Introduction to PRINCE2 Dimitrovski Dejan M.B.A. Webster University Vienna Fall 2,

What is PRINCE2 PRojects IN Controlled Environments Project management methodology Can be used to manage all kinds of projects, but mainly used with IT related projects 2

Why Project Management Methodology Imagine you are a Personal Assistant of a VIP You are assigned a very simple project to take care of 3 I have too much stress at work!!! I want to go away for a while very soon, so please organize some trip for me. The price is not a problem but it has to be a good value deal

A Failed Project Canadian Firearms Registry System to register all gun owners in Canada Initial Cost Estimate (1995) - $119 million $117 million from licensing fees $2 million taxpayers money Cost over projects life time $527 million $629 million around $2 billion (registration fees $140 million) Initiative to abolish the Registry Discussion as early as – A bill proposed that abolishes the Registry and all records kept to date 4

A Failed Project 5

WHY Project Management Methodology Projects fail! Every project starts off with success in mind, however many of them fail to deliver The bigger the scope of the project, the more challenging it becomes to complete it successfully Big projects = Big 6

Why do projects fail? Non existence of a valid Business Case for a project Required project outcomes poorly defined Lack of communication among key stakeholders and interested parties Poor estimation of duration and costs Inadequate resource planning and allocation Lack of quality control And the list goes on and on… 7

Why projects wouldnt fail with PRINCE2 PRINCE2 itself does not guarantee successful projects but provides project managers with established and proven best practices for successful projects PRINCE2 is about having control over the project life cycle, regardless of the final project outcome (positive or negative) PRINCE2 has a proactive approach to project management that makes project managers able to accommodate sudden unexpected events 8

History of PRINCE2 PRINCE established in 1989, CCTA* Developed from an existing project management method PROMPTII Major revision PRINCE2 released in 1996 PRINCE2 revisions in 2005 and 2009 Nowadays it is the de facto standard used by the UK Government and in many multi national corporations *Central Computer and Telecommunications Agency (UK government organization) 9

PRINCE2 Principles Continued business justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailored to suit the project environment 10

Benefits of using PRINCE2 Benefits for the project Benefits for the project manager Benefits for other stakeholders Benefits for senior management 11

Benefits of using PRINCE2 Benefits for the project Controlled and organized start, middle and end Good communication channels of all stakeholders Regular reviews of progress against the project plan and the Business Case Benefits for the project manager Benefits for other stakeholders Benefits for senior management 12

Benefits of using PRINCE2 Benefits for the project Benefits for the project manager Established terms of reference Defined structure for delegation, authority and communication Ensure resource commitment from key stakeholders Keep meetings with management and stakeholders to a minimum Benefits for other stakeholders Benefits for senior management 13

Benefits of using PRINCE2 Benefits for the project Benefits for the project manager Benefits for other stakeholders Participate in all the decision making of a project Have up-to-date project progress report Ensure their requirements are satisfied Benefits for senior management 14

Benefits of using PRINCE2 Benefits for the project Benefits for the project manager Benefits for other stakeholders Benefits for senior management Management by exception Involvement only if a project deviates from its plan 15

PRINCE2 Terminology BUSINESS CASE Information (document) that justifies the setting up, continuation or termination of the project Why should we sponsor this project? It is updated at pre-defined key stages throughout the project 16

PRINCE2 Terminology PRODUCT Everything that the project has to create or change, however physical or otherwise it may be It can vary from physical items such as building, machinery, etc, to intangible things such as culture change, public perception, etc. 17

PRINCE2 Terminology CUSTOMER A person or group that has commissioned the work and will be benefiting from the end results 18

PRINCE2 Terminology SUPPLIER A person or group that is providing specialist resources and skills to the project or is providing goods and services to create the project outcome required by the customer and/or users 19

PRINCE2 Terminology USER Person or group who will use or operate the final product In some situations, the customer and user may be the same group of people 20

PRINCE2 Terminology PROJECT MANAGER Person or group who will be responsible for project planning, organizing and controlling The Project Manager selects people to do work on the project and makes sure that the work is done properly and on time 21

PRINCE2 Terminology PROJECT SUPPORT Person or group who are responsible for administrative services, advise and guidance for Project related tasks On smaller projects this is typically the Project Manager, but if the project is more complex it could be a separate person (PM Assistant) CENTRE OF EXCELLENCE Person or group who can provide Expertise on project management techniques Advise on project areas like Quality, Planning, Risk mngt, etc. A central filing system for a project 22

PRINCE2 Terminology PROJECT BOARD A group consisting of the Customer, a Senior User and a Senior Supplier The Project Manager needs to report regularly to the Project Board to keep them informed of progress and/or foreseeable problems The Project Board needs to provide the Project Manager with the necessary project decisions 23

PRINCE2 Terminology PROJECT A management environment that is created for the purpose of delivering one or more business products according to a specified Business Case 24

PRINCE2 Terminology PROJECT A management environment that is created for the purpose of delivering one or more business products according to a specified Business Case 25

PRINCE2 Terminology PROJECT A management environment that is created for the purpose of delivering one or more business products according to a specified Business Case 26

Project Characteristics A finite and defined life cycle Defined and measurable business products A corresponding set of activities to achieve the business product A defined amount of resources An organization structure with defined responsibilities to manage the project 27

Product vs Project Life Cycle Idea Study Trigger Specify Design Develop Test Change Over Asses value Use Scrap Product life span Project Life Cycle 28

Product Benefits Projects are focused on delivering Products to meet the specified Business Case The Product benefits can take different forms Financial (increased profit, reduced costs) Strategic (move the organization towards its goals) Legislative (fulfill a requirement laid down by a head office or government) 29

Feasibility study Recommended approach with PRINCE2 is to carry out a feasibility study in a separate and distinct project Problem Definition Investigation Development of Options Submission of Recommendations 30

Process Based Approach PRINCE2 uses a process based approach to project management Each process defines the management activities to be carried out during the project PRINCE2 is based on certain principles and themes (components) that are incorporated into the seven processes 31

PRINCE2 Themes (Components) Project Business Case OrganizationQualityPlansRiskChangesProgress 32

PRINCE2 Principles Continued business justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailored to suit the project environment 33

PRINCE2 Processes 1. Starting up a Project 2. Directing a Project 3. Initiating a Project 4. Controlling a Stage 5. Managing Stage Boundaries 6. Managing Product Delivery 7. Closing a Project 8. Planning* *Planning as a separate stage is taken out from the Prince Revision 34

PRINCE2 Processes 35

1. Starting Up a Project Pre-project process Ensure that the prerequisites for initiating a project are in place The project management team is designed Establishing of Business Case Project Approach (in general terms how a solution will be provided) 36

2. Directing a Project This process runs from the Starting up a Project until the Project Closure This process is aimed at the Project Board (senior management) The project board is responsible for Authorizing the initiation of a project Approving the Project Initiation Document Stage Plan Monitor progress, react to major project threats Project closure 37

3. Initiating a Project At this stage it is defined how the required Product quality will be achieved Plan and cost of the project is established Revise the Business Case (if necessary) Encourage the Project Board to take ownership and commit resources for the Project Key product of this process is a Project Initiation Document Includes a Project/Stage plan 38

4. Controlling a Stage This process is about monitoring and controlling each Stage of the project In each Stage there is a cycle of Authorizing work to be done Gathering progress information about the work Watching for changes Reviewing Reporting Taking corrective action The Stage Plan is updated throughout this cycle according to needs and/or unexpected events 39

5. Managing Stage Boundaries This process produces information that will be used by the Project Board to decide whether to continue with the project or not The objective is to assure the Project Board that all the tasks in the current Stage Plan have been completed as defined Outcomes of this process include End Stage Report The next Stage Plan If needed, revised Project Plan If needed, updated Business Case 40

6. Managing Product Delivery This process is to ensure that planned products are created and delivered in each Stage of the project Outcomes of this process are Team Plans Quality Log updates Project Issues Checkpoint Reports 41

7. Closing a Project The purpose of this process is to execute a controlled close to the project Objectives of this process are Assess the extent to which the objectives in the Project Initiation Document have been met Assess to what extent the expected Products have been handed over and accepted by the Customer Confirm maintenance and operation arrangements are in place 42

Process and Component links 43

Questions 44