1. Project Management Principles
Lecture 4 – PR.I.N.C.E. 2 and other methodologies and frameworks
ΥΠΕΥΘΥΝΟΣ: Θ. ΜΑΝΑΒΗΣ

2. Remember...

3. Project Planning, Scheduling, and Control
Work Breakdown Structure
1. Project
Major tasks in the project
3. Subtasks in the major tasks
Activities to be completed

4. Let’s start ...

5. PRINCE2 - Why Projects fail?
Lack
of planning
No clear objectives
Poor management
Experience
Requirements not defined
Roles not defined

6. The Statistics on Project Failure
Gartner studies suggest that 75% of all US IT projects are considered to be failures by those responsible for initiating them and half of the projects exceeded budget by 200%!
A Standish Group study (“Chaos Report”), again in the US IT industry, found that 31% of projects were cancelled outright before completion and that 53% of the all projects cost was over the original estimates.
1 in 4 CEO’s said they were unable to pursue a market opportunity due to talent. *
1 in 3 concerned skill shortages impacted their ability to innovate effectively. *
* PWC – 2012 “Insight and Trends: Current Portfolio, Programme and Project Management Practices”

7. Some Project Management Methodologies
PRINCE2
Agile Methodology
PMP (PMBOK)
ITIL (Information Technology Infrastructure Library)
Six Sigma
SCRUM

8. Who’s Using PRINCE2®?

9. Agile Adoption

10. What is PMBOK® Guide ?
PMBOK® Guide identifies the practices that the project management body of knowledge generally recognized as good practices
PMBOK® Guide provides and promotes a common vocabulary within the project management profession for discussing, writing, and applying project management concepts
PMBOK® Guide establishes guidelines for project management processes, tools, and techniques
* PMBOK: Project Management Body of Knowledge, created by PMI, the Project Management Institute

11. What Is PRINCE2® ? Projects in a Controlled Environment (PRINCE)
PRINCE2® is a book that describes a method for approaching managing and closing down a project of any type or size
PRINCE2® tells what should be done and why it should be done but does not say how it should be done
PRINCE2® is not prescriptive, rather it is descriptive
PRINCE2® is a structured management method
®U.K.’s Office of Government Commerce (OGC)

12. Where is PRINCE2® being used?
1970
1980
1990
2000
1975
PROMPT
created
1979
UK Govt Standard
1989
PRINCE created for IT
1996
PRINCE2 created - generic
PRINCE2 Refreshed

13. PRINCE2 - Benefits
Standard – working on different projects is easier for staff
Structured – templates, documentation, planning
Non-Proprietary – can use other techniques to design, develop and evaluate product (SDLC, SSADM, UML)
De facto standard (UK government and Industry)
Qualification – get accreditation
Does not Cover
Specific tools/techniques (e.g. Planning and Scheduling Tools)
People Management ( Delegation, Management and Leadership)

14. Benefits for project managers
Clear terms of reference
Defined structure
Manageable stages
Resources committed
Brief reports to management
Focused meetings at key points
Avoid scope creep

15. Benefits for users Participate in all the decision making
Involved in day-to-day progress
Participate in quality review
Ensure their requirements are satisfied
User involvement critical

16. Five Main Aspects to PRINCE2®
In order to successfully complete any significant job of work there are five main aspects that need to be considered, namely:
• The method to be used, in other words how will you approach the job
• How will the work be organized
• What are the main factors that need to be taken into account
• Who will have responsibility for what
• And how will progress be monitored and communicated

17. Project definition according to PRINCE2®

18. PRINCE2® Project Variables (also known as the 6 performance targets)
Timescale
When will the project finish with the current schedule?
Cost
Are the costs being controlled and are we within budgets?
Quality
Will the product be usable at the end of the project?
Scope
The scope has to be well defined and clear to all stakeholders. Avoid scope creep (no new uncontrolled requirements)
Benefits
Why are we doing the project and what are we going to get out of it? Must be clear, known and measurable.
Risk
How much risk exists and how can it be managed?

19. PRINCE2® Project Characteristics
Change
Uncertainty
Projects introduce new things
UNIQUE + CHANGE = Uncertainty
Temporary
Unique
Project has always start and end
Two identical projects are never done
Cross-functional
Involves people from different fields

20. PRINCE2® – 7 x 7 x 7 Seven Principles Seven Themes Seven Processes
The seven Principles provide a best-practice framework for the project. Ultimately they define a PRINCE2® project
Seven Themes
Themes provide the knowledge on how to achieve the principles. The seven Themes provide guidance on aspects of project work which should be addressed at various points during the undertaking. They relate to each other and are integrated into the Processes. Need to be continually addressed.
Seven Processes
Activities done during the project and who does them. Answers the question what products are to be created and when. The seven Processes offer a ‘journey’ through the project so that critical aspects of project work are neither forgotten nor treated in a trivial manner

21. PRINCE2® Structure: Principles

22. PRINCE2® Principles
Continued business justification. Always checking if there is a valid business case. (Benefits)
Learn from experience. Makes sure that we don’t make the same mistakes with previous projects.
Defined roles and responsibilities. Accountability and responsibility. Everyone involved should know clearly what is expected of them.
Managed by stages. Break big projects up into manageable chunks.
Managed by exception. An appropriate delegation of authority technique. Authority is delegated by defining tolerances for each of the six performance variables (see next two slides)
Focus on products. All products are defined and agreed by all sides before the development.
Tailor to suit the project environment. Customize PRINCE2 to your needs. The project Board and the project manager decide how the method will be applied to their particular field.

23. PRINCE2® Principles – Manage by Exception
Managed by exception. An appropriate delegation of authority technique. Authority is delegated by defining tolerances for each of the six performance variables.

24. PRINCE2® Roles Customer, User and Supplier Project board
The person who is paying for the project is called the customer or executive.
The person who is going to use the results or outcome of the project, or who will be impacted by the outcome of a project, is called the user.
On some projects, the customer and user may be the same person. The person who provides the expertise to do the actual work on the project (i.e. will be designing and building the outcome) is called the supplier or specialist.
All of these people need to be organized and co-ordinated so that the project delivers the required outcome within budget, on time and to the appropriate quality.
Project board
Each PRINCE2 project will have a project board made up of the customer (or executive), someone representing the user side, and someone representing the supplier or specialist input.
In PRINCE2, these people are called customer, senior user and senior supplier respectively.
The Project Manager reports regularly to the project board, keeping them informed of progress and highlighting any problems he/she can foresee.
The project board is responsible for providing the Project Manager with the necessary decisions for the project to proceed and to overcome any problems.

25. Senior Project Supplier
Project Board
Project Executive
Project Board
Senior Project User
Senior Project Supplier
Project Manager

26. PRINCE2® Authority Corporate or Program
Project Board – Project Executive
Project Manager
Team Manager(s)
Tolerances Set By
Project Corporate/Program
Management Stage Project Board
Work Package Project Manager
Team Manager
Decreasing Authority

27. PRINCE2® Processes Starting up a project Directing a project
Initiating a project
Controlling a stage
Managing product delivery
Managing a stage boundary
Closing a project
PRINCE2® processes are management processes

28. Each Process has...

29. PRINCE2® Structure Directing Managing Delivering Pre-project
Initiation stage
Subsequent delivery stages
Final delivery stage
Directing a project SU SB SB CP
Controlling a stage
Controlling a stage IP
Managing product delivery
Managing product delivery
Key
SU =
Starting up a project
IP =
Initiating a project
SB =
Managing a stage boundary
CP =
Closing a project
In the slide that follows,
PURPLE COLOUR represents the PROCESSES,
RED represents the DOCUMENTS produced

31. Processes...

32. Processes...

33. Processes...

34. Processes...

35. Processes...

36. Processes...

37. Processes...

38. PRINCE2® PRE-PROJECT FLOW
Project Mandate
Appoint Project Executive
Draft Outline
Business Case A
Appoint Project Manager
Create Daily Log
Capture Previous Lessons
Select Project Approach
Create Project Product Description (High Level)
Design/Appoint Project Management Team
Prepare Project Brief
Prepare Initiation Stage Plan
Request Approval to Start Initiation Stage A

39. PRINCE2® BENEFITS Mandate – Very High Level
Outline Business Case– High Level
User Defined - Specific
Business Case - Detailed
Benefits Review – Verify (usually post-project)
Any time it is recognized that benefits will not be achieved, the Project Board loses authority to continue.

40. PRINCE2® Themes Business Case Organization Quality Plan Risk Change
Progress

41. PRINCE2® Themes

42. Processes vs Themes

43. PRINCE2® Themes Business Case Organization Quality Plan Risk Change
Progress
The Business Case for a project forms part of its very foundation. It is the most important set of information for a project and drives the decision-making process. It is used continually to ensure that the project’s progress is aligned with the business objectives.
Answers the questions; Is the project:
Desirable (cost/benefit/risk balance)
Viable (project can deliver the products)
Achievable (can products provide the benefits)
Is the responsibility of the Project Executive
Some aspects may be assigned to the Project Manager

44. PRINCE2® Themes Business Case Organization Quality Plan Risk Change
Progress
Defining all the roles, responsibilities and relationships for the people involved in managing and executing the project.
Supplier
User
Customer
(Business Interest)

45. PRINCE2® Themes Business Case Organization Quality Plan Risk Change
Progress
Path to applying quality assurance and control in a project. The emphasis which PRINCE2® places on products, or deliverables, means that it is easy to see the relevance of traditional quality management principles to the management of projects.
Four elements of Quality:
Quality System (a collection of business processes focused on achieving quality policy)
Quality Planning (process that translates quality policy into measurable objectives and requirements)
Quality Assurance – (focuses on processes)
Quality Control – (focuses on output)

46. PRINCE2® Themes Quality Responsibility of the Project Board
Three views: Executive – User – Supplier
Project Manager has NO Quality Execution Responsibilities
(except for the Quality Plan)

47. PRINCE2® Themes Business Case Organization Quality Plans Risk Change
Progress
Product-based Planning
These are the backbone of the management information system that is required for any project. PRINCE2® is very concerned with the different levels of plan which need to be produced and the approvals which are required before plans are put into action.
Three levels of plans:
Project
Stage
Team (optional)
Exception

48. PRINCE2® Themes Business Case Organization Quality Plan Risk Change
Progress
Since risk is such a fundamental consideration within the Business Case, PRINCE2® identifies Risk as a Theme in its own right to assess and take relevant action in respect of uncertainties.

49. PRINCE2® Themes Business Case Organization Quality Plan Risk Change
Progress
Change in projects is inevitable so PRINCE2® defines procedures for managing changes as they occur or become necessary. This can be a particularly crucial element in a project since the rest of the project or other projects or perhaps a program can be affected by changes made within a project. This Theme also provides for Configuration Management which may be thought of as asset control.
Request for change
Off-specification (non-conformance)
Problem/concern (issue)
A common approach to Issue and Change Control

50. PRINCE2® Themes Business Case Organization Quality Plan Risk Change
Progress
As important as it is to plan the project it is equally important to know how the project is progressing. When the ‘actual state’ is known and compared to the planned state, then control is possible.

51. PRINCE2® vs PMBOK® (PMP)Guide
A method
Descriptive
What and Why
Principles & Processes
Does not address tools & techniques
Defined roles
Managed by exception
Not a methodology
Prescriptive
How and Why
Processes
Guidelines for tools & techniques

52. PRINCE2® vs PMBOK® (PMP) Guide
PMBOK ® can be applied in virtually any organization
PMBOK ® places the responsibilities on the project manager
PRINCE2 ® requires an organization change
PRINCE2 ® is based on shared responsibilities

53. Some Definitions PRINCE2 PMBOK (PMP)
Project: A project is a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case.
Project: A temporary endeavor undertaken to create a unique product, service, or result.

54. Some Definitions PRINCE2 PMBOK (PMP)
Project Management: The planning, delegating, monitoring and control of all aspects of the project, and the motivation of those involved, to achieve the project objectives within the expected performance targets of time, cost, quality, scope, benefits and risks.
Project Management: The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

55. PMBOK and the PRINCE2® Feature PRINCE2 PMBOK (PMP) History
Origin - United Kingdom
Origin - United States  
Owner
AXELOS and the UK Cabinet Office
Project Management Institute (PMI)
Usage
Global
Foundation:730,555 Exams to date (July 2013)
Practitioner:388,085 Exams to date (July 2013)
583,806 active PMP certified (Oct 2013)
Structure
7 Principles, 7 Themes, 7 Processes (2009 Edition)
A process based project management methodology
A series of management processes defining what must be done, when and how it must be done and by whom over the life of a project
Prescriptive, but tailorable
Defines the roles of everyone involved in a project
47 Processes (5th Edition)
5 Process Groups
10 Knowledge Areas
A knowledge based approach to project management
Describes core practices and a wider range of techniques that can be applied to manage a project
Non-prescriptive
Focuses on the project manager's role
Training Practice
PRINCE2 Training Organizations must be Accredited and hold a licence to train in PRINCE2.
Trainers must pass an independent competency assessment and be accredited
PMP training organizations must comply with the PMI training syllabus.
Trainer's competency to deliver training is not assessed.
Certifications
PRINCE2 Practitioner (P2RP)
5 day course
3 hour exam
Re-certify every 5 years with 1 hour exam
Project Management Professional (PMP)
4500/7500 hours prerequisite
35 hours of formal PM education
Re-certify every 3 years
“the PMBOK Guide is neither a textbook, nor a step-by-step – PRINCE2 is!

56. Conflict or Complementary
Bottom Line –
PRINCE2 and PMBOK Edition 5 are Complementary

57. Summary… PRINCE2® Is a foundation for “doing projects right”
Standardized approach to project management, proven over a period of 20 years
Internationally accepted as the de facto project management methodology
Is built on a family of ‘Best Management Practices’; addressing all levels of organizational needs
Is prescriptive

58. Sources
PRINCE2® Overview presentation, Russ Meermans, PMP, PRINCE2 Practitioner
“Using PRINCE2® to Manage Your ITIL® Implementation”, presentation by Marval North America (
PRINCE2 ® Process Model, presentation by ProjectingIT