The Fundamentals of PRINCE2

A PRINCE2 project is driven by its business case, which describes the organization’s justification, commitment and rationale for the deliverables or outcome. This business case is regularly reviewed during the project to ensure the objectives are still being met.

To this end, PRINCE2’s key features are:

• Ensuring a focus on business justification.
• Providing a defined organizational structure for the project management team.
• Placing emphasis on dividing the project into manageable and controllable stages.
• Allowing flexibility to be applied at a level appropriate to the project.

The PRINCE2 Process Model

As well as being product-based, PRINCE2 is process-led, which means it is easily tailored to suit a variety of projects. It stresses the importance of defining the key inputs and outputs of each process, together with the specific objectives to be achieved and the activities to be carried out.

The PRINCE2 process model is shown below:

Planning

This is a process that is repeated throughout the entire project, and is a pivotal part of all the other PRINCE2 processes. Planning ensures a product-based start to the project by outlining the following steps:

• Establish what products are needed.
• Determine the sequence in which each product should be produced.
• Define the form and content of each product.
• Resolve what activities are necessary for the creation and delivery of products.

Directing a Project

Directing a Project runs from start-up until closure. A PRINCE2 project should have a Project Board, whose members should take responsibility for the project direction. Made up of parties that represent the interests of the customer, the user and the supplier, the Project Board need to liaise with the Project Manager, who assumes day-to-day ownership of the project. The Project Board should manage by exception (i.e. receive information and make decisions only when necessary and relevant), monitor via reports, and control through a number of decision points.

The Project Board has four key responsibilities:

• Project initiation. The project start-up is crucial, with clear objectives defined, key team members identified and selected, and monitoring and evaluation measures in place.
• Stage boundaries. The board should define points in the project where results will be checked and, if necessary, secure more resources.
• Ad hoc direction. This involves monitoring progress, providing advice and guidance, and managing by exception.
• Project closure. Finally, the board should be proactive in making sure the project has achieved its outcomes, and control its eventual closure.

Starting Up a Project

This is the first defined process in PRINCE2. It is a pre-project stage designed to ensure the mandatory elements for its success are in place. The process requires a project mandate or project charter. This document defines, in high level terms, the reason for the project and its success criteria (i.e. the desired outcome). This phase of the project should be short and built around the production of three elements:

• ensuring that any information required by the project team is readily available
• establishing who is needed in the project team, and then appointing individuals to those roles
• creating a plan for the project to go forward

Initiating a Project

This stage focuses on getting the project up and running. Its main objectives are to:

• agree that there is sufficient justification to proceed with the project
• establish a stable management basis on which to proceed
• document and confirm that an acceptable business case exists for the project
• ensure a firm and accepted foundation for the project prior to any work commencing
• agree to the commitment of resources for the project
• enable and encourage the Project Board to take ownership of the project
• provide the baseline for the decision-making processes required during the project’s life cycle
• ensure the investment of time and effort by the project is made wisely, taking into consideration any risks

A Project Initiation Document should be prepared to define the project, form the basis for its management and the assessment of overall success.

Controlling a Stage

The Project Manager’s principal function is to ensure that each stage of the project stays on course and has the resources in place to deal with unexpected events.

Throughout each stage of a project, there will be a control cycle consisting of:

• authorizing work that is necessary to ensure the stage is completed
• gathering progress information about the work
• anticipating changes
• reviewing the situation
• reporting to those working on the project, and to the Project Board
• taking any necessary corrective action

Managing Project Delivery

The objective of this process is to ensure the planned outputs are created and delivered. This is achieved by:

• making certain that work on products allocated to the team is authorized and agreed
• regular assessment of work progress
• ensuring that work is completed to the standards required by the project
• obtaining approval or sign-off by all relevant parties for the work

Managing Stage Boundaries

This process provides the Project Board with opportunities to review whether to continue with the project or not. The objectives of these key decision points are to:

• confirm to the Project Board that all deliverables planned in the current Stage Plan have been completed as defined
• provide the information needed for the Project Board to assess the continuing viability of the project
• provide the Project Board with information needed to approve the current stage’s completion and authorize the start of the next stage
• record any measurements or lessons that can help later stages of this project, as well as others

Closing a Project

The purpose of this process is to execute a controlled close to the project. Most of the work involves the Project Manager preparing and documenting information to present to the Project Board, who should then confirm that the project may close. This is done by:

• checking the extent to which the objectives or aims set out at the Initiating a Project stage have been met
• ensuring that all expected products have been confirmed and have been accepted by the customer
• confirming that, where appropriate, maintenance and operational arrangements are in place for the successful delivery of products
• making recommendations for follow-up activities or action points
• capturing lessons learned from the project, and completing a Lessons Learned Report, which should document standards that have been refined, improved or changed so that other project teams can apply them
• preparing an End of Project Report, which compares how well the project has done in comparison to the Project Initiation document

A Summary of PRINCE2’s Benefits

PRINCE2 encompasses established and proven best practice project management, and provides projects with:

• a controlled and organized beginning, middle and end
• regular reviews of progress against planned activities
• automatic management control of any deviations from the plan
• the timely involvement of management and stakeholders throughout the project
• effective communication channels between the project, the project management and the rest of the organization