PRojects IN Controlled Environments - 2
PRINCE2

PRojects IN Controlled Environments (PRINCE) is a project management method. It covers the management, control and organisation of a project. "PRINCE2" refers to the second major version of this method and is a registered trademark of the Office of Government Commerce (OGC), an independent office of HM Treasury of the United Kingdom.

History of PRINCE2

PRINCE2 is derived from the earlier PRINCE project management method, which was initially developed in 1989 by the Central Computer and Telecommunications Agency (CCTA) as a UK Government standard for information systems (IT) project management; however, it soon became regularly applied outside the purely IT environment[1]. PRINCE2 was released in 1996 as a generic project management method[2]. PRINCE2 has become increasingly popular and is now a de facto standard for project management in the UK[3]. Its use has spread beyond the UK to more than 50 other countries.

The most current revision was released in 2005[4] by the Office of Government Commerce, and it is currently undergoing a refresh for 2008/09.

Advantages of PRINCE2

PRINCE2 is a structured approach to project management. It provides a method for managing projects within a clearly defined framework. PRINCE2 describes procedures to coordinate people and activities in a project, how to design and supervise the project, and what to do if the project has to be adjusted if it doesn’t develop as planned. In the method each process is specified with its key inputs and outputs and with specific goals and activities to be carried out, which gives an automatic control of any deviations from the plan. Divided into manageable stages, the method enables an efficient control of resources. On the basis of close monitoring the project can be carried out in a controlled and organized way. Being a structured method widely recognised and understood, PRINCE2 provides a common language for all participants in the project. The various management roles and responsibilities involved in a project are fully described and are adaptable to suit the complexity of the project and skills of the organisation.

Pitfalls of PRINCE2

PRINCE2 is sometimes incorrectly considered inappropriate for very small projects, due to the work required in creating and maintaining documents, logs and lists. However, this may often be because of a misunderstanding about which parts of PRINCE2 to apply: PRINCE2 is fully scalable[6].

Overview of PRINCE2

PRINCE2 is a process-driven project management method[7] which contrasts with reactive/adaptive methods such as Scrum. PRINCE2 defines 45 separate sub-processes and organizes these into eight processes as follows:

* Starting Up a Project (SU)
* Planning (PL)
* Initiating a Project (IP)
* Directing a Project (DP)
* Controlling a Stage (CS)
* Managing Product Delivery (MP)
* Managing Stage Boundaries (SB)
* Closing a Project (CP)

Starting up a project (SU)

In this process the project team is appointed and a project brief (describing, in outline, what the project is attempting to achieve and the business justification for doing so) is prepared. In addition the overall approach to be taken is decided and the next stage of the project is planned. Once this work is done, the project board is asked to authorize the next stage, that of initiating the project.

SU1 Appointing a Project Board Exec and Project Manager
SU2 Designing a Project Management Team
SU3 Appointing a Project Management Team
SU4 Preparing a Project Brief
SU5 Defining Project Approach
SU6 Planning an Initiation Stage

Planning (PL)

PRINCE2 advocates product based planning which means that the first task when planning is to identify and analyse products. Once the activities required to create these products are identified then it is possible to estimate the effort required for each and then schedule activities into a plan. There is always risk associated with any work and this must be analysed. Finally, this process suggests how the format of plans can be agreed and ensures that plans are completed to such a format.

PL1 Designing a Plan
PL2 Defining and Analysing Products
PL3 Identifying Activities and Dependencies
PL4 Estimating
PL5 Scheduling
PL6 Analysing Risks
PL7 Completing a Plan

Initiating a project (IP)

This process builds on the work of the Start Up (SU) activity and the project brief is augmented to form a Business Case. The approach taken to ensure quality on the project is agreed together with the overall approach to controlling the project itself (project controls). Project files are also created as is an overall plan for the project. A plan for the next stage of the project is also created. The resultant information can be put before the project board for them to authorize the project itself.

IP1 Planning Quality
IP2 Planning a Project
IP3 Refining the Business Case and Risks
IP4 Setting up Project Controls
IP5 Setting up Project Files
IP6 Assembling a Project Initiation Document

Directing a project (DP)

These sub-processes dictate how the Project Board (which comprises such roles as the executive sponsor or project sponsor) should control the overall project. As mentioned above, the project board can authorise an initiation stage and can also authorize a project. Directing a Project also dictates how the project board should authorize a stage plan, including any stage plan that replaces an existing stage plan due to slippage or other unforeseen circumstances. Also covered is the way in which the board can give ad hoc direction to a project and the way in which a project should be closed down.

DP1 Authorising Initiation
DP2 Authorising a Project
DP3 Authorising a Stage or Exception Plan
DP4 Giving Ad Hoc Direction
DP5 Confirming Project Closure

Controlling a stage (CS)

PRINCE2 suggests that projects should be broken down into stages and these sub-processes dictate how each individual stage should be controlled. Most fundamentally this includes the way in which work packages are authorized and received. It also specifies the way in which progress should be monitored and how the highlights of the progress should be reported to the project board. A means for capturing and assessing project issues is suggested together with the way in which corrective action should be taken. It also lays down the method by which certain project issues should be escalated to the project board.

CS1 Authorising Work Package
CS2 Assessing Progress
CS3 Capturing Project Issues
CS4 Examining Project Issues
CS5 Reviewing Stage Status
CS6 Reporting Highlights
CS7 Taking Corrective Action
CS8 Escalating Project Issues
CS9 Receiving Completed Work Package

Managing product delivery (MP)

This process consists of three sub-processes and these cover the way in which a work package should be accepted, executed and delivered.

MP1 Accepting a Work Package
MP2 Executing a Work Package
MP3 Delivering a Work Package

Managing stage boundaries (SB)

The Controlling a Stage process dictates what should be done within a stage, Managing Stage Boundaries (SB) dictates what should be done towards the end of a stage. Most obviously, the next stage should be planned and the overall project plan, risk log and business case amended as necessary. The process also covers what should be done for a stage that has gone outside its tolerance levels. Finally, the process dictates how the end of the stage should be reported.

SB1 Planning a Stage
SB2 Updating a Project Plan
SB3 Updating a Project Business Case
SB4 Updating the Risk Log
SB5 Reporting Stage End
SB6 Producing an Exception Plan

Closing a project (CP)

This covers the things that should be done at the end of a project. The project should be formally de-commissioned (and resources freed up for allocation to other activities), follow on actions should be identified and the project itself be formally evaluated.
CP1 Decommissioning a Project
CP2 Identifying Follow-on Actions
CP3 Project Evaluation Review

Techniques

The PRINCE2 method works with most project management techniques but specifically describes the following:

* Product Based Planning
* Change Control
* Quality Reviews

Exams, accreditation and training

Accreditation is governed by the passing of two exams – the Foundation and the Practitioner. The Foundation exam is a one-hour, multiple choice exam. The Practitioner exam lasts for three-hours, and is an objective-testing multiple-choice exam. Around the world, exams are administered by the APM Group. The successful candidate register can be searched on the web[8].

It is possible for individuals with project management experience to self-study for the exams but a number of training organisations offer courses, many of which also include exam entry in the fee. There is a mandatory accreditation scheme for training providers, run by the APM Group, which provides them with access to the official PRINCE2 examinations.

PRINCE2 Practitioners must retake the Practitioner exam every 5 years to remain accredited. Trainers must be re-accredited every 3 years and undergo a surveillance check[clarification needed] every 12 months[citation needed].

Scalability

Project management is a complex discipline and it would be wrong to assume that blind application of PRINCE2 will result in a successful project. By the same token, it would be wrong to assume that every aspect of PRINCE2 will be applicable to every project. For this reason every process has a note on scalability. This provides guidance to the project manager (and others involved in the project) as to how much of the process to apply. The positive aspect of this is that PRINCE2 can be tailored to the needs of a particular project. The negative aspect is that many of the essential elements of PRINCE2 can be omitted sometimes resulting in a PINO project – Prince in Name Only. In order to counter this, APM Group have defined the concept of a PRINCE2 Maturity Model.
 

References

http://en.wikipedia.org/wiki/PRINCE2