Project Principles, Themes and Processes

1. Business as usual (BAU) is the term that describes day to day operations of a business.

2. However, for a business to progress/ grow, changes need to be introduced to the

business to adapt to the environment. Hence, projects are created to introduce changes to a
business.

3. PRINCE2 defines a project as "a temporary organization that is created for the purpose of
delivering one or more business products according to an agreed business case".

4. Due to that definition, a project possesses 5 characteristics: Change, Temporary, Cross

Functional, Unique, Uncertainty.

5. All projects contain 6 aspects to be managed. They are Scope, Quality, Risk, Cost, Time,
Benefits. Hence, PRINCE2 principles, processes and themes are set out to plan, delegate,
monitor and control the above project aspects.

6. PRINCE2 follow the 7 principles as below:

• Continued business justification

• Learn from experience
• Defined roles and responsibilities
• Manage by stages
• Manage by exception
• Focus on products
• Tailor to suit the project

7. PRINCE2 Themes describe those aspects of project management that must be addressed
throughout the project. There are 7 themes defined in PRINCE2 which are:

• Business Case
• Organization
• Quality
• Plans
• Risk
• Change
 • Progress

8. PRINCE2 Processes describe the activities required to direct, manage and deliver a project
successfully. There are also 7 processes that are used to achieve the above objectives which
are:

• Starting up a project (SU)

• Initiating a project (IP)
• Controlling a stage (CS)
• Managing product delivery (MP)
• Managing stage boundary (SB)
• Closing the project (CP)
• Directing a project (DP)
Business Case Theme

1. Business Case Theme is created to support the first PRINCE2 Principle which is "Continued
Business Justification"
=> Any project should be driven and underpinned by a viable business case"

2. In any event, a business case should be routinely updated at the end of each
management stage.

3. Within the business case document, the following contents should be included:

• Reasons for the project

• Benefits of the project
 • Costs
• Risks
• Timescales

4. The main purpose of a project business case is for the Project Board to consider and make
key decisions regarding:

• Desirability of the project

• Viability of the project
• Achievability of the project

5. The minimum requirements for a project to be regarded as a PRINCE2 project are:

• Create & maintain a business justification (usually a business case)

• Review & update the justification in response to decision & events that affect the
project's desirability, viability, and achievability.
• Define the management actions to ensure the outcomes are achieved and the
benefits are realized.
• Define and document the roles & responsibilities for the business case & benefits
management.
6. There are 2 products that are associated with the Business Case Theme.

• Business Case documentation

• Benefits Management Approach
=> details and usage are explained in the video in favorite

7. Business Case Documentation must have the following 9 sections:

• Executive Summary
• Reasons
• Business options
• Expected benefits
• Expected disbenefits
• Timescale (total project duration)
• Costs (Operation, maintenance & funding arrangements)
• Investment appraisal
• Major risks
Organization Theme

1. The main purpose of the PRINCE2 Organization theme is to define and establish the
project structure of accountability and responsibility. In other words, it helps define roles
that engage in the 3 project interests which are Business, Users and Suppliers.
=> these 3 areas represent the main stakeholder group

2. The Organization theme supports the PRINCE2 principle "Defined roles and
responsibilities".

3. PRINCE2 defines a stakeholder as "Any individual, group or organization that can affect or
be affected, or perceive itself to be affected by an initiative".
4. => The Executive represents the Business Interest, and the project products should
represent value for money.
=> The Senior Users represent the stakeholders from the user community. This group
determines the project requirements and use the project outputs to obtain the desired
outcomes.
=> Senior Suppliers that provide the skills and build products belong to the Supplier
Interest. This group understands the req. standards and is from internal or external.

5. According to PRINCE2 Organization theme, there are 4 basic levels of management.

• Corporate/Programme Management (sit outside the project management team)

• Directing
• Managing
• Delivering

6. Different from the Project Board which consists of a group of people, a project manager is
a job of one person, who is responsible for all day-to-day activities of the entire project.

7. the key responsibilities of a project manager are:

• Planning the project

• Providing staff motivation and leadership
• Liaising with Programme Management
• Defining responsibilities for specialists
• Reporting project progress to the Project Board

8. All projects have a requirement for project administration. This is defined as project
support in PRINCE2. This is an essential role and is often take by a person or a group of
people.

9. Some of the main tasks of the project support are:

• Setting up/maintain project documentation and filing system

• Updating plans and assessing the impact of changes
• Defining and maintaining project management standards
• Configuration management and change control
• Taking meeting minutes
• Compiling reports
10. Project Assurance function can be split into 3 key areas which are Business Assurance,
User Assurance and Supplier Assurance.
=> each or all board members have an option to delegate assurance responsibility to a third
party. This CANNOT be assigned to a project manager; team managers or project supports.

11. According to PRINCE2, to fulfill the Organization theme, the minimum requirements are:

• Define the organization structure and roles

• Document the rules for delegating the responsibilities of the Change Authority
• Define the approach to communicating and engaging with stakeholders

12. Two products of the Organization theme are:

• PID => setting out the team structure

• Communication Management approach => to define means and frequency of
communication and to facilitate engagement with stakeholders
Plan Theme

1. Effective project management relies on effective planning because without a plan, there will be no
control.

2. A plan will provide detailed information about:

• What has to be produced? (Products/outputs)

• What has to be done to produce it? (detailed activities involved)
• What has to be done to produce it correctly? (quality assurance)
• When will it be produced? (Timescale/duration)
• How progress will be monitored? (Control measures)
• How to control risks? (Risk management)

3. PRINCE2 suggests 3 levels of plan should be utilized.

• Project plan
 • Stage plan
• Team plan

4. There are the 7 planning steps to be used in planning according to PRINCE2.

• Designing a plan

=> determine the plan format, No. of stages and links to programme/portfolio

• Defining and analyzing the products

• Identifying activities/tasks and dependencies
• Preparing estimates
• Preparing a schedule
• Analyzing risks to the plan
• Documenting the plan

=> include contents, constraints, monitor and control

5. PRINCE2 minimum requirements for project planning are:

• Ensure the plans enable the business case to be realized

• have at least 2 management stages
• Produce a project plan for the whole project and a stage plan for each management stage
• Use the product-based planning technique (7 step planning approach)
• Produce specific plans for managing exception
• Define the roles and responsibilities for planning
• Use lessons to inform planning

6. Based on PRINCE2, there are 5 products produced in the Plan theme:

• Project product description

• Product description
• Product breakdown structure
• Plans
• Product flow diagram (Optional)

PROJECT PLAN

7. Project Plan consists of high-level view of the whole project. This will include milestones, resource
requirements and cost/time estimates.

=> Initial project plan will be presented as a part of PID in project initiation stage. It will be
revised/updated as the project goes along. This is a major document used by the Project Board to
measure actual progress against expectations.
8. Project plan is created during the initiating a project process with the initiation stage plan being
produced during the starting up a project process. Subsequent stage plans are produced during the
managing a stage boundary process.

9. The Project plan provides a statement of how and when a project time, cost, scope and quality
targets are to be achieved. It also identifies the products, activities and resources are required as
well as identify the major control points (a.k.a project management stages & project milestones)

10. Project plan is used by the Project Board as a baseline to monitor a project progress stage by
stage.

STAGE PLAN

11. Detailed stage plan is then followed. They will never extend beyond stage horizon (Stage
boundary)

=> PRINCE2 defines a stage plan as "a detailed plan used as a basis for project management control
throughout a management stage".

12. Stage plan is similar to project plan in terms of contents. However, it is broken down to the level
of details required for day-to-day control by a Project Manager.

13. A stage plan is required for each management stage, and it is finalized near to the end of the
previous stage.

14. The stage plan is for a much shorter period than the project plan and it is developed based on
the performance of the previous stage.

TEAM PLAN

15. Team plan is used to cover the work of the team or for work packages in RINCE2 => this level of
plan is optional.

16. They are usually produced in parallel with the stage plans and during the managing product
delivery process.
EXCEPTION PLAN

16. When it is predicted that the current plan is no longer finished within the agreed tolerances, an
exception plan is created to replace that plan. It is produced at the same level of detail as the plan it
replaces and can be used to replace both a project plan and a stage plan if required.

17. There is no need to produce an exception plan to replace a team as the project manager has the
authority to make changes to the team plan to suit.

18. An exception plan replacing the project plan needs a Corporate/Programme management's
approval. Likewise, an exception plan replacing a stage plan needs a Project Board's approval.

PRODUCT-BASE PLANNING

19. This is a planning approach that focuses on all the products/objectives to be achieved in a project
to define activities of focus.

20. Defining and analyzing project products consist of 4 main steps:

• Writing a Project Product Description => PM, Senior User & Executive work on this tgt.
• Creating a Product Breakdown Structure => Similar concept to work breakdown structure
where Products are classified in a hierarchical structure
• Writing a Product Descriptions for all identified products
• Producing a Product Flow Diagram

=> As a remind: The above 4 steps produce 4 out of 5 products of the Plan Theme

21. Product Breakdown Structure (PBS) can be used for Project plans, Stage plans and optionally for
Team plans.

22. Key benefits of Product-based planning are:

• Consistently identified products

• Clearly defined requirements => improved communication
• Defined scope boundary
• Easier to identify external products and manage risks
• Create a basis of Work packages for suppliers
• Gain agreement on production, review, and approval responsibilities
RISK THEME

1. Risk is defined as "an uncertain event that, should it occur, will have an effect on the achievement
of objectives. It should consist of a combination of the probability of a perceived threat or
opportunity occurring, and the magnitude of its impact on objectives".

2. Threat is a risk having a negative impact and an opportunity is a risk having a positive impact.

3. For risk management to work effectively, risks need to be:

• Identified
• Assessed
• Planned for suitable responses to the defined risks, assigning owners & actionees
 • Controlled => making sure responses are implemented, monitored, and controlled

4. PRINCE2 approaches to risks based on the 9 generic risk principles:

• Understanding the project context

• Involve the stakeholders
• Establishing clear project objectives
• Developing a project risk management approach
• Reporting on risk regularly
• Defining clear roles and responsibilities
• Establishing a support structure and supportive culture for risk management
• Monitor for early warning indicators
• Establishing a review cycle and seek continual improvement

PRINCE2 MINIMUM REQUIREMENTS FOR RISK MANAGEMENT (RISK THEME)

5. There are 4 minimum requirements to satisfy PRINCE2 for risk management:

• Define the Risk Management Approach

• Maintain Risk Register
• Ensure risks are identified, assessed, managed, and reviewed
• Use lesson to inform risk identification and management

6. There are 2 products of Risk theme based on PRINCE2:

• Risk Management Approach

• Risk Register

7. Risk Management Approach must cover:

• the way we identify and assess risks, implement responses, and communicate risks
• Assess whether the risks might affect the business justification
• the roles and responsibilities

8. Risk Register purpose is to provide a record of identified risks, their status and history. The Risk
Register must contain:

• Risk Identifier
• Risk description
• Risk Author
• Date registered
• Risk Category
• Probability, impact & expected value
• Proximity (how close to present time risk anticipated to happen)
 • Risk response categories (document how project will treat the risk)
• Risk response (detailed action for each risk response category)
• Risk status
• Risk owner (person managing the risk-only one owner per risk)
• Risk actionee

9. Risk Management Approach and Risk Register are the 2 products created during the Initiating a
Project process.

10. The risk management procedure recommended by PRINCE2 contains 5 steps:

• Identify context and risks

• Assess estimate and evaluate
• Plan
• Implement
• Communicate

=> the main purpose of risk manage is not about eliminating the risks, but it is about
understanding the risks and where appropriate take action to bring the risks to an acceptable
level.

RISK IDENTIFICATION

11. Risk identification involves identifying the context so that the Risk Management Approach
can be established.

=> this will involve examine the project mandate, project brief and project product description.

=> once all risks are identified, they will need to be recorded in the Risk Register.

12. There are many techniques that could be used to identify risks such as:

• Review lessons
• Risk checklists
• Risk prompt lists
• Brainstorming
• Risk breakdown structures

RISK ASSESSMENT

13. Once all risks are identified, these risks can then be assessed based on their probability,
impact, and proximity.
14. It is usual for risks to be placed on a Probability Impact Grid to obtain an assessment of risk
severity and to enable risks to be ranked so that management, time, and effort can be
prioritized.

RISK PLAN

15. After all the risks are assessed, a series of risk responses are to be implemented.

16. PRINCE2 suggests 6 basic risk responses for both threat and opportunity as below:

• Threat Prepare contingent plans

Accept

Share

Transfer

Avoid

Reduce

• Opportunity Prepare contingent plans

Accept

Share

Transfer

Exploit

Enhance

IMPLEMENT THE PLAN FOR RISK

17. The primary goal of this step is to put risk responses into action. During this step, the plan
will be amended, and clear responsibilities will be identified for the risk owner and the risk
actionees.

18. The risk owner will manage, monitor, and control the risk. The risk actionees will response to
risk and are supported by the risk owner.
QUALITY THEME

1. PRINCE2 defines Quality as "The degree to which a set of inherent characteristics of a product,
service, process, person, organization, system or resource fulfils requirements".

2. PRINCE2 defines Quality Management as " The coordinated activities to direct and control an
organization with regard to quality".

3. Main aim of the quality management is to ensure that products meet business expectation and
enable the design benefits to be realized.
4. PRINCE2 Quality theme is created to support PRINCE2 principle "Focus on products" and this
principle is the key focus for quality management.

QUALITY PLANNING AND CONTROL

5. Quality planning is about:

• Defining the project's products

• Defining the quality criteria
• Defining the quality method (In-process and Appraisal)
• Defining the quality responsibilities

6. The main purpose of the quality planning are:

• To provide a secure basis for the Project Board to agree on expectations or Acceptance
Criteria.
• To communicate agreements with stakeholders
• To set a baseline for the project's quality controls and tolerances

7. The main purpose of quality control is:

• To ensure products are fit for purpose

• To ensure products meet their quality criteria
• To ensure results being recorded in the quality register

QUALITY ASSURANCE & PROJECT ASSURANCE

8. There is differences between the Quality Assurance and Project Assurance. The differences are
defined in the definition of each term.

9. Quality Assurance is:

• The way we check if the project is managed/directed correctly

• To ensure the project is managed in line with Corporate/Programme/Customer
standards and policies
• Independent of the project

10. Project Assurance is:

• The Project Board's responsibility

• Each Project Board member has their own set of responsibilities
• Dependent of the project
MINIMUM REQUIREMENTS FOR QUALITY THEME

11. The minimum requirements for the Quality Theme are:

• Defining Quality Management Approach

• Ensuring the quality criteria for the products are specified in the product descriptions
• Maintaining quality records
• Specifying Customer's quality expectations and acceptance criteria
• Using lessons to inform planning

12. There are 2 main products of this theme:

• Quality Management Approach

• Quality Register

13. Quality Management Approach shows how quality is managed throughout the project. It will
include all processes, procedures, techniques, standards, and responsibilities

14. Quality Register provides a summary of all quality activities. This will act as a pointer to quality
records and provides unique reference to each quality activity

CUSTOMER'S QUALITY EXPECTATION (CQE) & ACCEPTANCE CRITERIA

15. PRINCE2 defines Customer's quality expectations as "A statement about the quality expected
from the project product, captured in the project product description".

=> Project Product Description includes:

➢ Purpose of the products

➢ The product info
➢ CQE
➢ Acceptance Criteria
➢ Project level quality tolerance

16. CQEs are often discussed and agreed with customers during starting up a project process. They
are often expressed in broad terms and then are expanded into measurable formats and prioritized

=> Senior User, Senior Supplier and Project Manager should have as share understanding of these
expectations.
17. CQE will cover:

• Key quality requirements

• Standard and processes
• Quality Management system being used
• Assessment measurements

18. Once CQE is agreed, Acceptance Criteria will be developed. This should be prioritized and can
help set quality tolerances.

19. Acceptance Criteria is defined as " A prioritized list of criteria that the project product must meet
before the customer accept it. In other words, measurable definitions of the attributes required for
the set of products to be acceptable to key stakeholders".

20. It is good to be aware that both CQE and Acceptance Criteria will be developed over time as
project goes along.

QUALITY REVIEW TECHNIQUE

21. During the Initiating a Project process, Quality Management Approach is defined. It will describe
the quality management systems used, applicable standards, approach to Project Assurance and any
tailoring required.

22. Product Description is also essential. This will contain quality specifications required and quality
methods used to judge products' quality and ensures that the team will build the products to the
right standards.

23. Quality Review technique will require a team of qualified people get together to check the
completed products for errors. This review can occur at any point within a project and any product
can be the subject of a review.

=> Quality Review will be carried out in the Managing Product Delivery process.

=> Product Description will be examined in this technique to ensure that the right quality standards
are met.

24. The main objectives of Quality Review technique are:

• Assess product against set criteria

• Provide wider acceptance of product
 • Confirm product is complete
• Baseline product for change control

25. There are 3 basic steps for Quality Review technique:

• Review preparation
• Review meeting agenda
• Review follow-up

=> Review prep involves confirming time, location, attendees of a quality review meeting. A copy of
product to be distributed and assess against quality criteria (product description) and prepare
question list

=> Review Meeting Agenda involves discussion and clarification on major errors, agreement on
appropriate actions, product sign-off and documentation of actions and responsibilities.

=> Review Follow-up usually involves completing defined actions in previous meeting,
communicating results to management, and storing records produced during the review.

26. There are 4 defined roles in Quality Review technique:

• The Chair - conduct review

• The Presenter - introduce products and present producers
• The Reviewer - review the products
• The Administrator - provide admin support, record results and recommended actions
CHANGE THEME

1. The purpose of the Change Theme in PRINCE2 is to identify, assess and control any potential and
approved changes to the project baseline.

2. PRINCE2 defines a baseline as "the reference levels against which an entity is monitored and
controlled".
3. Issue & Change Control are continual activities that are performed throughout the life of a project
and without them, the project will be unresponsive to its stakeholders and can be easily drifted out
of control.

4. PRINCE2 defines the term "Issue" as "anything that happens during the project which, unless
resolved, will result in a change to a baselined product, plan or performance targets (time, cost,
scope, quality, risk and benefits)".

5. There are 3 types of Issue that may arrive during a project:

• A request for change (proposal to change a baseline)

• Off-specification
• Problem or concern - to be resolved or escalated to the Project Board for direction

APPROACH TO CHANGE

6. During the initiating a project, a control for addressing changes and issues will be defined and
documented in the Change Control Approach. It will later be refined, updated and reviewed during
the Managing a stage boundary process if required.

7. There are 6 products involved in the change control process (Change theme) are:

• Change Control Approach

• Configuration Item Records
• Product Status Accounts
• Daily Log
• Issue Register
• Issue Reports

8. The Change Control Approach will cover procedures for:

• Change control
• Issue management
• Records
• Timing of activities
• Assessment scales

9. When considering changes, 2 of the most important aspects to be considered and approved are:

• Change Authority - responsibility to agreeing to implement changes

• Change Budget - method of funding for changes
=> Project Board has the change authority but, in most projects, limited authority for day-to-day
changes will be delegated to a Project Manager.

CONFIGURATION MANAGEMENT DOCUMENTATION

10. Configuration Item Records covers:

• Status
• Version
• Variance

11. Product Status Account covers:

• State of all products with defined limits

12. Daily Log covers:

• Recorded problems/concerns
• Possible required actions
• Significant events

13. Issue Reports covers:

• Description
• Impact assessment
• Recommendations for the 3 types of issues

=> these will be recorded in the Issue Register

14. The Change Control Procedure consists of 5 steps:

• Capture
• Assess
• Propose
• Decide
• Implement

=> more details re-watch S3-6P6

ROLES & RESPONSIBILITIES IN CHANGE THEME

15. Corporate/Programme Management provides strategy for:

• Change control
• Issue resolution
• Configuration management

16. The Executive:

• Determine the Change Authority and the Change Budget

• Determine Severity ratings for issues
• Determine the Priority ratings for RFC and off-specification

17. Senior User:

• Raise issues
• Ensure decisions focus on expected benefits
• Response to request for advice from Project Manager

18. Senior Supplier:

• Raise issues
• Ensure decisions focus on integrity of complete solution
• Response to request for advice from Project Manager

19. Project Manager:

• Raise issues to Project Board

• Manage issues/change control procedure

20. Team Manager:

• Raise issues to Project Manager in the domain he/she manages.

MINIMUM RREQUIREMENT FOR CHANGE THEME

21. The minimum requirements for PRINCE2 are:

• Define change control approach

• Define how product baselines are created, maintained and controlled
• Maintain some form of issue register
• Ensure that issues are captured, examined, managed and reviewed
• Use lessons to inform issue identification and management
• 2 products need to be produced are Change Control Approach and Issue Register
PROGRESS THEME

1. PRINCE2 defines that the purpose of Progress theme is "to establish mechanisms to monitor and
compare actual achievements against those planned in order to provide a forecast for the project
objectives, including its continued viability and control any unacceptable deviations".

2. Progress ensure that for each level of the management team, the management level above can:

• Monitor progress
• Compare achievement with plan
• Review plans & options against future situations
• Detect problems
• Identify risks
• Initiate corrective action
• Authorize further work
3. PRINCE2 provides 2 types of control throughout the project:

• Time driven control (checkpoint/highlight reports)

• Event driven (exception reports, end stage reports)

PROGRESS CONTROL

4. Project Board controls:

• Authorization (Initiation, Project, Stage & Closure)

• Highlight reports
• Exception reports
• Issue reports
• Exception assessments

5. Project Manager controls:

• Authorization (work packages)

• Progress updates (through checkpoint reports)
• Exception and changes (through daily log, Issue register, Product Status account, Quality
register and Risk register)

TOLERANCES

6. PRINCE2 defines tolerances for:

• Time
• Cost
• Quality
• Risk
• Benefit
• Scope

=> These are allocated initially by Corporate/Program Management who sit outside the project
team, but set the overall tolerance limits for the project

=> These will be implemented and managed by the 3 level of project management Project Board
(Directing), Project Manager (Managing) and Team Manager (Delivering)

7. Tolerances for time, cost and scope are set in:

• Project plan
• Stage plan
• Work package
8. Tolerances for Risk are set in:

• Risk Management Approach

• Stage plan
• Work package

9. Tolerances for quality are set in:

• Project product description

• Product descriptions

10. Tolerances for benefit are set in:

• Business case

MINIMUM REQUIREMENT FOR PROGRESS THEME

11. The minimum requirements for Progress theme are:

• Define approach to controlling progress in the PID

• Be managed in stages
• Set tolerances and be managed by exception against these tolerances
• Review the business justification when exceptions are raised
• Learn lessons to improve performance

12. Control in the project is provided by:

• Delegate authority in a downward structure

• Divide the project into management stages
• Have time-driven and event-driven reporting
• Raise exceptions