02 Principles Of Prince2

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Principles

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Lesson Objectives Seven 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 environment

Characteristics of Principles

Importance of PRINCE2 Principles

Definition and Explanation of Principles

Principles


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The Seven PRINCE2

Principles Continued business justification



Manage by stages

Manage by exception

Focus on products


Characteristics of principles

Universal, can be applied to any project

Self validating, proven in practice

Empowering

Principles


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The PRINCE2 Principles are integral to the PRINCE2 method because:

The PRINCE2 principles enable the PRINCE2 method to be applied to any project

irrespective of its scale, organization, type, etc.

The principles ensure that the PRINCE2 method is applied in a manner that is

ideal for a project to succeed.

The principles enable the practitioners of PRINCE2 method to control and

manage the projects effectively.

Principles


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Continued Business Justification

A PRINCE2 project must have continued business justification

Every project, including compulsory projects, must have business justification to begin

with. This will ensure that poorly conceived projects that have no real benefits to the

organization are never initiated and that the initiated projects strategies and objectives

are aligned with those of the corporate.

Justification should be documented in the Business Case

The business justification should be documented in the Business Case and monitored

during project execution at every key milestone to ensure that the project remains on

track and aligned with the business goals throughout the projects life.

Justification must remain valid

The business justification must remain valid throughout the life of the project. Though

the business justification can change it must remain consistent with the project. But if

the justification becomes invalid at any point during the life of the project, the project

must undergo premature closure.

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Learn from Experience

Identify and document lessons

Learning from experience permeates the PRINCE2 method.

At the beginning of the project, lessons from previous similar projects are

identified and documented to verify if they could be applied for the benefit of

the current project.

During project execution, lessons from the current project are documented

and verified to determine if they could be applied for the benefit of the current

project or any of the future projects that are similar to the current one.

At the end of the project, documented lessons are transferred to the centre of

excellence or corporate management for use on future projects.

Principles


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Defined Roles and Responsibilities A PRINCE2 project will have a specific organization structure that contains

agreed roles and responsibilities.

All the three primary stakeholders (viz. business, users and suppliers) interests

need to be effectively represented in the project management team.

Explanation: Projects can be implemented only with the involvement of the peoplewho understand their roles and responsibilities. There should be a well defined

reporting system to ensure that the flow of information on all aspects of project

execution runs smooth.

To ensure this, a PRINCE2 project will have four management levels: Corporate

or programme management, Project Board, Project Manager, and Team

Manager.The Project Board is vested with the authority to oversee the implementation of

the project and is ultimately responsible for the success of the project. The Project

Board is so constituted that the three primary stakeholder interests are

represented.

Principles



Manage by Stages

A PRINCE2 project is planned, monitored and controlled on a stage-by-stage

basis.

Management stages provide control points to senior management.

Explanation: For ease of planning, execution and control, PRINCE2 projects are

divided into management stages. Each management stage will have a Stage Plan

as part of the overall Project Plan. The number of such stages depends on the

nature and complexity of the project. But a PRINCE2 project must have minimum

of two stages: Initiation stage and the another management stage comprising the

rest of the project.

Principles



Manage by Exception A PRINCE2 project has defined tolerances for each project objective to establish

limits of delegated authority.

Tolerances are set for time, cost, quality, scope, risk and benefits.

Explanation: Manage by Exception principle serves the purpose of saving time for

top management. This is ensured by delegation of authority to the various levelsof management. As part of this delegation, tolerances are set for time, cost,

scope, quality, risk, and benefits for each management level. When tolerances

are forecast to be exceeded the issues are escalated to the immediately higher

management level.

Principles



Focus on Products A PRINCE2 project focuses on the definition and delivery of products particularly ,

quality requirements

Projects are out-put oriented instead of activity oriented

Clarity on acceptance criteria of projects products is provided by means of

Product Descriptions

Explanation: This principle ensures that projects products and their attributes are

planned for well in advance and much before the activities for the production of

these products are determined. In the absence of such planning, there is scope

for acceptance disputes, rework, user dissatisfaction, etc.

Principles



Tailor to suit the Project Environment The PRINCE2 method is tailored to suit the projects environment , size,

complexity, importance, capability and risk

Explanation: PRINCE2 method of project management is tailored to suit the

specific requirements of each project. It is important to note that such tailoring is

done for every project. If the PRINCE2 method is used across an organization it issaid to be an embedded organization. Tailoring benefits project management by

reducing the burden and increasing the level of control on the part of the

management in the context of external and project factors.

Principles


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In this chapter, we have learnt about: Seven PRINCE2 Principles

Continued Business Justification



Manage by stages

Manage by exception

Focus on products


Characteristics of Principles

Importance of PRINCE2 Principles


Principles

Documents

02 Principles Of Prince2