prince2 pre-course material...the foundation level course is typically an intensive 3 day event...

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PRINCE2® Pre-course MaterialAccredited PRINCE2 Training

PRINCE2® is a registered trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.The Swirl logo™ is a trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved

January 2018

5001-17 P2 2017 Pre-read document v 1.0 Jan 2018

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Introduction to this document........................................................................................................................... 3

What to expect on the course ........................................................................................................................... 3

Organizational issues ......................................................................................................................................... 4

What is a project? .............................................................................................................................................. 4

Projects in Context ............................................................................................................................................. 6

What is Project Management? .......................................................................................................................... 7

What is PRINCE2?............................................................................................................................................... 8

Benefits of using PRINCE2:................................................................................................................................. 9

The Structure of PRINCE2 ................................................................................................................................ 10

The PRINCE2 Principles .................................................................................................................................... 11

PRINCE2 Themes.............................................................................................................................................. 12

PRINCE2 Processes........................................................................................................................................... 16

The PRINCE2 journey ....................................................................................................................................... 17

Tailoring and adopting PRINCE2 ...................................................................................................................... 20

Case Study Introduction................................................................................................................................... 25

Glossary............................................................................................................................................................ 27


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The material used in this document is based on the Axelos PRINCE2® material unlessotherwise stated.

PRINCE2® is a registered trade mark of AXELOS Limited, used under permission of AXELOS Limited. Allrights reserved.

The Cabinet Office licence AXELOS Limited to control and administer the accreditation and standards ofthe Accredited Training Organisations (ATO) who train and consult in the PRINCE2 methodology.

The ATOs run and administer the PRINCE2 training courses using materials accredited by AXELOS.

ATOs may affiliate with other organisations to administer PRINCE2 courses using the ATO’s accreditedmaterials and trainers.Introduction to this documentThis material should take around two to three hours to read and should be read thoroughly beforeattending the PRINCE2 course. The material has been designed to provide you with a background toPRINCE2 including an introduction to the terminology you will encounter on the course and anintroduction to the case study that may be used throughout the course for exercises and sampleproducts. Please ensure you are familiar with this information prior to attending the course.What to expect on the courseThe Foundation level course is typically an intensive 3 day event providing delegates with the knowledgeand understanding of the PRINCE2 framework. The course will begin at 9.00 am and will typically finishbetween 4.15pm and 5.00pm.

The official PRINCE2 Manual will be provided on the first day of the course. The course will include somegroup workshops around a case study providing practical examples of the use of PRINCE2 and willinclude approximately 1½ to 2 hours evening study in the form of revision and sample exam papers.The Foundation exam will be taken on the afternoon of the third day.

The Practitioner level is a further 2-day course in the style of discussion and workshops around theapplication and use of PRINCE2 in a project using sample Practitioner paper exams. Delegate will beprovided with further pre-reading materials for the Practitioner level at the end of the Foundationcourse. There will also be approximately 1½ to 2 hours evening study to be undertaken. ThePractitioner exam will be taken on the last day, normally at around 11.00 am.


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Organizational issuesA key challenge for organizations in today’s world is to succeed in balancing two parallel, competingimperatives. These are to:

maintain current business operations (i.e. maintain profitability, service quality, customer relationships,brand loyalty, productivity, market confidence, etc.). This is what we would term ‘business as usual’

transform business operations to survive and compete in the future (i.e. looking forward and decidinghow business change can be introduced to best effect for the organization).

It is no longer an option for organizations to stand still in today’s ever-changing and increasinglycompetitive world. Business change is inevitable; indeed, it is to be encouraged as a way of maintainingor increasing competitive advantage. The adage “if it isn’t broken, don’t fix it” has now to be qualified bythe question “so should we wait for it to break before doing anything?”

Organisations are increasingly aware of the need to adopt a systematic approach to managing changeparticularly when developing new products & services, processes and markets. Line management is notusually the most effective way of managing significant business change as it is constrained by the needto maintain the status quo and ensure that ‘what is’ runs smoothly. Project management is now seen asbest practice for progressing developments, provided it is integrated into the host organisation’sprocesses and championed at the highest level.What is a project?It is essential to understand the difference between a project and an organisation’s base activity.PRINCE2 describes a project as:

DEFINITION

‘a temporary organisation that is created for the purpose of delivering one or morebusiness products according to an agreed business case’.

This organisation is temporary i.e. for the life of the project, and differs from line management which isenduring and generally deals with the base activity. The organisation required in order to deliver aproject will be “cross-functional” in nature and the management of these, often conflicting motives andperspectives is a crucial part of a project.


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Another significant difference between a ‘project’ and ‘line’ is the nature of the work being undertaken. Ina project this is solely developmental in nature i.e. the introduction of change whilst work in line isgenerally maintenance oriented (base). Projects address a unique problem or opportunity and aretherefore ‘one off’ in nature.

There are several characteristics of project work that distinguish it from business as usual:

Change - Projects are the means by which we introduce change.

Temporary - As the definition of a project states, projects are temporary in nature. When thedesired change has been implemented, business as usual resumes (in its new form) and the needfor the project is removed. Projects should have a defined start and a defined end.

Cross-functional - A project involves a team of people with different skills working together (ona temporary basis) to introduce a change that will impact others outside the team. Projects oftencross the normal functional divisions within an organization and sometimes span entirely differentorganizations. This frequently causes stresses and strains both within organizations and betweenthem, for example between customers and suppliers. Each has a different perspective andmotivation for getting involved in the change.

Unique - Every project is unique. An organization may undertake many similar projects, andestablish a familiar, proven pattern of project activity, but each one will be unique in some way: adifferent team, a different customer, a different location, a different time. All these factorscombine to make every project unique.

Uncertainty - The characteristics already listed will introduce threats and opportunities over andabove those we typically encounter in the course of business as usual. Projects are riskier.

Projects come in all shapes and sizes. An organization may be undertaking an IT project to deliver improvedsystems required to manage its business; another organization may be undertaking a clinical researchproject in order to bring a new drug to market; and a third organization may be managing an event.

Furthermore, the environment within which the project is being managed may influence how it is started-up, delivered, assured and closed. There may be factors external to the project itself, such as embeddedcorporate standards, the maturity of the organization, and regulatory frameworks and factors specific tothe individual project such as the industry sector, the geographical location and the project’s risks.

Development work is less certain than maintenance (which usually exists within well used processes andprocedures) and therefore carries a higher degree of risk. It is this risk factor that requires a differentmanagement environment to the normal day-to-day management processes.


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Projects in ContextPRINCE2 assumes that there will be a customer who will specify the desired result and a supplier whowill provide the resources and skills to deliver that result.

PRINCE2 refers to the organization that commissions a project as ‘corporate, programme management orthe customer’ (by ‘corporate, programme management’ we mean corporate or programmemanagement). This organization is responsible for providing the project’s mandate, governing theproject, and for realizing any benefits that the project might deliver or enable

PRINCE2 refers to a supplier as the person, group or groups responsible for the supply of the project’sspecialist products.

Projects can exist within many contexts; they may be stand-alone (with their own business case andjustification) or they may be part of a programme or wider portfolio. The diagram below shows howprojects may fit within a programme and portfolio context. In addition, projects may be wholly managedwithin the commissioning organization or be part of a commercial relationship.

Copyright © AXELOS Limited 2017. Material is reproduced under licence from AXELOS Limited. All rights reserved.

A business need should exist before any project is commissioned. Organisations need a commissioningprocess to ensure projects are only progressed to fulfil a need. PRINCE2 identifies the link between thecorporate planning process (Corporate / Programme Management) and the commissioning of projectsand provides direction on how this link should be maintained.


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What is Project Management?Project failures are all too common. Some make the headlines; the vast majority are quickly forgotten. Thereasons 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 measurables 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.

Project management is the planning, delegating, monitoring and control of allaspects of the project, and the motivation of those involved, to achieve the project objectives within theexpected performance targets for time, cost, quality, scope, benefits and risks.

Without a project management method, those who commission a project, those who manage it andthose who work on it will have different ideas about how things should be organised and when thedifferent aspects of the project will be completed. Those involved will not be clear about how muchresponsibility, authority and accountability they have, and as a result, there will often be confusionsurrounding the project. Without a project management method, projects are rarely completed on timeand within acceptable cost. This is especially true of large projects.

For example, a new house is completed by creating drawings, foundations, floors, walls, windows, a roof,plumbing, wiring and connected services. None of this is project management, so why do we needproject management at all? The purpose of project management is to keep control over the specialistwork required to create the project’s products or, to continue with the house analogy, to make sure theroofing contractor does not arrive before the walls are built.

Additionally, given that projects are how we introduce a change, and that project work entails a higherdegree of risk than many other business activities, it follows that implementing a secure, consistent, well -proven approach to project management is a valuable business investment. A good project managementmethod will guide the project through a controlled, well-managed, visible set of activities to achieve thedesired results. PRINCE2 seeks to avoid the problems identified above by setting out established andproven best practice.


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What is PRINCE2?PRINCE2 (PRojects IN Controlled Environments) is one of the most widely used methods for managingprojects in the world. It is a structured project management method based on experience drawn fromthousands of projects and from the contributions of countless project sponsors, project managers,project teams, academics, trainers and consultants.

PRINCE2 has been designed to be generic so that it can be applied to any project regardless of projectscale, type, organization, geography or culture. It achieves this by:

separating the management of project work from the specialist contributions, such as design orconstruction. The specialist aspects of any type of project are easily integrated with the PRINCE2method and, used alongside PRINCE2, provide a secure overall framework for the project work

focusing on describing what needs to be done, rather than prescribing how everything is done

PRINCE2:

is based on established and proven best practice and governance for project management can be tailored to meet the specific needs of the organization and scaled to the size and complexity of

different projects can be applied to any type of project and can easily be implemented alongside specialist, industry-

specific models (e.g. ’engineering models’ or ‘development lifecycles’) is widely recognized and understood and provides a common vocabulary for all project participants. In

doing so it promotes consistency of project work and the ability to reuse project assets. It alsofacilitates staff mobility and reduces the impact of personnel changes or handovers

ensures that participants focus on the viability of the project in relation to its business case objectives,rather than simply seeing the completion of the project as an end in itself. It ensures thatstakeholders (including sponsors and resource providers) are properly represented in planning anddecision-making

promotes learning from project experience and continual improvement in organizations is supported by a worldwide network of examination institutes, and accredited training and

consultancy organizations (examination institutes, accredited training organizations and AXELOSconsulting partners), who can supply expert support for PRINCE2 projects or for organizationsplanning to adopt PRINCE2.

Because PRINCE2 is generic and based on proven principles, organizations adopting the method as astandard can substantially improve their organizational capability and maturity across multiple areas ofbusiness activity, such as business change, construction, IT, mergers and acquisitions, research andproduct development.


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Benefits of using PRINCE2:Before introducing the structure of the method, it is worthwhile reviewing the key benefits of adoptingPRINCE2:

PRINCE2 embodies established and proven best practice and governance for project management It can be applied to any type of project - and can easily be implemented alongside specialist,

industry-specific models (‘engineering models’ or ‘development lifecycles’) PRINCE2 is widely recognized and understood therefore it provides a common vocabulary for all

project participants - promoting effective communication PRINCE2 provides for the explicit recognition of project responsibilities - so that participants

understand each other’s roles and needs. There is a defined structure for accountability, delegation,authority and communication

Its product focus clarifies (for all parties) what a project will deliver, why, when, by whom and forwhom

PRINCE2 plans are carefully designed to meet the needs of the different levels in the projectorganization, improving communication and control

It is based on a ‘management by exception’ framework, providing for the efficient and economic useof management time (whether at corporate, programme, Project Board or project managementlevels)

PRINCE2 ensures that participants focus on the viability of the project in relation to its Business Caseobjectives - rather than simply seeing the completion of the project as an end in itself

It defines a thorough but economical structure of reports It ensures that stakeholders (including sponsors and resource providers) are properly represented in

planning and decision-making Adopting PRINCE2 promotes learning and continuous improvement in organizations It promotes consistency of project work and the ability to reuse project assets; it also facilitates staff

mobility and reduces the impact of personnel changes/handovers PRINCE2 is an invaluable diagnostic tool, facilitating the assurance and assessment of project work,

troubleshooting and audits There are scores of accredited training and consultancy organizations (ATOs and ACOs) operating

worldwide, who can supply expert support for PRINCE2 projects or for organizations planning toadopt PRINCE2.


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The Structure of PRINCE2The PRINCE2 method addresses project management with four integrated elements of principles,themes, processes and the project environment.

PRINCE2 principles - The principles are the guiding obligations and good practices which determinewhether the project is genuinely being managed using PRINCE2. There are seven principles andunless all of them are applied, it is not a PRINCE2 project. PRINCE2 is a flexible method and one ofthe principles is that it should be tailored to suit the type and size of project.

PRINCE2 themes - The themes describe aspects of project management that must be addressedcontinually and in parallel throughout the project. The seven themes explain the specific treatmentrequired by PRINCE2 for various project management disciplines and why they are necessary.

PRINCE2 processes - The processes describe a progression through the project lifecycle, fromgetting started to project closure. Each process has checklists of recommended activities, productsand related responsibilities.

The project environment - Organizations often want a consistent approach to managing projectsand tailor PRINCE2 to create their own project management method. This method is thenembedded into the organization’s way of working.



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The PRINCE2 PrinciplesPRINCE2 is designed so that it can be applied to any type of project, taking account of its scale,organization, geography and culture. It is designed to contribute to the success of a projectwithout burdening it with bureaucracy. The themes, processes and product descriptions describewhat should be done but, in general, not how.

PRINCE2 is principle-based rather than prescriptive; the principles are:

universal in that they apply to every project self-validating in that they have been proven in practice over many years empowering because they give practitioners of the method added confidence and ability to

influence and shape how the project will be managed.

The PRINCE2 principles provide a framework of good practice for people involved in a project andwere

developed from lessons taken from both successful and failed projects.The seven PRINCE2 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.

To be following PRINCE2, these principles must be adopted when managing a project. Minimumrequirements set out in the themes and processes chapters must also be satisfied. These minimumrequirements describe what must be done, rather than how it is done.


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PRINCE2 ThemesThemes are aspects of project management that must be addressed continually. Any ProjectManager who gives thorough attention to these themes will fulfil the role in a professional manner.ORGANISATION Theme(The WHO)Purpose:To define and establish the projects structure of accountability and responsibility.

Description:Identifies the four levels of management and the roles.

Corporate or Programme Management Project Board Project Manager Team Manager

Usage:In the Starting up a project process (SU) to determine an appropriate organisation for the projectalthough the structure can and should be revisited on a regular basis throughout the project.BUSINESS CASE Theme(The WHY)

Purpose:To establish mechanisms to judge whether the project is (and remains) desirable, viable andachievable as a means to support decision making in its (continued) investment.

Description:The Business Case must drive the project. If a satisfactory Business Case does not exist, a projectshould not be started. If a Business Case is valid at the start of a project, but this justificationdisappears once the project is under way, the project should be stopped. The focus of the BusinessCase should be on the totality of business change, not just one element of it, e.g. the cost of buyingnew equipment should take into account the impact on personnel, training, changed procedures,accommodation changes, relationships with the public, etc.

Usage:The Business Case is developed in the Starting up a project (SU) process and refined in the Initiatinga project (IP) process and is further revised and updated throughout the project, particularly duringthe process of Managing a stage boundary (SB), when the Project Board must agree that the BusinessCase still exists before authorising progress.


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QUALITY Theme(The WHAT)

Purpose:To define and implement the means by which the project will create and verify products that are fitfor purpose

Description:In a project environment the deliverables must comply with the stated expectations and throughouttheir production are subject to specific tests to ensure they meet the needs of the users.

Usage:In the PID to describe the expectations and criteria against which products will be measured.During the Managing product delivery process (MP) products are reviewed to assess conformity.RISK Theme(The WHAT IF?)

Purpose:To identify, assess and control uncertainty and, as a result improve the ability of the project tosucceed.

Description:A risk is an uncertain event or set of events that, should it occur, will have an effect on theachievement of objectives either negatively as a threat or positively as an opportunity. Effectivemeasures must be put in place to manage the risks.

Usage:Risks can occur at anytime throughout the projects life cycle. They are initially identified in theStarting up a project process (SU) and the Risk register is created during the Initiating a projectprocess (IP).


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CHANGE Theme(What’s the impact?)

Purpose:To identify, assess and control any potential and approved changes to the baseline.

Description:Changes to the scope of the project or specification of products can have a significant effect on theproject in terms of cost and timescales. There needs to be an assessment of the effect of changesbefore they are agreed.

Usage:Used throughout the project to ensure that change is controlled, that information needed by thedecision-makers is available and change is viable.PLANS Theme(WHERE, WHO, HOW, HOW MUCH)

Purpose:To facilitate communication and control by defining the means of delivering theproducts.

Description:Plans enable the Project board to identify the resources, deliverables and timescale of the project.PRINCE2 describes different levels of plans and their usage appropriate for the needs of the differentmanagement levels associated with a project. PRINCE2 also sets out how to generate plans.

Usage:Plans are used by the Project board to oversee the project, by the Project manager to controlresources and the Team manager to control activities. Planning is used primarily by the Projectmanager but may also be used by Team managers in the generation of Plans.


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PROGRESS Theme(Where are we now? Where are we going? Should we carry on?)

Purpose:To establish mechanisms to monitor and compare actual achievements against those planned;provide a forecast for the project objectives and the project’s continued viability; and control anyunacceptable deviations

Description:It is necessary to be able to gauge progress relative to that which was planned in orderto allow good news to be reported on a regular basis and for the early detection of deviations thatmay require corrective action. Control cannot be prudently exercised without knowledge of howthings are progressing.

Usage:Throughout the project and by all parties in the project management team.


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PRINCE2 ProcessesPRINCE2 is a process-based approach for project management. A process is a structured set ofactivities designed to accomplish a specific objective. It takes one or more defined inputs and turnsthem into defined outputs.

There are seven processes in PRINCE2, which provide the set of activities required to direct, manageand deliver a project successfully.

The Diagram below shows how each process is used throughout a project’s lifecycle. The lifecycleshown has three management stages: an initiation stage, subsequent stage(s), and the final stage.Note that on a simple project, there may only be two stages: an initiation stage and one deliverystage (the final stage).



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The PRINCE2 journeyThe Project board sets direction and makes key decisions throughout the life of the project. TheProject board’s activities are covered by the Directing a project process (DP) which runs from pre-project through to, and including, the final stage.

Pre-project

In the beginning, someone has an idea or a need. The trigger for the project may come from newbusiness objectives, responding to competitive pressures, changes in legislation or arecommendation in a report or an audit. In PRINCE2, this trigger is called a project mandate. Theproject mandate is provided by the commissioning organization (corporate, programmemanagement or the customer) and can vary in form from a verbal instruction to a well-defined andjustified project definition.

Prior to the activity to scope the project fully, it is important to verify that the project isworthwhile and viable. Such activities are covered by the starting up a project (SU) process, whichculminates in the production of a project brief and a stage plan for project initiation.

The project board reviews the project brief and decides whether to initiate the project, and statesthe levels of authority to be delegated to the project manager for the initiation stage.

Initiation stage

When a decision has been made to go ahead with the project, it needs to be planned at anappropriate level of detail. Funding needs to be obtained and appropriate controls should bedefined to ensure that the project proceeds in accordance with the wishes of those people payingfor the project and those who will make use of what the project delivers. The planning,establishment of the project management approaches and controls, development of a robustbusiness case and a means of reviewing benefits are covered by the initiating a project (IP)process. Also, during the initiation stage, the managing a stage boundary (SB) process is used toplan the next management stage in detail.

The initiation stage culminates in the production of the Project Initiation Documentation (PID),which is reviewed by the project board to decide whether to authorize the project. As the contentsof the PID are likely to change throughout the project (under change control), this version of thePID is preserved as input for later performance reviews.


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Subsequent delivery stages

The project board delegates day-to-day control to the project manager on a management-stage-by-managementstage basis. The project manager needs to assign work to be done, ensure thatthe outputs of such work (products) meet relevant specifications, and gain suitable approval whereappropriate. At this point, products may be transitioned into operational use by corporate,programme management or the customer.

The project manager also needs to ensure that progress is in line with the approved plan and thatthe forecasts for the project’s performance targets are within agreed tolerances. The projectmanager ensures that a set of project records are maintained to assist with progress control. Theproject manager informs the project board of progress through regular highlight reports. Theactivities to control each management stage are covered by the Controlling a stage (CS) process.

In the managing product delivery (MP) process, the team manager(s) or team members executeassigned work packages (that will deliver one or more products) and keep the project managerappraised of progress via checkpoint reports.

Towards the end of each management stage, the project manager requests permission to proceedto the next management stage by reporting how the management stage performed, providing anupdate to the business case and planning the next management stage in detail. The projectmanager provides the information needed by the project board in order for it to assess thecontinuing viability of the project and to make a decision to authorize the next management stage.At all times, the project board must ensure that the project remains aligned with the strategy ofcorporate, programme management or the customer. The activities to manage each managementstage boundary are covered in the managing a stage boundary (SB)process.

Final delivery stageAs a project is a temporary undertaking, towards the end of the final management stage (when theproject manager has gained approval for all the project’s products) it is time to start the closing aproject process. The project board needs to be satisfied that the recipients of the project’sproducts are in a position to own and use them on an ongoing basis. Should this be the case, theproducts can be transitioned into operational use and the project can close. The projectdocumentation should be tidied up and archived, the project should be assessed for performanceagainst its original plan and the resources assigned to the project need to be released. Closureactivities include planning post-project benefits reviews to take place for those benefits that canonly be assessed after the products have been in use (and therefore after the project has closed).The activities to decommission a project are covered by the closing a project (CP) process.


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Post ProjectThe project is typically contributing towards the benefits defined by corporate, programmemanagement or the customer. Even though some of these benefits may be realized during theproject, it is likely that many or all of the benefits will be realized post-project. Corporate,programme management or the customer therefore needs to be satisfied that the project hascontributed towards benefits realization, and is therefore likely to hold one or more post-projectbenefits reviews. The reviews will be signposted in the project’s benefits management approach. Ifthe project is part of a programme, then the post-project benefits reviews need to be covered bythe programme’s benefits management activities.

A post-project benefits review will focus on:

confirming that the planned benefits have been achieved identifying which planned benefits have not been achieved and agreeing a follow-up action plan identifying any unexpected benefits that have been achieved and any dis-benefits that resulted providing lessons for future projects.


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Tailoring and adopting PRINCE2Tailoring PRINCE2

DEFINITION: TAILORING

“Adapting a method or process to suit the situation in which it will be used”

The seventh PRINCE2 principle states that PRINCE2 should be tailored for a project’s particularcircumstances. The goal is to apply a level of project management that does not overburden theprojectmanagement team but provides an appropriate level of governance and control, at an acceptablelevel of risk. Tailoring can be done in two ways:● If an organization does not have its own project management method, tailoring will be donedirectly from the PRINCE2 manual.● If an organization has its own PRINCE2-based project management method, this will be tailoredto suit the project.

Adopting PRINCE2DEFINITION: EMBEDDING

“The act of making something an integral part of a bigger whole. Embedding iswhat an organization needs to do to adopt PRINCE2 as its corporate project

management method and encourage its widespread use”

Organizations adopt PRINCE2 by tailoring it to their needs, often creating their own PRINCE2-basedmethod and then embedding its use within their working practices.


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What can be tailored?KEY MESSAGE

Tailoring can be applied to processes, themes, roles, management products andterminology

Tailoring is concerned with the appropriate use of PRINCE2 on any given project, ensuring thatthere is the right amount of governance, planning and control, in accordance with PRINCE2’sprinciples. The following aspects of PRINCE2 may be tailored:● Processes may be combined or adapted (e.g. by adding or combining activities).● Themes can be applied using techniques that are appropriate to the project.● Roles may be combined or split, provided that accountability is maintained and there are noconflicts of interest● Management products may be combined or split into any number of documents or datasources. They will often take the form of formal documents, but can equally be slide decks, wallcharts or data held on IT systems if more appropriate to the project and its environment.● Terminology may be changed to suit other standards or policies, provided it is appliedconsistently.

KEY MESSAGE

Tailoring, as a PRINCE2 principle, is mandatory (as are all the principles), so ifan organization does not consider tailoring, it is not using PRINCE2. PRINCE’2

principles should not be tailored as they are universal and always apply.Who is responsible and where is tailoring documented?The project manager is responsible for identifying and documenting the level of tailoring for theproject. Tailoring affects how a project is managed and so it is documented as part of the PID,which is reviewed by the appropriate stakeholders and approved by the project board. Both theproject board and the project manager may be advised by project assurance, project support rolesor a centre of excellence (if one exists).


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Tailoring is constrained and influenced by contextThe diagram below shows the environmental and project factors which constrain and influencehow a project should be tailored.

The project processes and procedures should, when necessary, draw on the organization’s owninternal policies, processes, methods, standards and practices.


Tailoring may need to take into account standards, policies, laws or regulations from outside theorganization, including those relating to health, safety, sustainability and environment. In someregulated industries, such as rail or aerospace, mandatory certification points may determine themost appropriate project lifecycle and management stages to use.

The nature of the project itself influences how PRINCE2 should be tailored. The competence ofthose working on the project (how familiar they are with project management practices) oftendrives the level of detailed guidance needed. Contracts with customers or suppliers need to betaken into account when considering tailoring. The specialist products also have an influence, asspecialists usually have their own working practices (such as for agile delivery). The projectmanager’s job is to integrate these so that the project’s outputs and outcomes will be deliveredand benefits realized.

The project’s immediate context is relevant; for example, if it is part of a programme or a portfolio,the higher level Manager may provide processes, procedures, techniques or approaches for theproject manager to follow. For good governance, it is vital that the chain of accountability from anyhigher level (organization, portfolio or programme) to the project level is clear.


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Common situations for tailoring considerationDuring the course you will be provided with the PRINCE2 Manual. Each of the Seven Themes and seven Processeshas its own chapter in the manual. Each chapter provides guidance on tailoring the Theme or Process to commonsituations within which projects are delivered.

Simple ProjectsThe perceived complexity or scale of a project is relative to the organization and context; a ‘small’ project in alarge multinational enterprise is likely to dwarf a large project in a local company. For this reason, it is morehelpful to think in terms of ‘simple’ projects, rather than ‘small’. A simple project is one that the organizationperceives as straightforward and of low risk.

Simple projects must adhere to the seven PRINCE2 principles; however, the degree of formality for managing theproject may be relaxed provided the resultant risk is acceptable.

Project using an agile approachAgile has a very strong focus on principles. The Agile Manifesto (2001) and most of the agile frameworks andmethods all promote a set of principles in some form. PRINCE2 principles align with these principles and arecomplementary to the agile way of working. Some of the PRINCE2 principles are ‘very much agile’, such ascontinued business justification, learn from experience, focus on products, manage by stages, and manage byexception; the last being synonymous with giving people autonomy and empowerment. PRINCE2 managementstages can be aligned with a series of sprints or releases, introducing management control points to support a failfast environment. In situations that have a higher risk or higher uncertainty, the management stages can be of amuch shorter duration.

PRINCE2’s manage by exception principle should be implemented correctly and should be at the heart ofempowering people to self-organize and stay in control. Tolerances are set around quality criteria so thateverything that is delivered must be delivered to at least the minimum acceptable level of quality.Product descriptions (sometimes written as epics or user stories), quality criteria and quality tolerances can beprioritized and decomposed to provide flexibility in what is being delivered. This makes it easier to stay in controland focus on the delivery of value (or benefit) in a timely manner without compromising quality.

Project involving a commercial customer and supplier relationshipPRINCE2 is based on there being a customer/supplier environment. It assumes that there will be a customer whowill specify the desired result and (usually) pay for the project, and a supplier who will provide the resources andskills to deliver that result. Additional considerations apply if the relationship between the customer and thesupplier(s) is a commercial one. The contract between the parties acts as a constraint on a project manager’s orteam manager’s degree of freedom when managing the project or work package. For this reason, it is goodpractice to ensure that contracts reflect and promote good working relations rather than inhibit them and thatany tailoring to PRINCE2 respects the parties’ contract obligations.

Taking a project from a supplier’s perspective, the project lifecycle should be defined to take into accountpre-contract activities, such as qualification, designing and costing the solution, bidding and negotiation. It mayalso take into account activities at the end of the project, such as warranty and maintenance periods.


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Projects involving multiple owning organizationsThe guidance for tailoring PRINCE2 in a multi-owned project is similar to that for the commercialcustomer/supplier context, but in multi-organization projects tailoring can become extremely complicated.Project boards may have more members than can practically make effective decisions. If the parties have equalauthority, a consensus has to be built on each decision, which can be time-consuming. As a result, projectmanagers may begin to take decisions that are beyond their remit, in order to maintain momentum. Forcomplicate situations, consideration should be given to adopting programme management as a more effectivemeans of governance.

Projects within programmesIf the project is part of a programme, people undertaking programme management roles may also define,influence or constrain tailoring. As a project within a programme may have different contexts, including anycombination of simple project, agile and commercial, all the guidance for those situations may apply to theproject.


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Case Study IntroductionThe Sameways Group

The Sameways Group consists of a chain of Supermarkets. The policy of the Group’s board of directorsis to diversify activities as much as possible between food and non-food operations and, as a result,the company has recently acquired a national chain of chemists and DIY outlets.

There are quite different cultures existing within the three strands of the company and the board ofdirectors has approved plans to integrate culture, using the Supermarket model as the preferredmodel going forward. This is causing some resentment within the chemists and DIY parts of thenewly amalgamated organization. There are also technological and process disparities that need tobe resolved and rationalized across the group.

Sameways ChainsThe individual retail chains (Supermarkets, Chemists and DIY) are self-supporting and accountablefor their own profit and loss (P&L) accounts. They have their own purchasing, logistics andmarketing departments. The overhead departments of Sameways, such as IT and H.R. support thedifferent needs of each of the chains and are also responsible for developing and enforcingSameways Group standards and procedures. They charge the chains for their services; for instance:for the rent of offices and shops, and for the leases of company cars. The chains are not permittedto purchase such services from elsewhere.


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StrategyThe strategy of the company is to become the best retail chain company within five years in termsof return of sales and quality delivered. As a result of this strategy a programme has started toimprove overall efficiency and effectiveness and rationalize processes and technology on the basisof the preferred processes and technology in the Supermarket chain. The IT department is regardedas being one of the key factors in realizing this. The IT department, however, must improve theirefficiency and effectiveness to be able to comply with the expectations.

Latest SituationThe business managers are getting worried about their IT department. Rumour has it that the ITdepartment cannot cope with all the changes needed for the strategy to be achieved. The CEO hasrecently made a policy decision, supported by his board of directors, to consider options foroutsourcing the IT department. Most the board members agreed that IT was not core business andsetting up a partnership with a specialist IT provider may provide better value for money and allowkey resources to be directed towards the three core business areas. The only dissenting voice onthe board, unsurprisingly, was W.Gates. He made a case stating that outsourcing would leave thecompany open to commercial and operational risks. While no final decision was made, a projectwas identified to consider current and future IT needs and to invite potential suppliers to submitproposals.

Group IT ServicesThe IT Services department is located centrally and consists of two branches: systems developmentand production & support.

The Director of IT is under considerable strain. His major concerns are:• The stress of keeping the important business support applications up and running and ofimproving the performance of these systems.• The improvement and standardization of the IT infrastructure.• The customer and service focus of the IT organization. This is very important,because one of the chains has threatened to shop outside the company for ITservices if the quality of the internal IT services doesn’t improve very soon.

• The friction between the Maintenance and Support department and System Development. Thepressure from the business units has created a negative atmosphere between both departments.

Requests for changes are directed to the IT Department in a variety of different ways. Departmentscurrently make their own decision if and how changes need to be implemented. Most of thechange-projects overrun time and budget and don’t meet the quality requirements of the end-users. In addition, Maintenance and Support is very often disadvantaged with the results aseffective maintenance and support are not addressed. Following implementation additionalchanges are often needed to cope with the unexpected consequences of the implemented changes.

The consequence of the ineffectiveness of the development and maintenance departments withinIT is that the maintenance workload has grown exponentially to cope with the implementationdisasters and constant changes. The costs of IT have become a huge embarrassment for thecompany.


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Glossaryaccept (risk response)

A risk response that means that the organization takes the chance that the risk will occur, with full impact onobjectives if it does.

acceptance

The formal act of acknowledging that the project has met agreed acceptance criteria and thereby met therequirements of its stakeholders.

acceptance criteria

A prioritized list of criteria that the project product must meet before the customer will accept it (i.e. measurabledefinitions of the attributes required for the set of products to be acceptable to key stakeholders).

activity

A process, function or task that occurs over time, has recognizable results and is managed. It is usually defined aspart of a process or plan.

agile and agile methods

A broad term for a collection of behaviours, frameworks, concepts and techniques that go together to enableteams and individuals to work in an agile way that is typified by collaboration, prioritization, iterative andincremental delivery, and timeboxing. There are several specific methods (or frameworks) that are classed as agile,such as Scrum and Kanban. PRINCE2 is completely compatible with working in an agile way.

approval

The formal confirmation that a product is complete and meets its requirements (less any concessions) as definedby its product description.

approver

The person or group (e.g. a project board) who is identified as qualified and authorized to approve a

(management or specialist) product as being complete and fit for purpose.

asset

An item, thing or entity that has potential or actual value to an organization [ISO 55000:2014].


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assumption

A statement that is taken as being true for the purposes of planning, but which could change later. An assumptionis made where some facts are not yet known or decided, and is usually reserved for matters of such significancethat, if they change or turn out not to be true, there will need to be considerable replanning.

assurance

All the systematic actions necessary to provide confidence that the target (e.g. system, process, organization,programme, project, outcome, benefit, capability, product output or deliverable) is appropriate. Appropriatenessmight be defined subjectively or objectively in different circumstances. The implication is that assurance will havea level of independence from that which is being assured. See also project assurance; quality assurance.

authority

The right to allocate resources and make decisions (applies to project, management stage and team levels).

authorization

The point at which an authority is granted.

avoid (risk response)

A risk response to a threat where the threat either can no longer have an impact or can no longer happen.

backlog

A list of new features for a product. The list may be made up of user stories which are structured in a way thatdescribes who wants the feature and why.

baseline

Reference levels against which an entity is monitored and controlled.

baseline management product

A type of management product that defines aspects of the project and, when approved, is subject to changecontrol.

benefit

The measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders.

benefits management approach

A plan that defines the benefits management actions and benefits reviews that will be put in place to ensure thatthe project’s outcomes are achieved and to confirm that the project’s benefits are realized.


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benefits tolerance

The permissible deviation in the expected benefit that is allowed before the deviation needs to be escalated to thenext level of management. Benefits tolerance is documented in the business case. See also tolerance.

burn chart

A technique for showing progress (e.g. such as with a timebox), where work that is completed and work still to doare shown with one or more lines that are updated regularly or daily.

business case

The justification for an organizational activity (project), which typically contains timescales, costs, benefits andrisks, and against which continuing viability is tested.

centre of excellence

A corporate coordinating function for portfolios, programmes and projects providing standards, consistency ofmethods and processes, knowledge management, assurance and training.

change authority

A person or group to which the project board may delegate responsibility for the consideration of requests forchange or off-specifications. The change authority may be given a change budget and can approve changes withinthat budget.

change budget

The money allocated to the change authority available to be spent on authorized requests for change.

change control

The procedure that ensures that all changes that may affect the project’s agreed objectives are identified, assessedand then approved, rejected or deferred.

change control approach

A description of how and by whom the project’s products will be controlled and protected.

checkpoint

A team-level, time-driven review of progress.

checkpoint report

A progress report of the information gathered at a checkpoint, which is given by a team to the projectmanager and which provides reporting data as defined in the work package.


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closure recommendation

A recommendation prepared by the project manager for the project board to send as a project closurenotification when the board is satisfied that the project can be closed.

communication management approach

A description of the means and frequency of communication between the project and its stakeholders.

concession

An off-specification that is accepted by the project board without corrective action.

configuration item

An entity that is subject to change control. The entity may be a component of a product, a product or a set ofproducts in a release.

configuration item record

A record that describes the status, version and variant of a configuration item, and any details of importantrelationships between them.

configuration management

Technical and administrative activities concerned with the controlled change of a product.

configuration management system

The set of processes, tools and databases that are used to manage configuration data. Typically, a project willuse the configuration management system of either the customer or supplier organization.

constraints

The restrictions or limitations by which the project is bound.

contingent plan

A plan intended for use only if required (e.g. if a risk response is not successful). Often called a fallback plan.

corporate, programme management or customer standards

These are overarching standards to which the project must adhere. They will influence the four projectapproaches (communication management, change control, quality management and risk management) and theproject controls.

corrective action

A set of actions to resolve a threat to a plan’s tolerances or a defect in a product.


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cost tolerance

The permissible deviation in a plan’s cost that is allowed before it needs to be escalated to the next level ofmanagement. Cost tolerance is documented in the respective plan. See also tolerance.

customer

The person or group who commissioned the work and will benefit from the end results.

customer’s quality expectations

A statement about the quality expected from the project product, captured in the project productdescription.

daily log

A log used to record problems/concerns that can be handled by the project manager informally.

deliverable

See output.

delivery approach

The specialist approach used to create the products.

delivery step

A step within the delivery approach.

dependency (plan)

A dependency means that one activity is dependent on another. There are at least two types of dependencyrelevant to a project: internal and external.

An internal dependency is one between two project activities. In these circumstances the project team hascontrol over the dependency.

An external dependency is one between a project activity and a non-project activity, where non-projectactivities are undertaken by people who are not part of the project team. In these circumstances the projectteam does not have complete control over the dependency.

dis-benefit

A measurable decline resulting from an outcome perceived as negative by one or more stakeholders, whichreduces one or more organizational objectives


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embedding (PRINCE2)

The act of making something an integral part of a bigger whole. Embedding is what an organization needs to doto adopt PRINCE2 as its corporate project management method and encourage its widespread use.

end project report

A report given by the project manager to the project board, confirming the handover of all products. It providesan updated business case and an assessment of how well the project has done against the original PID.

end stage assessment

The review by the project board and project manager of the end stage report to decide whether to approve thenext stage plan. Depending on the size and criticality of the project, the review may be formal or informal. Theauthority to proceed should be documented as a formal record.

end stage report

A report given by the project manager to the project board at the end of each management stage of the project.This provides information about the project’s performance during the management stage and the project statusat the management stage end.

enhance (risk response)

A risk response to an opportunity where proactive actions are taken to enhance both the probability of theevent occurring and the impact of the event should it occur.

epic

A high-level definition of a requirement that has not been sufficiently refined or understood yet. Eventually, anepic will be refined and broken down into several user stories or requirements.

event-driven control

A control that takes place when a specific event occurs. This could be, for example, the end of a managementstage, the completion of the PID, or the creation of an exception report. It could also include organizationalevents that may affect the project, such as the end of the financial year.

exception

A situation where it can be forecast that there will be a deviation beyond the tolerance levels agreed betweenthe project manager and the project board (or between the project board and corporate, programmemanagement or the customer).

exception assessment

A review by the project board to approve or reject an exception plan.


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exception plan

A plan that often follows an exception report. For a stage plan exception, it covers the period from the present tothe end of the current management stage. If the exception were at project level, the project plan would be replaced.

exception report

A description of the exception situation, its impact, options, recommendation and impact of therecommendation. This report is prepared by the project manager for the project board.

executive

The individual with overall responsibility for ensuring that a project meets its objectives and delivers theprojected benefits. This individual should ensure that the project maintains its business focus, that it has clearauthority, and that the work, including risks, is actively managed. The executive is the chair of the project board.He or she represents the customer and is responsible for the business case.

exploit (risk response)

A risk response to an opportunity. It means seizing the opportunity to ensure that it will happen and that theimpact will be realized.

follow-on action recommendations

Recommended actions related to unfinished work, ongoing issues and risks, and any other activities needed totake a product to the next phase of its life. These are summarized and included in the end stage report (forphased handover) and end project report.

governance (corporate)

The ongoing activity of maintaining a sound system of internal control by which the directors and officers of anorganization ensure that effective management systems, including financial monitoring and control systems, havebeen put in place to protect assets, earning capacity and the reputation of the organization.

governance (project)

Those areas of corporate governance that are specifically related to project activities. Effective governance ofproject management ensures that an organization’s project portfolio is aligned with the organization’sobjectives, is delivered efficiently and is sustainable.

handover

The transfer of ownership of a set of products to the respective user(s). The set of products is known as a release.There may be more than one handover in the life of a project (phased delivery). T e final handover takes place inthe closing a project process.


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highlight report

A time-driven report from the project manager to the project board on management stage progress.

host site

A location where project work is being undertaken (e.g. an office or co nstruction site).

impact (of risk)

The result of a particular threat or opportunity actually occurring, or the anticipation of such a result.

information radiator

A general term used to describe the use of walls or boards containing information that can be readily accessed bypeople working on the project. It can contain any information, although it would typically show such things aswork to do and how work is progressing

inherent risk

The exposure arising from a specific risk before any action has been taken to manage it.

initiation stage

The period from when the project board authorizes initiation to when it authorizes the project (or decides not togo ahead with it). The detailed planning and establishment of the project management infrastructure is coveredby the initiating a project process.

issue

A relevant event that has happened, was not planned, and requires management action. It can be any concern,query, request for change, suggestion or off-specification raised during a project. Project issues can be aboutanything to do with the project.

issue register

A register used to capture and maintain information on all of the issues that are being managed formally. Theissue register should be monitored by the project manager on a regular basis.

issue report

A report containing the description, impact assessment and recommendations for a request for change, off-specification or a problem/concern. It is created only for those issues that need to be handled formally.

key performance indicator (KPI)

A measure of performance that is used to help an organization define and evaluate how successful it is in makingprogress towards its organizational objectives.


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lessons log

An informal repository for lessons that apply to this project or future projects.

log

An informal repository managed by the project manager that does not require any agreement by the projectboard on its format and composition. PRINCE2 has two logs: the daily log and the lessons log.

management product

A product that will be required as part of managing the project, and establishing and maintaining quality (e.g.highlight report, end stage report). The management products are constant, whatever the type of project, and canbe used as described, or with any relevant modifications, for all projects. There are three types of managementproduct: baselines, records and reports.

management stage

The section of a project that the project manager is managing on behalf of the project board at any one time, atthe end of which the project board will wish to review progress to date, the state of the project plan, thebusiness case and risks and the next stage plan, in order to decide whether to continue with the project.

maturity

A measure of the reliability, efficiency and effectiveness of a process, function, organization, etc. The mostmature processes and functions are formally aligned with business objectives and strategy, and are supported bya framework for continual improvement.

maturity model

A method of assessing organizational capability in a given area of skill.

milestone

A significant event in a plan’s schedule, such as completion of key work packages, a development step or amanagement stage.

off-specification

Something that should be provided by the project, but currently is not (or is forecast not to be). It might be amissing product or a product not meeting its specifications. It is one type of issue.

operational and maintenance acceptance

A specific type of acceptance by the person or group who will support the product after it has been handed overinto the operational environment.


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outcome

The result of change, normally affecting real-world behaviour and/or circumstances. Outcomes are desired whena change is conceived. They are achieved as a result of the activities undertaken to effect the change.

output

A specialist product that is handed over to a user (or users). Note that management products are not outputsbut are created solely for the purpose of managing the project.

performance targets

A plan’s goals for time, cost, quality, scope, benefits and risk.

plan

A detailed proposal for doing or achieving something which specifies the what, when, how and by whom it willbe achieved. In PRINCE2 there are only the following types of plan: project plan, stage plan, team plan andexception plan.

planned closure

The PRINCE2 activity to close a project.

planning horizon

The period of time for which it is possible to plan accurately.

portfolio

The totality of an organization’s investment (or segment thereof) in the changes required to achieve its strategicobjectives.

premature closure

The PRINCE2 activity to close a project before its planned closure. The project manager must ensure that work inprogress is not simply abandoned, but that the project salvages any value created to date, and checks that anygaps left by the cancellation of the project are raised to corporate, programme management or the customer.

prerequisites (plan)

Any fundamental aspects that must be in place, and remain in place, for a plan to succeed.

PRINCE2 principles

The guiding obligations for good project management practice that form the basis of a project being managedusing PRINCE2.


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PRINCE2 project

A project that applies the PRINCE2 principles.

probability

This is the evaluated likelihood of a particular threat or opportunity actually happening, including aconsideration of the frequency with which this may arise.

problem

A type of issue (other than a request for change or off-specification) that the project manager needs to resolveor escalate. Also known as a concern.

procedure

A series of actions for a particular aspect of project management established specifically for the project (e.g. arisk management procedure).

process

A structured set of activities designed to accomplish a specific objective. A process takes one or more definedinputs and turns them into defined outputs.

producer

The person or group responsible for developing a product.

product

An input or output, whether tangible or intangible, that can be described in advance, created and tested.PRINCE2 has two types of products: management products and specialist products.

product breakdown structure

A hierarchy of all the products to be produced during a plan.

product checklist

A list of the major products of a plan, plus key dates in their delivery.

product description

A description of a product’s purpose, composition, derivation and quality criteria. It is produced at planningtime, as soon as possible after the need for the product is identified.


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product flow diagram

A diagram showing the sequence of production and interdependencies of the products listed in a productbreakdown structure.

product status account

A report on the status of products. The required products can be specified by identifier or the part of theproject in which they were developed.

product-based planning

A technique leading to a comprehensive plan based on the creation and delivery of required outputs. Thetechnique considers prerequisite products, quality requirements and the dependencies between products.

programme

A temporary, flexible organization structure created to coordinate, direct and oversee the implementation of aset of related projects and activities in order to deliver outcomes and benefits re lated to the organization’sstrategic objectives. A programme is likely to have a life that spans several years.

project

A temporary organization that is created for the purpose of delivering one or more business products accordingto an agreed business case.

project approach

A description of the way in which the work of the project is to be approached. For example, are we building aproduct from scratch or buying in a product that already exists?

project assurance

The project board’s responsibilities to assure itself that the project is being conducted correctly. The projectboard members each have a specific area of focus for project assurance, namely business assurance for theexecutive, user assurance for the senior (s) and supplier assurance for the senior supplier (s).

project brief

A statement that describes the purpose, cost, time and performance requirements, and constraints for a project.It is created before the project begins, during the starting up a project process, and is used during the initiating aproject process to create the PID and its components. It is superseded by the PID and not maintained.

project closure notification

Advice from the project board to inform all stakeholders and the host sites that the project resources can bedisbanded and support services, such as space, equipment and access, demobilized. It should indicate a closuredate for costs to be charged to the project.


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project initiation documentation (PID)

A logical set of documents that brings together the key information needed to start the project on a sound basisand that conveys the information to all concerned with the project.

project initiation notification

Advice from the project board to inform all stakeholders and the host sites that the project is being initiatedand to request any necessary logistical support (e.g. communication facilities, equipment and any projectsupport) sufficient for the initiation stage.

project lifecycle

The period from initiation of a project to the acceptance of the project product.

project management

The planning, delegating, monitoring and control of all aspects of the project, and the motivation of thoseinvolved, to achieve the project objectives within the expected performance targets for time, cost, quality, scope,benefits and risk.

project management team

The entire management structure of the project board, and the project manager, plus any team manager, projectassurance and project support roles.

project management team structure

An organization chart showing the people assigned to the project management team roles to be used, and theirdelegation and reporting relationships.

project manager

The person given the authority and responsibility to manage the project on a day-to-day basis to deliver therequired products within the constraints agreed with the project board.

project mandate

An external product generated by a project the authority commissioning the project that forms the trigger forstarting up a project.

project offic

A temporary office set up to support the delivery of a specific change initiative being delivered as a project. Ifused, the project office undertakes the responsibility of the project support role.


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project plan

A high-level plan showing the major products of the project, when they will be delivered and at what cost. Aninitial project plan is presented as part of the PID. This is revised as information on actual progress appears. It isa major control document for the project board to measure actual progress against expectations.

project product

What the project must deliver in order to gain acceptance.

project product description

A special type of product description used to gain agreement from the user on the project’s scope andrequirements, to define the customer’s quality expectations and the acceptance criteria for the project.

project support

An administrative role in the project management team. Project support can be in the form of advice and helpwith project management tools, guidance, administrative services such as filing, and the collection of actual data.

proximity (of risk)

The time factor of risk (i.e. when the risk may occur). The impact of a risk may vary in severity depending onwhen the risk occurs.

quality

The degree to which a set of inherent characteristics of a product, service, process, person, organization, systemor resource fulfils requirements.

quality assurance

An independent (of the project team) check that products will be fit for purpose or meet requirements.

quality control

The process of monitoring specific project results to determine whether they comply with relevant standardsand of identifying ways to eliminate causes of unsatisfactory performance.

quality criteria

A description of the quality specification that the product must meet, and the quality measurements that willbe applied by those inspecting the finished product.

quality inspection

A systematic, structured assessment of a product carried out by two or more carefully selected people (thereview team) in a planned, documented and organized fashion.


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quality management

The coordinated activities to direct and control an organization with regard to quality.

quality management approach

An approach defining the quality techniques and standards to be applied, and the various responsibilities forachieving the required quality levels, during a project.

quality management system

The complete set of quality standards, procedures and responsibilities for an organization or specific entity (site,business unit, etc.) within that organization.

residual risk

The risk remaining after the risk response has been applied.

responsible authority

The person or group commissioning the project (typically corporate, programme management or the customer)who has the authority to commit resources and funds on behalf of the commissioning organization.

reviewer

A person or group independent of the producer who assesses whether a product meets its requirements asdefined in its product description.

risk

An uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives. Arisk is measured by a combination of the probability of a perceived threat or opportunity occurring, and themagnitude of its impact on objectives.

risk actionee

A nominated owner of an action to address a risk. Some actions may not be within the remit of the risk ownerto control explicitly; in that situation there should be a nominated owner of the action to address the risk. He orshe will need to keep the risk owner apprised of the situation.

risk appetite

An organization’s unique attitude towards risk-taking that in turn dictates the amount of risk that it considersacceptable.


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risk estimation

The estimation of probability and impact of an individual risk, taking into account predetermined standards,target risk levels, interdependencies and other relevant factors.

risk evaluati n

The process of understanding the net effect of the identified threats and opportunities on an activity whenaggregated together.

risk exposure

The extent of risk borne by the organization at the time.

risk management

The systematic application of principles, approaches and processes to the tasks of identifying and assessing risks,planning and implementing risk responses and communicating risk management activities with stakeholders.

risk management approach

An approach describing the goals of applying risk management, as well as the procedure that will be adopted,roles and responsibilities, risk tolerances, the timing of risk management interventions, the tools and techniquesthat will be used, and the reporting requirements.

risk owner

A named individual who is responsible for the management, monitoring and control of all aspects of a particularrisk assigned to them, including the implementation of the selected responses to address the threats or tomaximize the opportunities.

risk profile

A description of the types of risk that are faced by an organization and its exposure to those risks.

risk register

A record of identified risks relating to an initiative, including their status and history.

risk response

Actions that may be taken to bring a situation to a level where expos re to risk is acceptable to the organization.These responses fall into a number of risk response categories.


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risk response category

A category of risk response. For threats, the individual risk response category can be to avoid, reduce, transfer,share, accept or prepare contingent plans. For opportunities, the individual risk response category can be toexploit, enhance, transfer, share, accept or prepare contingent plans.

risk tolerance

The threshold levels of risk exposure that, with appropriate approvals, can be exceeded, but which whenexceeded will trigger some form of response (e.g. reporting the situation to senior management for action).

risk tolerance line

A line drawn on the summary risk profile. Risks that appear above this line cannot be accepted (lived with)without referring them to a higher authority. For a project, the project manager would refer these risks to theproject board.

schedule

A graphical representation of a plan (e.g. a Gantt chart), typically describing a sequence of tasks, together withresource allocations, which collectively deliver the plan. In PRINCE2, project activities should be documentedonly in the schedules associated with a project plan, stage plan or team plan. Actions that are allocated fromday-to-day management may be documented in the relevant project log (i.e. risk register, daily log, issueregisteror quality register) if they do not require significant activity.

scope

For a plan, the sum total of its products and the extent of their requirements. It is described by the productbreakdown structure for the plan and associated product descriptions.

scope tolerance

The permissible deviation in a plan’s scope that is allowed before the deviation needs to be escalated to the nextlevel of management. Scope tolerance is documented in the respective plan in the form of a note or reference tothe product breakdown structure for that plan. See tolerance.

Scrum

An iterative, timeboxed approach to product delivery that is described as ‘a framework within which people canaddress complex adaptive problems, while productively and creatively delivering products of the highest possiblevalue’ (Schwaber and Sutherland, 2016).

Scrum master

A Scrum role that is responsible for ensuring Scrum is understood and enacted and that the Scrum team adheresto Scrum theory, practice and rules.


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senior supplier

The project board role that provides knowledge and experience of the main discipline(s) involved in theproduction of the project’s deliverable(s). The senior supplier represents the supplier’s interests within theproject and provides supplier resources.

senior user

The project board role accountable for ensuring that user needs are specified correctly and that the solutionmeets those needs.

share (risk respon e)

A risk response to either a threat or an opportunity through the application of a pain/gain formula: both partiesshare the gain (within pre-agreed limits) if the cost is less than the cost plan, and both share the pain (againwithin pre-agreed limits) if the cost plan is exceeded.

specialist product

A product whose development is the subject of the plan. The specialist products are specific to an individualproject (e.g. an advertising campaign, a car park ticketing system, foundations for a building or a new businessprocess). Also known as a deliverable. See also output.

sponsor

The main driving force behind a programme or project. PRINCE2 does not define a role for the sponsor, but thesponsor is most likely to be the executive on the project board, or the person who has appointed the executive

stage

See management stage.

stage plan

A detailed plan used as the basis for project management control throughout a management stage.

stakeholder

Any individual, group or organization that can affect, be affected by or perceive itself to be affected by, aninitiative (i.e. a programme, project, activity or risk).

start-up

The pre-project activities undertaken by the executive and the project manager to produce the outline businesscase, project brief and initiation stage plan.


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supplier

The person, group or groups responsible for the supply of the project’s specialist products.

tailoring

Adapting a method or process to suit the situation in which it will be used.

team manager

The person responsible for the production of products allocated by the project manager (as defined in a workpackage) to an appropriate quality, timescale and at a cost acceptable to the project board. This role reports to,and takes direction from, the project manager. If a team manager is not assigned, the project managerundertakes the responsibilities of the team manager role.

team plan

An optional level of plan used as the basis for team management control when executing work packages.

theme

An aspect of project management that needs to be continually addressed, and that requires specific treatmentfor the PRINCE2 processes to be effective.

threat

An uncertain event that could have a negative impact on objectives or benefits.

time tolerance

The permissible deviation in a plan’s time that is allowed before the deviation needs to be escalated to the nextlevel of management. Time tolerance is documented in the respective plan. See also tolerance.

time-driven control

A management control that is periodic in nature, to enable the next higher authority to monitor progress (e.g. acontrol that takes place every 2 weeks). PRINCE2 offers two key time-driven progress reports: checkpoint reportand highlight report.

timebox

A finite period of time when work is carried out to achieve a goal or meet an objective. The deadline should notbe moved, as the method of managing a timebox is to prioritize the work inside it. At a low level a timebox willbe a matter of days or weeks (e.g. a sprint). Higher-level timeboxes act as aggregated timeboxes and containlower-level timeboxes (e.g. stages).


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tolerance

The permissible deviation above and below a plan’s target for time and cost without escalating the deviation tothe next level of management. There may also be tolerance levels for quality, scope, benefits and risk. Tolerance isapplied at project, management stage and team levels.

tranche

A programme management term describing a group of projects structured around distinct step changes incapability and benefit delivery.

transfer (risk response)

A response to a threat where a third party takes on responsibility for some of the financial impact of the threat

(e.g. through insurance or by means of appropriate clauses in a contract).

transformation

A distinct change to the way an organization conducts all or part of its business.

trigger

An event or decision that triggers a PRINCE2 process to begin.

user

The person or group who will use one or more of the project’s products.

user acceptan e

A specific type of acceptance by the person or group who will use the product after it has been handed overinto the operational environment.

user story

A tool used to write a requirement in the form of who, what and why.

variant

A variation of a baselined product. For example, an operations manual may have English and Spanish variants.

version

A specific baseline of a product. Versions typically use naming conventions that enable the sequence or date ofthe baseline to be identified. For example, project plan version 2 is the baseline after project plan version 1.


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waterfall method

A development approach that is linear and sequential, with distinct goals for each phase of development. After aphase of development has been completed, the development proceeds to the next phase and earlier phases arenot revisited (hence the analogy that water flowing down a mountain cannot go back).

work package

The set of information relevant to the creation of one or more products. It will contain a description of the work,the product description(s), details of any constraints on production, and confirmation of the agreement betweenthe project manager and the person or team manager who is to implement the work package that the work canbe done within the constraints.


prince2 pre-course material...the foundation level course is typically an intensive 3 day event...

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