Managing Successful

Projects with PRINCE2 2009

Managing Successful Projects with PRINCE2 2009

Copyright 3MRT Limited and APMG 2009. This Mind Map is created by 3MRT and
based on Managing Successful Projects with PRINCE2 2009 under licence from APMG.
Disclaimer
Every attempt has been made to ensure the accuracy of this Mind Map. However, no
liability can be accepted for any loss incurred in any way whatsoever by any person
relying solely on the information contained in this Mind Map. The Mind Map has been
produced solely for the purpose of exam preparation and should not be taken as
definitive of the legal position.

1.

1. Introduction
1.1 The purpose of this manual
Describe PRINCE2 method
Source of reference on PRINCE2
1.2 The importance of projects
Need to balance
Maintain business as usual
Business change
Projects introduce change
1.3 What makes projects different?
Project
Temporary organization
Deliver business products
According to agreed Business Case
Characteristics
Introduce change
Have defined start and end
Are cross-functional
Are unique
Are more risky
1.4 Why have a project management method?
Project management
Planning

Delegating
Monitoring
Control
Motivation
Achieve project objectives
Meet performance targets
Time
Cost
Quality
Scope
Benefits
Risks
1.5 Introducing PRINCE2
1.5.1 What does a Project Manager do?
Plans activities
Delegates work
Monitors progress against plan
Exerts control
1.5.2 What is it we wish to control?
Costs
Timescales
Quality
Scope

Risk
Benefits
1.5.3 Structure of PRINCE2
Principles
Themes
Processes
Tailoring
1.6 Related OGC guidance
Best-practice guides
P3O
Gateway
M_o_R
ITIL
PfM
MSP
Best-practice models
P3M3
Subtopic
P2MM
1.6.1 What PRINCE2 does not provide
Specialist aspects
Detailed techniques
Leadership capability

1.7 Benefits of PRINCE2

Embodies best practice and governance
Applies to any project
Is widely recognized and understood
Has defined project responsibilities
Accountability
Delegation
Authority
Communication
Clarifies what project will deliver
Why
When
By whom
For whom
Meets different management needs
Is based on management by exception
Focuses on Business Case
Defines economical structure of reports
Ensures stakeholders are represented
Promotes learning and improvement
Promotes consistency of work
Facilitates assurance and assessment
Has expert support

ATOs
ACOs

2.

2. Principles
2.1 Continued business justification
Is required to start project
Remains valid throughout project
Is approved
Is documented in Business Case
Drives decision-making processes
Aligned to business objectives
2.2 Learn from experience
Seek lessons
Record lessons
Act upon lessons
When starting project
As project progresses
As project closes
2.3 Defined roles and responsibilities
Within an organization structure
Engages stakeholders
Business sponsors
Users
Suppliers

2.4 Manage by stages

Provide control points
Plan
Delegate
Monitor
Control
End stage is a decision point
Planning horizons
High-level Project Plan
Detailed Stage Plan
Minimum of two stages
2.5 Manage by exception
Define project responsibilities
Directing
Managing
Delivering
Delegate authority one level to the next
Set tolerances against six objectives
Time
Cost
Quality
Scope
Risk

Benefit
Refer exceptions to next management layer
2.6 Focus on products
Defines and agrees products
Particularly quality requirements
Defines scope
Use Product Descriptions
Purpose
Composition
Derivation
Format
Quality criteria
Quality method
Avoid major risks
Acceptance disputes
Rework
Scope creep
User dissatisfaction
Underestimation of acceptance activities
2.7 Tailor to suit the project environment
Ensure project management method suits project environment
Ensure project controls suit project
Scale

Complexity
Importance
Capability
Risk
Explain tailoring in Project Initiation Documentation

3.

3. Introduction to PRINCE2 themes

3.1 What are the themes?
Describe aspects of project management
Must be addressed continually
Describe specific PRINCE2 treatment
Business Case
Organization
Quality
Plans
Risk
Change
Progress
3.2 Applying the themes
Tailor themes to project
Scale
Nature
Complexity
Formal/informal

Detailed/concise

4.

4. Business Case
4.1 Purpose
Judge whether project is (and remains)
Desirable
Viable
Achievable
4.2 Business Case defined
4.2.1 What is a Business Case?
Tests project viability
Is the investment still worthwhile?
Is continually updated
Costs
Risks
Benefits
4.2.2 Outputs, outcomes and benefits
Output
Project's specialist product
Outcome
Result of using project's outputs
Benefit
Measurable improvement resulting from outcome
4.2.3 Types of Business Case

Depends on project
Compulsory
Not-for-profit
Evolving
Customer/supplier
Multi-organization
Depends on measure
Return on investment
Non-financial benefits
4.3 The PRINCE2 approach to the Business Case
Business case is developed, maintained, verified and confirmed
4.3.1 Developing the Business Case
Executive is responsible
May be delegated
Is derived from:
Outline Business Case
Project mandate
Developed by Starting up a Project
Detailed Business Case
Outline Business Case
Project Plan
Risk Register
Developed by Initiating a Project

4.3.2 Verifying and maintaining the Business Case

Is continually reviewed
End of Starting up a Project
End of Initiating a Project
Part of impact assessment
Issues
Risks
With Exception Plan
End of each stage
During final stage
Part of benefits review
4.3.3 Confirming the benefits
Identify benefits
Select objective measures
Collect baseline measures
Define Benefits Review Plan
4.3.4 The contents of a Business Case
4.3.4.1 Reasons
Explain why project is required
Are aligned to corporate objectives and strategy
Are defined in project mandate
4.3.4.2 Business options
Do nothing

Do minimum
Do something
4.3.4.3 Expected benefits
Are aligned to corporate objectives and strategy
Are mapped from outputs and outcomes
Are quantified (with tolerance)
Are measurable
Are assigned
4.3.4.4 Expected dis-benefits
Are negative outcomes
Are consequences of activity
4.3.4.5 Timescale
Period for incurring costs
Period for cost/benefits analysis
When benefits are accrued
Earliest/latest start date
Earliest/latest completion date
4.3.4.6 Costs
Are derived from Project Plan
Include operations and maintenance costs
Include funding arrangements
4.3.4.7 Investment appraisal
Compares costs with benefits

Covers project costs

Covers operations and maintenance costs
Investment appraisal techniques:
Through-life costs
Net benefits
Return on investment (ROI)
Payback period
Discounted cash flow
Net present value
Sensitivity analysis
4.3.4.8 Major risks
May reduce or enhance
Benefits
Costs
Summary of aggregated risks
Included in summary risk profile
Include project and business risks
4.4 Responsibilities
Corporate/programme management
Provide project mandate
Define Business Case standards
Hold Senior User(s) to account for realizing post-project benefits
Responsible for Benefits Review Plan (post-project)

Executive
Responsible for Business Case
Responsible for Benefits Review Plan
Oversee development of Business Case
Senior User(s)
Specify benefits
Specify project outcomes
Ensure products deliver outcomes
Ensure benefits are realized
Provide benefits statement at benefits reviews
Senior Supplier(s)
Responsible for supplier Business Case
Confirm products are within costs and viable
Project Manager
Prepare Business Case for Executive
Conduct impact analysis of issues/risks
Update Business Case at end of stages
Report project performance at closure
Project Assurance (business assurance)
Help develop Business Case
Verify and monitor Business Case
Ensure project fits programme/corporate strategy
Monitor project finance

Reassess value-for-money solution

Monitor impact of changes on business/Business Case
Review impact assessment of changes on Business Case and Project
Plan
Verify and monitor Benefits Review Plan
Project Support
Baseline and place under configuration management
Advise Project Manager of changes that affect Business Case

5.

5. Organization
5.1 Purpose
Define and establish the project's structure
Accountability
Responsibilities
5.2 Organization defined
5.2.1 Project
Is temporary organization
Delivers products according to Business Case
Needs to be flexible
Requires broad base of skills
5.2.2 Programme
Is temporary flexible organization
Coordinates, directs, oversees
Implements projects and activities to deliver outcomes and benefits
Has longer life than project

5.2.3 Corporate organization

Project exists within organization
Either functional or project-focused
5.2.4 Roles and jobs
PRINCE2 defines roles and responsibilities not jobs
Roles can be shared or combined
Responsibilities must always be allocated
5.2.5 Three project interests
Business
User
Supplier
5.3 The PRINCE2 approach to organization
5.3.1 Levels of organization
Corporate/programme management
Sits outside the project management team
Commission project
Identify Executive
Define project-level tolerances
Directing
Project Board
Approves major plans and resources
Authorizes stage exceptions
Approves completion of each stage

Authorizes start of next stage

Communicates with stakeholders
Managing
Project Manager
Responsible for day-to-day management
Ensures project produces products
Time
Cost
Quality
Scope
Risk
Benefits
Delivering
Team members
Deliver products
Quality
Timescale
Cost
5.3.2 The project management team
5.3.2.1 Project management team structure
Is temporary
Manages project to conclusion
Allows communication to decision-making forums

Is backed up by role descriptions

Responsibilities
Goals
Limits of authority
Relationships
Skills
Knowledge
Experience
Executive and Senior User roles can be combined
Project Manager and Executive roles cannot be shared
Project Manager and Project Board accountability cannot be delegated
5.3.2.2 Project Board
Includes Executive, Senior User(s) and Senior Supplier(s)
Is accountable for project success/failure
Provides unified direction
Delegates effectively
Facilitates integration with corporate/external organizations
Provides resources
Authorizes funds
Ensures effective decision making
Supports Project Manager
Ensures effective communication
Project team

External stakeholders
Has four key characteristics
Authority
Credibility
Ability to delegate
Availability
5.3.2.3 Project Assurance
Is Project Board role
Monitors all aspects of the project's performance and products
Is independent of Project Manager
5.3.2.4 Change Authority
Is Project Board responsibility
Can delegate at initiation stage
Agrees scale of change severity ratings
5.3.2.5 Size of the Project Board
Is agreed by Executive
Is tailored to project
Should be as small as possible
5.3.2.6 Project Manager
Single focus for day-to-day management
Runs project on behalf of Project Board
Normally from customer
Manages Team Managers and Project Support

Liaises with Project Assurance and Project Board

5.3.2.7 Team Manager
Ensures production of products
Reports to Project Manager
Takes direction from Project Manager
May be assigned to Project Manager or separate person
Is allocated Work Packages
5.3.2.8 Project Support
Is responsibility of Project Manager
Provides administrative services and guidance
Project management tools
Configuration management
Provides specialist functions
Planning
Risk management
Is separate from Project Assurance
5.3.2.9 Dealing with changes to the project management team
Have clearly defined team structure
Have comprehensive role descriptions
Use management stages to review roles
Use End Stage Reports and Stage Plans
5.3.3 Working with the project team
5.3.3.1 Balancing the project, team and individual

People are crucial to success

Know different personality types
Know how different personality types work together
5.3.3.2 Training needs for project teams
Project processes and standards
Configuration management procedures
Quality methods
Progress reporting
Introduction to project and its goals
Project roles
PRINCE2 processes and terminology
Specialist training
5.3.3.3 Part-time teams
Have more absences and diversions
Project Manager negotiates availability/greater tolerance
5.3.4 Working with the corporate organization
5.3.4.1 Line management/functional management
Project Board can be more closely involved
Lead
Direct
Prioritize work
Resolve issues
Project Manager sets up clear project controls

Project Manager agrees project controls with Project Board

5.3.4.2 Centre of excellence
Defines standards
Processes
Templates
Tools
Provides skills and training
Provides independent assurance functions
5.3.5 Working with stakeholders
5.3.5.1 Types of stakeholders
Support/oppose project
Gain/lose from project
See project as threat/enhancement
Become active supporters or blockers
5.3.5.2 Stakeholder engagement
Identify and communicate effectively
OGC's MSP six-step procedure:
Identify stakeholders (Who?)
Create and analyse stakeholder profiles (What?)
Define stakeholder engagement strategy (How?)
Plan engagements (When?)
Engage stakeholders (Do)
Measure effectiveness (Results)

5.3.5.3 The Communication Management Strategy

Describes means and frequency of communication
To internal and external parties
Establishes bi-directional communication flows
Is documented by Project Manager
Is reviewed at each stage boundary
Helps corporate/programme management retain control
5.4 Responsibilities
Corporate/programme management
Appoint Executive
Appoint (possibly) Project Manager
Provide information to project
Executive
Appoint Project Manager
Confirm project management team appointments
Approve Communication Management Strategy
Senior User
Provide user resources
Define and verify user requirements and expectations
Senior Supplier
Provide supplier resources
Project Manager
Prepare Communication Management Strategy

Review and update Communication Management Strategy

Design, review and update project management team structure
Prepare role descriptions
Team Manager
Manage project team members
Advise on project team members
Advise on stakeholder engagement
Project Assurance
Advise on selection of project team members
Advise on stakeholder engagement
Ensure Communication Management Strategy is appropriate
Ensure communication activities take place
Project Support
Provide administrative support for project management team

6.

6. Quality
6.1 Purpose
Define and implement means to
Create products
Verify products are fit for purpose
6.2 Quality defined
6.2.1 Quality
Product's ability to meet its requirements
6.2.2 Scope

Is sum total of products

Is defined by
Product breakdown structure
Product Descriptions
6.2.3 Quality management and quality management systems
Quality management: activities that direct and control quality approach
Quality management system: quality standards, procedures and
responsibilities
6.2.4 Quality planning
Define products
Define quality criteria and methods
Define quality responsibilities
6.2.5 Quality control
Fulfil quality requirements
Eliminate causes of unsatisfactory performance
6.2.6 Quality assurance
Independent of project management team
Ensures project direction and management are adequate
Ensures project complies with standards and policies
Is responsibility of corporate/programme organization
Checks planning and control processes are in place
Establishes and maintains quality management system
Reviews project to assess whether quality requirements will be met
6.3 The PRINCE2 approach to quality

6.3.1 Quality planning

Provide secure basis for:
Project Board agreement
Communicating
Control
6.3.1.1 The customer's quality expectations
Statement of quality expected from project product
Defined in Starting up a Project
Included in Project Product Description
Cover key quality requirements
Cover quality standards and processes
Cover quality measurements
Often expressed in broad terms
Are reviewed at end of each stage
6.3.1.2 Acceptance criteria
Prioritized list of measurable definitions
Ease of use
Ease of support
Ease of maintenance
Appearance
Major functions
Development costs
Running costs

Capacity
Availability
Reliability
Security
Accuracy
Performance
Agreed during Starting up a Project
Documented in Project Product Description
Reviewed at end of each stage
Only changed with Project Board approval
6.3.1.3 The Project Product Description
Created in Starting up a Project
May be refined during Initiating a Project
Subject to change control
Checked at stage boundaries
Includes:
Product purpose
Product composition
Customer's quality expectations
Acceptance criteria, method and responsibilities
Project-level quality tolerances
Is included in Project Brief
Helps select project approach

6.3.1.4 The Quality Management Strategy

Is prepared during Initiating a Project
Is approved by Project Board
Describes how quality management systems apply to project
Confirms quality standards,procedures, techniques and tools
Outlines quality assurance arrangements
Defines quality responsibilities
Includes approach to Project Assurance
Is maintained throughout project
6.3.1.5 Product Descriptions
Created for all products
State product purpose
Who
Why
What
Define quality
Criteria
Tolerances
Methods
Skills
Responsibilities
Producer
Reviewer

Approver
6.3.1.6 The Quality Register
Is diary of quality events
Is created during Initiating a Project
Is maintained throughout project
Provides audit and assurance information
6.3.2 Quality control
6.3.2.1 Quality methods
In-process methods
Appraisal methods
Testing
Quality inspection
PRINCE2 quality review technique
Objectives
Assess product (usually documents) against
criteria
Involve interested parties in checking product quality
Promote wider acceptance of product
Confirm product is complete
Baseline product for change control
Review team roles
Chair
Presenter
Reviewer

Administrator
Review preparation
Make administrative arrangements (chair/administrator)
Check product is ready (chair)
Confirm availability of reviewers (chair)
Distribute copies of product and Product Description
(presenter)
Review product against quality criteria (reviewers)
Submit question list to chair and presenter (reviewers)
Annotate product errors and return to presenter
(reviewers)
Produce question list (chair) and send to presenter
Review meeting agenda
Personal introductions (chair)
Product introduction (presenter)
Major/global questions (chair)
Product talk-through (presenter)
Read back actions (administrator)
Determine review result (chair)
Complete
Conditionally complete
Incomplete
Close review (chair)
Inform interested parties of result (chair)

Review follow-up
Coordinate actions (presenter)
Sign off actions (reviewers)
Sign off product (chair)
Communicate quality review outcome (administrator)
Store quality records (administrator)
Request product approval (presenter)
Side-benefits
Stakeholder engagement
Leadership
Team building
Developing individuals
Quality documentation
Quality culture
6.3.2.2 Quality records
Provide assurance
Products are complete
Products meet quality criteria
Agreed processes were observed
Approval authorities and stakeholders are satisfied
Audits were conducted and reported
Include references to quality inspection documentation
Detail defect statistics

Detail corrective actions

Include quality-related reports
6.3.2.3 Approval records
Not specified by PRINCE2
Depend on level of formality
Depend on customer/supplier relationship
Depend on quality management system
6.3.2.4 Acceptance records
Are kept for audit and/or contractual purposes
Confirm ultimate approval of product
6.4 Responsibilities
Corporate/programme management
Provide details of quality management system
Provide quality assurance
Executive
Approve Project Product Description
Approve Quality Management Strategy
Confirm acceptance of project product
Senior User
Provide customer's quality expectations and acceptance criteria
Approve Project Product Description
Approve Quality Management Strategy
Approve Product Descriptions

Provide resources for user quality activities and product approval

Provide acceptance of project product
Senior Supplier
Approve Project Product Description
Approve Quality Management Strategy
Approve quality methods, techniques and tools
Provide resources for supplier quality activities
Approve Product Descriptions for specialist products
Project Manager
Document customer's quality expectations and acceptance criteria
Prepare Project Product Description (with users)
Prepare Quality Management Strategy
Prepare and maintain Product Descriptions
Ensure Team Managers implement quality controls
Product Descriptions
Work Packages
Team Manager
Produce products consistent with Product Descriptions
Manage quality controls for products
Assemble quality records
Advise Project Manager of product quality status
Project Assurance
Advise Project Manager on Quality Management Strategy

Assist Project Board and Project Manager by reviewing Product

Descriptions
Advise Project Manager on quality reviewers/approvers
Assure Project Board on Quality Management Strategy
Project Support
Provide administrative support for quality controls
Maintain Quality Register and quality records
Help Team Managers and members apply quality processes

7.

7. Plans
7.1 Purpose
Facilitate communication and control
Define means of delivering the products
7.2 Plans defined
7.2.1 What is a plan?
A document
Describes how, when and by whom targets will be achieved
Products
Timescales
Costs
Quality
Benefits
Backbone of the management information system
Kept aligned with Business Case
7.2.2 What is planning?

Is process of making and maintaining plan

Is vital to project success
Predicts project result
Scope
Quality
Risk
Timescale
Cost
Benefits
7.2.3 Three Levels of plan
Project Plan
Stage Plans
Team Plans
7.2.4 The Project Plan
States how project's targets will be achieved
Provides Business Case with costs and timescales
Identifies major control points
Used by Project Board to monitor progress
Should align with corporate/programme management's plan
7.2.5 Stage Plans
Required for each management stage
Provides basis for day-to-day control
Produced near end of stage

7.2.6 Team Plans

Produced by Team Managers
Facilitate execution of Work Package
Are optional
7.2.7 Exception Plans
Show actions required to recover from tolerance deviation
Replaces plan in exception
Are not produced for Work Packages
7.3 The PRINCE2 approach to plans
7.3.1 Philosophy
Use product-based planning
Identify products first
Then identify activities, dependencies and resources
For all levels of plan
7.3.2 Prerequisites for planning - design the plan
Audience
Presentation and layout
Planning tools
Estimating methods
Levels of plan
Monitoring methods
7.3.3 Define and analyse the products
Use product-based planning

Identifies products and interdependencies

Removes ambiguity over expectations
Involves users in specifying product requirements
Improves communication
Clarifies scope boundary
Identifies external but necessary products
Prepares way for Work Packages
Gains agreement on production, review and approval
responsibilities
7.3.3.1 Write the Project Product Description
Is written by Project Manager with Senior User and Executive
Must be as complete as possible
7.3.3.2 Create the product breakdown structure
Break plan down until appropriate detail is reached
Involve team of people
Identify products through structured brainstorming
Reach consensus on breakdown structure
Identify external products required
Decide whether to include different product states
Use different shapes/styles/colours for products
7.3.3.3 Write the Product Descriptions
Are required for all products
Are written as soon as possible
Are baselined when plan is baselined

Are written with experts and end-users

Can be reused for other projects
Can be substituted by detailed requirements specification
7.3.3.4 Create the product flow diagram
Defines product development sequence
Identifies dependencies
Is created by Project/Team Manager with stakeholders
Can be created in parallel with product breakdown structure
Needs very few symbols
Can have starting point from which all entry points are attached
7.3.4 Identify activities and dependencies
7.3.4.1 Activities
Required to create or change each product
Identified by
Making list of activities
Creating work breakdown structure
Include activities for
Management
Quality checking
Specialist product
7.3.4.2 Dependencies
Identify internal dependencies
Identify external dependencies

Delivery of product from another project

Purchase order
Decision from programme management
7.3.5 Prepare estimates
Identify type resource required
Estimate effort for each activity by resource type
Challenge estimates
Estimating techniques
Top-down
Bottom-up
Comparative
Parametric
Single-point
Three-point
7.3.6 Prepare the schedule
7.3.6.1 Define activity schedule
7.3.6.2 Assess resource availability
7.3.6.3 Assign resources
7.3.6.4 Level resource usage
7.3.6.5 Agree control points
7.3.6.6 Define milestones
7.3.6.7 Calculate total resource requirements and costs
7.3.6.8 Present the schedule

Presentation formats
Gantt charts
Critical path diagram
Spreadsheets
Product checklist
7.3.7 Analyse the risks
For resources
For activities
For planning information
Are entered in Risk Register
7.3.8 Document the plan
Consolidate costs, controls and text
Narrative needed to explain plan
Constraints
External dependencies
Assumptions
Monitoring and control
Risks
Risk responses
Consider summary diagrams for Project Board
7.4 Responsibilities
Corporate/programme management
Set project tolerances

Document project tolerances in project mandate

Approve Exception Plans for project-level tolerances
Provide planning standards
Executive
Approve Project Plan
Define stage tolerances
Approve Stage Plans
Approve Exception Plans for stage-level tolerances
Commit business resources to Stage Plans
Senior User
Ensure Project Plans and Stage Plans are consistent
Commit user resources to Stage Plans
Senior Supplier
Ensure Project Plans and Stage Plans are consistent
Commit supplier resources to Stage Plans
Project Manager
Design plans
Prepare Project Plan and Stage Plans
Decide how to apply management and technical stages
Instruct corrective action for Work Package-level tolerances
Prepare Exception Plan
Team Manager
Prepare Team Plans

Prepare schedules for Work Packages

Project Assurance
Monitor changes to Project Plan
Monitor stage and project progress
Project Support
Help compile Project Plans, Stage Plans and Team Plans
Contribute specialist expertise
Baseline, store and distribute Project Plans, Stage Plans and Team
Plans

8.

8. Risk
8.1 Purpose
Identify, assess and control uncertainty
Improve ability of project to succeed
8.2 Risk defined
8.2.1 What is a risk?
Uncertain event or set of events
Affect achievement of objectives
Threat or opportunity
8.2.2 What is at risk?
Project objectives
Time
Cost
Quality
Scope

Benefits
Risk
8.2.3 What is risk management?
Systematic application of procedures
Identify risks
That affect objectives
Described to ensure common understanding
Assess risks
Likelihood
Impact
Immediacy
Control risks
Identify risk responses
Assign risk owners
Execute, monitor and control responses
8.3 The PRINCE2 approach to risk
8.3.1 Management of Risk (M_o_R) principles
Understand project context
Involve stakeholders
Establish project objectives
Develop project risk management approach
Report on risks regularly
Define roles and responsibilities

Establish support structure and supportive culture

Monitor early warning indicators
Establish review cycle and look for continual improvement
8.3.2 Risk management in projects
Identify corporate or programme policies and processes
Organizational risk management policy
Communicates how risk management is implemented
Risk appetite
Risk tolerances
Escalation procedures
Roles and responsibilities
Organizational risk management process guide
Describes steps to implement risk management
Describes associated activities
Provides best-practice approach
8.3.3 Risk Management Strategy
Is developed before embarking on risk management activities
Describes how risk management is embedded in the project
Records risk tolerances
8.3.4 Risk Register
Captures and maintains risk information
Unique identifier
Who raised it

When it was raised

Category
Description
Probability, impact and expected value
Proximity
Response category
Response actions
Status
Risk Owner
Risk Actionee
Maintained by Project Support
8.3.5 Risk management procedure
8.3.5.1 Identify
Identify context
Understand project objectives
Formulate Risk Management Strategy
Is influenced by:
Customer's quality expectations
Number of organizations involved
Stakeholder needs
Project importance, complexity and scale
Assumptions
Organization's environment

Organization's approach to risk management

Project mandate, Project Brief and Project Product
Description
Includes decisions on:
Risk management procedure
Tools and techniques
Records
Risk reporting
Timing of activities
Roles and responsibilities
Risk scales
Likelihood
Impact
Proximity
Risk categories
Risk response categories
Early warning indicators
Percentage of Work Packages (not) accomplished
Percentage of approvals (not) accomplished
Number of issues raised per week/month
Percentage of unresolved issues
Average number of days issues remain unresolved
Average number of defects
Adherence to budget
Adherence to schedule

Risk tolerances
Risk budget
Identify risks
Recognize threats and opportunities
Capture in Risk Register
Prepare early warning indicators
Understand stakeholders' view
Use risk identification techniques
Review lessons
Risk checklists
Risk prompt lists
Brainstorming
Risk breakdown structure
Express risks clearly
Cause
Event
Effect
8.3.5.2 Assess
Estimate
Assess risk probability and impact
Assess risk proximity
Assess how risk impact may change
Create summary risk profile

Use risk estimation techniques

Probability trees
Expected value
Pareto analysis
Probability impact grid
Evaluate
Assess net effect of threats and opportunities
Determine if level of risk is within tolerance
Use risk evaluation techniques
Risk models
Expected monetary value
8.3.5.3 Plan
Prepare threat responses
Avoid
Reduce
Fallback
Transfer
Share
Accept
Prepare opportunity responses
Exploit
Enhance
Share

Reject
Ensure response is proportional to the risk
Inherent risk
Exposure before any action is taken
Residual risk
Risk remaining after risk response has been applied
Secondary risk
Risks that may occur as a result of invoking a risk
response
8.3.5.4 Implement
Action risk responses
Monitor effectiveness of risk responses
Take corrective action
Allocate clear roles and responsibilities
Risk owner
Responsible for management, monitoring and
control
Risk actionee
Assigned to carry out risk response
8.3.5.5 Communicate
Checkpoint Reports
Highlight Reports
End Stage Reports
End Project Reports

Lessons Reports
8.3.6 Risk budget
Is included in project budget
To fund specific responses
Can be determined by use of expected monetary value
Define control mechanisms in Risk Management Strategy
8.4 Responsibilities
Corporate/programme management
Provide corporate risk management policy
Provide risk management process guide
Executive
Accountable for risk management
Ensure business risks are identified, assessed and controlled
Escalate risks to corporate/programme management
Senior User
Ensure user risks are identified, assessed and controlled
Senior Supplier
Ensure supplier risks are identified, assessed and controlled
Project Manager
Create Risk Management Strategy
Create and maintain Risk Register
Ensure risks are identified, assessed and controlled
Team Manager

Identify, assess and control risks

Project Assurance
Ensure risk management practices are in line with Risk Management
Strategy
Project Support
Help Project Manager maintain Risk Register

9.

9. Change
9.1 Purpose
Identify, assess and control potential and approved changes
9.2 Change defined
9.2.1 Issue and change control
Ensure issues and changes that affect project baselines
Identified
Assessed
Approved
Rejected
Deferred
9.2.2 Configuration management
Creation, maintenance and controlled change of configuration
Configuration items
Product component
Product
Release
Integrated with issue and change control

9.2.3 Issues
Any relevant, unplanned events
Require management action
9.2.4 Types of issue
Request for change
Off-specification
Problem/concern
9.3 The PRINCE2 approach to change
9.3.1 Establish controls
9.3.1.1 Configuration Management Strategy
Configuration management procedure
Issue and change control procedure
Tools and techniques
Records
Performance reporting
Timing of activities
Roles and responsibilities
Priority scale
Severity rating
Severity handling
Change Authority
Change budget
9.3.1.2 Configuration Item Records

Status
Version
Variant
Relationships between items
9.3.1.3 Product Status Account
Provides product information within defined limits
9.3.1.4 Daily Log
Problems/concerns handled informally
Required actions
Significant events
9.3.1.5 Issue Register
Captures and maintains information on formal issues
Is monitored by Project Manager regularly
9.3.1.6 Issue Report
Description
Impact assessment
Recommendation
For issues handled formally
9.3.2 Configuration management procedure
Planning
Decide level of configuration management
Identification
Identify configuration items

Allocate unique identifier

Record product attributes
Control
Approve and baseline products
Make authorized changes only
Store and retrieve project information
Ensure security of configuration items
Distribute copies of configuration items
Archive project documentation
Status accounting
Product Status Account
Current and historical data for each product
Verification and audit
Compare actual product status against authorized state
Also check configuration management procedure
Occur at end of each stage
Occur at end of project
9.3.3 Issue and change control procedure
9.3.3.1 Capture
Determine issue type
Determine severity and priority
Add to Issue Register or Daily Log
Create Issue Report for formal issues

9.3.3.2 Examine
Assess impact on project
Performance targets
Business Case
Risk profile
Primary stakeholders
Check severity and priority
Update Issue Register and Issue Report
9.3.3.3 Propose
Identify options
Evaluate options
Recommend options
Update Issue Register and Issue Report
9.3.3.4 Decide
Escalate issues to Project Board/Change Authority (if beyond
authority)
Approve/reject/defer recommended option
Update Issue Register and Issue Report
9.3.3.5 Implement
Take corrective action
Update Issue Register and Issue Report
9.4 Responsibilities
Corporate/programme management
Provide corporate/programme strategy

Change control
Issue resolution
Configuration management
Executive
Determine Change Authority
Determine change budget
Set severity ratings
Set priority ratings
Advise Project Manager
Make decisions on escalated issues
Continued business justification
Senior User
Advise Project Manager
Make decisions on escalated issues
Safeguarding benefits
Senior Supplier
Advise Project Manager
Make decisions on escalated issues
Safeguarding complete solution
Project Manager
Manage configuration management procedure
Manage issue and change control procedure
Create and maintain Issue Register

Implement corrective actions

Team Manager
Implement corrective actions
Project Assurance
Advise on examining and resolving issues
Project Support
Maintain Configuration Item Records
Produce Product Status Accounts
Help Project Manager maintain Issue Register

10. 10. Progress

10.1 Purpose
Monitor and compare actual achievements against those planned
Forecast project objectives and project viability
Control any unacceptable deviations
10.2 Progress defined
10.2.1 What is progress?
Measure of achievement of plan objectives
At project, stage or Work Package level
10.2.2 What are progress controls?
Allow project management team to:
Monitor progress
Compare achievement with plan
Review plans and options against future situations

Detect problems
Identify risks
Initiate corrective action
Authorize further work
10.2.3 Exceptions and tolerances
Exceptions are forecast deviations beyond agreed tolerances
Tolerances are permissible deviations above or below plan
targets
Time
Cost
Quality
Scope
Benefit
Risk
10.3 The PRINCE2 approach to progress
10.3.1 Delegating authority
10.3.1.1 The four levels of management
Corporate/programme management
Project Board
Project Manager
Team Manager
10.3.1.2 Project Board controls
Authorizations
Progress updates

Exceptions and changes

10.3.1.3 Project Manager controls
Authorizations
Progress updates
Exceptions and changes
10.3.2 Use of management stages for control
Management stages are partitions of project
Provide review and decision points
Ensure key decisions are made prior to detailed work being
implemented
Clarify impact of external influences
Delegate authority to Project Manager on stage-by-stage basis
10.3.2.1 Number of stages
Depends on project factors
Scale
Risk
Timing of key decision points
Balancing
How far ahead to plan
Where key decision points are needed
The amount of risk
Too many versus too few
Confidence in the Project Manager
Initiation stage and at least one management stage

10.3.2.2 Length of stages

Depends on project factors
Planning horizon
Technical stages
Programme activities
Level of risk
10.3.2.3 Technical stages
Cover design, build and implementation
Use specialist skills
10.3.3 Event-driven and time-driven controls
Event driven
When specific event occurs
Time driven
At predefined periodic intervals
Highlight Report
Checkpoint Report
10.3.3.1 Baselines for progress control
Project Plan
Stage Plans
Exception Plan
Work Packages
10.3.3.2 Reviewing progress
Daily Log

Issue Register
Product Status Account
Quality Register
Risk Register
10.3.3.3 Capturing and reporting lessons
Lessons Log
Lessons Report
10.3.3.4 Reporting progress
Checkpoint Report
Highlight Report
End Stage Report
End Project Report
10.3.4 Raising exceptions
Work Package-level exceptions
Team Manager raised an issue
Stage-level exceptions
Project Manager produces an Issue Report and Exception Report
Project-level exceptions
Project Board no longer has authority
May ask Project Manager to produce Exception Report
10.4 Responsibilities
Corporate/programme management
Provide project tolerances

Document project tolerances in project mandate

Make decisions on Exception Plans for project-level tolerances
Executive
Provide stage tolerances
Ensure progress is consistent from business perspective
Make decisions on Exception Plans for stage-level tolerances
Recommend action on project exceptions
Senior User
Ensure progress is consistent from user perspective
Senior Supplier
Ensure progress is consistent from supplier perspective
Project Manager
Authorize Work Packages
Monitor progress against Stage Plans
Produce reports
Highlight Reports
End Stage Reports
Lessons Reports
End Project Report
Produce Exception Reports for stage-level tolerances
Maintain registers and logs
Team Manager
Agree Work Packages with Project Manager

Inform Project Support of completed quality activities

Produce Checkpoint Reports
Notify Project Manager of Work Package deviations
Project Assurance
Verify Business Case against external events and project progress
Verify changes to Project Plan
Confirm stage and project progress against tolerances
Project Support
Assist with reports
Contribute specialist tool expertise
Number, record, store, and distribute Issue Reports and Exception
Reports
Help Project Manager maintain Issue Register and Risk Register
Maintain Quality Register for Project Manager

11. 11. Introduction to processes

11.1 The PRINCE2 processes
Are structured activities
Turn defined inputs into defined outputs
11.2 The PRINCE2 journey
11.2.1 Pre-project
Trigger is the project mandate
Verify project is worthwhile and viable
Produce and review Project Brief
Decide whether to initiate project

11.2.2 Initiation stage

Plan in detail
Obtain funding
Establish strategies and controls
Develop Business Case and Benefits Review Plan
Produce Project Initiation Documentation
11.2.3 Subsequent delivery stages
Project Manager has day-to-day control
Assigns work
Ensures products meet specifications
Gains approval
Ensures progress is in line with plan
Ensures performance targets are within tolerances
Maintains records
Daily Log
Lessons Log
Issue Register
Risk Register
Quality Register
Configuration Item Records
Produces Highlight Reports
Updates Business Case
Plans next management stage

Assign work
Monitor progress
Take corrective action
11.2.4 Final delivery stage
Transition products into operational use
Archive documentation
Assess project performance against plan
Release project resources
Plan post-project benefits reviews
11.3 The PRINCE2 process model
Starting up a Project
Directing a Project
Initiating a Project
Controlling a Stage
Managing Product Delivery
Managing a Stage Boundary
Closing a Project

12. 12. Starting up a Project

12.1 Purpose
Ensure prerequisites for initiation are in place
Answer question: do we have a viable and worthwhile project?
12.2 Objective
Project has business justification

Authorities exist
Project scope is defined
Project approach is selected
Individuals are appointed
Work of initiation is planned
Time is not wasted initiating inappropriate projects
12.3 Context
Triggered by the project mandate
Refined into the Project Brief
Includes outline Business Case
Enables Project Board to decide whether to initiate project
12.4 Activities
12.4.1 Appoint the Executive and the Project Manager
Review Project Mandate and check understanding
Corporate or programme appoint the Executive
Executive to appoint Project Manager
Create Daily Log
12.4.2 Capture previous lessons
Create Lessons Log
Review related Lessons Reports
Review lessons from corporate or programme
Consult others with previous experience
Record lessons identified in Lessons Log

12.4.3 Design and appoint the project management team

Review Lessons Log
Design project management team role descriptions
Create project management team
Appoint the project management team
Add any risks to the Daily Log
Project Manager - P
12.4.4 Prepare the outline Business Case
Executive to draft Outline Business Case
Project Manager create Project Product Description
Review risk and update the outline Business Case
12.4.5 Select the project approach and assemble the Project Brief
Evaluate possible delivery solutions
Select project approach
Assemble the Project Brief
12.4.6 Plan the initiation stage
Decide on controls for initiation stage
Create initiation Stage Plan
Review risks for impact of initiation Stage Plan
Add any new risks to Daily Log
Request authorization to initiate project

13. 13. Directing a Project

13.1 Purpose

Enable Project Board to be accountable for project success

Make key decisions
Exercise overall control
Delegate day-to-day management to Project Manager
13.2 Objective
Authority to initiate project
Authority to deliver products
Direction and control throughout project
Project remains viable
Corporate or programme management interface to project
Authority to close project
Plans for post-project benefits are managed and reviewed
13.3 Context
Starts on completion of Starting up a Project
Project Board activities
Manages by exception
Monitors via reports
Controls through small number of decision points
Assuring continued business justification
13.4 Activities
13.4.1 Authorize initiation
Review and approve Project Brief
Review and approve Project Product

Verify outline Business Case

Review and approve Initiation Stage Plan
Inform stakeholders
Authorize Project Manager to proceed with initiation stage
13.4.2 Authorize the project
Review and approve Project Initiation Documentation
Review and approve Benefits Review Plan
Notify corporate or programme management
Authorize Project Manager
To deliver the project,or
Close the project prematurely
13.4.3 Authorize a Stage or Exception Plan
Review and approve End Stage Report
Review Stage Plan or Exception Plan
Make decision
Communicate status to corporate or programme management
13.4.4 Give ad hoc direction
Respond to informal requests for advice
Respond to escalated Issue Report
Respond to Exception Report
Respond Highlight Report
Respond to corporate or programme advice and decisions
13.4.5 Authorize project closure

Review original and current Project Initiation Documentation

Review and approve End Project Report
Review and gain approval for (updated) Benefits Review Plan
Confirm (updated) Business Case
Review and issue project closure notification

14. 14. Initiating a Project

14.1 Purpose
Establish solid foundation for the project
Understand work required to deliver products
14.2 Objective
Ensure understanding of:
Reasons, benefits and risks
Scope and products
How products will be delivered and costs
Who will be involved in decision making
How quality will be achieved
How baselines will be established and controlled
How risks, issues and changes will be identified, assessed and
controlled
How progress will be monitored and controlled
Who need what Information and when
How project management method will be tailored
14.3 Context
Determine whether project is aligned with corporate/programme objectives

Avoid committing significant resources without full understanding

14.4 Activities
14.4.1 Prepare the Risk Management Strategy
Review Project Brief
Seek lessons
Review Daily Log
Define the Risk Management Strategy
Consult Project Assurance
Create and populate Risk Register
Seek Project Board approval
14.4.2 Prepare the Configuration Management Strategy
Review Project Brief
Seek lessons
Review Risk Register and Daily Log
Define the Configuration Management Strategy
Consult Project Assurance
Create initial Configuration Item Records
Create Issue Register
Update Risk Register, Issue Register and Daily Log
Seek project Board Approval
14.4.3 Prepare the Quality Management Strategy
Review Project Product Description
Review Project Brief

Seek lessons
Review Risk Register and Issue Register
Define the Quality Management Strategy
Consult Project Assurance
Create Quality Register
Project Manager - A
Project Assurance - R
Project Support - P
Update Risk Register, Issue Register and Daily Log
Seek project Board Approval
14.4.4 Prepare the Communication Management Strategy
Review Project Brief
Seek lessons
Review Risk Register and Issue Register
Identify and consult stakeholders
Establish information needs with other strategies
Define the Communication Management Strategy
Consult Project Assurance
Update Risk Register, Issue Register and Daily Log
Seek project Board Approval
14.4.5 Set up the project controls
Review Project Brief
Review strategies

Seek lessons
Review Risk Register and Issue Register
Confirm and document management stages
Allocate levels of decision making
Update project management team structure and role
descriptions
Confirm project tolerances
Summarize project controls
Consult Project Assurance
Update Risk Register, Issue Register and Daily Log
Seek project Board Approval
14.4.6 Create the Project Plan
Review Project Brief
Seek lessons
Review Risk Register and Issue Register
Create Project Plan
Follow the planning procedure
Update Project Product Description
Create Configuration Item Records
Consult Project Assurance
Update Risk Register, Issue Register and Daily Log
Seek project Board Approval
14.4.7 Refine the Business Case
Review Project Brief

Seek lessons
Create detailed Business Case
Create Benefits Review Plan
Consult Project Assurance
Update Risk Register, Issue Register and Daily Log
Seek project Board Approval
14.4.8 Assemble the Project Initiation Documentation
Extract information from Project Brief
Project definition
Project approach
Include or reference
Project management team structure
Role descriptions
Detailed Business Case
Quality Management Strategy
Configuration Management Strategy
Risk Management Strategy
Communication Management Strategy
Project Plan
Project controls
Summarize tailoring of PRINCE2
Assemble Project Initiation Documentation
Cross-check all information

Consult Project Assurance

Prepare for next stage
Triggers Managing a stage Boundary
Request authority to deliver the project

15. 15. Controlling a Stage

15.1 Purpose
Assign and monitor work
Deal with issues
Report progress to Project Board
Take corrective action to remain within tolerance
15.2 Objective
Focus attention on product delivery
Control risks and issues
Keep Business Case under review
Deliver products within quality standards, cost, effort and time
Focus project management team on delivery within tolerances
15.3 Context
Day-to-day management of the stage
Work Packages used to define and control work
Towards end of stage
Triggers Managing a Stage Boundary
Towards end of project
Triggers Closing a Project

15.4 Activities
Work Packages
15.4.1 Authorize a Work Package
Examine Stage Plan
Examine Project Initiation Documentation
Define each Work Package
Review Work Package with Team Manager
Review Team Plan
Update Stage Plan
Update Configuration Item Records
Update Quality Register
Update Risk Register
Update Issue Register
15.4.2 Review Work Package status
Review Checkpoint Report
Update Risk Register
Update Issue Register
Update Stage Plan
15.4.3 Receive completed Work Packages
Ensure Team Manager has completed Work Package
Check Quality Register
Ensure each product is approved
Confirm Configuration Item Records have beed updated

Update Stage Plan

Monitoring and reporting
15.4.4 Review the stage status
Review progress for stage
Decide whether actions are required
Revise Risk Register and Issue Register
Update Stage Plan
Phased handover?
Request Product Status Account
Ensure products approved
Hand over products
Consider whether to review lessons
End of current stage?
Prepare for next stage
End of final stage?
Prepare to close project
15.4.5 Report highlights
Assemble information
Checkpoint Reports
Risk Register
Issue Register
Quality Register
Lessons Log

Product Status Account

Revisions to Stage Plan
Assemble list of corrective actions
Review Highlight Report (previous period)
Produce Highlight Report (current period)
Distribute Highlight Report
Issues
15.4.6 Capture and examine issues and risks
Informal issues
Deal with them
Update Daily Log
Formal issues
Update Issue Register
Create Issue Report
Report status
Risks
Update Risk Register
Report status
Review Stage Status before
Taking corrective action
Seeking advise from the Project Board
Escalating an issue or risk
15.4.7 Escalate issues and risks

Examine Stage Plan

Examine Project Plan
Determine options for recovery
Assess impact of options
Create Exception Report
15.4.8 Take corrective action
Collect information about deviation
Identify ways of dealing with deviation
Trigger corrective action
Via authorizing a Work Package
Update Configuration Item Records
Update Issue Report
Update Issue Register or Daily Log
Update Risk Register
Update Stage Plan

16. 16. Managing Product Delivery

16.1 Purpose
Control link between Project Manager and Team Manager
Place formal requirements on project work
Accepting
Executing
Delivering
16.2 Objective

Work on products is authorized and agreed

Team Managers understand objectives
Products
Effort
Cost
Timescales
Products meet expectations and within tolerance
Project Manager receives progress information
Accurate
At agreed frequency
16.3 Context
Team Manager ensures products are delivered
Accepts Work Packages
Maintains interfaces
Creates Team Plan
Adheres to development methods
Adheres to quality methods
Obtains approval
16.4 Activities
16.4.1 Accept a Work Package
Review Work Package
Produce Team Plan
Review risks and raise any new ones risk

Agree to deliver Work Package

16.4.2 Execute a Work Package
Manage development of products
Raise new issues, risks or lessons
Obtain approvals
Review and report on status
16.4.3 Deliver a Work Package
Review Quality Register
Review approval records
Update Team Plan
Deliver completed products
According to Work Package
Notify Project Manager

17. 17. Managing a Stage Boundary

17.1 Purpose
Enable Project Board to be provided with information
Review success of current stage
Approve next Stage Plan
Review updated Project Plan
Confirm continued business justification
Confirm acceptability of risks
17.2 Objective
Assure Project Board products are completed and approved

Prepare Stage Plan for next stage

Review and update Project Initiation Documentation
Business Case
Project Plan
Project approach and strategies
Project management team structure and roles
Assess project viability and risk exposure
Record helpful lessons
Request authorization to start next stage
17.3 Context
Executed towards end of each stage
Also implemented in exception situations
17.4 Activities
17.4.1 Plan the next stage
Review and update Project Initiation Documentation
Produce Stage Plan for next stage
Create/update Configuration Item Records
UpdateIssue Register and Risk Register
Update Quality Register
17.4.2 Update the Project Plan
Check current Stage Plan is up to date
Revise Project Plan
Update Issue Register and Risk Register

17.4.3 Update the Business Case

Review risk appetite, risk capacity and Risk Register
Update Benefits Review Plan
Examine and review
Benefits Review Plan
Results of reviews undertaken
Need to reviews in the next stage
Approved changes
Project risk profile and key risks
Issue Register
Project Plan
Time
Costs
Project environment
Revise Business Case
Update Risk Register and Issue Register
17.4.4 Report stage end
Prepare End Stage Report
Create Lessons Report
Identify follow-on action recommendation (if phased handover)
Seek approval of Exception Plan or Stage Plan
Review Communication Management Strategy
Send copies of End Stage Report

Send copies of Lessons Report

17.4.5 Produce an Exception Plan
Update Issue Register
Review and update Project Initiation Documentation
Produce Exception Plan
Create/update Configuration Item Records
Update Issue Register and Risk Register
Update Quality Register

18. 18. Closing a Project

18.1 Purpose
Fixed point
Conform acceptance of project product
Recognize objectives have been achieved
OR project has has nothing more to contribute
18.2 Objective
Verify user acceptance of products
Ensure host site can support products
Review project performance against baselines
Benefits
Assess benefits
Update benefits forecast
Plan review of unrealized benefits
Address open issues and risks with follow-on action recommendations

18.3 Context
A clear end
More successful than slow drift into use
Ensure unachieved objectives are identified
Transfers ownership
Planned as part of last stage
May be triggered by premature closure
18.4 Activities
18.4.1 Prepare planned closure
Update Project Plan
Request Product Status Account
Confirm Project Product delivered
Seek approval to give notice that resources can be released
18.4.2 Prepare premature closure
Update Issue Register
Update Project Plan
Request Product Status Account
Agree means for recovering products
Seek approval to give notice that resources can be released
early
18.4.3 Hand over products
Prepare follow-on action recommendations
Update Benefits Review Plan
Hand over products

18.4.4 Evaluate the project

Review original Project Initiation Documentation
Review current Project Initiation Documentation
Prepare End Project Report
Prepare Lessons Report
18.4.5 Recommend project closure
Identify who needs to be advised
Close records
Close Issue Register
Close Risk Register
Close Quality Register
Close Daily Log
Close Lessons Log
Archive project information
Prepare draft project closure notification

19. 19. Tailoring PRINCE2 to the project environment

19.1 What is tailoring?
Appropriate use of PRINCE2 on project
Adapt themes
Incorporate terms and language
Revise management Product Descriptions
Revise role descriptions
Adjust processes

Done by project management team

What is embedding?
Adoption of PRINCE2 across an organization
Process responsibilities
Scaling rules
Standards
Training and development
Integration with business processes
Tools
Process assurance
Done by the organization
19.2 General approach to tailoring
19.2.1 Applying the principles
Are universal
Are not tailored
19.2.2 Adapting the themes
Incorporate environmental and project factors
Risk Management Strategy
Quality Management Strategy
Configuration Management Strategy
Communication Management Strategy
19.2.3 Applying the organization's terms and language
Substitute terms in project documentation to improve understanding

19.2.4 Adapting the management products

Modify Product Descriptions/provide template
Purpose and quality criteria remain clear
19.2.5 Adapting the roles
Match individuals' capability and authority to project roles
19.2.6 Adapting the processes
All process activities must be done
Responsibilities for activities may change
References to management products may change
19.3 Examples of tailoring PRINCE2
Projects in programme environment
Project scale
Commercial customer/supplier environment
Multi-organization projects
Project type
Sector differences
Project management Bodies of Knowledge
19.4 Projects in a programme environment
Programme is temporary organization structure
Implements related project and activities
Delivers outcomes and benefits relating to strategic objectives
Can span several years
Helps transform organizations

19.4.1 Themes
19.4.1.1 Business Case
Programme defines project standards
Project Business Case is aggregated into programme Business
Case
Budget
Benefits
Contributions to programme blueprint
Programme management team manages benefits
Project Benefits Review Plan
Programme benefits realization plan
19.4.1.2 Organization
Programme board
Senior Responsible Owner
Ensures programme meets objectives
Ensures programme delivers benefits
Confirm project Executive appointments
Programme manager
Oversees day-to-day management and delivery
Business change manager(s)
Oversees benefits definition and management
Ensures project capabilities are adopted by organization
Representatives of corporate functions
Lead supplier

Project Executives
Integrated programme and project management teams
Have clear responsibilities and accountabilities
Avoid duplication
Have efficient reports and reviews
19.4.1.3 Quality
Programme Quality Management Strategy
Defines project's Quality Management Strategy
Quality assurance and control at programme level
19.4.1.4 Plans
Programme monitoring and control strategy
Describes project planning standards
Programme may provide dedicated planners
Identify inter-project dependencies
19.4.1.5 Risk
Programme Risk Management Strategy
Defines project's Risk Management Strategy
Risk categories
Risk scales
Probability
Impact
Proximity
Risk evaluation techniques

Project-level risk tolerance

Escalation procedures
19.4.1.6 Change
Programme information management strategy
Defines project's Configuration Management Strategy
Defines project interfaces
Programme issue resolution strategy
Defines project's change control procedure
Defines escalation procedures
19.4.1.7 Progress
Programme monitoring and control strategy
Influences project reviews and reports
Influences project management standards
Defines project tolerances
Influences management stages
19.4.2 Processes
Programme could undertake most of Starting up a Project
Appoint Executive and Project Manager
Review previous lessons
Design and appoint programme management team
Prepare Project Brief
19.4.3 Management products
Common names for project and programme

Use different prefixes and templates

Are maintained locally/centrally
19.5 Project scale
Is relative to organization
Is related to project size
Is related to project context
19.5.1 Simple project
19.5.1.1 Themes
Organization
Consolidate roles and functions
Executive and Senior User
Project Board and Project Assurance
Project Manager and Team Manager
Project Manager and Project Support
Business Case
Business justification is needed
Plans
Product Descriptions
Product checklist
Quality
Understand levels of quality
Risk
Risk analysis

Risk responses
Communicate risk by Checkpoint and Highlight Reports
Change
Version control standards
Secure work storage
Progress
Some form of control and reporting
19.5.1.2 Processes
Remain relevant
Starting up a Project can be less formal
Starting up a Project and Initiating a Project can be combined
19.5.1.3 Management products
Project Board reports could be oral
Reports could be email
Project Initiation Documentation could be set of presentation
slides
Documents could include more than one management product
19.6 Commercial customer/supplier environment
Has two sets of:
Reasons for project
Management systems
Governance structures
Corporate cultures
19.6.1 Themes

19.6.1.1 Business Case

Customer Business Case
Benefits
Internal costs
External costs
Project risks
Operational risks
Supplier Business Case
Sales objective
Account plan objectives
Sales territory objectives
Market sector objectives
19.6.1.2 Organization
Key role decisions
Senior Supplier
Project Manager
Project Board
Maintain business justification
Adhere to governance rules
19.6.1.3 Quality
Is defined by Quality Management Strategy
19.6.1.4 Plans
Align payments to each management stage

Have break-points in contracts

Customer decides how to manage procurement activities
Team Plan may be private to supplier
Project Manager uses Checkpoint Report to maintain Stage Plan
19.6.1.5 Risk
Have more than one Risk Register
Have joint Risk Register
19.6.1.6 Change
Align change control procedure
Align change budget
19.6.1.7 Progress
Align reviewing and reporting to governance requirements
Frequency
Format
Formality
19.6.2 Processes
Supplier pre-contract activities
Starting up a Project
Initiating a Project
Assess viability of sale
Assess costs and prices
Align business approval processes
19.6.3 Management products

Project Initiation Documentation

Work Package
Contract
19.7 Multi-organization projects
Similar guidance to customer/supplier environment
Examples
Joint ventures
Collaborative research
Inter-departmental projects
Inter-governmental projects
Inter-agency projects
Alliance contracting
Bidding consortium
Partnerships
19.8 Project type
19.8.1 Lifecycle models
Align management stages to development lifecycle
Design
Build
Test
Transition
Use tolerances to match development focus
Integrate specialist roles into project management team
structure

Use PRINCE2 for project management products

Use specialist method to define management products
Purpose
Format
Composition
Quality criteria
Link Managing Product Delivery to specialist product development
processes
19.8.2 The evolving project
Evolving Business Case
Enables organization to make balanced investment commitment
Assesses impact of requested changes
19.8.3 The feasibility project
Has one Project Plan
Has one Business Case
Has one set of risks
Has one product - recommendation
19.9 Sector differences
19.9.1 Senior Responsible Owner
Has overall responsibility for project/programme
Is not PRINCE2 role
In programme context
Project Executive reports to the programme SRO
In project context

Project SRO undertakes the project Executive role

19.9.2 OGC Gateway Review
Examines project at key decision points
Provides assurance on project progress
Is best practice
UK central government
Health sector
Local government
Defence
Delivers peer review
Can align with PRINCE2
Review 1: Business justification
Reviews 2 and 3: Delivery strategy and investment decision
Review 4: Readiness for service
19.10 Project management Bodies of Knowledge
Describe project management competencies and techniques
Leadership
Negotiation
Interpersonal skills
Are non-prescriptive
Can be referred to in isolation
Are targeted at Project Managers

20. Appendix A: Product Description outlines

A.1 Benefits Review Plan

A.1.1 Purpose
Define how and when benefits are measured
Define post-project benefits reviews during Closing a Project
A.1.2 Composition
Benefits to be measured
Who is accountable for benefits
How to measure benefits
Resources needed
Baseline measures
How product performance will be reviewed
A.1.3 Derivation
Business Case
Project Product Description
Programme benefits realization plan
Corporate performance monitoring function
A.1.4 Format and presentation
Document
Spreadsheet
Presentation slides
Project management tool
A.1.5 Quality criteria
Covers benefits in Business Case

Confirms benefits are measurable

Records baseline measures
Describes timing for measurement
Identifies skills/individuals required
Confirms effort and cost is realistic
Measures and reviews dis-benefits
A.2 Business Case
A.2.1 Purpose
Document justification for product
Costs
Development
Implementation
Incremental operations and maintenance
Benefits
Risks
A.2.2 Composition
Executive summary
Reasons
Business options
Expected benefits
Expected dis-benefits
Timescale
Costs

Investment appraisal
Major risks
A.2.3 Derivation
Project mandate and Project Brief - reasons
Project Plan - costs and timescales
Senior User(s) - expected benefits
Executive - value for money
Risk Register
Issue Register
A.2.4 Format and presentation
Document
Spreadsheet
Presentation slides
Project management tool
A.2.5 Quality criteria
Is consistent with corporate/programme management strategy
Aligns Project Plan and Business Case
Identifies and justifies Benefits
Clarifies how benefits will be realized
Defines successful outcome
Describes preferred business option
Describes preferred sourcing option
Describes funding

Includes financial and non-financial criteria

Includes operations and maintenance costs and risks
Conforms to organizational accounting standards
States major risks and responses
A.3 Checkpoint Report
A.3.1 Purpose
Report Work Package status
A.3.2 Composition
Date
Period
Follow-ups
This reporting period:
Products being developed
Products completed
Quality management activities
Lessons identified
Next reporting period:
Products being developed
Products to be completed
Quality management activities
Work Package tolerance status
Issues and risks
A.3.3 Derivation

Work Package
Team Plan and actuals
Previous Checkpoint Report
A.3.4 Format and presentation
Oral report to Project Manager
Presentation at progress review
Document/email to Project Manager
Project management tool
A.3.5 Quality criteria
Produced at required frequency
Has timely, useful, objective and accurate information
Covers every product in Work Package
Includes update on unresolved issues
A.4 Communication Management Strategy
A.4.1 Purpose
Describe communication means and frequency
Covers internal and external communication
Facilitate stakeholder engagement
Establishes bi-directional flow of information
A.4.2 Composition
Introduction
Purpose
Objectives

Scope
Responsibilities
Communication procedure
Tools and techniques
Records
Reporting
Timing of activities
Roles and responsibilities
Stakeholder analysis
Identification
Current relationship
Desired relationship
Interfaces
Key messages
Information needs
From project
To project
Provider and recipient
Means of communication
Format
A.4.3 Derivation
Corporate communications policies
Programme's information management strategy

Project Initiation Documentation

Project management team structure
Risk Management Strategy
Quality Management Strategy
Configuration Management Strategy
Workshops/discussions with stakeholders
Stakeholder analysis
A.4.4 Format and presentation
Stand-alone product
Section of Project Initiation Documentation
Document
Spreadsheet
Mindmap
Project management tool
A.4.5 Quality criteria
Identifies and consults all stakeholders
Obtains stakeholder agreement
Content
Frequency
Method
Considers common communication standard
Allows for time, effort and resources in Stage Plans
Has appropriate formality and frequency of communication

Describes reporting structure between project and programme

Incorporates corporate communications facilities
A.5 Configuration Item Record
A.5.1 Purpose
Provide information record
History
Status
Version
Variant
Relationships
A.5.2 Composition
Project identifier
Item identifier
Current version
Item title
Date of last status change
Owner
Location
Copy-holders
Item type
Item attributes
Stage
Users

Status
Product state
Variant
Producer
Date allocated
Source
Relationship with other items
Cross-references
A.5.3 Derivation
Configuration Management Strategy
Product breakdown structure
Stage Plan and Work Package
Quality Register
Issue Register
Risk Register
A.5.4 Format and presentation
Document
Spreadsheet
Database
Project management tool
A.5.5 Quality criteria
Reflects product status
Is in secure location

Version numbers match products

Shows version histories
Is defined and updated
A.6 Configuration Management Strategy
A.6.1 Purpose
To identify:
How and where products will be stored
Storage and retrieval security arrangements
How versions and variants will be identified
How changes will be controlled
Responsibility for configuration management
A.6.2 Composition
Introduction
Purpose
Objectives
Scope
Responsibilities
Configuration management procedure
Issue and change control procedure
Tools and techniques
Records
Reporting
Issue Report

Product Status Account

Timing of activities
Roles and responsibilities
Scales for priority and severity
A.6.3 Derivation
Customer's quality expectations
Corporate configuration management system
Programme Quality Management Strategy
User's quality management system
Supplier's quality management system
Needs of products and environment
Project management team structure
Workshops and discussions
A.6.4 Format and presentation
Stand-alone product
Section of Project Initiation Documentation
Project management tool
A.6.5 Quality criteria
Clarifies responsibilities
Defines key identifier for products
Clarifies version control
Provides Project Manager with product information
Considers corporate/programme management strategy

Has efficient retrieval system

Has necessary project files
Audits
Historical records
Lessons
Is appropriate for size and nature of project
Has appropriate resources
Considers requirements of operational group
A.7 Daily Log
A.7.1 Purpose
Record:
Informal issues
Required actions
Significant events not caught elsewhere
Acts as project diary for Project Manager
A.7.2 Composition
Date of entry
Problem/action/event/comment
Person responsible
Target date
Results
A.7.3 Derivation
Entries made by Project/Team Manager

Thoughts, conversations, observations

A.7.4 Format and presentation
Document
Spreadsheet
Desk diary
Log book
Electronic diary/calendar/task lists
Project management tool
A.7.5 Quality criteria
Understandable entries
Filled in date, person responsible and target date
Suitable access rights
A.8 End Project Report
A.8.1 Purpose
Review project performance against Project Initiation Documentation
Pass on lessons
Pass on details of unfinished work
A.8.2 Composition
Project Manager's report
Review of Business Case
Benefits achieved
Residual benefits expected
Net benefits expected

Deviations
Review of project objectives
Targets and tolerances
Time
Cost
Quality
Scope
Benefits
Risk
Strategies and controls
Review of team performance
Review of products
Quality records
Approval records
Off-specifications
Project product handover
Follow-on action recommendations
Lessons Report
A.8.3 Derivation
Project Initiation Documentation
Business Case
Project Plan
Benefits Review Plan

Issue Register
Quality Register
Risk Register
Lessons Report
End Stage Reports
Exception Reports
A.8.4 Format and presentation
Presentation to Project Board
Document/email to Project Board
Project Management Tool
A.8.5 Quality criteria
Describes abnormal situations
Closes issues/recommends follow-on action
Accompanied by useful documentation or evidence
Confirmed by Project Assurance
A.9 End Stage Report
A.9.1 Purpose
Summarize progress and project situation to date
Provides information for Project Board to decide what to do next
A.9.2 Composition
Project Manager's report
Review of Business Case
Benefits achieved

Residual benefits expected

Net benefits expected
Deviations
Aggregated risk exposure
Review of project objectives
Targets and tolerances
Time
Cost
Quality
Scope
Benefits
Risk
Strategies and controls
Review of stage objectives
Review of team performance
Review of products
Quality records
Approval records
Off-specifications
Phased handover
Follow-on action recommendations
Lessons report
Issues and risks

Forecast
Time
Cost
Quality
Scope
Benefits
Risk
A.9.3 Derivation
Current Stage Plan and actuals
Project Plan
Benefits Review Plan
Risk Register
Quality Register
Issue Register
Exception Report
Lessons Report
Work Packages
Updated Business Case
A.9.4 Format and presentation
Presentation to Project Board
Document/email to Project Board
Project Management Tool
A.9.5 Quality criteria

Shows stage performance against plan

Describes abnormal situations
Confirmed by Project Assurance
A.10 Exception Report
A.10.1 Purpose
Inform Project Board of forecast exception
A.10.2 Composition
Exception title
Cause of exception
Consequences of deviation
Project
Corporate/programme management
Options
Recommendation
Lessons
A.10.3 Derivation
Current plan and actuals
Issue Register
Risk Register
Quality Register
Highlight/Checkpoint Reports
Project Board advice
A.10.4 Format and presentation

Issue raised at progress review

Document/email
Project management tool
A.10.5 Quality criteria
Shows status of time and cost performance
States reasons for deviation
Analyses exception
Describes impact
Considers implications for Business Case
Analyses options
Is timely and appropriate
A.11 Highlight Report
A.11.1 Purpose
Provide Project Board with stage status summary
A.11.2 Composition
Date
Period
Status summary
This reporting period:
Work Packages
Products completed
Products planned
Corrective actions

Next reporting period:

Work Packages
Products to be completed
Corrective actions
Project and stage tolerance status
Requests for change
Key issues and risks
Lessons Report
A.11.3 Derivation
Project Initiation Documentation
Checkpoint Reports
Issue Register
Quality Register
Risk Register
Stage Plan and actuals
Communication Management Strategy
A.11.4 Format and presentation
Presentation to Project Board
Document/email to Project Board
Project Management Tool
A.11.5 Quality criteria
Has right level and frequency of progress reporting
Is provided at required frequency

Is timely, useful, accurate and objective

Highlights potential problems
A.12 Issue Register
A.12.1 Purpose
Capture information on formally managed issues
A.12.2 Composition
Issue identifier
Issue type
Request for change
Off-specification
Problem/concern
Date raised
Raised by
Issue Report author
Issue description
Priority
Severity
Status
Closure date
A.12.3 Derivation
Configuration Management Strategy
New issues raised
New information on existing issues

A.12.4 Format and presentation

Document
Spreadsheet
Database
Stand-alone register
Carry forward in progress review minutes
Project management tool
Integrated project register
Risks
Actions
Decisions
Issues
Assumptions
Lessons
A.12.5 Quality criteria
Indicates action status
Uniquely identifies issues
Defines update process
Transfers risks to Risk Register
Has controlled access
Is kept in safe place
A.13 Issue Report
A.13.1 Purpose

Describes formal issue

Request for change
Off-specification
Problem/concern
A.13.2 Composition
Issue identifier
Issue type
Request for change
Off-specification
Problem/concern
Date raised
Raised by
Issue Report author
Issue description
Impact analysis
Recommendation
Priority
Severity
Decision
Accept
Reject
Defer
Grant concession

Approved by
Decision date
Closure date
A.13.3 Derivation
Configuration Management Strategy
Highlight Report
Checkpoint Report
End Stage Report
Stage Plan
Users and supplier teams
Quality controls
Observation and experience of processes
Quality Register
Risk Register
Lessons Log
Completed Work Packages
A.13.4 Format and presentation
Document
Spreadsheet
Database
Project management tool
A.13.5 Quality criteria
States issues clearly

Has detailed impact analysis

Considers all implications
Examines effect on tolerances
Registers issues correctly
Describes decisions accurately
A.14 Lessons Log
A.14.1 Purpose
Records lessons
Apply to this project
Apply to future projects
A.14.2 Composition
Lesson type
Project
Corporate/programme
Project and corporate/programme
Lesson detail
Event
Effect
Causes/trigger
Early warning indicators
Recommendations
Risk
Data logged

Logged by
Priority
A.14.3 Derivation
Lessons Reports
Project mandate/Project Brief
Daily Log
Issue Register
Quality Register
Risk Register
Checkpoint Reports
Highlight Reports
Completed Work Packages
Stage Plans with actuals
Observation and experience of processes
A.14.4 Format and presentation
Document
Spreadsheet
Database
Stand-alone log
Carry forward in progress review meetings
Project management tool
Integrated project register
Risks

Actions
Decisions
Issues
Assumptions
Lessons
A.14.5 Quality criteria
Indicates action status
Uniquely identifies lessons
Defines update process
Has controlled access
Is kept in safe place
A.15 Lessons Report
A.15.1 Purpose
Pass on lessons
Embed lessons in way of working
A.15.2 Composition
Executive summary
Scope
Review:
What went well
What went badly
Recommendations
Project management method

Specialist methods
Project strategies
Project controls
Abnormal events
Review of useful measurements
Effort required to create products
Effectiveness of Quality Management Strategy
Issues and risks
Additional details for significant lessons
Event
Effect
Causes/trigger
Early warning indicators
Recommendations
Risk
A.15.3 Derivation
Project Initiation Documentation
Lessons Log
Quality Register
Issue Register
Risk Register
Quality records
Communication Management Strategy

A.15.4 Format and presentation

Oral report to Project Board
Presentation at progress review
Document/email to Project Board
Project management tool
A.15.5 Quality criteria
Examines every management control
Provides statistics
Estimates versus actuals
Success of quality controls
Reviews unexpected risks
Recommends actions
Confirmed by Project Assurance
A.16 Plan
A.16.1 Purpose
Show how and when objectives are achieved
A.16.2 Composition
Plan description
Plan prerequisites
External dependencies
Planning assumptions
Lessons incorporated
Monitoring and control

Budgets
Tolerances
Product Descriptions
Schedule
Gantt/bar chart
Product breakdown structure
Product flow diagram
Activity network
Table of resource requirements
Table of specific resources
A.16.3 Derivation
Project Brief
Quality Management Strategy
Risk Management Strategy
Communication Management Strategy
Configuration Management Strategy
Resource availability
Registers and logs
A.16.4 Format and presentation
Stand-alone product
Section of Project Initiation Documentation
Document
Spreadsheet

Presentation slides
Mindmap
Project management tool
A.16.5 Quality criteria
Is achievable
Bases estimates on resources and/or historical data
Has appropriate level of detail
Conforms to corporate/programme standards
Incorporates lessons from previous projects
Incorporates legal requirements
Covers management and control activities
Supports project strategies
Quality Management Strategy
Configuration Management Strategy
Risk Management Strategy
Communication Management Strategy
Supports project approach
Supports management controls
A.17 Product Description
A.17.1 Purpose
Understand product
Nature
Purpose

Function
Appearance
Define users
Identify information/supply sources
Identify quality required
Identify activities
Produce
Review
Approve
Define people/skills required
A.17.2 Composition
Identifier
Project name
Item name
Version number
Title
Purpose
Composition
Derivation
Format and presentation
Development skills required
Quality criteria
Quality tolerance

Quality method
Quality skills required
Quality responsibilities
A.17.3 Derivation
Product breakdown structure
End-users
Quality Management Strategy
Configuration Management Strategy
A.17.4 Format and presentation
Document
Presentation slides
Mindmap
Project management tool
A.17.5 Quality criteria
Has clear and consistent purpose
Has sufficient level of detail
Is concise
Identifies responsibility for product development
Has consistent quality criteria
Verifies product meets quality criteria
Defines requirements of Senior User(s)
Confirms product requirements are achievable
A.18 Product Status Account

A.18.1 Purpose
Provide status information
Within defined limits
Entire project
Particular stage
Particular area
History of specific product
A.18.2 Composition
Report scope
Date produced
Product status
Product identifier and title
Version
Status and date of status change
Product state
Owner
Copy-holders
Location
Users
Producer and allocated date
Planned and actual baseline date
Product Description
Product

Planned date for next baseline

List of related items
List of related issues and risks
A.18.3 Derivation
Configuration Item Records
Stage Plan
A.18.4 Format and presentation
Document
Spreadsheet
Database report
Project management tool output
A.18.5 Quality criteria
Details and dates match Stage Plan
Product name is consistent
Product breakdown structure
Configuration Item Record
A.19 Project Brief
A.19.1 Purpose
Provide full and firm foundation for initiation
A.19.2 Composition
Project definition
Background
Objectives

Time
Cost
Quality
Scope
Benefits
Risk
Desired outcomes
Scope and exclusions
Constraints and assumptions
Tolerances
Users and interested parties
Interfaces
Outline Business Case
Project Product Description
Project approach
Project management team structure
Role descriptions
References
A.19.3 Derivation
Project mandate
Programme management
Discussions
Corporate management

Project Board
Users
Operations and maintenance organization
Suppliers
Lessons Log
A.19.4 Format and presentation
Document
Presentation slides
Project management tool
A.19.5 Quality criteria
Is brief
Reflects project mandate
Reflects requirements of business and users
Considers range of project approaches
Off-the-shelf
Contracted out
Developed in-house
Designed from new
Modified product
Maximizes chance of project success
Is consistent with corporate social responsibility directive
Has SMART objectives
Specific

Measurable
Achievable
Realistic
Time-bound
A.20 Project Initiation Documentation
A.20.1 Purpose
Define project
Give direction and scope
Form contract between Project Manager and Project Board
Ensure project has sound basis
Assess progress, issues and viability
Provide single reference source
A.20.2 Composition
Project definition
Background
Objectives and outcomes
Scope and exclusions
Constraints and assumptions
Users and interested parties
Interfaces
Project approach
Business Case
Project management team structure

Role descriptions
Quality Management Strategy
Configuration Management Strategy
Risk Management Strategy
Communication Management Strategy
Project Plan
Project controls
Tailoring of PRINCE2
A.20.3 Derivation
Project Brief
Discussions
User
Business
Supplier
A.20.4 Format and presentation
Single document
Index for collection of documents
Document with cross-references to other documents
Project management tool
A.20.5 Quality criteria
Correctly represents project
Shows viable project
Has complete project management team structure

Names
Titles
Role descriptions
Lines of authority
Shows control and reporting regime
Project Board
Project Manager
Team Managers
Delegated assurance requirements
Is consistent with corporate social responsibility directive
A.21 Project Product Description
A.21.1 Purpose
Gain agreement on project scope and requirements
Define customer's quality expectations
Define acceptance criteria
Define acceptance method and responsibilities
A.21.2 Composition
Title
Purpose
Composition
Derivation
Existing products
Design specifications

Feasibility report
Project mandate
Development skills required
Customer's quality expectations
Acceptance criteria
Project-level quality tolerances
Acceptance method
Acceptance responsibilities
A.21.3 Derivation
Project mandate
Discussions with Senior User and Executive
Request for proposal
A.21.4 Format and presentation
Document
Presentation slides
Mindmap
Project management tool
A.21.5 Quality criteria
Has clear purpose
Defines project scope
Addresses stakeholder requirements
Defines acceptability of products
Measurable criteria

Realistic and consistent criteria

Proven criteria
Describes quality expectations
Characteristics of key requirements
Customer's quality management system
Customer/staff satisfaction
A.22 Quality Management Strategy
A.22.1 Purpose
Define quality techniques and standards
Define responsibilities
A.22.2 Composition
Introduction
Purpose
Objectives
Scope
Responsibilities
Quality management procedure
Tools and techniques
Records
Quality Register
Reporting
Timing of activities
Roles and responsibilities

A.22.3 Derivation
Project Board
Project Brief
Project management team structure
Project Product Description
Organizational standards
Supplier and customer quality management systems
Configuration management requirements
Change control requirements
Corporate/programme strategies
Workshops and discussions
A.22.4 Format and presentation
Stand-alone document
Section of Project Initiation Documentation
Project management tool
A.22.5 Quality criteria
Defines how customer's expectations will be met
Defines responsibilities independent of project and Project Manager
Conforms to supplier's and customer's management systems
Conforms to corporate/programme quality policy
Has appropriate approaches
A.23 Quality Register
A.23.1 Purpose

Issue unique identifier for each quality activity

Point to product quality records
Summarize quality activities
A.23.2 Composition
Quality identifier
Product identifier
Product title
Method
Roles and responsibilities
Dates
Result
Quality records
A.23.3 Derivation
Quality Management Strategy
Stage Plan
Quality activities
A.23.4 Format and presentation
Document
Spreadsheet
Database
Stand-alone register
Carry forward in progress review minutes
Project management tool

Integrated register
Risks
Actions
Decisions
Issues
Assumptions
Lessons
A.23.5 Quality criteria
Ensures quality activities are entered
Allocates responsibility
Describes and assigns actions
Has controlled access
Is kept in safe place
Assigns appropriate levels of control
A.24 Risk Management Strategy
A.24.1 Purpose
Describe risk management techniques and standards
Describe responsibilities
A.24.2 Composition
Introduction
Purpose
Objectives
Scope

Responsibilities
Risk management procedure
Tools and techniques
Records
Risk Register
Reporting
Timing of activities
Roles and responsibilities
Scales
Probability
Impact
Proximity
Risk categories
Risk response categories
Early warning indicators
Risk tolerance
Risk budget
A.24.3 Derivation
Project Brief
Business Case
Corporate/programme management
A.24.4 Format and presentation
Stand-alone document

Section of Project Initiation Documentation

Project management tool
A.24.5 Quality criteria
Defines clear responsibilities
Documents risk management procedure
Defines scales, expected value and proximity
Defines risk reporting requirements
A.25 Risk Register
A.25.1 Purpose
Capture and maintain information on identified risks
A.25.2 Composition
Risk identifier
Risk author
Date registered
Risk category
Risk description
Cause
Event
Effect
Probability, impact and expected value
Inherent
Residual
Proximity

Risk response categories

Threats
Avoid
Reduce
Fallback
Transfer
Accept
Share
Opportunities
Enhance
Exploit
Reject
Share
Risk response
Risk status
Risk owner
Risk actionee
A.25.3 Derivation
Risk Management Strategy
New risks
Project Brief
Work Packages
Daily Log/Issue Register

A.25.4 Format and presentation

Document
Spreadsheet
Database
Stand-alone register
Carry forward in progress review minutes
Integrated project register
Risks
Actions
Decisions
Issues
Assumptions
Lessons
A.25.5 Quality criteria
Indicates action status
Uniquely identifies risks
Has controlled access
Is kept in safe place
A.26 Work Package
A.26.1 Purpose
Pass responsibility for work to Team Manager/member
A.26.2 Composition
Date

Team Manager/person authorized

Work Package description
Techniques, processes and procedures
Development interfaces
Operations and maintenance interfaces
Configuration management requirements
Joint agreements
Tolerances
Constraints
Reporting arrangements
Problem handling and escalation
Extracts/references
Stage Plan
Product Descriptions
Approval method
A.26.3 Derivation
Existing commercial agreements
Quality Management Strategy
Configuration Management Strategy
Stage Plan
A.26.4 Format and presentation
Document
Conversation between Project Manager and Team Manager

Project management tool

A.26.5 Quality criteria
Is clearly defined and understood
Has Product Description for each product
Identifies quality criteria
Has agreed standards
Defines interfaces
Has agreement on constraints
Has defined reporting arrangements

21. Appendix B: Governance

Governance of project management principles
Outside scope of PRINCE2
Board has overall responsibility
Partially addressed by PRINCE2
Defined roles, responsibilities and performance criteria
Project is aligned to corporate strategy
Effective delegation of authorization bodies
Independent scrutiny by corporate/programme management
Culture of improvement and open reporting
Fully addressed by PRINCE2
Disciplined governance arrangements
Projects have approved plan with authorization points
Business Case is supported by relevant information

Defined criteria for reporting project status and escalations

Project stakeholders are engaged

22. Appendix C: Roles and responsibilities

C.1 Project Board
C.1.1 General responsibilities
During start-up and initiation
Confirm project tolerances
Approve Project Brief
Approve Stage Plan for initiation
Authorize project initiation
Decide whether to use Change Authority
Set severity ratings
Set priority ratings
Approve supplier contract
Approve Project Initiation Documentation
Authorize project start
During project
Set stage tolerances
Approve Stage Plans
Authorize management stages
Approve Product Descriptions
Approve stage-level Exception Plans
Communicate with stakeholders

Provide overall guidance and direction

Advise Project Manager
Ensure risks are tracked and managed
Approve changes
Make decisions on escalated issues
Approve completed products
At end of project
Provide assurance
Product delivery
Acceptance criteria
Confirm acceptance of project product
Approve End Project Report
Pass on issues, lessons and risks
Distribute follow-on action recommendations and Lessons Reports
Transfer responsibility of Benefits Review Plan
Authorize project closure
Send project closure notification to corporate/programme management
C.1.2 Competencies
Have authority to make decisions
Approve plans
Authorize deviations
Allocate resources
Represent stakeholders

Business
User
Supplier
Stay with project
Decision making
Delegation
Leadership
Negotiation
Conflict resolution
C.2 Executive
C.2.1 Responsibilities
Design and appoint project management team
Oversee Project Brief and Business Case
Secure project funding
Approve supplier contracts
Hold Senior Supplier and Senior User to account
Transfer responsibility for post-project benefits reviews
Monitor and control project progress
Escalate project-level issues and risks
Ensure risks are identified, assessed and controlled
Make decisions on escalated issues
Organize and chair Project Board reviews
Ensure overall business assurance

C.3 Senior User

C.3.1 Responsibilities
Provide customer's quality expectations
Define acceptance criteria
Specify desired outcome
Ensure products deliver desired outcomes
Ensure benefits are realized
Provide statement of actual versus forecast benefits
Resolve user requirements and priority conflicts
Make user resources available
Make decisions on escalated issues
Advise user management on project matters
Maintain business performance stability
Provide user view on follow-on action recommendations
Undertake user Project Assurance
C.4 Senior Supplier
C.4.1 Responsibilities
Confirm viability of project approach
Ensure proposals are realistic
Advise on design, development and acceptance methods
Make supplier resources available
Make decisions on escalated issues
Resolve supplier requirements and priority conflicts

Brief management on supplier aspects

Ensure quality procedures are used correctly
Undertake supplier Project Assurance
C.5 Project Manager
C.5.1 Responsibilities
Prepare baseline management products
Project Brief
Project Product Description
Benefits Review Plan
Project Initiation Documentation
Stage/Exception Plans and Product Descriptions
Work Packages
Prepare reports
Highlight Reports
Issue Reports
End Stage Reports
Lessons Reports
Exception Reports
End Project Report
Maintain records
Issue Register
Risk Register
Daily Log

Lessons Log
Liaise with corporate/programme management
Liaise with external suppliers/account managers
Lead and motivate project management team
Establish behavioural expectations
Manage information flows
Manage production of products
Establish and manage project procedures
Risk management
Issue and change control
Configuration management
Communication
Establish and manage project controls
Authorize Work Packages
Advise Project Board of deviations
Perform Team Manager role
Perform Project Support role
Implement Configuration Management Strategy
Ensure project personnel comply with Configuration
Management Strategy
Schedule configuration audits
C.5.2 Competencies
Planning
Time management

People management
Problem solving
Attention to detail
Communication
Negotiation
Conflict management
C.6 Team Manager
C.6.1 Responsibilities
Prepare Team Plan
Agree Team Plan with Project Manager
Produce Checkpoint Reports
Plan, monitor and manage team's work
Progress
Resources
Corrective actions
Advise Project Manager
Issues and risks
Deviations
Corrective action
Pass completed products to Project Manager
Liaise with Project Assurance and Project Support
Ensure quality activities are performed correctly
Ensure entries are made in Quality Register

Manage specific issues and risks

Assist Project Manager examine issues and risks
Ensure issues are reported in Issue Register
C.6.2 Competencies
Planning
Time management
People management
Problem solving
Attention to detail
Communication
Negotiation
Conflict management
C.7 Project Assurance
C.7.1 Responsibilities
Ensure that:
Stakeholder liaison is maintained
Risks are controlled
Right people are involved
Product Descriptions
Quality inspection
Staff are trained quality methods
Quality methods are followed
Quality control follow-up actions are dealt with

Acceptable solution is developed

Project scope is not changing unnoticed
Communications are working
Applicable standards are used
Specialist needs are observed
Business assurance responsibilities
Assist Project Manager
Business Case
Benefits Review Plan
Advise on project management team
Advise on Risk Management Strategy
Review Business Case
Verify Business Case
Check project is aligned to corporate/programme strategy
Review project finance
Verify solution is value for money
Check project is viable
Assess risk is within tolerance
Authorize supplier payments
Assess issue/risk impact on Business Case
Constrain excesses
Inform project management team of changes
Monitor progress against tolerances

User assurance responsibilities

Advise on stakeholder engagement
Advise on Communication Management Strategy
Ensure user needs are clear
Ensure solution meets user needs
Advise on impact of changes
Monitor risks to user
Ensure quality control procedures meet user needs
Ensure user liaison is working
Supplier assurance responsibilities
Review Product Descriptions
Advise on Quality Management Strategy
Advise on Configuration Management Strategy
Advise on development strategy, design and methods
Ensure supplier and operating standards are met
Advise on impact of changes
Monitor risks
Ensure quality control procedures are used correctly
C.7.2 Competencies
Represent stakeholders
Credibility
Specialist knowledge
Stay with project

Diplomacy
Thoroughness
Attention to detail
Communication
C.8 Change Authority
C.8.1 Responsibilities
Approve/reject changes and off-specifications
Refer exceptions to Project Board
C.8.2 Competencies
Represent business, user and supplier stakeholders
Credibility
Specialist knowledge
Decision making
Planning
Attention to detail
Problem solving
C.9 Project Support
C.9.1 Responsibilities
Set up and maintain project files
Establish document control procedures
Collect actuals data and forecasts
Update plans
Administer/assist quality review process

Administer/assist Project Board meetings

Help compile reports
Contribute expertise in specialist tools and techniques
Maintain records
Quality Register
Configuration Item Records
Registers/logs
Administer configuration management procedure
Administer products
Receipt
Identification
Versions
Storage
Issue
Provide information on product status
Archive product copies
Secure product master copies
Maintain record of copies issued
Notify holders of changes to copies
Record and distribute Issue Reports
Conduct configuration audits
C.9.2 Competencies
Administration and organization

Knowledge of specialist tools and techniques

Knowledge of corporate/programme standards

23. Appendix D: Product-based planning example

D.1 Scenario
Annual conference
D.2 Example of a Project Product Description
Purpose
Organize annual conference
Composition
Venue
Attendees
Speakers
Publicity
Handouts
Logistics
Derivation
Selected subject matter
Mailing list
Previous lessons and materials
Agreed date
Development skills required
Conference management
Marketing

Public relations
Customer's quality expectations
Networking forum
Expert speakers
Interactive conference
Central location
Acceptance criteria and project-level quality tolerances
Cost
Attendance
Interactive presentations
Approved speakers
Repeat attendance
Location
Acceptance method
Editorial board
Independent assurance
End Project Report
Acceptance responsibilities
Senior User
Executive
D.3 Examples of a product breakdown structure
Hierarchy chart
Mindmap

Indented list
D.4 Example of a Product Description
Identifier
Conference/4.1/version 1.0
Title
Mail-shot
Purpose
Advertise conference
Composition
Mailing envelope
Outline letter
Leaflet
Booking form
Response envelope
Derivation
Mailing list
Agreed programme
Booking arrangements
Venue
Format and presentation
A4 letter
A5 leaflet and booking form
C5 mailing envelope

Development skills required

Marketing
Design
Copywriting
Quality responsibilities
Producer - event management company
Reviewers - marketing team, Conference Project Manager
Approver - membership secretary
Quality criteria
Adheres to corporate identity standards
Reflects agreed details
No spelling/grammatical errors
A4 letter
Quality tolerance
Quality method
PRINCE2 quality review
Inspection
Quality skills required
Marketing team
Conference Project Manager
Proof reader

24. Appendix E: Health check

E.1 Starting up a Project

Have project management team roles been allocated?

Do Project Board members have authority, availability and credibility?
Are project's stakeholders represented by Project Board?
Do roles descriptions exist?
Have appointed people confirmed acceptance?
Has Daily Log been set up?
Has Lessons Log been set up?
Have previous lessons been identified/applied?
Have lessons been sought from similar projects?
Has Project Brief been produced?
Is there an outline Business Case?
Has Project Product Description been produced?
Has project approach been decided?
Is there a Stage Plan for initiation?
E.2 Directing a Project
Authorize initiation
Has Project Brief been approved?
Has initiation Stage Plan been approved?
Have corporate pr programme management been informed?
Authorize project
Has Project Initiation Documentation been approved?
Have corporate pr programme management been informed?
Authorize Stage/Exception Plan

Has End Stage Report been reviewed?

Has overall project viability been assessed?
Has Stage Plan (or Exception Plan) been reviewed?
Have corporate pr programme management been informed?
Give ad hoc direction
Has Project Board responded to Project Manager's requests?
Has Project Board responded to reports?
Has Project Board responded to external influences?
Have corporate pr programme management been informed?
Authorize project closure
Has handover and acceptance been confirmed?
Has End Project Report been approved?
Has Lessons Report been reviewed?
Has the Business Case been confirmed?
Has updated Benefits Review Plan been approved?
Has project closure notification been issued?
E.3 Initiating a Project
Have previous lessons been identified/applied?
Has Risk Management Strategy been defined and documented?
Has Risk Register been set up?
Has Configuration Management Strategy been defined and
documented?
Have Configuration Item Records been set up?
Has Issue Register been set up?

Has Quality Management Strategy been defined and documented?

Has Quality Register been set up?
Has Communication Management Strategy been defined and
documented?
Have project controls been established?
Has Project Plan been created?
Has project management team structure been updated?
Have any new role descriptions been been accepted?
Has detailed Business Case been created?
Has Benefits Review Plan been created?
Has Project Initiation Documentation been assembled?
Subtopic
E.4 Controlling a Stage
Have Work Packages been issued?
Have Team Plans been agreed?
Have products been produced?
Have Configuration Item Records been created/updated?
Has Quality Register been maintained?
Were products handed over for phased delivery?
Has Risk Register been maintained?
Has Issue Register been maintained?
Has Stage Plan been updated with actuals and forecasts?
Has Daily Log been maintained?
Have Checkpoint Reports been received?

Was progress against tolerances checked?

Were exceptions escalated to Project Board?
Were corrective actions logged, implemented and tracked?
Was Business Case checked for ongoing viability?
Were Highlight Reports created and issued?
Do Issue Reports exist for all formal issues?
Do Exception Reports exist for all exceptions?
Has Lessons Log been updated?
E.5 Managing Product Delivery
Did Work Package and Product Description contain sufficient
information?
Has Team Plan been created?
Has Team Plan been updated with actuals and forecasts?
Was progress against tolerances checked?
Were exceptions escalated to Project Manager?
Were Checkpoint Reports issued?
Was Project Manager notified of issues and risks?
Do approval records exist for completed products?
Has Project Support been notified of updates?
Configuration Item Records
Quality Register
Has Project Manager been notified of product delivery?
E.6 Managing a Stage Boundary
Have completed products been approved?

Has Product Status Account been created?

Were any outstanding issued been documented as follow-on action
recommendations?
Has Lessons Log been reviewed and updated?
Has Lessons Report been created?
Has Stage Plan been updated with actuals?
Has Risk Management Strategy been reviewed and updated?
Has Risk Register been reviewed and updated?
Has Configuration Management Strategy been reviewed and updated?
Have Configuration Item Records been reviewed and updated?
Has Issue Register been reviewed and updated?
Has Quality Management Strategy been reviewed and updated?
Has Quality Register been reviewed and updated?
Has Communication Management Strategy been reviewed and
updated?
Have project controls been reviewed and updated?
Has Project Plan been reviewed and updated?
Has project management team structure been reviewed and updated?
Have any new roles descriptions been accepted?
Has Business Case been reviewed and updated?
Has Benefits Review Plan been reviewed and updated?
Has Project Initiation Documentation been reviewed and updated?
Has End Stage Report been produced?
Has End Stage Report been issued to Project Board?

Next Stage
Has Stage Plan for next stage been created?
Have Product Descriptions been created?
Has Project Board been requested to authorize next stage?
Exception
Has Exception Plan been created?
Have Product Descriptions been created?
Has Project Board been requested to authorize Exception Plan?
E.7 Closing a Project
Have all products been completed and approved?
Has Product Status Account been created?
Are all outstanding issues documented as follow-on action
recommendations?
Is there an acceptance record for handover?
Does acceptance record include operational and maintenance
acceptance?
Has Lessons Log been reviewed and Lesson Report created?
Has Project Plan been updated with actuals?
Has Business Case been updated with actuals?
Has Benefits Review Plan been updated with actuals?
Has End Project Report been produced?
Has End Project Report been issued to Project Board?
Has draft closure notification been created for Project Board?
Have all registers and logs been closed?

Has all project documentation been archived?

Floating Topic