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1 PRINCE2 is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries The Swirl logo is a Trade Mark of the Office of Government Commerce 2010 PROJstudy.com. All rights reserved
2 Lesson Objectives Seven PRINCE2 Principles Continued Business Justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailor to suit the project environment Characteristics of Principles Importance of PRINCE2 Principles Definition and Explanation of Principles 2010 study.com. All rights reserved 2
3 The Seven PRINCE2 Principles Continued business justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailor to suit the project environment Characteristics of principles Universal, can be applied to any project Self validating, proven in practice Empowering 2010 PROJstudy.com. All rights reserved 3
4 The PRINCE2 Principles are integral to the PRINCE2 method because: The PRINCE2 principles enable the PRINCE2 method to be applied to any project irrespective of its scale, organization, type, etc. The principles ensure that the PRINCE2 method is applied in a manner that is ideal for a project to succeed. The principles enable the practitioners of PRINCE2 method to control and manage the projects effectively study.com. All rights reserved 4
5 Definition and Explanation of Principles Continued Business Justification A PRINCE2 project must have continued business justification Every project, including compulsory projects, must have business justification to begin with. This will ensure that poorly conceived projects that have no real benefits to the organization are never initiated and that the initiated projects strategies and objectives are aligned with those of the corporate. Justification should be documented in the Business Case The business justification should be documented in the Business Case and monitored during project execution at every key milestone to ensure that the project remains on track and aligned with the business goals throughout the project s life. Justification must remain valid The business justification must remain valid throughout the life of the project. Though the business justification can change it must remain consistent with the project. But if the justification becomes invalid at any point during the life of the project, the project must undergo premature closure PROJstudy.com. All rights reserved 5
6 Learn from Experience Identify and document lessons Learning from experience permeates the PRINCE2 method. At the beginning of the project, lessons from previous similar projects are identified and documented to verify if they could be applied for the benefit of the current project. During project execution, lessons from the current project are documented and verified to determine if they could be applied for the benefit of the current project or any of the future projects that are similar to the current one. At the end of the project, documented lessons are transferred to the centre of excellence or corporate management for use on future projects study.com. All rights reserved 6
7 Defined Roles and Responsibilities A PRINCE2 project will have a specific organization structure that contains agreed roles and responsibilities. All the three primary stakeholders (viz. sponsors, users and suppliers) interests need to be effectively represented in the project management team. Explanation: Projects can be implemented only with the involvement of the people who understand their roles and responsibilities. There should be a well defined reporting system to ensure that the flow of information on all aspects of project execution runs smooth. To ensure this, a PRINCE2 project will have four management levels: Corporate or programme management, Project Board, Project Manager, and Team Manager. The Project Board is vested with the authority to oversee the implementation of the project and is ultimately responsible for the success of the project. The Project Board is so constituted that the three primary stakeholder interests are represented study.com. All rights reserved 7
8 Manage by Stages A PRINCE2 project is planned, monitored and controlled on a stage-bystage basis. Management stages provide control points to senior management. Explanation: For ease of planning, execution and control, PRINCE2 projects are divided into management stages. Each management stage will have a Stage Plan as part of the overall Project Plan. The number of such stages depends on the nature and complexity of the project. But a PRINCE2 project must have minimum of two stages: Initiation stage and the rest of the project PROJstudy.com. All rights reserved 8
9 Manage by Exception A PRINCE2 project has defined tolerances for each project objective to establish limits of delegated authority. Tolerances are set for time, cost, quality, scope, risk and benefits. Explanation: Manage by Exception principle serves the purpose of saving time for top management. This is ensured by delegation of authority to the various levels of management. As part of this delegation, tolerances are set for time, cost, scope, quality, risk, and benefits for each management level. When tolerances are forecast to be exceeded the issues are escalated to the immediately higher management level study.com. All rights reserved 9
10 Focus on Products A PRINCE2 project focuses on the definition and delivery of products particularly, quality requirements Projects are out-put oriented instead of activity oriented Clarity on acceptance criteria of project s products is provided by means of Product Descriptions Explanation: This principle ensures that project s products and their attributes are planned for well in advance and much before the activities for the production of these products are determined. In the absence of such planning, there is scope for acceptance disputes, rework, user dissatisfaction, etc PROJstudy.com. All rights reserved 10
11 Tailor to suit the Project Environment The PRINCE2 method is tailored to suit the project s environment, size, complexity, importance, capability and risk Explanation: PRINCE2 method of project management is tailored to suit the specific requirements of each project. It is important to note that such tailoring is done in respect of every project. If the PRINCE2 method is used across an organization it is said to be a embedded organization. Tailoring benefits project management by reducing the burden and increasing the level of control on the part of the management in the context of external and project factors study.com. All rights reserved 11
12 In this chapter, we have learnt about: Seven PRINCE2 Principles Continued Business Justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailor to suit the project environment Characteristics of Principles Importance of PRINCE2 Principles Definition and Explanation of Principles 2010 study.com. All rights reserved 12
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