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17spm_L18

PRINCE2

SPM 2017 © Ron Poet Lecture 18 1

Introduction

PRINCE2

� Projects in Controlled Environments.
� A project management methodology

o IT Projects
o Construction Projects
o . . .o . . .

� Launched in 1996
o Prince used earlier

� PRINCE2 2009
o Most recent edition.

� 2014: Accredited by the Cabinet Office and Capita
o There are PRINCE2 exams!

SPM 2017 © Ron Poet Lecture 18 2

Six Objectives: Quality

� We need to provide measurable estimates for the six objectives.

� Quality
o The deliverable is called the project product.

� Customers generate the customer’s quality expectations� Customers generate the customer’s quality expectations
o Often relatively vague.

� Must be turned into acceptance criteria, which are measurable, as
soon as possible.

� Key document is the Project Product Description, part of the
Business Case.

SPM 2017 © Ron Poet Lecture 18 3

Objective: Cost, Benefits, Time

� Cost
o Project manager is not the subject matter expert and so must get

cost estimates from suppliers as soon as possible
o Part of the Business Case.

� Benefits
o What will the sponsors get from the project.
o Usually expressed in financial terms.
o Sometimes hard to measure but real.

� Time
o This is the elapsed time.
o Get from suppliers and recorded in the Business Case.

SPM 2017 © Ron Poet Lecture 18 4

Objectives: Scope, Risk

� Scope
o What the project will and will not do.

� Risk
o Identify major risks as early as possible.o Identify major risks as early as possible.

SPM 2017 © Ron Poet Lecture 18 5

Quality – Cost – Time Triangle

� Quality – Cost – Time Triangle.
o Only two of these are independent, the other variable can be

derived from them. An equation.
o The project is in equilibrium if the other variable is correctly

specified. Is the equation true?specified. Is the equation true?
o Will need to negotiate to make sure of equilibrium.
o No one benefits from an underfunded project that has to be

delivered too soon. It will fail, damaging everyone.

� Ongoing Validity of the Business Case
o Keep checking that is still in equilibrium.

SPM 2017 © Ron Poet Lecture 18 6

The Seven Principles

� Continued business justification
� Defined roles and responsibilities
� Manage by exception
� Manage by stages
� Focus on products� Focus on products
� Learn by experience

� Tailor to the project environment
o Filling out all the PRINCE2 forms is overly bureaucratic.
o Tailoring means deciding which forms don’t need to be filled out.
o Tailor to the project, depending on size.

SPM 2017 © Ron Poet Lecture 18 7

The Seven Themes

� Business Case (BC)
� Organisation (ORG)
� Quality (QUAL)
� Plans (PLS)
� Risk (RISK)� Risk (RISK)
� Change (CHGE)
� Progress (PROG)

� Abbreviations can’t be more than 4 letters long!

SPM 2017 © Ron Poet Lecture 18 8

The Seven Processes

� Starting up a Project (SU)
� Initiating a Project (IP)
� Managing a Product Delivery (MP)
� Controlling a Stage (CS)
� Managing a Stage Boundary (SB)� Managing a Stage Boundary (SB)
� Closing a Project (CP)
� Directing a Project (DP)

SPM 2017 © Ron Poet Lecture 18 9

Products

� Management Products
o Documents with specific PRINCE2 form and structure.
o Defined in detail: purpose, composition.
o Business Case, plans, progress reports, logs, registers.

� Specialised Products
o Unique to the particular project.
o Can be documents.
o Can be buildings etc.

SPM 2017 © Ron Poet Lecture 18 10

Project Management Hierarchy

� Corporate Management
o Sponsor the project, along with many others.

� Project Board
o The Executive represents the business interests and makes sure it

delivers value for money.delivers value for money.
o The Senior Users who define the requirements and check the

products to make sure they satisfy the requirements.
o The Senior Suppliers who create the project products.

� Project Manager
o Day to day control of the project.

� Team Manager
o Manages a small team.

SPM 2017 © Ron Poet Lecture 18 11

Manage By Exception

� Only meet with higher levels of management if something is wrong (an
exception).

� Otherwise just send progress reports.

� EG Project Board to Project Manager� EG Project Board to Project Manager
o You have £200k +- £5k and 4 months +- 1 week. We only need to

meet if you are going to be outside the permitted range.

� Changes, such as the loss of a key person, and reviews of the business
case can also lead to exceptions.

SPM 2017 © Ron Poet Lecture 18 12

Manage By Stages

� The project is split into stages, which do not need to be the same
length.

� Progress is reviewed by the Project Board at the end of each stage.

� Stages are typically:� Stages are typically:
o Pre-project: A very simple business case, is it worth doing.
o Initiation
o Design
o Build
o Install and Train Staff

� The number and type of stages are not fixed in PRINCE2.
o Other stages can be used.

SPM 2017 © Ron Poet Lecture 18 13

Starting Up A Project

� Corporate Management
o Issue a project mandate (short description and justification)
o Appoint the Project Board.

� The Project Manager is appointed by either the Executive or Project
Board.Board.

� The Project Manager initiates the Start Up Process which produces the
Project Brief, which contains:
o Business Case
o Project Product Description together with measurable acceptance

criteria.
� We can now construct our Quality – Cost – Time Triangle and see if it

is in equilibrium.

SPM 2017 © Ron Poet Lecture 18 14

Initiating a Project

� The Business Case is valid and the project can start.
� This stage generates the Project Initiation Document (PID)

o Project Plan
o Updated parts of the Project Brief.

� If the Business Case is still valid then the Board will authorise the
project.

� The Stage Boundary process is initiated to produce a Next Stage Plan.

SPM 2017 © Ron Poet Lecture 18 15

Controlling a Work Related Stage

� Negotiate the Work Packages with the Team Managers.
o Allocate time and money.

� Work Packages are undertaken by Suppliers
o Within the host organisation, oro Within the host organisation, or
o Undertaken by external suppliers.

� Preparing requirements documents can be undertaken by Users.

� Team Managers produce weekly CheckPoint Reports (progress
reports)

� Project Manager produces a monthly Highlight Report for the Board.
� Exceptional procedures can also be undertaken.

SPM 2017 © Ron Poet Lecture 18 16

Managing a Stage Boundary

� Update the Project Plan with
o Progress
o Revised forecasts for the remainder of the work.
o Update time and cost estimates in the Business Case.

� Produce an End Stage Report and a Next Stage Plan for the Board.

� The Board holds an end stage assessment to see if they can make the
business case for the project to continue.

� Documents can be neglected and become out of date during a stage.
This should not happen, but the stage boundary is a time to make sure
they are up to date.

SPM 2017 © Ron Poet Lecture 18 17

Closing a Project

� The Project Manager will produce an End Project Report.
� The Board can then authorise project closure.

� The project management team is disbanded.

SPM 2017 © Ron Poet Lecture 18 18

Exception Procedure

� If we exceed our budget or time tolerances, or other problems arise, the
Project Manager must write an Exception Report for the Board.

� If the project can still continue, the Board will ask the Project Manager
to produce an Exception Plan rather than a Stage Plan and follow the to produce an Exception Plan rather than a Stage Plan and follow the
Exception Stage Boundary process.

� The Board may recommend a Premature Close if the Business Case no
longer support the project.
o The project may be rescued by a major change in scope.
o This would involve major replanning.

SPM 2017 © Ron Poet Lecture 18 19