Directing Successful Projects with PRINCE2: The Essential Guide for Project Board Members

Directing Successful Projects with PRINCE2®
	Contents
	List of figures
	List of tables
	Foreword
	About AXELOS
	Acknowledgements
	Contents summary
	1 Introduction
		1.1 The purpose of this manual
		1.2 Why directing is important
		1.3 Why projects matter
		1.4 The wider project environment
		1.5 Is a project always needed?
		1.6 The PRINCE2 approach
		1.7 Benefits of PRINCE2
	2 Overview of PRINCE2
		2.1 Structure of PRINCE2
			Figure 2.1 The structure of PRINCE2
		2.2 PRINCE2 principles
		2.3 PRINCE2 themes
			Table 2.1 The seven PRINCE2 themes
		2.4 PRINCE2 processes
			Figure 2.2 The PRINCE2 processes
		2.5 What PRINCE2 does not provide
		2.6 What defines a ‘PRINCE2 project’?
	3 Role of senior management in PRINCE2
		3.1 Summary
		3.2 The PRINCE2 structure
			Figure 3.1 The PRINCE2 project management team roles
		3.3 Project board composition
			3.3.1 Principal categories of project stakeholder
			Figure 3.2 The three principal project interests
			3.3.2 If you are the executive of the project
			3.3.3 If you are a senior user
			3.3.4 If you are a senior supplier
			3.3.5 Combining roles
		3.4 The senior responsible owner role
		3.5 Directing projects using agile delivery approaches
	4 Duties and behaviours of senior management
		4.1 Summary
		4.2 Be accountable for the project
		4.3 Provide unified direction
		4.4 Be an effective leader
		4.5 Delegate effectively
			4.5.1 The ‘stage contract’
			4.5.2 Exceptions and escalation
			Table 4.1 The six tolerance areas by level
			Figure 4.1 Stage tolerances for budget and schedule
		4.6 Facilitate cross-functional integration
			Figure 4.2 Supplier line functions
		4.7 Commit resources
		4.8 Ensure effective decision-making
			4.8.1 Progress control
			4.8.2 Risks, issues, changes and exceptions
			4.8.3 Quality control
			4.8.4 Project assurance
			4.8.5 Informal contributions to decision-making
			4.8.6 Advisory boards
			Figure 4.3 Use of advisory boards
		4.9 Support the project manager
		4.10 Ensure effective communication
	5 Overview of senior management activities
		5.1 Starting up a project
			Figure 5.1 The starting up a project process
		5.2 Authorize initiation
			Figure 5.2 Authorize initiation
		5.3 Authorize the project
			Figure 5.3 Authorize the project
		5.4 Authorize a stage or exception plan
			Figure 5.4 Authorize a stage plan
			Figure 5.5 Authorize an exception plan
		5.5 Give ad hoc direction
			Figure 5.6 Give ad hoc direction
		5.6 Authorize project closure
			Figure 5.7 Authorize project closure
		5.7 Reviewing benefits
			Figure 5.8 Reviewing benefits
	6 Starting up a project
		6.1 Summary
			6.1.1 Purpose
			6.1.2 What to expect from the project manager
		6.2 Context
			Figure 6.1 Overview of starting up a project
		6.3 Confirm the understanding of the project mandate
		6.4 Appoint the executive and project manager
			6.4.1 Select the right executive
			6.4.2 Select the right project manager
		6.5 Capture previous lessons
		6.6 Design and appoint the project management team
			6.6.1 The project board
			6.6.2 The project manager
			6.6.3 Team managers
			6.6.4 Project assurance
			6.6.5 Project support
			6.6.6 Making the appointments
		6.7 Prepare the outline business case
			Figure 6.2 The development path of the business case
		6.8 Prepare the project brief
			6.8.1 The project product description
			Figure 6.3 Example of a project canvas
			6.8.2 The customer’s quality expectations
			6.8.3 Acceptance criteria
		6.9 Prepare the initiation stage plan
		6.10 Tailoring guidelines
			6.10.1 Tailoring
			6.10.2 Starting up projects using an agile delivery approach
	7 Authorize initiation
		7.1 Summary
			7.1.1 Purpose
			7.1.2 What to expect from the project manager
		7.2 Context
			7.2.1 What is the project brief?
			7.2.2 What is the initiation stage plan?
		7.3 Approve the project brief
			7.3.1 Overview
			7.3.2 Areas of focus
			7.3.3 Achieving agreement
		7.4 Approve the initiation stage plan
			7.4.1 Plan presentation
			7.4.2 Implications of approving the initiation stage plan
		7.5 Consequences when not approving
		7.6 Communication
		7.7 Suggested project board agenda
	8 Authorize the project
		8.1 Summary
			8.1.1 Purpose
			8.1.2 What to expect from the project manager
		8.2 Context
			8.2.1 Why?
			8.2.2 What?
			8.2.3 How?
			8.2.4 Who?
			8.2.7 Are the risks acceptable?
			Table 8.1 Threat and opportunity responses
			8.2.8 How do we tell people about the project?
			8.2.9 Are we ready to start?
			8.2.10 Have we established the right level of governance?
			Table 8.2 Examples of projects of different complexity
			8.2.5 How much?
			8.2.6 When?
		8.3 Review the end stage report for initiation
		8.4 Approve the PID
			8.4.1 Areas of shared focus
			8.4.2 The executive’s focus
			8.4.3 The senior user’s focus
			8.4.4 The senior supplier’s focus
			8.4.5 Tailoring the PID
		8.5 Approve the next stage plan
		8.6 Communication
			8.6.1 Consultations and informal approvals
			8.6.2 Initiation workshops
			8.6.3 Allow time for planning
			8.6.4 Communication to stakeholders
		8.7 Suggested project board agenda
		8.8 Tailoring guidelines
			8.8.1 Tailoring products
			8.8.2 Initiating projects when using an agile approach
	9 Authorize a stage plan
		9.1 Summary
			9.1.1 Purpose
			9.1.2 What to expect from the project manager
		9.2 Context
			9.2.1 Stage boundaries
			Figure 9.1 Managing by exception: profile of project board effort
			9.2.2 Project board meetings
		9.3 Review end stage reports
		9.4 Approve stage plans
			9.4.1 Prior consultation and informal approval
			9.4.2 Areas of shared focus
			9.4.3 The executive’s focus
			9.4.4 The senior user’s focus
			9.4.5 The senior supplier’s focus
			9.4.6 Authorize a stage plan
			9.4.7 Setting tolerances
		9.5 Assess project viability
			9.5.1 Areas of shared focus
			9.5.2 The executive’s focus
			9.5.3 The senior user’s focus
			9.5.4 The senior supplier’s focus
		9.6 Communication
		9.7 Suggested project board agenda
		9.8 Tailoring guidelines
			9.8.1 Tailoring the stage plan
			9.8.2 Authorizing a stage plan when using an agile approach
	10 Authorize an exception plan
		10.1 Summary
			10.1.1 Purpose
			10.1.2 What to expect from the project manager
		10.2 Context
			10.2.1 Managing exceptions
			10.2.2 Project board meetings
		10.3 Review end stage reports
		10.4 Approve exception plans
			10.4.1 Prior consultation and informal approval
			10.4.2 Approve an exception plan
			10.4.3 Setting tolerances
		10.5 Assess project viability
		10.6 Communication
		10.7 Suggested project board agenda
		10.8 Tailoring guidelines
	11 Give ad hoc direction
		11.1 Summary
			11.1.1 Purpose
			11.1.2 What to expect from the project manager
		11.2 Context
			11.2.1 Consultations
			11.2.2 Project board teamwork: unified direction
		11.3 Respond to requests
			11.3.1 Project board decisions
			Table 11.1 Project board decisions
			11.3.2 Frequency of requests
		11.4 Respond to reports
			11.4.1 Highlight reports
			11.4.2 Exception reports
		11.5 Respond to external influences
			11.5.1 Corporate, programme management or the customer influences
			11.5.2 PESTLE and other analyses
		11.6 Focus of individual board members
			11.6.1 Executive
			11.6.2 Senior user
			11.6.3 Senior supplier
		11.7 Communication
			11.7.1 Outside the team
			11.7.2 Within the team
		11.8 Tailoring guidelines when using an agile approach
	12 Authorize project closure
		12.1 Summary
			12.1.1 Purpose
			12.1.2 What to expect from the project manager
		12.2 Context
		12.3 Confirm handover and acceptance
			12.3.1 Handover to users
			12.3.2 Handover to operational support
			12.3.3 Concessions
		12.4 Approve the end project report
			12.4.1 Measurement of project performance
			12.4.2 Analysis of project performance
			12.4.3 Lessons
			12.4.4 Follow-on action recommendations
			12.4.5 Communicate the end project report
		12.5 Approve the benefits management approach
		12.6 Communication
			12.6.1 Issue the project closure notification
			12.6.2 To the team
			12.6.3 To the outside world
		12.7 Suggested project board agenda
		12.8 Tailoring guidelines
			12.8.1 General considerations
			12.8.2 Closing projects using an agile delivery approach
	13 Reviewing benefits
		13.1 Summary
			13.1.1 Purpose
			13.1.2 What to expect from the project manager
		13.2 Context
		13.3 Hold benefits reviews
			13.3.1 Prerequisites
			13.3.2 The reviews
		13.4 Close the business case
		13.5 Communication
		13.6 Suggested agenda for benefit reviews
		13.7 Tailoring guidelines
			13.7.1 General considerations
			13.7.2 Benefits management using an agile delivery approach
	14 Tailoring and adopting PRINCE2
		14.1 Summary
			14.1.1 Tailoring PRINCE2
			14.1.2 Adopting PRINCE2
		14.2 Tailoring PRINCE2 to suit different projects
			14.2.1 What can be tailored?
			14.2.2 Who is responsible and where is tailoring documented?
			14.2.3 Tailoring is constrained and influenced by context
			Figure 14.1 Constraints and influences on tailoring a project
			14.2.4 Some common situations
		14.3 Adopting PRINCE2 in an organizational environment
			14.3.1 Effective use of PRINCE2 in an organization
			14.3.2 Tailoring PRINCE2 to create an organization’s project management method
			Figure 14.2 Tailoring PRINCE2 to create an organization’s project management method
			14.3.3 Embedding PRINCE2 in an organization
	15 Diagnosing and avoiding problems
		15.1 Summary
		15.2 Project performance
			15.2.1 Business case
			Table 15.1 Resolving project business case problems
			15.2.2 Organization
			15.2.3 Quality
			Table 15.2 Resolving project organization problems
			Table 15.3 Resolving scope and quality problems
			15.2.4 Plans
			Table 15.4 Resolving problems with plans
			15.2.5 Risk
			Table 15.5 Resolving risk management problems
			15.2.6 Change
			Table 15.6 Resolving change problems
			15.2.7 Progress
		15.3 Overall performance of the organization
			Table 15.7 Resolving problems with progress
			Table 15.8 Resolving problems with the organization’s overall performance
	A Roles and responsibilities
		A.1 Project board
			A.1.1 General responsibilities
			A.1.2 Competencies
		A.2 Executive
			A.2.1 Responsibilities
		A.3 Senior user
			A.3.1 Responsibilities
		A.4 Senior supplier
			A.4.1 Responsibilities
		A.5 Project manager
			A.5.1 Responsibilities
			A.5.2 Competencies
		A.6 Team manager
			A.6.1 Responsibilities
			A.6.2 Competencies
		A.7 Project assurance
			A.7.1 Responsibilities
			A.7.2 Competencies
		A.8 Change authority
			A.8.1 Responsibilities
			A.8.2 Competencies
		A.9 Project support
			A.9.1 Responsibilities
			A.9.2 Competencies
	B Checklists
		B.1 Starting up a project
		B.2 Authorize initiation
		B.3 Authorize the project
		B.4 Authorize a stage plan
		B.5 Authorize an exception plan
		B.6 Give ad hoc direction
		B.7 Authorize project closure
		B.8 Reviewing benefits
		B.9 Tailoring and adopting
	C Programmes and portfolios
		C.1 Overview of programme and portfolio roles
			Figure C.1 Functions and roles in the AXELOS best-practice guidance
		C.2 The programme management (MSP) context
			Table C.1 Mapping MSP and PRINCE2 themes for integration
			Figure C.2 MSP governance and roles
		C.3 The portfolio management context
			Figure C.3 MoP portfolio management cycles
			Table C.2 MoP portfolio definition practices and factors to consider
			Table C.3 MoP portfolio delivery practices and factors to consider
	Further research
	Glossary
	Index