - authorising work to create or change Products (or Deliverables), collecting and reflecting “actuals”, assessing progress and reporting to senior management. Capturing proposed changes and errors and escalating these, where appropriate to management.Managing Product Delivery MP The main “workshop” for the project where the majority of resources are consumed. This Process is where the Products of the Project are created. Progress reports (Checkpoint Reports) are provided to the Project Manager. Quality Review and Delivery of Products occurs here.Managing Stage Boundaries SB Reporting on the achievements of the Current Management Stage and the impact on the overall Project Plan and Business Case. Planning the Next Stage (Products, Activities, Resource Usage). Putting together Exception Plans when the Management Stage has suffered a significant departure from its approved plan.Closing A Project CP Preparation for closing the Project in an orderly way. Customer sign-off, preparation of an End- Project Report and identification of Lessons Learned and Follow-on Recommendations. Planning for a Post-Project Review.Planning PL Used by all the other Processes - a common-to- all Process featuring the design of the plan and its creation. 29
  25. 25. Ken Bradley’s Understanding PRINCE 2The PRINCE 2 Components:DESCRIPTION USED EXPLANATION BYOrganisation SU Organisation Structure + Role Descriptions. SB Predominantly used in the “Starting Up A Project” Process where the Executive and Project Manager are appointed in the first Process, and the Project Management Team is designed and appointed. The Project Management Team is reviewed at the end of each Management Stage within “Managing Stage Boundaries”.Planning SU All Processes use the Planning Component. The IP Initiation of the project is planned during CS “Starting Up A Project”; the project itself is MP planned in “Initiating A Project”; Stage plans SB are prepared in “Managing Stage Boundaries”; CP and Product planning is carried out in PL “Controlling A Stage” and “Managing Product DP Delivery”. Follow-on actions, including preparation of a Post-Project Review Plan are put together in “Closing A Project”. “Directing A Project” uses the approved plans throughout to confirm the required progress.Controls SU All the Processes use the Controls Component. IP The “control” Processes which make particular CS use of this Component are “Initiating A Project” MP (which sets up the overall project control SB structure); “Controlling A Stage” (which uses CP Checkpoint Reports to capture progress, and PL records actual usage of resources. Highlight DP Reports are used to inform the Project Board of progress); “Managing Product Delivery” generates Checkpoint Reports for control purposes. Stage approval is handled by “Managing Stage Boundaries” where Management Stages are approved via End Stage Assessments. This Process also uses Exception Reporting and Planning to control significant departures from plan. “Directing A Project” is the Process within which overall authorisations are made; this Process uses the key controls of End Stage Assessment, Tolerance, Project Initiation and Project Closure.30
  26. 26. Ken Bradley’s Understanding PRINCE 2The PRINCE 2 Components (Continued)Stages IP Management Stages provide the key control for SB the Project Board and are mainly used by CS “Directing A Project” when authorising DP commitment for expenditure. Technical Stages often overlap and run in parallel; Management Stages may not. The key control Processes use Management Stages in planning and control of the project.Management of Risk SU Risk Analysis is carried out initially in “Starting IP Up A Project” when the Project Brief is created. SB This is refined in “Initiating A Project” where DP the Business Case for the project is established. The Risk Analysis is updated during “Managing Stage Boundaries” to provide the basis for decision support for the Project Board when they review the project at the End Stage Assessment in “Directing A Project”. No specific risk analysis tools or techniques are recommended. Management of risk has close ties with the Business Benefits which are measured and presented as the Business case for the project. Both the Business Case and the Risk Analysis are up-dated, minimally, at the end of each Management Stage.Quality In A Project SU The Customer’s Quality Expectations are firstEnvironment IP identified in “Starting Up A Project” and quality CS aspects are planned in “Initiating A Project”. MP When the project is approved, “Controlling A PL Stage” and “Managing Product Delivery” enable specific Quality Criteria to be set for each Product or Deliverable via Product Descriptions described in the “Planning” Process.Configuration IP Configuration Management addresses the properManagement CS safeguarding and management of Products or MP Deliverables and their associated documentation. CP “Initiating A Project” sets up the Project Files and “Controlling A Stage” and “Managing Product Delivery” executes the Configuration Management arrangements. Project Files are archived in “Closing A Project” mainly for audit purposes.Change Control CS Managing proposals for change is an important aspect of project management and the Process “Controlling A Stage” is where such proposals are captured. 31
  27. 27. Ken Bradley’s Understanding PRINCE 2The PRINCE 2 TechniquesDESCRIPTION EXPLANATIONProduct-Based Planning A “Product Breakdown Structure” which identifies the Products or Deliverables to be produced during the project. A “Product Description” for each Product identified in the Product Breakdown Structure, which defines and specifies each Product; a key feature of the Product Description is the Quality Criteria used to ensure that the Product is indeed a “Quality Product” that conforms to its requirements. A “Product Flow Diagram” which shows the relationship that each Product has with others and external entities; the Product Flow Diagram must “balance” with the Product Breakdown Structure.Quality Review Technique Used for measuring a Product or Deliverable against its published Quality Criteria. PRINCE 2 recognises Informal Quality Reviews (typically “Desk Checks”, Tests or Visual inspections) and Formal Quality Reviews (which are more structured “Walkthroughs” of a Product or Deliverable). Formal Quality Reviews comprise three distinct Phases - Preparation, The Review Meeting and Follow-Up.Change Control Every project must be able to accommodate changes required by the customer or anyone else who has an interest in the project’s outcome. All suggested changes, identified errors and departures from the agreed Specification must be captured as “Project Issues, logged, analysed for technical, customer and business impact, and a decision made on whether to accept or reject the Issue.Project Filing A suitable filing structure is suggested; this comprises a “Management File” made up of one Project File and a series of Stage Files - one for each of the Management Stages of the project. A Specialist File housing the documentation relating to the technical aspects of the project and a Quality File housing the Quality Review documentation and the Project Issues complete the structure.More on the PRINCE 2 ProcessesThe eight major Processes state the minimum content that can be expected to be found ina PRINCE 2 compliant project. Exactly how the Processes are addressed within anyproject is the responsibility of the organisation’s senior management, represented by theProject Board, and the Project Manager, but the method requires that each of the eightProcesses is reflected within the project one way or another.All the Processes link to Components and Techniques some of which are described within32
  28. 28. Ken Bradley’s Understanding PRINCE 2the method. It is anticipated that most organisations will already be using some specificTechniques and might wish to incorporate additional Components reflecting their businessenvironment and culture. PRINCE encourages this where they provide value to themanagement decision making process.Each Process is defined in the following terms:♦ The Fundamental Principles that underpin the Process;♦ The Context within which the Process operates;♦ An Overview of the Process;♦ Responsibilities identifying accountability for the Process;♦ The Information Needs required for the Process to function effectively;♦ The Key Criteria which will influence the success or failure of the Process;♦ Hints and Tips for carrying out the Process in the best way.♦ Major Processes have an additional “Scalability” heading to help with scaling downeach Process for smaller, lower risk projects, where this is required by senior managers.The Process-based approach is a powerful feature in PRINCE 2 and is the area which mostdifferentiates it from version 1 of the method. The flexibility of the method is, however,underlined by allowing implementing organisations to choose their own destiny in termsof identifying how to meet the requirements of any given Process. In most organisationsalready operating successful project management systems there will be little need to makechanges to the way they are operating, provided effective project management proceduresare already in place.The Organisation ComponentThe organisation and effective use of people assigned to manage a project needs to beconsidered from the view point both of the specialist skills they bring to the project andtheir individual personalities.Responsibilities need to be defined within a team structure to ensure that management isboth efficient and responsive, and that individuals understand exactly what is expected ofthem. Within PRINCE 2, responsibilities are defined in terms of roles, rather thanindividual’s jobs. Assignment of roles to individuals is a decision for each Project Boardto take in the light of organisational circumstances, and the same individual may beassigned to more than one role, or to different roles at different stages of the project.Three roles/interests must always be represented on any PRINCE 2 project – Business,User, and Supplier. 33
  29. 29. Ken Bradley’s Understanding PRINCE 2 Corporate or Programme Management The Project Board Senior User Senior Supplier Executive Project Assurance Project Manager Project Support Team Manager Team Manager Team Manager Project Resources & TeamsFigure 5: The PRINCE 2 Organisation StructureThe Project BoardEvery PRINCE 2 project will have a Project Board appointed. The Project Board is theultimate authority for the project and is normally appointed by Corporate or ProgrammeManagement to take overall responsibility and control of a PRINCE 2 project. The ProjectBoard consists of three senior management roles, each representing major project interests.♦ Executive: appointed by Corporate/Programme Management to provide overallproject guidance and assessment throughout. The Executive represents the interests of theCustomer and the Business and has overall responsibility for the project.♦ Senior User: representing users (and, where appropriate, Customers) of the outcomeor the major products from the project.♦ Senior Supplier: representing areas which have responsibility for providing thespecialist “know-how” and/or committing Supplier resources for the solution. The SeniorSupplier might be drawn from an external, commercial, organisation or from internalsources responsible for delivering the specialist “End Product” to the customer (or amixture of both).34
  30. 30. Ken Bradley’s Understanding PRINCE 2There is a requirement within the Method to have a Project Board function and this cannotbe eliminated or delegated (although the terminology may be changed to suit theorganisation’s culture, for example “The Project Authority”). The Project Board’saccountability for Project Assurance cannot be delegated although the day-to-day work ofProject Assurance can if Project Board members do not have the time or expertise to carryout the tasks involved.The Project ManagerA Project Manager will always be appointed to assume day-to-day responsibility forplanning and management of the project throughout all its Management Stages. TheProject Manager takes direction from the Project Board and is responsible for managing,on behalf of the Project Board, the Processes, planning and delivery of Products for theproject, on-time, within budget, meeting the specialist/technical and quality criteria agreedwith the Project Board.As with the Project Board, the role of Project Manager is a required role within theMethodology and cannot be shared, delegated or eliminated.The Team ManagerIn a large or complex project, one or more Team Managers may be assigned theresponsibility for ensuring that the products of one or more particular Technical, orSpecialist, Stages of work are planned, controlled and produced on schedule, to thedefined and agreed quality standards, and within budget. Project Manager Project Support Team Manager Team Manager Team Manager Project Resources & TeamsFigure 6: Project Manager and Team Manager RelationshipsThe Team Manager role is optional and will only be present in large projects or where theProject Manager lacks the specialist skills to plan and control specific parts of the project. 35
  31. 31. Ken Bradley’s Understanding PRINCE 2Project Resources and (Specialist) TeamsThe Project and/or Team Manager have responsibility for Teams of specialist staff, taskedto carry out the activities and produce the Products of the stage. The team organisation,responsibility definitions and the allocation of these responsibilities to individuals willdepend upon the size and nature of the project and the skill mix available. PRINCE 2recognises the need to establish Team Manager roles where appropriate;Project AssurancePRINCE 2 separates the Project Assurance function from the Project Support function.The Project Board have responsibility and accountability for Project Assurance.Depending on the size, scope, risk and profile of the project, and their own knowledge,skills and time available, they may choose to delegate responsibility for overseeing day today Project Assurance to others within the organisation. However, accountability forProject Assurance rests with the Project Board and they are not able to delegate this.Project Assurance may not be delegated to the Project Manager or to Team Managers. The Project Board Senior User Senior Supplier Executive User Assurance Specialist Assurance Business Assurance Project Assurance Figure 7: Project Board and Project Assurance FunctionsAlthough not specifically separated out in the PRINCE 2 Method, Project Assurance canbe found in two distinct forms:♦ External Assurance to confirm that the project is following overall and corporatestandards (eg the published Quality Management System, or particular accountingconventions) and the organisation can be expected to have an audit function already inplace to check these aspects.♦ Internal Assurance to verify that the project is delivering Products or Deliverablesthat meet the agreed Quality Criteria and that internal project standards are beingfollowed. Internal Assurance is ultimately the responsibility of the Project Board.36
  32. 32. Ken Bradley’s Understanding PRINCE 2Project SupportWithin PRINCE 2, Project Support, on a formal basis, will only exist where there is aperceived need for it. A Project Manager may well find that the Project Board see noscope for any administrative support, and that any day-to-day assistance might need to beon an “ad-hoc” basis. Project Manager Project SupportFigure 8: Project Manager and Project Support RelationshipsWhere a project does warrant the appointment of a Project Support function, theindividual(s) selected will report directly to the Project Manager. Incidental support forthe Team Managers, where appointed, and Team resources will normally form part ofProject Support’s responsibilities.The Project Support OfficeA Project Support Office might well evolve in a Programme or multi-projectenvironment, to support a number of individual projects. The methodology supports thepossibility of a transition from several Project Support individuals to a central ProjectSupport Office where the number of projects under development warrants it. The resultantProject Support Office will be able to provide a centre of expertise for all projectmanagement aspects within the organisation/site, effectively delivering an internalconsultancy service where required by Project Board members, Project Managers andproject team members.Summary of The Organisation ComponentIn the final analysis, it is the people who are responsible for the management of theproject and the creation of its deliverables who have its success in their hands. Cleardefinition of responsibilities and a tenacious commitment to achieving agreed goals willalways be the predominant factor in success.The PRINCE 2 Method must always be tuned to suit the implementing organisation’sexisting standards, business approaches, culture and people; the latter two are arguablythe most important. 37
  33. 33. Ken Bradley’s Understanding PRINCE 2PRINCE 2 PlanningEstimating, planning and re-planning are constant and key activities when managing anyproject. PRINCE 2 provides a structure for preparing and maintaining plans at appropriatelevels throughout the life of a project. Plans are prepared for the Project as a whole, foreach stage within the project and, optionally, for the teams’ work within eachManagement Stage. There is also an Exception Reporting and Planning process to handledivergences from the original plan. The PRINCE 2 method include a Technique forProduct-Based planning incorporating Activity planning, Resource reporting and Qualityplanning.Products or Deliverables and Related ActivitiesPRINCE 2 provides a set of planning techniques which give structure to the project. Thekey to PRINCE 2 planning is the identification and definition of the Products required.From this comes an analysis of the work (ie the activities) required to generate theseproducts, and the sequencing of the work.PRINCE makes a distinction between Management Products and Activities, SpecialistProducts and Activities, and Quality Products and Activities. This is partly because theseare usually the concern of different groups of people, but also to ensure that managementactivities are not overlooked in planning and estimating. The Plan Text provides a high-level, overall view of Plan the plan, summarising its key features Text Product Identifying the Products/Deliverables that will be Breakdown produced by the Project. The Products will be categorised Structure under the headings of “Specialist”, “Management”, and “Quality” Products. Describing the Products/Deliverables that will be Product produced by the Project. There is a prescribed format Descriptions for Product Descriptions Describing the relationships that exist between Product each Product/Deliverable, and external entities. Flow Diagram PERT or Showing the relationships that extist between the Activities that will be undertaken Activity to create the Products identified in the Product Breakdown Structure. Network Gantt Derived from the PERT Network, this shows when Activities are or planned to start and end. Major Review points (End Stage Timescale Assessments) are also shown on this plan. PlanFigure 9: PRINCE 2 Plans Structure38
  34. 34. Ken Bradley’s Understanding PRINCE 2Management activities are concerned with planning, monitoring and reporting the work ofthe project, in both normal and exceptional situations. They produce ManagementProducts in the form of plans, reports and other control documents. Management activitiesinclude the planning and control of all specialist activities on the project. Althoughinfluenced by the specialist content, a similar pattern of management tasks can beexpected to be present in any PRINCE 2 project.Conversely, the Specialist activities undertaken by a project are determined entirely by thescope and objectives of the project. The Specialist activities describe the work needed toproduce the Specialist Products required from the project.The Specialist Products required by the user/customer are identified and defined at thestart of the project by the Project Manager and accepted by the Project Board. AdditionalSpecialist Products may be defined by the strategy appropriate to a particular ManagementStage of the project; specialist activities may also be prescribed by an organisation’s ownparticular technical strategy. PRINCE 2 therefore acknowledges the need for flexibility inthe selection and definition of Specialist activities and the corresponding Products. Completed Feasibility Study Management Products Specialist Products Quality Products MP01 - Project Initiation Document MP02 - Stage Plans FS 01 - Business review MP03 - Lessons Learned Log FS02 - Problem Definition QP01 - Product Descriptions MP04 - Risk Log FS03 - Options Identified & Agreed QP02 - Quality Review Documentation MP05 - Business Case FS04 - Options Appraised QP03 - Project Issues Log MP06 - Product Checklist FS05 - Selected Option Agreed QP04 - Quality Log MP07 - Highlight Reports FS06 - Final Report QP05 - Configuration Management MP08 - Project Start Notification MP09 - Project End Notification MP10 - Project Filing Structure The Technical Management Standard for the Project The Project Management The Quality Management Standard for the Standard for the Project ProjectFigure 10: Management, Quality and Specialist Products (For A Typical Feasibility Study)Quality activities may be performed by anyone who is able to make a contribution to theProduct under review. Individuals within the project and host organisation as well aspeople external to the organisation are all appropriate. Quality activities must be plannedfor early in the life of the project.The PRINCE 2 Product planning techniques require every project to be described and 39
  35. 35. Ken Bradley’s Understanding PRINCE 2defined in terms of its Products or Deliverables. This is a very effective way to ensure fullunderstanding of what is required and to ensure that, as far as possible, all resourceconsuming activities are related to one or more required Products.Planning for the Delivery of Specialist ProductsPRINCE 2 Plans are concerned with the Products to be delivered and with the activitiesnecessary to ensure that these Products emerge on time and to the required qualitystandards.The project Products are identified as a first step in Product-Based Planning; definition ofeach product (via the PRINCE Product Description) allows its make-up and qualityrequirements to be documented and properly understood. A Product Breakdown Structureillustrates the hierarchical make-up of the complete set of project products and a ProductFlow Diagram provides a view of the relationship each product has with others, within andoutside of the project. FS01 Solution Providers Strategy Plan Business Review FS02 Problem Definition FS03 Options Identified & Agreed FS04 Options Appraised FS06 FS05 Final Report Selected Option AgreedFigure 11: Product Flow Diagram (For A Feasibility Study)The Project Timescale or Gantt Plan charts the major activities of the project. It is usuallyderived from the PERT (Programme Evaluation and Review Technique) or ActivityNetwork which shows the relationships that exist between project activities. It is used inconjunction with a Project Resources Report to monitor progress on the project as a whole.It also addresses planning requirements related to Quality Control and ConfigurationManagement. A Stage-level Gantt (or time-scale) Plan shows the products, activities andquality controls for each stage of the project. The Stage-level Gantt Plan is produced andapproved at the end of the previous stage (the plan for the first stage is prepared with theproject plan).40
  36. 36. Ken Bradley’s Understanding PRINCE 2Additional, lower-level Gantt Plans can be expected to exist in most projects, to give adetailed breakdown of particular major activities These are termed “Team Plans”. Initiate Specify Design Build Test Train Handover Management Management Management Stage 1 Stage 2 Stage 3Figure 12: Gantt Plan (Time-scale Plan)Lower level Plans (or Individual Work-to Lists), if required, are derived from the Stageand Team Plans to allocate detailed activities (and Products/Deliverables) to particularmembers of a Specialist Stage Team. Although this level of plan is not formally includedin PRINCE 2 they may be utilised if the size and/or complexity of the project requirestheir production.Resource Planning & ReportingResource requirements are concerned with managing the funding and effort resources ofthe project. Specific resource plans are not produced for PRINCE 2 controlled projects, asthe method assumes that a software planning tool will be used. Where this is the case,relevant reports on planned and actual resource usage can be drawn from the Project Planin the form of a “Resources Report” as and when required.Where a software support tool for planning is not in use (for example in the case of a lowcost, short duration, low risk project) the format for a resources plan or report shown infigure 13 may be of use. Even where a software planning tool is in use, the presentation ofthe information might well benefit by adopting the format shown in figure 13 as it reflectsthe type and level of information required by the Project Board in reaching a suitablebusiness decision.It is the decision-support information about the requested commitment of resources that isof most use to Project Board members in reaching their decision to start or continue withthe project and careful thought must be given as to the most appropriate presentation of thedata. 41
  37. 37. Ken Bradley’s Understanding PRINCE 2 Stage 1 Stage 2 Stage 3 Plan Actual Plan Actual Plan Actual EFFORT (Staff Weeks) Skill Types Customers Engineers IT Analysts Others COSTS (£K) Skill Types Customers Engineers IT Analysts Others Equipment Fixed Price Elements Total Stage Costs Total Project CostsFigure 13: Typical Project Resources Report (or Plan)The standard Resources Report drawn from any software-driven Project Plan will identifythe type, amount and cost of the resources required by the project related to eachManagement Stage of the work. It will also identify equipment, building, and fixed-pricecosts associated with the project. The intention is to provide a complete resource andfinancial picture of the undertaking.A more detailed Resources Report, at Management Stage Level identifies the resourcesrequired by the particular stage. It defines the budget required by the stage and is used toreport actual expenditure and resource usage against plan More detailed Resource Plans atthe Team Level will be produced when required, to plan and control a particular majoractivity, and the associated team work-plans and Products.Quality Planning - BS/EN/ISO9001Action must be taken at project planning time (within the “Initiating A Project (IP1)”Process) to ensure that the project can deliver its Products to the required quality standards(the Customers Quality Expectations) required by the customer. Quality Criteria must bedefined and agreed, and incorporated into a Product Description for each major Productidentified; a Project Quality Plan must be defined, published and adopted; QualityReview procedures must be established and staff trained; review activities must beproperly resourced. Whatever action is proposed to build quality into the project, themeasures must be consistent with any published Quality Management System (QMS) thatis already in effect.PRINCE 2 has been designed to comply with the BS/EN/ISO9001 Quality ManagementStandard and the method contains a section relating its content to each section of the ISOStandard. BS6079, the Project management Standard, is also reflected within PRINCE 2.ISO9001, BS6079 and PRINCE 2 are all Process-driven; the foundation for quality and42
  38. 38. Ken Bradley’s Understanding PRINCE 2effective, modern project management is therefore integral and inherent in PRINCE 2.The results of the quality planning activity must be integrated into the timescale andresource plans at each level. Just as quality must be built into the Products, so mustquality control be built into the plans. Project Plan (Mandatory Plan) Stage Plan Stage Plan Stage Plan Team Team Team Team Team Team Plan Plan Plan Plan Plan Plan Project Resources Report (Effort, Costs, Equipment, Direct Costs)Figure 14: PRINCE 2 Planning Levels - Project, Stage & Team♦ The Project Level plan (required) sets the overall quality approach for the entire project. It defines the standards to be followed and the quality criteria for the major products. It also identifies external constraints that may apply to the project, such as a specific Configuration Management Method.♦ The Stage Level plan (required) identifies the quality criteria, methods and review guidelines for each Product produced during the stage.♦ A Team plan (optional) might be required for specific individual activities such as carrying out interviews within a particular user/customer area.The Project Manager is responsible for deciding whether any plans below stage-level arerequired; this decision will be endorsed by the Project Board at the Project Initiation orEnd-Stage Assessment meeting.Tolerance and PlanningThe Project Board Executive sets tolerances for Stage Plans. These define the limits oftime-scale and cost (or sometimes effort) within which the Project Manager can operatewithout further reference to the Project Board. Tolerance is variable and will be assignedto each Management Stage to reflect the respective business risk, but a general rule of 43

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