Copyright protected. Use is for Single Users only via …...Introduction PRINCE2® is a generic project management method which focuses on the management aspects of projects. PRINCE2®

Copyright protected. Use is for Single Users only via a VHP Approved License. For information and printed versions please see www.vanharen.net

PRINCE2® 2017 EDITION – A POCKET GUIDE


Other publications by Van Haren Publishing

Van Haren Publishing (VHP) specializes in titles on Best Practices, methods and standards within four domains:

- IT and IT Management- Architecture (Enterprise and IT)- Business Management and- Project Management

Van Haren Publishing is also publishing on behalf of leading organizations and companies: ASLBiSL Foundation, BRMI, CA, Centre Henri Tudor, Gaming Works, IACCM, IAOP, IFDC, Innovation Value Institute, IPMA-NL, ITSqc, NAF, KNVI, PMI-NL, PON, The Open Group, The SOX Institute.

Topics are (per domain):

IT and IT ManagementABC of ICTASL®CATS CM®CMMI®COBIT®

e-CFISO/IEC 20000ISO/IEC 27001/27002ISPLIT4IT®IT-CMFtm

IT Service CMMITIL®MOFMSFSABSASAFSIAMtm

TRIMVeriSMtm

Enterprise ArchitectureArchiMate®GEA®Novius Architectuur MethodeTOGAF®

Business ManagementBABOK ® GuideBiSL® and BiSL® NextBRMBOKTM

BTF EFQMeSCMIACCMISA-95ISO 9000/9001OPBOKSixSigmaSOXSqEME®

Project ManagementA4-ProjectmanagementDSDM/AternICB / NCBISO 21500MINCE®M_o_R®MSP®P3O®PMBOK ® GuidePRINCE2®

For the latest information on VHP publications, visit our website: www.vanharen.net.


PRINCE2® Edition 2017

Pocket Guide

Bert HedemanRon Seegers


Colophon Title: PRINCE2® 2017 Edition – A Pocket Guide Thirdedition,firstimpression,June2018Series: BestPracticeAuthors: BertHedeman(HWPConsulting),RonSeegers(Projectmeester)Reviewers: MarcKouwenhoven(nThen!) JaapGermans(Pinkelephant) HennyPortman(HWPConsulting) GeorgesKemmerling(QuintWellingtonRedwood)FinalEditor: BertHedemanTexteditor: CarmenTjinPublisher: VanHarenPublishing,Zaltbommel, www.vanharen.netISBNHardcopy: 9789401803182ISBNEBookpdf: 9789401803199ISBNEPub 9789401803205Print: Secondedition,firstimpression,April2018 Firstedition,firstimpression,September2009Layoutandtypesetting: S&BITServices,Amersfoort–NLCopyright: ©VanHarenPublishing,2018

©Crowncopyright2017ReproducedunderlicencefromAXELOS:Figures1.1,5.1,6.1,6.2,6.3,8.1,8.3,8.4,9.1,9.2,9.4,10.1,11.2,12.1,14.1,17.1,C.1,C.2.

ITIL®,PRINCE2®,PRINCE2Agile™,MSP™,P3O™,MoP™,M_o_R®andP3M3™areaRegisteredTradeMarkof AXELOS.AgilePM®isaregisteredtrademarkof DSDMintheUnitedKingdomandothercountries.

ForanyfurtherenquiriesaboutVanHarenPublishing,pleasesendane-mailto:info@vanharen.net.Althoughthispublicationhasbeencomposedwithutmostcare,neitherAuthornorEditornorPublishercanacceptanyliabilityfordamagecausedbypossibleerrorsand/orincompletenessinthispublication.

Nopartof thispublicationmaybereproducedinanyformbyprint,photoprint,microfilmoranyothermeanswithoutwrittenpermissionbythePublisher.


ContentsPART I INTRODUCTION 1

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

1.1 Thepurposeof thisguide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.2 Whatisaproject? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.3 Whyareprojectsimportant? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.4 Projectsversusbusinessasusual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.5 Whatisprojectmanagement? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.6 Whatdoesaprojectmanagerdo? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.7 Whatisitallpartiesinvolvedwishtocontrol? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2 Introduction to PRINCE2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

2.1 Structureof PRINCE2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.2 WhatmakesaprojectaPRINCE2project? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.3 WhatPRINCE2doesnotprovide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.4 Customer/supplierenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.5 Benefitsof PRINCE2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3 Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.1 Continuedbusinessjustification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.2 Learnfromexperience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.3 Definedrolesandresponsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.4 Managebystages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.5 Managebyexception . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.6 Focusonproducts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.7 Tailortosuittheprojectenvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

PART II THEMES 15

4 Introduction to PRINCE2 themes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

5 Business case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

5.1 Purposeof thebusinesscasetheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195.2 Businesscasedefined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195.3 PRINCE2requirementsforthebusinesscasetheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195.4 PRINCE2approachtothebusinesscasetheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205.5 Contentof abusinesscase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225.6 Guidanceforeffectivebusinesscasemanagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235.7 Techniques:investmentappraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235.8 Responsibilitiesbusinesscasetheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24


VI

6 Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

6.1 Purposeof theorganizationtheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256.2 Organizationdefined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256.3 Levelsof organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266.4 PRINCE2requirementsfortheorganisationtheme . . . . . . . . . . . . . . . . . . . . . . . . . . . 276.5 Projectmanagementteam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276.6 Communicationmanagementapproach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306.7 Guidanceforeffectiveorganization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

7 Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

7.1 Purposeof thequalitytheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337.2 Qualitydefined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337.3 PRINCE2requirementsforthequalitytheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347.4 Purposeof thequalitymanagementproducts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347.5 Qualitymanagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347.6 PRINCE2approachtothequalitytheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357.7 Guidanceforeffectivequalitymanagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367.8 Qualityreviewtechnique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377.9 Responsibilitiesqualitytheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

8 Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

8.1 Purposeof theplanstheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398.2 Plansdefined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398.3 PRINCE2requirementsfortheplanstheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408.4 Managementstages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418.5 PRINCE2approachtotheplanstheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428.6 Product-basedplanningapproach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438.7 Guidanceforeffectiveplanning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448.8 Responsibilitiesplanstheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

9 Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47

9.1 Purposeof therisktheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479.2 Riskdefined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479.3 PRINCE2requirementsfortherisktheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479.4 PRINCE2approachtotherisktheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489.5 Riskmanagementprocedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489.6 Guidanceforeffectiveriskmanagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529.7 Responsibilitiesrisktheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

10 Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55

10.1 Purposeof thechangetheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5510.2 Changedefined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5510.3 PRINCE2requirementsforthechangetheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56


VII

10.4 PRINCE2approachtothechangetheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5610.5 Issueandchangecontrolprocedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5710.6 Guidanceforeffectivechangecontrol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5910.7 Responsibilitieschangetheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

11 Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61

11.1 Purposeof theprogresstheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6111.2 Progressdefined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6111.3 PRINCE2requirementsfortheprogresstheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6111.4 Managementbyexception . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6211.5 PRINCE2approachtotheprogresstheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6211.6 Delegatingauthority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6211.7 Event-andtime-drivencontrols . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6311.8 Raisingexceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6411.9 Guidanceforeffectiveprogresscontrol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6511.10 Responsibilitiesprogresstheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

PART III PROCESSES 67

12 Introduction to PRINCE2 processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69

12.1 Pre-project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7012.2 Initiationstage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7012.3 Subsequentdeliverystage(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7112.4 Finaldeliverystage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7112.5 Post-project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7112.6 Tailoringtheprocesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

13 Starting up a project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

13.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7313.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7313.3 Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7413.4 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7413.5 Tailoringstartingupaproject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

14 Directing a project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

14.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7714.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7714.3 Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7814.4 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7814.5 Tailoringdirectingaproject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

15 Initiating a project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

15.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81


VIII

15.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8115.3 Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8215.4 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8215.5 Tailoringinitiatingaproject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

16 Controlling a stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

16.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8716.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8716.3 Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8816.4 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8816.5 Tailoringcontrollingastage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

17 Managing product delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93

17.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9317.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9317.3 Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9317.4 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9417.5 Tailoringmanagingproductdelivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

18 Managing a stage boundary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

18.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9718.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9718.3 Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9818.4 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9818.5 Tailoringmanagingastageboundary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

19 Closing a project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

19.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10119.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10119.3 Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10219.4 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10219.5 Tailoringclosingaproject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

PART IV TAILORING AND ADOPTING 105

20 Introduction tailoring and adopting PRINCE2 . . . . . . . . . . . . . . . . . . . . . . . . . 107

20.1 TailoringPRINCE2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10720.2 AdoptingPRINCE2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

21 Tailoring PRINCE2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

21.1 Elementstotailor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10921.2 Scalingprojects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110


IX

21.3 Smallprojects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11121.4 Agileprojects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11221.5 Commercialprojects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11221.6 Projectswithinaprogramme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11321.7 Multi-organizationalprojects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

22 Adopting PRINCE2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

22.1 Tailoringtocreateitsownmethod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11522.2 EmbeddingPRINCE2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11622.2 Maturityassessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

AppendixAOutlineproductdescriptionsmanagementproducts . . . . . . . . . . . . . . . . . . . . 119AppendixBRolesandresponsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133AppendixCExampleproduct-basedplanning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141AppendixDGlossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

Abouttheauthors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157



PART I INTRODUCTION



Chapter 1

IntroductionPRINCE2®isagenericprojectmanagementmethodwhichfocusesonthemanagementaspectsof projects.PRINCE2®wasoriginallylaunchedin1996bytheCCTA.Sincethenseveralversionshavebeenlaunched.Thelatestupdateof themethodhasbeenpublishedin 2017 .

PRINCE2®isnowaregisteredtrademarkof AXELOS.AdditionallyAXELOSprovidescertification to organizations, activities and persons related (but not limited to) projects,programmesandriskbasedonthemethodsownedbyAXELOS,suchasITIL®,PRINCE2Agile™,MSP™,P3O™,MoP™,M_o_R®andP3M3™.

1 .1 The purpose of this guide

Thispocketguidesuppliesasummaryof thePRINCE2method.Itisintendedtoprovideaquickintroductionaswellasastructuredoverviewof themethodandtoactasareferenceforthosewhohavestudiedthemethodinthepastandwanttousethemethodnowintheday-to-daymanagementof theirprojects.

1 .2 What is a project?

Aproject is a set of related activitieswithin a temporary organization that is created todeliver,accordingtoagreedconditions,oneormorepredefinedproductsorservices.Withinthecontextof themethodof PRINCE2aprojectisdefinedas:

A temporary organization that is created for the purpose of delivering one or morebusinessproductsaccordingtoanagreedbusinesscase.

1 .3 Why are projects important?

Projectsarecarriedoutmainlywhentheworkcannotbecarriedoutproperlywithnormalbusiness operations. One of these conditions is when the business operations have totransformtomeetnewrequirements,inordertosurviveortocompeteinthefuture.


4 PRINCE2 Edition 2017 – Pocket Guide

Thetemporaryorganizationof projectsmakesitpossibletouniteallstakeholderstodeliverthe required products or services. The structure and processes within a proper projectmanagementmethodenforcefocus,supportandcommitmentfortheproductsandservicesthataretobedelivered.Projectsarethereforeanimportantmeanstosupportingchange.

Asbusinesschangeisbecomingmoreandmoreimportantinbusinessoperationsaswellasinthepublicdomain,projectsnowadaysarecrucialinprofessionallife.

1 .4 Projects versus business as usual

Basedonthedefinitionof aproject,thereareanumberof characteristicsof projectsthatdistinguishprojectworkfromregularbusinessoperations:• Change –Most projects are carried out in a changing environment and are, at the

same time, themeans bywhich the organization introduces these changes. This willoftencausesevereresistancefromthepartiesinvolved.Theprojecthastomanagethisresistanceand,increasingly,hastocontributeindiminishingthisresistanceinadditiontoitsrequirementstodeliverthepredefinedproductsandservices.

• Temporary–Thisisanessentialconditionforaproject.Withoutthis,thereisnoproject.Aprojectendsautomaticallywhenthepredefinedproductsorservicesarehandedovertothecustomer.Projectsbynaturearefinite,theyhaveapredefinedstartandend.

• Cross-functional–Projectsinvolveateamof peoplewithdifferentskillsandfunctions,most often from different organizational entities. This can be from within a singleorganizationorfromseveralorganizations.

• Unique – Every project is different, even when an identical product or service isdelivered.Thecontextisalwaysdifferentandtherearealwaysdifferencesinobjectives,newteammembersorotherpartiesinvolved.Thismakeseachprojectuniqueinrelationtoeveryotherproject.

• Uncertainty –All the characteristics above result in uncertainty and thiswill alwaysresult in opportunities and threats.You cannot exclude this, you canonlymanage it.Projectsaretypicallymoreriskythanthenormalbusinessoperations.Managementof risk(uncertainty)isthereforeacorefocusof projectmanagement.

1 .5 What is project management?

Projectmanagementistheplanning,delegating,monitoringandcontrolof allaspectsof theproject,andthemotivationof thoseinvolved,toachievetheprojectobjectiveswithintheexpectedperformancetargetsfortime,cost,quality,scope,risksandbenefits,seefigure1.1.


PRINCE2 Edition 2017 – Pocket Guide 5

Delegate

Monitor

Control

Plan

Figure 1.1 Project management cycle (Source: AXELOS)

Thepurposeof projectmanagementistoretaincontroloverthespecialistworkrequiredtocreatetheproject’sproducts(productsandservices).

Project management, therefore, within this definition is not limited to the work of theprojectmanager.Projectmanagementisadutyof all involvedinthemanagementof theproject.This includes theexecutive, theothermembersof theprojectboard, theprojectmanager,theprojectsupportandtherespectiveteammanagers.

1 .6 What does a project manager do?

Theprojectmanagerisresponsiblefortheday-to-daymanagementof theproject,withinthedirectionssetbytheexecutive/projectboard.

Aspartof thisday-to-daymanagement,theprojectmanagerisresponsiblefortheplanning,delegation, monitoring and control of the work to be carried out, as well as for themanagementof otheraspectsof theproject,suchas:• Engagement of stakeholders to create support and commitment and to diminish

resistance;• Motivationof teammembersandallwhoarecontributingtotheproject.

1 .7 What is it all parties involved wish to control?

Thereareconsideredtobesixbasicaspectsinvolvedinanyproject:• Costs–thecostsinvolvedtocreatethedefinedprojectproducts.Thisalsoincludesthe

coststomanagetheproject.• Time–thetotal lifecycleof theprojectand/orthedateof handingovertheproject

product.



• Quality–theproduct’sabilitytomeetitsrequirements.• Scope–whatisincludedintheprojectworks?Whathastobedeliveredandwhatnot?

Whatworkhastobecarriedoutandwhatnot?• Risks –themanagementof threatsaswellasthemanagementof theopportunities.• Benefits–thebenefitstoberealizedbasedontheprojectproduct.

PRINCE2definestheprojectproductasthatwhichtheprojectmustdelivertobeaccepted.Project products are all products to be created during the project lifecycle including themanagementproducts.

Inadditiontothesebasicaspects,otheraspectsareofteninvolvedinprojects,suchashealth,environment, safety and security. These aspects can be controlled as part of the qualityaspect.


Chapter 2

Introduction to PRINCE2PRINCE2isastructuredprojectmanagementmethod,basedonbestpractice.

PRINCE2 is anon-proprietarymethod.Projectmanagers andothers are free touse themethodintheirownpractice.

PRINCE2 is truly generic. It can be applied to any project, regardless of scale, type,organization,geographyorculture.However themethodalwayshas tobe tailored to theprojectathand.

PRINCE2 achieves this by isolating themanagement aspects of project work from thespecialistcontributions,suchasdesign,construction,etc.HoweverthespecialistworkcaneasilybeintegratedwiththePRINCE2method.

BecausePRINCE2isgenericandbasedonprovenprinciples,organizationscaneasilyadoptthemethodasastandardandtailorittotheirownorganizationandsubstantiallyimprovetheirorganizationalcapabilitytoperformprojectsanddeliverchange.

PRINCE2 is protected by trademark. Professional training is restricted to AccreditedTrainingOrganizationsandtheirAffiliates.SeetheAxeloswebsite(www.axelos.com).

2 .1 Structure of PRINCE2

ThePRINCE2methodaddressesprojectmanagementfromfourdifferentperspectives:• Principles–aretheguidingobligationsof goodpracticeswhichdeterminewhetherthe

projectisgenuinelybeingmanagedusingPRINCE2.• Themes–describetheaspectsof projectmanagementthatmustbeaddressedcontinually

andinparallelthroughouttheproject.ThethemesexplainthespecifictreatmentrequiredbyPRINCE2forvariousprojectmanagementdisciplinesandwhytheyarenecessary.

• Processes–describeastep-wiseprogressionthroughtheprojectlifecycle.Eachprocessprovideschecklistsof recommendedactivities,productsandrelatedresponsibilities.

• Project environment–relatestothetailoringof PRINCE2tothespecificcontextof theproject.Thiscontextdependsonspecificprojectfactorsaswellasenvironmentalfactors.



2 .2 What makes a project a PRINCE2 project?

AprojectisconsideredaPRINCE2projectif ataminimumitapplies:• AllsevenPRINCE2principles;• TheminimumrequirementsspecifiedinthePRINCE2themes;• Processesthatcomplywiththepurposeandobjectivesof thePRINCE2processes;• AlltechniquesrecommendedbyPRINCE2orequivalentalternativetechniques.

2 .3 What PRINCE2 does not provide

Therearethreebroadareaswhicharedeliberatelyleftoutsidethescopeof PRINCE2:• Specialist work–PRINCE2’sstrengthisinitswideapplication.Consequentlyindustry-

specific or type-specific activities are not within the scope of PRINCE2. HoweverPRINCE2caneasilybealignedtospecialistlifecyclemodels.

• Techniques–Therearemanyprovenplanningandcontroltechniques.Suchtechniquesare well documented elsewhere. Techniques are only included in PRINCE2 whentheycontributetothespecificPRINCE2treatmentof atheme,e.g.thequalityreviewtechniqueinthequalitytheme.

• Leadership capability – Leadership and other social skills are inherently importantin project management but impossible to codify in a method. Also these are welldocumented elsewhere.However the principles, themes and processes of PRINCE2facilitateagoodperformanceof theseskillsandthuscontributetotheperformanceof theprojecttoo.

2 .4 Customer/supplier environment

PRINCE2 isbasedona customer/supplier environment.Thecustomer is thepersonorgroupwho commissioned thework andwhowill benefit from theproject’s products.Asupplierisapersonorgroupwhoisresponsibleforthedeliveryof (apartof)theproject’sproducts.Inaprojecttheremaybeseveralsuppliersorganizations.

Customersandsupplierscanbepartof thesameorganization.Theycanalsobepartof different organizations.Within the customer we can again recognize users and businessrepresentatives.


PRINCE2 Edition 2017 – Pocket Guide 9

In commercial projects with different organizations, such as external suppliers, eachorganizationmayhave itsownbusinesscases,managementsystems,governance,deliveryapproachesandcorporatecultures.

Aprojectcanbeastand-aloneprojectorapartof aprogrammeorportfolio.PRINCE2refers to the organization that commissions a project as the corporate, programmemanagementorcustomer.

2 .5 Benefits of PRINCE2

PRINCE2deliversbenefitstoallpartiesconcerned,especiallythecustomers,suppliersandtheprojectmanager:

• Provenbestpractice,widelyrecognized;• Canbeappliedtoanytypeof project;• Providesacommonvocabularyandapproach;• Integrateseasilywithindustry-specificstandards;

• Allocatesresourcesaspartof thego/no-gomoments;• Thoroughbuteconomicalstructureof reports;• Restrictsmeetingstoonlythosethatareessential;

• Promoteslearningandcontinuousimprovement;• Promotesreuseof projectassets,facilitatesstaff mobility;• Availabilityof AccreditedTrainingOrganizations;

• Clearrolesandresponsibilitiesforallparticipants;• Focusoncontinuousjustificationof theproject;• Participationof stakeholdersinplanninganddecisionmaking;• Managementbyexceptionforalllevelsof theproject;

• Productfocus:whataprojectwilldeliver;• Plansmeettheneedsof differentlevelsof management;• Qualitycontrolduringwholelifecycleof theproject;• Managesbusinessandprojectrisks;• Ensuresrelevantissuesareescalated;• Diagnostictoolforassuranceandassessments.


Documents

Copyright protected. Use is for Single Users only via …...Introduction PRINCE2® is a generic project management method which focuses on the management aspects of projects. PRINCE2®