Chapter 3 People
Chapter 3 People
PEOPLE
Managing Successful Projects with PRINCE2
CHAPTER 3
PEOPLE
3.1
Chapter 3 - People
Context
Key message
The purpose of a project is to deliver change, which will affect people in their business as
usual (BAU) activities, routines, and responsibilities. How well the change is implemented, and
therefore how well the project performs, depends on the capabilities of the project team, the
strength of the relationships between them, and the people impacted by the change.
In PRINCE2, ‘people’ covers those who are working on a project and the relationships between them, as
well as those impacted by a project.
Organizations are a complex ecosystem of fluctuating relationships. Projects change organizations,
regardless of whether or not it is their primary purpose. The success of a project will depend on how
well the project establishes strong relationships with the organizations that support its delivery, as well
as how it fits into the organizational ecosystem to deliver the change.
Projects combine a unique set of people from across the business, user, and supplier communities for a
limited period of time. To successfully deliver the project, all levels of leadership must establish a project
culture that motivates people.
Decisions should be made close to where the relevant knowledge resides. They should be escalated
only if there is a need to consider the impact on other parts of the project ecosystem, the
organizational ecosystem, or to manage wider political implications.
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People
Project
ecosystem
Chapter 3 - People
Organizational
ecosystem
People or groups
Relationships
Figure 3.1 Organizational and project ecosystems
Definitions
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Managing Successful Projects with PRINCE2
Operational day-to-day matters in the life of the individual projects, such as the approval of stage
gates, scope changes, or selection of suppliers, are covered at the local level as a key
responsibility of the project board.
A programme board has also been established to oversee the progress and health of the
FindefTwo programme, with the authority to make decisions at the programme level (such as
agreeing the programme and project tolerances and signing off the completion of each tranche,
including deliverables).
Should there be a need for additional change to investment over 20 percent of the original
programme budget, the investment committee is required to be involved in the decision and
retain ultimate authority over the programme finances.
Finally, strategic decisions must be escalated to the leadership board, who are at the top of Findef
hierarchy. Strategic decisions include: entering the end-user market rather than focusing solely on
business-to-business (B2B), using a new technology, or introducing a new DevOps department in
the corporate structure, which demand a higher-level focus, including mitigation of business and
reputational risks.
Change management is the means by which an organization transitions from the current
state to the target state.
The current and target states can be captured and described as a set of routines, responsibilities,
relationships, cultures, and capabilities.
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People
Identifying which areas of the organization will be impacted by the project as it transitions from the
current state to the target state describes the change the project will deliver. For some projects, there
may be interim states the business will transition through, and these can also be described.
PRINCE2 addresses change by creating and maintaining a change management approach for the
project. In determining the level of detail to capture in the change management approach, it is worth
considering:
● what decisions the change management approach is supporting the project team to make
Chapter 3 - People
● the skills and capabilities required during and after the transition from current to target state
● which areas of the organizational ecosystem are likely to be impacted by the project
● the key relationships to be considered
● the evolving culture
● how best to transition; for example, through learning or upskilling, transitioning knowledge from the
project team, or recruiting new people into the business.
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Managing Successful Projects with PRINCE2
3.2.2 Stakeholders
Projects will impact people from across the organizational ecosystem. Therefore, a project will need to
involve those with a formal role in the project team and key people either impacted by or critical to the
success of the project (who may not hold a formal role). These people are the stakeholders in the
project and will cover the full spectrum of users, suppliers, and the business. Stakeholders can be
external to both the project team and the business.
Chapter 3 - People
Definition: Stakeholder
Any individual, group, or organization that can affect or be affected by (or perceives itself to
be affected by) the project.
A strong understanding of the relationships between the project and the organizational ecosystem, and
the ability to identify key stakeholders at the interface between the two is fundamental to leading
successful change.
These stakeholders are the key influencers, who may be the following:
● senior executives
● those found in the user, supplier, or wider operational communities within the organization
undertaking day-to-day tasks and decision-making
● those who can be identified by considering the bottlenecks where information, knowledge, and
money flow across interfaces (for example, document controllers, technical experts, and commercial
managers); and by speaking to people in the areas impacted by the project to find out who holds the
knowledge in their area and is best informed on how things will practically work
● those who can shape the perception of the majority within the project ecosystem
● these are the people, through their network, who can have the greatest influence on the adoption
of the project products and the realization of project benefits
● taking time to understand their perspectives on the project and any constraints they have will
help improve project delivery
● the people the project management team needs to work closest with to ensure the success of the
project.
Stakeholders at the interface with the project may change over time as the project evolves and
relationships develop.
The way in which a project is established should support relationship building across interfaces. This
can be established through regular meetings and working groups that build a shared understanding of
different perspectives, the project data, and knowledge agreed on by stakeholders.
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People
Project
ecosystem
Suppliers
Chapter 3 - People
Users
Business
Organizational
ecosystem
In figure 3.2 the size of the bubbles can vary. For example, for some projects the majority of the users
may sit in the organizational ecosystem. For some projects all the suppliers could fall within the project
ecosystem as they are uniquely engaged for the specific project and have no other relationships with
the business. Understanding where the business, supplier and user interests sit in each of the
ecosystems helps in deciding how they will be represented on the project and how they will be engaged.
3.2.3 Culture
Projects often combine people from different parts of the organizational ecosystem, where different
working cultures may exist. A project team may need to establish a project culture that is distinct from
the business but in such a way that it remains aligned with the wider organizational ecosystem.
A shared understanding of the project developed with key influencers must be captured as part of the
project brief. This shared understanding of the project combines with an understanding of the external
legal and regulatory obligations and relevant business commitments (such as sustainability targets) to
provide a guide for multi-layered decision-making.
Based on the shared understanding developed with the key influencers, it is possible to establish ways of
working to ensure all impacted areas of the organizational ecosystem are appropriately involved in the
project as it progresses. The ways of working are captured in the management approaches for the project.
Gaining a shared understanding is also enabled through who is assigned to project roles (see Chapter 6),
including decision-makers on the project board who represent business, user, and supplier interests.
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Managing Successful Projects with PRINCE2
The project management team structure and the quality and planning practices in PRINCE2 ensure that
users are represented or involved in defining, developing, quality control of products, and consulted in
the decision-making process.
The shared understanding enables aligned behaviours and sets the culture for the project.
Definition: Culture
Chapter 3 - People
Culture is the set of shared attitudes, values, goals, and ways of working that characterize a
group of people.
At the start of a project, the project culture tends to reflect the organization’s culture. However, a
distinct project culture may emerge as it evolves. It is important that the formal ways of working evolve
to reflect the emerging project culture and support alignment with the wider organizational ecosystem
that the project needs to interact with.
As the project progresses, key influencers on a project may change, as do the key relationships. It is
important to ensure that the shared understanding of the project remains valid and supports the
project’s evolving culture. Project teams should check the shared understanding at the end of each
stage of the project and whenever there is a change in key influencers.
Defined ways of working should remain aligned with how people are actually working. Persistent non-
compliance with project processes is often a leading indicator that the agreed ways of working have
become unaligned with the emerging project culture. Although it is tempting to assume that non-
compliance is because of poor behaviours, there could be an underlying disconnect that is worth
exploring. The ways of working should evolve to remain aligned with the desired project culture and
with the wider organizational ecosystem which the project interacts with.
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People
Definitions
Chapter 3 - People
Collaboration People from across the project ecosystem working together to achieve the
project’s objectives.
Co-creation A specific form of collaboration involving users and key influencers in the design
of products and agreed ways of working to ensure they are adopted by the project and
organizational ecosystems.
Leadership Motivating people to achieve a project’s objectives. On projects, this is best done
through collaboration across the project ecosystem, persuading, influencing, and co-creating
with a focus on managing key relationships and seeking regular feedback to ensure team
members remain aligned to the project’s objectives and agree to joint ways of working.
Management Instructing the execution of tasks in line with agreed ways of working. Co-
creating ways of working with project team members (and stakeholders) significantly
improves people’s willingness to be managed in line with them.
Projects are delivered by people in a temporary team, typically working across organizational
boundaries. As a result, the people assigned to work on projects often have multiple reporting lines.
This reporting line can be to a part of the organization that has allocated the person to the project for a
limited duration. This can also be to a supplier’s organization where external people provide project
skills and capabilities. Sometimes people with specific skills and capabilities are assigned across
multiple projects or are assigned to a project on a part-time basis. This creates reporting lines to
multiple people.
To successfully lead a project team, it is important to be aware of the following:
● Although a project manager has formal authority within the tolerances set by the project board, the
actual power structure that emerges in a project does not always reflect what has been formally
agreed.
● Due to the temporary nature of projects and the multiple reporting lines of people working on the
project, project managers often rely on their ability to influence and motivate people through aligned
interests and relational skills in addition to establishing the shared purpose of the project.
● PRINCE2 defines roles that might not align with a person’s job title.
● Team members often have competing priorities for their time and attention, which may at times
conflict with the needs of the project.
● It is not unusual for members of the project team to be more senior than the project manager,
potentially causing hierarchical tension.
● Some motivational factors may be outside of a project manager’s remit. For example, remuneration
and career progression of project team members.
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Managing Successful Projects with PRINCE2
These factors mean project teams require a different style of management and leadership than that
used for established business teams, as it can be more challenging for a temporary leader or manager
to exercise their authority.
for example directly contributing to the project through activities such as defining, assuring, and
accepting products into the business. They may indirectly contribute by undertaking activities within
their area of the business to accommodate or derive benefit from the project, such as upskilling staff,
changing ways of working, or integrating new products into their area of the organization.
When these activities are outside of the defined project scope, it is important to ensure that there is a
clear understanding of the dependencies on such activities, who is responsible for undertaking them,
and how they will be funded and monitored. If this type of work is not managed carefully, projects can
be delayed or fail to achieve their benefits.
Leading people beyond a project’s direct authority (often across organizational boundaries) requires a
degree of cultural intelligence. Cultural intelligence is the capability to relate and work across cultures
within the organizational ecosystem. Successfully working across cultures requires:
● teams to adapt and find ways to successfully interface with each other
● setting clear project boundaries within which people can flex
● establishing the right conditions for people to succeed
● awareness of and means to consider the many different perspectives that may exist in the project
(such awareness is often referred to as emotional intelligence)
● awareness of the constraints people work within, including different pulls on their time and attention.
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People
An integral part of building an effective team is that team members feel accepted, respected, and able
to express diverse viewpoints without fear of negative consequences. All members of a project team
are responsible for creating this psychological safety for each other through their day-to-day
interactions and by caring for each other’s wellbeing. Team members may also need space to
experiment, inspect, adapt, self-organize, and adjust their ways of working.
PRINCE2 supports building effective teams through the:
● Project plan This explains the team’s goals to create a clear sense of purpose and provides an
Chapter 3 - People
ability to answer questions from stakeholders.
● Project management team structure and the role descriptions These explain the structure of
the team and their associated roles, responsibilities, and relationships to support developing key
relationships and identifying any coaching or training needs (such as influencing skills and how to
handle resistance to the change).
● Communication management approach This explains how team members will actively engage
with and support each other and how relationships will be developed between different groups
within the wider project ecosystem.
● Project initiation documentation This explains the agreed ways of working, empowering the team
to remain focused on delivering the project outcomes.
● Product based planning This approach places great emphasis on getting agreement on what will
meet user needs (product description) and also clarifying the dependencies and sequencing of key
outputs (products).
When teams are virtual, located at a distance from each other, or hybrid, building social cohesion may
need additional activities such as:
● syncing co-location days for key people and teams with a focus on building key relationships
● allowing time for less structured conversations online
● holding ‘away days’ for virtual teams
● using virtual collaboration tools to enhance effectiveness and efficiency of virtual ways of working
● providing opportunities or incentives for people to meet and socialize face-to-face.
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Managing Successful Projects with PRINCE2
across multiple time zones and in virtual teams exhausted individuals, resulting in low team morale.
The project manager is aware of this, and before the detailed design starts for product 1, decides
to bring the team together for a ‘pause and reflect’ day. This is a full day of team building activities
that offer an opportunity to share lessons, re-energize for the upcoming stage, and build social
cohesion within the team.
To ensure that the unity of the team is not lost after the ‘pause and reflect’ day, certain changes
have been agreed. There will be regular project update webinars at different times of day to allow
those in different time zones to attend. There will also be a ‘virtual coffee time’ in the internal
social network platform, giving members of the team an opportunity to interact with each other
informally.
3.4 Communication
Whether it is the primary function of the project or a by-product, projects create change in
organizations. As such, projects are often subject to high levels of scrutiny and open to misconceptions
regarding their purpose and impact. Without a clear approach to communications, this can lead to
unnecessary barriers in implementing any changes, as people seek to protect the current situation or to
limit the perceived negative impact of the project.
PRINCE2 addresses communication in a communication management approach.
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People
Chapter 3 - People
communications platforms or tools for analytics or automation
Standards any standards that apply to communication activities; for example, public
engagement standards and ethical standards
References for any associated documents or products.
● providing information in multiple formats which can be easily shared through these networks
● monitoring whether information is flowing freely throughout the project ecosystem
● identifying any team members or groups who are disconnected and working to reconnect them.
● Remote teams A more deliberate and structured approach is required to ensure information is
flowing through the project ecosystem. The focus is on:
● Hybrid teams Hybrid teams’ means of communication must ensure the project does not develop
separate groups who are more involved or less involved because of their location.
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Managing Successful Projects with PRINCE2
On one occasion, the data science team leader was unsure of the level of detail to be captured in
the solution and related reports. Specifically, they had to decide if it would be sufficient to record
how many hours per project each resource carries out, or if it would also be useful to have that
information at the task-level.
On one hand, reporting at the task level would give assurance to project managers that the team
is allocating their time to priority tasks; on the other hand, reporting at this low level would be a
significant cultural change and the staff could be uncomfortable with such level of scrutiny.
The two team leaders exchanged ideas over coffee and agreed that reporting at the task-level
would be too much. A decision was easily reached to report time at the project level only.
The communication management approach is likely to evolve as the project evolves and becomes more
defined. For complex projects with a wide impact, it can be useful to develop the project with a smaller
group of key influencers in what is sometimes referred to as a ‘quiet phase’.
A ‘quiet phase’ will keep wider communications to a minimum until the project is better defined and
minimize the spread of misinformation or rumours (this is especially important when a project is
politically sensitive and may be of interest to the general public).
It is insufficient to rely solely on periodic reporting to determine how a project is progressing. Reporting
can be subject to bias as people might subconsciously manipulate information based on what is
considered acceptable, expected, or desirable.
An open and transparent environment can reduce the level of bias. However, it is important to have
additional pathways to obtain feedback in the project, such as building strong relationships with key
influencers and monitoring the health of key relationships within the project ecosystem.
Pockets of resistance to the project are a useful indicator of where communications should be focused. In
taking the time to listen to the concerns raised, misconceptions can be identified, and issues can be addressed.
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Chapter 3 - People
For that purpose, the project team has invited key influencers from the local neighbourhood to
join a monthly communication planning meeting. Together, these selected influencers will suggest
ideas and work closely with the project team on the communication messages, formats, and
vehicles to use when the time comes to communicate a clear message to the local community.
Leading
successful
change
People
central to
the method
Leading
Communication successful
teams
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Managing Successful Projects with PRINCE2
● Organizations are fundamentally a collection of people interacting with each other around the core
purposes of that organization. The business justification for a project needs to satisfy all three
project interests: user, business, and supplier. Defining a project that aligns all of these interests can
take time and effort. Therefore, it is important to consider the dynamics of the key relationships
relating to these interests, as they impact how agreement is reached and determine whether the
project continues to be valid. Moreover, it is crucial to recognize that what is considered justification
may change when roles change.
● Business justification can be perception-based, so the communication management approach is a
key enabler to ensure ongoing perceived business justification by managing key relationships and
showcasing progress to demonstrate value.
Manage by stages
● The stages of a project often mark a change in the influencers and any key relationships. They are
good points to review how the project is planned to deliver, ensuring it remains aligned with how
people interact with each other and the wider organizational ecosystem. Stage boundaries often
mark a transition in the organizational design (see Chapter 6).
● Stage boundaries provide a more controlled way to review the skills needed for the next delivery
stages and make changes, even to the Project Board. It is better to have the right people managing
the project rather than people who are unable to effectively contribute.
Manage by exception
● Decisions should be made at the most local level where the knowledge needed to make and own
those decisions resides. Decisions should be progressed through the levels when a decision has the
potential to impact other areas of the project. Therefore, it requires different perspectives to be
considered, or it will have a wider impact outside of the project boundaries.
● The extent of delegation is often dependent on the level of confidence and trust that exists in the
key relationships and will adapt over the life of a project in response to the skills and capabilities of
individuals. Improving confidence and trust improves the ability to manage by exception.
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Focus on products
● Co-creating products, with agreed product descriptions, with the business, user, and supplier
communities unites their different perspectives. This improves the development and adoption of the
products into the business, reducing handover risks and ensuring that operational and maintenance
issues are fully considered.
Chapter 3 - People
rather than attempting to adapt them to the method.
● Tailoring is based on the level of capability or project management maturity, which will evolve over
time as people gain a better understanding of PRINCE2 principles, practices, and processes.
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Managing Successful Projects with PRINCE2
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