Corp/Prog Project Mandate Corporate or Program Management

Pre-Project Initiation Stage Production Stage I Production Stage II

Starting Up a Notification Notification Directing a Project (DP) Notification Notification
Project (SU) Premature
Authorize A Premature
Authorize Authorize Authorize A Stage Authorization Give Ad-Hoc Stage End Authorization Give Ad-Hoc Stage End Authorize
Direction

Initiation The Project or Exception Plan Direction Stage or Direction Project Closure
Project Brief Exception Plan
Initiation Stage Plan

Project Initiation Highlight Report or

Appoint Executive Next Stage or Next Stage or Highlight Report or
Document Exception Report
& Project Manager ExceptionPlan ExceptionPlan Exception Report
Escalated Issues

Capture Previous
Lessons Initiating a Manage a Controlling Manage a Controlling Close
Project (IP) Stage a Stage (CS) Stage a Stage (CS) Project (CP)
Design & appoint
Proj. Man. Team Prepare Risk Boundary Authorize Work
Boundary Authorize Work Prepare
Man. Strat. (MSB) Packages (MSB) Packages planned closure
Select Project
approach & Plan the next Plan the next
Prepare Quality Stage Or, Prepare
assemble the Man.Strat Stage Receive Receive
completed Work completed Work premature
Project Brief packages closure
packages
Prepare Or, Produce an Or, Produce an
Prepare outline exception plan exception plan Hand over
Configuration Review work Review work
Business Case Man.Strat. products
package status package status
Management

Update the Update the

Prepare Project Plan Evaluate the
Plan Initiation Communication Project Plan Capture and Capture and
Stage examine issues examine issues project
Man.Strat Update the
Update the & risks & risks
Business Case Business Case Recommend
Set-up Project project closure
Controls Review Stage Review Stage
Report Stage Status Report Stage Status
End End
Create project
plan Take Corrective Take Corrective
action action
Highlight Report
Refine the Work Package
Business Case Report End Stage Report Report
Highlights Exception Report Highlights
Assemble The Issue Report
PID Update Issue Register
Escalate issues Update Lessons Log Escalate issues
and risks Lessons Report and risks
Product Status account

Business Case Project Initiation Document

Exec Summary Extracts from P.Brief
Delivery

Reasons Risk Man. Strategy Manage Product Delivery (MP) Manage Product Delivery (MP)
Project Mandate Expected Benefits Quality Man. Strategy
Expected dis-benefits Config Man. Strategy Accept Work Execute Work Deliver Work Accept Work Execute Work Deliver Work
Project Brief Timescale Communication
Project Definition Costs Man.Strategy Package Package Package Package Package Package
Outline Business Case Investment appraisal Proj Man Team structure
Four Management levels:

Proj. Product. Description Major Risks Role descriptions

Proj. Approach Plan (Stage, Project, Team) Detailed Business Case Highlight Report
PMT Structure Plan description Project Plan Date
Role descriptions Additional work estimates Update / close
Prerequisites Project Controls Reporting Period
References Dependencies Checkpoint Report Project Plan
Status Summary Acceptance Records Configuration item records
Assumptions Next Stage Plan Products & work packages Date, period
Initiation Stage Plan (See Project Product Benefits review plan
Lessons Benefits Review Plan This reporting period Follow-ups Description)
Monitoring & control This/next reporting period Registers:
Daily Log Next reporting period Issue Register,
Budgets Configuration Item Records Project & Stage tolerances Work Package tolerance End Project Report
Tolerances Issue Register status Quality Register,
Lessons Log Requests for Change Follow-on actions rec’s Risk Register,
Prod. Descriptions Quality Register Key issues & risks Issues & risks Lessons report
Schedule Risk Register Daily Log
Lessons Report
Based on AXELOS PRINCE2© material. Reproduced under license from AXELOS. PRINCE2® 2009 Hand-out© - page 1 - Copyright Student Regitration LLC 2012 v1.2 GKE
 The four integrated elements of PRINCE2 Tolerances: Project assurance is responsibility of
project board; Checking on all aspects of
Tolerances on the 6 project objectives Time
Seven Principles help delegate authority - Management project performance
Seven Themes Seven Processes Tailoring PRINCE2 to
1. Continued business justification 1. Business Case (Why?) 1. Starting Up A Project (SU)
by Exception. Benefit Cost
2. Learn from experience create fit with project Quality assurance is responsibility of
2. Organization (Who?) 2. Directing A Project (DP) environment and context Tolerance Area/Management Prod.: Corporate or Programme management
3. Defined roles and responsibilities Business Case (B) Risk Quality (Quality policies outside the project). It
3. Quality (What?) 3. Initiating a Project (IP) of the project.
4. Manage by stages 4. Plans (How? How Much? When?) 4. Controlling A Stage (CS) Project Plan (T,C,S) Risk.strat.(R) provides stakeholders with confidence
5. Manage by exception Scope that quality requirements can be fulfilled
5. Risk (What if? ) 5. Managing Product Delivery (MP) PRINCE2 can be Stage Plan (T,C.S.R)
6. Focus on products Work Package (T,C,S,R) Quality assurance should not be confused
6. Change (What’s the impact?) 6. Managing Stage Boundaries (MSB) tailored to any type or
7. Tailor to suit the project 7. Progress (On Target? Tolerance?) 7. Closing a Project (CP) (Project) Product Description (Q) with Project Assurance. Project assurance
environment. size of project. refers to the Project Board’s accountability
(Scope tol.of plans defined by products)

Business Case Quality The Quality Audit Trail Quality planning: to control quality, there must be a plan
Risk Threat Opportunity
Purpose is to judge if project is/remains desirable, Purpose of Risk theme is to identify, assess and Responses Responses
From Customer Project defining the products required of the project, with their
viable, achievable. Projects products enable business respective quality criteria, quality methods (including effort control uncertainty and, as a result, improve the
to acheive benefits: Project Customer’s Quality Response ability of the project to succeed. In the context of a Avoid Exploit
required for quality control and product acceptance) and the
Outputs expectations quality responsibilities of those involved. project, it is the project’s objectives that are at risk.
Output: project’s specialist products Reduce
Quality Expectations in broad terms (Robust, fast, etc.). These will include completing the project to a (probability and/or
Outcome: derived from using project’s outputs Acceptance Acceptance Criteria are Measurable; Rated: MoSCoW number of targets, covering time, cost, quality,

Quality Planning
Enable Criteria impact)
Benefit: measurable improvement perceived by Expectations & Criteria are in Project Product Description scope, benefits and risk. Enhance
stakeholders. Quality Quality assurance : Fallback
Business Project Product Quality Managem. Establishes and maintains a Risk Appetite: an organisations attitude to risk (reduces impact only)
Objectives depend on project type:
Changes Create Description Strategy Components quality management system taking. Risk tolerance: amount of risk that is
Reviews a projects acceptable Transfer
Feasibility study Product Quality Criteria organization, processes, (reduces impact only,
Compulsory project Descriptions and Tolerances products to assess if quality and often only the
Also Cause Desired PRINCE2 will be met. Risk Management procedure: financial impact
Not-for-profit project Outcomes Product Based Quality assurance is independent Identify context; obtain information on
Quality Methods Share
Evolving project Planning of the Project Management project to understand specific
Technique Team,it is a corporate objectives at risk and formulate Risk
Customer/supplier project Measured in responsibility, but quality Accept Reject
Side effects Quality Management Strategy.
Multi-organization project. Responsibilities planning and control are done by
and the project. The project is Identify risks; recognize the threats and Risk Owner: responsible for management,
consequences Realize opportunities that may affect the monitoring, control of all aspects of a risk,
responsible that quality

Communicate
further Benefits Quality Register including implementation of responses.
BC lifecycle: assurance is arranged. project’s objectives.
Risk Actionee: caries out actions
Develop: get information to make Quality control focuses on the Assess threats and opportunities to the
decisions (SU & IP) Result in
operational techniques and activities project in terms of probability and Summary risk profile
Product used by those involved in the project to:
Verify: assess if project is (still) Helps acheive PRINCE2 quality impact. Risk proximity describes how Very high Num
1 3
one or more Quality Fulfil the requirements for quality quickly risk can materialize . be
worthwhile (CS) Dis-
review (for example, by quality High 2 Risk rs from
Regis
4
technique Quality Approval Control inspections or testing) Plan; prepare management responses to Medium 8 ter
6
Maintain: Update costs, benefits and benefits Records Identify ways of eliminating causes threats and opportunities;remove/ Low 10
forecasts (MSB) of unsatisfactory performance (for reduce threats, maximize opportunities. 7
Confirm: if benefits are/will be Strategic example, by introducing process Very Low 9 5
Objectives Acceptance Implement; action risk responses,
Realized, mostly post-project. (MSB, Records improvements as a result of Prob Very Very
lessons learned). monitor effectiveness, take corrective Low Medium High
CP, post project) action Impact Low high

Organization Plans Corporate or The purpose of Plans is to facilitate communication Progress Corporate or programme
Business Executive: looks after business interests; products to meet program plan management
and control by defining means of delivering products; Progress describes mechanisms to: monitor and compare
business needs, value for money. the where and how, by whom, and estimating the achievements against plans, forecast project’s objectives and
Senior User: represents users requirements on project’s outputs; who: Project Plan viability, control deviations within tolerances, escalate Project Project Progress/
when and how much). tolerances exceptions
- Will use the project outputs to realize benefits after the project deviations outside tolerances.
- Will operate, maintain or support the project’s outputs (Initiation) (Delivery) It contributes to the principles “Managing by stages”,
- Will be impacted by project outputs Exception Plans (As nescessary) Project Board
Stage Plan Stage Plans “Continued business justification”, “Manage by exception”. It
Senior User specifies outputs and ensures delivery. can be monitored at Work Package, Stage and Project level.
Supplier: represents those who will provide skills and produce project Team Plans Three levels of plan for three different levels of Each level of the PMT can check the next level: Stage Stage progress/
product. (Optional, free structure) management; Project, Stage and Team. The Initiation Monitor progress Tolerances exceptions
Corporate or program management Change Authority: Board Stage Plan is created (with the Project Brief) by Compare level of achievement with plan
can delegate authority for Design the plan Review plans and options against future situations
(during Plan the Project)
Starting up a Project (influenced by corporate or
Project RFC’s or off-spec’s. Detect problems and identify risks Project Manager
programme plans). The Project Plan is created during
Manage- Project Board Severity ratings in Define & analyse Initiation (in the PID). Following Stage Plans created Initiate corrective action
ment Senior Business Senior Configuration Man. Authorize further work. Work Package
products by Managing a Stage Boundary. Team Plans created Work Package
Team User Executive Supplier Strategy list who handles progress/
Team Plan (optional)

Proj.prod.descr. (proj plan)

by Managing Product Delivery(Accept Workpackage). Tolerances are permissible deviations above and below a Tolerances
Issues
(PMT) requests : Prod. Breakdown plan’s target for time and cost without escalating to the next
Corporate/programme Prod. Descriptions Benefits Review Plan covers activities during and after level. There may also be tolerance for quality, scope, benefit
Change Prod. Fow Diagr.
the project that check if Business Case benefits have Team Manager
Analyse Risks

Project and risk. Exception is when it can be forecast that there will be
Project Plan

Project Authority management

Stage Plan

Manager been acheived. It may be part of a corporate or a deviation beyond the agreed tolerance levels.
Assurance Project Board Identify Activities and
Repeated for

dependencies programme plan. The Benefits Review Plan covers

Project Change Authority corporate, project and stage levels. Created during Specialist work aligned to management stages
Team Support Project Manager. Initiation, updated during Managing a Stage Management Stage 1 Management Stage 2 Management Stage 3 Management Stage 4
Prepare Estimates Boundary
Manager Delegated authorities are Specification
Peripheral
written into role An Exception Plan is a plan prepared for the Over all design
Detailed Design Commissioned
Team Members descriptions. Prepare the schedule appropriate management level to show the actions design Built facility Facility
Project Assurance: Project Board Checks all aspects of the project’s required to recover from the effect of a tolerance Training
performance independent of Project Manager. PB members are responsible Syllabus
Document the plan
deviation. If approved, the Exception Plan will replace Trained Staff
for aspects of Project Assurance from their respective areas: business, user the plan that is in exception(Stage or project).
or supplier. If they have no time or skills they appoint separate individuals
Project Manager: responsible for day-to-day management of project within
constraints set by Project Board. Project Manager ensures that project Change
produces required products within set tolerances. To identify, assess and control any potential changes to the baseline and get Configuration management is the administrative activity concerned Steps: Establish Controls, Set-up a
Project Support: Responsibility of Project Manager. He can delegate work them approved or dis-approved. Issue and change control is the continual with maintaining a controlled configuration throughout the life of a product. Configuration Management procedure and set-
to Project Support: administrative services, they advice on project activity throughout the project that identifies possible changes. Without Baselines are management products, once approved they are subject to up a Change Control procedure, ( Also see
management tools, configuration management, provide specialists for ongoing effective issue and change control, a project will become Change control (Benefits review plan, Business Case, All Strategies in the Change Authority in the PMT descriptions).
planning or risk management. unresponsive to stakeholders or drift out of control. Issues cover all relevant PID, plans, (Project) product description, Brief, PID and Workpackage) A change budget prevents that Project’s or
Team Manager: ensures creation of products in workpackage. Role may be events; Concern, Request for Change, or Off-Specifications Procedure: Planning, Identification, Control, Status acc., Verification & Audit Stage tolerances are “eaten” by changes.
combined with PM
PRINCE2® 2009 Hand-out© - page 2 - Copyright Student Registration LLC 2012 v1.2 GKE
Based on AXELOS PRINCE2© material. Reproduced under license from AXELOS.
 Starting Up a Project Managing Stage Managing Product
Directing A Project Initiating A Project Controlling a Stage
(SU) Boundaries Delivery Closing a project
(DP) (IP) (CS)
(MSB) (MP) (CP)

During Start Up an outline

Business Case is compiled Consecutive versions of
together with the Project the Business Case are After planning the project After the next stage is
Business End Product. approved during: and setting-up project planned The project Plan The business case is
Issues are identified that
controls the Detailed may impact the Business The Benefits Review Plan
Case Authorize Initiation and Business Case are verified against issues and Case (See Controlling A is updated
This is used to judge the Authorize Project Business Case is created updated including the risks
viability and feasibility of together with the Benefits Stage) (CS)
Authorize Stage or Benefits Review Plan
the project Exception Plan Review Plan

During StartUp the first Once the Project Board

action is to appoint a confirmed project closure
Project Executive and a
Project Manager.After The PMT structure and During IP some extra roles Some role adjustments are the resources can be
Organization may be described in the released from the project.
examining lessons from roles are approved as part strategies for Quality, Risk possible for a following - - A review of team
earlier projects the Project of the Project Brief and the and Configuration stage performance will be part
Management Team (PMT) PID
Management of the project evaluation
is designed and appointed

A Quality Management
The Quality Theme is Project Product Product Descriptions are Quality issues are dealt
Strategy is created.
triggered during SU when Description (SU) and made or updated with within tolerances or
Quality The Project Product Quality Review Technique Acceptance records are
the Project Product Product Descriptions (IP) Quality review is planned escalated to the Project
Description is improved is used to accept products obtained
Description is made with are approved (Baselined) and the Board
and Product Descriptions
the Quality Expectations by the Project Board are generated also the Quality Register is updated
and Acceptance Criteria Quality Register is created
Approval of:
Initiation Stage Plan (SU),
Project Plan (IP), Stage Plan and Project
Stage Plan (MSB) Work Packages are
Plans The last step during Start Plans are designed and Plan are used to control
Exception Plan (MSB) Stage or Exception Plan is progress accepted and optional Project Plan is updated
Up is the making of the Updated Project Plan overall Project Plan is created
Initiation Stage Plan (MSB), created Work Packages are Team Plans are created
Benefits Review Plan (IP, created
MSB)

Approval of Risk
During Start Up some Management Strategy, Handover of Risk
Risk major risks may be Risk planning, Risk Prepare the Risk Manage Risk Manage Risk Manage Risk Register, evaluate and
identified as part of the Tolerances and Risk Management Strategy feed Lessons Learned
outline Business Case Budget

Prepare the Configuration

The Quality Expectations Handover of products
Change in the Project Product Approval of Configuration Management Strategy & according to the
Management Strategy & establish procedures for Manage issues Manage issues Manage issues
Description may provide Configuration
Configuration
clues to implementing this setting the Change Budget Management Strategy
Management, issue &
theme during Initiation change control

Define Management
Progress Project tolerances are set Stages, establish event- Update Project Plan & set Monitor Progress against
Stage tolerances are set Monitor Progress against Stage and optional Team Evaluate project and feed
by Corporate or Program driven and time-driven stage tolerances in Stage
by the Project Board Stage Plan Lessons Learned
Management controls. Format highlight Plan Plan
and checkpoint reports
PRINCE2® 2009 Hand-out© - page 3 - Copyright Student Registration LLC 2012 v1.2 GKE
Based on AXELOS PRINCE2© material. Reproduced under license from AXELOS.