PRINCE2 Foundation Guide

Introduction

PRINCE2 stands for PRojets IN Controlled Environments

The "2" denotes the major revision of the method, which was first developed by the Central Computer & Telecommunications Agency (CCTA) in 1989.

Inspired by Prince2 for Beginners : Prince2 Study Guide for certification & project management. By Bryan Mathis.

Benefits

Table 1: Benefits of using PRINCE2

Benefit	Description
Broad applicability	Appropriate for any type of project.
Common language	Allows practitioners from widely varying environments to use the same vocabulary and methodology.
Product focused	Defines the expected outcome of the product and the quality standards used to evaluate it.
Ease of integration	Industries that use other project management models will find that PRINCE2 integrates easily with methods specific to one industry.
Clearly defined roles	All participants in the project know what is expected of each of them. Continuous monitoring: Project viability is evaluated at every phase of the development process.
Management by exception	Provides a framework for escalating problems, known as "exceptions," to the next level of management when they exceed a pre-defined tolerance.
Worldwide adoption and training	Numerous resources are available for learning and using PRINCE2 under expert tutelage.

Project definition

Table 2: PRINCE2 project view

Benefit	Description
Change	PRINCE2 views projects as a pathway to change. Thus, if a task will introduce noticeable change within an organization, then it's very likely to be a project.
Temporary	A project has a clearly defined lifespan, beginning with the decision to move forward with it, and ending when the required product or result is created. Maintenance and minor updates are not part of the project. Major updates are separate projects.
Cross-Functional	Because more than one person or department will be affected by a project, it's important to pull together a cross-functional team from many different areas of the company to serve as a task force for the lifespan of the project.
Unique	Each project has its own unique set of characteristics that affect how it will be managed. Repetitive tasks that are done the same way repeatedly are not unique and aren't considered projects.
Uncertainty	In a project, there are just enough variables that it's impossible to predict everything about the outcome with 100 percent certainty. Uniqueness always produces uncertainty, and uncertainty always produces risk.

The 6 variables / performance targets

Table 3: The 6 PRINCE2 performance targets

Target	Description
Costs	Every project has a budget, but that budget can vary, either up or down. The Project Manager must detect cost overruns as early as possible.
Timescales	Although ideally, every project should be finished before the deadline, that's not always the case. The sooner the Project Manager identifies a delay, the less inconvenient and costly it will be.
Scope	All stakeholders in the project should know what is expected to be delivered in the project, as well as what is not included. The Project Manager's job is to avoid "scope creep," which is the extension of the project's boundaries beyond its defined scope.
Quality	PRINCE2 judges quality by the product's suitability for the purpose it serves. Signs of a potential shortfall in quality should be addressed right away by the Project Manager.
Benefits	This is the overall purpose of the project and its ability to deliver a return on its investment (ROI). The Project Manager must thoroughly understand this purpose and regularly re-evaluate its potential ROI.
Risk	Uncertainty always produces some level of risk, and uncertainty is a characteristic of all projects. The question for the Project Manager is to determine what level of risk is acceptable to the project's stakeholders, and then build in strategies for reducing that risk.

The four elements of PRINCE2

Principles

A set of seven broad "best practices" or core values designed to ensure that the project is being managed properly under the PRINCE2 method.

All 7 principles must be applied if the project is truly being managed according to PRINCE2.

Themes

A set of seven specific areas of project management that are continuously and simultaneously monitored and updated throughout the project.

The themes fall into the categories listed in Table 4.

Table 4: Theme categories

Standards & tolerances	Measure, monitor & control	Roles & responsibilities
Business case Quality Planning	Quality Risk Change Progress	Organisation

Business case

The purpose of the Business Case theme is to take an idea for a project, "make a case" for its benefit to the organisation, develop metrics for measuring that benefit in the form of return on investment (ROI) and other measurable factors, and actually measure those benefits.

Organisation

The purpose of the Organisation theme is to define the roles and responsibilities of the people who make up the Project Management Team. The Organisation theme answers the business question of "who?" Who will be responsible for each area of the project and make sure it is completed according to the requirements of the Business Case?

This Project Management team has three levels:

1. Project Board
2. Project Manager
3. Team Manager

To avoid conflicts of interest, the Project Manager and Project Board levels must be kept separate, and their decision-making authority can't be delegated.

Project board

At the top level of the Project Management Team, PRINCE2 provides for a Project Board that steers the overall concept and direction of the project as directors. PRINCE2 defines several major responsibilities for the Project Board. The Board is appointed by the corporation or program that wishes to develop the project, at its very beginning.

To be complete, the Project Board must always include at least one representative of each of the three stakeholder interests: business, user, and supplier, which are described in Table 5.

Table 5: Project stakeholder interests

Stakeholder	Description
Business	The business representative's job is to monitor the organization's investment in the project to make sure of two requirements: that the Business Case that launched the project continues to exist, and that the project provides value for the money. Executive is the formal title used in the PRINCE2 method for the business representative.
User	The user representative must specify the outputs that users desire and make sure the project provides them. Senior User is the formal title used in the PRINCE2 method for the user representative.
Supplier	The supplier representative represents the specialists who provide the skills and resources needed to produce the product. Suppliers may be internal or external to the organization.

Project manager

The day-by-day project management duties under PRINCE2 fall to the Project Manager, who assumes all delegated authority from the Project Board to make decisions. The Project Manager role is one of great responsibility, and for this reason, it cannot be shared. Five of the 7 Processes are the responsibility of the Project Manager, except appointing the Executive in the Starting up a Project process, and the Directing a Project process. The Project Manager directs the Team Manager or Managers, or for smaller projects can serve in the Team Manager role directly.

It is also the Project Manager's job to prepare, review, and update the Communication Management Strategy, as well as the project management team structure, including the preparation of role descriptions. Although the Project Manager is not allowed to participate participate with Project Assurance, he or she will receive feedback from that process through the Project Board.

The Project Manager also plays a pivotal role in Project Support, which consists of administrative tasks such as project management tools, administrative tasks such as filing, and data collection. Project Support by the Project Manager is required by PRINCE2. However, the Project Manager may delegate the Project Support role to a specialist as long as control is maintained, or the tasks may be delegated to team members.

Team manager

The Team Manager's role is to oversee product production under the direction of the Project Manager. The PRINCE2 method allows the Project Manager to act as Team Manager, depending on the size and scope of the project.

Production tasks are assigned to the Team Manager in Work Packages by the Project Manager. Deliverables are clearly defined for each work package, and reporting requirements are laid out clearly. The Team Manager is responsible for reporting on each required area and other feedback to the Project Manager using the method and frequency assigned in the Work Package.

Processes

A series of 7 steps that are carried out in chronological order, starting with the beginning of the project and ending with its closure.

Tailoring

Although PRINCE2 is applicable to any project, it must be tailored to fit a project's type and size.

Embedding

Occurs when the corporate or program organisation adopts PRINCE2.

Tailoring

Occurs when PRINCE2 is adapted to to the project being undertaken. Steps include:

• Tailoring the seven themes.
• Using PRINCE2 terminology and language.
• Revising product descriptions.
• Revising role descriptions.
• Adjusting the processes as needed.