Managing Successful Projects with PRINCE2 2009

Managing Successful Projects with PRINCE2 2009Copyright3MRTLimitedandAPMG2009.ThisMindMapiscreatedby3MRTand basedonManagingSuccessfulProjectswithPRINCE22009underlicencefromAPMG.DisclaimerEveryattempthasbeenmadetoensuretheaccuracyofthisMindMap.However,no liabilitycanbeacceptedforanylossincurredinanywaywhatsoeverbyanyperson relyingsolelyontheinformationcontainedinthisMindMap.TheMindMaphasbeen producedsolelyforthepurposeofexampreparationandshouldnotbetakenas definitiveofthelegalposition.1. 1. Introduction 1.1 The purpose of this manual Describe PRINCE2 method Source of reference on PRINCE2 1.2 The importance of projects Need to balance Maintain business as usual Business change Projects introduce change 1.3 What makes projects different? Project Temporary organization Deliver business products According to agreed Business Case Characteristics Introduce change Have defined start and end Are cross-functional Are unique Are more risky 1.4 Why have a project management method? Project management Planning Delegating Monitoring Control Motivation Achieve project objectives Meet performance targets Time Cost Quality Scope Benefits Risks 1.5 Introducing PRINCE2 1.5.1 What does a Project Manager do? Plans activities Delegates work Monitors progress against plan Exerts control 1.5.2 What is it we wish to control? Costs Timescales Quality Scope Risk Benefits 1.5.3 Structure of PRINCE2 Principles Themes Processes Tailoring 1.6 Related OGC guidance Best-practice guides P3O Gateway M_o_R ITIL PfM MSP Best-practice models P3M3 Subtopic P2MM 1.6.1 What PRINCE2 does not provide Specialist aspects Detailed techniques Leadership capability 1.7 Benefits of PRINCE2 Embodies best practice and governance Applies to any project Is widely recognized and understood Has defined project responsibilities Accountability Delegation Authority Communication Clarifies what project will deliver Why When By whom For whom Meets different management needs Is based on management by exception Focuses on Business Case Defines economical structure of reports Ensures stakeholders are represented Promotes learning and improvement Promotes consistency of work Facilitates assurance and assessment Has expert support ATOs ACOs2. 2. Principles 2.1 Continued business justification Is required to start project Remains valid throughout project Is approved Is documented in Business Case Drives decision-making processes Aligned to business objectives 2.2 Learn from experience Seek lessons Record lessons Act upon lessons When starting project As project progresses As project closes 2.3 Defined roles and responsibilities Within an organization structure Engages stakeholders Business sponsors Users Suppliers 2.4 Manage by stages Provide control points Plan Delegate Monitor Control End stage is a decision point Planning horizons High-level Project Plan Detailed Stage Plan Minimum of two stages 2.5 Manage by exception Define project responsibilities Directing Managing Delivering Delegate authority one level to the next Set tolerances against six objectives Time Cost Quality Scope Risk Benefit Refer exceptions to next management layer 2.6 Focus on products Defines and agrees products Particularly quality requirements Defines scope Use Product Descriptions Purpose Composition Derivation Format Quality criteria Quality method Avoid major risks Acceptance disputes Rework Scope creep User dissatisfaction Underestimation of acceptance activities 2.7 Tailor to suit the project environment Ensure project management method suits project environment Ensure project controls suit project Scale Complexity Importance Capability Risk Explain tailoring in Project Initiation Documentation3. 3. Introduction to PRINCE2 themes 3.1 What are the themes? Describe aspects of project management Must be addressed continually Describe specific PRINCE2 treatment Business Case Organization Quality Plans Risk Change Progress 3.2 Applying the themes Tailor themes to project Scale Nature Complexity Formal/informal Detailed/concise4. 4. Business Case 4.1 Purpose Judge whether project is (and remains) Desirable Viable Achievable 4.2 Business Case defined 4.2.1 What is a Business Case? Tests project viability Is the investment still worthwhile? Is continually updated Costs Risks Benefits 4.2.2 Outputs, outcomes and benefits Output Project's specialist product Outcome Result of using project's outputs Benefit Measurable improvement resulting from outcome 4.2.3 Types of Business Case Depends on project Compulsory Not-for-profit Evolving Customer/supplier Multi-organization Depends on measure Return on investment Non-financial benefits 4.3 The PRINCE2 approach to the Business Case Business case is developed, maintained, verified and confirmed 4.3.1 Developing the Business Case Executive is responsible May be delegated Is derived from: Outline Business Case Project mandate Developed by Starting up a Project Detailed Business Case Outline Business Case Project Plan Risk Register Developed by Initiating a Project 4.3.2 Verifying and maintaining the Business Case Is continually reviewed End of Starting up a Project End of Initiating a Project Part of impact assessment Issues Risks With Exception Plan End of each stage During final stage Part of benefits review 4.3.3 Confirming the benefits Identify benefits Select objective measures Collect baseline measures Define Benefits Review Plan 4.3.4 The contents of a Business Case 4.3.4.1 Reasons Explain why project is required Are aligned to corporate objectives and strategy Are defined in project mandate 4.3.4.2 Business options Do nothing Do minimum Do something 4.3.4.3 Expected benefits Are aligned to corporate objectives and strategy Are mapped from outputs and outcomes Are quantified (with tolerance) Are measurable Are assigned 4.3.4.4 Expected dis-benefits Are negative outcomes Are consequences of activity 4.3.4.5 Timescale Period for incurring costs Period for cost/benefits analysis When benefits are accrued Earliest/latest start date Earliest/latest completion date 4.3.4.6 Costs Are derived from Project Plan Include operations and maintenance costs Include funding arrangements 4.3.4.7 Investment appraisal Compares costs with benefits Covers project costs Covers operations and maintenance costs Investment appraisal techniques: Through-life costs Net benefits Return on investment (ROI) Payback period Discounted cash flow Net present value Sensitivity analysis 4.3.4.8 Major risks May reduce or enhance Benefits Costs Summary of aggregated risks Included in summary risk profile Include project and business risks 4.4 Responsibilities Corporate/programme management Provide project mandate Define Business Case standards Hold Senior User(s) to account for realizing post-project benefits Responsible for Benefits Review Plan (post-project) Executive Responsible for Business Case Responsible for Benefits Review Plan Oversee development of Business Case Senior User(s) Specify benefits Specify project outcomes Ensure products deliver outcomes Ensure benefits are realized Provide benefits statement at benefits reviews Senior Supplier(s) Responsible for supplier Business Case Confirm products are within costs and viable Project Manager Prepare Business Case for Executive Conduct impact analysis of issues/risks Update Business Case at end of stages Report project performance at closure Project Assurance (business assurance) Help develop Business Case Verify and monitor Business Case Ensure project fits programme/corporate strategy Monitor project finance Reassess value-for-money solution Monitor impact of changes on business/Business Case Review impact assessment of changes on Business Case and Project Plan Verify and monitor Benefits Review Plan Project Support Baseline and place under configuration management Advise Project Manager of changes that affect Business Case5. 5. Organization 5.1 Purpose Define and establish the project's structure Accountability Responsibilities 5.2 Organization defined 5.2.1 Project Is temporary organization Delivers products according to Business Case Needs to be flexible Requires broad base of skills 5.2.2 Programme Is temporary flexible organization Coordinates, directs, oversees Implements projects and activities to deliver outcomes and benefits Has longer life than project 5.2.3 Corporate organization Project exists within organization Either functional or project-focused 5.2.4 Roles and jobs PRINCE2 defines roles and responsibilities not jobs Roles can be shared or combined Responsibilities must always be allocated 5.2.5 Three project interests Business User Supplier 5.3 The PRINCE2 approach to organization 5.3.1 Levels of organization Corporate/programme management Sits outside the project management team Commission project Identify Executive Define project-level tolerances Directing Project Board Approves major plans and resources Authorizes stage exceptions Approves completion of each stage Authorizes start of next stage Communicates with stakeholders Managing Project Manager Responsible for day-to-day management Ensures project produces products Time Cost Quality Scope Risk Benefits Delivering Team members Deliver products Quality Timescale Cost 5.3.2 The project management team 5.3.2.1 Project management team structure Is temporary Manages project to conclusion Allows communication to decision-making forums Is backed up by role descriptions Responsibilities Goals Limits of authority Relationships Skills Knowledge Experience Executive and Senior User roles can be combined Project Manager and Executive roles cannot be shared Project Manager and Project Board accountability cannot be delegated 5.3.2.2 Project Board Includes Executive, Senior User(s) and Senior Supplier(s) Is accountable for project success/failure Provides unified direction Delegates effectively Facilitates integration with corporate/external organizations Provides resources Authorizes funds Ensures effective decision making Supports Project Manager Ensures effective communication Project team External stakeholders Has four key characteristics Authority Credibility Ability to delegate Availability 5.3.2.3 Project Assurance Is Project Board role Monitors all aspects of the project's performance and products Is independent of Project Manager 5.3.2.4 Change Authority Is Project Board responsibility Can delegate at initiation stage Agrees scale of change severity ratings 5.3.2.5 Size of the Project Board Is agreed by Executive Is tailored to project Should be as small as possible 5.3.2.6 Project Manager Single focus for day-to-day management Runs project on behalf of Project Board Normally from customer Manages Team Managers and Project Support Liaises with Project Assurance and Project Board 5.3.2.7 Team Manager Ensures production of products Reports to Project Manager Takes direction from Project Manager May be assigned to Project Manager or separate person Is allocated Work Packages 5.3.2.8 Project Support Is responsibility of Project Manager Provides administrative services and guidance Project management tools Configuration management Provides specialist functions Planning Risk management Is separate from Project Assurance 5.3.2.9 Dealing with changes to the project management team Have clearly defined team structure Have comprehensive role descriptions Use management stages to review roles Use End Stage Reports and Stage Plans 5.3.3 Working with the project team 5.3.3.1 Balancing the project, team and individual People are crucial to success Know different personality types Know how different personality types work together 5.3.3.2 Training needs for project teams Project processes and standards Configuration management procedures Quality methods Progress reporting Introduction to project and its goals Project roles PRINCE2 processes and terminology Specialist training 5.3.3.3 Part-time teams Have more absences and diversions Project Manager negotiates availability/greater tolerance 5.3.4 Working with the corporate organization 5.3.4.1 Line management/functional management Project Board can be more closely involved Lead Direct Prioritize work Resolve issues Project Manager sets up clear project controls Project Manager agrees project controls with Project Board 5.3.4.2 Centre of excellence Defines standards Processes Templates Tools Provides skills and training Provides independent assurance functions 5.3.5 Working with stakeholders 5.3.5.1 Types of stakeholders Support/oppose project Gain/lose from project See project as threat/enhancement Become active supporters or blockers 5.3.5.2 Stakeholder engagement Identify and communicate effectively OGC's MSP six-step procedure: Identify stakeholders (Who?) Create and analyse stakeholder profiles (What?) Define stakeholder engagement strategy (How?) Plan engagements (When?) Engage stakeholders (Do) Measure effectiveness (Results) 5.3.5.3 The Communication Management Strategy Describes means and frequency of communication To internal and external parties Establishes bi-directional communication flows Is documented by Project Manager Is reviewed at each stage boundary Helps corporate/programme management retain control 5.4 Responsibilities Corporate/programme management Appoint Executive Appoint (possibly) Project Manager Provide information to project Executive Appoint Project Manager Confirm project management team appointments Approve Communication Management Strategy Senior User Provide user resources Define and verify user requirements and expectations Senior Supplier Provide supplier resources Project Manager Prepare Communication Management Strategy Review and update Communication Management Strategy Design, review and update project management team structure Prepare role descriptions Team Manager Manage project team members Advise on project team members Advise on stakeholder engagement Project Assurance Advise on selection of project team members Advise on stakeholder engagement Ensure Communication Management Strategy is appropriate Ensure communication activities take place Project Support Provide administrative support for project management team6. 6. Quality 6.1 Purpose Define and implement means to Create products Verify products are fit for purpose 6.2 Quality defined 6.2.1 Quality Product's ability to meet its requirements 6.2.2 Scope Is sum total of products Is defined by Product breakdown structure Product Descriptions 6.2.3 Quality management and quality management systems Quality management: activities that direct and control quality approach Quality management system: quality standards, procedures and responsibilities 6.2.4 Quality planning Define products Define quality criteria and methods Define quality responsibilities 6.2.5 Quality control Fulfil quality requirements Eliminate causes of unsatisfactory performance 6.2.6 Quality assurance Independent of project management team Ensures project direction and management are adequate Ensures project complies with standards and policies Is responsibility of corporate/programme organization Checks planning and control processes are in place Establishes and maintains quality management system Reviews project to assess whether quality requirements will be met 6.3 The PRINCE2 approach to quality 6.3.1 Quality planning Provide secure basis for: Project Board agreement Communicating Control 6.3.1.1 The customer's quality expectations Statement of quality expected from project product Defined in Starting up a Project Included in Project Product Description Cover key quality requirements Cover quality standards and processes Cover quality measurements Often expressed in broad terms Are reviewed at end of each stage 6.3.1.2 Acceptance criteria Prioritized list of measurable definitions Ease of use Ease of support Ease of maintenance Appearance Major functions Development costs Running costs Capacity Availability Reliability Security Accuracy Performance Agreed during Starting up a Project Documented in Project Product Description Reviewed at end of each stage Only changed with Project Board approval 6.3.1.3 The Project Product Description Created in Starting up a Project May be refined during Initiating a Project Subject to change control Checked at stage boundaries Includes: Product purpose Product composition Customer's quality expectations Acceptance criteria, method and responsibilities Project-level quality tolerances Is included in Project Brief Helps select project approach 6.3.1.4 The Quality Management Strategy Is prepared during Initiating a Project Is approved by Project Board Describes how quality management systems apply to project Confirms quality standards,procedures, techniques and tools Outlines quality assurance arrangements Defines quality responsibilities Includes approach to Project Assurance Is maintained throughout project 6.3.1.5 Product Descriptions Created for all products State product purpose Who Why What Define quality Criteria Tolerances Methods Skills Responsibilities Producer Reviewer Approver 6.3.1.6 The Quality Register Is diary of quality events Is created during Initiating a Project Is maintained throughout project Provides audit and assurance information 6.3.2 Quality control 6.3.2.1 Quality methods In-process methods Appraisal methods Testing Quality inspection PRINCE2 quality review technique Objectives Assess product (usually documents) against criteria Involve interested parties in checking product quality Promote wider acceptance of product Confirm product is complete Baseline product for change control Review team roles Chair Presenter Reviewer Administrator Review preparation Make administrative arrangements (chair/administrator) Check product is ready (chair) Confirm availability of reviewers (chair) Distribute copies of product and Product Description (presenter) Review product against quality criteria (reviewers) Submit question list to chair and presenter (reviewers) Annotate product errors and return to presenter (reviewers) Produce question list (chair) and send to presenter Review meeting agenda Personal introductions (chair) Product introduction (presenter) Major/global questions (chair) Product talk-through (presenter) Read back actions (administrator) Determine review result (chair) Complete Conditionally complete Incomplete Close review (chair) Inform interested parties of result (chair) Review follow-up Coordinate actions (presenter) Sign off actions (reviewers) Sign off product (chair) Communicate quality review outcome (administrator) Store quality records (administrator) Request product approval (presenter) Side-benefits Stakeholder engagement Leadership Team building Developing individuals Quality documentation Quality culture 6.3.2.2 Quality records Provide assurance Products are complete Products meet quality criteria Agreed processes were observed Approval authorities and stakeholders are satisfied Audits were conducted and reported Include references to quality inspection documentation Detail defect statistics Detail corrective actions Include quality-related reports 6.3.2.3 Approval records Not specified by PRINCE2 Depend on level of formality Depend on customer/supplier relationship Depend on quality management system 6.3.2.4 Acceptance records Are kept for audit and/or contractual purposes Confirm ultimate approval of product 6.4 Responsibilities Corporate/programme management Provide details of quality management system Provide quality assurance Executive Approve Project Product Description Approve Quality Management Strategy Confirm acceptance of project product Senior User Provide customer's quality expectations and acceptance criteria Approve Project Product Description Approve Quality Management Strategy Approve Product Descriptions Provide resources for user quality activities and product approval Provide acceptance of project product Senior Supplier Approve Project Product Description Approve Quality Management Strategy Approve quality methods, techniques and tools Provide resources for supplier quality activities Approve Product Descriptions for specialist products Project Manager Document customer's quality expectations and acceptance criteria Prepare Project Product Description (with users) Prepare Quality Management Strategy Prepare and maintain Product Descriptions Ensure Team Managers implement quality controls Product Descriptions Work Packages Team Manager Produce products consistent with Product Descriptions Manage quality controls for products Assemble quality records Advise Project Manager of product quality status Project Assurance Advise Project Manager on Quality Management Strategy Assist Project Board and Project Manager by reviewing Product Descriptions Advise Project Manager on quality reviewers/approvers Assure Project Board on Quality Management Strategy Project Support Provide administrative support for quality controls Maintain Quality Register and quality records Help Team Managers and members apply quality processes7. 7. Plans 7.1 Purpose Facilitate communication and control Define means of delivering the products 7.2 Plans defined 7.2.1 What is a plan? A document Describes how, when and by whom targets will be achieved Products Timescales Costs Quality Benefits Backbone of the management information system Kept aligned with Business Case 7.2.2 What is planning? Is process of making and maintaining plan Is vital to project success Predicts project result Scope Quality Risk Timescale Cost Benefits 7.2.3 Three Levels of plan Project Plan Stage Plans Team Plans 7.2.4 The Project Plan States how project's targets will be achieved Provides Business Case with costs and timescales Identifies major control points Used by Project Board to monitor progress Should align with corporate/programme management's plan 7.2.5 Stage Plans Required for each management stage Provides basis for day-to-day control Produced near end of stage 7.2.6 Team Plans Produced by Team Managers Facilitate execution of Work Package Are optional 7.2.7 Exception Plans Show actions required to recover from tolerance deviation Replaces plan in exception Are not produced for Work Packages 7.3 The PRINCE2 approach to plans 7.3.1 Philosophy Use product-based planning Identify products first Then identify activities, dependencies and resources For all levels of plan 7.3.2 Prerequisites for planning - design the plan Audience Presentation and layout Planning tools Estimating methods Levels of plan Monitoring methods 7.3.3 Define and analyse the products Use product-based planning Identifies products and interdependencies Removes ambiguity over expectations Involves users in specifying product requirements Improves communication Clarifies scope boundary Identifies external but necessary products Prepares way for Work Packages Gains agreement on production, review and approval responsibilities 7.3.3.1 Write the Project Product Description Is written by Project Manager with Senior User and Executive Must be as complete as possible 7.3.3.2 Create the product breakdown structure Break plan down until appropriate detail is reached Involve team of people Identify products through structured brainstorming Reach consensus on breakdown structure Identify external products required Decide whether to include different product states Use different shapes/styles/colours for products 7.3.3.3 Write the Product Descriptions Are required for all products Are written as soon as possible Are baselined when plan is baselined Are written with experts and end-users Can be reused for other projects Can be substituted by detailed requirements specification 7.3.3.4 Create the product flow diagram Defines product development sequence Identifies dependencies Is created by Project/Team Manager with stakeholders Can be created in parallel with product breakdown structure Needs very few symbols Can have starting point from which all entry points are attached 7.3.4 Identify activities and dependencies 7.3.4.1 Activities Required to create or change each product Identified by Making list of activities Creating work breakdown structure Include activities for Management Quality checking Specialist product 7.3.4.2 Dependencies Identify internal dependencies Identify external dependencies Delivery of product from another project Purchase order Decision from programme management 7.3.5 Prepare estimates Identify type resource required Estimate effort for each activity by resource type Challenge estimates Estimating techniques Top-down Bottom-up Comparative Parametric Single-point Three-point 7.3.6 Prepare the schedule 7.3.6.1 Define activity schedule 7.3.6.2 Assess resource availability 7.3.6.3 Assign resources 7.3.6.4 Level resource usage 7.3.6.5 Agree control points 7.3.6.6 Define milestones 7.3.6.7 Calculate total resource requirements and costs 7.3.6.8 Present the schedule Presentation formats Gantt charts Critical path diagram Spreadsheets Product checklist 7.3.7 Analyse the risks For resources For activities For planning information Are entered in Risk Register 7.3.8 Document the plan Consolidate costs, controls and text Narrative needed to explain plan Constraints External dependencies Assumptions Monitoring and control Risks Risk responses Consider summary diagrams for Project Board 7.4 Responsibilities Corporate/programme management Set project tolerances Document project tolerances in project mandate Approve Exception Plans for project-level tolerances Provide planning standards Executive Approve Project Plan Define stage tolerances Approve Stage Plans Approve Exception Plans for stage-level tolerances Commit business resources to Stage Plans Senior User Ensure Project Plans and Stage Plans are consistent Commit user resources to Stage Plans Senior Supplier Ensure Project Plans and Stage Plans are consistent Commit supplier resources to Stage Plans Project Manager Design plans Prepare Project Plan and Stage Plans Decide how to apply management and technical stages Instruct corrective action for Work Package-level tolerances Prepare Exception Plan Team Manager Prepare Team Plans Prepare schedules for Work Packages Project Assurance Monitor changes to Project Plan Monitor stage and project progress Project Support Help compile Project Plans, Stage Plans and Team Plans Contribute specialist expertise Baseline, store and distribute Project Plans, Stage Plans and Team Plans8. 8. Risk 8.1 Purpose Identify, assess and control uncertainty Improve ability of project to succeed 8.2 Risk defined 8.2.1 What is a risk? Uncertain event or set of events Affect achievement of objectives Threat or opportunity 8.2.2 What is at risk? Project objectives Time Cost Quality Scope Benefits Risk 8.2.3 What is risk management? Systematic application of procedures Identify risks That affect objectives Described to ensure common understanding Assess risks Likelihood Impact Immediacy Control risks Identify risk responses Assign risk owners Execute, monitor and control responses 8.3 The PRINCE2 approach to risk 8.3.1 Management of Risk (M_o_R) principles Understand project context Involve stakeholders Establish project objectives Develop project risk management approach Report on risks regularly Define roles and responsibilities Establish support structure and supportive culture Monitor early warning indicators Establish review cycle and look for continual improvement 8.3.2 Risk management in projects Identify corporate or programme policies and processes Organizational risk management policy Communicates how risk management is implemented Risk appetite Risk tolerances Escalation procedures Roles and responsibilities Organizational risk management process guide Describes steps to implement risk management Describes associated activities Provides best-practice approach 8.3.3 Risk Management Strategy Is developed before embarking on risk management activities Describes how risk management is embedded in the project Records risk tolerances 8.3.4 Risk Register Captures and maintains risk information Unique identifier Who raised it When it was raised Category Description Probability, impact and expected value Proximity Response category Response actions Status Risk Owner Risk Actionee Maintained by Project Support 8.3.5 Risk management procedure 8.3.5.1 Identify Identify context Understand project objectives Formulate Risk Management Strategy Is influenced by: Customer's quality expectations Number of organizations involved Stakeholder needs Project importance, complexity and scale Assumptions Organization's environment Organization's approach to risk management Project mandate, Project Brief and Project Product Description Includes decisions on: Risk management procedure Tools and techniques Records Risk reporting Timing of activities Roles and responsibilities Risk scalesLikelihoodImpactProximity Risk categories Risk response categories Early warning indicatorsPercentage of Work Packages (not) accomplishedPercentage of approvals (not) accomplishedNumber of issues raised per week/monthPercentage of unresolved issuesAverage number of days issues remain unresolvedAverage number of defectsAdherence to budgetAdherence to schedule Risk tolerances Risk budget Identify risks Recognize threats and opportunities Capture in Risk Register Prepare early warning indicators Understand stakeholders' view Use risk identification techniques Review lessons Risk checklists Risk prompt lists Brainstorming Risk breakdown structure Express risks clearly Cause Event Effect 8.3.5.2 Assess Estimate Assess risk probability and impact Assess risk proximity Assess how risk impact may change Create summary risk profile Use risk estimation techniques Probability trees Expected value Pareto analysis Probability impact grid Evaluate Assess net effect of threats and opportunities Determine if level of risk is within tolerance Use risk evaluation techniques Risk models Expected monetary value 8.3.5.3 Plan Prepare threat responses Avoid Reduce Fallback Transfer Share Accept Prepare opportunity responses Exploit Enhance Share Reject Ensure response is proportional to the risk Inherent risk Exposure before any action is taken Residual risk Risk remaining after risk response has been applied Secondary risk Risks that may occur as a result of invoking a risk response 8.3.5.4 Implement Action risk responses Monitor effectiveness of risk responses Take corrective action Allocate clear roles and responsibilities Risk owner Responsible for management, monitoring and control Risk actionee Assigned to carry out risk response 8.3.5.5 Communicate Checkpoint Reports Highlight Reports End Stage Reports End Project Reports Lessons Reports 8.3.6 Risk budget Is included in project budget To fund specific responses Can be determined by use of expected monetary value Define control mechanisms in Risk Management Strategy 8.4 Responsibilities Corporate/programme management Provide corporate risk management policy Provide risk management process guide Executive Accountable for risk management Ensure business risks are identified, assessed and controlled Escalate risks to corporate/programme management Senior User Ensure user risks are identified, assessed and controlled Senior Supplier Ensure supplier risks are identified, assessed and controlled Project Manager Create Risk Management Strategy Create and maintain Risk Register Ensure risks are identified, assessed and controlled Team Manager Identify, assess and control risks Project Assurance Ensure risk management practices are in line with Risk Management Strategy Project Support Help Project Manager maintain Risk Register9. 9. Change 9.1 Purpose Identify, assess and control potential and approved changes 9.2 Change defined 9.2.1 Issue and change control Ensure issues and changes that affect project baselines Identified Assessed Approved Rejected Deferred 9.2.2 Configuration management Creation, maintenance and controlled change of configuration Configuration items Product component Product Release Integrated with issue and change control 9.2.3 Issues Any relevant, unplanned events Require management action 9.2.4 Types of issue Request for change Off-specification Problem/concern 9.3 The PRINCE2 approach to change 9.3.1 Establish controls 9.3.1.1 Configuration Management Strategy Configuration management procedure Issue and change control procedure Tools and techniques Records Performance reporting Timing of activities Roles and responsibilities Priority scale Severity rating Severity handling Change Authority Change budget 9.3.1.2 Configuration Item Records Status Version Variant Relationships between items 9.3.1.3 Product Status Account Provides product information within defined limits 9.3.1.4 Daily Log Problems/concerns handled informally Required actions Significant events 9.3.1.5 Issue Register Captures and maintains information on formal issues Is monitored by Project Manager regularly 9.3.1.6 Issue Report Description Impact assessment Recommendation For issues handled formally 9.3.2 Configuration management procedure Planning Decide level of configuration management Identification Identify configuration items Allocate unique identifier Record product attributes Control Approve and baseline products Make authorized changes only Store and retrieve project information Ensure security of configuration items Distribute copies of configuration items Archive project documentation Status accounting Product Status Account Current and historical data for each product Verification and audit Compare actual product status against authorized state Also check configuration management procedure Occur at end of each stage Occur at end of project 9.3.3 Issue and change control procedure 9.3.3.1 Capture Determine issue type Determine severity and priority Add to Issue Register or Daily Log Create Issue Report for formal issues 9.3.3.2 Examine Assess impact on project Performance targets Business Case Risk profile Primary stakeholders Check severity and priority Update Issue Register and Issue Report 9.3.3.3 Propose Identify options Evaluate options Recommend options Update Issue Register and Issue Report 9.3.3.4 Decide Escalate issues to Project Board/Change Authority (if beyond authority) Approve/reject/defer recommended option Update Issue Register and Issue Report 9.3.3.5 Implement Take corrective action Update Issue Register and Issue Report 9.4 Responsibilities Corporate/programme management Provide corporate/programme strategy Change control Issue resolution Configuration management Executive Determine Change Authority Determine change budget Set severity ratings Set priority ratings Advise Project Manager Make decisions on escalated issues Continued business justification Senior User Advise Project Manager Make decisions on escalated issues Safeguarding benefits Senior Supplier Advise Project Manager Make decisions on escalated issues Safeguarding complete solution Project Manager Manage configuration management procedure Manage issue and change control procedure Create and maintain Issue Register Implement corrective actions Team Manager Implement corrective actions Project Assurance Advise on examining and resolving issues Project Support Maintain Configuration Item Records Produce Product Status Accounts Help Project Manager maintain Issue Register10. 10. Progress 10.1 Purpose Monitor and compare actual achievements against those planned Forecast project objectives and project viability Control any unacceptable deviations 10.2 Progress defined 10.2.1 What is progress? Measure of achievement of plan objectives At project, stage or Work Package level 10.2.2 What are progress controls? Allow project management team to: Monitor progress Compare achievement with plan Review plans and options against future situations Detect problems Identify risks Initiate corrective action Authorize further work 10.2.3 Exceptions and tolerances Exceptions are forecast deviations beyond agreed tolerances Tolerances are permissible deviations above or below plan targets Time Cost Quality Scope Benefit Risk 10.3 The PRINCE2 approach to progress 10.3.1 Delegating authority 10.3.1.1 The four levels of management Corporate/programme management Project Board Project Manager Team Manager 10.3.1.2 Project Board controls Authorizations Progress updates Exceptions and changes 10.3.1.3 Project Manager controls Authorizations Progress updates Exceptions and changes 10.3.2 Use of management stages for control Management stages are partitions of project Provide review and decision points Ensure key decisions are made prior to detailed work being implemented Clarify impact of external influences Delegate authority to Project Manager on stage-by-stage basis 10.3.2.1 Number of stages Depends on project factors Scale Risk Timing of key decision points Balancing How far ahead to plan Where key decision points are needed The amount of risk Too many versus too few Confidence in the Project Manager Initiation stage and at least one management stage 10.3.2.2 Length of stages Depends on project factors Planning horizon Technical stages Programme activities Level of risk 10.3.2.3 Technical stages Cover design, build and implementation Use specialist skills 10.3.3 Event-driven and time-driven controls Event driven When specific event occurs Time driven At predefined periodic intervals Highlight Report Checkpoint Report 10.3.3.1 Baselines for progress control Project Plan Stage Plans Exception Plan Work Packages 10.3.3.2 Reviewing progress Daily Log Issue Register Product Status Account Quality Register Risk Register 10.3.3.3 Capturing and reporting lessons Lessons Log Lessons Report 10.3.3.4 Reporting progress Checkpoint Report Highlight Report End Stage Report End Project Report 10.3.4 Raising exceptions Work Package-level exceptions Team Manager raised an issue Stage-level exceptions Project Manager produces an Issue Report and Exception Report Project-level exceptions Project Board no longer has authority May ask Project Manager to produce Exception Report 10.4 Responsibilities Corporate/programme management Provide project tolerances Document project tolerances in project mandate Make decisions on Exception Plans for project-level tolerances Executive Provide stage tolerances Ensure progress is consistent from business perspective Make decisions on Exception Plans for stage-level tolerances Recommend action on project exceptions Senior User Ensure progress is consistent from user perspective Senior Supplier Ensure progress is consistent from supplier perspective Project Manager Authorize Work Packages Monitor progress against Stage Plans Produce reports Highlight Reports End Stage Reports Lessons Reports End Project Report Produce Exception Reports for stage-level tolerances Maintain registers and logs Team Manager Agree Work Packages with Project Manager Inform Project Support of completed quality activities Produce Checkpoint Reports Notify Project Manager of Work Package deviations Project Assurance Verify Business Case against external events and project progress Verify changes to Project Plan Confirm stage and project progress against tolerances Project Support Assist with reports Contribute specialist tool expertise Number, record, store, and distribute Issue Reports and Exception Reports Help Project Manager maintain Issue Register and Risk Register Maintain Quality Register for Project Manager11. 11. Introduction to processes 11.1 The PRINCE2 processes Are structured activities Turn defined inputs into defined outputs 11.2 The PRINCE2 journey 11.2.1 Pre-project Trigger is the project mandate Verify project is worthwhile and viable Produce and review Project Brief Decide whether to initiate project 11.2.2 Initiation stage Plan in detail Obtain funding Establish strategies and controls Develop Business Case and Benefits Review Plan Produce Project Initiation Documentation 11.2.3 Subsequent delivery stages Project Manager has day-to-day control Assigns work Ensures products meet specifications Gains approval Ensures progress is in line with plan Ensures performance targets are within tolerances Maintains records Daily Log Lessons Log Issue Register Risk Register Quality Register Configuration Item Records Produces Highlight Reports Updates Business Case Plans next management stage Assign work Monitor progress Take corrective action 11.2.4 Final delivery stage Transition products into operational use Archive documentation Assess project performance against plan Release project resources Plan post-project benefits reviews 11.3 The PRINCE2 process model Starting up a Project Directing a Project Initiating a Project Controlling a Stage Managing Product Delivery Managing a Stage Boundary Closing a Project12. 12. Starting up a Project 12.1 Purpose Ensure prerequisites for initiation are in place Answer question: do we have a viable and worthwhile project? 12.2 Objective Project has business justification Authorities exist Project scope is defined Project approach is selected Individuals are appointed Work of initiation is planned Time is not wasted initiating inappropriate projects 12.3 Context Triggered by the project mandate Refined into the Project Brief Includes outline Business Case Enables Project Board to decide whether to initiate project 12.4 Activities 12.4.1 Appoint the Executive and the Project Manager Review Project Mandate and check understanding Corporate or programme appoint the Executive Executive to appoint Project Manager Create Daily Log 12.4.2 Capture previous lessons Create Lessons Log Review related Lessons Reports Review lessons from corporate or programme Consult others with previous experience Record lessons identified in Lessons Log 12.4.3 Design and appoint the project management team Review Lessons Log Design project management team role descriptions Create project management team Appoint the project management team Add any risks to the Daily Log Project Manager - P 12.4.4 Prepare the outline Business Case Executive to draft Outline Business Case Project Manager create Project Product Description Review risk and update the outline Business Case 12.4.5 Select the project approach and assemble the Project Brief Evaluate possible delivery solutions Select project approach Assemble the Project Brief 12.4.6 Plan the initiation stage Decide on controls for initiation stage Create initiation Stage Plan Review risks for impact of initiation Stage Plan Add any new risks to Daily Log Request authorization to initiate project13. 13. Directing a Project 13.1 Purpose Enable Project Board to be accountable for project success Make key decisions Exercise overall control Delegate day-to-day management to Project Manager 13.2 Objective Authority to initiate project Authority to deliver products Direction and control throughout project Project remains viable Corporate or programme management interface to project Authority to close project Plans for post-project benefits are managed and reviewed 13.3 Context Starts on completion of Starting up a Project Project Board activities Manages by exception Monitors via reports Controls through small number of decision points Assuring continued business justification 13.4 Activities 13.4.1 Authorize initiation Review and approve Project Brief Review and approve Project Product Verify outline Business Case Review and approve Initiation Stage Plan Inform stakeholders Authorize Project Manager to proceed with initiation stage 13.4.2 Authorize the project Review and approve Project Initiation Documentation Review and approve Benefits Review Plan Notify corporate or programme management Authorize Project Manager To deliver the project,or Close the project prematurely 13.4.3 Authorize a Stage or Exception Plan Review and approve End Stage Report Review Stage Plan or Exception Plan Make decision Communicate status to corporate or programme management 13.4.4 Give ad hoc direction Respond to informal requests for advice Respond to escalated Issue Report Respond to Exception Report Respond Highlight Report Respond to corporate or programme advice and decisions 13.4.5 Authorize project closure Review original and current Project Initiation Documentation Review and approve End Project Report Review and gain approval for (updated) Benefits Review Plan Confirm (updated) Business Case Review and issue project closure notification14. 14. Initiating a Project 14.1 Purpose Establish solid foundation for the project Understand work required to deliver products 14.2 Objective Ensure understanding of: Reasons, benefits and risks Scope and products How products will be delivered and costs Who will be involved in decision making How quality will be achieved How baselines will be established and controlled How risks, issues and changes will be identified, assessed and controlled How progress will be monitored and controlled Who need what Information and when How project management method will be tailored 14.3 Context Determine whether project is aligned with corporate/programme objectives Avoid committing significant resources without full understanding 14.4 Activities 14.4.1 Prepare the Risk Management Strategy Review Project Brief Seek lessons Review Daily Log Define the Risk Management Strategy Consult Project Assurance Create and populate Risk Register Seek Project Board approval 14.4.2 Prepare the Configuration Management Strategy Review Project Brief Seek lessons Review Risk Register and Daily Log Define the Configuration Management Strategy Consult Project Assurance Create initial Configuration Item Records Create Issue Register Update Risk Register, Issue Register and Daily Log Seek project Board Approval 14.4.3 Prepare the Quality Management Strategy Review Project Product Description Review Project Brief Seek lessons Review Risk Register and Issue Register Define the Quality Management Strategy Consult Project Assurance Create Quality Register Project Manager - A Project Assurance - R Project Support - P Update Risk Register, Issue Register and Daily Log Seek project Board Approval 14.4.4 Prepare the Communication Management Strategy Review Project Brief Seek lessons Review Risk Register and Issue Register Identify and consult stakeholders Establish information needs with other strategies Define the Communication Management Strategy Consult Project Assurance Update Risk Register, Issue Register and Daily Log Seek project Board Approval 14.4.5 Set up the project controls Review Project Brief Review strategies Seek lessons Review Risk Register and Issue Register Confirm and document management stages Allocate levels of decision making Update project management team structure and role descriptions Confirm project tolerances Summarize project controls Consult Project Assurance Update Risk Register, Issue Register and Daily Log Seek project Board Approval 14.4.6 Create the Project Plan Review Project Brief Seek lessons Review Risk Register and Issue Register Create Project Plan Follow the planning procedure Update Project Product Description Create Configuration Item Records Consult Project Assurance Update Risk Register, Issue Register and Daily Log Seek project Board Approval 14.4.7 Refine the Business Case Review Project Brief Seek lessons Create detailed Business Case Create Benefits Review Plan Consult Project Assurance Update Risk Register, Issue Register and Daily Log Seek project Board Approval 14.4.8 Assemble the Project Initiation Documentation Extract information from Project Brief Project definition Project approach Include or reference Project management team structure Role descriptions Detailed Business Case Quality Management Strategy Configuration Management Strategy Risk Management Strategy Communication Management Strategy Project Plan Project controls Summarize tailoring of PRINCE2 Assemble Project Initiation Documentation Cross-check all information Consult Project Assurance Prepare for next stage Triggers Managing a stage Boundary Request authority to deliver the project15. 15. Controlling a Stage 15.1 Purpose Assign and monitor work Deal with issues Report progress to Project Board Take corrective action to remain within tolerance 15.2 Objective Focus attention on product delivery Control risks and issues Keep Business Case under review Deliver products within quality standards, cost, effort and time Focus project management team on delivery within tolerances 15.3 Context Day-to-day management of the stage Work Packages used to define and control work Towards end of stage Triggers Managing a Stage Boundary Towards end of project Triggers Closing a Project 15.4 Activities Work Packages 15.4.1 Authorize a Work Package Examine Stage Plan Examine Project Initiation Documentation Define each Work Package Review Work Package with Team Manager Review Team Plan Update Stage Plan Update Configuration Item Records Update Quality Register Update Risk Register Update Issue Register 15.4.2 Review Work Package status Review Checkpoint Report Update Risk Register Update Issue Register Update Stage Plan 15.4.3 Receive completed Work Packages Ensure Team Manager has completed Work Package Check Quality Register Ensure each product is approved Confirm Configuration Item Records have beed updated Update Stage Plan Monitoring and reporting 15.4.4 Review the stage status Review progress for stage Decide whether actions are required Revise Risk Register and Issue Register Update Stage Plan Phased handover? Request Product Status Account Ensure products approved Hand over products Consider whether to review lessons End of current stage? Prepare for next stage End of final stage? Prepare to close project 15.4.5 Report highlights Assemble information Checkpoint Reports Risk Register Issue Register Quality Register Lessons Log Product Status Account Revisions to Stage Plan Assemble list of corrective actions Review Highlight Report (previous period) Produce Highlight Report (current period) Distribute Highlight Report Issues 15.4.6 Capture and examine issues and risks Informal issues Deal with them Update Daily Log Formal issues Update Issue Register Create Issue Report Report status Risks Update Risk Register Report status Review Stage Status before Taking corrective action Seeking advise from the Project Board Escalating an issue or risk 15.4.7 Escalate issues and risks Examine Stage Plan Examine Project Plan Determine options for recovery Assess impact of options Create Exception Report 15.4.8 Take corrective action Collect information about deviation Identify ways of dealing with deviation Trigger corrective action Via authorizing a Work Package Update Configuration Item Records Update Issue Report Update Issue Register or Daily Log Update Risk Register Update Stage Plan16. 16. Managing Product Delivery 16.1 Purpose Control link between Project Manager and Team Manager Place formal requirements on project work Accepting Executing Delivering 16.2 Objective Work on products is authorized and agreed Team Managers understand objectives Products Effort Cost Timescales Products meet expectations and within tolerance Project Manager receives progress information Accurate At agreed frequency 16.3 Context Team Manager ensures products are delivered Accepts Work Packages Maintains interfaces Creates Team Plan Adheres to development methods Adheres to quality methods Obtains approval 16.4 Activities 16.4.1 Accept a Work Package Review Work Package Produce Team Plan Review risks and raise any new ones risk Agree to deliver Work Package 16.4.2 Execute a Work Package Manage development of products Raise new issues, risks or lessons Obtain approvals Review and report on status 16.4.3 Deliver a Work Package Review Quality Register Review approval records Update Team Plan Deliver completed products According to Work Package Notify Project Manager17. 17. Managing a Stage Boundary 17.1 Purpose Enable Project Board to be provided with information Review success of current stage Approve next Stage Plan Review updated Project Plan Confirm continued business justification Confirm acceptability of risks 17.2 Objective Assure Project Board products are completed and approved Prepare Stage Plan for next stage Review and update Project Initiation Documentation Business Case Project Plan Project approach and strategies Project management team structure and roles Assess project viability and risk exposure Record helpful lessons Request authorization to start next stage 17.3 Context Executed towards end of each stage Also implemented in exception situations 17.4 Activities 17.4.1 Plan the next stage Review and update Project Initiation Documentation Produce Stage Plan for next stage Create/update Configuration Item Records UpdateIssue Register and Risk Register Update Quality Register 17.4.2 Update the Project Plan Check current Stage Plan is up to date Revise Project Plan Update Issue Register and Risk Register 17.4.3 Update the Business Case Review risk appetite, risk capacity and Risk Register Update Benefits Review Plan Examine and review Benefits Review Plan Results of reviews undertaken Need to reviews in the next stage Approved changes Project risk profile and key risks Issue Register Project Plan Time Costs Project environment Revise Business Case Update Risk Register and Issue Register 17.4.4 Report stage end Prepare End Stage Report Create Lessons Report Identify follow-on action recommendation (if phased handover) Seek approval of Exception Plan or Stage Plan Review Communication Management Strategy Send copies of End Stage Report Send copies of Lessons Report 17.4.5 Produce an Exception Plan Update Issue Register Review and update Project Initiation Documentation Produce Exception Plan Create/update Configuration Item Records Update Issue Register and Risk Register Update Quality Register18. 18. Closing a Project 18.1 Purpose Fixed point Conform acceptance of project product Recognize objectives have been achieved OR project has has nothing more to contribute 18.2 Objective Verify user acceptance of products Ensure host site can support products Review project performance against baselines Benefits Assess benefits Update benefits forecast Plan review of unrealized benefits Address open issues and risks with follow-on action recommendations 18.3 Context A clear end More successful than slow drift into use Ensure unachieved objectives are identified Transfers ownership Planned as part of last stage May be triggered by premature closure 18.4 Activities 18.4.1 Prepare planned closure Update Project Plan Request Product Status Account Confirm Project Product delivered Seek approval to give notice that resources can be released 18.4.2 Prepare premature closure Update Issue Register Update Project Plan Request Product Status Account Agree means for recovering products Seek approval to give notice that resources can be released early 18.4.3 Hand over products Prepare follow-on action recommendations Update Benefits Review Plan Hand over products 18.4.4 Evaluate the project Review original Project Initiation Documentation Review current Project Initiation Documentation Prepare End Project Report Prepare Lessons Report 18.4.5 Recommend project closure Identify who needs to be advised Close records Close Issue Register Close Risk Register Close Quality Register Close Daily Log Close Lessons Log Archive project information Prepare draft project closure notification19. 19. Tailoring PRINCE2 to the project environment 19.1 What is tailoring? Appropriate use of PRINCE2 on project Adapt themes Incorporate terms and language Revise management Product Descriptions Revise role descriptions Adjust processes Done by project management team What is embedding? Adoption of PRINCE2 across an organization Process responsibilities Scaling rules Standards Training and development Integration with business processes Tools Process assurance Done by the organization 19.2 General approach to tailoring 19.2.1 Applying the principles Are universal Are not tailored 19.2.2 Adapting the themes Incorporate environmental and project factors Risk Management Strategy Quality Management Strategy Configuration Management Strategy Communication Management Strategy 19.2.3 Applying the organization's terms and language Substitute terms in project documentation to improve understanding 19.2.4 Adapting the management products Modify Product Descriptions/provide template Purpose and quality criteria remain clear 19.2.5 Adapting the roles Match individuals' capability and authority to project roles 19.2.6 Adapting the processes All process activities must be done Responsibilities for activities may change References to management products may change 19.3 Examples of tailoring PRINCE2 Projects in programme environment Project scale Commercial customer/supplier environment Multi-organization projects Project type Sector differences Project management Bodies of Knowledge 19.4 Projects in a programme environment Programme is temporary organization structure Implements related project and activities Delivers outcomes and benefits relating to strategic objectives Can span several years Helps transform organizations 19.4.1 Themes 19.4.1.1 Business Case Programme defines project standards Project Business Case is aggregated into programme Business Case Budget Benefits Contributions to programme blueprint Programme management team manages benefits Project Benefits Review Plan Programme benefits realization plan 19.4.1.2 Organization Programme board Senior Responsible Owner Ensures programme meets objectives Ensures programme delivers benefits Confirm project Executive appointments Programme manager Oversees day-to-day management and delivery Business change manager(s) Oversees benefits definition and management Ensures project capabilities are adopted by organization Representatives of corporate functions Lead supplier Project Executives Integrated programme and project management teams Have clear responsibilities and accountabilities Avoid duplication Have efficient reports and reviews 19.4.1.3 Quality Programme Quality Management Strategy Defines project's Quality Management Strategy Quality assurance and control at programme level 19.4.1.4 Plans Programme monitoring and control strategy Describes project planning standards Programme may provide dedicated planners Identify inter-project dependencies 19.4.1.5 Risk Programme Risk Management Strategy Defines project's Risk Management Strategy Risk categories Risk scales Probability Impact Proximity Risk evaluation techniques Project-level risk tolerance Escalation procedures 19.4.1.6 Change Programme information management strategy Defines project's Configuration Management Strategy Defines project interfaces Programme issue resolution strategy Defines project's change control procedure Defines escalation procedures 19.4.1.7 Progress Programme monitoring and control strategy Influences project reviews and reports Influences project management standards Defines project tolerances Influences management stages 19.4.2 Processes Programme could undertake most of Starting up a Project Appoint Executive and Project Manager Review previous lessons Design and appoint programme management team Prepare Project Brief 19.4.3 Management products Common names for project and programme Use different prefixes and templates Are maintained locally/centrally 19.5 Project scale Is relative to organization Is related to project size Is related to project context 19.5.1 Simple project 19.5.1.1 Themes Organization Consolidate roles and functions Executive and Senior User Project Board and Project Assurance Project Manager and Team Manager Project Manager and Project Support Business Case Business justification is needed Plans Product Descriptions Product checklist Quality Understand levels of quality Risk Risk analysis Risk responses Communicate risk by Checkpoint and Highlight Reports Change Version control standards Secure work storage Progress Some form of control and reporting 19.5.1.2 Processes Remain relevant Starting up a Project can be less formal Starting up a Project and Initiating a Project can be combined 19.5.1.3 Management products Project Board reports could be oral Reports could be email Project Initiation Documentation could be set of presentation slides Documents could include more than one management product 19.6 Commercial customer/supplier environment Has two sets of: Reasons for project Management systems Governance structures Corporate cultures 19.6.1 Themes 19.6.1.1 Business Case Customer Business Case Benefits Internal costs External costs Project risks Operational risks Supplier Business Case Sales objective Account plan objectives Sales territory objectives Market sector objectives 19.6.1.2 Organization Key role decisions Senior Supplier Project Manager Project Board Maintain business justification Adhere to governance rules 19.6.1.3 Quality Is defined by Quality Management Strategy 19.6.1.4 Plans Align payments to each management stage Have break-points in contracts Customer decides how to manage procurement activities Team Plan may be private to supplier Project Manager uses Checkpoint Report to maintain Stage Plan 19.6.1.5 Risk Have more than one Risk Register Have joint Risk Register 19.6.1.6 Change Align change control procedure Align change budget 19.6.1.7 Progress Align reviewing and reporting to governance requirements Frequency Format Formality 19.6.2 Processes Supplier pre-contract activities Starting up a Project Initiating a Project Assess viability of sale Assess costs and prices Align business approval processes 19.6.3 Management products Project Initiation Documentation Work Package Contract 19.7 Multi-organization projects Similar guidance to customer/supplier environment Examples Joint ventures Collaborative research Inter-departmental projects Inter-governmental projects Inter-agency projects Alliance contracting Bidding consortium Partnerships 19.8 Project type 19.8.1 Lifecycle models Align management stages to development lifecycle Design Build Test Transition Use tolerances to match development focus Integrate specialist roles into project management team structure Use PRINCE2 for project management products Use specialist method to define management products Purpose Format Composition Quality criteria Link Managing Product Delivery to specialist product development processes 19.8.2 The evolving project Evolving Business Case Enables organization to make balanced investment commitment Assesses impact of requested changes 19.8.3 The feasibility project Has one Project Plan Has one Business Case Has one set of risks Has one product - recommendation 19.9 Sector differences 19.9.1 Senior Responsible Owner Has overall responsibility for project/programme Is not PRINCE2 role In programme context Project Executive reports to the programme SRO In project context Project SRO undertakes the project Executive role 19.9.2 OGC Gateway Review Examines project at key decision points Provides assurance on project progress Is best practice UK central government Health sector Local government Defence Delivers peer review Can align with PRINCE2 Review 1: Business justification Reviews 2 and 3: Delivery strategy and investment decision Review 4: Readiness for service 19.10 Project management Bodies of Knowledge Describe project management competencies and techniques Leadership Negotiation Interpersonal skills Are non-prescriptive Can be referred to in isolation Are targeted at Project Managers20. Appendix A: Product Description outlines A.1 Benefits Review Plan A.1.1 Purpose Define how and when benefits are measured Define post-project benefits reviews during Closing a Project A.1.2 Composition Benefits to be measured Who is accountable for benefits How to measure benefits Resources needed Baseline measures How product performance will be reviewed A.1.3 Derivation Business Case Project Product Description Programme benefits realization plan Corporate performance monitoring function A.1.4 Format and presentation Document Spreadsheet Presentation slides Project management tool A.1.5 Quality criteria Covers benefits in Business Case Confirms benefits are measurable Records baseline measures Describes timing for measurement Identifies skills/individuals required Confirms effort and cost is realistic Measures and reviews dis-benefits A.2 Business Case A.2.1 Purpose Document justification for product Costs Development Implementation Incremental operations and maintenance Benefits Risks A.2.2 Composition Executive summary Reasons Business options Expected benefits Expected dis-benefits Timescale Costs Investment appraisal Major risks A.2.3 Derivation Project mandate and Project Brief - reasons Project Plan - costs and timescales Senior User(s) - expected benefits Executive - value for money Risk Register Issue Register A.2.4 Format and presentation Document Spreadsheet Presentation slides Project management tool A.2.5 Quality criteria Is consistent with corporate/programme management strategy Aligns Project Plan and Business Case Identifies and justifies Benefits Clarifies how benefits will be realized Defines successful outcome Describes preferred business option Describes preferred sourcing option Describes funding Includes financial and non-financial criteria Includes operations and maintenance costs and risks Conforms to organizational accounting standards States major risks and responses A.3 Checkpoint Report A.3.1 Purpose Report Work Package status A.3.2 Composition Date Period Follow-ups This reporting period: Products being developed Products completed Quality management activities Lessons identified Next reporting period: Products being developed Products to be completed Quality management activities Work Package tolerance status Issues and risks A.3.3 Derivation Work Package Team Plan and actuals Previous Checkpoint Report A.3.4 Format and presentation Oral report to Project Manager Presentation at progress review Document/email to Project Manager Project management tool A.3.5 Quality criteria Produced at required frequency Has timely, useful, objective and accurate information Covers every product in Work Package Includes update on unresolved issues A.4 Communication Management Strategy A.4.1 Purpose Describe communication means and frequency Covers internal and external communication Facilitate stakeholder engagement Establishes bi-directional flow of information A.4.2 Composition Introduction Purpose Objectives Scope Responsibilities Communication procedure Tools and techniques Records Reporting Timing of activities Roles and responsibilities Stakeholder analysis Identification Current relationship Desired relationship Interfaces Key messages Information needs From project To project Provider and recipient Means of communication Format A.4.3 Derivation Corporate communications policies Programme's information management strategy Project Initiation Documentation Project management team structure Risk Management Strategy Quality Management Strategy Configuration Management Strategy Workshops/discussions with stakeholders Stakeholder analysis A.4.4 Format and presentation Stand-alone product Section of Project Initiation Documentation Document Spreadsheet Mindmap Project management tool A.4.5 Quality criteria Identifies and consults all stakeholders Obtains stakeholder agreement Content Frequency Method Considers common communication standard Allows for time, effort and resources in Stage Plans Has appropriate formality and frequency of communication Describes reporting structure between project and programme Incorporates corporate communications facilities A.5 Configuration Item Record A.5.1 Purpose Provide information record History Status Version Variant Relationships A.5.2 Composition Project identifier Item identifier Current version Item title Date of last status change Owner Location Copy-holders Item type Item attributes Stage Users Status Product state Variant Producer Date allocated Source Relationship with other items Cross-references A.5.3 Derivation Configuration Management Strategy Product breakdown structure Stage Plan and Work Package Quality Register Issue Register Risk Register A.5.4 Format and presentation Document Spreadsheet Database Project management tool A.5.5 Quality criteria Reflects product status Is in secure location Version numbers match products Shows version histories Is defined and updated A.6 Configuration Management Strategy A.6.1 Purpose To identify: How and where products will be stored Storage and retrieval security arrangements How versions and variants will be identified How changes will be controlled Responsibility for configuration management A.6.2 Composition Introduction Purpose Objectives Scope Responsibilities Configuration management procedure Issue and change control procedure Tools and techniques Records Reporting Issue Report Product Status Account Timing of activities Roles and responsibilities Scales for priority and severity A.6.3 Derivation Customer's quality expectations Corporate configuration management system Programme Quality Management Strategy User's quality management system Supplier's quality management system Needs of products and environment Project management team structure Workshops and discussions A.6.4 Format and presentation Stand-alone product Section of Project Initiation Documentation Project management tool A.6.5 Quality criteria Clarifies responsibilities Defines key identifier for products Clarifies version control Provides Project Manager with product information Considers corporate/programme management strategy Has efficient retrieval system Has necessary project files Audits Historical records Lessons Is appropriate for size and nature of project Has appropriate resources Considers requirements of operational group A.7 Daily Log A.7.1 Purpose Record: Informal issues Required actions Significant events not caught elsewhere Acts as project diary for Project Manager A.7.2 Composition Date of entry Problem/action/event/comment Person responsible Target date Results A.7.3 Derivation Entries made by Project/Team Manager Thoughts, conversations, observations A.7.4 Format and presentation Document Spreadsheet Desk diary Log book Electronic diary/calendar/task lists Project management tool A.7.5 Quality criteria Understandable entries Filled in date, person responsible and target date Suitable access rights A.8 End Project Report A.8.1 Purpose Review project performance against Project Initiation Documentation Pass on lessons Pass on details of unfinished work A.8.2 Composition Project Manager's report Review of Business Case Benefits achieved Residual benefits expected Net benefits expected Deviations Review of project objectives Targets and tolerances Time Cost Quality Scope Benefits Risk Strategies and controls Review of team performance Review of products Quality records Approval records Off-specifications Project product handover Follow-on action recommendations Lessons Report A.8.3 Derivation Project Initiation Documentation Business Case Project Plan Benefits Review Plan Issue Register Quality Register Risk Register Lessons Report End Stage Reports Exception Reports A.8.4 Format and presentation Presentation to Project Board Document/email to Project Board Project Management Tool A.8.5 Quality criteria Describes abnormal situations Closes issues/recommends follow-on action Accompanied by useful documentation or evidence Confirmed by Project Assurance A.9 End Stage Report A.9.1 Purpose Summarize progress and project situation to date Provides information for Project Board to decide what to do next A.9.2 Composition Project Manager's report Review of Business Case Benefits achieved Residual benefits expected Net benefits expected Deviations Aggregated risk exposure Review of project objectives Targets and tolerances Time Cost Quality Scope Benefits Risk Strategies and controls Review of stage objectives Review of team performance Review of products Quality records Approval records Off-specifications Phased handover Follow-on action recommendations Lessons report Issues and risks Forecast Time Cost Quality Scope Benefits Risk A.9.3 Derivation Current Stage Plan and actuals Project Plan Benefits Review Plan Risk Register Quality Register Issue Register Exception Report Lessons Report Work Packages Updated Business Case A.9.4 Format and presentation Presentation to Project Board Document/email to Project Board Project Management Tool A.9.5 Quality criteria Shows stage performance against plan Describes abnormal situations Confirmed by Project Assurance A.10 Exception Report A.10.1 Purpose Inform Project Board of forecast exception A.10.2 Composition Exception title Cause of exception Consequences of deviation Project Corporate/programme management Options Recommendation Lessons A.10.3 Derivation Current plan and actuals Issue Register Risk Register Quality Register Highlight/Checkpoint Reports Project Board advice A.10.4 Format and presentation Issue raised at progress review Document/email Project management tool A.10.5 Quality criteria Shows status of time and cost performance States reasons for deviation Analyses exception Describes impact Considers implications for Business Case Analyses options Is timely and appropriate A.11 Highlight Report A.11.1 Purpose Provide Project Board with stage status summary A.11.2 Composition Date Period Status summary This reporting period: Work Packages Products completed Products planned Corrective actions Next reporting period: Work Packages Products to be completed Corrective actions Project and stage tolerance status Requests for change Key issues and risks Lessons Report A.11.3 Derivation Project Initiation Documentation Checkpoint Reports Issue Register Quality Register Risk Register Stage Plan and actuals Communication Management Strategy A.11.4 Format and presentation Presentation to Project Board Document/email to Project Board Project Management Tool A.11.5 Quality criteria Has right level and frequency of progress reporting Is provided at required frequency Is timely, useful, accurate and objective Highlights potential problems A.12 Issue Register A.12.1 Purpose Capture information on formally managed issues A.12.2 Composition Issue identifier Issue type Request for change Off-specification Problem/concern Date raised Raised by Issue Report author Issue description Priority Severity Status Closure date A.12.3 Derivation Configuration Management Strategy New issues raised New information on existing issues A.12.4 Format and presentation Document Spreadsheet Database Stand-alone register Carry forward in progress review minutes Project management tool Integrated project register Risks Actions Decisions Issues Assumptions Lessons A.12.5 Quality criteria Indicates action status Uniquely identifies issues Defines update process Transfers risks to Risk Register Has controlled access Is kept in safe place A.13 Issue Report A.13.1 Purpose Describes formal issue Request for change Off-specification Problem/concern A.13.2 Composition Issue identifier Issue type Request for change Off-specification Problem/concern Date raised Raised by Issue Report author Issue description Impact analysis Recommendation Priority Severity Decision Accept Reject Defer Grant concession Approved by Decision date Closure date A.13.3 Derivation Configuration Management Strategy Highlight Report Checkpoint Report End Stage Report Stage Plan Users and supplier teams Quality controls Observation and experience of processes Quality Register Risk Register Lessons Log Completed Work Packages A.13.4 Format and presentation Document Spreadsheet Database Project management tool A.13.5 Quality criteria States issues clearly Has detailed impact analysis Considers all implications Examines effect on tolerances Registers issues correctly Describes decisions accurately A.14 Lessons Log A.14.1 Purpose Records lessons Apply to this project Apply to future projects A.14.2 Composition Lesson type Project Corporate/programme Project and corporate/programme Lesson detail Event Effect Causes/trigger Early warning indicators Recommendations Risk Data logged Logged by Priority A.14.3 Derivation Lessons Reports Project mandate/Project Brief Daily Log Issue Register Quality Register Risk Register Checkpoint Reports Highlight Reports Completed Work Packages Stage Plans with actuals Observation and experience of processes A.14.4 Format and presentation Document Spreadsheet Database Stand-alone log Carry forward in progress review meetings Project management tool Integrated project register Risks Actions Decisions Issues Assumptions Lessons A.14.5 Quality criteria Indicates action status Uniquely identifies lessons Defines update process Has controlled access Is kept in safe place A.15 Lessons Report A.15.1 Purpose Pass on lessons Embed lessons in way of working A.15.2 Composition Executive summary Scope Review: What went well What went badly Recommendations Project management method Specialist methods Project strategies Project controls Abnormal events Review of useful measurements Effort required to create products Effectiveness of Quality Management Strategy Issues and risks Additional details for significant lessons Event Effect Causes/trigger Early warning indicators Recommendations Risk A.15.3 Derivation Project Initiation Documentation Lessons Log Quality Register Issue Register Risk Register Quality records Communication Management Strategy A.15.4 Format and presentation Oral report to Project Board Presentation at progress review Document/email to Project Board Project management tool A.15.5 Quality criteria Examines every management control Provides statistics Estimates versus actuals Success of quality controls Reviews unexpected risks Recommends actions Confirmed by Project Assurance A.16 Plan A.16.1 Purpose Show how and when objectives are achieved A.16.2 Composition Plan description Plan prerequisites External dependencies Planning assumptions Lessons incorporated Monitoring and control Budgets Tolerances Product Descriptions Schedule Gantt/bar chart Product breakdown structure Product flow diagram Activity network Table of resource requirements Table of specific resources A.16.3 Derivation Project Brief Quality Management Strategy Risk Management Strategy Communication Management Strategy Configuration Management Strategy Resource availability Registers and logs A.16.4 Format and presentation Stand-alone product Section of Project Initiation Documentation Document Spreadsheet Presentation slides Mindmap Project management tool A.16.5 Quality criteria Is achievable Bases estimates on resources and/or historical data Has appropriate level of detail Conforms to corporate/programme standards Incorporates lessons from previous projects Incorporates legal requirements Covers management and control activities Supports project strategies Quality Management Strategy Configuration Management Strategy Risk Management Strategy Communication Management Strategy Supports project approach Supports management controls A.17 Product Description A.17.1 Purpose Understand product Nature Purpose Function Appearance Define users Identify information/supply sources Identify quality required Identify activities Produce Review Approve Define people/skills required A.17.2 Composition Identifier Project name Item name Version number Title Purpose Composition Derivation Format and presentation Development skills required Quality criteria Quality tolerance Quality method Quality skills required Quality responsibilities A.17.3 Derivation Product breakdown structure End-users Quality Management Strategy Configuration Management Strategy A.17.4 Format and presentation Document Presentation slides Mindmap Project management tool A.17.5 Quality criteria Has clear and consistent purpose Has sufficient level of detail Is concise Identifies responsibility for product development Has consistent quality criteria Verifies product meets quality criteria Defines requirements of Senior User(s) Confirms product requirements are achievable A.18 Product Status Account A.18.1 Purpose Provide status information Within defined limits Entire project Particular stage Particular area History of specific product A.18.2 Composition Report scope Date produced Product status Product identifier and title Version Status and date of status change Product state Owner Copy-holders Location Users Producer and allocated date Planned and actual baseline date Product Description Product Planned date for next baseline List of related items List of related issues and risks A.18.3 Derivation Configuration Item Records Stage Plan A.18.4 Format and presentation Document Spreadsheet Database report Project management tool output A.18.5 Quality criteria Details and dates match Stage Plan Product name is consistent Product breakdown structure Configuration Item Record A.19 Project Brief A.19.1 Purpose Provide full and firm foundation for initiation A.19.2 Composition Project definition Background Objectives Time Cost Quality Scope Benefits Risk Desired outcomes Scope and exclusions Constraints and assumptions Tolerances Users and interested parties Interfaces Outline Business Case Project Product Description Project approach Project management team structure Role descriptions References A.19.3 Derivation Project mandate Programme management Discussions Corporate management Project Board Users Operations and maintenance organization Suppliers Lessons Log A.19.4 Format and presentation Document Presentation slides Project management tool A.19.5 Quality criteria Is brief Reflects project mandate Reflects requirements of business and users Considers range of project approaches Off-the-shelf Contracted out Developed in-house Designed from new Modified product Maximizes chance of project success Is consistent with corporate social responsibility directive Has SMART objectives Specific Measurable Achievable Realistic Time-bound A.20 Project Initiation Documentation A.20.1 Purpose Define project Give direction and scope Form contract between Project Manager and Project Board Ensure project has sound basis Assess progress, issues and viability Provide single reference source A.20.2 Composition Project definition Background Objectives and outcomes Scope and exclusions Constraints and assumptions Users and interested parties Interfaces Project approach Business Case Project management team structure Role descriptions Quality Management Strategy Configuration Management Strategy Risk Management Strategy Communication Management Strategy Project Plan Project controls Tailoring of PRINCE2 A.20.3 Derivation Project Brief Discussions User Business Supplier A.20.4 Format and presentation Single document Index for collection of documents Document with cross-references to other documents Project management tool A.20.5 Quality criteria Correctly represents project Shows viable project Has complete project management team structure Names Titles Role descriptions Lines of authority Shows control and reporting regime Project Board Project Manager Team Managers Delegated assurance requirements Is consistent with corporate social responsibility directive A.21 Project Product Description A.21.1 Purpose Gain agreement on project scope and requirements Define customer's quality expectations Define acceptance criteria Define acceptance method and responsibilities A.21.2 Composition Title Purpose Composition Derivation Existing products Design specifications Feasibility report Project mandate Development skills required Customer's quality expectations Acceptance criteria Project-level quality tolerances Acceptance method Acceptance responsibilities A.21.3 Derivation Project mandate Discussions with Senior User and Executive Request for proposal A.21.4 Format and presentation Document Presentation slides Mindmap Project management tool A.21.5 Quality criteria Has clear purpose Defines project scope Addresses stakeholder requirements Defines acceptability of products Measurable criteria Realistic and consistent criteria Proven criteria Describes quality expectations Characteristics of key requirements Customer's quality management system Customer/staff satisfaction A.22 Quality Management Strategy A.22.1 Purpose Define quality techniques and standards Define responsibilities A.22.2 Composition Introduction Purpose Objectives Scope Responsibilities Quality management procedure Tools and techniques Records Quality Register Reporting Timing of activities Roles and responsibilities A.22.3 Derivation Project Board Project Brief Project management team structure Project Product Description Organizational standards Supplier and customer quality management systems Configuration management requirements Change control requirements Corporate/programme strategies Workshops and discussions A.22.4 Format and presentation Stand-alone document Section of Project Initiation Documentation Project management tool A.22.5 Quality criteria Defines how customer's expectations will be met Defines responsibilities independent of project and Project Manager Conforms to supplier's and customer's management systems Conforms to corporate/programme quality policy Has appropriate approaches A.23 Quality Register A.23.1 Purpose Issue unique identifier for each quality activity Point to product quality records Summarize quality activities A.23.2 Composition Quality identifier Product identifier Product title Method Roles and responsibilities Dates Result Quality records A.23.3 Derivation Quality Management Strategy Stage Plan Quality activities A.23.4 Format and presentation Document Spreadsheet Database Stand-alone register Carry forward in progress review minutes Project management tool Integrated register Risks Actions Decisions Issues Assumptions Lessons A.23.5 Quality criteria Ensures quality activities are entered Allocates responsibility Describes and assigns actions Has controlled access Is kept in safe place Assigns appropriate levels of control A.24 Risk Management Strategy A.24.1 Purpose Describe risk management techniques and standards Describe responsibilities A.24.2 Composition Introduction Purpose Objectives Scope Responsibilities Risk management procedure Tools and techniques Records Risk Register Reporting Timing of activities Roles and responsibilities Scales Probability Impact Proximity Risk categories Risk response categories Early warning indicators Risk tolerance Risk budget A.24.3 Derivation Project Brief Business Case Corporate/programme management A.24.4 Format and presentation Stand-alone document Section of Project Initiation Documentation Project management tool A.24.5 Quality criteria Defines clear responsibilities Documents risk management procedure Defines scales, expected value and proximity Defines risk reporting requirements A.25 Risk Register A.25.1 Purpose Capture and maintain information on identified risks A.25.2 Composition Risk identifier Risk author Date registered Risk category Risk description Cause Event Effect Probability, impact and expected value Inherent Residual Proximity Risk response categories Threats Avoid Reduce Fallback Transfer Accept Share Opportunities Enhance Exploit Reject Share Risk response Risk status Risk owner Risk actionee A.25.3 Derivation Risk Management Strategy New risks Project Brief Work Packages Daily Log/Issue Register A.25.4 Format and presentation Document Spreadsheet Database Stand-alone register Carry forward in progress review minutes Integrated project register Risks Actions Decisions Issues Assumptions Lessons A.25.5 Quality criteria Indicates action status Uniquely identifies risks Has controlled access Is kept in safe place A.26 Work Package A.26.1 Purpose Pass responsibility for work to Team Manager/member A.26.2 Composition Date Team Manager/person authorized Work Package description Techniques, processes and procedures Development interfaces Operations and maintenance interfaces Configuration management requirements Joint agreements Tolerances Constraints Reporting arrangements Problem handling and escalation Extracts/references Stage Plan Product Descriptions Approval method A.26.3 Derivation Existing commercial agreements Quality Management Strategy Configuration Management Strategy Stage Plan A.26.4 Format and presentation Document Conversation between Project Manager and Team Manager Project management tool A.26.5 Quality criteria Is clearly defined and understood Has Product Description for each product Identifies quality criteria Has agreed standards Defines interfaces Has agreement on constraints Has defined reporting arrangements21. Appendix B: Governance Governance of project management principles Outside scope of PRINCE2 Board has overall responsibility Partially addressed by PRINCE2 Defined roles, responsibilities and performance criteria Project is aligned to corporate strategy Effective delegation of authorization bodies Independent scrutiny by corporate/programme management Culture of improvement and open reporting Fully addressed by PRINCE2 Disciplined governance arrangements Projects have approved plan with authorization points Business Case is supported by relevant information Defined criteria for reporting project status and escalations Project stakeholders are engaged22. Appendix C: Roles and responsibilities C.1 Project Board C.1.1 General responsibilities During start-up and initiation Confirm project tolerances Approve Project Brief Approve Stage Plan for initiation Authorize project initiation Decide whether to use Change Authority Set severity ratings Set priority ratings Approve supplier contract Approve Project Initiation Documentation Authorize project start During project Set stage tolerances Approve Stage Plans Authorize management stages Approve Product Descriptions Approve stage-level Exception Plans Communicate with stakeholders Provide overall guidance and direction Advise Project Manager Ensure risks are tracked and managed Approve chan