Project Management Principles Lecture 4 – PR.I.N.C.E. 2 and other methodologies and frameworks ΥΠΕΥΘΥΝΟΣ: Θ. ΜΑΝΑΒΗΣ tmanavis@ist.edu.gr

Remember...

Project Planning, Scheduling, and Control Work Breakdown Structure 1. Project 2. Major tasks in the project 3. Subtasks in the major tasks 4. Activities to be completed

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

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”

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

Who’s Using PRINCE2®?

Agile Adoption

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

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)

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 2002 - 2009 PRINCE2 Refreshed

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)

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

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

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

Project definition according to PRINCE2®

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?

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

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

PRINCE2® Structure: Principles

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.

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.

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.

Senior Project Supplier Project Board Project Executive Project Board Senior Project User Senior Project Supplier Project Manager

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

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

Each Process has...

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

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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

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.

PRINCE2® Themes Business Case Organization Quality Plan Risk Change Progress

PRINCE2® Themes

Processes vs Themes

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

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)

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)

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)

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

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.

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

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.

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

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

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.

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.

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!

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

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

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