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Chapter 5 – Introduction to PRINCE2 themes
5
Introduction to
PRINCE2 themes
This chapter covers:
●what themes are and why they matter
●the seven PRINCE2 themes
●basic concepts about tailoring the themes
●the structure of the themes chapters
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Managing successful projects with PRINCE2 [PDF] 6th ed., 2017, Study notes of Project Management
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Chapter 5 – Introduction to PRINCE2 themes
5
Introduction to
PRINCE2 themes
This chapter covers:
● what themes are and why they matter
● the seven PRINCE2 themes
● basic concepts about tailoring the themes
● the structure of the themes chapters
Chapter 5 – Introduction to PRINCE2 themes
Introduction to
PRINCE2 themes
The PRINCE2 themes describe aspects of project management that must be addressed continually as the project progresses through its lifecycle. For example, the business justification for the project will need to be updated and revalidated throughout the project lifecycle, change will take place and risks will need to be managed. However, the strength of PRINCE2 is the way in which the seven themes are integrated, and this is achieved because of the specific PRINCE2 treatment of each theme (i.e. they are carefully designed to link together effectively). The PRINCE2 processes (see Chapters 13 to 20) address the chronological flow of the project, with actions relating to different themes mixed together. Here, in the theme chapters, the logical thread that runs through each theme is highlighted and more detailed guidance is provided in order to amplify the process activities. Table 5.1 lists the seven PRINCE2 themes and the chapters in which they are described in more detail.
Table 5.1 The seven PRINCE2 themes Theme Description Answers the question Chapter Business case The project starts with an idea which is considered to have potential value for the organization concerned. This theme addresses how the idea is developed into a viable investment proposition for the organization and how project management maintains the focus on the organization’s objectives throughout the project.
Why? 6
Organization The organization commissioning the project needs to allocate the work to managers who will be responsible for it and steer it through to completion. Projects are cross-functional so the normal line function structures are not suitable. This theme describes the roles and responsibilities in the temporary PRINCE2 project management team required to manage the project effectively.
Who? 7
Quality The initial idea will only be understood as a broad outline. This theme explains how the outline is developed so that all participants understand the quality attributes of the products to be delivered and then how project management will ensure that these requirements are subsequently delivered.
What? 8
Plans PRINCE2 projects proceed on the basis of a series of approved plans. This theme complements the quality theme by describing the steps required to develop plans and the PRINCE2 techniques that should be applied. In PRINCE2, the plans are matched to the needs of the personnel at the various levels of the organization. They are the focus for communication and control throughout the project.
How? How much? When?
9
Risk Projects typically entail more risk than stable operational activity. This theme addresses how project management manages uncertainty.
What if? 10
Change This theme describes how project management assesses and acts upon issues which have a potential impact on any of the baseline aspects of the project (its plans and completed products). Issues may be unanticipated general problem s, requests for change or instances of a product not meeting its specification.
What is the impact? 11
Progress This theme addresses the ongoing viability of the plans. The theme explains the decision-making process for approving plans, the monitoring of actual performance and the escalation process if events do not go according to plan. Ultimately, the progress theme determines whether and how the project should proceed.
Where are we now? Where are we going? Should we carry on?
12
6
Business case
This chapter covers:
● creating and maintaining the business justification
● the relationship between outputs, outcomes and benefits
● developing and managing a business case
● PRINCE2’s requirements for the business case theme
● investment appraisal techniques
Chapter 6 – Business case
Business case
6.1 The business case theme
Key message
The purpose of the business case theme is to establish mechanisms to judge whether the project is (and remains) desirable, viable and achievable as a means to support decision-making in its (continued) investment.
Organizations undertake projects because they want to make measurable improvements in one or more aspects of their business. These measurable improvements are called benefits.
Tip
Measurable improvements (benefits) also apply to projects that deliver outputs to satisfy regulatory requirements. Not delivering the output could have a detrimental effect on the organization and a measurable cost.
PRINCE2 projects deliver outputs in the form of products, the use of which results in changes in the business. These changes create outcomes. The outcomes allow the business to realize the benefits that are set out in the business justification for the project. Outcomes that are perceived as negative by one or more stakeholders are called dis-benefit s.
Examples of output, outcome and benefits
● Output New sales system ● Outcome Sales orders are processed more quickly and accurately ● Benefits Costs are reduced by 10 per cent, volume of sales orders increased by 15 per cent and revenue increased by 10 per cent annually.
Managing Successful Projects with PRINCE2®
Chapter 6 – Business case
PRINCE2’s requirements for the business
case theme
To be following PRINCE2, a project must, as a minimum: ● create and maintain a business justification for the project; usually a business case (PRINCE2’s continued business justification principle) ● review and update the business justification in response to decisions and events that might impact desirability, viability or achievability of the project (PRINCE2’s continued business justification principle) ● define the management actions that will be put in place to ensure that the project’s outcomes are achieved and confirm that the project’s benefits are realized (PRINCE2’s continued business justification principle) ● define and document the roles and responsibilities for the business case and benefits management (PRINCE2’s defined roles and responsibilities principle).
PRINCE2 requires that two products are produced and maintained for the business case theme: ● Business case Provides the costs, benefits, expected dis-benefits, risks and timescales against which viability is justified and continuing viability is tested. It is acceptable to use an alternative document such as a corporate business plan to replace the business case for part of the project lifecycle. ● Benefits management approach Defines the management actions that will be put in place to ensure that the project’s outcomes are achieved and confirm that the project’s benefits are realized.
In PRINCE2 the business case is developed at the beginning of the project. Throughout the life of the project the business case is reviewed and updated as it develops and evolves (see Figure 6.2). It is formally verified by the project board at each key decision point, such as at stage boundaries, and confirmed throughout the period that benefits accrue.
Tip
The business case theme is central to PRINCE2 projects as it is at the heart of why a project is being done. PRINCE2 does not define what techniques to use to demonstrate or prove that a project is viable, only that it should be done. Such techniques are often prescribed within organizations, either formally or through custom and practice.
Chapter 7 – Organization
7
Organization
This chapter covers:
● the key roles for an effective organization
● the four levels of project management
● the difference between PRINCE2 roles and job titles
● the importance of stakeholders and communication
● PRINCE2’s requirements for the organization theme
● guidance for effective project organization
Managing Successful Projects with PRINCE2®
Chapter 7 – Organization
7.2 (^) PRINCE2’s requirements for the organization theme
To be following PRINCE2, a project must, as a minimum: ● define its organization structure and roles. This must minimally ensure that all of the responsibilities in PRINCE2’s role descriptions are fulfilled (PRINCE2’s defined roles and responsibilities principle) ● document the rules for delegating change authority responsibilities, if required ● define its approach to communicating and engaging with stakeholders.
PRINCE2 requires that two products are produced and maintained for the organization theme: ● PID In the context of the organization theme, this provides the single source of reference for how the project is to be managed. The PID sets out the project management team structure and roles. ● Communication management approach This describes the means and frequency of communication to stakeholders both internal and external to the project.
Both these products should be created during the initiating a project process. Appendix A (sections A.5 and A.20) provides product descriptions and suggested content for these products.
7.2.1 PRINCE2’s mandated project management team roles
PRINCE2 mandates that certain project roles are fulfilled on every project. As noted below, the roles may be combined within certain limits. Figure 7.3 shows the mandated roles within an illustrative project team structure. Even though the project roles are mandated, the structure is not and is provided only as an example. Appendix C provides details of these roles and their associated responsibilities. For a specific project these role descriptions should be tailored and supplemented to include information that specifies the responsibilities, goals, limits of authority, relationships, skills, knowledge and experience required. PRINCE2 uses the term ‘project team’ to cover the project management team and everyone else working on the project.
7.2.1.1 Project board
All PRINCE2 projects must have a project board. The project board has authority and responsibility for the project within the instructions (initially contained in the project mandate) set by corporate, programme management or the customer. The roles and responsibilities of the project board are described in Appendix C, section C.1. They include: ● being accountable to the business, user and supplier interests for the success or failure of the project ● providing unified direction to the project ● delegating, using the PRINCE2 organizational structure and controls designed for this purpose ● facilitating integration of the project management team with the functional units of the participating corporate, programme management or customer organizations ● providing the resources and authorizing the funds necessary for the successful completion of the project ● effective decision-making ● providing visible and sustained support for the project manager ● ensuring effective communication both within the project team and with external stakeholders.
Section not required for pre-course reading
8
Quality
This chapter covers:
● what quality means in a product-focused method
● customer quality expectations and acceptance criteria
● who is responsible for quality
● the difference between quality assurance and project assurance
● PRINCE2’s requirements for the quality theme
● guidance for effective quality management
● a recommended quality review technique
Chapter 8 – Quality
PRINCE2’s focus on products principle is central to its approach to quality. PRINCE2 requires systematic activities to:
● explicitly agree the customer’s quality expectations and acceptance criteria for the project product
● identify the project’s products (i.e. to the level at which the project intends to exert control)
● define the project product and its components in product descriptions, including the quality criteria by which they will be assessed, the quality methods to be used in designing, developing and approving them, and the quality responsibilities of those involved
● implement and track the quality methods employed throughout the project.
Definition: Customer’s quality expectations
A statement about the quality expected from the project product, captured in the project product description.
Definition: Acceptance criteria
A prioritized list of criteria that the project product must meet before the customer will accept it (i.e. measurable definitions of the attributes required for the set of products to be acceptable to key stakeholders).
Definition: Quality criteria
A description of the quality specification that the product must meet, and the quality measurements that will be applied by those inspecting the finished product.
8.1.1 Quality planning and control
PRINCE2 explicitly addresses the two activities of quality planning and quality control.
Quality planning is about defining the project product and its components, with the respective quality criteria, quality methods (including effort required for quality control and product approval) and quality responsibilities of those involved. The purpose of quality planning is to provide a secure basis:
● to obtain agreement by the project board on the overall quality expectations, the products required with their associated quality criteria (including corporate and other standards to be observed), the means by which quality will be achieved and assessed and, ultimately, the acceptance criteria by which the project product will be judged
Section not required for pre-course reading
Managing Successful Projects with PRINCE2®
Chapter 8 – Quality
● to communicate these agreements unambiguously so that all the project stakeholders have a common understanding of what the project is setting out to achieve ● for control (i.e. establishing an effective baseline for the project’s quality controls, including the quality tolerances) and a secure means of achieving products that are fit for purpose.
When these aspects of planning are neglected, the people involved in the project may have conflicting views on: ● the scope of the solution ● what constitutes a successful result ● the approach to be adopted ● the extent of the work required ● who should be involved ● what their roles should be.
Quality control focuses on the operational techniques and activities used by those involved in the project to: ● check that the products meet their quality criteria (e.g. by quality inspections, testing or review) ● identify ways of eliminating causes of unsatisfactory performance (e.g. by introducing process improvements as a result of previous lessons).
Quality control is achieved by implementing, monitoring and recording the quality methods and responsibilities defined in the quality management approach and product descriptions (and subsequently agreed to in work packages). The relationship between products, quality planning and quality control is summarized in Figure 8.1. It is important not to confuse quality assurance with project assurance: ● Quality assurance is a planned and systematic process which provides confidence that outputs will meet their defined quality criteria when tested under quality control. It is carried out independently of the project team. The process must comply with relevant corporate, programme management or customer standards and policies. ● Project assurance is the project board’s responsibility to assure itself that the project is being conducted correctly. The project board members each have a specific area of focus for project assurance, namely business assurance for the executive, user assurance for the senior user(s) and supplier assurance for the senior supplier(s). Project assurance is therefore independent of the project manager but not independent of the project.
8.2 PRINCE2’s requirements for the quality theme
To be following PRINCE2, a project must, as a minimum: ● define its quality management approach. This approach must minimally cover: ● the project’s approach to quality control ● the project’s approach to project assurance ● how the management of quality is communicated throughout the project lifecycle ● the roles and responsibilities for quality management (PRINCE2’s defined roles and responsibilities principle) ● specify explicit quality criteria for products in their product descriptions (PRINCE2’s focus on products principle)
Section not required for pre-course reading
Chapter 9 – Plans
9
Plans
This chapter covers:
● the role of planning in effective project management
● different types of plan
● product-based planning
● prioritization, estimation and scheduling
● PRINCE2’s requirements for the plans theme
● guidance for effective planning
Chapter 9 – Plans
Plans
9.1 The plans theme
Key message
The purpose of the plans theme is to facilitate communication and control by defining the means of delivering the products (the where and how, by whom, and estimating the when and how much).
9.1.1 Plans to enable control
Plans provide the backbone of the management information required for any project; without a plan there can be no control. Many people think of a plan as just being a chart showing timescales. PRINCE2 takes both a more comprehensive and a more flexible view of plans. A PRINCE2 plan must describe not only timescales but also what will be delivered, how and by whom. Poorly planned projects cause frustration, waste and rework. It is therefore essential to allocate sufficient time for planning to take place.
Definition: Plan
A detailed proposal for doing or achieving something which specifies the what, when, how and by whom it will be achieved. In PRINCE2 there are only the following types of plan: project plan, stage plan, team plan and exception plan.
A plan enables the project team to understand: ● what products need to be delivered ● the risks; both opportunities and threats ● any issues with the definition of scope ● which people, specialist equipment and resources are needed
Plans
Chapter 9 – Plans
● identifying products that are external to the plan’s scope but are necessary for it to proceed, and allocating them to other projects or organizations
● preparing the way for the production of work packages for suppliers
● gaining a clear agreement on production, review and approval responsibilities.
9.2 PRINCE2’s requirements for the plans theme
To be following PRINCE2, a project must, as a minimum:
● ensure that plans enable the business case to be realized (PRINCE2’s continued business justification principle)
● have at least two management stages: an initiation stage and at least one further management stage. The more complex and risky a project, the more management stages that will be required (PRINCE2’s manage by stages principle)
● produce a project plan for the project as a whole and a stage plan for each management stage (PRINCE2’s manage by stages principle)
● use product-based planning for the project plan, stage plans and exception plans. It may be optionally used for team plans. PRINCE2 recommends the steps shown in Figure 9.2 for product-based planning although alternative approaches may be used. PRINCE2 recommends the steps shown in Figure 9.6 for defining and analysing the products to produce a product breakdown structure, although alternative approaches may be used
● produce specific plans for managing exceptions (PRINCE2’s manage by exception principle)
● define the roles and responsibilities for planning (PRINCE2’s defined roles and responsibilities principle)
● use lessons to inform planning (PRINCE2’s learn from experience principle).
Key message
PRINCE2 requires a product-oriented approach to decomposing the project product description into a product breakdown structure or a product-oriented work breakdown structure. Where an agile delivery approach is being used, the product breakdown structure could be represented by epics or user stories.
PRINCE2 requires that four products are produced and maintained:
● Project product description A description of the overall project’s output, including the customer’s quality expectations, together with the acceptance criteria and acceptance methods for the project. As such it applies to a project plan only.
● Product description A description of each product’s purpose, composition, derivation and quality criteria.
● Product breakdown structure A hierarchy of all the products to be produced during a plan.
● Plan Provides a statement of how and when objectives are to be achieved, by showing the major products, activities and resources required for the scope of the plan. In PRINCE2, there are three levels of plan: project, stage and team. In addition, PRINCE2 has exception plans, which are created at the same level as the plan they are replacing.
Section not required for pre-course reading
10
Risk