Sticking to Business; the Importance of the PRINCE2 Business Case

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Presentation slides from webinar focussing on the purpose and value of the PRINCE2 Business Case for successful project management.

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  • Susan Weese, PgMP, PMP, PRINCE2, MSPM
    Susan is a management consultant, curriculum designer, and professional speaker specializing in project management and requirements development process development and implementation for complex information technology projects. She started her work career as a software engineer designing and developing complex mathematical algorithms for satellite and radar systems. Halfway through her work life, Susan crossed to the dark side of technology and became actively involved with managing programs, projects, large consulting organizations, and business processes. She is still having a blast and has never looked back.
    Susan founded Colorado-based Rhyming Planet, Inc. in 2000 to motivate, lead, and enable technical and business professionals to accomplish their program and project goals. Susan is also an adjunct faculty member at Colorado State University, delivering courses on project management and the underlying competencies that make good managers into great managers. She is currently a PRINCE2 assessor for the APMG-US, auditing global training organizations and instructors developing and delivering certification courses in this project management methodology.
  • Please run a real-time poll of attendees asking them if they have the PRINCE2 Foundation qualification, Foundation and Practitioner or neither one. Be sure to post the results so everyone can see them before we go any further. Thanks!!
  • The PRINCE2 method addresses project management with four integrated elements of principles, themes, processes and the project environment:
    1. The Principles - These are the guiding obligations and good practices which determine whether the project is genuinely being managed using PRINCE2. There are seven principles and unless all of them are applied, it is not a PRINCE2 project.
    2. The Themes - These describe aspects of project management that must be addressed continually and in parallel throughout the project. The seven themes explain the specific treatment required by PRINCE2 for various project management disciplines and why they are necessary.
    3. The Processes - These describe a step-wise progression through the project lifecycle, from getting started to project closure. Each process provides checklists of recommended activities, products and related responsibilities.
    4. Tailoring PRINCE2 to the Project Environment - This chapter addresses the need to tailor PRINCE2 to the specific context of the project. PRINCE2 is not a 'one size fits all' solution; it is a flexible framework that can readily be tailored to any type or size of project.
  • Continued business justification
    Learn from experience
    Defined roles and responsibilities
    Manage by stages
    Manage by exception
    Focus on products
    Tailor to suit the project environment
  • Ensures that participants focus on the viability of the project in relation to its Business Case objectives - rather than simply seeing the completion of the project as an end in itself.
    A PRINCE2 project has continued business justification. This means that there is a justifiable reason to start a project, this reason remains valid throughout the life of the project and the justification is documented and approved.
  • You can’t justify your project if you don’t define the business benefits that the project and its outcomes bring to the organization. The PRINCE2 Business Case documents the business justification for your project and provides a checkpoint for determining if your project is staying aligned to its business objectives and benefits.
  • Apply the content and intent of the PRINCE2 Business Case on your projects – content.
  • Controlled Start
    The controlled start to a project includes the pre-project activities where we determine if this is a viable and worthwhile project for the business. It also covers the project initiation, where we do more detailed planning for our overall project and for the next detailed project stage. At the end of the controlled start activities, we should have our project scope finalized, business justification in place, and the high-level project plan built. The project team should be ready to get to work.
    Controlled Middle
    The controlled middle of a project is where the technical work gets done, one stage or phase at a time. The project manager is using the plan to measure and monitor project performance and to control what is taking place. This is “Management by Walking Around” (MBWA) where we are into everything – regular status, informal conversations, checking the health of the project, dealing with stakeholders, forecasting future performance, and dealing with issues and risks.
    Controlled End
    A controlled end to a project is when we are wrapping up a job well done. This can also take place if our project was prematurely terminated for one reason or another, hopefully a rare event. We are taking stock of achievements, reporting on the effort, ensuring objectives and acceptance criteria are met and transitioning the final product of our project into its operational life.
    The PRINCE2 Business Case is an important component of each step along the way – start, middle and end. Let’s take a look at each high-level piece of the project life cycle and talk about how the Business Case and its contents are created, updated and used by a PRINCE2 project manager.
  • Define the role of the Business Case in project start up and initiation.
    Created at the start of a project, the Business Case justifies initial and continuing investment in a project. It allows the PRINCE2 project management team to judge if a project is desirable, viable and achievable at any point in time.
  • Basic outline of contents for the PRINCE2 Business Case – let’s step through each item briefly.
    Identify business benefits
    Select objective measures that provide the benefits
    Collect baseline measures from which benefits will be quantified
    Decide how, when and by whom the measures will be collected
  • Controlled Start
    The controlled start to a project includes the pre-project activities where we determine if this is a viable and worthwhile project for the business. It also covers the project initiation, where we do more detailed planning for our overall project and for the next detailed project stage. At the end of the controlled start activities, we should have our project scope finalized, business justification in place, the high-level project plan built. The project team should be ready to get to work.
    Controlled Middle
    The controlled middle of a project is where the technical work gets done, one stage or phase at a time. The project manager is using the plan to measure and monitor project performance and to control what is taking place. This is “Management by Walking Around” (MBWA) where we are into everything – regular status, informal conversations, checking the health of the project, dealing with stakeholders, forecasting future performance, and dealing with issues and risks.
    Controlled End
    A controlled end to a project is when we are wrapping up a job well done. This can also take place if our project was prematurely terminated for one reason or another, hopefully a rare event. We are taking stock of achievements, reporting on the effort, ensuring objectives and acceptance criteria are met and transitioning the final product of our project into its operational life.
    The PRINCE2 Business Case is an important component of each step along the way – start, middle and end. Let’s take a look at each high-level piece of the project life cycle and talk about how the Business Case and its contents are created, updated and used by a PRINCE2 project manager.
  • Make use of the PRINCE2 Business Case while project work is being done.
    The Business Case is updated and maintained throughout the project life cycle with the current status about project risks, benefits and costs. At key decision points, its contents are verified in order to allow the project to continue.
  • Cost overruns. If the project is based on a rate of return on capital invested, then an increase in project costs can eliminate this.
    Time overruns. Some projects have to be delivered within a certain time frame to deliver benefits. Extending time may completely eliminate the benefits.
    Changes to specifications and scope. As projects progress changes to the plan or even the scope will inevitably be requested. These need to be carefully assessed against the continued ability to deliver the benefits.
    Quality problems. It may become clear during the project life cycle that the original quality expectations cannot be met. This can have an impact on the acceptability and hence the usability of the project's outputs by the end user. Changes to quality must be assessed against the benefits.
    Change in the business environment. Sometimes organizations have to take a different strategic path, making the need for the project obsolete. There is little point carrying on committing resources to a project for which there is no longer a need.
  • Controlled Start
    The controlled start to a project includes the pre-project activities where we determine if this is a viable and worthwhile project for the business. It also covers the project initiation, where we do more detailed planning for our overall project and for the next detailed project stage. At the end of the controlled start activities, we should have our project scope finalized, business justification in place, the high-level project plan built. The project team should be ready to get to work.
    Controlled Middle
    The controlled middle of a project is where the technical work gets done, one stage or phase at a time. The project manager is using the plan to measure and monitor project performance and to control what is taking place. This is “Management by Walking Around” (MBWA) where we are into everything – regular status, informal conversations, checking the health of the project, dealing with stakeholders, forecasting future performance, and dealing with issues and risks.
    Controlled End
    A controlled end to a project is when we are wrapping up a job well done. This can also take place if our project was prematurely terminated for one reason or another, hopefully a rare event. We are taking stock of achievements, reporting on the effort, ensuring objectives and acceptance criteria are met and transitioning the final product of our project into its operational life.
    The PRINCE2 Business Case is an important component of each step along the way – start, middle and end. Let’s take a look at each high-level piece of the project life cycle and talk about how the Business Case and its contents are created, updated and used by a PRINCE2 project manager.
  • Close your project and prove it stayed on track and delivered what was intended
  • Intent of the PRINCE2 Business Case – how should you use it as a PRINCE2 Project Manager.
  • Controlled Start
    The controlled start to a project includes the pre-project activities where we determine if this is a viable and worthwhile project for the business. It also covers the project initiation, where we do more detailed planning for our overall project and for the next detailed project stage. At the end of the controlled start activities, we should have our project scope finalized, business justification in place, the high-level project plan built. The project team should be ready to get to work.
    Controlled Middle
    The controlled middle of a project is where the technical work gets done, one stage or phase at a time. The project manager is using the plan to measure and monitor project performance and to control what is taking place. This is “Management by Walking Around” (MBWA) where we are into everything – regular status, informal conversations, checking the health of the project, dealing with stakeholders, forecasting future performance, and dealing with issues and risks.
    Controlled End
    A controlled end to a project is when we are wrapping up a job well done. This can also take place if our project was prematurely terminated for one reason or another, hopefully a rare event. We are taking stock of achievements, reporting on the effort, ensuring objectives and acceptance criteria are met and transitioning the final product of our project into its operational life.
    The PRINCE2 Business Case is an important component of each step along the way – start, middle and end. Let’s take a look at each high-level piece of the project life cycle and talk about how the Business Case and its contents are created, updated and used by a PRINCE2 project manager.
  • Sticking to Business; the Importance of the PRINCE2 Business Case

    1. 1. International www.apmg-international.com APMG-International Webinar Sticking to Business; the Importance of the PRINCE2 Business Case Tuesday 15 October 2013 / 11:00 EDT (New York, US) Presented by Susan Weese, Rhyming Planet Inc. www.APMG-International.com International
    2. 2. Agenda • Welcome & introduction – Mark Constable, International Marketing Co-ordinator APMG-International • Sticking to Business; the Importance of the PRINCE2 Business Case – Susan Weese (Rhyming Planet Inc.) • • • Q&A More Information Close International
    3. 3. Your presenter… Susan Weese, Rhyming Planet Inc. Susan is a management consultant specializing in project management and requirements development for complex information technology projects. Susan founded Colorado-based Rhyming Planet, Inc. in 2000 to motivate, lead, and enable technical and business professionals to accomplish their program and project goals. Susan is also faculty member at Colorado State University, delivering courses on project management and the underlying competencies that make good managers into great managers. International
    4. 4. Let’s take a moment and conduct a quick poll to get a read on everyone’s knowledge of PRINCE2. This will help Susan tailor the presentation and her comments to meet your needs. Many thanks! PRINCE2, anyone? International
    5. 5. What is PRINCE2? PRINCE2® (PRojects IN Controlled Environments) is a process-based approach for project management providing an easily tailored and scalable method for management of all types of projects. The method is the de-facto standard for project management in the UK and is practiced worldwide. PRINCE2® is a Registered Trade Mark of AXELOS Limited. International
    6. 6. Structure of PRINCE2 Four integrated elements: 1.Principles 2.Themes 3.Processes 4.Project environment International
    7. 7. PRINCE2® : Sticking to Business Continued business justification International
    8. 8. Has This Ever Happened to You? International
    9. 9. CHALLENGE: keeping our projects and their outcomes focused on the business when there is so much going on. International
    10. 10. PRINCE2 defines a project as "a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case." International
    11. 11. You can’t justify your project if you don’t define and agree upon the business benefits that the project and its outcomes bring to the organization. International
    12. 12. The PRINCE2 Business Case • Documents the business justification for your project • Provides a living checkpoint to determine if your project is staying aligned to its business objectives and benefits International
    13. 13. BUSINESS CASE PRINCE2 projects have a controlled start, controlled middle, and controlled end. International
    14. 14. www.apmg-international.com Controlled Start: The Business Case • Iteratively developed and approved in more and more detail • Justifies the initial investment in your project • Authorizes more detailed planning and definition for your project International
    15. 15. During the project’s initiation stage, the detailed Business Case is derived from several sources of project information. SCOPE SCOPE TIME TIME COST COST International
    16. 16. In order to be both useful and relevant, a Business Case should contain the following minimum set of information. International
    17. 17. Controlled Start Tells Us … • Is this a viable and a worthwhile project? – If so, then let’s define things in more detail. • Is this project worth doing now that we have more specific details? – If so, let’s get to work. International
    18. 18. Controlled Start: Review Points • At the end of your pre-project activities to authorize the initiation stage • At the end of the initiation stage to authorize the project after detailed definition and planning is complete International
    19. 19. BUSINESS CASE Now, let’s take a look at the importance of the Business Case during a project’s controlled middle. International
    20. 20. www.apmg-international.com Controlled Middle: The Business Case • Provides a checkpoint for determining if your project is staying aligned to its business objectives and benefits • Drives all decision making in the project International
    21. 21. www.apmg-international.com Controlled Middle: Ad Hoc Review Points • As part of any impact assessment for any new issues or risks • When you are in exception and need to – Re-plan from the point of exception – Authorize the revised stage – Reauthorize continuation of the project International
    22. 22. www.apmg-international.com Controlled Middle: Stage End Review Points • Determine if updates are required to cost, time, risks or benefits • Report benefits realized during this stage of the project (if any) • Confirm benefits will still be realized by the project • Authorize the next stage • Approve continuation of project International
    23. 23. Controlled Middle: Impacts to Project Viability • • • • • • Cost overruns Time overruns Changes to specifications Changes to project scope Quality problems Changes to the business environment International
    24. 24. Controlled Middle: The “Terrible Triplets” International
    25. 25. BUSINESS CASE Now, let’s take a look at the importance of the Business Case during a project’s controlled end. International
    26. 26. www.apmg-international.com Controlled End: The Business Case After project closure, the Business Case is confirmed based upon the operational benefits that accrue from using the project’s product. International
    27. 27. www.apmg-international.com There are two ways to bring a PRINCE2 project to a controlled end: premature termination or successful completion. International
    28. 28. www.apmg-international.com Controlled End: Review Points • Determine if updates are required to cost, time, risks or benefits • Assess project performance against project requirements • Determine likelihood that outcomes will provide expected benefits • Measure benefits realization in post-project benefits reviews International
    29. 29. The PRINCE2 Business Case driving decisionmaking across your project's lifecycle and ensures the project stays aligned with the business. International
    30. 30. PRINCE2 Business Case International
    31. 31. M ore Information • APMG-International: – www.APMG-International.com • PRINCE2 Information & Resources: – www.prince-officialsite.com • Rhyming Planet: – www.rhymingplanet.com – Email Susan at sweese@attglobal.net Thank you for attending! http://www.linkedin.com/company/apmg-international @ APMG_Inter International

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