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Chapter 1
Introduction
This book is intended for those who require a basic understanding of the PRINCE2Ā® method and/or are looking to pass the PRINCE2 Foundation exam. For those with a basic understanding of PRINCE2 and a wish to go further, I would strongly recommend the companion book, The PRINCE2 Practitioner.
āProject management is just common sense.ā Of course it is. So why do so many of us get it wrong? Even if we get one project right, we probably make a mess of the next. And why do we keep getting it wrong time after time? You need to be armed with a little more than common sense when diving into a project such as constructing a pyramid. It is no good getting half way through, then remembering you forgot to put in the damp course!
Why do so many professionals say they are project managing, when what they are actually doing is firefighting?
The answer is that, where project management is concerned, most of us do not learn from our mistakes. We do not think about the process, document it, structure it, repeat it and use past experience to improve the model. Problems are likely to arise in every project we tackle, but many of these problems could have been avoided by planning ahead and controlling how things happen against that plan.
Those who are starting a project for the first time should not have to reinvent the wheel. They should be able to build on the experience of previous project managers. By the time we are doing our tenth project we should have a method that helps us avoid mistakes we made in the previous nine.
PRINCE2 is a structured project management method based on the experience of many other project managers ā some who have contributed from their mistakes or omissions, others from their success. It can be applied to any kind or size of project, i.e. the basic philosophy is always the same. The method should be tailored to suit the size, importance and environment of the project. Common sense says, āDonāt use a sledgehammer to crack a walnutā, but equally do not agree important things informally where there is any chance of a disagreement later over what was agreed.
1.1 Typical Project Problems
So letās have a look at some typical problems from several different points of view. Many years ago I was asked to implement PRINCE2 in the computer department of a large international company. They had drawn up a list of six typical complaints from their customers.
- 1. The end product was not what we originally asked for.
- 2. The system and the project changed direction without our realizing it.
- 3. The costs escalated without our realizing it, but by then it was too late to stop.
- 4. We were told the system would be delivered late, but by this time, it was too late for us or the computer department to supply extra effort.
- 5. We were not kept informed during most of the development, and even now we do not really understand how to make the system work.
- 6. The programs are not reliable, hence maintenance costs are more than we expected.
This was an embarrassing list for them, showing that the customers were ignored during most of the project. This was apart from poor planning and control problems during the project from their own perspective.
Speaking of control, the now-defunct Hoskyns Group did a survey of projects some years ago and listed symptoms that they found to indicate projects that were out of control. You might recognize some of the symptoms:
- Unclear direction.
- Over-or under-worked staff.
- People and equipment not available when needed.
- Examples of rework or wasted effort.
- The final tasks were rushed.
- Poor quality work.
- Projects late and overspent.
- Small problems had a big impact.
But why do these problems occur? Their causes show the reasons why a formal project management method is needed:
- Lack of customer involvement.
- Lack of coordination.
- Lack of communication.
- Inadequate planning.
- Lack of progress control.
- Lack of quality control.
- Insufficient measurables.
So there we have it. Without good project management projects will:
- take more time than expected;
- cost more than expected;
- deliver a product that is not exactly what the customer wants;
- deliver a product of inadequate quality;
- not reveal their exact status until they finish (if they ever do!).
These experiences show us why a good project management method, such as PRINCE2, is needed if our projects are to be well managed and controlled.
1.2 Benefits of a Project Management Method
- The method is repeatable and therefore teachable.
- It builds on experience.
- Everyone knows what to expect.
- If a project is handed over in the middle, it is useful to know what documents to look for and where to find them.
- There is early warning of problems.
- It is proactive, not reactive (but has to be prepared to be reactive to unexpected events ā illness, pregnancy, accident, external event).
Organizations are becoming increasingly aware of the opportunities for adopting a āprojectā approach to the way in which they address the creation and delivery of new business products or implement any change. They are also increasingly aware of the benefits which a single, common, structured approach to project management can bring ā as is provided through PRINCE2.
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Chapter 2
An Overview of PRINCE2
2.1 Introduction
All organizations need to change and move on in order to survive. Standing still often means going backwards, but ābusiness as usualā has to continue. Therefore, an organization has to do two things:
- 1. Carry on with everyday ābusiness as usualā operations.
- 2. Change and upgrade those ābusiness as usualā operations to match the direction and strategies needed for the future.
The changing and upgrading is done by projects. PRINCE2 is a scalable, flexible project management method, suitable for use on any type of project. It has been derived from the experiences of professional project managers, and refined over years of use in a wide variety of contexts. It is owned by Axelos and is available free of charge for users. Axelos has an ongoing commitment to maintaining the currency of the method, together with the manual.
PRINCE2 provides:
- 1. controlled management of change by the business in terms of its investment and return on investment;
- 2. active involvement of the users of the final product throughout its development to ensure the business product will meet the functional, environmental, service and management requirements of the users;
- 3. more efficient control of development resources.
A key approach of the method is that it firmly distinguishes the management of the development process from the techniques involved in the development process itself.
2.2 Project Characteristics
PRINCE2 defines five characteristics of project work that make a project different from regular business operations:
- 1. Change: We use projects to introduce change to a business.
- 2. Uncertainty: A project changes one or more things or develops something new. These are steps into the unknown, and introduce uncertainty in what will be ahead of us in the project.
- 3. Temporary: A project team comes together, does a job and is then disbanded.
- 4. Unique: In some major or minor ways each project is unique. It may be completely unlike anything we have done before, or we may have repeated the same job several times, but at a different location or with different people.
- 5. Cross-functional: A project needs different people with different skills; some to define what is required, others to develop the required products. These people may work for several different line managers, maybe even different companies. So managing these resources is a potential problem for the Project Manager.
FIGURE 2.1 Project characteristics
2.3 Project Performance Variables
If a project is to be successful, there are six project performance variables to control:
- 1. Cost.
- 2. Time.
- 3. Quality.
- 4. Scope.
- 5. Benefits.
- 6. Risk.
2.4 Key Principles
There are seven principles on which PRINCE2 is founded (Figure 2.2). This set of principles is unique to the PRINCE2 method. As you read this book, you will see how they are interwoven with the processes and themes to form a tremendously strong structure.
FIGURE 2.2 The seven PRINCE2 principles
The seven PRINCE2 principles are:
- 1. Continued business justification.
- 2. Learn from experience.
- 3. Defined roles and responsibilities.
- 4. Manage by stages.
- 5. Manage by exception.
- 6. Focus on products.
- 7. Tailor to suit the project environment.
The seven principles are expanded below.
2.4.1 Continued Business Justification
PRINCE2 states that a project should be driven by its Business Case. Even projects to meet compulsory requirements should be justified. The existence of a viable Business Case should be proved before the project is allowed to start, and its continued justification should be confirmed at all major decision points during the project. This principle can be summarized in the following points:
- Do not start a project unless there is a sound Business Case for it.
- Check that the project is still viable at regular intervals in the project.
- Stop the project if the justification has disappeared.
- The Business Case should be:
- ā¦documented and approved;
- ā¦the basis for all decision-making.
- Ensure the project remains aligned to its business objectives and the expected benefits.
Justification for the project may change, but it must remain valid.
2.4.2 Learn from Experience
Project m...
