Introduction To PRINCE2

The #1 introduction book to PRINCE2
An Introduction to PRINCE2
The best possible introduction to PRINCE2

By Frank Turley
The PRINCE2 Guy
version 1.5
PRINCE2 is a registered trademark of AXELOS Limited

The Swirl logo is a trademark of AXELOS Limited.
ii
Introduction to PRINCE2
Thank you for downloading this book and for your interest in PRINCE2. The main objective of this
book is to provide a logical and easy-to-understand introduction to PRINCE2. The idea for this
book came from the questions I received from people trying to learn PRINCE2 and after reading
the PRINCE2 manual.
The PRINCE2 manual for the Project Manager is an excellent reference manual, but can be rather
difficult to pick up and read if you are both new to project management and to PRINCE2.
So this book is meant to be an easy introduction to PRINCE2, as it is quickly becoming the most
read book on PRINCE2 2009.
The information in this book is also available in other formats, such as Computer-Based Training
(CBT) and Podcast so you can watch or listen.
Test your knowledge: You can also download a Q&A podcast, which asks questions based on
the information in this introduction book. It then gives a beep signal so you can pause and think
about the question and when ready, then click Play to compare your answers. This is a great way
to improve your knowledge, as further information can also be provided and this is also why we
call this podcast Learn Thru Questions.
After reading this book you can join use the PRINCE2 Online Foundation Course and you can
also choose to take the PRINCE2 Foundation Exam.
PRINCE2 is a registered trademark of AXELOS Limited.

The Swirl logo is a trademark of AXELOS Limited.
Acknowledgements
By Frank Turley
Copyright 2013 Frank Turley
Expert Reviewer:
Expert Reviewer
Eralp Tezcan
Nader K Rad
Management Plaza
LinkedIn
LinkedIn
PRINCE2 Introduction
iii
Distribution Copyright
This book has been provided to you free of charge on the condition that it is not copied, modified,
published, sold, rebranded, hired out, or otherwise distributed for commercial purposes. Please
feel free to give it as a present
About the Author

Frank Turley (The PRINCE2 Coach) has been a Project Manager for
more than 15 years and a PRINCE2 Practitioner.
You can contact Frank at:
E-mail: frank.turley@mplaza.pm
LinkedIn www.linkedin.com/in/frankturley
Frank is also a PRINCE2 & PM trainer and coach and has created the
following training material for or PRINCE2:
1) PRINCE2 Introduce Course
Introduction to PRINCE2 Video
Introduction to PRINCE2 Podcast
Introduction to PRINCE2 PDF (this book)
Introduction to PRINCE2 Q&A
2) The PRINCE2 Foundation Online Course
3) The PRINCE2 Foundation Training Manual
4) The PRINCE2 Foundation Q&A Workbook
5) The PRINCE2 Practitioner Training Manual
6) The PRINCE2 Practitioner Audio Course
7) The PRINCE2 Product Map Diagram
8) The PRINCE2 Timeline Diagram
In-House / Webinar PRINCE2 Training

Contact Frank if you are interested in In-House PRINCE2 training in your organization
Online PRINCE2 courses:
PRINCE2 email course FREE

PRINCE2 Introduction course FREE
PRINCE2 Foundation online course
PRINCE2 Practitioner online course
Self Study Guides

These are two short Self Study guides that we have created
The PRINCE2 Foundation Study Guide
The PRINCE2 Practitioner Study Guide
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Link
Link
iv
PRINCE2 Exam Online

You can now buy your PRINCE2 exam from Management Plaza and then sit the exam at any of
the APMG open exam centres in the UK or you can also take the exam online.
See our Exam FAQ page for more information
Management Plaza can help you order and book your AXELOS exam
PRINCE2 Foundation Exam
PRINCE2 Practitioner Exam,
How do online exams work: This link wil provide you with an overview of how you can take the
exam online from your home or office
Free PRINCE2 Self Study for your organization

Management Plaza offers both the PRINCE2 Foundation and Practitioner online courses (and
other PRINCE2 material) to organizations that invest in project management knowledge. For
more information on this, contact frank.turley@mplaza.pm or +32 477 588 618.
Management Plaza
PRINCE2 Foundation online course

Pre-Course FREE
PRINCE2 Pre-Course / PRINCE2 Introduction
Introduction to PRINCE2: Video, Book, Audio and Q&A
This is by far the best possible introduction to PRINCE2
PRINCE2 Foundation Online Course

1) The PRINCE2 Foundation Training Manual
This is the #1 PRINCE2 Foundation Training Manual
Only PRINCE2 manual that is focused on the Foundation Syllabus
2) The PRINCE2 Q&A Workbook
This workbook will guarantee that you pass the Foundation Exam
This provides sample questions on each chapter in the Foundation Training Manual
4) The PRINCE2 Foundation Video Course
A complete PRINCE2 Foundation training Video available
Watch online or download to your SmartPhone or tablet
5) Practice online Foundation questions
Do the online practice questions (there are more than 120)
Practice by Theme, Process, Random and learn from answers
6) Extra 320 Sample Foundation Questions (Audio / Paper)
Use our Learn PRINCE2 Thru Questions course
Available in paper (PDF) or Audio formats (learn while driving)
What is unique about our PRINCE2 Foundation online course?
The focus is on learning PRINCE2 rather than just passing the exam
Use examples to help explain new topics (much easier to understand)
Provide best Introduction course to PRINCE2
Only course that provides an Introduction in Video, Audio & PDF formats
Only course to include a Foundation Training Manual
Only course to include a Q&A Workbook
Only course that provides an audio course with > 320 questions & answers
Video course can be downloaded to Smartphone, tablet or PC
Training material can be used after the exam to support the PMs day to day work
PRINCE2 Support via email
You can contact me at frank@mplaza.pm with any questions while you are studying for
your PRINCE2 exam and I will reply within 24 hours.
Management Plaza
vi
PRINCE2 Practitioner Self Study Course

Link to our PRINCE2 Practitioner online course
1) The PRINCE2 Pre-Course / Introduction to PRINCE2
Introduction to PRINCE2: Video, Book, Audio and Q&A
This is by far the best possible introduction to PRINCE2
2) The PRINCE2 Practitioner Training Manual
This practitioner manual cover the complete practitioner syllabus
It also includes lots of examples document which makes it easy to understand
3) The PRINCE2 Practitioner Audio Course
This practitioner audio covers the complete practitioner syllabus
You can learn PRINCE2 while driving to and from work
4) The PRINCE2 Learn Thru Questions course
This a set of 550 Q&A which cover the complete practitioner syllabus
These Q&A are available in Audio and PDF formats
5) Practice Practitioner Exams
All other PRINCE2 training companies offer just two practice exams
We offer four PRINCE2 Practice Exams
6) Tips on taking the Practitioner Exam
Tips on how to use the manual during the exam and get another 10%
Tips on how to read the project scenario
7) Sample PRINCE2 Project (FREE version)
This is where we document a sample PRINCE2 project
This shows the majority of PRINCE2 documents for a PRINCE2 project
What is unique about our PRINCE2 Practitioner Self Study course?
The focus is on learning PRINCE2 rather than just passing the exam
Use examples to help explain new topics (much easier to understand)
Only course to provide a Video Course to revise the PRINCE2 Foundation course.
Only course to provide a Practitioner Training Manual
Only course to provide a Practitioner Audio Course
60% extra sample question than on a normal PRINCE2 classroom training
Only course to provide a sample project documents
Approx. 300% extra sample project documents in this course
Only course that provides an audio Q&A course ( > 500 questions
Only course that allows to be downloaded to smartphone, tablet or PC
Training material can be used after the exam to support the PMs day to day work
PRINCE2 Support via email
You can contact me at frank@mplaza.pm with any questions while you are studying for
your PRINCE2 exam and I will reply within 24 hours.
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vii
Table of Contents
Introduction to PRINCE2 ................................................................................................................ ii
Acknowledgements ........................................................................................................................ ii
Distribution Copyright .................................................................................................................... iii
About the Author ........................................................................................................................... iii
Online PRINCE2 courses: ............................................................................................................. iii
Self Study Guides .......................................................................................................................... iii
1
An Introduction to PRINCE2 ................................................................................................... 1

1.1
Course Objectives Classroom Preparation Course ..................................................... 1
1.2
Course Contents .............................................................................................................. 1
1.3
Organization .................................................................................................................... 1
1.3.1
Project Organization Introduction ............................................................................. 1
1.3.2
What is a Programme? ............................................................................................ 2
1.4
Organization Roles .......................................................................................................... 2
1.4.1
The Executive Role .................................................................................................. 2
1.4.2
The Senior User Role ............................................................................................... 3
1.4.3
The Senior Supplier Role ......................................................................................... 3
1.4.4
The Project Manager Role ....................................................................................... 3
1.4.5
The Team Manager Role ......................................................................................... 3
The PRINCE2 Process Model Diagram .................................................................................. 4

2.1
Process Model Diagram Introduction .............................................................................. 4
2.2
Process Model Using Color ............................................................................................. 4
2.3
Four Management Levels ................................................................................................ 5
2.4
Process Model Processes ............................................................................................ 5
2.5
Exercise Diagram ............................................................................................................ 6
The PRINCE2 Process Model ................................................................................................ 7

3.1
Pre-Project / Project Mandate ......................................................................................... 7
3.2
Project Mandate Contents ............................................................................................... 7
3.3
SU: Starting Up a Project ................................................................................................ 8
3.3.1
Starting Up a Project: Two main deliverables .......................................................... 8
3.3.2
Starting Up a Project Activities ................................................................................. 8
3.4
SU: Project Approach ...................................................................................................... 9
3.5
SU: Assemble Project Brief ........................................................................................... 10
3.6
SU: Plan the Initiation Stage.......................................................................................... 11
3.6.1
Plan the Initiation Stage Tasks............................................................................... 11
3.6.2
Request to Initiate a Project ................................................................................... 12
3.6.3
DP: Authorize initiation ........................................................................................... 12
3.7
IP: Initiation Stage ......................................................................................................... 13
3.7.1
Initiating a Project Process introduction ................................................................. 13
3.7.2
Initiating a Project Process 8 Activities ............................................................... 14
3.8
IP: Project Initiation Documentation (PID) ..................................................................... 15
3.8.1
Project Initiation Documentation ............................................................................ 15
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viii
3.8.2
3.9
SB: Managing a Stage Boundary after the Initiation Stage ........................................... 16
3.10
DP: Authorize the project............................................................................................. 17
3.11
CS: Controlling a Stage ............................................................................................... 18
3.12
CS: Controlling a Stage / Managing Product Delivery ................................................ 19
3.12.1
Assign Work to Teams using Work Packages ..................................................... 19
3.12.2
Managing Product Delivery Objectives ................................................................ 19
3.13
MP: Managing Product Delivery: Outputs ................................................................... 19
3.14
CS: Controlling a Stage Give ad hoc direction ......................................................... 20
3.15
CS: Project Manager Day to day activities .................................................................. 21
3.16
SB: Managing a Stage Boundary ................................................................................ 22
3.16.1
Managing a Stage Boundary and Objectives....................................................... 22
3.16.2
Managing a Stage Boundary Outputs .................................................................. 23
3.17
Authorize a Stage or Exception plan .................................................................... 24
3.17.2
Exception Plans - Authorize a Stage or Exception Plan Activity.......................... 24
3.17.3
Last Controlling a Stage Process ......................................................................... 25
CP: Closing a Project: Introduction and Objectives .................................................... 25
3.18.1
Closing a Project and Premature Close ............................................................... 25
3.18.2
Closing a Project Objectives ................................................................................ 25
3.19
CP: Closing a Project Outputs ..................................................................................... 26
3.19.1
Closing a Project Outputs .................................................................................... 26
3.19.2
Last actions for Project Manager in Closing a Project ......................................... 27
3.20
DP: Authorize a Stage or Exception Plan .................................................................... 24
3.17.1
3.18
Project Initiation Documentation Contents ............................................................. 15
DP: Authorize project closure ...................................................................................... 27
3.20.1
Project Board activities in Authorize project closure ......................................... 27
3.20.2
Authorize project closure activity outputs .......................................................... 27
Summary ............................................................................................................................... 29
4.1
Course Summary........................................................................................................... 29
4.2
The PRINCE2 Product Map .......................................................................................... 30
Learn Thru Questions ........................................................................................................... 31

5.1
Introduction .................................................................................................................... 31
5.2
About Learn Thru Questions ......................................................................................... 31
5.3
The Process Model Learn Thru Questions .................................................................... 32
Appendix A .................................................................................................................................. 41
Appendix B .................................................................................................................................. 42
Simple Glossary ...................................................................................................................... 42
Management Plaza
1 An Introduction to PRINCE2
1.1 Course Objectives Classroom Preparation Course
The main objective of this course is to provide an overview of the PRINCE2 Process Model.
The PRINCE2 manual is excellent and describes each element of PRINCE2 in great detail. It is easy
to read and it is also a very good reference manual. Also, the PDF version is easier to search for
desired subjects.
The majority of people who start to study PRINCE2 by first reading the PRINCE2 manual have the
following feedback. They would like to understand:
The normal path of a project

How a project begins and the steps until the project closes
How all the processes fit together and how the outputs from one process are the inputs to
another
This course therefore provides a high-level overview of PRINCE2 using the Process Model. It is
possibly the best introduction to PRINCE2, as you will be able to follow the path of a typical project
and revise your knowledge of PRINCE2, for example, by drawing the Process Model diagram and
explaining it in your own words.
I have included some exercise sheets (see our website) so you can practice drawing the PRINCE2
Process Model and filling in the missing information. Once you are able to draw the complete model,
then you will have an excellent grounding in PRINCE2 and will find it much easier to take the
Foundation or Practitioner courses.
1.2 Course Contents

This book is also available in a podcast format, which takes about 60 minutes to download. This book
covers the following points:
The trigger to start a project

The steps when starting a project and who does what
Which documents are required
When certain documents are created and by whom
An overview of the major roles in the project
How the project moves from startup, to initiation, to stages until the project is closed
The typical inputs and outputs for each process
How the project board controls the project
1.3 Organization
1.3.1 Project Organization Introduction
Before we start the Process Model Introduction, it is necessary to take a brief look at the Project
Organization. As these terms are used during the rest of this course.
This is a very simple overview and the diagram shows the four levels of a Project Management
Structure (also called Project Organization).
The Project Management Team has just three levels. The top level is the Project Board level and
the lower level is the Team Manager level. The project team is a temporary structure; it is created for
the project and is disbanded once the project is completed.
Management Plaza
PRINCE2 Introduction by Frank Turley
Senior
User
Executive
Senior
Supplier
Project Manager
Team Manager
Four Levels of Management
Project Board
Project Management Team
Corp / Programme Management
Fig 1.1 Project Management Structure / Project Organization
At the top of the Project Management Structure, you have the Corporate or Programme Management
Level. This level is outside the project, so they do not participate in the project and therefore they are
not a part of the project team. More and more companies now have PMO's, which stands for
Programme Management Office, and can also have other names like Programme Office and Project
Office.
The Project Board is responsible for the success of the project and has the necessary authority to
take decisions and approve all major plans for the project. They approve the completion of each
stage and authorize the start of the next. We refer to this as Directing a Project.
1.3.2 What is a Programme?

A programme is a temporary flexible organization structure created to coordinate, direct and oversee
the implementation of a set of related projects and activities in order to deliver outcomes and
benefits related to the organization's strategic objectives.
That is what you call a long definition, so a simpler way to think of this is:
a programme is a group of related projects in an organization

If there is no programme in place, Corporate Management will be the top layer. This is the term that
PRINCE2 uses to refer to a higher level of management in a company.
1.4 Organization Roles

The Project Board has three Roles, which are: The Executive, The Senior User and The Senior
Supplier.
1.4.1 The Executive Role

The Executive is the main person responsible for the project, and is supported by the Senior User
and Senior Supplier. The Executive represents the business interests of the project and owns the
business case. The role of the Executive gives a single point of accountability for the project.
Usually the Executive is responsible for designing and appointing the project management team,
including the rest of the Project Board and Project Manager.
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Project Board
Senior
User
Executive
Senior
Supplier
Project Manager
Team Manager
Fig 1.2 The Project Management Team
1.4.2 The Senior User Role

The Senior User represents the user interests and is responsible for the specification. They specify
the needs of the users and check that the final products meet the required specification. Their main
concern throughout the project is Will it work?
The Senior User also specifies the expected benefits at the start of the project and reports to the
project board on the benefits that are being realized during the project.
1.4.3 The Senior Supplier Role

The Senior Supplier represents the interests of those designing, developing, facilitating and
implementing the projects products. Their main concern throughout the project is Can it be done?
and whether it can be done within the agreed time, cost and quality requirements.
1.4.4 The Project Manager Role

The Project Manager is appointed by the Executive with approval from Corporate or Project
Management. The Project Manager runs the project on behalf of the Project Board on a day-to-day
basis and has the responsibility to produce the required products to the required quality within the
specified time and cost.
There are many different facets to the role of project management, such as Communication in fact,
it is estimated that more than 70% of a project managers time is spent on Communication, but also
on Cost Management, Quality, Product Status, Changes, User Needs, Monitoring and Planning.
1.4.5 The Team Manager Role

The Team Manager has the responsibility to produce the products that were assigned in work
packages by the Project Manager, and to provide regular status reports on their progress. This allows
the Project Manager to monitor their work. The Team Managers create their own team plans to
manage the development of the assigned products.
For small projects, the Team Manager may not be required, so the team members will report directly
to the Project Manager
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2 The PRINCE2 Process Model Diagram

2.1 Process Model Diagram Introduction
There is a lot of information in the Process Model diagram, so I dont want to show it yet but first
allow you to see it build up in front of you. This course will explain the different parts of the process
model and guide you through it step by step, starting with the Project Mandate document and
ending with the Closing a Project process.
Corp..
I suggest that you print out the full PRINCE2 Process Model diagram in color (A4 landscape) and
refer to it while reading this book. You can download the PRINCE2 Process Model diagram from our
website.
Direction
By Frank Turley
Management-Plaza.com
Corporate or Programme Management
project
mandate
Pre-Project
Initiating a
Project (IP)
Controlling a Stage (CS)
______________
________________
(SB) Managing a
Stage Boundary
_______________
1______________
2______________
or _____________
_______________
2 Proceed
Auth.
_____________
____________
____________
Next
Stage
Plan
Auth. project
closure
Give ad hoc
direction
_________________.
_________________
_________________
__________________.
Authorize a Stage
or Exception Plan
Authorize
the project
_____________
______________
_____________
Authorize
initiation
______________
________________
Starting up a Project (SU)
Management
Directing a Project (DP)
Closing a
project (CP)
Delivery
New WP
-- Once during project
-- Once per stage
-- Many times during stage
-- Once per Work Package
Notification -- Notification/Authorization
Mgmt Prod -- Management Product
Work Package
Work Package
Accept a WP
Work Package
Completed WP
Managing Product Delivery (MP)
MP Outputs
_________________
_________________
_________________
Fig 2.1 The PRINCE2 Process Model 7 processes
2.2 Process Model Using Color

Due to the way the Process Model is normally shown, it is difficult to see that some processes are
executed more than once. This just makes learning PRINCE2 more difficult as you try to identify the
relationship between the processes.
I have therefore used colors to make this easier to understand:
Blue items
All blue items are executed once in a project.

e.g.: Starting up the Project, Initiating a Project, creating the Project Initiation Documents,
creating a Project Plan and Closing the Project.
Green items
All green items are executed once for each stage.

You can see from the diagram that Controlling a Stage and Managing Stage Boundaries
work together. So if a project has four stages after start-up, then the items in green are
executed four times.
There is just one exception that happens at the end of the final stage after all products have
been delivered. The Closing a Project process follows the Controlling a Stage process, so
Managing a Stage Boundary is not done at the very end of the final stage of a project.
Orange items:
Management Plaza
Orange items can be executed multiple times in a stage.

e.g.: A highlight report can be sent each week during a stage by the Project Manager to the
Project Board. And the Project Board can give Guidance and Instructions to the Project
Manager at any time.
Dark Red items
Dark Red items can be implemented multiple-times during a stage, as the Project Manager
can give work packages to a number of Team Managers.
A Team Plan can be created for each Work Package.
Dont worry if you dont understand all these terms now, they will be explained in detail later.
2.3 Four Management Levels

The Process Model shows four Management Levels.
Level 1: Corporate or Programme Management
The top level is the Corporate or Programme Management Level. You can see from the diagram
that the only thing created in this level is the project mandate.
Level 2: Direction
The Direction or Directing Level is where the Project Board works. They interface often with the
Management Level and provide the above level with a number of notifications. There are three
notifications shown in the process model diagram.
Level 3: Management
The next level is Management and it is where the Project Manager works. It contains most of the
activities and processes, such as Initiating a Project and Controlling a Stage. So you can see from
this diagram that most of the management activities for a project are done by the Project Manager.
Level 4: Delivery
The bottom level, Delivery, is where the projects products are created. Remember. all the products
created above the Delivery level are created just to manage the project. e.g.: Project Plan, Project
Brief. These are also known as management products.
All the products created in the Delivery level by the teams are the products users want from the
project. These products are the reason why the project was started. These are known as specialist
products.
2.4 Process Model Processes

This is a simpler view of the Process Model diagram from the point of view of the 7 processes
Pre-project
Initiation
stage
Directing
Subsequent
delivery stages (s)
Final delivery
stage
Directing a Project
SU
SB
SB
CP
Managing
IP
Delivering
Controlling a Stage
Controlling a Stage
Managing
Product Delivery
Managing
Product Delivery
Based on OGC PRINCE2 material. Reproduced under license from OGC
Fig 2.2 PRINCE2 Processes

This process is for Senior Management and this course will show how the senior
management controls the project.
Management Plaza
Start Up a Project (SU)

This is a very short pre-project process that gathers the necessary data to start the project.
Initiating a Project (IP)
This process examines the justification of the project and creates the Project Initiation
documents, which include the Project Plan.
This process describes the Project Managers day-to-day monitoring and control activities.
This is where the Project Manager spends most of their time during a project.
Managing a Stage Boundary (SB)
This process provides a controlled way to complete a stage and plan the next one.
This process delivers the products. It is where the products (Specific Products) that the
users will use get produced by the team members.
Closing a Project (CP)
This process confirms delivery of the products and the Project Manager prepares the project
for closure.
2.5 Exercise Diagram
By Frank Turley
______
_______
_________
_________
__________
__________
__________
__________
Pre-Project
___________
______ (__)
__________________________ (__)
_________________.
_________________
_________________
__________________.
______________
________________
_____________
_____________
_______________
Next
Stage
Plan
1______________
2______________
or _____________
__________
_______
____ __ ___
_________
_______________
_______ _ _____
__ ______ ____
2 Proceed
Auth.
_____________
____________
____________
________
__ ______
_____________
______________
_____________
________
________
______________
________________
(SU) (__)
a Project
Starting up__
_ _______
________
Management
Direction
Corp..
This book provides information on a number of exercise sheets (see Appendix A for more
information) that you can use to test your knowledge during and at the end of the course. You can
download these exercise sheets separately from our website (link). Our objective with these
exercises is to get you to draw the Process Model diagram.
_________
_______ (__)
Delivery
New WP
-- Once per stage
Work Package
____________
Work Package
______________
Accept a WP
_____________________ (__)
MP Outputs
_________________
_________________
_________________
Fig 2.3 Exercise Sheet
If you can draw 66% of this diagram and are able to fill in both the notifications and products, then
you will be able to answer many of questions in both the Foundation and Practitioner Exam.
This is also a good exercise to do before an exam, to refresh your knowledge of PRINCE2, at an
interview, to introduce how PRINCE2 works to another person.
Management Plaza
3 The PRINCE2 Process Model

3.1 Pre-Project / Project Mandate
We will start by looking at what happens before the project begins.
A project mandate comes from a senior person in the organization. It may be referred to as a Project
Request or a Project Proposal, but the PRINCE2 name is Project Mandate.
As you can see from the diagram, the project mandate provides the input to the process Starting
up a Project and is created before the project starts. In fact, the project mandate provides the
trigger to start the project.
Sometimes a project mandate can be just a command, an email or a memo, but it should eventually
become a structured document and contain the necessary information to help start the Project.
Corp..
If the project is part of a programme, then the majority of the preparation work that would normally
done in the Starting up a Project process will most likely be supplied by the programme. So the
Starting up a Project process would be even shorter in a programme environment.
By Frank Turley
Management
Direction
project
mandate
A project mandate is created

Project mandate is created outside the project
Can be a 1 page memo to a 10 page document
Project mandate is the name given to any information ...
Project mandate is the trigger for the project
Delivery
Pre-Project
Fig 3.1 Project mandate
3.2 Project Mandate Contents

The project mandate can have a number of formats; it can be just a command, a one-page memo or
a ten-page document. The PRINCE2 manual states that the project mandate should identify the
Executive and Project Manager. The project mandate may not necessarily be a document.
Other information that may be included in a project mandate is:
The Main Objective of the Project

The Business Case, which describes the reasons for the project
Project Scope in high-level terms
Customers quality expectations
Information about the customer, e.g.: best practice for documenting requirements
Information on related projects that may provide important feedback
The Starting up a Project (SU) process is ready to begin once the project mandate document is
ready.
Management Plaza
www.MgmtPlaza.com
Project
mandate
Contents of project mandate

Identify Executive and Project Manager
Management
Project Manager
Direction
Project Board
Corp..
Other info can be

Customer information & stakeholders
Related projects
Project objectives
Business Case,
Scope & constraints
Quality Expectations, etc...
Delivery
Team Manager
Pre-Project

-- Once per stage
Notification -- Notification
Auth.
-- Authorization

Pre-Project
Fig 3.2 Project mandate contents
3.3 SU: Starting Up a Project

3.3.1 Starting Up a Project: Two main deliverables
The Starting up a Project process has two main deliverables:
1.
2.
The Project Brief, which includes an outline of the Business Case, the Project Product
Description,
The Initiation Stage Plan
The Starting up a Project process can be short. Its goal is to provide a structure to get the project off
to a good start; it is made up of six activities:
1. Appoint the Executive and Project Manager
2. Capture Previous Lessons e.g.: from other projects
3. Appoint a Project Management Team
4. Create an Outline of the Business Case
5. Select the Project Approach and assemble Project Brief
6. Create a plan for the Initiation Stage
3.3.2 Starting Up a Project Activities

1st Activity: Appoint the Executive and Project Manager
This is done by the Corporate or Programme Management. It makes sure that the best possible
persons are selected and all sides have agreed on related responsibilities and job descriptions. The
Executive and Project Management will take immediate ownership of the project.
Management Plaza
2nd Activity: Capture Previous Lessons

The project must learn from previous projects, other people and other sources. This is a very
important point in PRINCE2 and its even one of the seven principles. The Project Manager will add
useful lessons / advice to the Lessons Log for use in this project.
3rd Activity: Appoint a Project Management Team
The Project Manager will create the Roles and Responsibility descriptions, including the estimated
effort required for each role. The Executive will appoint the persons.
4th Activity: Outline the Business Case
The Executive creates an Outline of the Business Case. The Business Case is a very high-level
document and will be expanded later into a full Business Case.
For now, it addresses value for the business, company objectives, and funding & risk information.
Also in this activity, the Project Manager creates the Project Product Description to describe the main
output of the project.
5th Activity: Select the Project Approach and assemble Project Brief
The Project Manager examines how best to approach the project, using all available knowledge, and
also assembles the Project Brief document. There will be more about this later.
6th Activity: Planning an Initiation Stage
Corp..
The Project Manager creates a plan for the Initiation Stage, which will be the first stage of the project.
This plan will be detailed enough to be used as a day-to-day plan by the Project Manager. It will
include information such as objectives, deliverables, cost and time.
By Frank Turley
project
mandate
Management
Direction
Startup Activities
Appoint the Executive and the Project Manager
Capture Previous Lessons
Design & appoint the Project Management Team
Prepare the outline Business Case
Product Description
Select project approach & assemble Project Brief
Plan the initiation stage
Starting Up a Project: 2 Main Deliverables

Project Brief
Initiation Stage Plan
Delivery
Pre-Project
Fig.3.3 Starting up a Project Activities
3.4 SU: Project Approach

The objective of the Project Approach is to gather the necessary data that will allow the Project
Manager to determine such things as the timescale, the cost of the project, how the project can be
controlled and how to manage quality.
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10
This will be done by the Project Manager with a lot of assistance from other people, such as experts
(also known as Subject Matter Experts) who may or may not have been assigned to the project,
but have the necessary knowledge.
Project Approach Actions
The Project Approach will examine how to go about the project by looking at existing
information by asking the following questions:
o
o
o
o
o
o
o
o
Corp..
Are there similar projects to learn from?

What other knowledge and skills are required for the project?
What standards are to be used?
What are the constraints?
What training is required?
Should parts of the project be developed in house or outsourced?
Should we build from scratch or update an existing product?
How will maintenance be done in the future?
The Project Manager decides on the best approach for the project by looking at all available
knowledge.
The output of the Project Approach will become part of the Project Brief.
By Frank Turley
project
mandate
Direction
Project Approach introduction
Project approach
Project Brief + IS Plan
Req to Initiate a Project
Management
Objective: Gather necessary data will allow the PM to

determine Timescale, costs, control,...
Responsible: PM
Assistance: Specialists, Users, etc..
Project Manager asks the following:
Similar projects?, where else to get knowledge?

Skills required?, Specialists to involve?
Standards?, Constraints?, Outsource?
Upgrade?, Dev from scratch?, Buy?, etc
Output:
Project approach (will be part of Project Brief)
Delivery
Pre-Project
Fig 3.4 Project Approach
3.5 SU: Assemble Project Brief

The Project Brief document is used to provide the necessary information to the Project Board. It is
used to decide if the project will proceed to the next stage, which is the Initiation Stage. The Project
Manager assembles the Project Brief using the information already gathered during the Starting up
a Project process.
Management Plaza
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11
By Frank Turley
project
mandate
Project approach
Management
Direction
Project Brief Contents
Pre-Project
Project Definition
Project Product Description
Quality Expectations
Project approach
Outline Business Case
Role Descriptions
Assemble the Project Brief

-
Assembled by the Project Manager

Used by Project Board to decide to Initiate the Project
Project mandate provides main direction information
Delivery
Fig 3.5 Project Brief
The information in the project mandate document provides the main guidance and direction for the
Project Brief.
Project Brief Contents
The Project Brief contains the following information:
1. Project definition, which includes:
o The background, project objectives, project scope, tolerances, risks, desired outcomes,
users who have interest in the project.
o The project objectives (which is the desired outcome) and the project scope is taken
from the project mandate document and updated.
2. A detailed Project Product description, which includes quality expectations
3. Outline of the Business Case, which includes a summary of the known risks
4. The Project Approach
5. Overview of Team Structure and Role Descriptions
As you can see, the Project Board will already have quite a significant amount of information about
the project when they receive a copy of the Project Brief.
3.6 SU: Plan the Initiation Stage

3.6.1 Plan the Initiation Stage Tasks
Plan the Initiation Stage is the last activity in the Starting up a Project processes. It is time for a
question: What do you think is the main difference between the Starting up a Project Process and
the Initiation a Project process?
The Starting up a Project process is the first check to see if there is a business reason to the project,
while the Initiation a Project process (also known as the Initiation Stage) will plan the project.
PRINCE2 recommends the following tasks in this activity Plan the Initiation Stage:
1.
2.
3.
Define Reporting and Control Arrangements for the Initiation stage

Produce Stage Plan, and include time and cost data
Review the Risks in the Daily Log to assess their impact on the Initiation Stage
The Stage Plan is created by the Project Manager, reviewed by the Senior User, and approved by
the Executive.
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12
By Frank Turley
project
mandate
Initiation
Notification
Plan the Initiation Stage - tasks
Auth. To Initiate
Authorize
initiation
Req to Initiate a Project?

Project Brief
Initiatie Stage Plan
Management
Direction
Corp..
Define reporting & control
Day to day plan for Initiation Stage
Include time & cost data
Review Risks & Daily Log
Request to Initiate a Project
Pre-Project
Request sent to Project Board
Include Project Brief & Init. Stage Plan
Delivery
Fig 3.6 Initiation Stage Activities
3.6.2 Request to Initiate a Project

Once the Project Brief and Initiation Stage plan are ready, the Project Manager will ask the Project
Board if they can continue to the Initiation Stage. The name that PRINCE2 gives to this request is
Request to initiate a project.
A lot of activities are done here in this Starting up a Project process, but if the command to start the
project came from a programme, then most of the content of the Project Brief would most likely be
provided by the programme. So the information you get in project mandate the less work you have
to do in the Starting up a Project process.
As you can see from the diagram (Fig 3.5 Initiation Stage Activities), all documents and the Request
to proceed are sent to the Project Board activity Authorize initiation.
3.6.3 DP: Authorize initiation

The activity Authorize initiation is the first activity for the Project Board and is the first decision (also
called a Control Point) they have to take.
The Project Board will review the Project Brief and the Initiation Stage plan, and they will check if
there is a business case and if the project is worth doing for the organization. So they will look for
the following information:
Project objectives and the project scope

The project product description (this is important for the Senior User)
Outline of the Business Case
Overview of known risks
The Project Approach
Overview of team structure and role descriptions
Initiation Stage Plan (deliverables, cost, risks)
Management Plaza
13
By Frank Turley
project
mandate
Initiation
Notification
Authorize initiation - Activity
Auth. To Initiate
Authorize
initiation
Req to Initiate a Project?

Project Brief
Initiatie Stage Plan
Management
Direction
Corp..
First control point for Project Board
Review: 1) Project Brief 2) Stage Plan
Authorize initiation - Output
Authority to initiate a project
Pre-Project
Fig 3.7 Authorize initiation
If all looks OK and they wish to continue, then they will issue an authorization, which is called
Authority to Initiate a Project so the project can continue to the Initiation Stage.
3.7 IP: Initiation Stage

3.7.1 Initiating a Project Process introduction
In the above heading, I have used the terms Initiation Stage and Initiating a Project process. This
can be a bit confusing, so let me explain.
Pre-project
Initiation
stage
Directing
Subsequent
delivery stages (s)
Final delivery
stage
Directing a Project
SU
SB
CP
SB
Managing
IP
Delivering
Controlling a Stage
Controlling a Stage
Managing
Product Delivery
Managing
Product Delivery
Fig 3.8 Initiation Stage
Initiating a Project process refers just to the process Initiating a Project.

Initiation Stage is bigger and refers to all the work that has to be done in the Initiation
process and the first Managing a Stage Boundary process.
As you can see from the diagram (figure 3.6), the Initiating a Project (or IP) process is triggered by
the Project Board. This IP process is usually short, especially when compared to the rest of the
project. But it is perhaps the most important stage, as it describes what has to be done by the project
and therefore should not be rushed.
The purpose of the IP process is to understand the work that needs to be done to deliver the required
products and to produce the project plan. So there are a number of good questions to ask about the
project and these are the most common:
What are the reasons for doing the project, the benefits and risks?
Management Plaza
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The scope what is to be done and not to be done?

When can products be delivered?
How to ensure that quality will be achieved?
How risks, issues and changes will be identified and followed up?
How PRINCE2 will be tailored to suit the project?
Authorize
the project
Project Init Docs
Req Deliver Project?
Auth. To Initiate
Authorize
initiation

Direction
Initiation
Notification
Management
By Frank Turley
project
mandate
Pre-Project
Delivery
14
Initiating a
Project (IP)

-- Once per stage
Initiating a Project (IP) Introduction

- Trigger: by Project Board
- Short process compare to rest of project
- Purpose: Understand what needs to be done
IP Activities
1. Prepare the Risk Management Strategy
2. Prepare the Configuration Management Strategy
3. Prepare the Quality Management Strategy
4. Prepare the Communications Mgmt Strategy
5. Setup Project Controls
6. Create the Project Plan (products)
7. Refine the Business Case
8. Assemble the PID
Fig 3.9 Initiating a Project
3.7.2 Initiating a Project Process 8 Activities

-- Management
What
do you
thinkProduct
the eight activities are?
Mgmt Prod
Here is a good way to remember: First the creation of the four strategy documents, the Project
Control, Project Plan and Business Case and lastly, assemble the PID. I will list the activities and
comment on each of these.
1.
2.
3.
4.
5.
6.
7.
8.
Prepare the Risk Management Strategy

o This will define how to manage risk during the project.
Prepare the Configuration Management Strategy
o This will define how to manage the products produced during the project.
Prepare the Quality Management Strategy
o This will define how to ensure quality during the project.
Prepare the Communication Management Strategy
o This will define how and when the project will communicate to stakeholders.
Set Up Project Controls
o This will define how the Project Board can control the project and how the Project
Manager can control the work done by the teams.
Create the Project Plan
o This covers cost, timescale, risks, quality plan and deliverables.
Refine the Business Case
o This means to complete the Business Case document.
Assemble the Project Initiation Documentation
o This is to collect and assemble documents and information from the documents created
so far in the SU and IP processes.
The very last thing a Project Manager will do in the Initiation process is to send a request to the
Project Board. This is a request to Deliver the Project.
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15
3.8 IP: Project Initiation Documentation (PID)

3.8.1 Project Initiation Documentation
The Project Initiation Documentation becomes a common understanding for all points related to the
project. It provides a solid base for the project, makes all parties clear about what the project is
intended to achieve and the responsibilities. So this provides the what, why, who, how, when and
cost of the project
The documentation provides the necessary information for the Project Board to decide to continue
with the project. If the project proceeds, then the Project Initiation Documentation will be baselined,
meaning it will be dated (time-stamped) so that it can be used in the future to check project
performance compared to the original forecasts.
The last task done by the Project Manager in the Initiation Stage is to request to Deliver a Project;
this request is sent to the Project Board.
3.8.2 Project Initiation Documentation Contents

The Project Initiation Documentation is a collection of most of the documents produced so far in both
the SU and IP processes.
PID Introduction
Initiation
Notification
Authorize
the project
Project Init Docs
Auth. To Initiate
Authorize
initiation
Pre-Project
Delivery
By Frank Turley
project
mandate
Management
Direction
Corp..
First of all, we have the project approach and project definition, which contains a lot of
information about the project and is extracted from the Project Brief.
The Project Management Team Structure, which includes the Roles Descriptions.
The Business Case, which includes time and cost information from the project plan.
The four management strategy documents, which are Quality, Configuration Management,
Risk and Communications.
The Project Plan, which contains information on timescale, cost, resource requirements,
products that will be produced, risks, tolerances, controls and quality.
The Project Controls document, which describes how the project will be monitored and
controlled, tolerances between the different management levels, and the number of stages.
How PRINCE2 was tailored to suit the project.
Initiating a
Project (IP)

-- Once per stage
PID contains all points related to project

Provides the What, Why,When, Cost, How
Project Board can make decision to start?
PID is baselined (compare at end of project)
PID Contents
-
Project definition (why, objectives, constraints,..)

Project approach
Project Management Team Structure
Business Case
Four strategy documents
+ Risk Management, Quality Management
+ Communication, Configuration
Project Controls
Project Plan
Tailoring
Fig 3.10 PID Contents
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16
3.9 SB: Managing a Stage Boundary after the Initiation Stage

This is the first Managing a Stage Boundary (SB) process and it is normally performed after each
Controlling a Stage process (each stage) but in this case it is performed after the IP process to create
a Stage Plan for the first delivery stage (next stage in the project)
The objectives for this Managing a Stage Boundary process are:
Corp..
To assure the Project Board that all products in the IP stage are produced
Create the End Stage Report to report on how well the IP Stage went compared to the
Initiation Stage Plan.
Create the Next Stage Plan, which will be a plan for the next stage, we also call this next
stage the 1st Delivery Stage as its the first stage where products required by the project will
be produced.
By Frank Turley
Direction
Initiation
Notification
Project
Notification
Initiating a
Project (IP)
Authorize a Stage
or Exception Plan
2 Proceed
Auth.
stage
Auth.next
Authorize
the project
Project Init Docs
Auth. To Initiate
Management
Authorize
initiation
End Stage Report
Next Stage Plan
Managing a Stage Boundary: Objectives

- Assure that all products are approved
- Record lessons in the Lesson Log
- Create End Stage Report for IP stage
- Create Next Stage Plan
(SB) Managing a
Stage Boundary
Main Inputs
Delivery
Init. Stage Plan

PID
-- Once per stage
Outputs
End Stage Report
Next Stage Plan
SB
Updated
Project Init. Doc's
Business Case
Risk & Issue Register...
Fig 3.11 Managing a Stage Boundary process after the IP stage
Inputs:
The main inputs are:
The Project Initiation Documentation to compare with Initiation Stage Plan

And of course, all the register files (Quality, Issue, Risk)
Outputs:
The Stage Boundarys outputs are:
The End Stage Report (a report on the stage just completed, the Initiation Stage)
The Next Stage Plan
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17
3.10 DP: Authorize the project

Authorize the project is the 2nd control point and 2nd Activity for the Project Board. The end of the
Initiation Stage is the trigger for the Authorize the project activity. The Project Board confirms the
projects objectives and the scope is clearly defined and understood. They can decide to stop the
project, ask for further information, or give authorization for the project to continue.
The Authorize the project activity has the following input and outputs:
Inputs
Project Initiation documentation
Request to Deliver a Project
Corp..
Outputs:
As you can see in the diagram, there is one authorization, one approval and one notification
Authorization: Authorize the Project so the project can start
Approval : Approve the Project Initiation Documentation
Notification : To the Corporate or Programme Management that the project has started
Project
Notification
DP: Authorize the Project

- 2nd control point for Project Board
Next
Stage
Plan

-- Once per stage
Authorize a Stage
or Exception Plan
2 Proceed
Auth.
stage
Auth.next
Authorize Project
Approved PID
Authorize
the project
Project Init Docs
Auth. To Initiate
Authorize
initiation

Management
Direction
Initiation
Notification
Initiating a
Project (IP)
Delivery
By Frank Turley
Inputs
- Project Initiation Documentation
- Request to Deliver a Project?
End Stage Report

Next Stage Plan
or Exception Plan
Outputs
- Authorize the Project
- Approved PID
- Notification to Corp/Programme
(SB) Managing a
Stage Boundary
DP: Authorize a Stage ...

- 3rd control point for Project Board
Inputs
- End Stage Report
- The Next Stage Plan
Outputs
- Authorize next stage
Fig 3.12 DP: Authorize the project
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18
3.11 CS: Controlling a Stage
Project
Notification
Closure
Notification
close soon

Authorize a Stage
or Exception Plan
Work Package
Work Package
Work Package
Completed WP
Auth.
-- Authorization

Pre-Project
Initiation
Advice
Premature Close
(SB) Managing a
Stage Boundary
Highlight Reports
Exception Report
End Stage Report

Next Stage Plan
or Exception Plan

-- Once per stage
Auth. project
closure
Give ad hoc
direction
(Issue / Change & Risk)
Authorize stage
Authorize Project
Approved PID
Authorize
the project
Project Init Doc
Req. Deliver Project?
Project Starts
Auth. To Initiate
Req. to Initiate a Project
Authorize
initiation
Closure Recommend.
End Project Report
FAR, Lessons Rpt
Draft Closure Notificat.
Initiation
Notification
Initiating a
Project (IP)
Delivery
Team Manager
www.MgmtPlaza.com
Project
mandate
Management
Project Manager
Direction
Project Board
Corp..
The process Controlling a Stage is where the Project Manager does most of their day-to-day work.
As mentioned before, all items in green happen once during a stage and a project can have many
stages. You can also see that most of the activity in the Controlling a Stage process happens in the
Management Level.
Closing a
project (CP)
MP Outputs
Team Plans
Checkpoint Reports
Quality Register
Completed WP
Products get created & quality checked
Stages - Execution
Fig 3.13 Controlling a Stage

The trigger for the Controlling a Stage process comes always from the Project Board Activity
Authorize a Stage or Exception Plan.
Each Controlling a Stage process ends by triggering the process Managing a Stage Boundary,
except for the last stage, which most of the time is directly followed by the Closing a Project process.
Next, I will describe the relationship between Controlling a Stage and Managing Product Delivery,
and the activity Authorize a Stage or Exception Plan.
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19
3.12 CS: Controlling a Stage / Managing Product Delivery

3.12.1 Assign Work to Teams using Work Packages
By Frank Turley
Guidance & advise
(SB) Managing a
Stage Boundary
Highlight Reports
2 Proceed
Auth.
stage
Auth.next
Authorize Project
Approved PID
End Stage Report

Next Stage Plan
or Exception Plan
Give ad hoc
direction
Exception Report
Authorize a Stage
or Exception Plan
Authorize
the project
Management
Direction
Corp..
The Project Manager allocates Work Packages to the Team Leaders. A Work Package contains
information on one or more products to be developed, which includes such information as product
descriptions, planning data, and constraints. This becomes the agreement between the Project
Manager and the Team Leader.

New WP
Work Package
Accept a WP
Delivery
Accept a WP

- Work Package contains information on
the products to be produced
- Can happen many times in a stage
MP Objectives
- Agree work between PM & TM
- Products are produced in the Activity
Execute a Work Package
- TM hands back complete work to PM
Tip: Small Projects

- No need for Team Manager
- Team Members report directly to PM
Work Package
Deliver a WP
Execute a Work Package (MP)
Fig 3.14 Managing Product Delivery
The activity Authorize a Work Package can happen many times during a single Controlling a Stage
process. Other tasks for the Project Manager during the Controlling a Stage process are to Manage
Quality, Manage Changes, Monitor Risks, Taking Corrective action, Reporting and Communication.
3.12.2 Managing Product Delivery Objectives

The objectives of Managing Product Delivery are to:
Agree on the details of the work to be done between the Project Manager and Team Leader,
and make sure that the Team Leader understands what they need to deliver.
Do the Work: meaning the Team Manager manages the development of the products and
takes the necessary steps to ensure quality for each product.
Provide regular progress information to the Project Manager using Checkpoint Reports.
Handing back the completed work to the Project Manager and obtaining approval for each
product after the work is done and quality has been checked.
Tip: For small projects, the team members (who do the work) will work directly for the Project
Manager, so there will be no need for a Team Manager and this process will be less formal.
3.13 MP: Managing Product Delivery: Outputs

The Managing Product Delivery process can have four outputs, which are: The Team Plan, The
Checkpoint Reports, the Quality Register and Completed Work Packages.
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Team Plan: This plan is prepared by the Team Manager in the activity Accept a Work
Package and is used to plan the work that will be carried out by the team members.
Checkpoint Reports: These are reports from the Regular Team Meetings led by the Team
Manager and are given to the Project Manager.
Quality Register: The Quality Register is updated as each product is tested after
development by the testers. The Quality Register is also used by the Project Manager to
check on progress.
Completed Work Package: This is the name given to the group of completed products that
are handed back to the Project Manager.
By Frank Turley
Direction
Guidance & advise
(SB) Managing a
Stage Boundary
Highlight Reports
End Stage Report

Next Stage Plan
or Exception Plan
Give ad hoc
direction
Exception Report
2 Proceed
Auth.
stage
Auth.next
Authorize a Stage
or Exception Plan
Authorize Project
Approved PID
Management
20
Managing Product Delivery - Outputs

- Accept a WP: Team Plans
- Execute a WP: Checkpoint Reports
- Execute a WP: Updated Quality Register
- Deliver a WP: Completed Work Package

New WP
Work Package
Accept a WP
Delivery
Accept a WP
Work Package
Deliver a WP
Execute a Work Package
MP Outputs
Team Plans
Checkpoint Reports
Quality Register
Completed WP
Fig 3.15 Managing Product Delivery outputs
3.14 CS: Controlling a Stage Give ad hoc direction

The Controlling a Stage process has two main outputs, which are inputs to the Project Board Activity
Give ad hoc direction. These are the Highlight Report and the Exception Report. There is also
one input from the Give ad hoc direction activity, which is Guidance and Advice. Here is a bit
more about these.
The Highlight Report
This is a regular report on the stage progress. It is created by the Project Manager and sent
to the Project Board on a time-driven frequency, e.g.: every two weeks.
The report provides a summary of the stage versus the stage plan, and also information on
tolerances, potential issues, products completed, next work packages and corrective
actions.
The Exception Report
This report is only created if the current stage will not finish according to the plan and within
tolerances, so the Project Manager must alert the Project Board.
The Exception Report provides an overview of why the stage will most likely go out of
tolerance, and then includes different options to get the project back on track. It also
assesses the impact on the business case, as this issue will most likely increase the cost
of the project.
The Project Manager recommends one of the options in the Exception Report to the Project
Board
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21
Corp..
Note: If the Project Board agrees with the Exception Report (if they agree with the recommended
options or one of the other options), they will request an Exception Plan, which will replace the
current Stage Plan and therefore allow the Project Manager to complete the current stage.
By Frank Turley
Direction
(SB) Managing a
Stage Boundary
Guidance & advise
End Stage Report

Next Stage Plan
or Exception Plan
Highlight Reports
Give ad hoc
direction
Exception Report
2 Proceed
Auth.
stage
Auth.next
Authorize Project
Approved PID
Management
Authorize a Stage
or Exception Plan
Controlling a Stage: Outputs

Highlight Report
- Created by PM for Project Board
- Reports on Stage progress v Stage plan
- Tip: Think about the tip of an Iceberg
Exception Report
- Only created - out of tolerance,
- Describes issue & give suggestions
Input: Guidance & Advise
- At any time from Project Board
New WP
Work Package
Work Package
Delivery
Accept a WP
Work Package
Completed WP

Fig 3.16 Controlling a Stage outputs
Guidance and Advice
The project board can provide guidance and advice at any time during the project.
This can also be an answer to an issue/question that was perhaps raised by the Project
Manager in the Highlight Report.
3.15 CS: Project Manager Day to day activities

Before we move to the Managing a Stage Boundary process, let us look at the different activities that
are done by the Project Manager in the Controlling a Stage process.
There are eight activities in the Controlling a Stage process. They are divided into three parts that
also describe what the Project Manager does:
1.
2.
3.
Deal with Work Packages

Do Monitoring and Reporting
Deal with Issues
The Work Package activities are:

o Authorize a Work Package meaning assign and agree with the Team Manager so
that the Team Manager knows what to do and can create their team plan.
o Review Work Package Status check on work package progress, so read Checkpoint
reports and check the Quality Register.
o Receive Completed Work Packages which is to receive the completed products
back from the Team Manager and confirm that they have been quality-checked and
stored, as described in the configuration management document.
The Monitoring and Reporting activities are:

o Review the stage status Continually compare the stage status to the stage plan
checking if the stage is still on track and if anything is likely to affect this.
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22
Report Highlights Create Regular reports to the Project Board to let them know how
well the stage is going according to the plan.
By Frank Turley
Direction
Guidance & advise
(SB) Managing a
Stage Boundary
Highlight Reports
End Stage Report

Next Stage Plan
or Exception Plan
Give ad hoc
direction
Exception Report
2 Proceed
Auth.
stage
Auth.next
Authorize Project
Approved PID
Management
Authorize a Stage
or Exception Plan

New WP
Work Package
Work Package
Delivery
Accept a WP
Eight PM day to day activities

Work Package activities
1) Authorize Work Package
2) Review Work Package status
3) Receive completed Work Packages
Monitoring & Reporting activities
4) Review the stage status
5) Report Highlights
Issues activities
6) Capture & examine issues & risks
7) Escalate issues & risks
8) Take corrective action
Work Package
Completed WP

Fig 3.17 CS: Project Manager day-to-day activities
The Issue activities are:

o Capture and examine issues and risks: Any person can raise an issue and the
Project Manager must gather and review them. Reviewing also includes categorizing
and assessing the impact of each issue.
o Escalate issues and risks: If there are issues to report or if the stage is expected to
go out of tolerance, then create an Exception Report and send it to the Project Board.
o Take corrective action: Normally, Taking Corrective Action is used when extra work
has to be done to solve an issue and the stage can stay within tolerance.
As you can see, we have already covered four of these in the previous slides. One final comment:
These activities can be done numerous times by the Project Manager and there is no set order.
3.16 SB: Managing a Stage Boundary

3.16.1 Managing a Stage Boundary and Objectives
The Managing a Stage Boundary process provides information to the Project Board about the current
status of the project at the end of each stage. This process happens after all the work in the current
stage plan has been completed and before the next stage can begin.
The Stage Boundary Objectives
The objectives of the Managing a Stage Boundary process are:
To confirm to the Project Board which products have been produced in the current stage as
documented in the stage plan, and also update the Project Plan to show what has been
done so far and forecast the planning for the next stage.
o So you see, the Project Plan is a living document (kept up to date)
To provide the Project Board with information so they can:

o Assess the viability of the project meaning checking that it still worth doing
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o
o
23
Approve Stage Completion which is to approve the stage (that was just done) and
Authorize the start of the Next Stage
By Frank Turley
Direction
SB: Objectives

New WP
Work Package
Work Package
Delivery
Accept a WP
Work Package
Completed WP
Guidance & advise
(SB) Managing a
Stage Boundary
Highlight Reports
End Stage Report

Next Stage Plan
or Exception Plan
Give ad hoc
direction
Exception Report
2 Proceed
Auth.
stage
Auth.next
Authorize Project
Approved PID
Management
Authorize a Stage
or Exception Plan
- Products completed as defined

- Provide the PB with the information to:
1) Assess the viability of the project
2) Approve the Stage completion
3) Authorize the start of the next Stage
SB: Outputs
-
End Stage Report

Next Stage Plan
Updated Project Plan (with actuals)
Updated Business Case (still viable?)
And/or Exception Plan

Fig 3.18 Managing a Stage Boundary objectives and outputs
It is also necessary to record any information or lessons that can help in later stages of the project
or other projects and update what we refer to as the dynamic documents, such as Business Case,
Risk Register, Issue Register and the Project Plan.
If the stage is expected to go out of tolerance then create an Exception Plan and give it to the Project
Board.
3.16.2 Managing a Stage Boundary Outputs

The main outputs of Managing a Stage Boundary are the End Stage Report, the Next Stage Plan
and the update to the Project Plan and Business Case. And as you now know, the Exception Plan
will be created instead of the Next Stage Plan.
I will now briefly explain these:
The End Stage Report provides a detailed report on the results of the current stage by
comparing the performance of the stage to the original stage plan used at the beginning of
the stage.
The Next Stage Plan is a detailed day-to-day plan for the next stage and needs to be
approved by the Project Board.
The stage plan for next stage is created near the end of the current stage, so this means
that the Managing a Stage Boundary process starts before the end of the Controlling a
Stage process.
The Project Plan is updated to incorporate the actual progress from the current stage, and
it should also include the forecast planning for the next stage and should update time and
cost data.
The Business Case: The end of each stage is a good time to update the Business Case
and check if the project is still viable and worth doing. The Project Board is also interested
to know that the benefits of the project can still be realized within the agreed parameters,
which are time, cost, quality, risk and scope.
Management Plaza
24
The Exception Plan: This plan is created only when the current stage goes beyond its
tolerance level (e.g.: taking 15% longer than planned), and the Project Manager must
therefore get authorization to complete the current stage.
3.17 DP: Authorize a Stage or Exception Plan

3.17.1 Authorize a Stage or Exception plan
The Authorize a Stage or Exception plan activity is another important control point for the Project
Board. They will review the data provided by the Project Manager and decide if the project should
continue to the next stage.
The Project Board will therefore do the following:
Corp..
By Frank Turley
Direction
Guidance & advise
(SB) Managing a
Stage Boundary
Highlight Reports
End Stage Report

Next Stage Plan
or Exception Plan
Give ad hoc
direction
Exception Report
2 Proceed
Auth.
stage
Auth.next
Authorize a Stage
or Exception Plan
Authorize Project
Approved PID
Management
Compare results of current stage against stage plan

Check performance of project to date (they can use the baselined project plan for this).
Evaluate the next stage plan
Check the risk summary
Review the Business Case (they will check if the Business Case is still valid).
Check that lessons are being learned and that they are used in future stages.
And lastly, they can choose to give approval for the next Stage Plan. This is the
Authorization for the next stage to begin or approve the Exception Plan.
Authorize a Stage or Exception Plan

- Control point for Project Board
- Compare stage v stage plan
- Evaluate the Next Stage Plan
- Review Risks & Business Case
- Check Lessons are being learned
- Last: Give Approval for next Stage
Or Approval Exception Plan
New WP
Delivery
Work Package
Work Package
Accept a WP
Work Package
Completed WP

Fig 3.19 Authorize a Stage or Exception Plan
Tip: Smaller Projects

For smaller projects, this process can be a lot less formal. Example: The Project Manager can
arrange a meeting with the Executive and the above activities will be carried out during the meeting.
3.17.2 Exception Plans - Authorize a Stage or Exception Plan Activity

If the plan submitted to the Project Board is an Exception Plan and not a Next Stage Plan, then the
Project Board will do the normal tasks in the Authorize a Stage or Exception Plan activity, but the
plan they will approve will be the Exception Plan if they wish for the current stage to be completed.
The Project Manager can then go back and complete the current stage.
Management Plaza
25
3.17.3 Last Controlling a Stage Process

Normally the project would continue to the next stage and this cycle would continue until all stages
have been completed and the necessary products have been produced.
So let us assume that we have done a number of stages and the project will go from Controlling a
Stage to the Closing a Project process, as the Managing a Stage Boundary process is normally not
used at the end of the last stage (except if an Exception Plan needs to be created).
3.18 CP: Closing a Project: Introduction and Objectives

3.18.1 Closing a Project and Premature Close
Corp..
Normally a Project closes after all the products have been produced and delivered. The Closing a
Project process becomes part of the last stage and the Project Manager will take the necessary
action to prepare for project closure, but only the Project Board can actually close a project.
Direction
Closure
Notification
Closure Recommend.
EPR, BRP, PP
FAR, Lessons Rpt
Premature Close
Guidance & advise
(SB) Managing a
Stage Boundary
Highlight Reports
End Stage Report

Next Stage Plan
or Exception Plan
Auth. project
closure
Give ad hoc
direction
Exception Report
2 Proceed
Auth.
stage
Auth.next
Management
Authorize a Stage
or Exception Plan
Closing a
project (CP)
Delivery
By Frank Turley
Closing a Project (CP)

- CP is part of last stage
- Done instead of SB at end of project
- Premature Close at any time
- Premature Close triggered by PB
- PM is responsible to prepare CP
Closing a Project: Objectives

- Confirm products delivered-accepted
- Capture lessons learned (for future)
- Ensure product support after project
- Handover products (see CM strategy)
- Evaluate the project (EPR)
- Benefits, assess and plan

-- Once per stage
Fig 3.20 Closing a Project
Its also important to note that the Project Board can decide to shut down the project before its
expected end. This is referred to as a Premature Close. This can happen at any time during the
project. For instance, the project board might see that the business case is no longer valid, as the
market price for such a product has reduced by 30% or there has been a change in government
legislation that would reduce the future lifetime of the product.
A clear project end is necessary to avoid wasted resources and not allow the project to drag on. It
also provides the opportunity for the Project Board to review the project against the Initial Project
Plan.
3.18.2 Closing a Project Objectives

The Project Manager carries out the work in Closing a Project, and the objectives are:
Check that all required products have been delivered and accepted.
Capture lessons learned in the Lesson Report, as this can be valuable for future projects.
Ensure that the products can be supported after the project is disbanded.
Hand over products to the customer, as described in the Configuration Management
Strategy document.
Management Plaza
26
Evaluate the project by comparing project objectives with actuals, and write the End Project
Report.
Assess the benefits already realized and plan a review of benefits that will be realized after
the project is complete.
3.19 CP: Closing a Project Outputs

3.19.1 Closing a Project Outputs
Corp..
The Closing a Project diagram shows that the Project Manager provides some documents to the
Project Board and other documents to the Operations/Maintenance group who will support the
products once the Project is complete.
By Frank Turley
Direction
Closure
Notification

-- Once per stage
EPR, LR, PP,

BRP, draft PCN
CP
Closure Recommend.
EPR, BRP, PP
FAR, Lessons Rpt
Premature Close
Guidance & advise
(SB) Managing a
Stage Boundary
Highlight Reports
End Stage Report

Next Stage Plan
or Exception Plan
Auth. project
closure
Give ad hoc
direction
Exception Report
2 Proceed
Auth.
stage
Auth.next
Management
Authorize a Stage
or Exception Plan
Delivery
To: Project Board
Closing a
project (CP)
To: Ops/Maintenance.
FAR, Products,
CIR
Close
LL, DL,
RR, IR, QR
Closing a Project outputs:
- End Project Report
- Follow on actions recommendations
- Lessons Report & CIR
- Project Plan & Benefits Review Plan
- Project Closure Notification
Fig 3.21 Closing a Project outputs
The documents given to the Project Board are:
The End Project Report (EPR): This is written by the Project Manager and compares the
project with the Project Initiation Documentation.
The Lessons Report (LR): This records useful lessons that were learned during the project
and can be applied to future projects.
Other documents given to the project board are: Project Plan (PP), which has been kept up
to date during the project, Benefits Review Plan (BRP), and draft Project Closure
Notification.
The Project Manager provides the Operations / Maintenance group with:
The follow on actions recommendations (FAR): This is a document that includes

information on outstanding issues that are taken from the Issue and Risk Logs and requires
follow-up action after the project has ended.
The Project Manager also hands over product information, including the Configuration Item
Records (CIR) for each product, to the operations and Maintenance Group.
Management Plaza
27
3.19.2 Last actions for Project Manager in Closing a Project

The Project Manager may first close the three register files and the daily log.
The Project Manager also creates a draft Project Closure Notification for the Project Board. This will
be the notification document that will be sent out later to stakeholders by the Project Board once they
have decided to close the project.
The last thing the Project Manager does is to Recommend Project Closure to the Project Board.
This can only be done once all other activities in Closing a Project have been done.
3.20 DP: Authorize project closure

3.20.1 Project Board activities in Authorize project closure
Corp..
Closing a Project correctly is the responsibility of the Project Board, while the Project Manager will
prepare and provide the Project Board with the majority of the information required.
By Frank Turley
Direction
Closure
Notification
Closure Recommend.
End Project Report
FAR, Lessons Rpt
Premature Close
Guidance & advise
(SB) Managing a
Stage Boundary
Highlight Reports
End Stage Report

Next Stage Plan
or Exception Plan
Authorize Project Closure

Auth. project
closure
Give ad hoc
direction
Exception Report
2 Proceed
Auth.
stage
Auth.next
Management
Authorize a Stage
or Exception Plan
Compare PID with actuals, create EPR

Confirm Follow-on Action Recommendations
Review Lessons Report
Confirm products acceptance & handover
Review & Approve Benefits Review Plan
Confirm project has met Business Case
Approve End Project Report (EPR)
Outputs
Closing a
project (CP)
- Distribute Lessons Report

- Distribute Follow on Action Recommendations
- Project Closure Notification (Output)
Fig 3.22 Authorize project closure
PRINCE2 recommends the following actions for the Project Board:

1. Review the End Project Report, and compare it to the original plan.
2. Confirm who should receive the Follow on Action Recommendations. e.g.: the persons
responsible for the maintenance
3. Review the Lessons Report and pass it on so it can benefit future projects.
4. Confirm that products have been handed over, and confirm user acceptance and
maintenance for each product.
5. Review and approve the Benefits Review Plan, as reviewing the benefits will continue to
be done after the project shuts down.
6. Confirm that the project has met the Business Case by comparing the current Business Case
to the original one, comparing the Benefits, Cost, Risks, and Return on Investment.
3.20.2 Authorize project closure activity outputs

There are three outputs to the Authorize project closure activity; these are:
1.
Distribute the Lessons Report to the appropriate persons so it is available for future projects.
e.g.: give it to the Project Office.
Management Plaza
28
2.
Distribute the Follow on Recommendations to the persons who will maintain the products
after the project.
3.
And the very last thing the Project Board does is to issue the Project Closure Notification,
which will announce to all stakeholders that the project will end on a certain date. This is the
same Project Closure Notification that was drafted by the Project Manager.
That's it, the project will be closed very soon. The Project Closure Notification is used to inform people
that the project is closing and to therefore submit any costs to the project budget before it is closed.
Perhaps the Project Manager should invite out the project team out for a meal or drink and write
recommendations for people who performed well on the project, this will also help to motivate people
for future projects.
Management Plaza
29
4 Summary
4.1 Course Summary
We just completed the PRINCE2 Process Model Podcast. The goal of this course was to show the
following:
Project
mandate
Project
Notification
Closure
Notification
close soon

-- Once per stage
Work Package
Completed WP
Auth.
-- Authorization
Premature Close
Advice
Highlight Reports
(SB) Managing a
Stage Boundary
Exception Report
End Stage Report

Next Stage Plan
or Exception Plan
Work Package
Work Package
Auth. project
closure
Give ad hoc
direction
(Issue / Change & Risk)
Next
Stage
Plan
Authorize a Stage
or Exception Plan
Authorize stage
Authorize Project
Approved PID
Project Init Doc

Req. Deliver Project?
Project Starts
Authorize
the project
Auth. To Initiate
Req. to Initiate a Project
Authorize
initiation
Initiating a
Project (IP)
Delivery
Team Manager
By Frank Turley

Initiation
Notification
Management
Project Manager
Direction
Project Board
Corp..
Provide a high-level overview of the PRINCE2 Process Model in other words, a helicopter
view of how a PRINCE2 project works.
Use colors to show which activities are done only once in the project, and those done once
in each stage or many times in each stage.
Show how a project starts and the next steps in the project.
Show when and which documents need to be created and by whom.
Show how the project moves from Startup to Initiation, and on to the Stages.
Show the relationship between processes (e.g.: the outputs from one process are the inputs
to another).
Show the typical Project Manager activities. This was mainly covered in the Controlling a
Stage process.
Show how the Managing Products Delivery process interacts with the Controlling a Stage
Process.
Show how the Project Board interacts with, and controls, the project.
And lastly, show how a project closes.
Closure Recommend.
End Project Report
FAR, Lessons Rpt
Closing a
project (CP)
MP Outputs
Team Plans
Checkpoint Reports
Quality Register
Completed WP
Products get created & quality checked
Version 1.5
Pre-Project
Initiation
Stages - Execution
Close
Fig 4.1 The PRINCE2 Process Model diagram
I suggest that you read this book a few times or listen to the podcast version. If you wish to test your
knowledge, then try some of the questions in the next section, Learn Thru Questions. This is also
available as a podcast. You could also try to fill in the exercise sheets.
Management Plaza
30
4.2 The PRINCE2 Product Map

This Product Map diagram from Management Plaza shows when most management documents are
created and updated, so it gives an excellent overview of both the Processes and Themes.
The Business Theme
The outline Business Case is created in the Pre-Project (SU) process
The Business Case is completed and baselined in the IP Process
The Business Case is then updated in the Stage Boundary process
The Business Case gets a final update in the Closing a Project process
The Plans Theme
The Project Product Description (PPD) in the Pre-Project (SU) process
The Project Plan is created and baselined in the IP Process
The Project Plan is then updated in the Stage Boundary process (show actuals)
The Project Plan gets a final update in the Closing a Project process, so the project can be compared
with the original Project Plan to see how well the project performed.
Initiation 1st Stage
Authorize
initiation
Project Brief
IS Plan
Lessons Log
Daily Log
Authorize
the project
by Frank Turley
Version 1.2c
Management Plaza
Stage Boundary: Created
Strategy:
Communication
Configuration
* Quality & Risk
PBS
PDs
PFD
Project Plan
End Stage Rpt
*
*
P
I
D
Project Controls
PMT - Roles
Starting Up
A Project
-- Team Manager is also responsible

-- Created once during project (can be updated)
-- Created or updated once per stage
-- Created or updated many times during a stage
-- Many per Work Package
SU Process
Pre-Project
Management Plaza
Give ad hoc
direction
Next Stage Plan
Controlling a Stage
Created
CS: Highlight
Auth. project
closure
Stage Boundary: Updated
Business Case
Project Plan
Work Packages
Controlling a Stage
Updated
CS: Risk Register
CS: Issue Register
CS: Lessons Log
CS: Daily Log
CS: CIR
Quality Register
Updated
Follow on Actions
Draf t Closure Not.

+ Proof of Acceptance
Updated
Benef its Review Plan
Business Case
Project Plan
CIR docs (cmdb)
Closing a Project
Product Delivery: Created

Checkpoint Reports
Team Plan
Initiation 1st Stage
Created
End Project Rpt
Lessons Report
CS: Issue/Exp. Rpts
or Exception Plan
Risk, Quality, Issue

Registers
Assists with Planning
Authorize a Stage
or Exception Plan
Business Case
Benef its Review Plan
Delivery
Team Manager
Closing a Project
Directing a Project
-- Outline BC
-- PPD
-- Approach
-- PMT
Management
Project Manager
Delivery Stages : Controlling a Stage & Stage Boundary
Project
mandate
Direction
Project Board
Corp..
Pre-Project
Delivery Stages : Controlling a Stage & Stage Boundary
CP is the last part

of the last stage
Closing a Project
31
5 Learn Thru Questions

5.1 Introduction
Welcome to this Learn the PRINCE2 Process Model Thru Questions section of the course. It provides
questions and answers on the PRINCE2 Process Model and you can find all of the answers in the
above text.
This is a good way to check your knowledge of the PRINCE2 Process Model. In fact, if you have a
good understanding of the PRINCE2 process model, you can easily follow a 2-day Foundation
classroom training instead of a 3-day training, which should be about 30% cheaper.
We offer this PRINCE2 Process Model course in a number of formats and you can get them from
the website. The other formats are:
The podcast
The Learn Thru Questions podcast, and
The computer based training format or CBT
If you have any questions, you can contact me at frank.turley@mplaza.pm
5.2 About Learn Thru Questions

We use the Learn Thru Questions technique in our training because it is the best way to (a) check
your knowledge, (b) get ready for a PRINCE2 exam, and (3) learn at the same time.
The Learn Thru Questions approach asks questions, allows you to click Pause, so you can think
about the answer, and then click Play to listen to the answer and compare it with yours. Depending
on the question, we also provide additional information to explain the answer. This ensures that you
continue to learn while using the Learn Thru Questions technique.
Most people who are familiar with podcast training or who want to see practice questions to prepare
for exams find our Learn Thru Questions approach a great way to do this.
Suggestion: We recommend that you have a color copy of the Process Model Diagram with you
when you listen to or read these questions for the first time, as many of the answers can be seen in
the Process Model Diagram.
So enjoy this Learn Thru Questions approach.
Management Plaza
32
5.3 The Process Model Learn Thru Questions

Q01: How many levels do the PRINCE2 Project Organization and PRINCE2 Project Management
Team have?
A01: The Project Organization has four levels and the Project Management Team has three levels.
The difference is that the Corporate or Programme Management level is the top level in the Project
Organization, but the top level in the Project Team is the Project Board. Take a Look at the
Organization diagram.
Q02: What happens to the Project Team once the project is complete?
A02: The Project Team is a temporary structure that is created for the project, so once the project is
complete, the Project Team is disbanded.
Q03: What is the difference between the Project Management Structure and Project Management
Team?
A03: The Project Management Structure refers to the PRINCE2 organization itself and shows four
levels, while the Project Management Team refers to the team in the project, which has just three
levels.
Q04: Name the four levels in a Project Management Structure, which is also referred to as the
PRINCE2 Organization.
A04: The four levels in a Project Management Structure are:
Project Board
Project Manager
Team Manager
Q05: Name the three levels in a Project Management Team. Which level is not mandatory?
A05: The three levels are the Project Board, Project Manager, and Team Manager. Some smaller
projects may not have a Team Manager, therefore the Team Members will report directly to the
Project Manager. So we can say that a project team can have two or three levels.
Q06: What does PMO stand for?
A06: PMO stands for Programme Management Office or Project Management Office. Other names
are Project Office and Program Office.
Q07: Finish this sentence: A programme is a group of related ______.
A07: A programme is a group of related projects.
Q08: Name the three roles in the Project Board.
A08: The three roles in the Project Board are: 1) the Executive, 2) the Senior User, and 3) the Senior
Supplier.
Q09: Who is responsible for the success of the project and has the necessary authority to take
decisions and approve all major plans for the project? They also approve the completion of each
stage and authorize the start of the next.
A09: The Project Board.
Q10: Who represents the Business interests of the project and owns the Business Case?
A10: The Executive represents the business interests of the project and owns the business case.
Q11: Who is usually responsible for designing and appointing the Project Management team?
A11: The Executive is usually responsible for designing and appointing the Project Management
team, including the rest of the Project Board.
Q12: Which level of the organization sits outside the Project Management team and is responsible
for commissioning the project?
A12: The Corporate or Programme Management level is responsible for commissioning the project
and is also responsible for identifying the Executive.
Management Plaza
33
Q13: Who represents the user interests in the Project Board and is responsible for the
specification of the required products?
A13: This is the Senior User, and they are also responsible to check that the final products meet the
required specification.
Q14: Who specifies the expected benefits at the start of the project and reports to the Project Board
on the benefits that are being realized during the project?
A14: The Senior User specifies the expected benefits and reports on the benefits to the Project
Board during the project. The Benefits Review Plan is maintained by the Project Manager, but the
Senior User is responsible for keeping the Project Board up to date.
Q15: Who represents the interests of those designing, developing, facilitating and implementing the
projects products?
A15: This is the Senior Supplier. This can be a person in the company or one from an outside
company.
Q16: Which two roles in the Project Board can be assigned to one person?
A16: The Executive and the Senior User can be assigned to one person. e.g.: The head of a
department that will use the end-product may decide to be both the Executive and the Senior User.
This means that a Project Board can have a minimum of two persons.
Q17: Who runs the project on behalf of the Project Board?
A17: The Project Manager runs the project on behalf of the Project Board. The Project Manager has
the responsibility to produce the required products to the required quality within the specified times
and cost.
Q18: Name some of the skills that the Project Manager should have. Which of these skills are used
most often? (Tip: Think of the PRINCE2 Themes.)
A18: The Project Manager is required to have many skills, such as Communication, Cost
Management, Quality, Change Management, Requirements Analysis or User Needs, Planning,
Monitoring, Facilitating and Risk Analysis. Communication is said to take more than 70% of the
Project Managers time.
Q19: Which of the following Roles in a Project Team may not be required: the Executive, the Senior
User, the Senior Supplier, the Project Manager or the Team Manager?
A19: On smaller projects, the Team Manager may not be required. So the Team Members who
create the products can report directly to the Project Manager. The other four roles are mandatory.
Q20: Can the Project Manager be a member of the Project Board?
A20: The Project Manager cannot be a member of the Project Board.
Q21: Who has the responsibility to produce the products that were assigned in Work Packages by
the Project Manager?
A21: The Team Manager has this responsibility and also the responsibility to provide regular status
reports on their progress. This allows the Project Manager to monitor their work.
Q22: Can the Team Manager create their own Team Plans for their Team or do these have to be
created by the Project Manager?
A22: Team Plans are created by the Team Manager. The Project Manager can review the plans.
Q23: Look at the Process Model Diagram: How many times can the items in blue be executed or
done in the project?
A23: All blue items are executed once.
Q24: Look at the Process Model Diagram: How many times can the items in Green be executed or
A24: All green items are executed once for each stage. So if a project has four stages after the
Initiation stage, the items in green are mostly executed four times.
Management Plaza
34
Q25: Look at the Process Model Diagram: How many times can the items in Orange be executed or
A25: Orange items can be executed multiple times in a stage. e.g.: The Highlight report is what we
call a Time-Driven report. It can be sent each week during a stage to the Project Board and the
Project Board can give Guidance and Instructions to the Project Manager at any time.
Q26: This process is for Senior Management and shows how the Senior Management controls the
project. Which process am I referring to?
A26: This is the Directing a Project Process. It is where the Project Board sits.
Q27: This is a very short pre-project process that gathers the necessary data to start the project.
Which process am I referring to?
A27: This is the Starting up a Project Process and it can also be referred to as the SU process.
Q28: This process examines the justification of the project and creates the Project Initiation
documents. Which process am I referring to?
A28: This is the Initiating a Project process and it can also be referred to as the IP or Initiation
Process.
Q29: This process describes the PMs day-to-day monitoring and control activities. Which process
am I referring to?
A29: This is the Controlling a Stage Process. It is where the Project Manager does most of their
work.
Q30: This process provides a controlled way to complete a stage and plan the next one. Which
process am I referring to?
A30: This is the Managing a Stage Boundaries process, also referred to as the SB process.
Q31: This process delivers the products. It is where the products get produced by the team members.
Which process am I referring to?
A31: This is the Managing Product Delivery process, also referred to as the MP process. It is where
the Team Manager works.
Q32: This process confirms delivery of the products and prepares the project for closure. Which
process am I referring to?
A32: This is the Closing a Project Process or the CP process. Note: The Project Manager prepares
the project for closure but it is closed by the Project Board.
Q33: What is the name of the document that is written outside the project before the project starts?
A33: This is the Project Mandate and it is usually written by a senior person in the organization.
Q34: What does the project mandate document consist of? Name the one item that the product
mandate should contain and one other item.
A34: According to PRINCE2, the project mandate only has to suggest the Executive and the Project
Manager: Other information that can be added to the project mandate are:
The Main objective of the Project
The Business Case, which describes the reasons for the project
Project Scope in high-level terms
Customers quality expectations
If you know two parts, then it is good.
Q35: What is known to be the trigger to start the project?
A35: The project mandate document is known to be the trigger to start the project.
Q36: Which process has the project mandate as an input?
A36: The Starting up a Project process has the project mandate document as an input.
Q37: Name the two main deliverables of the Starting up a Project process, meaning what are the
main outputs of this process?
A37: The Starting up a Project process has two main deliverables:
Management Plaza
1.
2.
35
The Project Brief, which includes an outline of the Business Case and the Project
Management Team, Project Product Description, etc
Q38: Why do you think that Capture Previous Lessons is an activity in the Starting up a Project
process? Just answer in your own words why you think this is important.
A38: The organization and the project manager want to avoid making the same mistakes made in
other projects. Just imagine how red-faced the Project Manager would be if he made the same three
mistakes as in a previous project that was done just six months earlier in the same company. So the
project must learn from previous projects, from other people, and from other sources. This is a very
important point in PRINCE2 and it is even one of the 7 principles.
Q39: Which document is created by the Executive and addresses the following in the Starting up a
Project process?
1. Business value for the organization,
2. Company objectives,
3. Funding and
4. Risk Information.
This document is then expanded in a lot more detail in the next process.
A39: This is the Outline Business Case. It is a light version of the Business Case and it will be
included in the Project Brief document.
Q40: Why do you think the Outline of the Business Case document is written by the Executive and
not by the Project Manager?
A40: The Executive is responsible for, and owns, the Business Case. He will also know much more
about the value of the project for the organization and how to measure the value of the expected
benefits of the project. The Project Manager's main concern is to run the project as professionally as
possible and deliver the required products on behalf of the Project Board. The Project Manager
therefore may know very little about the business side of the organization and will get this information
from the Business Case document.
Q41: List three or four of the questions that the Project Manager will ask while creating the Project
Approach.
A41: First, the objective of the Project Approach is to gather the necessary data that will allow the
Project Manager to determine such things as the timescale, the cost of the project, how the project
can be controlled, and how to manage quality. So some of the questions they will ask are:
Are there similar projects to learn from?
What other knowledge and skills are required for the project and who has this knowledge?
Are their standards to use and if so, what are they?
What training will be required by the team that will build the products?
Should we develop parts of the project in house or outsource?
Should we build from scratch or update an existing product?
How will maintenance be done in the future?
What are the quality expectations?
As you can see, the answers to these questions will give important information to the Project
Manager, so they can know how best to approach the project.
Q42: The Project Approach becomes part of which document?
A42: The Project Approach becomes part of the Project Brief.
Q43: This document is the main document used to provide the necessary information to the Project
Board about the project so far. The Project Board will decide if the project will proceed to the
Initiation Stage. Which document am I referring to?
A43: The Project Brief provides this information and it is a collection of most of the information
gathered in the Starting up a Project process.
Q44: Who assembles the Project Brief?
A44:The Project Manager assembles the Project Brief.
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Q45: Name two of the parts that make up the Project Brief that were created in the Starting up a
Project process. So just think of what was produced in the Starting up a Project process.
A45: The Project Brief contains the following information:
1. A detailed Project Product Description (which includes quality expectations);
2. An Outline of the Business Case (which includes a summary of the known risks);
3. The Project Approach;
4. An Overview of Team Structure and Role Descriptions; and
5. The Project Objectives and Scope (which are updated from the project mandate document).
Q46: In which PRINCE2 process is the first check to see if there is a business reason to start the
project? In which other process is the Project Plan created?
A46: The first check to see if there is a business reason to do the project is done in the Starting up
a Project process, as the Outline of the Business Case is created in the Starting up a Project process.
The Project Plan is created in the Initiating a Project process.
Q47: Who creates the Stage Plan for the Initiation Stage?
A47: The Project Manager creates the plan for the Initiation Stage. This plan is also referred to as
the Initiation Stage Plan.
Q48: If the command to start the project came from a programme as opposed to corporate
management, then what effect would this have on the Starting up a Project process?
A48: Remember that a programme is set up to guide and control a group of similar projects.
Therefore, a lot of the work that is done in the Starting up a Project process will have already been
done, such as how to structure the project management team, which resources to use, lessons from
other projects, which approach to take and the business reasons behind the project. To summarize,
the programme will supply most of the information required by the Project Brief, so there will be a lot
less work to do in the Starting up a Project process.
Q49: What is the first decision taken by the Project Board, when they receive the Project Brief and
the Initiation Stage Plan as an input?
A49: They will decide if the project is worthwhile for the organization. Therefore, they will decide if
the project can proceed to the Initiation Stage. They do not give permission to start the project, only
to start the Initiation Stage, which will plan the project in detail and present much more detailed
information on the objectives, cost, plan, what exactly will be developed, the expected quality level,
and so on.
Q50: Looking at the diagram, what is the trigger for the Initiation Stage?
A50: The trigger for the Initiation Stage is the decision or authorization by the Project Board in the
Authorize initiation activity. So, if the Project Board does not give this authorization, then the Initiation
Stage cannot start.
Q51: The purpose of this process is to understand the work that needs to be done to deliver the
required products and to produce the project plan. Which process am I referring to?
A51: This is the Initiating a Project process, also referred to as the IP process.
Q52: Name five of the eight activities in the IP process. (Tip: Think of the four related documents
and the main documents that make up the Project Initiation Documentation.)
A52: The first four activities are creating the strategy documents, which are:
The Risk Management Strategy
The Configuration Management Strategy
The Quality Management Strategy
The Communication Management Strategy
Then the 5th is Set Up Project Controls, the 6th is Create the Project Plan, the 7th is Refine the
Business Case and the 8th is Assemble the Project Initiation documentation. You are doing well if
you know five of these.
Q53: Which document defines how and when the project will communicate to stakeholders?
(Tip: This is one of the strategy documents.)
A53: This is the Communications Management Strategy document.
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Q54: Which document defines how products will be managed during the project; who will own the
products, where the products will be stored; the naming convention to be used, how to identify and
track issues, and what records are to be kept for each product?
A54: This is the Configuration Management Document and it also defines how the issues will be
handled in a project.
Q55: What happens to the Outline Business Case document in the IP process that was created in
the SU process?
A55: This document is refined, meaning that it is updated and becomes a full Business Case
document. It also uses the information from the project plan, which is created in the IP process, as
the Business Case needs to know the cost of the project and how long it will take.
Q56: What do you think is the last thing that the Project Manager does in the IP process after they
have assembled the Project Initiation Documentation? If they don't do this then the project cannot
continue.
A56: The very last thing a Project Manager will do in the IP process is to give the Project Initiation
Documentation to the Project Board and then issue a Request to continue with the project. You can
see this in the Process Model diagram.
Note: The Project Board will also receive a copy the next Stage Plan from the first Managing a Stage
Boundary process.
Q57: Name four or five documents that make up the Project Initiation Documentation. (Tip:
remember that the Project Initiation Documentation is a collection of all documents produced in the
SU and IP processes.) If you can name five you are doing well.
A57: First of all, we have the Project Definition, the Project Approach and The Project Management
Team Structure, which were originally created in SU process.
From the IP process we have the Business Case and the Four Management Strategy documents,
which are Quality, Configuration Management, Risk and Communications.
The Project Plan, the Project Controls, and information on how PRINCE2 will be tailored to suit the
project also are a part of the Project Initiation Documentation.
Q58: Which document contains the following information: Describes how the project will be
monitored and controlled, tolerances between the different management levels, number of stages,
and the frequency of reporting between the Project Manager and Project Board.
A58: This is the Project Controls document.
Q59: Which document contains the following: A plan that describes each benefit and defines how
and when a benefit will be available and how to measure it.
A59: This is the Benefits Review Plan.
Q60: Which process normally happens after the Controlling a Stage process and can also happen
after the IP process?
A60: This is the Managing a Stage Boundary process, also known as the SB process.
Q61: The outputs of this process are the End Stage Report and the Next Stage Plan. Which process
am I referring to?
A61: The main outputs of the SB process are normally the End Stage Report and the Next Stage
Plan; otherwise it is the Exception Plan
Q62: What is the 2nd Control point for the Project Board? You can see this by looking at the Process
Model Diagram.
A62: Authorize a project is the 2nd Control Point and 2nd Activity for the Project Board. This is where
they evaluate the information in the Project Initiation Documentation and decide if the project can
continue or not.
Q63: Who gives authorization for the project to start and for the first stage after the IP stage to begin?
A63: The Project Board gives two authorizations; they are: 1) Authorize the project so the project
can start, and 2) Authorize Stage or Exception Plan. They also approve the Project Initiation
Documentation and give a Notification to the Corporate or Programme Management that the project
has started.
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Q64: Who does most of the work in the Controlling a Stage process?
A64: Most of the work performed in the Controlling a Stage process is performed by the Project
Manager. You can see from the diagram that the Controlling a Stage process is in the Management
level.
Q65: How many times does the Controlling a Stage Process normally happen in a project?
A65: This is a trick question as each project will be different and can have from two to many stages.
The number of stages depends on a number of factors, including the complexity of the products to
be produced.
Q66: What process does the Controlling a Stage process work with to deliver the specific products?
A66: The controlling a stage process works with the Managing Product Delivery process to create
and deliver the specific products. The project was started to create the specific products, which are
the products that users want from the project.
Q67: What contains information on one or more products to be developed, which includes such
information as product descriptions, planning data, and constraints? This becomes the agreement
between the Project Manager and the Team Manager.
A67: This is the Work Package.
Q68: Who creates the Team Plan to create the products in the Managing Product Delivery process?
A68: The Team Manager creates the Team Plan and the Project Manager can review them.
Q69: What is the name of the report created by the Team Manager on a regular basis to keep the
Project Manager up to date on the progress of the product development?
A69: This is the Checkpoint Report. It is a progress report of the information gathered at a Checkpoint
meeting.
Q70: For smaller projects where there is no Team Manager, who do the Team Members report to?
A70: The Team Members will then report directly to the Project Manager.
Q71: Name two of the four outputs from the MP process?
A71: The four main outputs of the MP process are:
Team Plan: This plan is prepared by the Team Manager and is the first output.
Checkpoint Reports: These are regular reports from the Team Manager to the PM
Quality Register: This register is updated, as each product is tested after development by
the testers. The Quality Register is also used by the Project Manager to check on progress.
Completed Work Package: This is the name given to the group of completed products that
are handed back to the Project Manager.
Q72: What is the name of the report that is sent by the Project Manager on a regular basis to the
Project Board during the Controlling a Stage process?
A72: This is the Highlight Report. It provides a summary of the stage versus the stage plan, and also
information on tolerances, potential issues, products completed, next work packages and corrective
actions.
Q73: What is the name of the report created by the Project Manager and sent to the Project Board
only if the current stage is forecast to go out of focus so that there is an issue to report?
A73: The name of this report is the Exception Report. It provides an overview of why the stage will
most likely go out of tolerance, and then includes different options to get the project back on track
and assess the impact on the Business Case, as this issue will most likely increase the cost of the
project.
Q74: If the Project Board agrees with the recommended option in the Exception Report, what will
they request next?
A74: The Project Board will request an Exception Plan, which will replace the current Stage Plan
and therefore allow the Project Manager to complete the current stage.
Q75: Why do you think the Project Plan is updated in the Stage Boundary process?
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A75: The Project Plan should always be updated during the project to show the true status or actual
progress of the project. The best time to do this is at the end of each stage, which is the Stage
Boundary process. So if you look at the Project Plan at the end of the Stage Boundary process you
will see:
Exactly what products have been developed to date
A forecast for the rest of the project, including a forecast for the next stage.
Q76: What is the name of the report from the Managing a Stage Boundary process that provides a
detailed report on the results of the Current Stage and compares the stage performance to the Stage
Plan?
A76: This is the End Stage Report.
Q77: Why is the business case updated in the SB process?
A77: At the end of a stage, it is a good time to update the Business Case and check if the project is
still viable and worth doing. From a business case point of view, you are interested to know if the
project cost will increase or decrease and how this will affect the business case. So it is a good time
to evaluate the business case after updating the Project Plan, which is also updated in the SB
process, as the timescale and cost information may have changed.
Q78: What do we mean by the Exception Plan in the Directing a Project activity?
A78: The Project Board can do one of two things in this activity:
They can Authorize the Next Stage; this happens if the current stage has been done
correctly and if they agree with the next Stage Plan; or
They have to Authorize an Exception Plan to allow the Project Manager to complete the
current stage.
Q79: In small projects, can the Authorization a Stage or Exception Plan activity be less formal?
A79: Yes, in small projects this activity can be a lot less formal. In fact, the Project Manager can just
arrange a meeting with the Executive to discuss the necessary topics.
Q80: Which 3 documents that are continually updated during the project would the Project Board
also view and consider during the Authorization a Stage or Exception Plan activity? (Tip: These
are updated during the Stage Boundary process by the Project Manager and one of these is a
register.)
A80: The 1st is the Project Plan, so the Board can compare where they are in the project, as
compared to the original plan. The 2nd is the Business Case, as the Executive needs to know that
the project is still worth doing. The 3rd is the Risk Register, as these will change throughout the
project and therefore will affect the project.
Q81: If the Project Board approves the Exception Plan, will the Project Manager start a new Stage
or complete the current stage?
A81: The objective of the Exception Plan is to complete the current stage. The Exception plan will
be necessary if the stage project went out of tolerance (e.g.: 20% more billable days than expected)
and the Project Manager has to get permission from the Project Board to complete the current stage.
Q82: What process follows the Controlling a Stage process in the final stage after all products have
been delivered?
A82: The last Controlling a Stage process in the final stage is followed by the Closing a Project
process instead of the Managing a Stage Boundary process.
Q83: Does the Project Manager close the Project or Prepare the Project for closure in the Closing a
Project process?
A83: The Project Manager will take the necessary actions to prepare for project closure. Only the
Project Board can actually close a project.
Q84: What is the name given to the instruction from the Project Board to shut down the project before
its expected end date?
A84: This is referred to as a Premature Closure. It is a notification sent from the Project Board to the
Project Manager to prepare the project for closure; this can happen anytime in a project.
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Q85: Can you think of an example where the Project Board might issue a Premature Closure?
A85: There is no one answer to this question: However, you should compare your answer to the
examples to confirm that you are on the right track:
e.g.: An important point of the Business Case was to be the first company on the market with a
new product, but the Project Board found out that a competitor will release a similar product 3 months
earlier, so they will stop the project.
e.g.: The EC may have passed a new environmental law that will become active in 6 months
and a large environment tax will be placed upon all products that don't meet these specifications.
e.g.: A civil war broke out in the main country where the raw material comes from; therefore,
prices have more than doubled. The price is not expected to drop for at least two years.
I hope you like these examples.
Q86: In the Closing a Project Process, what does the Project Manager do with all the Lessons that
have been learned in the project and have been documented in the Lessons Log?
A86: These lessons are placed in the Lesson Report document so they can be passed on and shared
with future projects.
Q87: Which report is created by the Project Manager in the Closing a Project process and compares
the project performance or project actuals with the original project objectives that are listed in the
Project Initiation Documentation?
A87: This is the End Project Report. It is shown as the ERP document in the diagram.
Q88: Why is the Benefits Review plan updated in the Closing a Project process?
A88: The expected benefits listed in the Business Case confirming that the Benefits have been met
during the project is an important control for the Project Board. The Senior User has the task of
confirming that benefits have been delivered to the Project Board during the project, but what
happens to the Benefits that wont be realized until after the project has been put into production?
e.g.: the project could have been to create a new Sales application for the company and one of
the benefits would be to have 20% of the orders via the Web. This will not be realized until the project
is complete and the product is in production for some time. So, the project manager or the Senior
User can update the Benefits Review plan to show what benefits have already been realized and
plan when the benefit review actions will take place after the project has completed: e.g.: in 6 months
or 1 years time.
Q89: What is the name of the document created in the Closing a Project process that includes
information on outstanding issues that are taken from the Issue and Risk Log and require follow-up
action after the project has ended?
A89: This is the Follow-Up on Actions recommendation and it is given to the group who will provide
support or maintenance to the products after the project is complete.
Q90: What documents do you think the Project Board review or approve in the final activity Authorize
a Project Closure? (Tip: Just think of the documents that the Project Manager gives to them at the
end of the Closing a Project process.)
A90: The Project Board does the following:
1. Review the End Project Report and compare them to the original plan.
2. Review the Lessons Report and pass it on so it can benefit future projects.
3. Review and approve the Benefits Review plan, as reviewing the benefits will continue to
be done after the project shuts down.
4. Confirm that the project has met the Business Case by comparing the current Business Case
to the original one and comparing Benefits, Cost, Risks and Return on Investment.
Q91: What is the very last thing that the Project Board does during the Authorize a Project Closure
activity?
A91: The Project Board issues the Project Closure Notification, which will announce to all
stakeholders that the project will end on a certain date.
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Appendix A
By Frank Turley
www.MgmtPlaza.com

Initiation
Notification
Project
Notification
Closure
Notification
close soon
Initiating a
Project (IP)
Pre-Project
Auth. project
closure
(SB) Managing a
Stage Boundary
Premature Close
End Stage Report

Next Stage Plan
or Exception Plan
Guidance & advise
Give ad hoc
direction
Highlight Reports
2 Proceed
Auth.
stage
Auth.next
Authorize Project
Approved PID
Project Init Docs

Auth. To Initiate

Authorize a Stage
or Exception Plan
Authorize
the project
Exception Report
Authorize
initiation
Closure Recommend.
End Project Report
FAR, Lessons Rpt
project
mandate
Management
Direction
Corp..
Exercise Sheets
A number of exercise sheets have been provided.
You can get these exercise sheets from our website (link).
See under the menu Free Downloads & select Process Model Exercises
.
Exercise 1: Line Direction Add Arrows
Closing a
project (CP)
Delivery
New WP
Work Package
Work Package

-- Once per stage
Work Package
Completed WP
Accept a WP
MP Outputs
Checkpoint Reports
Team Plans
Quality Register
By Frank Turley
www.MgmtPlaza.com
project
mandate
Pre-Project
______________
________________
(SB) Managing a
Stage Boundary
_______________
1______________
2______________
or _____________
_______________
2 Proceed
Auth.
_____________
____________
____________
Initiating a
Project (IP)
Auth. project
closure
Give ad hoc
direction
_________________.
_________________
_________________
__________________.
Authorize a Stage
or Exception Plan
Authorize
the project
_____________
______________
_____________
Authorize
initiation
______________
________________
Management
Direction
Corp..
Exercise 2: Add Management Products and Notifications
Closing a
project (CP)
Delivery
New WP
-- Once per stage
Work Package
Work Package
Accept a WP
Work Package
Completed WP
MP Outputs
_________________
_________________
_________________
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Appendix B
Simple Glossary
Acceptance Criteria
A list of criteria that the final output of the project must satisfy for the customer to accept it. Just
imagine a list of criteria arranged in the order of importance in a spreadsheet. Each entry should be
discussed and confirmed by both the customer and the supplier. Throughout the project, the
acceptance criteria can be refined and changed, but in the end, only when all the criteria are met and
each box is ticked off can the project can be closed.
Baseline
Once a product is baselined, it becomes a fixed reference for subsequent versions of the same
product. For example, the Project Plan is defined, agreed and signed off at the start of the project.
The Project Plan will be updated during the project to show what has been done. The Project Board
can compare the baselined Project Plan with the current project plan to see how well the project is
going as compared to the original expectations.
Another example: A mailing list for an event has been approved and will be baselined and given a
version number, so it cannot be changed. If changes need to be made to it, then a new version of
the mailing list must be created, as the baselined version cannot be changed.
Business Case
A document that explains the reasons for the project, in terms of cost, risks and benefits. It explains
in detail why the project should be done and why the final outcome is desired. During the project
lifetime, whenever a risk appears, the odds should be weighed against the Business Case to check
if the benefits still exist within the expected time and cost constraints.
For example, if a company is running a project to develop and implement a new CRM application,
the Business Case should include the improved efficiency for client management so more clients
could be handled within a certain period of time.
Another example: During the project, an important new requirement has been added to the project.
A new feature will be added to allow users to see if items they wish to order are in stock. This
connection to the stock application will cost an extra 30,000, so the business case must be updated
to reflect this increase in cost and see if the project is still worth doing.
Communication Management Strategy
It defines the method and frequency of the information exchange. During the start-up, the traffic of
communication and reporting may be higher. The Communication Management Strategy provides
an organized approach to deliver reports on a timely basis to those who need the information for
decision-making and/or other purposes.
E.g.: The Communication Management Strategy document may show that it has been agreed that
the Project Manager will send a two-page Highlight Report to the Project Board every two weeks on
a Thursday morning in a certain format.
Customer
The customer will specify the desired outcome of the project; will be the owner of the final product of
the project; will be representative to those who are going to use the final product; and will probably
pay for the project. Remember PRINCE2 is based on a Customer/Supplier environment and both
will be represented on the Project Board.
The term Customer can also refer to both User and Business interests.
Output
Outputs refer to the products that are delivered to the customer/user, and they are the reason why
the project is done. There are two kinds of products in a PRINCE2 project: Specialist products and
Management products.
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Specialist products are the outputs of the project and are given to the users. Management products
are created for the purpose of managing the project, e.g.: Project Plan, Business Case. These are
never given to users.
End Project Report
The End Project Report is the Project Managers report to the Project Board that confirms delivery of
outputs to the customer; provides an overview of what went well and not so well, a review of the
benefits as compared to the expected benefits that were listed in the Business Case, and a review
of how well the project went according to the Project Plan. It can also confirm that products have
been accepted by the customer.
End Stage Report
The Project Managers report to the Project Board that provides information on project performance
during each stage and the overall project status up to that point. It will also include a review of the
benefits reached so far, and a review of the Issues and Risks. An End Stage Report should contain
a forecast for the next stage. This will help the Project Board to decide whether to continue the project
or not. This can be a structured document, an email or a few slides.
Executive
The Executive is the chairperson of the Project Board, and represents the Customer. He or she is
responsible for the Business Case, and is the person responsible to ensure the project satisfies its
goals and delivers the intended benefits. The Executive is also responsible for making sure the
project runs within the framework of the Business Case and has the final say in the Project Board.
*Follow-Up on Action Recommendations

A report created by the Project Manager at the end of a project that puts together recommendations
on how to handle incomplete outputs, ongoing issues that are taken from the Issue Register, and
existing risks. E.g.: unfinished work, possible activities that should be done for some products. As
you can imagine, this can be very important for the persons who are going to take over the
maintenance of the products.
Highlight Report
A report on the stage progress prepared regularly by the Project Manager for the Project Board. The
frequency for this report is indicated in the Communication Management Strategy, e.g.: It may be
agreed that the Project Manager will send this every two weeks on a certain day and with a specific
format, which can be a 2- or 3-page overview.
The report can confirm that the stage runs within tolerances and the Project Manager can also point
out any foreseeable problems.
Issue
Any event related to the project that has already happened and requires the intervention of the
Project Manager or higher management. All issues that need to be handled formally will be first
examined and classified into one of three types of issues, and then entered into the Issue Register.
The three categories for an issue are: 1) a request for change, 2) an off-specification (something that
the supplier was not able to do as planned), and 3) a problem or a concern.
Issue Register
A log that captures and keeps track of all formal issues. It is regularly monitored by the Project
Manager throughout the project. Just imagine a spreadsheet where each line is an issue and there
are columns for Issue ID, Issue Type, Date Raised, Raised By, Description, Current Status, and
Close Date.
Lessons Report
A document that lists the lessons gained during the project. It helps to avoid possible mistakes and
to repeat positive actions in future projects. Any important lessons that can be applied to future
projects should be listed in the Lessons Report. This report is created by the Project Manager using
information from the Lesson Log and given to the Project Board always at the end of the project. In
large projects, it can also be created at the end of a stage.
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Product
Any input to a project or output produced during the project. A PRINCE2 project creates two kinds of
products, Specialist products and Management products. The creation of the specialist products is
the reason that the project was started and these are the products that will be given to the users.
Management products are documents used solely for the purpose of communication among the
project management team and managing the project. E.g. Project Plan, Business Case, so the Users
are only interested in the Specialist products.
Product-based planning
A PRINCE2 technique used to create a detailed plan that focuses on the required products before
even thinking about activities. There are four steps in Product-Based Plan:
Step 1: Write the Project Product Description: Just imagine the information you might see on a
web site about a laptop: Laptop Overview, Laptop Specifications and Features (including
information on Quality).
Step 2: Create Product Breakdown Structure: This is a sorted list in a diagram of all the parts that
make up the laptop, such as keyboard, mouse, memory, motherboard, hard-drive and case. You
may put keyboard & mouse under a branch labeled as Input devices.
Step 3: Write a Product Description for each part mentioned in the Product Breakdown structure:
For example, Hard-drive: overview information, specifications, features and quality information.
Step 4: Create Product flow diagram: This defines the sequence in which the Project Product will
be created. E.g.: A new Laptop prototype You may decide to start with products that are
manufactured in house and add products that are outsourced. The flow diagram must represent
the sequence of how the product will be created.
Product Breakdown Structure
A ranking list of all the products defined in the plan. The plan is broken down into its major products
and these products are listed in priority according to their dependencies.
E.g.: A Laptop Prototype: You would list and link all the parts that make up the laptop in a diagram,
such as keyboard, mouse, memory, motherboard, hard-drive and case. You might place keyboard &
mouse pad under a branch labeled Input devices, and you may have another branch for external
connection adapters, such video, USB, power, network, and earphone.
This can either be a top-down diagram or you can use a Mind-map.
Product Checklist
A list of all the major products to be produced, along with their dates of delivery.
Imagine a spreadsheet with a number of columns like Product ID, Product Title, Product Description
Approved Date, Draft Ready Date Plan & Actual, Quality Check Date Plan & Actual, and
Approved Date Plan & Actual.
This checklist is a great way to see how the project is progressing. Some Project Managers use this
as their main document for this purpose.
Product Description
Information on the products purpose, composition, derivation and quality criteria. A product is
defined as soon as its need is identified. Technical products, as well as management products,
should have product descriptions.
E.g.: Think of a Product Description for the hard drive of a Laptop. You will have an Overview
description: e.g., Features, Specifications, Quality Requirements (and how this will be tested), and a
list of parts.
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Product Flow Diagram

A diagram showing the order of production and the prerequisites for each product defined in the
Product Breakdown Structure.
E.g.1: Imagine you are building a new prototype laptop: The Product Flow Diagram may show that
you start with the bottom casing and then add the metal linings, the motherboard and the rest of the
parts in sequence until the laptop is built.
E.g.2: Think of an instruction diagram that comes with a flatpack piece of furniture from IKEA. This
is also a sequence of steps to create a product.
Project Assurance
The Project Board is responsible for monitoring the projects performance in the user, supplier and
business areas. To achieve this, the Board may decide to delegate its assurance functions to another
entity to make sure the project runs smoothly.
The best way to explain Project Assurance is to look at why we need it. The Project Manager may
be hiding information or providing misinformation to the Project Board; therefore, the Project Board
needs an independent view of how the project is really going so they can check if the products
reported to be created have actually been created. This is Project Assurance.
Project Brief
A document that contains the following information collected during the Pre-project process The
Starting up a Project. The Project Definition includes background information, time, cost, quality &
scope; and an Outline of the Business Case; Project Description; Project Team Structure and Project
Approach.
It is used by the Project Board to decide if they will continue with the initiation stage of the project
and therefore spend money; this is their first decision. It is not updated during the project.
Project Initiation Documentation
A set of documents that contain essential information to start the project; in other words, the
documents that were created during the Initiation Stage that describe how the project will be done in
detail. It includes the Project Plan, Business Case, 4 Strategy Documents, Risk Register, and Team
Structure, among others.
The Project Board reviews the Project Initiation Documentation in order to authorize the start of the
project. It is also used to communicate the project to its stakeholders. The documents in the Project
Initiation Documentation are subject to change throughout the project. After each change, every
document is baselined for future comparison. A good way to think about the contents of a PID is to
think of the Themes.
Project life cycle
The time between the start of the project and the acceptance of the product or the close of the project.
Therefore, follow-up maintenance and support is not part of the project life cycle but happens after
the project has closed.
Project management
The conducting of the project by planning, delegating, monitoring and controlling all sides of the
project in view of the project objectives by creating the project plan and then running the project
according to this plan. This includes the management of the human and nonhuman resources within
the limits of time, cost and quality.
Project management team
Defines the total management structure of the project from top to bottom, from the Project Board to
the Project Manager to the Team Managers and the support staff. It is a temporary structure solely
established to manage the project to a successful conclusion. The Project Management Team is
disbanded at the end of the project.
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46
Project Manager
The person appointed by the Project Board to manage the daily progress of the project to deliver the
end product within the limits set by the Board or, in other words, to run the project according to the
project plan as efficiently as possible, for example, by looking for opportunities to speed up the project
and reduce cost.
Project mandate
Information provided by the upper management outlining what is desired from the project. This is an
external document and is used as an input for the Starting up a Project process. This can be an
email, an internal memo, or a structured document. The project mandate can contain some basic
information on the business case, project tolerances, reasons for the project, who the executive
should be, and risk information.
The information in the project mandate document is expanded into the Project Brief in the Starting
up a Project process.
Project Plan
A control document for measuring progress. It shows the required products of the project, their
delivery dates and cost, as well as the quality objectives and how these will be achieved. It is not just
a Gantt chart but it contains product descriptions, product breakdown structure, responsibilities, how
stages are used, lessons, how the project will be controlled, tolerances, and quality information.
Quality Management Strategy
A plan of action that defines the quality requirements and the control methods for all the products in
the project. This document also confirms how the quality systems from the customer and supplier
are going to be applied in the project. This is created at the Initiation Stage and becomes a part of
the Project Initiation documentation.
Quality
A products ability to satisfy its intended properties by meeting expectations, requirements and
specifications. One of the first questions you should ask when defining the Project is what quality is
expected. For example, if you are developing a CRM system, some quality questions would be: How
easy should the product be to use? What percentage of features should work when launched (this
could be 99%)? The time delay to carry out specific activities, such as a search.
Documenting the quality requirements really helps to define the project product and therefore the
project.
Risk
An event that, if it occurs, may have a positive or negative effect on the projects objectives. Risks
are constantly reviewed during the project using the Risk Register. As projects are unique in nature,
they will have risks, and these need to be managed.
Risk Register
A log of possible risks that the project faces, this is kept up to date during the project by the Project
Manager. Imagine a spreadsheet with the following columns: Risk ID, Risk Author, Date Registered,
Risk Category, Risk Description, Impact, Proximity, Risk Status, Risk Owner.
Senior Supplier
Senior Supplier is a Project Board role that represents the interests of those who are going to deliver
the desired products. The supplier can be an in-house department or an external company. Their
main concern throughout the project is Can it be done? and Can it be done within the agreed time
and cost and quality?
Senior User
The Senior User is a Project Board role that represents the future users of the projects product. They
represent the Users Interests. The Senior User is responsible to ensure that the product satisfies
the quality and functionality requirements of the user. Their main concern throughout the project is
Will it Work as expected?
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Stage Plan:
A Stage Plan is created by the project manager and has a similar structure to the Project Plan, but
differs in two ways:
1) The project plan is very high-level, while the stage plan is much more detailed -- for example,
it can show what has to be done day to day.
2) The project plan lists all products that will be produced during the project, while the stage plan
is focused just on the products that will be created during a particular stage.
Stages (Management Stages and Technical Stages)
Management Stage: The section of a project that the Project Manager is managing on behalf of
the Project Board at any one time, at the end of which the Project Board will wish to review
progress to-date, the state of the Project Plan, the Business Case and risks, and the next Stage
Plan in order to decide whether to continue with the project.
Technical Stage: A method of grouping work together by the set of techniques used or the
products created. This results in stages covering elements such as design, build, and
implementation. Such stages are technical stages and are a separate concept from management
stages.
There are two types of stages Management Stages and Technical Stages.
Management Stages: A PRINCE2 project is divided into stages and each stage is separated by
a decision from the Project Board to continue to the next stage or not.
A Technical Stage is a grouping of a certain set of techniques used in the development of the
product.
One difference is that Management Stages can never overlap while the Technical Stages can,
e.g.: Designing, Building and Training may overlap.
So how can the Project Manager manage Technical Stages from PRINCE2?
The PRINCE2 Project Manager uses Management Stages so they see which products are
created in the Technical Stages and place these in the corresponding Management Stage.
E.g.: There may be a Training Technical stage that spans two Management Stages, and the final
output is approved training material. So the Project Manager looks to see how they can divide
this work into two separate Management Stages. A solution can be to split the product into 2
products, a first product could be Draft Training and the complete product could be
the Approved Training Material. Therefore, the Draft Training product could be produced in the
first Management Stage, and the Approved Training Material product is produced in the next
Management Stage. (See page 106 for more information on this.)
Team Plan
A Team Plan is created by the Team Manager to plan the execution of the activities that are agreed
with the project manager. Team Plans are optional. These activities are grouped together into Work
Packages and a Team Plan can be for one or more Work Packages.
PRINCE2 does not provide a format for a Team Plan and the Team Manager can use a simple task
list in Excel, MS Project, or could create a plan that looks like a stage plan. In most projects the
Project Manager may request to review the Team Plan to get a better idea of how the work will be
done.
Tolerance
The estimated time and cost allowance in the project plan to tolerate possible deviations without the
need of the Project Board intervention. Imagine if there was no tolerance in a project. For every small
issue that the Project Manager would have, they would contact the Project Board. This would happen
many times each day and the Project Board would end up running the project.
The Project Board members are very busy and don't want to be bothered every hour by the PM, so
they give them tolerances for time, cost, quality, benefits, scope and risk, and let the Project Manager
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48
get on with it. They are told to alert the Project Board only if it has been forecast that the project could
go above one of these tolerances.
User(s):
The end users of the projects final deliverable; they will receive the benefits of the project.
Work Package:
Work Packages are a way for the Project Manager to group work activities together and assign work
to a team or Team Manager to produce one or more products. A Work Package is therefore a set of
information about one or more required products. A Work Package can contain the following: a Work
Package description, product descriptions, techniques to be used, tolerances, date of agreement
between PM and TM, how the TM will report to the PM, and Quality information.
Management Plaza

Introduction To PRINCE2

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The #1 introduction book to PRINCE2

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Copyright 2013 Frank Turley

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An Introduction to PRINCE2 ................................................................................................... 1

Course Objectives Classroom Preparation Course ..................................................... 1

Course Contents .............................................................................................................. 1

Project Organization Introduction ............................................................................. 1

What is a Programme? ............................................................................................ 2

Organization Roles .......................................................................................................... 2

The Executive Role .................................................................................................. 2

The Senior User Role ............................................................................................... 3

The Senior Supplier Role ......................................................................................... 3

The Project Manager Role ....................................................................................... 3

The Team Manager Role ......................................................................................... 3

The PRINCE2 Process Model Diagram .................................................................................. 4

Process Model Diagram Introduction .............................................................................. 4

Process Model Using Color ............................................................................................. 4

Four Management Levels ................................................................................................ 5

Process Model Processes ............................................................................................ 5

Exercise Diagram ............................................................................................................ 6

The PRINCE2 Process Model ................................................................................................ 7

Pre-Project / Project Mandate ......................................................................................... 7

Project Mandate Contents ............................................................................................... 7

SU: Starting Up a Project ................................................................................................ 8

Starting Up a Project: Two main deliverables .......................................................... 8

Starting Up a Project Activities ................................................................................. 8

SU: Project Approach ...................................................................................................... 9

SU: Assemble Project Brief ........................................................................................... 10

SU: Plan the Initiation Stage.......................................................................................... 11

Plan the Initiation Stage Tasks............................................................................... 11

Request to Initiate a Project ................................................................................... 12

DP: Authorize initiation ........................................................................................... 12

IP: Initiation Stage ......................................................................................................... 13

Initiating a Project Process introduction ................................................................. 13

Initiating a Project Process 8 Activities ............................................................... 14

IP: Project Initiation Documentation (PID) ..................................................................... 15

Project Initiation Documentation ............................................................................ 15

SB: Managing a Stage Boundary after the Initiation Stage ........................................... 16

DP: Authorize the project............................................................................................. 17

CS: Controlling a Stage ............................................................................................... 18

CS: Controlling a Stage / Managing Product Delivery ................................................ 19

Assign Work to Teams using Work Packages ..................................................... 19

Managing Product Delivery Objectives ................................................................ 19