Project Management – Prince 2 Model Process

Introduction to PRINCE2

Blog Objectives

The main objective of this blog is to provide an overview of the PRINCE2 Process Model.

Course Contents

This blog covers the following points:

the trigger to start a project
the steps when starting a project and who does what
which documents are required
when certain documents are created and by whom
an overview of the major roles in the project
how the project moves from startup, to initiation, to stages until the project is closed
the typical inputs and outputs for each process
how the project board controls the project

What are Projects?

A project is a unique series of actions designed to accomplish a unique goal within specific time and cost limitations (source Wikipedia).

This is different from routine operation or processes. Processes are projects that repeats itself over and over again within an organization. Processes that repeat are referred to as “business as usual” or operations (e.g., maintenance of a software application).

Prince 2 defines project as a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case.”

The word organization refers to the project team, the persons involved in the project and how they relate to each other. Each project has a definite start and end, so it is temporary.

The word unique refers to the fact that these series of actions have not been done before.

Business Case is the document that exists in a PRINCE2 project. It includes information such as why the project is a good idea from a business point of view, the benefits, costs and time information.

Why a Project Management Method?

Project Management deals with administration of the project.

What is PRINCE2?

PRINCE2 is a generic method for Project Management. PRINCE2 separates the management layer from the work to create the required products that the project has to produce (specialist work). This means that the same management layer can be used for different types of projects. The Management Layer refers to the organization of the project, such as Project Board, Project Manager and Teams.

PRINCE2 is principle-based, meaning that a PRINCE2 project includes 7 principles. The 7 principles are:

Continued business justification
Learn from experience
Defined roles and responsibilities
Manage by stages
Manage by exception
Focus on products
Tailor to suit the project environment

Six controls / variables / six performance targets

The 6 variables / performance targets are : Timescales, Costs, Quality, Scope, Benefits and Risk.

Timescales: The question to ask for timescales: When will the project be finished?

Cost: Projects have to give a return on investment; therefore, the questions to ask are: Are the costs being controlled? and Are we within budget?

Quality: Will the product be usable at the end of the project (in other words fit for purpose)?

Scope: Is the scope well-defined and clear to all stakeholders? Care must be taken by the Project Manager to avoid scope creep, which is to allow new requirements to be added during the project.

Benefits: Why are we doing this project and what are the benefits? Benefits must be clear and known by the Project Manager, and the benefits need to be delivered.

Risk: All projects are unique and therefore have risk. How much risk can we take on and how can risk be managed?

PRINCE2 Structure

The PRINCE2 method consists of 4 main parts called Elements (also called Integrated Elements) to represent these 4 parts. These elements are:

Principles
Themes
Processes
Tailoring

Principles: PRINCE2 says that each project should consist of the 7 PRINCE2 principles (in other words, “best practices”).

Themes: Themes answer the question regarding what items must be continually addressed during each project, e.g., Business Case, Organization, Quality and Configuration Management.

Processes: Processes answer the question regarding what activities are done during the project and by whom. Processes also answers “What products are to be created and when?”

Tailoring: Tailoring answers one of the most common questions from a Project Manager, “How do I best apply PRINCE2 to my project or my environment?”

What does PRINCE2 not cover?

It’s important to note what PRINCE2 does not cover and this can be listed in 3 categories. These are:

Specialist Aspects
Detailed Techniques
Leadership Capability

Specialist Aspects refers to the fact that PRINCE2 is very generic and can be applied to any type of project.

Detailed Techniques: There are many techniques that can be used during a project like “Critical Path Analysis” or how best to run a brainstorm workshop. PRINCE2 advises to choose the techniques that are suitable for your project, but it does not provide information on them.

Leadership Capability: Leadership, motivational ability and other soft skills are important for good project management, but there are many different kinds of leadership skills and styles. PRINCE2 advises to choose the best training programs that suit your particular environment.

Organization

Project Organization Introduction

There are four levels of Project Management Structure (also called “Project Organization”) as shown below.

The Project Management Team has just three levels. The top level is the Project Board level and the lower level is the Team Manager level.

Note: The project team is a temporary structure; it is created for the project and is disbanded once the project is completed.

The Corporate or Programme Management Level at the top of the Project Management Structure is outside the project, so they do not participate in the project and therefore they are not a part of the project team. Corporate or Programme Management Level can be refereed to PMO’s, which stands for Programme Management Office, and can also have other names like Programme Office and Project Office.

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