PRINCE2 7 Foundation Quick Reference Guide PDF

PRINCE2 7 Foundation ® Quick Reference Guide Official Training Materials Introduction 1. Key concepts relating to projects and...

PRINCE2 7 Foundation ® Quick Reference Guide Official Training Materials Introduction 1. Key concepts relating to projects and PRINCE2 PRINCE2 Foundation is intended for project managers and aspiring project managers. It is also relevant to other key staff involved in the design, development, and delivery of projects, including The definition and characteristics of a project project board members, team managers, project assurance, project support, and operational line managers/staff. Project: a temporary organization that is created for the purpose of delivering one or more business products according to an agreed business case. The PRINCE2 Foundation examination is intended to assess whether a candidate can recall and Characteristics of a project that distinguish project work from business as usual: understand the PRINCE2 project management method (as described in the syllabus). PRINCE2 Foundation is a prerequisite for the PRINCE2 Practitioner exam, which assesses the ability to apply Characteristics Description understanding of the PRINCE2 project management method in context. Change the means by which we introduce change. Tew the desired change has been implemented, business as usual resumes What you will learn (in its new form) and the need for the project is removed. Cross-functional a project involves a team of people with different skills working together (on a temporary basis) to introduce a change that will impact others outside the team. Key concepts relating to projects and PRINCE2 Unique every project is unique. An organization may undertake many similar How PRINCE2 principles underpin the PRINCE2 method projects and establish a familiar, proven pattern of project activity, but PRINCE2 practices and how they are applied through projects each one will differ in a certain way. Uncertainty these characteristics will introduce threats and opportunities over and PRINCE2 processes and how they are carried out throughout projects * above those typically encountered within business as usual. The PRINCE2 Foundation exam is a 60 multiple-choice question (MCQ) exam and requires a candidate to obtain 60% (36 questions) correct or more to pass. The Quick Reference Guide (QRG) is a summarized version of the examinable content. Designed as a Project handy reference to facilitate exam preparation, it aligns with the syllabus structure: each numbered context section in the QRG corresponds to the same-numbered “Learning Outcome” in the Syllabus. Please note that the use of the QRG does not guarantee passing the exam. Practices People Processes Principles Figure 1.1 The five interrelated elements of PRINCE2 2 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 3 The seven aspects of project performance to be managed 1. Benefits: who are we doing it for? The project management team must have a clear understanding of the purpose of the project and what needs to be achieved to justify its investment. 2. Costs: many factors can affect the cost/budget available or may lead to (potential) underspend or overspend against the cost budget. The project has to be affordable. 3. Time: when will the project start, when will the key products be delivered, and when will the project finish? 4. Quality: finishing on time and within budget is not much consolation if the result of the project is not as specified or does not work. What is delivered by the project must be fit for purpose. 5. Scope: the degree to which it is permissible to under-deliver or over-deliver benefits (realized or estimated). 6. Sustainability: all projects have an impact on their environment, and project management Adapted from Figure 1.1 The five integrated elements of PRINCE2 teams need to know the sustainability performance targets for the project work and for the products required of the project. 4. PRINCE2 processes: these seven processes in PRINCE2 provide the set of activities 7. Risk: limits on the plan’s aggregated risks. required to direct, manage, and deliver a project successfully: starting up a project The five integrated elements of PRINCE2 directing a project initiating a project 1. The seven principles of PRINCE2: the seven principles are the guiding obligations and controlling a stage good practices which determine whether the project is genuinely being managed using * managing product delivery PRINCE2. Unless these following principles are applied, it is not a PRINCE2 project: managing a stage boundary ensure continued business justification closing a project. learn from experience 5. The project context: PRINCE2 has been designed so it can work within any context including define roles, responsibilities and relationships organizational and commercial context, delivery method, sustainability requirements, and project manage by stages scale. The principles, practices, and processes are applied by the people involved to ensure that manage by exception the method is fit for the project context. focus on products tailor to suit the project. Initiation Subsequent Final 2. People: an understanding of the needs, capabilities, and motivations of the people involved and Pre-project stage stage(s) stage the relationships between them is crucial to how the project is established and managed. People are at the centre of the PRINCE2 method. Directing Directing a project 3. PRINCE2 practices: these seven practices describe essential aspects of project management Starting that must be applied consistently and throughout the project lifecycle. up a Managing Managing Closing project a stage a stage a project boundary boundary Managing Initiating Controlling Controlling a project a stage a stage Managing Managing Delivering product delivery product delivery Note Starting up a project is used by both the directing and managing levels. There should be at least two stages, the first of which is the initiation stage. Managing a stage boundary is first used at the end of the initiation stage and repeated at the end of each subsequent stage except the final stage. It is also used to prepare exception plans, which can be done at any time including in the final stage. Figure 12.1 The PRINCE2 processes 4 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 5 The features and benefits of PRINCE2 2. How PRINCE2 principles underpin the As PRINCE2 is flexible and based on proven principles, organizations adopting the method as a standard can substantially improve their organizational capability and maturity across multiple areas PRINCE2 method of business activity. In addition to being an established method and qualification used worldwide, PRINCE2 has the Ensure continued business justification following benefits: A PRINCE2 project has business justification sufficient to warrant investment to initiate the project and ongoing investment through to successful completion. If it does not, it should be stopped. Proven: based on established and proven practice and governance for project management. Universal: can be applied to any project, of any scale, and easily implemented alongside specialist, industry-specific models. Learn from experience Flexible: can be tailored to meet the specific needs of the organizations involved. A PRINCE2 project team actively seeks, records, and implements improvements as a result of relevant Common language and concepts: widely recognized and provides a common vocabulary lessons learned from prior projects and throughout the life of the project. It applies them in future for all participants. projects and shares them for others to apply. Outcome-focused: ensures that project participants focus on the viability of the project in relation to its business case objectives. Increased organizational maturity: promotes learning and continual improvement. Defined roles and responsibilities Part of an integrated suite of methods: designed to work with other PeopleCert guides on A PRINCE2 project has defined and agreed roles and responsibilities within an organization structure programme, portfolio and risk management. that engages the business, user, and supplier stakeholder interests. Moreover, a PRINCE2 project management team initiates and builds relationships with and between internal and external The organizational context stakeholders. The PRINCE2 method does not assume any specific organizational context. There may be users who Manage by stages * specify the desired outputs (referred to as products in PRINCE2), suppliers who will provide the resources and expertise to deliver the products, and business decision-makers who will ensure A PRINCE2 project is planned, monitored, and controlled on a stage-by-stage basis. that the project investment can be justified and remains justified through the project lifecycle. The project may be part of a programme or portfolio structure, or it may be a standalone project Manage by exception reporting to the business unit’s management structure. A PRINCE2 project establishes limits of delegated authority by defining tolerances for performance against its plans. Business Focus on products A PRINCE2 project focuses on the definition and delivery of products, in particular their user quality Portfolio expectations and requirements. Tailor to suit the project Programme Programme A PRINCE2 project applies and tailors the PRINCE2 method to suit the project environment, size, complexity, importance, delivery method, team capability, and level of risk. Project A Project B Project C Project D Project E Figure 1.2 Various project contexts 6 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 7 3. People in PRINCE2 Leading a successful change Change management is the means by which an organization transitions from the current state to People are central to the PRINCE2 method. The purpose of a project is to deliver change, which the target state. Effective leadership is required to deliver this change. will affect people in their business as usual (BAU) activities, routines, and responsibilities. How well PRINCE2 addresses change by creating and maintaining a change management approach for the the change is implemented, and therefore how well the project performs, depends on the capabilities project. of the project team, the strength of the relationships between them, and the people impacted by the change. In PRINCE2, ‘people’ covers those who are working on a project and the relationships between them, Project as well as those impacted by a project. ecosystem Suppliers Leading successful change Users Business Ecosystem People central to Intersection/Interaction of ecosystems the method Organizational Main project stakeholder Leading ecosystem * groups Communication successful Relationships teams People or groups Figure 3.2 The three project interests Projects will impact people or stakeholders from across the organizational ecosystem. Figure 3.3 People central to the method A stakeholder is any individual, group, or organization that can affect or be affected by (or perceives itself to be affected by) the project. Therefore, a project will need to involve those with a formal role in the project team and key people either impacted by or critical to the success of the project (who may not hold a formal role). Leading successful teams Projects are delivered by people in a temporary team, typically working across organizational boundaries. This means that project teams require a different style of management and leadership than that used for established business teams, as it can be more challenging for a temporary leader or manager to exercise their authority. 8 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 9 Managing successful teams Cultural intelligence or the ability to relate and work across cultures within the organizational ecosystem.document the rules for delegating change authority responsibilities, if required Competencies and capabilities of those assigned to the project to identify and mitigate gaps Team building to build trust and find compatible ways of working. Bringing teams together and building social cohesion within teams that are co-located, or have virtual or hybrid working arrangements. Communication Communication is important to avoid misconceptions and unnecessary barriers in implementing changes. Figure 5.1 Relationship between outputs, outcomes, and benefits PRINCE2 addresses communication in a communication management approach. This defines and Business case: documents the business justification for undertaking a project, based on the describes the means and frequency of communication with and receiving feedback from across the estimated costs against the expected benefits to be gained and offset by any associated risks. project ecosystem, supporting alignment and shaping of the project. It facilitates engagement with Benefits management approach: defines the management actions that will be established to stakeholders through the establishment of a controlled and bidirectional flow of information. ensure that the project’s outcomes are achieved and to confirm that the project’s benefits are How project teams communicate will also depend on whether they are co-located, remote, or hybrid. realized. Sustainability management approach: defines the actions, reviews, and controls that will be * established to ensure that sustainability performance targets for the project are achieved. 4. PRINCE2 practices and how they are PRINCE2 technique for business case management applied throughout projects Confirm Confirm Confirm Business Case benefits benefits benefits The purpose of the business case practice is to establish mechanisms to judge whether the Subsequent Final project is (and remains) desirable, viable, and achievable as a means to support decision-making in its Initiation Pre-project delivery delivery Post-project continued investment. stage stages stage Key concepts related to business case Check outline Check full Check updated business case business case business case Capability: the completed set of project outputs required to deliver an outcome. Output: the tangible or intangible deliverable of an activity. Develop business case Maintain business case Outcome: the result of change, normally affecting real-world behaviour and circumstances. Outside the project lifecycle Changes are implemented to achieve outcomes, which are achieved as a result of the Within the project lifecycle activities undertaken to facilitate the change. Figure 5.3 Business case through the project lifecycle Benefit: the measurable improvement resulting from an outcome that is perceived as an advantage by the investing organization and contributes towards one or more business objectives. Dis-benefit: the measurable decline resulting from an outcome perceived as negative by the investing organization, which detracts from one or more business objectives. Business objective: the measurable outcomes that demonstrate progress in relation to the organization’s strategy and to which the project should contribute. 10 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 11 Organizing PRINCE2 project team management roles The purpose of the organizing practice is to define and establish the project’s structure of accountability and responsibilities (the ‘who’). Business layer The PRINCE2 method focuses on three principal categories of project stakeholders Project board (business, user, and supplier) and includes them in the governance and management arrangements for the project. 1. Business: projects are created to meet a business need, which needs to be continuously Senior Business layer Senior Executive justified as value for money throughout the lifetime of the project PRINCE2 defines a project user(s) supplier(s) executive role to represent this viewpoint on the project. Project board 2. User: the products of a project should provide benefits to a defined set of users who support both defining the requirements of the product and ensuring these requirements are met. Senior Executive Senior Users can sit within the business as end users, be impacted by the project, or have a role in user(s) supplier(s) operating or maintaining the products. Users can also sit outside of the business as end users or be impacted by the outputs of the project. PRINCE2 defines a senior user role to represent Project user interests on the project. assurance 3. Supplier: projects require people with the necessary skills and knowledge to collaborate to Project Project deliver the products. They may come from within the organization, or external suppliers may be assurance manager used for their skills and knowledge. PRINCE2 defines a senior supplier role to represent supplier interest on the project. Project manager Project support * Project support Inside the project Team management team Inside the project manager(s) Team From the business management team Lines of authority manager(s) From the business Lines of authority From the supplier Project assurance responsibility Business From the supplier Project assurance responsibility Other roles in a project Other roles in a project management team Lines of support/advice management team Lines of support/advice Team members Team members Outside Outside the the project project management management teamteam Figure 6.3 Project management team structure Project The role and responsibilities of the executive Appointed by the business as the single point of accountability for the project, the executive is ultimately accountable for the success of the project. This accountability cannot be delegated. The User Supplier project executive secures funding for the project and is responsible for the business case and the continued business justification of the project. They are responsible for effectively governing the project in a way that is aligned to the business strategy, including ensuring longer-term thinking on topics such as environmental, social, and economic impacts. There cannot be more than one project executive and the role cannot be combined with the project manager. Figure 6.1 The three project stakeholder groups 12 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 13 The role and responsibilities of the senior user Depending on scale, complexity, skill and capacity, the project manager may also perform the team Represents the user community and is accountable for the approach taken to capture user manager and project support roles or delegate these directly to team members. requirements and for the specification of benefits aligned to the business case. The role is The role and responsibilities of the team manager responsible for: Responsible for delivering the work allocated to them within the tolerances and constraints agreed ensuring user buy-in to the approach with the project manager, through: monitoring products against the requirements in line with the business case delivering the products to the agreed specifications demonstrating to the business that the forecasted benefits in the business case are on track setting the tolerances and constraints for team members to work within to being realized ensuring team decisions are in line with the project manager’s guidance and the tolerances controlling change to requirements and benefits managing relationships both within their team and any interfaces with others successful handover and adoption of products into the business. monitoring and supporting the safety and wellbeing of team members and the sustainability of the team’s approach. Depending on the scale and complexity of the user community, more than one person may represent users. The role and responsibilities of project assurance Project board members are accountable for the assurance of their respective areas of concern. The The role and responsibilities of the senior supplier project board is responsible for establishing how project assurance will be undertaken, ensuring Represents the supplier community that is involved in all aspects of delivering the project products, clarity in the roles and responsibilities and how those appointed to assurance roles will interact with and must ensure sufficient ongoing commitment of people and resources from the supplier to each other. support the project work. The senior supplier is accountable for the quality of the products delivered by the suppliers and for the technical integrity of the project. Depending on the scale and complexity The role and responsibilities of project support of the supplier community, more than one person may represent suppliers. Responsible for providing services such as: administrative support, facilitating meetings and workshops, advice and guidance on the project tools, planning support, risk management, issue The roles and responsibilities of the project board management, and change management. Although the role is the responsibility of the project Accountable to the business for the success of the project and has authority and responsibility for manager, it can be delegated to suppliers, individuals, or groups within the business or to other the project within the project tolerances set by the business, often captured in a project mandate. team members. Project support must be kept separate from project assurance roles to maintain the * They are responsible for creating the right environment for the project to succeed, including: independence of assurance. having sufficient funding, people, and resources to deliver the project objectives establishing clear feedback loops to support adapting and evolving the project Key concepts related to organizing assuring all aspects of the project’s performance and products independently of the project manager Organizational levels ensuring business strategy and objectives are reflected in the business case The project management structure has four levels, three of which represent the project management ensuring the project and its management approaches are aligned to the business’ team and a fourth that sits outside the project. environmental, social, and governance (ESG) commitments The business layer setting stage tolerances to enable management by exception The commissioning party within the business is responsible for providing the project mandate, governing the project and determining the rules, constraints, shared values, and perspectives identifying the executive, and defining the project level tolerances within which the project board will needed to guide decision-making at all levels work. establishing the tolerances and change budget to support effective decision-making focusing on the safety and well-being of the project team Directing monitoring and supporting social cohesion within the project ecosystem The project board has representations from the business, user, and supplier communities and managing relationships at the interface of the organizational ecosystem and project is accountable for the success of the project. It is also responsible for the overall direction and ecosystem. management of the project within the constraints established by the commissioning party. The role and responsibilities of the project manager Managing Has the authority to run the project on behalf of the project board within the agreed project The project manager is responsible for the day-to-day management of the project within the tolerances and constraints. They are responsible for day-to-day management of a project, including: constraints established by the project board. The project manager’s primary responsibility is to manage the relationships within the project to ensure that the project produces the products in managing and delegating the work to the team managers or team members accordance with the strategic objectives and the agreed requirements. setting the work package tolerances and constraints for the team managers and project support roles to work within Delivering ensuring decisions are being made in line with the project board guidance and tolerances Team managers and members are responsible for the day-to-day management and decision-making managing relationships within the project ecosystem for their element of the project within the constraints established by the project manager, co-creating monitoring and supporting the safety and well-being of team members and the sustainability where required with other team members from across the project ecosystem of the project approach. 14 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 15 Work breakdown structure A hierarchy of all work to be done during a project that forms a link between the product breakdown PRINCE2 technique for organizational design and structure and the work packages. development Commissioning (business layer) Figure 6.5 PRINCE2 technique for organizational design and development Plans Directing (project board) The purpose of the plans practice: is to facilitate communication and control by defining the products to be delivered (the ‘what’) and the means to deliver them (the ‘who’, the ‘how’, the ‘where’, and estimates of the ‘when’ and for ‘how much’) to satisfy the project business case (the ‘why’). Plan: is a proposal that outlines the what, where, when, how, and who of the project as a whole (or a subset of its activities). In PRINCE2, there are the following types of plan: project plan, stage plan, team plan, and exception plan. Project Managing * management (project team manager) Delivering (team managers) Figure 6.2 The four organizational layers Figure 7.1 Relationship between PRINCE2 plans Project plan: a high-level plan showing the major products of the project and when, how, and at what cost they will be delivered. Stage plan: a detailed plan used as the basis for project management control throughout a stage. Team plan: a plan used as the basis for organizing and controlling the work of a team when executing a work package. Team plans are optional in PRINCE2. Exception plan: a plan that follows an exception report and explains how the project will respond to the exception within the stage. 16 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 17 PRINCE2 technique for planning Defining and analysing the product The PRINCE2 technique leads to a plan based on the creation and delivery of the required products. Defining and analysing products comprises four steps as illustrated. Product-based planning: takes the definition and analysis of the required products as the starting Defining and analysing the products involves writing: point for planning and deriving any supporting elements of the plan from these product descriptions, A project product description: a description of the project’s major products or outcomes, such as the work breakdown structure, estimates, and project schedule. including the user’s quality expectations, together with the acceptance criteria and acceptance methods for the project. Defining and analysing products A product breakdown structure: a hierarchy of all the products to be produced during a plan. Write a project product description For project plan only Organizing work packages Create a product breakdown structure Analysing risks Preparing estimates Repeated for: Project plan Stage plan Team plan Preparing schedule Write product descriptions For all levels of plan Preparing the budget Create a product flow diagram * Documenting the plan Figure 7.4 Analysing products Figure 7.3 The PRINCE2 planning structure PRINCE2 structures the management of the project on a stage-by-stage basis. Combined with the Quality focus on products principle, managing by stages helps the project management team to plan and The purpose of the quality practice: to document the user’s requirements of the project products deliver what is required when it is required. The number of stages can vary, based on the nature of and to establish the means by which they will be met. the products and the necessary delivery activities. The quality management approach: describes the quality techniques and standards to be applied and the roles and responsibilities for achieving the required quality specifications and acceptance criteria during a project. Key quality terminology Quality: the degree to which a set of inherent characteristics of a product, service, process, person, organization, system, or resource fulfils its requirements. User’s quality expectations: a statement about the quality expected from the project product, captured in the project. Requirement: a need or expectation that is documented in an approved management product. Acceptance criteria: a prioritized list of criteria that the project product must meet before the user will accept it. Quality specifications: a description of the quality measures that will be applied by those performing quality control and the levels that the finished product must meet. 18 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 19  PRINCE2 quality management procedure Risk management concepts Focuses on three elements: Risk owner: the person who is assigned to take responsibility for responding to a risk. Quality planning: the capturing of quality specifications for the project products and Risk action owner: the person who is the nominated owner of agreed actions to respond to a risk. generating the associated product descriptions and quality management approach. This role is also known as the risk actionee. Quality control: the procedures to monitor the specific products of a project and their development or delivery activities to determine whether they comply with relevant standards Risk probability: the estimated chance that a risk will occur. Probability is often estimated by and identify ways to minimize causes of unsatisfactory performance. considering the probability or frequency of occurrence of a risk. Quality assurance: a planned and systematic activity that provides confidence that Risk impact: the estimated effect on objectives should a risk occur. products will meet their defined quality specifications when tested under quality control. Quality assurance is typically a function managed independently from the project team. Risk proximity: how near in time a risk might occur. Risk velocity: how quickly a risk would have an impact on objectives should it occur. From user Project response Risk exposure: the degree to which a particular objective is ‘at risk’. Risk exposure is a neutral concept as exposure can be positive or negative. Quality planning Project product Quality management approach description Risk appetite: the amount and type of risk that the business is willing to take in pursuit of its objectives. Product descriptions Risk budget: a sum of money to fund specific management responses to the project’s threats and Quality specifications and tolerances Quality methods opportunities (for example, to cover the costs of any contingent plans should a risk materialize). Risk tolerance: a measurable threshold to represent the tolerable range of outcomes for each objective ‘at risk’ using the same units as for measuring performance for that objective. * Quality register Quality control Risk response: the best actions to take in response to risks will depend on the particular situation Quality control activities and type of risk. Different responses may be appropriate for threats and opportunities: avoid a threat/exploit an opportunity Product register reduce a threat/enhance an opportunity transfer the risk share the risk Acceptance Product accept the risk prepare contingent plans. Figure 8.1 Product quality lifecycle Risk The purpose of the risk practice: to identify, assess, and control uncertainties that would affect the project’s objectives, and, as a result, improve the ability of the project to succeed. A risk: an uncertain event or set of events that, should they occur, will affect the achievement of objectives. A risk is measured by a combination of the probability of a perceived threat or opportunity occurring and the magnitude of its impact on objectives. The risk management approach: describes how risk will be managed on the project. This includes the specific procedures, techniques, standards, and responsibilities to be applied. The risk register: maintains a record of identified risks related to the project, including their status and history. 20 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 21  t Ide PRINCE2 technique for issue management en n m le tif Imp y Project board/change approval authority Communicate Request for advice Request for advice or exception report s an Capture Assess Recommend Decide Implement es Pl s As Determine Assess impact Identify Escalate if Take issue type on project options beyond corrective business case delegated action Determine and project Evaluate authority Figure 9.2 PRINCE2 technique for risk management severity/ risk profile options Update priority Approve, records and Check severity/ Recommend reject, ask for project PRINCE2 technique for risk management Register the issue priority options an exception plan, and baseline, if necessary request more Identify: review the plan’s context and objectives so that threats and opportunities can be identified. information Assess: prioritize risks and assess the combined risk profile. Plan: decide on risk responses and monitoring arrangements. Implement: establish monitoring arrangements and execute actions for priority risks or realized Project log: Issue register risks. Figure 10.1 PRINCE2 Issue management technique Communicate: how to communicate information regarding threats and opportunities within the * project ecosystem and to external stakeholders where needed. Progress Issues The purpose of the progress practice is to: The purpose of the issues practice is to collect and assess issues and control changes to the establish mechanisms to monitor and compare actual achievements against those planned project’s baseline. provide a forecast for the project’s objectives and continued viability An issue is an event relevant to the project that requires project management consideration. There control any deviations causing an exception. are different types of issues: The progress management practice is based on an overarching plan-do-check-act cycle. Effective A problem: an issue with an immediate and negative impact. progress management includes: A concern: an issue whose timelines and impact need to be assessed. defining management levels and tolerances for progress control An event external to the project: that may impact the project in some way. applying two types of control (event-driven and time-driven) A business opportunity: an issue that represents unanticipated positive consequences for reviewing progress and lessons the project or user organization. reporting progress and lessons A request for change: a proposal for a change to baseline. forecasting remaining work Off-specification: a product that will not meet its quality specifications. escalating In PRINCE2, issue management encompasses change control. using data. A change is defined as a modification to any of the approved products that constitute the project baseline. A project baseline is the current approved versions of the management products and project products that are subject to change control. Change budget is the money or authorized constraints set aside in a plan to cover changes. It is allocated by those with delegated authority to deliver authorized changes. 22 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 23 Key concepts related to the progress practice Types of control Management levels and tolerances for progress control: The PRINCE2 method provides two types of progress control throughout the life of a project: the project is managed by exception between four management levels against tolerances for seven performance targets. Event-driven control A control that occurs when a specific event occurs. For example: Business layer the end of a stage the completion of the project initiation documentation the creation of an exception report Project Reporting Project Project status/ format and organizational events that may affect the project, such as the end of the financial year. Project plan tolerances progress/exceptions Exception frequency to report be confirmed with business layer Time-driven control A management control that occurs at predefined periodic intervals. For example: Project board producing highlight reports for the project board checkpoint reports showing the progress of a work package. Highlight Reporting Stage plan Stage tolerances Stage progress/exceptions report/ format and Exception frequency to Escalating exceptions report be confirmed with the An exception is a situation where it can be forecast that there will be a deviation beyond the project board tolerance levels agreed between the project manager and the project board (or between the project * board and business layer). Project manager Checkpoint Reporting Work package Work package Work package report/ format and description tolerances progress/issues Issue frequency to be confirmed with project manager Team manager Figure 11.2 Delegating tolerance and reporting actual and forecast progress The tolerance levels establish limits of delegated authority: Benefits: the degree to which it is permissible to under deliver or over deliver benefits (realized or estimated). Costs: the degree of permissible overspend or underspend against an agreed budget. Time: the degree to which a project is permitted to deliver later or earlier than an agreed target completion date. Quality: how much something can vary from agreed quality criteria. Scope: permissible variation of the plan’s products. Sustainability: limits on the agreed metrics for sustainability. Risk: limits on the plan’s aggregated risks. 24 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 25 PRINCE2 technique for exception management Directing a project Stage 2 Stage 2a (new) Project Business Project initiation mandate layer request Directing a project Appoint the Starting up executive and a project 3 5 project manager Exception Exception New stage report plan plan 2 4 Assess previous Appoint the project lessons management team Managing a stage Controlling a stage 6 Controlling a stage boundary Prepare the Select the project ! outline business approach Issue case 1 Managing product delivery Assemble the project brief Figure 11.3 PRINCE2 technique for exception management Plan the Request initiation stage project initiation * 5. PRINCE2 processes and how they are Figure 13.1 Overview of starting up a project carried out throughout projects Starting up a project Directing a project The purpose of the process of starting up a project is to ensure that the prerequisites for The purpose of the process of directing a project is to enable the project board to be initiating a project are established by answering the question, ‘do we have a viable and worthwhile accountable for the project’s success by making key decisions and exercising overall control while project?’. The decision to start the project must be explicit, as the activities within the process of delegating day-to-day management of the project to the project manager. starting up a project happen before this decision. The objectives of the process of directing a project are to ensure that: The project brief ensures that the project has a commonly understood and well-defined starting there is authority to initiate the project point. there is authority to deliver the project product appropriate management direction and control are provided throughout the project’s life The objectives of the process of starting up a project are to ensure that: the project remains viable there is a business justification for initiating the project (documented in an outline business the business layer has a connection to the project case) there is authority to close the project all the necessary authorities exist for initiating the project (for example, to assign people and plans for realizing the post-project benefits are managed and reviewed. secure resources) sufficient information is available to define and confirm the scope of the project (in the form of a project brief) alternative approaches have been evaluated and the chosen project approach agreed individuals are appointed who will undertake the work required in the initiation stage or take significant project management roles during the project the work required for the initiation stage (documented in a stage plan) is planned time is not wasted initiating a project based on unsound assumptions regarding the project’s scope, timescales, acceptance criteria, or constraints. 26 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 27  Project Project board Advice and Initiation authorization request for decisions from Closure notice notice notice advice the business Directing Authorize Authorize the Directing a project a project initiation project Authorize a stage or Authorize Give ongoing direction exception plan project closure Initiate a Project Project board’s project authorization Stage Next stage Advice authorized request request advice and decisions authorization request OR OR OR Exception plan Exception plan Exception plan Exception authorized approval request request raised Project initiation request Project initiation authorized Project authorization Premature close notice