PRINCE2 (Projects In Controlled Environments) provides a common, structured method for effective project management, it is the de facto UK government standard, is widely recognised and used within the UK and abroad. PRINCE2 embodies proven, good practice in project management and can be applied to any project of any scale, encompassing the organisation, management and control of projects.
Project failure rates according to a number of research reports are not very optimistic, e.g. seven out of ten UK government projects failing despite a £14 billion annual IT spend [1]. The reasons for failure vary, from inadequate planning, insufficient definition of the business case or required outcomes to lack of quality control causing delivery of products which are unacceptable or unusable.
Hence it is a vital to adopt a standard project management method to provide a common term of reference for all stakeholders to be aware of their mutual responsibility, accountability, authority, what's expected from them, why the project was started in the first place, what the end product will be, what work will be carried out to achieve that and the responsibility of each party in contributing to that product.
PRINCE2 defines a 'project' as a management environment that is created for the purpose of delivering one or more business products according to a specified Business Case. Hence a project has:
- a defined start and end date
- defined and measurable business products
- a corresponding set of activities to achieve those business products
- a defined amount of resources
- an organisation structure with defined responsibilities to manage the project
PRINCE2 is scalable, customisable, repeatable, teachable, built on experience, it helps clarify roles and responsibilities, it proactively provides early warnings of potential problems.
PRINCE2 defines 8 Components, 8 Processes and 3 Techniques as explained below.
Figure 1: PRINCE2 Components and Processes:
© Crown Copyright 2005
Hence the 8 Components defined by PRINCE2 are the:
- Business Case
- Organisation structure
- Project Plans
- Controls
- Management of Risk
- Quality in a Project Environment
- Configuration Management, and
- Change Control.
The 8 Processes are:
- Starting up a Project (SU)
- Initiating a Project (IP)
- Directing a Project (DP)
- Controlling a Stage (CS)
- Managing Product Delivery (MP)
- Managing Stage Boundaries (SB)
- Planning (PL)
- Closing a Project (CP)
Although PRINCE2 is not prescriptive by nature, guidance is provided in 3 areas, these are called Techniques:
- Product Based Planning
- Change Control
- Quality Review
Some of the unique characteristics of PRINCE2 are:
- Pivotal nature of Business Case
The Business Case answers the why? or the viability of the project; it is created at the start and then updated and checked against at key points throughout the project. The Business Case embodies the rationale and the business justification for the project.
- Management by Exception
Resources are assigned work and given flexibility to complete the tasks. Disruption is decreased thru minimal meetings, the Project Board and stakeholders are kept informed via agreed regular, brief Reports.
- Adaptability
PRINCE2 can be tailored to any project, and complements or even enhances other project management frameworks such as the PMBOK (Project Management Body of Knowledge); specific examples where PRINCE2 helps bridge the gap with PMBOK include the below:
- The PMBOK contains no specific pre-project process equivalent to PRINCE2's 'Starting Up a Project (SU)' process, the SU process is extremely valuable in providing guidance in who or what should be in place before project start.
- The PMBOK offers Project Plans, however PRINCE2 recognising the challenge of accurate detailed planning at an early stage (especially for long or complex projects), divides plans into the Project, Stage and Team plans - this facilitates easier and more accurate planning.
- The PMBOK offers high-level advice on Product-based planning; PRINCE2 provides more detailed guidance on defining Product Descriptions, Product Breakdown Structures and Product Flow Diagrams - thus facilitating clearer communication of specialist products (those geared towards the customer and what they expect from the project) with stakeholders.
In brief, PRINCE2 provides a methodical and proven approach to project management, this can be applied in selected areas or across the entire project. It can be used to complement existing processes & if followed correctly will help manage risks and ensure greater chances of project success.
[Note: The author, Musab Qureshi is a certified PRINCE2 Practitioner]
References:
[1] http://news.zdnet.co.uk/itmanagement/0,1000000308,39287110,00.htm
