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Project and Program Management PARTICIPANT HANDBOOK release 6.0.0 PRINCE2 ® Foundation Sample Material - Not for Reprint

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Page 1: PRINCE2 Foundation Participant Handbook

Project and Program Management

PARTICIPANT HANDBOOK

release 6.0.0 PRINCE2® Foundation

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www.ITpreneurs.com

Copyright © ITpreneurs and AXELOS Limited 2014. All rights reserved

Copyright Copyright and Trademark Information for Partners/Stakeholders. PRINCE2® is a registered trade mark of AXELOS Limited. The Swirl logo™ is a trade mark of AXELOS Limited. The PRINCE2® Accredited Training Organization logo is a trade mark of AXELOS Limited. No part of this document may be reproduced in any form without the written permission of both ITpreneurs and AXELOS Limited. Permission can be requested at www.ITpreneurs.com and [email protected]. Material in this document has been sourced from Managing Successful Projects with PRINCE2® 2009 Edition.

Copyright © ITpreneurs and AXELOS Limited 2014. All rights reserved. Please note that the information contained in this material is subject to change without notice. Furthermore, this material contains proprietary information that is protected by copyright. No part of this material may be photocopied, reproduced, or translated to another language without the prior consent of ITpreneurs Nederland B.V. The language used in this course is US English. Our sources of reference for grammar, syntax, and mechanics are from The Chicago Manual of Style, The American Heritage Dictionary, and the Microsoft Manual of Style for Technical Publications.

PRINCE2® Foundation, Classroom course, release 6.0.0

More on: http://www.prince-officialsite.com/

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Contents

i

List of icons vii

AcknowLedgements viii

foLLow us ix

moduLe 1: overview 1Course Agenda 2

1.1 Overview 4

1.2 PRINCE2 Overview 5

1.2.1 what does PRINCE2 stand for? 5

1.2.2 What is PRINCE2? 6

1.3 Project 7

1.3.1 Definition 7

1.3.2 What Makes Projects Different? 8

1.3.3 What do We Wish to Control 9

1.4 The Four Integrated Elements 10

1.4.1 The Principles 11

1.4.2 The Themes 13

1.4.3 The Processes 15

1.4.4 Tailoring a Project’s Environment 17

1.5 The Customer and Supplier Environments 18

1.6 Benefits of PRINCE2 19

1.7 Module Summary 20

moduLe 2: orgAnizAtion 23

2.1 Organization 24

2.2 Organization Theme 25

2.2.1 Purpose 25

2.2.2 Principles 26

2.3 Project Interests and the Project Management Team 27

2.4 Organization 29

2.5 Project Management Team 30

2.5.1 Responsibilities 30

2.5.2 Managing and Delivering Roles 31

2.6 Stakeholder 32

2.7 Communication Management Strategy 33

2.8 Module Summary 34

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Module 3: Business Case 373.1 Business Case 38

3.2 Business Case theme 39

3.2.1 Purpose 39

3.2.2 Principles 40

3.3 Output, Outcome, and Benefits 41

3.3.1 Definition 41

3.4 Management Products 42

3.4.1 Purpose 42

3.5 Module Summary 43

Module 4: Risk 454.1 Risk 46

4.2 Risk Theme 47

4.2.1 Purpose 47

4.3 Risk 48

4.3.1 Definition 48

4.3.2 What is at Risk? 49

4.3.3 Relation to Cause, Event, and Effect 50

4.3.4 Risk Appetite and Risk Tolerance 52

4.4 Risk Theme 53

4.4.1 Principles 53

4.5 Risk Management 54

4.5.1 Procedure 54

4.5.2 Five Steps - Identify 55

4.5.3 Five Steps – Assess 56

4.5.4 Five Steps – Plan 57

4.5.5 Five Steps - Implement 58

4.5.6 Five Steps - Communicate 59

4.6 Risk Responses 60

4.6.1 Threat Responses 61

4.6.2 Opportunity Responses 62

4.7 Risk Estimation 63

4.7.1 Probability, Impact, and Proximity 63

4.8 Risk Owner and Risk Actionee 64

4.8.1 Definition 64

4.9 Risk Budget 65

4.9.1 Purpose and Definition 65

4.10 Management Products 66

4.11 Module Summary 67

Module 5: Plans 715.1 Plans 72

5.2 Plans Theme 73

5.3 Levels of Plans 75

5.4 Levels of Plan and Inter-relationship 76

5.4.1 Project Plan 76

5.4.2 Stage Plan 77

5.4.3 Team Plan 78

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5.4.4 Exception Plan 79

5.5 Plans Theme 80

5.6 Product-based Planning 81

5.7 Module Summary 82

moduLe 6: QuALity 856.1 Quality 86

6.2 Quality Theme 87

6.2.1 Purpose 87

6.2.2 Principles 88

6.3 Management Products 89

6.3.1 Purpose 89

6.4 Quality Expectations and Acceptance Criteria 91

6.5 Quality Assurance and Project Assurance 92

6.6 Quality Planning and Quality Control 93

6.7 Quality Review 94

6.8 Module Summary 95

moduLe 7: chAnge 977.1 Change 98

7.2 Change Theme 99

7.2.1 Purpose and Approach 99

7.2.2 Principles 100

7.3 Management Products 101

7.3.1 Purpose 101

7.4 Type of Issues 102

7.5 Configuration Management Procedure 103

7.6 Issue and Change Control Procedure 104

7.7 Change Budget 105

7.8 Module Summary 106

moduLe 8: Progress 1078.1 Progress 108

8.2 Progress theme 109

8.2.1 Purpose 109

8.2.2 Principles 110

8.2.3 PRINCE2 Approach 111

8.3 Progress Control 112

8.3.1 Four Levels of Management 112

8.4 Management Stages 114

8.4.1 Technical Stages versus Management Stages 115

8.4.2 Event–Driven and Time-Driven Controls 116

8.5 Management Products 117

8.5.1 Purpose 117

8.6 Module Summary 119

moduLe 9: stArting uP A Project 1219.1 Starting up a Project 122

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9.1.1 Purpose 131

9.1.2 Objectives 124

9.1.3 Context 125

9.1.4 Activities 126

9.2 Project Brief 128

9.2.1 Purpose 128

9.3 Module Summary 129

moduLe 10: directing A Project 13110.1 Directing a Project 132

10.1.1 Purpose 133

10.1.2 Objectives 134

10.1.3 Context 135

10.1.4 Activities 136

10.2 Module Summary 138

moduLe 11: initiAting A Project 14111.1 Initiating a Project 142

11.1.1 Purpose 143

11.1.2 Objectives 144

11.1.3 Context 146

11.1.4 Activities 147

11.2 Project Initiation Documentation 149

11.2.1 Purpose 149

11.3 First Delivery Stage Plan 150

11.3.1 Trigger 150

11.4 Module Summary 151

moduLe 12: controLLing A stAge 15312.1 Controlling a Stage 154

12.1.1 Purpose 155

12.1.2 Objectives 156

12.1.3 Context 158

12.1.4 Activities 159

12.2 Module Summary 161

moduLe 13: mAnAging Product deLivery 16313.1 Managing Product Delivery 164

13.1.1 Purpose 165

13.1.2 Objectives 166

13.1.3 Context 167

13.1.4 Activities 168

13.2 Module Summary 169

moduLe 14: mAnAging A stAge BoundAry 17114.1 Managing a Stage Boundary 172

14.1.1 Purpose 173

14.1.2 Objectives 174

14.1.3 Context 175

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14.1.4 Activities 176

14.2 Module Summary 177

moduLe 15: cLosing A Project 17915.1 Closing a Project 180

15.1.1 Purpose 181

15.1.2 Objectives 182

15.1.3 Context 183

15.1.4 Activities 184

15.2 Module Summary 185

moduLe 16: exAm PrePArAtion guide 187

mock exAm 199

cAse study 225

exercises 229

Answers 237

syLLABus 281

gLossAry 307

reLeAse notes 325

feedBAck form 327

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viiCopyright © ITpreneurs and AXELOS Limited 2014. All rights reserved.

LIST OF ICONS

Refers to space for the students to take notes

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viii Copyright © ITpreneurs and AXELOS Limited 2014. All rights reserved.

www.ITpreneurs.com

Acknowledgements We would like to sincerely thank the experts who have contributed to and shaped PRINCE2®.

Reviewers: Yehia Abdel Fattah Ismail Senior consultant, Project Manger, Trainer. Hussam Kamal MORSY Managing Director, PRINCE2 & ITIL Consultant, CompEx for IT Ayilur Ramnath Consultant, Coach, Mentor and Trainer Jose Antonio Izquierdo Lopez Sales Engineer (SPAIN) at AlienVault Marcel Foederer Master Trainer for ITIL/Cobit 5/ISO20K/PRINCE2, Kepner Tregoe

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Copyright

Follow us

Before you start the course, please take a moment to:

“Like us” on Facebook http://www.facebook.com/ITpreneurs

“Follow us” on Twitter http://twitter.com/ITpreneurs

"Add us in your circle" on Google Plus http://gplus.to/ITpreneurs

"Link with us" on Linkedin http://www.linkedin.com/company/ITpreneurs

"Watch us" on YouTube http://www.youtube.com/user/ITpreneurs

Copyright © ITpreneurs and AXELOS Limited 2014. All rights reserved.

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Module1Overview

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PRINCE2 ® FOUNDATION

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COURSE AGENDA

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My Notes

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1.1 OVERVIEW

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My Notes

1.2 PRINCE2 OVERVIEW

1.2.1 WHAT DOES PRINCE2 STAND FOR?

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1.2.2 WHAT IS PRINCE2?

OverviewPRINCE2 is a structured project management method based on principles that originate from lessons learned from projects, both good and bad.

PRINCE2 helps to meet the ever-increasing demands of the dynamic business scenario while dealing with the challenges presented by the risks and complexities of project management. It achieves this through a controlled, structured, and systemic way of managing projects.

The PRINCE2 project management approach is process and product based and creates a clear and consistent project structure. Applying this approach helps you in your role as a Project Manager to achieve defi ned objectives within expected and realistic performance targets for time, costs, quality, scope, benefi ts, and risk.

A unique advantage of PRINCE2 is that this method can be applied to any type of project and can easily be implemented alongside the specialist, industry-specifi c models or development life cycles.

As we can see, PRINCE2 is a project management method. Now, let us try to understand what a project is.

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My Notes

1.3 PROJECT

1.3.1 DEFINITION

OverviewA key challenge for any organization in today’s world is to succeed in balancing two parallel competing imperatives—maintaining the current business operations, and transforming these operations. While transforming, you have to proactively manage the impact of business change, which must be in the best interests of the organization. Projects are the means by which we introduce this change in a temporary organization. When one or more business products are implemented in their new form, the need for the project is removed because the change is realized. In PRINCE2, the agreed Business Case describes the business justifi cation for the investments done to achieve the project outcome.

Project Defi nitionA project is defi ned as a temporary organization that is created for delivering one or more business products according to an agreed Business Case.

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1.3.2 WHAT MAKES PROJECTS DIFFERENT?

There are a number of characteristics that differentiate a project from day-to-day business operations, or business as usual.

Change— Projects are the ways of introducing some change. Temporary— A project cannot be permanent. It is temporary in nature. Once the desired change

is implemented, the need for the project stops. Thus, every project has a start and an end date. Cross-functional— To achieve the desired results, projects involve a team of people working

together. These people can belong to line-functional or cross-functional divisions from entirely different organizations. This can create stress situations in an organization.

Unique— An organization can undertake similar projects. But every project is unique in its own way. The team can be different, different projects can have different customers, and the location can be different too. All these factors combine to make each project unique.

Uncertainty— Projects are more risky than normal business. Every project faces different levels of uncertainty, threat, and opportunity.

Clearly, the characteristics listed above will introduce threats and opportunities other than those we typically encounter in the course of business. Projects are more risky than day-to-day business operations.Sam

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My Notes

1.3.3 WHAT DO WE WISH TO CONTROL

The performance of any project is dependent on six different variables. Therefore, to achieve better results, one should manage and control these six aspects of project performance. PRINCE2 helps plan, delegate, monitor, and control these six aspects:

Costs— When you start a project, there may be a particular budget in mind. But there may be several factors that can lead to overspending. It is important to always keep the cost and budget in mind.

Timescales— A project always has a start and an end date. The Project Manager should try to adhere to these dates.

Quality— In addition to fi nishing the project on time and within budget, the Project Manager must also achieve the project goals as expected. In terms of PRINCE2, the project’s products must be fi t for the purpose for which they are developed.

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Scope— The scope of the project should be clear to all the parties involved in order to avoid any confusion. There must be an agreement on the project scope, and the Project Manager should know what is within or outside the scope. In addition, they should not deliver beyond the scope.

Risk— Each project involves some kind of risk. So, there should be a proper plan to manage such risks.

Benefi ts— The Project Manager should have a clear understanding of the purpose of the project as an investment and should ensure that the project delivery is consistent with achieving the desired return.

1.4 THE FOUR INTEGRATED ELEMENTS

PRINCE2, as you learned, is a project management method. This framework consists of the following four integrated elements:

Principles— This refers to the practices of good project management upon which PRINCE2 is based.

Themes— This refers to the aspects of project management that should be addressed continually and in parallel throughout the project.

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Processes— This refers to the project activities through the project’s life cycle, from thinking about “is this a good idea” in Starting up a Project to “have we achieved all objectives?” in Closing a Project.

Tailoring PRINCE2 to the project environment— This refers to the fl exibility that PRINCE2 as a framework offers. PRINCE2 can readily be tailored to any type or size of project.

1.4.1 THE PRINCIPLES

Principles are the guiding obligations and good practices that determine whether a project is genuinely being managed using PRINCE2.

The seven principles of PRINCE2 are:

Continued business justifi cation— The best way to document the justifi cation is in a Business Case. A Business Case is a driver for decision-making during the project to ensure that the project remains aligned with the business objectives. If an organization does not develop a comprehensive Business Case, it might fi nd that some projects proceed even if they have few real benefi ts or have a speculative association with the corporate strategy. As a result, organizations might have projects that have overlapping project interests. If for some reason, it is not possible to justify a project, you must stop the project because you can invest the funds in other projects. An outline of the Business Case is developed at the start of the project. During the project, this outline is detailed and updated at the end of each stage.

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Learn from experience— The project team should learn from previous experience. When starting a new project, always refer to the previous project or to a similar project and check the lessons that can be applied to the current project. Lessons should be documented in all the reports and reviews. When the project closes, the lessons are passed on to the future teams.

Defi ned roles and responsibilities— A PRINCE2 project team should have a project management team structure consisting of clearly defi ned roles and responsibilities. Also, the project team members should have effective communication between them.

Manage by stages— A PRINCE2 project is planned, monitored, and controlled on a stage-by-stage basis. Breaking the project into a number of stages offers more control to the project management team and reduces the burden on the senior management.

Manage by exception— PRINCE2 implements “management by exception” that helps in effi ciently using the time of the senior management. This reduces senior managers’ time burden without removing their control ensuring that decisions are made at the right level in the organization.

Focus on products— The purpose of a project is to fulfi ll the expectations of the stakeholders. In order to do this, there should be a clear understanding of the product. A PRINCE2 project focuses on the defi nition and delivery of quality products. Product focus helps in avoiding risks such as scope creep, dissatisfaction, and underestimation of acceptance.

Tailor to suit the project environment— PRINCE2 is customized according to the project’s environment, size, complexity, importance, capability, and risk. You can use PRINCE2 in any project type, regardless of location and culture, due to its universal approach.

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My Notes

1.4.2 THE THEMES

The PRINCE2 themes explain the aspects of project management that must be addressed continually. In order to manage the project professionally, the Project Manager should pay attention to these themes. These themes should be made according to the scale, nature, and complexity of the project.

These seven themes are:

Business Case— Explains whether a project is desirable, viable, and achievable. It helps in judging whether the project is worth the investment. When you are making investment decisions, you should determine what you will gain, what the risks are, and how much you have to invest. You should always evaluate projects according to corporate objectives. This will help in comparing one project with another and fi nally judging the best project to invest.

As the Business Case is ongoing, it should not be used only to gain initial funding for a project. The Business Case should be maintained throughout the life of the project and updated with current information.

Organization— Explains the roles and responsibilities in the temporary PRINCE2 project management team. These roles and responsibilities are required to manage the project effectively. The project should allocate the work to the managers responsible for the completion of the project. Normal line-functional structures are not followed as projects are generally cross-functional.

Quality— Explains the quality attributes of the product to be delivered. It also explains how the project management team will

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ensure the quality of the products to be delivered. Plans— Explains the process for developing plans and the PRINCE2 techniques that should

be applied. These plans are then matched to the needs of the individual at different levels of the project organization. These also serve as the basis for communication and control throughout the project. This theme goes together with the quality theme.

Risk— Explains how risk will be managed in projects as every project involves some level of risk. Change— Explains how to act upon issues that have an impact on the plans and completed

products. The issues can be unexpected general problems, requests, or off-specifi cations. Progress— Determines whether the plans are still viable and should be carried on.

All seven themes apply to a project, but sometimes the themes need to be customized according to the scale of the project.

Note:You will learn about the seven themes in detail later in the training.

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My Notes

1.4.3 THE PROCESSES

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PRINCE2 adopts a process-based approach for project management. A process is a structured set of activities designed to accomplish a specifi c objective. PRINCE2 framework comprises the following seven processes as shown on the slide:

Starting Up a Project (SU)— Ensures that the prerequisites for the next process, that is Initiating a Project, are in place. This process helps you answer the question: Do we have a viable and worthwhile project initiative?

Initiating a Project (IP)— Establishes a solid foundation for the project, including a plan. Directing a Project (DP)— Enables the Project Board to be accountable for the project’s success

by making key decisions and providing overall control of the project to the Project Manager. Controlling a Stage (CS)— Helps assign and monitor work, deal with issues such as change

and risk, report progress to the project board, and take corrective action to ensure that the stage remains within tolerance limits.

Managing Product Delivery (MP)— Controls the link between the Project Manager and the Team Manager. This helps to coordinate the delivery of one or more of the project’s products .

Managing a Stage Boundary (SB)— Provides the Project Board with suffi cient information to review the success of the current stage, approve the next stage, and confi rm continued business justifi cation.

Closing a Project (CP)— Provides a fi xed point that confi rms the acceptance of the project’s products and evaluates the project’s performance along with possible lessons learned from this project.

Note:You will learn about these seven processes in detail later in the training.

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My Notes

1.4.4 TAILORING A PROJECT’S ENVIRONMENT

The PRINCE2 method is not a one-size-fi t-for-all project. They are tailored according to the project’s environment, size, complexity, importance, capability, and risk. They require correct amount of planning, control, governance, and use of processes. The methods are adapted to the context of a specifi c project. The sizing of a project is done based on the project characteristics, such as risk profi le, costs, importance, complexity, and visibility.

Depending on the organization’s size, environment, and other such factors, you must judiciously decide whether to embed, tailor, or size PRINCE2. Let’s understand the differences between embedding, tailoring, and sizing and the scenario in which to apply each.

Embedding— Refers to an organization adopting PRINCE2 and introducing it from top-down, starting from high-level strategies down to low-level planning.

Tailoring— Refers to adapting PRINCE2 in the context of a specifi c project.

Sizing— Refers to scaling down PRINCE2 implementation according to the requirements of the project. Sizing is based on project characteristics, such as risk profi le, costs, importance, complexity, and visibility.Sample

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1.5 THE CUSTOMER AND SUPPLIER ENVIRONMENTS

PRINCE2 methods are tailored keeping in mind the interests of both the customers and the suppliers. Customers are the one who represents the business and user interests. They use the project’s outputs and realize the benefi ts of the project. Suppliers are the ones who create the project’s output and provide the necessary skills to produce the output. They can be internal or external to the customer organization.

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My Notes

1.6 BENEFITS OF PRINCE2

PRINCE2 has proven to be the best practice and governance framework for project management. It applies to any type of project and has explicit recognition of project responsibilities based on roles. PRINCE2 has defi ned structure of accountability, delegation, authority, and communication and ensures that stakeholders are properly represented.

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1.7 MODULE SUMMARY

In this module, we discussed the overview of PRINCE2. Here is a summary of what we covered in this module:

What is a project? o A project is defi ned as a temporary organization that is created for delivering one or

more business products according to an agreed Business Case. The difference between a project and business as usual:

o Characteristics that differentiate a project from day-to-day business operations, or business as usual are:

Change Temporary Cross-functional Unique Uncertainty

The six control variables of PRINCE2: o The six control variables are cost, timescales, quality, scope, risk, and benefi ts.

The seven principles of PRINCE2: o The seven principles are continued business justifi cation, learn from experience, defi ned

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My Notes

roles and responsibilities, manage by stages, manage by exception, focus on products, and tailor to suit the project environment.

The seven themes of PRINCE2: o The seven themes are Business Case, Organization, Quality, Plans, Risk, Change, and

Progress. The seven processes of PRINCE2:

o The seven processes are Starting Up a Project, Initiating a Project, Directing a Project, Controlling a Stage, Managing Product Delivery, Managing a Stage Boundary, and Closing a Project.

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Module2Organization

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2.1 ORGANIZATION

Module IntroductionThis module consists of the topics listed on the slide.

So, let’s begin with understanding the purpose of the Organization theme.

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My Notes

2.2 ORGANIZATION THEME

2.2.1 PURPOSE

Purpose of the Organization ThemeThe key purpose of the Organization theme is to defi ne and establish the project structure of accountability and responsibility. In addition, the theme’s structure and guidelines help direct, manage, and control communication and other projects effectively.

PRINCE2 is based on the customer and supplier environments. It assumes that there will be a customer, who will specify the desired results, and a supplier, who will provide the resources and skills to deliver those results.

Now, let’s learn about the different principles related to the theme.

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2.2.2 PRINCIPLES

The seven principles of PRINCE2 are — continued business justifi cation, learn from experience, defi ned roles and responsibilities, manage by stages, manage by exception, focus on products, and tailor to suit the project environment.

Continued business justifi cation— There should be a person in the Executive role who will be responsible for the Business Case and benefi ts realization. Benefi ts realization is a process that ensures that the intended benefi ts planned for the project are actually achieved.

Learn from experience— The PRINCE2 project team should learn from previous experience, record it, and act upon it throughout the life cycle of the project. Lessons learned from previous projects and the way a project team acted in a certain situation can guide you in taking decisions for composition of the management products.

Defi ned roles and responsibilities— Every member in the PRINCE2 project organization structure should have defi ned and agreed roles and responsibilities. The roles of the three stakeholders of the project are:

o User — uses the products to gain the intended benefi ts once the project is completed. o Supplier — provides the external and internal resources and expertise required by the

project. o Business’ sponsor — endorses the objectives and ensures that the business investment

provides value for money. Manage by stages— In PRINCE2, projects are managed by stages and by exception. The

Project Board members must have the ability to delegate the day-to-day management of the project to the Project Manager.

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Focus on products— A PRINCE2 project focuses on the defi nition and delivery of products because successful projects should be output–oriented not activity-oriented.

Tailor to suit the project environment— Tailoring refers to sharing and combining roles.

2.3 PROJECT INTERESTS AND THE PROJECT MANAGEMENT TEAMNow, let’s learn about the three project interests and why they are important.

PRINCE2 represents the three interests of the project management team through roles. There are responsibilities defi ned for each role. To start with, the business interest is represented by the Executive role. The user interest is represented by the Senior User role while the supplier interest is represented by the Senior Supplier role.

In an organization, different people have different expectations from and interests in a project. Specifi cally, those who manage projects have to make decisions and commitments about money, company strategy, requirements, and production. Addressing the interests of each individual at a granular level is time-consuming and you might miss out on addressing the key interests. To streamline the decision-making process and address appropriate interests, PRINCE2 identifi es three primary stakeholders: business (B), user (U), and supplier (S). This is called the BUS principle.

The BUS principle is represented in the project management team structure through roles.

To get a better idea of why the three interests are addressed in the theme, let’s understand each one in detail.

BusinessIn an organization, the business owns the budget and its key interest is to make sure that a project delivers value for money. Broadly, the business interest addresses questions like:

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Do we meet the business needs? Is it value for money? Is the investment justifi ed?

By including this interest, you can ensure that the following two prerequisites remain valid before and throughout a project’s existence:

The product of the project meets a business need and justifi es the investment. The project provides value for money.

UserWhile the business owns the budget, users are those who operate, maintain, support, and are impacted by the project’s outputs. They use the outputs of the project to realize the benefi ts from the project’s output.

The user interest is primarily about the usability of the project’s products. Consequently, the user interests answer questions like:

Will the project’s products work for their people? Is it fi t for purpose? Are the project’s products specifi ed accurately and does the project deliver the specifi ed products?

SupplierSuppliers are those who provide the necessary resources and skills for producing the project’s outputs. Suppliers can be both in-house and external teams. The supplier interest is related to whether or not the project is workable and the outcome feasible. If you don’t obtain a supplier’s view of the feasibility of a product, you might end up with an unrealistic product description. In other words, the supplier might not be able to create or deliver products according to the plan and business case.

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My Notes

2.4 ORGANIZATION

In the four levels of organization, the corporate or program management delegates the responsibilities to the Project Board. The Project Board delegates the day-to-day management activities to the Project Manager.

The Project Manager can delegate the delivery of the products to Team Managers.

The project management team is a temporary structure specifi cally designed to manage the project. You can assign roles to people based on the specifi c requirements of the project. This assignment is only for the duration of the project.

The project management team is divided into three levels of management:

Project Board Project Manager Team Manager

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2.5 PROJECT MANAGEMENT TEAMThe Project Board consists of Executive, Senior User, Senior Supplier, Project Assurance, and Change Authority roles. Their responsibilities are laid down in role descriptions that can be tailored to suit the project requirement.

2.5.1 RESPONSIBILITIES

The responsibilities of the project management team are:

Executive—Is accountable for the project’s success, owns the Business Case, and is the key decision maker. The role is vested in one individual.

Senior User—Specifi es the needs of the future users by defi ning the products to be produced by the project and is also responsible for the defi nition, scope, and quality of the project’s products. The role may require more than one person.

Senior Supplier—Helps design, develop, facilitate, procure, and implement the project’s products as defi ned by the Senior User. The role is responsible for the quality of the products and resourcing of suppliers. The role may require more than 1 person.

Project Assurance—Is responsible for monitoring all the aspects of the project’s performance, independent of the Project Manager.

Change Authority—Is responsible for approving changes in scope and / or quality of already defi ned and base lined products. Authority can be delegated for approval of changes. The Project Board is responsible for Change Authority.

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My Notes

2.5.2 MANAGING AND DELIVERING ROLES

Roles responsible for managing a project are:

Project Manager—While the Project Board members are responsible for directing, they might not have the time to look into the day-to-day management of a project. Consequently, they delegate the day-to-day management to a Project Manager. Depending on the work load, the Project Manager can also take the roles of Team Manager and Project Support or delegate these to other person(s). The role is vested to one individual. The role cannot be shared with a role in the Project Board or Project Assurance role.

Project Support—The main Project Support tasks are administrative, logistical, and confi guration management. Both the Project Manager and Team Managers can use this support.

Team Manager—Team Managers are responsible for the delivery and production of the products allocated by the Project Manager. The Team Manager reports to and takes directions from the Project Manager.

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2.6 STAKEHOLDER

Lack of communication leads to chaos and mistakes in projects. “Since I did not hear from you, I assumed everything was going well.” This commonly heard statement can spell potential disaster. While defi ning an effective project organization structure is important, you must also identify, engage, and communicate with stakeholders.

Stakeholders are individuals or groups not part of the project management team who may need to interact with the project or who may be affected by the project’s outcome. They support or oppose the project, gain or lose, and perceive the project as a threat or enhancement. It is important to identify and engage with them appropriately.

Let’s identify the stakeholders in a project, where you have to relocate a chemical factory to some other location.

Here, the people who will be interested in the project are the organizational quality assurance team, the internal audit team, fi nance or the legal team, a number of unions, environmental pressure groups, industry regulator, and members of the public, especially those who are likely to be affected by the project. Some of these stakeholders are external to the project management team but internal to the corporate or program management organization.

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