PRINCE2 Overview

®
 Agenda

• What is PMBOK Guide / What is PRINCE2 ®

• Characteristics of PRINCE2 ®
 What is PMBOK® Guide ?

 PMBOK® Guide identifies that subset of the project management body

of knowledge generally recognized as good practices
 PMBOK® Guide provides and promotes a common vocabulary within
the project management profession for discussing, writing, and applying
project management concepts
 PMBOK® Guide establishes guidelines for project management
processes, tools, and techniques
 What Is PRINCE2® ?

 Projects in a Controlled Environment (PRINCE)

 PRINCE2® is a book that describes a method for approaching
managing and closing down a project of any type or size
 PRINCE2® tells what should be done and why it should be done
but does not say how it should be done
 PRINCE2® is not prescriptive, rather it is descriptive
 PRINCE2® is a structured management method

®U.K.’s Office of Government Commerce (OGC)

PRINCE2 History

 PRINCE was established in 1989 by CCTA (the Central Computer and

Telecommunications Agency), since renamed the OGC (the Office of
Government Commerce). In June 2010, the Office of Government
Commerce Best Practice Management functions moved into the Cabinet
Office.
 PRINCE was originally based on PROMPT, a project management
method created by Simpact Systems Ltd in 1975, and adopted by CCTA
in 1979 as the standard to be used for all Government information system
projects.
 When PRINCE was launched in 1989, it effectively superseded
PROMPT within Government projects. PRINCE remains in the public
domain and copyright is retained by the Crown. PRINCE2 was published
in 1996, having been contributed to by a consortium of some 150
European organisations.
 PRINCE2
(PRojects IN Controlled Environments) is a
process-based method for effective project
management. PRINCE2 is a de facto standard
used by the UK Government, widely
recognised and practised in the private sector
in the UK and internationally.

PRINCE2®
Methology

Before getting specific about PRINCE2, these are

some general points about project management. They
should help put everything into context.
Questions to answer in Prince2

 Whenever we want to do something, build something, achieve

something or go somewhere, we need to answer some questions:
 What are we trying to do?
 When will we start?
 What do we need?
 Can we do it alone, or do we need help?
 How long will it take?
 How much will it cost?
 PMBOK® Flow

Tools &
Inputs PM Outputs
Techniques
 PRINCE2® Flow

Work Product Business

Outcomes
Outputs Benefits
Five Main Aspects to PRINCE2®

 In order to successfully complete any significant job of

work there are five main aspects that need to be
considered, namely:
• The method to be used, in other words how will you
approach the job
• How will the work be organized
• What are the main factors that need to be taken into
account
• Who will have responsibility for what
• And how will progress be monitored and communicated
 PRINCE2® Project Variables

Cost Timescale Quality

Scope Risk Benefits

 PRINCE2® Project Characteristics

Change Uncertainty

Temporary Unique

Cross-
functional
 PRINCE2® – 7X7X7

 Seven Principles
 The seven Principles provide a best-practice framework for the
project. Ultimately they define a PRINCE2 ® project
 Seven Themes
 The seven Themes provide guidance on aspects of project work
which should be addressed at various points during the undertaking.
They relate to each other and are integrated into the Processes
 Seven Processes
 The seven Processes offer a ‘journey’ through the project so that
critical aspects of project work are neither forgotten nor treated in a
trivial manner
 PRINCE2® Principles

 Continued business justification (Benefits)

 Learn from experience
 Defined roles and responsibilities
 Managed by stages
 Managed by exception (appropriate delegation of authority)
 Focus on products
 Tailor to suit the project environment
 PRINCE2® Processes

 Starting up a project
 Directing a project
 Initiating a project
 Controlling a stage
 Managing product delivery
 Managing a stage boundary
 Closing a project

PRINCE2® processes are management processes

PRINCE2® Structure
Pre- Initiation Subsequent Final delivery
project stage delivery stages stage
Directing Directing a project
SU

Managing SB SB CP

IP Controlling a stage Controlling a stage

Delivering Managing product Managing product

delivery delivery

Key
SU = Starting up a project
IP = Initiating a project
SB = Managing a stage boundary
CP = Closing a project
Project Board

Project
Executive

Senior Senior
Project
Project Project
Board
User Supplier

Project
Manager
PRINCE2® Authority

 Corporate or Program
 Project Board – Project Executive
 Project Manager
 Team Manager(s)

 Tolerances Set By
Project Corporate/Program
Management Stage Project Board
Work Package Project Manager
 PRINCE2® PRE-PROJECT
FLOW
Project Appoint Project Draft Outline
A
Mandate Executive Business Case

Appoint Project Create Daily

Manager Log

• Capture Previous Lessons

• Select Project Approach Request
• Create Project Product Description (High Level) Approval to
A
• Design/Appoint Project Management Team Start Initiation
• Prepare Project Brief Stage
• Prepare Initiation Stage Plan
 PRINCE2® Stages

 Must be at least two management stages:

 Initiation + Execution
 Do not necessarily align to technical phases
PRINCE2® BENEFITS

 Mandate – Very High Level

 Outline Business Case– High Level
 User Defined - Specific
 Business Case - Detailed
 Benefits Review – Verify (usually post-project)

Any time it is recognized that benefits will not be

achieved the Project Board looses authority to
continue.
 PRINCE2® Themes

 Business Case
 Organization
 Quality
 Plan
 Risk
 Change
 Progress
 PRINCE2® Themes
 Business Case The Business Case for a project forms part of its
 Organization very foundation. It is the most important set of
information for a project and drives the decision-
 Quality making process. It is used continually to ensure
 Plan that the project’s progress is aligned with the
business objectives.
 Risk
 Change Answers the questions; Is the project:
• Desirable (cost/benefit/risk balance)
 Progress • Viable (project can deliver the products)
• Achievable (can products provide the
benefits)

Is the responsibility of the Project Executive

Some aspects may be assigned to the Project Manager
PRINCE2® Themes
 Business Case
 Organization Defining all the roles, responsibilities and
relationships for the people involved in
 Quality
managing and executing the project.
 Plan
 Risk
 Change
 Progress

Customer Supplier
User
(Business Interest)
PRINCE2® Themes
 Business Case
 Organization
 Quality The emphasis which PRINCE2® places on
products, or deliverables, means that it is
 Plan easy to see the relevance of traditional
 Risk quality management principles to the
management of projects.
 Change
 Progress Four elements of Quality:
• Quality System
• Quality Planning
• Quality Assurance
• Quality Control
 PRINCE2® Themes
Quality
 Responsibility of the Project Board
 Three views: Executive – User – Supplier
 Project Manager has NO Quality Execution Responsibilities
 (except for the Quality Plan)
PRINCE2® Themes
 Business Case Product-based Planning
 Organization
 Quality These are the backbone of the management
 Plans information system that is required for any
project. PRINCE2® is very concerned with
 Risk
the different levels of plan which need to be
 Change produced and the approvals which are
required before plans are put into action.
 Progress
Three levels of plans:
• Project
• Stage
• Team (optional)
• Exception
PRINCE2® Themes
 Business Case
 Organization
 Quality
 Plan
 Risk Since risk is such a fundamental
consideration within the Business Case,
 Change PRINCE2® identifies Risk as a Theme in its
 Progress own right to assess and take relevant action
in respect of uncertainties.
 PRINCE2® Themes

 Risk Responses
Threat Response Opportunity Response
Share Share
Avoid Exploit
Reduce Enhance
Fallback Reject
Transfer
Accept
PRINCE2® Themes
 Business Case
Change in projects is inevitable so
 Organization PRINCE2® defines procedures for
 Quality managing changes as they occur or become
necessary. This can be a particularly crucial
 Plan element in a project since the rest of the
 Risk project or other projects or perhaps a
program can be affected by changes made
 Change within a project. This Theme also provides
 Progress for Configuration Management which may
be thought of as asset control.

• Request for change

A common approach to Issue • Off-specification (non-conformance)
and Change Control • Problem/concern (issue)
PRINCE2® Themes
 Business Case
 Organization
 Quality
 Plan
 Risk
 Change
 Progress
As important as it is to plan the project it is
equally important to know how the project
is progressing. When the ‘actual state’ is
known and compared to the planned state,
then control is possible.
PRINCE2® v PMBOK® Guide

 A method  Not a methodology

 Descriptive  Prescriptive
 What and Why  How and Why
 Principals & Processes  Processes
 Does not address tools & techniques  Guidelines for tools & techniques
 Defined roles
 Managed by exception
PRINCE2® v PMBOK® Guide

 PMBOK ® can be applied in virtually

any organization
 PRINCE2 ® requires an
organization change
 PMBOK ® places the responsibilities on
the project manager
 PRINCE2 ® is based on
shared responsibilities
Some Definitions

PRINCE2 PMBOK
 Project: A project is a temporary  Project: A temporary endeavor
organization that is created for the undertaken to create a unique
purpose of delivering one or more product, service, or result.
business products according to an
agreed Business Case.
Some Definitions

PRINCE2 PMBOK
 Project Management: The planning,  Project Management: The
delegating, monitoring and control of all application of knowledge, skills,
aspects of the project, and the tools, and techniques to project
motivation of those involved, to achieve activities to meet the project
the project objectives within the requirements.
expected performance targets of time,
cost, quality, scope, benefits and risks.