Overview of PRINCE2®

Project Management
Module 2
Syllabus (1/2)
1. Understand key concepts relating to project and PRINCE2:
1.1 Recall key concepts related to project management:
a) The definition of a project and project management. (1.3).
b) The aspects of project performance to be managed. (1.3.2).
c) The definition of the integrated elements of PRINCE2: principles,
people, practices, processes and the project context. (1.2, Fig
1.1).
d) The definition of delivery approaches: iterative, linear, hybrid.
(1.4.3).
1.2 Describe key concepts related to project management:
a) The characteristics of a project. (1.3.1).
b) The common reasons why project management is used. (1.2.2).
c) The common challenges that PRINCE2 is designed to address.
(1.2.2).
d) The features and benefits of PRINCE2.
e) Projects in context/project environment. (1.4 excl 1.4.3).

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Syllabus (2/2)
2. Understand how the PRINCE2 principles underpin the PRINCE2
method.
2.1 Explain the PRINCE2 principles:
continued business justification, learn from experience, defined
roles and responsibilities, manage by stages, manage by exception,
focus on products, tailor to suit the project. (2.1-2.7).
2.2 Explain how and why the principles provide the basis of applying
PRINCE2, and which factors influence the way the PRINCE2 method
can be tailored and applied, who is responsible, and how tailoring
decisions are documented. (Section 2, Ref 2.7, fig 2.1).

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What you will learn
In this session, we’re going to cover:
• the definitions and characteristics of a
project
• what makes a project a PRINCE2 project
• the features and benefits of PRINCE2
• the role of project management
• the seven aspects of project performance
to be managed
• the PRINCE2 principles
• the integrated elements of PRINCE2
• overview of PRINCE2 processes
• the user/supplier context
• applying and tailoring PRINCE2.

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What is a project?

A temporary organization that is created

for the purpose of delivering
one or more business products according
to an agreed business case.

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Characteristics of a project

cross-functional change

PROJECT

uncertainty unique

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temporary
Topics not included in PRINCE2

specialist detailed
aspects techniques

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The five integrated elements
Project
context

Practices People Processes

Principles

Figure 1.1 The five integrated elements of PRINCE2

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Features and benefits of
PRINCE2

Common
universal language and Increased
concepts organizational
maturity

flexible Part of an
proven integrated suite
Outcome of methods
focused

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Benefits of PRINCE2 for
an individual
You will:
learn
common clearly
project improve understand
management your career your role as
gain a
terminology prospects project
globally
manager
recognized
certification

know how
to start, know how
improve
manage the to
your
steps, and structure
standing
close a a project
within your
project organization

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Project management
Planning

The application of
methods, tools,
techniques, and Controlling Motivating Delegating
competencies

Monitoring

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Is this a project?
A new production line is being Project characteristics
installed in a factory requiring a
significant investment in new Cross functional
equipment, resources, systems
Uncertainty
and infrastructure, and bringing
new product and market Temporary
opportunities.
Unique

Introduce change

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Is this a project?
The Communications Manager in Project characteristics
a large not-for-profit organization
is reviewing the approach to Cross functional
internal and external
Uncertainty
communication, including
stakeholder mapping, Temporary
communication systems and
Unique
tools and staffing.
Introduce change

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Is this a project?
The finance team of a large Project characteristics
manufacturing company have
been asked to investigate how Cross functional
they can better integrate financial
Uncertainty
systems with other management
systems in the company. Temporary ?
Unique ?
Introduce change

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Aspects of project performance
benefits costs

risk time

scope
quality

sustainability
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Project context

Organizational Delivery Scale

context method

Commercial Sustainability
context

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Users, suppliers and business
PRINCE2 projects must have:

A user who will A supplier who will The business

specify the provide provides the
desired outputs the resources and project mandate and
expertise to structure for project
deliver the governance
products

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Organizational context
Business

Portfolio

Programme Programme

Project A Project B Project C Project D Project E

Figure 1.2 Various project contexts

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Delivery methods
Linear-sequential approach Steps occur
in sequence and product is available
during or at the end of the project.

Iterative-incremental approach Steps

occur iteratively throughout the project. Also
referred to as the agile approach.

Hybrid approach Different elements

of the project use either of the two
approaches.
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The five integrated elements
Project
context

Practices People Processes

Principles

Figure 1.1 The five integrated elements of PRINCE2

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People in PRINCE2
Project
context
Those working on the project

Practices People Processes

Those affected by the project

Principles

Figure 1.1 The five integrated elements of PRINCE2

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PRINCE2 principles
Project
context
Ensure
continued
business
justification Learn from
experience
Define roles,
responsibilities,
and
relationships Practices People Processes
Manage by
Manage exception
by
stages

Tailor to Principles
Focus on
suit the
products
project

Figure 1.1 The five integrated elements of PRINCE2

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PRINCE2 practices
Business Project
Organizing case context

Plans

Quality Practices People Processes

Risks

Issues Progress
Principles

Figure 1.1 The five integrated elements of PRINCE2

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PRINCE2
processes Pre-project Initiation
stage
Subsequent
stage(s)
Final
stage

Directing Directing a project

A process-based Starting
approach for project Up a
project Managing Managing
Closing
management A stage
boundary
A stage
boundary a project
Managing

Initiating Controlling Controlling

a project a stage a stage

Managing Managing
Delivering
product delivery product delivery

Note
• Starting up a project is used by both the directing and managing levels.
• There should be at least two stages, the first of which is the initiation stage.
• Managing a stage boundary is first used at the end of the initiation stage and repeated at the end of each subsequent stage
except the final stage. It is also used to prepare exception plans, which can be done at any time including in the final stage .

Figure 12.1 The PRINCE2 processes

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Process diagrams
Managing a stage This is a PRINCE2 process. Each process contains a number
boundary of activities.

Assess previous This is an activity within a PRINCE2 process. Each activity

lessons contains a number of actions.

This is an event or decision that triggers a PRINCE2 process.

The direction of the arrow indicates which process is being
Project initiation triggered. Where the arrow goes to the business layer, it serves
request to notify the business of an update or request. Double triggers
indicate that there are alternative triggers for a process.

Figure 12.3 Key to process diagrams

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The PRINCE2 journey
Pre-project Initiation Subsequent Final
stage stage(s) stage

Directing Directing a project

Starting
Up a
project Managing Managing
A stage Closing
A stage
boundary boundary a project
Managing

Initiating Controlling Controlling

a project a stage a stage

Managing Managing
Delivering
product delivery product delivery

Figure 12.1 The PRINCE2 processes

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Tailoring a project
The purpose of tailoring is to
ensure that:

● the project management method used is

appropriate to the project
● project controls are appropriate to the
project’s scale, complexity, importance, team
capability, and level of risk.

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Applying and tailoring PRINCE2
External (to project)

Project specific arrangements

Organizational context documented in...
e.g. sector, capability,
culture, policies Changing the Project initiation
method. For documentation
example, (e.g. management
Sustainability context Tailor using alternative approaches)
e.g. business drivers terminology or
and priorities replacing a PRINCE2
technique
Typical contexts

Project plan

Commercial context
e.g. contracts,
relationships
Using the method. Stage plans
For example,
Delivery method assigning roles,
Internal (to project)

e.g. lifecycle model, number of stages,

development techniques, number of teams/
terminology Apply work packages,
setting tolerances Team plans
or choice of
Project scale supporting
e.g. complexity, techniques
duration

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Figure 2.1 How to apply and tailor PRINCE2 to a project
Tailoring example

Simple two-stage project

● project mandate sent by email
● simple PID
● one log for risks, issues, lessons
● verbal highlight and checkpoint reports
● no stage plans, work packages,
team plans, end of stage reports
or issue reports.

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