PRINCE 2

PRINCE2 OVERVIEW PRINCE2 - PRojects IN Controlled Environments is a written description of how to manage a project in a logical, organized way, following defined steps. It is not a tool or technique, but a structured management process which emphasizes the importance of an organized and controlled start, middle and end to a project. PRINCE2 is considered internationally as the best practice framework for Project Management. The PRINCE2 project management method is now a de-facto standard in the UK. Widely adopted by the public sector in the UK and more recently adopted by private sector organisations in the UK, Europe, and South Africa. PRINCE2 is a flexible, structured method for effective project management. PRINCE2 seeks to overcome the problems which lead to failure on many projects. PRINCE2 is free to use. The process based approach of PRINCE2 acts as a guide through a set of activities to achieve the desired outcomes. PRINCE2 defines 45 separate sub-processes and organizes these into eight processes as follows:

Starting Up a Project (SU) Planning (PL) Initiating a Project (IP) Directing a Project (DP) Controlling a Stage (CS) Managing Product Delivery (MP) Managing Stage Boundaries (SB) Closing a Project (CP)

Starting up a project (SU) In this process the project team is appointed and a project brief (describing, in outline, what the project is attempting to achieve and the business justification for doing so) is prepared. In addition the overall approach to be taken is decided and the next stage of the project is planned. Once this work is done, the project board is asked to authorize the next stage, that of initiating the project. Planning (PL) PRINCE2 advocates product based planning which means that the first task when planning is to identify and analyze products. Once the activities required to create these products are identified then it is possible to estimate the effort required for each and then schedule activities into a plan. There is always risk associated with any work and this must be analyzed. Finally, this process suggests how the format of plans can be agreed and ensures that plans are completed to such a format. Initiating a project (IP) This process builds on the work of the Start Up (SU) activity and the project brief is augmented to form a Business Case. The approach taken to ensure quality on the project is agreed together with the overall approach to controlling the project itself (project controls). Project files are also created as is an overall plan for the project. A plan for the next stage of the project is also created. The resultant information can be put before the project board for them to authorize the project itself. Directing a project (DP) These sub-processes dictate how the Project Board should control the overall project. As mentioned above, the project board can authorize an initiation stage and can also authorize a project. Directing a Project also dictates how the project board should

authorize a stage plan, including any stage plan that replaces an existing stage plan due to slippage or other unforeseen circumstances. Also covered is the way in which the board can give ad hoc direction to a project and the way in which a project should be closed down. Controlling a stage (CS) PRINCE2 suggests that projects should be broken down into stages and these sub-processes dictate how each individual stage should be controlled. Most fundamentally this includes the way in which work packages are authorized and received. It also specifies the way in which progress should be monitored and how the highlights of the progress should be reported to the project board. A means for capturing and assessing project issues is suggested together with the way in which corrective action should be taken. It also lays down the method by which certain project issues should be escalated to the project board. Managing product delivery (MP) This process consists of three sub-processes and these cover the way in which a work package should be accepted, executed and delivered. Managing stage boundaries (SB) The Controlling a Stage process dictates what should be done within a stage, Managing Stage Boundaries (SB) dictates what should be done towards the end of a stage. Most obviously, the next stage should be planned and the overall project plan, risk log and business case amended as necessary. The process also covers what should be done for a stage that has gone outside its tolerance levels. Finally, the process dictates how the end of the stage should be reported. Closing a project (CP) This covers the things that should be done at the end of a project. The project should be formally de-commissioned (and resources freed up for allocation to other activities), follow on actions should be identified and the project itself be formally evaluated. Components PRINCE2 has a number of components as follows:

Business Case The justification behind the project. Organisation The way in which the personnel involved in the project are structured. Plans Documents describing what the project should accomplish, how the work should be carried

out, when it should be carried out and by whom. Controls The way in which the project manager and project board should exercise control over

the project. Management of Risk The way in which the project should approach and manage risk. Quality in a Project Environment The way in which the project should ensure that a quality

product is delivered. Configuration Management The way in which the project's products are identified and tracked. Change Control The way in which the project manages any changes to specification or scope of

its products.

Techniques

PRINCE2 also has the following techniques Product Based Planning Change Control Quality Reviews Why use a project management method? Project failures are all too common - some make the headlines, the vast majority are quickly forgotten. The reasons for failure are wide and varied. Some common causes are:

Lack of co-ordination of resources and activities Lack of communication with interested parties, leading to products being delivered which are not

what the Customer wanted Poor estimation of duration and costs, leading to projects taking more time and costing more

money than expected Insufficient measurable Inadequate planning of resources, activities, and scheduling Lack of control over progress so that projects do not reveal their exact status until too late Lack of quality control, resulting in the delivery of products that are unacceptable or unusable.

Without a project management method, those who commission a project, those who manage it and those who work on it will have different ideas about how things should be organized and when the different aspects of the project will be completed. Those involved will not be clear about how much responsibility, authority and accountability they have and, as a result, there will often be confusion surrounding the project. Without a project management method, projects are rarely completed on time and within acceptable cost - this is especially true of large projects. A good project management method will guide the project through a controlled, well-managed, visible set of activities to achieve the desired results. PRINCE2 adopts the principles of good project management to avoid the problems identified above and so helps to achieve successful projects. Key Features The key features of Prince are:

Its focus on business justification A defined organization structure for the project management team Its product-based planning approach Its emphasis on dividing the project into manageable and controllable stages Its flexibility to be applied at a level appropriate to the project.

Benefits of using Prince PRINCE2 provides benefits to the managers and directors of a project and to an organization, through the controllable use of resources and the ability to manage business and project risk more effectively. PRINCE2 embodies established and proven best practice in project management. It is widely recognized and understood, providing a common language for all participants in a project. PRINCE2 encourages formal recognition of responsibilities within a project and focuses on what a project is to deliver,

why, when and for whom. PRINCE2 provides projects with:

A controlled and organized start, middle and end Regular reviews of progress against plan and against the Business Case flexible decision points Automatic management control of any deviations from the plan The involvement of management and stakeholders at the right time and place during the project Good communication channels between the project, project management, and the rest of the

organization. Managers using PRINCE2 are able to:

project.

Establish terms of reference as a pre-requisite to the start of a project Use a defined structure for delegation, authority and communication Divide the project into manageable stages for more accurate planning Ensure resource commitment from management is part of any approval to proceed Provide regular but brief management reports Keep meetings with management and stakeholders to a minimum but at the vital points in the

Those who will be directly involved with using the results of a project are able to:

Participate in all the decision-making on a project If desired, be fully involved in day-to-day progress Provide quality checks throughout the project e ensure their requirements are being adequately

satisfied.