PRINCE2 Foundation Quick Reference Guide PDF

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

PRINCE2® Foundation Quick Reference Guide Official Training Materials Introduction 1. Key concepts relating to projects and PRINCE2 The PRINCE2® Foundation qualification is intended for project managers and aspiring project The definition and characteristics of a project managers. It is also relevant to other key staff involved in the design, development and delivery of projects, including: project board members, team managers, project assurance, project support, and Project A temporary organization that is created for the purpose of delivering one or more business operational line managers/staff. 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). The PRINCE2 Change Projects are the means by which we introduce change. Foundation qualification is a prerequisite for the PRINCE2 Practitioner exam, which assesses the ability to apply understanding of the PRINCE2 project management method in context. Temporary As the definition of a project states, projects are temporary in nature. 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. Unique Every project is unique. What you will learn * Key concepts relating to projects and PRINCE2 How PRINCE2 principles underpin the PRINCE2 method PRINCE2 themes and how they are applied through projects PRINCE2 processes and how they are carried out throughout projects The PRINCE2 Foundation exam is a 60 multiple choice questions (MCQ) exam and requires a candidate to obtain 55% (33 questions) correct or more to pass. Figure 1.1 The structure of PRINCE2 This Quick Reference Guide may be used by learners to assist in their preparation for the PRINCE2 Foundation certification test. PeopleCert does not warrant that use of this guide will ensure passing of the exam. 3 2 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 3 The six aspects of project performance to be managed 3. PRINCE2 processes The seven processes describe a progression from the pre-project activity of getting started, through the stages of the project life cycle, to the final act of project 1. Costs The degree of permissible overspend or underspend against an agreed budget. closure: 2. Timescales The degree to which a project is permitted to deliver later or earlier than an starting up a project agreed target completion date. directing a project initiating a project 3. Quality How much something can vary from agreed quality criteria. controlling a project managing product delivery 4. Scope Permissible variation of the plan’s products. managing a stage boundary closing a project. 5. Benefits The degree to which it is permissible to under-deliver or over-deliver benefits (realized or estimated). 6. Risk Limits on the plan’s aggregated risks. The integrated elements of PRINCE2: principles, themes, processes and the project environment Figure 13.1 The PRINCE2 processes The four integrated elements of PRINCE2: 1. PRINCE2 principles The principles are the guiding obligations and good practices which 4. The project environment Organizations often want a consistent approach to managing * determine whether the project is genuinely being managed using PRINCE2 business case: projects and tailor PRINCE2 to create their own project management method. continued business justification learn from experience What makes a project a PRINCE2 project? defined roles and responsibilities For a project to be a ‘PRINCE2 project’, as a minimum it must be possible to demonstrate that it: manage by stages manage by exception is applying PRINCE2’s principles focus on products is meeting the minimum requirements set out in the PRINCE2 themes tailor to suit the project. has project processes that satisfy the purpose and objectives of the PRINCE2 processes is either using PRINCE2’s recommended techniques or using alternative, equivalent techniques. 2. PRINCE2 themes The themes describe aspects of project management that must be addressed continually and in parallel throughout the project. organization quality plans risk change progress. 4 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 5 The features and benefits of PRINCE2 2. How PRINCE2 principles underpin the PRINCE2 is based on established and proven best practice and governance for project management. It can be tailored to meet the specific needs of the organization, and it can be applied to any type PRINCE2 method of project. PRINCE2 provides a common vocabulary for all project participants, and ensures that participants focus on the viability of the project in relation to its business case objectives. It promotes Continued business justification learning from project experience and continual improvement in organizations. The PRINCE2 principle of continued business justification is that for all projects: The benefits of PRINCE2 for an individual is that the individual will: there is a justifiable reason for starting the project. gain a globally recognized certification that justification is recorded and approved. know how to start, manage the steps, and close a project the justification remains valid, and is revalidated, throughout the life of the project. learn common project management terminology know how to structure a project improve career prospects Learn from experience improve standing within their organization clearly understand their role as project manager The PRINCE2 principle of learn from experience is that learning from experience takes place throughout a PRINCE2 project, including: when starting a project The customer/supplier context on which PRINCE2 is as the project progresses based as the project closes. PRINCE2 assumes that there will be a customer who will specify the desired result and (usually) pay * for the project, and a supplier who will provide the resources and skills to deliver that result. Defined roles and responsibilities Projects can exist within many contexts; they may be stand-alone (with their own business case and justification) or they may be part of a programme or wider portfolio. Figure 2.2 shows how projects The PRINCE2 principle of defined roles and responsibilities is that all projects have the may fit within a programme and portfolio context. In addition, projects may be wholly managed following primary stakeholders: within the commissioning organization or be part of a commercial relationship. ‘business’ sponsors who endorse the objectives and ensure that the business investment provides value for money. ‘users’ who, after the project is completed, will use the products to enable the organization to gain the expected benefits ‘suppliers’ who provide the resources and expertise required by the project (these may be internal or external). Figure 2.2 Projects in the context of portfolios and programmes 6 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 7 Manage by stages 3. PRINCE2 themes and how they are applied The PRINCE2 principle of manage by stages is that a PRINCE2 project is planned, monitored throughout projects and controlled, management stage by management stage. Business case Manage by exception The purpose of the business case theme is to establish mechanisms to judge whether the The PRINCE2 principle of manage by exception is that a PRINCE2 project has defined project is (and remains) desirable, viable and achievable as a means to support decision-making in its tolerances for each project objective, to establish limits of delegated authority. (continued) Investment. Focus on products Benefits management approach Defines the management actions that will be put in place to ensure that the project’s outcomes are achieved and confirm that the project’s benefits are realized. The PRINCE2 principle of focus on products is that a PRINCE2 project focuses on the definition and delivery of products, in particular their quality requirements. PRINCE2’s minimum requirements for applying the Tailor to suit the project business case theme The PRINCE2 principle of tailor to suit the project is that PRINCE2 is tailored to suit the project PRINCE2’s requirements for the business case theme is that to be following PRINCE2, a environment, size, complexity, importance, team capability and risk. project must, as a minimum: create and maintain a business justification for the project; usually a business case * Tailoring PRINCE2: which aspects of a project can review and update the business justification in response to decisions and events that might be tailored, who is responsible, and how tailoring impact desirability, viability or achievability of the project define the management actions that will be put in place to ensure that the project’s outcomes decisions are documented are achieved and confirm that the project’s benefits are realized define and document the roles and responsibilities for the business case and benefits The following aspects of PRINCE2 may be tailored: management. processes may be combined or adapted (e.g. by adding or combining activities themes can be applied using techniques that are appropriate to the project roles may be combined or split, provided that accountability is maintained and there are no conflicts of interest management products may be combined or split into any number of documents or data sources terminology may be changed to suit other standards or policies, provided it is applied consistently 8 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 9 Key concepts related to business justification, and the Communication management approach differences between them The purpose of the communication management approach is to facilitate engagement with Key concepts related to business justification: stakeholders through the establishment of a controlled and bidirectional flow of information. Output A specialist product that is handed over to a user (or users). Note that management PRINCE2 requirements for applying the organization products are not outputs but are created solely for the purpose of managing the project. Outcome The result of change, normally affecting real-world behaviour and/or theme circumstances. Outcomes are desired when a change is conceived. They are achieved as a result of the activities undertaken to effect the change. For applying the organization theme, PRINCE2 requires that a project must, at a Benefit The measurable improvement resulting from an outcome perceived as an advantage minimum: by one or more stakeholders. Dis-benefit A measurable decline resulting from an outcome perceived as negative by one define its organization structure and roles. This must minimally ensure that all of the or more stakeholders, which reduces one or more organizational objective(s). responsibilities in PRINCE2’s role descriptions are fulfilled (PRINCE2’s defined roles and responsibilities principle) document the rules for delegating change authority responsibilities, if required define its approach to communicating and engaging with stakeholders. PRINCE2 project management team roles * Figure 6.1 Relationship between outputs, outcomes and benefits Figure 7.3 PRINCE2® project management team roles Organization theme The purpose of the organization theme is to define and establish the project’s structure of accountability and responsibilities. 10 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 11 The roles and responsibilities of the project board are: The role and responsibilities of project support Project support is the responsibility of the being accountable to business, user and supplier interests for the success or failure of the project manager. If required, the project manager can delegate some of this work to a project project support role: this may include providing administrative services or advice and guidance on the use of providing unified direction to the project project management tools. It could also provide specialist functions to a project such as planning or delegating, using the PRINCE2 organizational structure and controls designed for this purpose risk management. Unless performed by a corporate, programme management or customer function, facilitating integration of the project management team with the functional units of the project support is typically responsible for administering change control. The role of project support participating is not optional, but the allocation of a separate individual or group to carry out the required tasks is. corporate, programme management, or customer organizations This role is the responsibility of the project manager. The project manager can delegate some of this providing the resources and authorizing the funds needed for successful completion of the work. project effective decision-making providing visible and sustained support for the project manager ensuring effective communication both within the project team and with external stakeholders The role and responsibilities of the executive The executive, supported by the senior user(s) and senior supplier(s), is ultimately accountable for the project’s success and is the key decision maker. The executive’s role is to ensure that the project is focused throughout its life on achieving its objectives and delivering a product that will achieve the fore casted benefits. The executive has to ensure that the project gives value for money, ensuring a cost-conscious approach to the project, balancing the demands of the business, user, and supplier. The role and responsibilities of the senior user To specify the needs of those (including operations and maintenance services) who will use the project product for user liaison with the * project management team and for monitoring that the solution will meet those needs within the constraints of the business case in terms of quality, functionality, and ease of use. The role and responsibilities of project assurance To monitor all aspects of the project’s performance and products independently of the project manager. Project board members are responsible for the aspects of the project assurance role aligned with their respective areas of concern (business, user or supplier). The role and responsibilities of the change authority Τo authorize requests for change or off specifications. It is the project board’s responsibility to agree to each potential change before it is implemented. The project board needs to decide, before the project moves out of the initiating a project process, if it wishes to delegate some authority for approving or rejecting requests for Figure 7.4 The many facets of the project manager role change or off-specifications. These delegated authorities must be written into the appropriate role descriptions. The role and responsibilities of the project manager The project manager is the single focus for day-to-day management of a project. This person has the authority to run the project on behalf of the project board within the constraints laid down by the project board. The role of the project manager must not be shared. The role and responsibilities of the team manager The team manager’s primary responsibility is to ensure production of those products allocated by the project manager. The team manager reports to, and takes direction from, the project manager. The team manager role may be assigned to the project manager or a separate person. 12 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 13 Combining of roles PRINCE2 allows roles to be combined within the following constraints: the executive and project manager roles cannot be combined there cannot be more than one executive or project manager the executive’s accountability for project success cannot be delegated the project board should not assign any project assurance roles to the project manager, team manager, or project support. When combining roles, the project board should consider any conflicts of responsibilities, whether one person has the capacity to undertake the combined responsibilities, and whether any bottlenecks might be created as a result. Also, it is not recommended to combine the roles of senior user and senior supplier as this can create conflicts of interest for an individual. Key concepts related to organization Figure 7.1 The three principal project interests Stakeholder: Any individual, group, or organization that can affect, be affected by, or perceive itself The project management structure has four levels, three of which represent the project management to be affected by an initiative (i.e. a programme, project, activity or risk). team and a fourth that sits outside the project. Figure 7.2 illustrates these four levels of management. The three principle project interests are: 1. Business The products of the project should meet a business need that justifies the investment in the project. The project should also provide value for money. The business viewpoint therefore should be represented to ensure that these two prerequisites exist before * a project commences and remain in existence throughout the project. 2. User Individuals or groups for whom some or all of the following will apply: they will use the outputs of the project to realize the benefits they will operate, maintain or support the project’s outputs the outputs of the project will impact them The user presence is needed to specify the desired outputs and ensure that the project delivers them through the supplier. 3. Supplier Those who will provide the necessary skills and produce the project product. The Figure 7.2 The four levels of management within the project management structure supplier needs to have an understanding of all the relevant standards with which the output (product) needs to comply, and the project may need to use both in-house and external supplier teams to construct the project product. 14 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 15 Quality Key concepts related to quality, and the differences between them The purpose of the quality theme is to define and implement the means by which the project will verify that products are fit for purpose. Quality planning is defining the project product and its components, with the respective quality criteria, quality methods (including effort required for quality control and product approval) and The quality management approach is an approach defining the quality techniques and quality responsibilities of those involved. The purpose of quality planning is to provide a secure basis: standards to be applied, and the various responsibilities for achieving the required quality levels, during a project. to obtain agreement by the project board on the overall quality expectations, the products required with their associated quality criteria (including corporate and other standards to The quality register is a register containing summary details of all planned and completed quality be observed), the means by which quality will be achieved and assessed and, ultimately, the activities. The quality register is used by the project manager and project assurance as part of acceptance criteria by which the project product will be judged reviewing progress. to communicate these agreements unambiguously so that all the project stakeholders have a common understanding of what the project is setting out to achieve for control (i.e. establishing an effective baseline for the project’s quality controls, including the PRINCE2’s minimum requirements for applying the quality tolerances) and a secure means of achieving products that are fit for purpose. quality theme Quality control is the process of monitoring specific project results to determine whether To follow PRINCE2, a project must, as a minimum: they comply with relevant standards and of identifying ways to eliminate causes of unsatisfactory performance. define its quality management approach. This approach must minimal cover: - the project’s approach to quality control Quality assurance is a planned and systematic process which provides confidence that outputs will - the project’s approach to project assurance meet their defined quality criteria when tested under quality control. It is carried out independently * - how the management of quality is communicated throughout the project lifecycle of the project team. The process must comply with relevant corporate, programme management, or - the roles and responsibilities for quality management (PRINCE2’s defined roles and customer standards and policies. responsibilities principle) specify explicit quality criteria for products in their product descriptions (PRINCE2’s focus on Project assurance is the project board’s responsibility to assure itself that the project is being products principle) conducted correctly. The project board members each have a specific area of focus for project maintain records to provide evidence that the planned quality activities have been carried out, assurance, namely business assurance for the executive, user assurance for the senior user(s) and and summarize those activities that are planned or have taken place in some form of quality supplier assurance for the senior supplier(s). Project assurance is therefore independent of the register project manager but not independent of the project. specify the customer’s expectations and prioritized criteria for ther project in the project production description Customer’s quality expectations is a statement about the quality expected from the project use lessons to inform quality planning, the definition of quality expectations and quality criteria product, captured in the project product description. (PRINCE2’s learn from experience principle). Acceptance criteria is a prioritized list of criteria that the project product must meet before the customer will accept it (such as measurable definitions of the attributes required for the set of products to be acceptable to key stakeholders). 16 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 17 Plans It may be optionally used for team plans. PRINCE2 recommends the steps shown in Figure 9.2 for product-based planning although alternative approaches may be used. PRINCE2 recommends the steps shown in Figure 9.6 for defining and analyzing the products to produce The purpose of the plans theme is to facilitate communication and control by defining the a product breakdown structure, although alternative approaches may be used means of delivering the products (the where and how, by whom, and estimating the when and how produce specific plans for managing exceptions (PRINCE2’s manage by exception principle) much). define the roles and responsibilities for planning (PRINCE2’s defined roles and responsibilities principle) The purpose of the plans theme use lessons to inform planning (PRINCE2’s learn from experience principle). The purpose of the plans theme is to facilitate communication and control by defining the means of delivering the products (the where and how, by whom, and estimating the when and how much). The purpose of the project plan, stage plan, exception plan, team plan Plan A detailed proposal for doing or achieving something which specifies the what, when, how, and by whom it will be achieved. Project plan A high level plan showing the major products of the project, when they will be delivered, and at what cost. An initial project plan is presented as part of the PID. This is revised as information on actual progress appears. It is a major control document for the project board to measure actual progress against expectations. * Stage plan A detailed plan used as the basis for project management control throughout a management stage. Exception plan A plan that often follows an exception report. For a stage plan exception, it covers the period from the present to the end of the current management stage. If the exception is at project level, the project plan will be replaced. Figure 9.2 PRINCE2’s recommended approach to product-based planning Team plan An optional level of plan used as the basis for team management control when executing work packages. PRINCE2’s minimum requirements for applying the plans theme To the following PRINCE2, a project must, as a minimum: ensure that plans enable the business case to be realized (PRINCE2’s continued business justification principle) have at least two management stages: an initiation stage and at least one further management stage. The more complex and risky a project, the more management stages that will be required (PRINCE2’s manage by stages principle) produce a project plan for the project as a whole and a stage plan for each management stage (PRINCE2’s manage by stages principle) use product based planning for the project plan, stage plans, and exception plans. 18 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 19  The purpose of the risk management approach, risk register The risk management approach describes how risk will be managed on the project. This includes the specific processes, procedures, techniques, standards and responsibilities to be applied. The risk register provides a record of identified risks relating to the project, including their status and history. It is used to capture and maintain information on all the identified threats and opportunities relating to the project. PRINCE2’s minimum requirements for applying the risk theme To be following PRINCE2, a project must, as a minimum: define its risk management approach, which must minimally cover Figure 9.6 PRINCE2’s recommended approach to defining and analyzing the products - how risks are identified and assessed, how risk management responses are planned and implemented, and how the management of risk is communicated throughout the project life-cycle Although the use of management stages in a PRINCE2 project is mandatory, the number of - assessing whether identified risks might have a material impact on the business management stages is flexible and depends on the scale, duration and risk of the project. Defining justification of the project (PRINCE2’s continued business justification principle) management stages is fundamentally a process of balancing: - the roles and responsibilities for risk management (PRINCE2’s defined roles and * responsibilities principle) how far ahead in the project it is sensible to plan maintain some form of risk register to record identified risks and decisions relating to their where the key decision points need to be on the project. analysis, management, and review ensure that project risks are identified, assessed, managed, and reviewed throughout the Risk project life cycle use lessons to inform risk identification and management (PRINCE2’s learn from experience principle). The purpose of the risk theme is to identify, assess, and control uncertainty and, as a result, improve the ability of the project to succeed. Risk is an uncertain event or set of events that, should it occur, will have an effect on 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. Risk budget is a sum of money to fund specific management responses to the project’s threats and opportunities (for example to cover the costs of any contingent plans should a risk materialize). The risk budget is based on the aggregate cost of all the project’s planned risk responses. 20 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 21 Key concepts related to risk, and the differences The recommended risk management procedure between them: recommended risk response types The procedure consists of five steps, the first four of which are sequential: Threat An uncertain event that could have a negative impact on objectives or benefits. 1. Identify Context and risks Opportunity For uncertain events that would have a positive impact on objectives. 2. Assess Estimate and evaluate Risk response Actions that may be taken to bring a situation to a level where exposure to risk is 3. Plan acceptable to the organization. 4. Implement Avoid a threat/exploit an opportunity. Reduce a threat/enhance an opportunity. 5. Communicate The outputs of any of the other steps may need to be communicated to Transfer the risk (threat or opportunity). stakeholders at any point in the process. Share the risk (threat or opportunity). Accept the risk (threat or opportunity). Prepare contingent plans (threat or opportunity). Risk owner A named individual who is responsible for the management, monitoring, and control of all aspects of a particular risk assigned to them, including the implementation of the selected responses to address the threats or to maximize the opportunities. Risk actionee A nominated owner of an action to address a risk. Some actions may not be within the remit of the risk owner to control explicitly; in that situation there should be a nominated owner * of the action to address the risk. He or she will need to keep the risk owner apprised of the situation. In many cases, the risk owner and risk actionee are likely to be the same person. The risk owner should be the person most capable of managing the risk. Allocating too many risks to any one individual should be avoided. Risk cause The source of the risk (the event or situation that gives rise to the risk). These are often referred to as risk drivers. They are not risks in themselves, but the potential trigger points for risk. These may be either internal or external to the project. Figure 10.1 The risk management procedure Risk event The area of uncertainty in terms of the threat or the opportunity. Risk effect The effect the risk can have on the project/organization. All the steps are repeatable. When additional information becomes available, it is often necessary to repeat earlier steps based on the new information. Risk impact The impact(s) that the risk would have on the project objectives should the risk materialize. Risk probability How likely the risk is to happen. Risk proximity The time factor of risk (i.e. when the risk may occur). The impact of a risk may vary in severity depending on when the risk occurs. 22 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 23 Change Types of issues The purpose of the change theme is to identify, assess, and control any potential and approved Types of issue Definition Examples changes to the project baselines. Request for change A proposal for a change to a baseline. The senior user would like to increase A change budget is a sum of money that the customer and supplier agree will be used to fund the the capacity of a product from 100 to cost of requests for change, and possibly also their analysis costs. 150 users. The change control approach identifies how and by whom the project’s products will be Off-specification Something that should be provided Advice from a supplier that they can controlled and protected. by the project, but currently is not no longer deliver one of the products (or is forecast not to be). It might be specified by the customer. Configuration item record A record that describes the status, version, and variant of a a missing product or a product not configuration item and any details of important relationships between them. meeting its specifications. Problem/concern Any other issue that the project Advice from a team manager that a Issue report Contains the description, impact assessment, and recommendations for a request for manager needs to resolve or escalate team member has been taken ill and change, off-specification, or a problem/concern. as a result the target end date for a work package will slip by a week. Product status account Provides a snapshot of the status of products within the project, Notification that one of the suppliers management stage or a particular area of the project has gone bankrupt, resulting in the need to identify and engage a new PRINCE2’s minimum requirements for applying the supplier. change theme Table 11.1 Type of issues * To be following PRINCE2, a project must, as a minimum: The recommended issue and change control define its change control approach. This approach must minimally cover - how issues are identified and managed procedure - assessing whether identified issues might have a material impact on the business justification of the project (PRINCE2’s continued business justification principle) Capture Determine issue type and severity/priority, register/log the issue. - the roles and responsibilities for change control (PRINCE2’s defined roles and Assess Assess issue’s impact on project objectives/business case and project risk profile, responsibilities principle), including a defined change authority check severity/priority. define how product baselines are created, maintained, and controlled Propose Identify, evaluate, and recommend options. maintain some form of issue register to record identified issues and decisions relating to their Decide Escalate issue beyond delegated authority, approve, reject, or defer recommended analysis, management, and review option ensure that project issues are captured, assessed, managed, and reviewed throughout the Implement Take corrective action, update records and plans. project life cycle use lessons to inform issue identification and management (PRINCE2’s learn from experience principle). 24 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 25  Work package The set of information relevant to the creation of one or more products. It will contain a description of the work, the product description(s), details of any constraints on production, and confirmation of the agreement between the project manager and the person or team manager who is to implement the work package that the work can be done within the constraints. End stage report A report given by the project manager to the project board at the end of each management stage of the project. This provides information about the project’s performance during the management stage and the project status at the management stage end. End project report A report given by the project manager to the project board, confirming the handover of all products. It provides an updated business case and an assessment of how well the project has done against the original PID. Checkpoint report A progress report of the information gathered at a checkpoint, which is given by a team to the project manager and which provides reporting data as defined in the work package. Highlight report A time-driven report from the project manager to the project board on management stage progress. Exception report A description of the exception situation, its impact, options, recommendation, and impact of the recommendation. This report is prepared by the project manager for the project board. Figure 11.1 Issue and change control procedure PRINCE2’s requirements for the progress theme * Progress To be following PRINCE2, a project must, as a minimum: The purpose of the progress theme is to: define its approach to controlling progress in the PID be managed by stages (PRINCE2’s manage by stages principle) establish mechanisms to monitor and compare actual achievements against those planned set tolerances and be managed by exception against them (PRINCE2’s manage by exception provide a forecast for the project’s objectives and continued viability principle) control any unacceptable deviations. review the business justification when exceptions are raised (PRINCE2’s continued business justification principle) Daily log Used to record informal issues, required actions, or significant events not captured by learn lessons (PRINCE2’s learn from experience principle). other PRINCE2 registers or logs. It can act as a project diary for the project manager. It can also be used as a repository for issues and risks during the starting up of a project process if the other registers have not been set up. Lessons log Used as a project repository for lessons that apply to this project or future projects. Lessons report Used to support the lessons log if more information is required. It can be used to pass on any lessons that can be usefully applied to other projects. 26 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 27 Key concepts related to progress How exceptions are reported Exceptions are situations where it can be forecast that there will be a deviation beyond the Event-driven and time-driven controls tolerance levels agreed between the project manager and the project board (or between the project PRINCE2 provides two types of progress control throughout the life of a project. board and corporate, programme management, or the customer). One is event-driven controls: these take place when a specific event occurs. For example: WORK PACKAGE-LEVEL EXCEPTIONS the end stage assessment at the end of a management stage Team manager should inform the project the completion of the PID manager by raising an issue. the creation of an exception report. STAGE-LEVEL EXCEPTIONS The other is time-driven controls: these take place at predefined periodic intervals. For example: Project manager should produce an issue report and then an exception report for the project board. The board may then request an exception plan or take other action. monthly highlight reports for the project board weekly checkpoint reports. PROJECT-LEVEL EXCEPTIONS If project tolerances are forecast to be exceeded the project board must refer this to corporate, How tolerances are set programme or customer for a decision. Tolerances are the permissible deviation above and below a plan’s target for cost and time without escalating the deviation to the next level of management. There may also be tolerances for quality, scope, benefits, and risk. Tolerances are set against six aspects of performance for the respective level of the plan: * Cost 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. For example, a project might be required to deliver all of the must do, ‘mandatory’ requirements but be permitted to deliver only 50 per cent or more of its should do, ‘desirable’ requirements Benefits The degree to which it is permissible to under-deliver or over-deliver benefits (realized or estimated). Risk Limits on the plan’s aggregated risks. 28 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 29 4. PRINCE2 processes and how they are The purpose, objectives, and context of the directing a project process, including the purpose of the PID carried out throughout projects The purpose of the directing a project process is to enable the project board to be accountable for the project’s success by making key decisions and exercising overall control while delegating day-to-day The purpose of the starting up a project process is to ensure that the prerequisites for management of the project to the project manager. initiating a project are in place by answering the question: Do we have a viable and worthwhile project? The decision to start the project must be explicit; the activities from starting up a project Project initiation documentation A compilation of all the documentation developed during the happen before this decision. initiation that will be used to gain project board approval to proceed. Project brief Used to provide a full and firm foundation for the initiation of the project and is The objective of the directing a project process is to ensure that: created in the starting up a project process. there is authority to initiate the project The objective of the starting up a project process is to ensure that: there is authority to deliver the project product management direction and control are provided throughout the project’s life there is a business justification for initiating the project (documented in an outline business the project remains viable case) corporate, programme management, or the customer has an interface to the project all the necessary authorities exist for initiating the project there is authority to close the project sufficient information is available to define and confirm the scope of the project (in the project plans for realizing the post-project benefits are managed and reviewed. brief) the various ways the project can be delivered are evaluated and a project approach selected individuals are appointed who will undertake the work required in project initiation and/or will take significant project management roles in the project. the work required for project initiation is planned (documented in a stage plan) * time is not wasted initiating a project based on unsound assumptions regarding the project’s scope, timescales, acceptance criteria, and constraints. Context shown on the figure. Figure 14.1 Overview of starting up a project 30 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 31 Context shown on the figures below. Figure 15.1 Overview of directing a project The purpose, objectives, and context of the initiating a project process The purpose of the initiating a project process is to establish solid foundations for the project, enabling the organization to understand the work that needs to be done to deliver the project * product before committing to a significant spend. Figure 16.1 Overview of initiating a project The objective of the initiating a project process is to ensure that there is a common understanding of: the reasons for doing the project, the benefits expected, and the associated risks the scope of what is to be done and the products to be delivered how and when the project product will be delivered and at what cost who is to be involved in the project decision-making how the quality required will be achieved how baselines will be established and controlled how risks, issues and changes will be identified, assessed, and controlled how progress will be monitored and controlled who needs information, in what format, and at what time how the corporate, programme management, or customer method will be tailored to suit the project. Context shown on the figure. 32 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 33 The purpose, objectives, and context of the controlling Context shown on the figure. a stage process The purpose of the controlling a stage process is to assign work to be done, monitor such work, deal with issues, report progress to the project board, and take corrective actions to ensure that the management stage remains within tolerance. The objective of the controlling a stage process is to ensure that: attention is focused on delivery of the management stage’s products; Any movement away from the direction and products agreed at the start of the management stage is monitored to avoid uncontrolled change and loss of focus risks and issues are kept under control the business case is kept under review the agreed products for the management stage are delivered to stated quality standards, within cost, effort, and time agreed, and ultimately in support of the achievement of the defined benefits the project management team is focused on delivery within the tolerances laid down. * Figure 17.1 Overview of controlling a stage 34 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 35 The purpose, objectives, and context of the managing Therefore, the process should be executed at, or close to, the end of each management stage. product delivery process The objective of the managing a stage boundary process is to: The purpose of the managing product delivery process is to control the link between the assure the project board that all products in the stage plan for the current management stage project manager and the team manager(s), by agreeing the requirements for acceptance, execution have been completed and approved and delivery. prepare the stage plan for the next management stage review and, if necessary, update the PID; in particular the business case, project plan, project The objective of the managing product delivery process is to ensure that: approaches, project management team structure and role descriptions provide the information needed for the project board to assess the continuing viability of the work on products allocated to the team is authorized and agreed project team managers, team members, and suppliers are clear as to what is to be produced and record any information or lessons that can help later management stages of this project and/ what is the expected effort, cost, or timescales or other projects the planned products are delivered to expectations and within tolerance request authorization to start the next management stage. accurate progress information is provided to the project manager at an agreed frequency to ensure that expectations are managed. For exceptions, the objectives of the managing a stage boundary process are to: Context shown on the figure. review and, if necessary, update the PID; in particular the customer’s quality expectations, project approaches and controls, and role descriptions provide the information needed for the project board to assess the continuing viability of the project prepare an exception plan as directed by the project board seek approval to replace the project plan or stage plan for the current management stage with the exception plan. * Figure 18.1 Overview of managing product delivery The purpose, objectives, and context of the PRINCE2 managing a stage boundary process The purpose of the managing a stage boundary process is to enable the project manager to provide the project board with sufficient information to be able to: review the success of the current management stage approve the next stage plan review the updated project plan confirm continued business justification and acceptability of the risks. 36 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 37 Context shown on the figure. Context shown on the figure. * Figure 20.1 Overview of closing a project Figure 19.1 Overview of managing a stage boundary The purpose, objectives, and context of the PRINCE2 closing a project process The purpose of the closing a project process is to provide a fixed point at which acceptance of the project product is confirmed, and to recognize that objectives set out in the original PID have been achieved (or approved changes to the objectives have been achieved), or that the project has nothing more to contribute. The objective of the closing a project process is to: verify user acceptance of the project product ensure that the host site is able to support the products when the project is disbanded review the performance of the project against its baselines assess any benefits that have already been realized and update the benefits management approach to include any post-project benefit reviews ensure that provision has been made to address all open issues and risks, with follow-on action recommendations. 38 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 39 Thank you for completing the PRINCE2® Foundation course. Please take a few minutes to give us your feedback on your experiences and learning from the course by completing the online course evaluation survey here. Powering Best Practice ISBN 9789925342662