PRINCE2 in Action

Project management in real terms

Susan Tuttle

• Publisher: ITGP
• Year: 2018
• Print ISBN: 9781849289801
• eBook ISBN: 9781849289825
• Topic: Business
• Subtopic: Project Management
• Index: Business

Used by the UK government and extensively throughout the world, PRINCE2® uses seven principles, seven themes and seven processes, which the author believes can be tailored to any project, in any environment, at any time and with anyone – be it work-related or not.

This step-by-step guide:

• Explains the principles of PRINCE2 in straightforward, manageable chunks;
• Emphasises how to apply PRINCE2 in practice, using real-life examples;
• Is written by an experienced PRINCE2 practitioner and trainer, so you can be sure that the information is based upon approaches that work;
• Gives clear explanations and practical illustrations in each section;
• Explains how to effectively apply PRINCE2's principles, themes and processes to your projects and other real-world scenarios; and
• Has been updated for PRINCE2 2017.

A guide to effective project management

This book will guide you through each step of your project, clearly defining the underlying principles that should be applied to every project, regardless of what is going on inside or outside the project environment. They are sound, proven rules, which can be used as markers on the way to project success.

PRINCE2 is principle-based rather than prescriptive. The principles are:

• Universal in that they apply to every project;
• Self-validating in that they have been proven in practice over many years; and
• Empowering because they give practitioners greater confidence and the ability to influence and shape how a project will be managed.

Susan Tuttle has 20 years' experience in project management, programme management and change management, producing exceptional results across diverse industries. She is an accredited trainer in PRINCE2. Her training style is influenced by her strong commitment to human development. She uses learner-centred theories and principles in her training and writing to help explain and communicate difficult topics.

PRINCE2® is a registered trade mark of the PeopleCert group. Used under licence from PeopleCert. All rights reserved.

CHAPTER 1: PRINCE2 OVERVIEW

Principles

Overview

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

• Universal in that they apply to every project.

• Self-validating in that they have been proven in practice over many years.

• Empowering because they give practitioners of the method added confidence and the ability to influence and shape how the project will be managed.

The PRINCE2 principles provide a framework of good practice for people involved in a project and were developed from lessons taken from both successful and failed projects.

What this means

According to www.businessdictionary.com, guiding principles are defined as a “broad philosophy that guides an organisation throughout its life in all circumstances, irrespective of changes in its goals, strategies, type of work, or the top management.” Principles in the PRINCE2 approach can be defined similarly. Seven underlying principles should be applied to every project, regardless of what is going on inside or outside the project environment. They are sound, proven rules, which can be used as markers on the way to project success.

Illustration

By no means was Jermina’s project perfect, yet she and her project management team received a company-sponsored award for excellence in project management. Jermina had followed the PRINCE2 principles throughout her project. She demonstrated the principles daily, which helped the project end on a successful note.

Decisions on her project did not have to come at a cost to the people and resources working on it. Instead, they were made objectively, with a concentration on confirming continued business justification (principle one). When new changes were required, no one took it personally. It either made business sense to include the change or to continue with the project without the change, depending on the impact on the business case. When things went horribly wrong, the manage by exception principle (principle five) enabled the team to get the right information to the right level of management, who could make an expedient and appropriate decision for the project. It worked like clockwork.

Everyone on the team was encouraged to learn from experience (principle two). With each issue, a lesson was captured and learned. Mistakes that were made were not repeated. On the other hand, positive lessons were always shared and frequently repeated. The team adhered to their defined roles and responsibilities, managed the project in management stages, and tailored the method to suit their circumstances. The focus on products principle (principle six) allowed all the team members to work creatively, so that they could contribute to and produce the best possible products – ones that were fit for purpose and supported the overall justification for the project.

For all their hard work and effort through all the ups and downs that come with managing a project, the team were recognised and rewarded by their company for sticking to the principles.

Themes

Overview

The PRINCE2 themes describe aspects of project management that must be addressed continually as the project progresses through its lifecycle. However, the strength of PRINCE2 is the way in which the seven themes are integrated, and this is achieved because of the specific PRINCE2 treatment of each theme (i.e. they are carefully designed to link together effectively).

How the themes are applied can be influenced by tailoring. This may range from being rigid and prescriptive through to allowing the project management team a large degree of freedom as to how they implement each theme.

All seven themes must be applied in a project, but they should be tailored according to the risk, scale, nature and complexity or simplicity of the project concerned, always ensuring that any minimum requirements specified in a team are satisfied.

What this means

Rules are not meant to be broken. Nor are they meant to be rigid, harsh and unyielding, regardless of the circumstances. They are meant to be helpful in allowing groups of people to get from one point to another without relying on gut instincts or worrying about personality differences, politics and/or conflicts. Themes in PRINCE2 introduce the idea of seven areas of project management that should be considered to set the right balance of rules (restrictions, constraints, limitations, controls, etc.), depending on the project’s individual set of circumstances.

Illustration

Have you ever played Monopoly according to the rules provided by Parker Brothers (the game's publisher) without any deviations? Either due to time restrictions, boredom levels or attention spans (these dependent on the immediate situation or the type, age, or size of the group playing), most people generate their own set of house rules for Monopoly. Some people put a time limit on the whole game and rule that whoever has the most money by the end of that time wins. Other players put limits on amounts to be borrowed from the bank, ensuring the faster demise of some of the players – and thus the overall game. Regardless of the reasons behind them, the house rules are there to suit the situation. They are agreed upfront and adhered to throughout the game. If they don’t work for the players, they are adjusted with a group consensus, and the new set of house rules will then be used to finish off the game.

Processes

Overview

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

What this means

Just as you don’t bake a cake before you’ve mixed the ingredients, it is important to consider the separate activities involved in a project before starting it. The idea behind PRINCE2 processes is to give a sense of the natural order to the activities of a project. Some will have to be modified and adjusted according to the individual project characteristics, but the seven processes help provide guidance on what should be done and when, according to best practice.

Illustration

An organisation reviewed a recently completed project to determine if it was worth the money they had invested in it. In order to conduct the review, the administration staff in the projects office were told to retroactively research the history of the project. They were to look specifically at what problem was being addressed, what options they had available at the time to deal with it – these options included the option that was finally chosen – and identify which of the benefits, if any, that are now being seen in the organisation can be linked to this effort.

According to the information uncovered, the project had gone over budget and over time and had only superficially addressed the original problem. Additionally, it had left the organisation with higher-than-anticipated operating costs to maintain the new solution. An attempt was made to retrofit the benefits, but no solutions were found. A second version of the project was then commissioned to fix these latest problems.

Wouldn’t this assessment have been better placed at the beginning of the first project? A properly understood problem, approach and solution could have been identified and defined at the start of the project, instead of after, when it was too late. Somehow, there never seems to be enough time and/or money to start a project off well, but there’s always enough to do it again!

CHAPTER 2: SEVEN PRINCIPLES

Principle one: Continued business justification

PRINCE2 assertion

A PRINCE2 project has continued business justification.

What this means

Not only should a project be justified in its original expenditure commitment, but the reasons behind it should remain valid throughout the entire expenditure. If the reasons disappear, a decision should be made by management to continue at a loss or stop the effort.

Illustration

A jilted bride, whose fiancé has recently dumped her for one of the bridesmaids, has a decision to make. She has already paid her deposit for the wedding hall. The reason for paying for the wedding was that there was going to be a wedding. The benefits of being a happy, loving couple starting out their lives together far outweighed the expense of hiring out the hall. Now that the wedding has been called off, does it make sense to continue to pay for it? It depends, of course.

If the bridegroom had dumped the bride one year or more before the wedding, the bride could have recouped her deposit without any penalty fees. If it had happened six months prior to the wedding, the bride may have lost the deposit, but could still cancel without having to pay the full price. However, what if the bridegroom’s disappearing act occurred on the wedding day itself? All the costs would already have been spent, but none of the original benefits would be realised. Is it still worth having the reception party, even without the groom? Sounds like this matter might need to be escalated to corporate, programme management or the customer (perhaps the father and/or mother of the bride? Or family attorneys?)

Principle two: Learn from experience

PRINCE2 assertion

PRINCE2 project teams learn from previous experience: lessons are sought, recorded and acted upon throughout the life of the project.

What this means

This assertion centres on the idea that we should take time to review and reflect on past experiences to make future ones easier, faster and better. If we jump too fast into the doing of a project – without looking back at what has been done before – we will either be doomed to repeat our mistakes or to recreate the wheel every time we start something new.

Illustration

Six years ago, company X found itself in a situation where its headquarters was the only office that had access to and control of any of the company policies. Satellite offices in other locations complained they could not tailor work to suit their local needs. A project was immediately put in place.

Three years later, the new chief executive officer (CEO) at the headquarters office inquired about the set of policies and procedures used at the organisation to full...

Table of contents

• Cover
• Title
• Copyright
• Contents
• Introduction
• Chapter 1: PRINCE2 Overview
• Chapter 2: Seven Principles
• Chapter 3: Seven Themes
• Chapter 4: Seven Processes
• Chapter 5: Starting up a Project
• Chapter 6: Directing a Project
• Chapter 7: Initiating a Project
• Chapter 8: Controlling a Stage
• Chapter 9: Managing Product Delivery
• Chapter 10: Managing a Stage Boundary
• Chapter 11: Closing a Project
• Chapter 12: Additional Suggestions and Procedures
• Chapter 13: Tailoring PRINCE2
• Chapter 14: Roles
• Chapter 15: Management Products
• ITG Resources