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Introduction to PRINCE2

Dimitrovski Dejan M.B.A.

Webster University Vienna

Fall 2, 2011

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What is PRINCE2 PRojects IN Controlled Environments Project management methodology Can be used to manage all

kinds of projects, but mainly used with IT related projects

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Why Project Management Methodology Imagine you are a Personal Assistant of a VIP You are assigned a very simple “project” to

take care of

“I have too much stress at work!!!I want to go away for a while very soon, so

please organize some trip for me. The price is not a problem but it has to be a

good value deal”

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A Failed Project Canadian Firearms Registry

System to register all gun owners in Canada Initial Cost Estimate (1995) - $119 million

$117 million from licensing fees $2 million taxpayers money

Cost over projects life time 2001 - $527 million 2002 - $629 million 2005 - around $2 billion (registration fees $140 million)

Initiative to abolish the Registry Discussion as early as 2006 2011 – A bill proposed that abolishes the Registry and

all records kept to date

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A Failed Project

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WHY Project Management Methodology Projects fail! Every project starts off with success in mind,

however many of them fail to deliver The bigger the scope of the

project, the more challenging it becomes to complete it successfully

Big projects = Big €€€

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Why do projects fail? Non existence of a valid Business Case for a

project Required project outcomes poorly defined Lack of communication among key

stakeholders and interested parties Poor estimation of duration and costs Inadequate resource planning and allocation Lack of quality control And the list goes on and on…

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Why projects wouldn’t fail with PRINCE2 PRINCE2 itself does not guarantee successful

projects but provides project managers with established and proven best practices for successful projects

PRINCE2 is about having control over the project life cycle, regardless of the final project outcome (positive or negative)

PRINCE2 has a proactive approach to project management that makes project managers able to accommodate sudden unexpected events

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History of PRINCE2 PRINCE established in 1989, CCTA* Developed from an existing project

management method PROMPTII Major revision PRINCE2 released in 1996 PRINCE2 revisions in 2005 and 2009 Nowadays it is the de facto standard used by

the UK Government and in many multi national corporations

*Central Computer and Telecommunications Agency (UK government organization)

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PRINCE2 Principles Continued business justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailored to suit the project environment

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Benefits of using PRINCE2 Benefits for the project Benefits for the project manager Benefits for other stakeholders Benefits for senior management

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Benefits of using PRINCE2

Benefits for the project Controlled and organized start, middle and end Good communication channels of all stakeholders Regular reviews of progress against the project plan

and the Business Case Benefits for the project manager Benefits for other stakeholders Benefits for senior management

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Benefits of using PRINCE2 Benefits for the project Benefits for the project manager

Established terms of reference Defined structure for delegation, authority and

communication Ensure resource commitment from key

stakeholders Keep meetings with management and

stakeholders to a minimum Benefits for other stakeholders Benefits for senior management

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Benefits of using PRINCE2 Benefits for the project Benefits for the project manager Benefits for other stakeholders

Participate in all the decision making of a project Have up-to-date project progress report Ensure their requirements are satisfied

Benefits for senior management

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Benefits of using PRINCE2 Benefits for the project Benefits for the project manager Benefits for other stakeholders Benefits for senior management

Management by exception Involvement only if a project deviates from it’s

plan

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PRINCE2 Terminology BUSINESS CASE Information (document) that justifies the

setting up, continuation or termination of the project

“Why should we sponsor this project?” It is updated at pre-defined key stages

throughout the project

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PRINCE2 Terminology PRODUCT Everything that the project has to create or

change, however physical or otherwise it may be

It can vary from physical items such as building, machinery, etc, to intangible things such as culture change, public perception, etc.

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PRINCE2 Terminology CUSTOMER A person or group that has commissioned the

work and will be benefiting from the end results

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PRINCE2 Terminology SUPPLIER A person or group that is providing specialist

resources and skills to the project or is providing goods and services to create the project outcome required by the customer and/or users

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PRINCE2 Terminology USER Person or group who will use or operate the

final product In some situations, the customer and user

may be the same group of people

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PRINCE2 Terminology PROJECT MANAGER Person or group who will be responsible for

project planning, organizing and controlling The Project Manager selects people to do work

on the project and makes sure that the work is done properly and on time

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PRINCE2 Terminology PROJECT SUPPORT Person or group who are responsible for administrative

services, advise and guidance for Project related tasks On smaller projects this is typically the Project

Manager, but if the project is more complex it could be a separate person (PM Assistant)

CENTRE OF EXCELLENCE Person or group who can provide

Expertise on project management techniques Advise on project areas like Quality, Planning, Risk mngt,

etc. A central filing system for a project

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PRINCE2 Terminology PROJECT BOARD A group consisting of the Customer, a Senior

User and a Senior Supplier The Project Manager needs to report regularly

to the Project Board to keep them informed of progress and/or foreseeable problems

The Project Board needs to provide the Project Manager with the necessary project decisions

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PRINCE2 Terminology PROJECT A management environment that is created

for the purpose of delivering one or more business products according to a specified Business Case

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PRINCE2 Terminology PROJECT A management environment that is

created for the purpose of delivering one or more business products according to a specified Business Case

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PRINCE2 Terminology PROJECT A management environment that is created

for the purpose of delivering one or more business products according to a specified Business Case

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Project Characteristics A finite and defined life cycle Defined and measurable business products A corresponding set of activities to achieve

the business product A defined amount of resources An organization structure with defined

responsibilities to manage the project

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Product vs Project Life Cycle

IdeaStudyTrigger

SpecifyDesign

DevelopTest

Change Over

Asses valueUse

Scrap

Product life span

Project LifeCycle

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Product Benefits Projects are focused on delivering Products to

meet the specified Business Case The Product benefits can take different forms

Financial (increased profit, reduced costs) Strategic (move the organization towards it’s

goals) Legislative (fulfill a requirement laid down by a

head office or government)

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Feasibility study Recommended approach with PRINCE2 is to

carry out a feasibility study in a separate and distinct project

ProblemDefinition Investigation Development

of Options

Submission of Recommendatio

ns

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Process Based Approach PRINCE2 uses a process based approach to

project management Each process defines the management

activities to be carried out during the project PRINCE2 is based on certain principles and

themes (components) that are incorporated into the seven processes

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PRINCE2 Themes (Components)

Project

Business Case

Organization

Quality

PlansRisk

Changes

Progress

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PRINCE2 Principles Continued business justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailored to suit the project environment

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PRINCE2 Processes1. Starting up a Project2. Directing a Project3. Initiating a Project4. Controlling a Stage5. Managing Stage Boundaries6. Managing Product Delivery7. Closing a Project8. Planning*

*Planning as a separate stage is taken out from the Prince2 2009 Revision

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PRINCE2 Processes

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1. Starting Up a Project Pre-project process Ensure that the prerequisites for initiating a

project are in place The project management team is designed Establishing of

Business Case Project Approach (in general terms how a solution

will be provided)

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2. Directing a Project This process runs from the ‘Starting up a

Project’ until the ‘Project Closure’ This process is aimed at the Project Board

(senior management) The project board is responsible for

Authorizing the initiation of a project Approving the Project Initiation Document Stage Plan Monitor progress, react to major project threats Project closure

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3. Initiating a Project At this stage it is defined how the required

Product quality will be achieved Plan and cost of the project is established Revise the Business Case (if necessary) Encourage the Project Board to take

ownership and commit resources for the Project

Key product of this process is a Project Initiation Document Includes a Project/Stage plan

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4. Controlling a Stage

This process is about monitoring and controlling each Stage of the project

In each Stage there is a cycle of Authorizing work to be done Gathering progress information about the work Watching for changes Reviewing Reporting Taking corrective action

The Stage Plan is updated throughout this cycle according to needs and/or unexpected events

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5. Managing Stage Boundaries This process produces information that will be

used by the Project Board to decide whether to continue with the project or not

The objective is to assure the Project Board that all the tasks in the current Stage Plan have been completed as defined

Outcomes of this process include End Stage Report The next Stage Plan If needed, revised Project Plan If needed, updated Business Case

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6. Managing Product Delivery This process is to ensure that planned

products are created and delivered in each Stage of the project

Outcomes of this process are Team Plans Quality Log updates Project Issues Checkpoint Reports

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7. Closing a Project The purpose of this process is to execute a

controlled close to the project Objectives of this process are

Assess the extent to which the objectives in the Project Initiation Document have been met

Assess to what extent the expected Products have been handed over and accepted by the Customer

Confirm maintenance and operation arrangements are in place

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Process and Component links

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Questions