PRINCE2 principles: Free ebookend stage report

Introduction – a summary of how

This guide to the PRINCE2PRINCE2 principles is tailored for the project. is one in a series of four study guides designed to prepare students for attending a The project manager also sets up the project log containing lessons log, issue register, product register, quality register, risk register, and daily log. The project log will be updated regularly throughout the project and gives a snapshot of the status of risks, quality, products, issues, and lessons.PRINCE2 Foundation courseOutputs. The other three – The PRINCE2 practicesproject initiation documentation, .PRINCE2 processesControlling a stage

Manage by exception for the project manager.

On a PRINCE2 project, tolerances are established for each project objective (time, cost, quality, scope, benefits, risk, and Specialist productssustainability to be used by the users within the business organization.). Limits of delegated authority are also defined, so that it is clear who has authority to take a decision about corrective action if tolerances are exceeded. The activities associated with directing, managing, and delivering the project must be performed within agreed tolerance levels.Managing a stage boundary

Highlight reportsPurpose
On a PRINCE2 project, regular highlight reports keep the project board informed about progress. This leaves the project board members free to carry on with their own activities, beyond those required for the directing of the project. Only if a tolerance level is forecast to be exceeded (known as an ‘exception’ in PRINCE2), does the project board address the issue through the assessment of an exception report.To provide the project board with sufficient information to be able to:

Tolerancesreview the success of the current stage.
There are 7 performance targets for which tolerances are set on a PRINCE2 project. These are: time, cost, quality, scope, benefits, risk, and approve the next stage plan.sustainabilityreview the updated .project plan

Project tolerances.
When the project is commissioned tolerances are agreed for each of these elements at the project level by the business layer. Changes to these project-level tolerances can only be made by the business layer.confirm continued business justification and acceptability of the risks.

Once an exception to a project-level tolerance occurs, the project board must escalate the problem to the business layer for a decision.Objectives

Stage tolerancesTo:
Stage tolerances are calculated by the project manager when planning each stage. They are then approved by the project board when it approves a stage plan. Similarly, work package tolerances are approved by the project manager when a work package is authorised.Assure the project board that all products in the current stage plan have been completed and approved.

Work package tolerancesPrepare the next stage plan or exception plan.
If a team manager raises an issue, indicating a deviation from work package tolerances, the project manager must assess the issue and take corrective action, unless the stage tolerances will be affected. If the issue will affect the stage tolerances, the project manager must create an exception report, and escalate the matter to the project board.Review and, if necessary, update the PID.

Benefits of ‘managing by exception’Provide information for the project board to assess the project’s continuing viability.
By working in this way, the project board ‘manages by exception’ i.e. only gets involved when key decisions need to be taken (when an issue exceeds agreed tolerances) and hence is a very efficient use of senior management time. Note that in Record information or lessons that can help later stages or other PRINCE2projects if the ‘manage by exception’ principle is performed, there is no need for regular progress meetings between the project board and the project manager..

Manage by stagesRequest authorization to start the next stage.

According to this principle each stage of a project must be properly planned, monitored, and controlled. A PRINCE2 project requires a minimum of two stages – the first one being called the ‘initiation’ stage (during which the project is planned), and then at least one more which covers the delivery of the project’s specialist products.Trigger

Initiation stageIt is triggered by the stage boundary approaching, or an exception plan request from the project board. It overlaps with the other processes active at the time.
The requirement for an initiation stage ensures that a project is not started before detailed forecasts of costs and timescales have been completed. If the project skips this stage, there is a risk that it will ultimately cost considerably more than originally anticipated.What happens?

Project initiation documentation (PID)Towards the end of every stage (except the final stage) the project manager performs this process and starts planning for the next stage by creating a
At the end of the initiation stage, the project board assesses the viability of the project by examining the project initiation documentation (PID). In accordance with this principle, a project that is given the go ahead will be assessed again by the project board at the end of each management stage during its lifecycle. After each assessment, the project board may decide that the project should continue or be prematurely closed it if it is no longer viable.stage plan

Planning horizon.
It is a general rule of planning that every plan should be made only to a manageable and foreseeable level of detail (called a planning horizon). PRINCE2 recommends three levels of plan – The ‘manage by exception’ principle means that the project board only meets with the project manager at the end of a stage (an end stage assessment). At this point the project manager must provide the necessary information for the project board to make an informed decision about continuing with the project.project planThis requires the project manager to update the project management team structure required for the next stage, project log, project initiation documentation, business case, and project plan. The , stage plans and optional team plans; each is appropriate for the level of management which uses it.project plan

The project board uses an updated version of the project plan to help it monitor and control progress. The project manager, who is responsible for the day-to-day management of the project, uses the current stage plan, and team manager(s) use team plans to an appropriate level of detail. is updated by incorporating the actual progress from the stage just finishing, and revised time and cost forecasts for the remainder of the project.

Stop/continueAn
Each management stage in exception planPRINCE2 is created when the project board asks the project manager to create a new plan, based on recommendations made in an exception report. In an exception situation, the other activities of the process remain the same as at the normal end of stage. acts as a ‘stop/continue’ decision point for the project board. It’s where it decides whether the project is still viable and if so, can commit to the next stage by approving the plan for the next stage.As the project executive is responsible for the business case, the project manager should consult them when reviewing and updating the business case in preparation for the project board’s approval. The

If the decision is ‘continue’ then effectively this gives permission for the project manager to spend the money authorized by the project board for the next stage and is thus a less risky approach to taking investment decisions when compared with taking one big decision at the start of the project.business case

If the decision is ‘stop’ then the project is no longer viable, and the project should be prematurely closed. must reflect the environment external to the project changes and must be reviewed and amended to keep it relevant to the project.

Stages are a control for the project boardThe project manager also assesses the project’s risks using the project log to a
Stage boundaries therefore enable the project board to control the project on a stage-by-stage basis, whilst delegating day to day management of the project to the project manager.

To help the decision of the project board, the project manager updates the project plan at the end of every stage with the ‘actuals’ from the current stage and ‘forecasts’ for the remainder of the project. Before taking a decision therefore, the project board has up to date information about the project which helps it assess the ongoing viability.

Focus on products

When you are The objective of evaluating the project is to assess how successful it has been, or the reasons for early closure. By analysing the actual progress metrics for this project against the original baseline PID, and the totality of issues, risks and changes, important lessons can be learned. A tailoring PRINCE2lessons report, you must bear in mind that no part of the method should be ignored or removed. Even on a small project, you will need to address risk, quality and change control. If the method is changed too much, you will be in danger of running a ‘PINO’ (that’s ‘PRINCE2 In Name Only’) project. captures the

Organizations can address the PINO problem by referring to the lessons learnedPRINCE2 Maturity Model from the project which can help improve the management of future projects. Information from the . Organizations can use the model to establish their level of compliance with PRINCE2.project log

Tailoring goals
The goal of the tailoring principle is to adapt the PRINCE2 method to the needs of your project thereby avoiding the creation of a ‘template-driven’ is also reviewed by the project manager when preparing an project management methodend project report in which everything is done unquestioningly. Remember that PRINCE2 focuses on decisions being taken by those with delegated authority based upon timely information, rather than focussing on documents, .templatesFinally, the project manager briefs the project board with a summary of the performance of the project, highlighting where there were concessions for any off-specifications, and requests authority to close the project from the project board., and meetings.After the project board authorizes project closure in the

Summarydirecting a project

Hopefully you’ve learned something about the process, the project is now history and the specialist products which were delivered by the project will now be used by users as part of their everyday business-as-usual activities of the business organization.PRINCE2 principlesOutputs after reading this ebook. As a trainer on a Lessons reportPRINCE2 course summarizing , I often hear students refer to their employer as being one which manages their projects according to PRINCE2. After delving a little deeper, it becomes apparent that these organizations are usually not managing their projects according to PRINCE2 at all.lessons learned

There is only one simple test of whether a project is a PRINCE2 project and it’s nothing to do with how many documents are written by the project management team. Nor is it to do with whether all the guidance in the on the project. PRINCE2 manualEnd project report is being followed. The test is simply whether the project is applying all summarizing achievements on the project compared with the objectives in the project initiation documentation.seven of the PRINCE2 principlesUpdates to .project log

PRINCE2 therefore is not a rigid and ancient text written down on tablets of stone which cannot be challenged and changed. On the contrary, it’s a very practical and workable set of best practices which can be applied to any project, no matter what type of project, scale or level of complexity and risk.,

It’s by applying these principles sensibly on your project that you will gain the greatest benefit of the world’s most popular project management methodology.project plan