PRINCE2® Foundation

Quick
Reference
Guide

Official Training Materials

Introduction 1. Key concepts relating to projects and
PRINCE2

The PRINCE2® Foundation qualification is intended for project managers and aspiring project The definition and characteristics of a project
managers. It is also relevant to other key staff involved in the design, development and delivery of
projects, including: project board members, team managers, project assurance, project support, and Project A temporary organization that is created for the purpose of delivering one or more business
operational line managers/staff. products according to an agreed business case.

The PRINCE2 Foundation examination is intended to assess whether a candidate can recall and Characteristics of a project that distinguish project work from business as usual:
understand the PRINCE2 project management method (as described in the syllabus). The PRINCE2 • Change Projects are the means by which we introduce change.
Foundation qualification is a prerequisite for the PRINCE2 Practitioner exam, which assesses the
ability to apply understanding of the PRINCE2 project management method in context. • Temporary As the definition of a project states, projects are temporary in nature.
• Cross-functional A project involves a team of people with different skills working together
(on a temporary basis) to introduce a change that will impact others outside the team.
• Unique Every project is unique.

What you will learn

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Key concepts relating to projects and PRINCE2

How PRINCE2 principles underpin the PRINCE2 method

PRINCE2 themes and how they are applied through projects

PRINCE2 processes and how they are carried out throughout projects

The PRINCE2 Foundation exam is a 60 multiple choice questions (MCQ) exam and requires a
candidate to obtain 55% (33 questions) correct or more to pass. Figure 1.1 The structure of PRINCE2
This Quick Reference Guide may be used by learners to assist in their preparation for the PRINCE2
Foundation certification test. PeopleCert does not warrant that use of this guide will ensure passing
of the exam.

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The six aspects of project performance to be managed
3. PRINCE2 processes The seven processes describe a progression from the pre-project
activity of getting started, through the stages of the project life cycle, to the final act of project
1. Costs The degree of permissible overspend or underspend against an agreed budget.
closure:
2. Timescales The degree to which a project is permitted to deliver later or earlier than an
• starting up a project
agreed target completion date.
• directing a project
• initiating a project
3. Quality How much something can vary from agreed quality criteria.
• controlling a project
• managing product delivery
4. Scope Permissible variation of the plan’s products.
• managing a stage boundary
• closing a project.
5. Benefits The degree to which it is permissible to under-deliver or over-deliver benefits
(realized or estimated).

6. Risk Limits on the plan’s aggregated risks.

The integrated elements of PRINCE2: principles,

themes, processes and the project environment
Figure 13.1 The PRINCE2 processes
The four integrated elements of PRINCE2:

1. PRINCE2 principles The principles are the guiding obligations and good practices which 4. The project environment Organizations often want a consistent approach to managing

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determine whether the project is genuinely being managed using PRINCE2 business case: projects and tailor PRINCE2 to create their own project management method.

• continued business justification

• learn from experience
What makes a project a PRINCE2 project?
• defined roles and responsibilities
For a project to be a ‘PRINCE2 project’, as a minimum it must be possible to demonstrate that it:
• manage by stages
• manage by exception
• is applying PRINCE2’s principles
• focus on products
• is meeting the minimum requirements set out in the PRINCE2 themes
• tailor to suit the project.
• has project processes that satisfy the purpose and objectives of the PRINCE2 processes
• is either using PRINCE2’s recommended techniques or using alternative, equivalent
techniques.
2. PRINCE2 themes The themes describe aspects of project management that must be
addressed continually and in parallel throughout the project.

• organization
• quality
• plans
• risk
• change
• progress.

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The features and benefits of PRINCE2 2. How PRINCE2 principles underpin the
PRINCE2 is based on established and proven best practice and governance for project management.
It can be tailored to meet the specific needs of the organization, and it can be applied to any type
PRINCE2 method
of project. PRINCE2 provides a common vocabulary for all project participants, and ensures that
participants focus on the viability of the project in relation to its business case objectives. It promotes
Continued business justification
learning from project experience and continual improvement in organizations.

The PRINCE2 principle of continued business justification is that for all projects:
The benefits of PRINCE2 for an individual is that the individual will:
• there is a justifiable reason for starting the project.
• gain a globally recognized certification • that justification is recorded and approved.
• know how to start, manage the steps, and close a project • the justification remains valid, and is revalidated, throughout the life of the project.
• learn common project management terminology
• know how to structure a project
• improve career prospects Learn from experience
• improve standing within their organization
• clearly understand their role as project manager The PRINCE2 principle of learn from experience is that learning from experience takes place
throughout a PRINCE2 project, including:

• when starting a project

The customer/supplier context on which PRINCE2 is • as the project progresses
based • as the project closes.

PRINCE2 assumes that there will be a customer who will specify the desired result and (usually) pay

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for the project, and a supplier who will provide the resources and skills to deliver that result. Defined roles and responsibilities
Projects can exist within many contexts; they may be stand-alone (with their own business case and
justification) or they may be part of a programme or wider portfolio. Figure 2.2 shows how projects The PRINCE2 principle of defined roles and responsibilities is that all projects have the
may fit within a programme and portfolio context. In addition, projects may be wholly managed following primary stakeholders:
within the commissioning organization or be part of a commercial relationship.
• ‘business’ sponsors who endorse the objectives and ensure that the business investment
provides value for money.
• ‘users’ who, after the project is completed, will use the products to enable the organization to
gain the expected benefits
• ‘suppliers’ who provide the resources and expertise required by the project (these may be
internal or external).

Figure 2.2 Projects in the context of portfolios and programmes

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Manage by stages 3. PRINCE2 themes and how they are applied
The PRINCE2 principle of manage by stages is that a PRINCE2 project is planned, monitored throughout projects
and controlled, management stage by management stage.

Business case
Manage by exception
The purpose of the business case theme is to establish mechanisms to judge whether the
The PRINCE2 principle of manage by exception is that a PRINCE2 project has defined project is (and remains) desirable, viable and achievable as a means to support decision-making in its
tolerances for each project objective, to establish limits of delegated authority. (continued) Investment.

Focus on products Benefits management approach Defines the management actions that will be put in place to
ensure that the project’s outcomes are achieved and confirm that the project’s benefits are realized.
The PRINCE2 principle of focus on products is that a PRINCE2 project focuses on the definition
and delivery of products, in particular their quality requirements.
PRINCE2’s minimum requirements for applying the
Tailor to suit the project business case theme

The PRINCE2 principle of tailor to suit the project is that PRINCE2 is tailored to suit the project PRINCE2’s requirements for the business case theme is that to be following PRINCE2, a
environment, size, complexity, importance, team capability and risk. project must, as a minimum:

• create and maintain a business justification for the project; usually a business case

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Tailoring PRINCE2: which aspects of a project can • review and update the business justification in response to decisions and events that might
be tailored, who is responsible, and how tailoring impact desirability, viability or achievability of the project
• define the management actions that will be put in place to ensure that the project’s outcomes
decisions are documented are achieved and confirm that the project’s benefits are realized
• define and document the roles and responsibilities for the business case and benefits
The following aspects of PRINCE2 may be tailored: management.

• processes may be combined or adapted (e.g. by adding or combining activities

• themes can be applied using techniques that are appropriate to the project
• roles may be combined or split, provided that accountability is maintained and there are no
conflicts of interest
• management products may be combined or split into any number of documents or data
sources
• terminology may be changed to suit other standards or policies, provided it is applied
consistently

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Key concepts related to business justification, and the Communication management approach
differences between them
The purpose of the communication management approach is to facilitate engagement with
Key concepts related to business justification: stakeholders through the establishment of a controlled and bidirectional flow of information.

• Output A specialist product that is handed over to a user (or users). Note that management
PRINCE2 requirements for applying the organization
products are not outputs but are created solely for the purpose of managing the project.
• Outcome The result of change, normally affecting real-world behaviour and/or theme
circumstances. Outcomes are desired when a change is conceived. They are achieved as a
result of the activities undertaken to effect the change. For applying the organization theme, PRINCE2 requires that a project must, at a
• Benefit The measurable improvement resulting from an outcome perceived as an advantage minimum:
by one or more stakeholders.
• Dis-benefit A measurable decline resulting from an outcome perceived as negative by one • define its organization structure and roles. This must minimally ensure that all of the
or more stakeholders, which reduces one or more organizational objective(s). responsibilities in PRINCE2’s role descriptions are fulfilled (PRINCE2’s defined roles and
responsibilities principle)
• document the rules for delegating change authority responsibilities, if required
• define its approach to communicating and engaging with stakeholders.

PRINCE2 project management team roles

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Figure 6.1 Relationship between outputs, outcomes and benefits

Figure 7.3 PRINCE2® project management team roles

Organization theme
The purpose of the organization theme is to define and establish the project’s structure of
accountability and responsibilities.

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The roles and responsibilities of the project board are: The role and responsibilities of the team manager The team manager’s primary responsibility
is to ensure production of those products allocated by the project manager. The team manager
• being accountable to business, user and supplier interests for the success or failure of the reports to, and takes direction from, the project manager. The team manager role may be assigned
project to the project manager or a separate person.
• providing unified direction to the project
• delegating, using the PRINCE2 organizational structure and controls designed for this purpose The role and responsibilities of project support Project support is the responsibility of the
• facilitating integration of the project management team with the functional units of the project manager. If required, the project manager can delegate some of this work to a project
participating support role: this may include providing administrative services or advice and guidance on the use of
• corporate, programme management, or customer organizations project management tools. It could also provide specialist functions to a project such as planning or
• providing the resources and authorizing the funds needed for successful completion of the risk management. Unless performed by a corporate, programme management or customer function,
project project support is typically responsible for administering change control. The role of project support
• effective decision-making is not optional, but the allocation of a separate individual or group to carry out the required tasks is.
• providing visible and sustained support for the project manager This role is the responsibility of the project manager. The project manager can delegate some of this
• ensuring effective communication both within the project team and with external stakeholders work.

The role and responsibilities of the executive The executive, supported by the senior user(s)
and senior supplier(s), is ultimately accountable for the project’s success and is the key decision
maker. The executive’s role is to ensure that the project is focused throughout its life on achieving
its objectives and delivering a product that will achieve the fore casted benefits. The executive has
to ensure that the project gives value for money, ensuring a cost-conscious approach to the project,
balancing the demands of the business, user, and supplier.

The role and responsibilities of the senior user To specify the needs of those (including
operations and maintenance services) who will use the project product for user liaison with the

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project management team and for monitoring that the solution will meet those needs within the
constraints of the business case in terms of quality, functionality, and ease of use.

The role and responsibilities of the senior supplier To represent the interests of those
designing, developing, facilitating, procuring, and implementing the project product.

The role and responsibilities of project assurance To monitor all aspects of the project’s
performance and products independently of the project manager. Project board members are
responsible for the aspects of the project assurance role aligned with their respective areas of
concern (business, user or supplier).

The role and responsibilities of the senior supplier To represent the interests of those
Figure 7.4 The many facets of the project manager role
designing, developing, facilitating, procuring, and implementing the project product.

The role and responsibilities of the change authority Τo authorize requests for change or
off specifications. It is the project board’s responsibility to agree to each potential change before it
is implemented. The project board needs to decide, before the project moves out of the initiating
a project process, if it wishes to delegate some authority for approving or rejecting requests for
change or off-specifications. These delegated authorities must be written into the appropriate role
descriptions.

The role and responsibilities of the project manager The project manager is the single focus
for day-to-day management of a project. This person has the authority to run the project on behalf
of the project board within the constraints laid down by the project board. The role of the project
manager must not be shared.

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Combining of roles PRINCE2 allows roles to be combined within the following constraints:

• the executive and project manager roles cannot be combined

• there cannot be more than one executive or project manager
• the executive’s accountability for project success cannot be delegated
• the project board should not assign any project assurance roles to the project manager, team
manager, or project support.

When combining roles, the project board should consider any conflicts of responsibilities, whether
one person has the capacity to undertake the combined responsibilities, and whether any
bottlenecks might be created as a result. Also, it is not recommended to combine the roles of senior
user and senior supplier as this can create conflicts of interest for an individual.

Key concepts related to organization Figure 7.1 The three principal project interests

Stakeholder: Any individual, group, or organization that can affect, be affected by, or perceive itself
The project management structure has four levels, three of which represent the project management
to be affected by an initiative (i.e. a programme, project, activity or risk).
team and a fourth that sits outside the project. Figure 7.2 illustrates these four levels of management.

The three principle project interests are:

1. Business The products of the project should meet a business need that justifies the
investment in the project. The project should also provide value for money. The business
viewpoint therefore should be represented to ensure that these two prerequisites exist before

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a project commences and remain in existence throughout the project.

2. User Individuals or groups for whom some or all of the following will apply:

• they will use the outputs of the project to realize the benefits
• they will operate, maintain or support the project’s outputs
• the outputs of the project will impact them

The user presence is needed to specify the desired outputs and ensure that the project delivers
them through the supplier.

3. Supplier Those who will provide the necessary skills and produce the project product. The Figure 7.2 The four levels of management within the project management structure

supplier needs to have an understanding of all the relevant standards with which the output
(product) needs to comply, and the project may need to use both in-house and external
supplier teams to construct the project product.

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Quality Key concepts related to quality, and the differences
between them
The purpose of the quality theme is to define and implement the means by which the project
will verify that products are fit for purpose. Quality planning is defining the project product and its components, with the respective quality
criteria, quality methods (including effort required for quality control and product approval) and
The quality management approach is an approach defining the quality techniques and quality responsibilities of those involved. The purpose of quality planning is to provide a secure basis:
standards to be applied, and the various responsibilities for achieving the required quality levels,
during a project. • to obtain agreement by the project board on the overall quality expectations, the products
required with their associated quality criteria (including corporate and other standards to
The quality register is a register containing summary details of all planned and completed quality be observed), the means by which quality will be achieved and assessed and, ultimately, the
activities. The quality register is used by the project manager and project assurance as part of acceptance criteria by which the project product will be judged
reviewing progress. • to communicate these agreements unambiguously so that all the project stakeholders have a
common understanding of what the project is setting out to achieve
• for control (i.e. establishing an effective baseline for the project’s quality controls, including the
PRINCE2’s minimum requirements for applying the quality tolerances) and a secure means of achieving products that are fit for purpose.
quality theme
Quality control is the process of monitoring specific project results to determine whether
To follow PRINCE2, a project must, as a minimum: they comply with relevant standards and of identifying ways to eliminate causes of unsatisfactory
performance.
• define its quality management approach. This approach must minimal cover:
- the project’s approach to quality control Quality assurance is a planned and systematic process which provides confidence that outputs will
- the project’s approach to project assurance meet their defined quality criteria when tested under quality control. It is carried out independently

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- how the management of quality is communicated throughout the project lifecycle of the project team. The process must comply with relevant corporate, programme management, or
- the roles and responsibilities for quality management (PRINCE2’s defined roles and customer standards and policies.
responsibilities principle)
• specify explicit quality criteria for products in their product descriptions (PRINCE2’s focus on Project assurance is the project board’s responsibility to assure itself that the project is being
products principle) conducted correctly. The project board members each have a specific area of focus for project
• maintain records to provide evidence that the planned quality activities have been carried out, assurance, namely business assurance for the executive, user assurance for the senior user(s) and
and summarize those activities that are planned or have taken place in some form of quality supplier assurance for the senior supplier(s). Project assurance is therefore independent of the
register project manager but not independent of the project.
• specify the customer’s expectations and prioritized criteria for ther project in the project
production description Customer’s quality expectations is a statement about the quality expected from the project
• use lessons to inform quality planning, the definition of quality expectations and quality criteria product, captured in the project product description.
(PRINCE2’s learn from experience principle).
Acceptance criteria is a prioritized list of criteria that the project product must meet before the
customer will accept it (such as measurable definitions of the attributes required for the set of
products to be acceptable to key stakeholders).

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Plans It may be optionally used for team plans. PRINCE2 recommends the steps shown in Figure
9.2 for product-based planning although alternative approaches may be used. PRINCE2
recommends the steps shown in Figure 9.6 for defining and analyzing the products to produce
The purpose of the plans theme is to facilitate communication and control by defining the
a product breakdown structure, although alternative approaches may be used
means of delivering the products (the where and how, by whom, and estimating the when and how
• produce specific plans for managing exceptions (PRINCE2’s manage by exception principle)
much).
• define the roles and responsibilities for planning (PRINCE2’s defined roles and responsibilities
principle)
The purpose of the plans theme • use lessons to inform planning (PRINCE2’s learn from experience principle).

The purpose of the plans theme is to facilitate communication and control by defining the
means of delivering the products (the where and how, by whom, and estimating the when and how
much).

The purpose of the project plan, stage plan, exception

plan, team plan
Plan A detailed proposal for doing or achieving something which specifies the what, when, how, and
by whom it will be achieved.

Project plan A high level plan showing the major products of the project, when they will be
delivered, and at what cost. An initial project plan is presented as part of the PID. This is revised as
information on actual progress appears. It is a major control document for the project board to
measure actual progress against expectations.

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Stage plan A detailed plan used as the basis for project management control throughout a
management stage.

Exception plan A plan that often follows an exception report. For a stage plan exception, it covers
the period from the present to the end of the current management stage. If the exception is at
project level, the project plan will be replaced.
Figure 9.2 PRINCE2’s recommended approach to product-based planning
Team plan An optional level of plan used as the basis for team management control when
executing work packages.

PRINCE2’s minimum requirements for applying the

plans theme
To the following PRINCE2, a project must, as a minimum:

• ensure that plans enable the business case to be realized (PRINCE2’s continued business
justification principle)
• have at least two management stages: an initiation stage and at least one further management
stage. The more complex and risky a project, the more management stages that will be
required (PRINCE2’s manage by stages principle)
• produce a project plan for the project as a whole and a stage plan for each management stage
(PRINCE2’s manage by stages principle)
• use product based planning for the project plan, stage plans, and exception plans.

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 The purpose of the risk management approach, risk
register
The risk management approach describes how risk will be managed on the project. This
includes the specific processes, procedures, techniques, standards and responsibilities to be applied.

The risk register provides a record of identified risks relating to the project, including their
status and history. It is used to capture and maintain information on all the identified threats and
opportunities relating to the project.

PRINCE2’s minimum requirements for applying the

risk theme
To be following PRINCE2, a project must, as a minimum:

• define its risk management approach, which must minimally cover

Figure 9.6 PRINCE2’s recommended approach to defining and analyzing the products - how risks are identified and assessed, how risk management responses are planned and
implemented, and how the management of risk is communicated throughout the project
life-cycle
Although the use of management stages in a PRINCE2 project is mandatory, the number of - assessing whether identified risks might have a material impact on the business
management stages is flexible and depends on the scale, duration and risk of the project. Defining justification of the project (PRINCE2’s continued business justification principle)
management stages is fundamentally a process of balancing: - the roles and responsibilities for risk management (PRINCE2’s defined roles and

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responsibilities principle)
• how far ahead in the project it is sensible to plan • maintain some form of risk register to record identified risks and decisions relating to their
• where the key decision points need to be on the project. analysis, management, and review
• ensure that project risks are identified, assessed, managed, and reviewed throughout the
Risk project life cycle
• use lessons to inform risk identification and management (PRINCE2’s learn from experience
principle).
The purpose of the risk theme is to identify, assess, and control uncertainty and, as a result,
improve the ability of the project to succeed.

Risk is an uncertain event or set of events that, should it occur, will have an effect on the
achievement of objectives. A risk is measured by a combination of the probability of a perceived
threat or opportunity occurring, and the magnitude of its impact on objectives.

Risk budget is a sum of money to fund specific management responses to the project’s threats and
opportunities (for example to cover the costs of any contingent plans should a risk materialize).

The risk budget is based on the aggregate cost of all the project’s planned risk responses.

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Key concepts related to risk, and the differences The recommended risk management procedure
between them: recommended risk response types
The procedure consists of five steps, the first four of which are sequential:
Threat An uncertain event that could have a negative impact on objectives or benefits.
1. Identify Context and risks
Opportunity For uncertain events that would have a positive impact on objectives.
2. Assess Estimate and evaluate

Risk response Actions that may be taken to bring a situation to a level where exposure to risk is 3. Plan
acceptable to the organization.
4. Implement
• Avoid a threat/exploit an opportunity.
• Reduce a threat/enhance an opportunity. 5. Communicate The outputs of any of the other steps may need to be communicated to
• Transfer the risk (threat or opportunity). stakeholders at any point in the process.
• Share the risk (threat or opportunity).
• Accept the risk (threat or opportunity).
• Prepare contingent plans (threat or opportunity).

Risk owner A named individual who is responsible for the management, monitoring, and control
of all aspects of a particular risk assigned to them, including the implementation of the selected
responses to address the threats or to maximize the opportunities.

Risk actionee A nominated owner of an action to address a risk. Some actions may not be within
the remit of the risk owner to control explicitly; in that situation there should be a nominated owner

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of the action to address the risk. He or she will need to keep the risk owner apprised of the situation.
In many cases, the risk owner and risk actionee are likely to be the same person. The risk owner
should be the person most capable of managing the risk. Allocating too many risks to any one
individual should be avoided.

Risk cause The source of the risk (the event or situation that gives rise to the risk). These are often
referred to as risk drivers. They are not risks in themselves, but the potential trigger points for risk.
These may be either internal or external to the project.
Figure 10.1 The risk management procedure
Risk event The area of uncertainty in terms of the threat or the opportunity.

Risk effect The effect the risk can have on the project/organization. All the steps are repeatable. When additional information becomes available, it is often necessary to
repeat earlier steps based on the new information.
Risk impact The impact(s) that the risk would have on the project objectives should the risk
materialize.

Risk probability How likely the risk is to happen.

Risk proximity The time factor of risk (i.e. when the risk may occur). The impact of a risk may vary in
severity depending on when the risk occurs.

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Change Types of issues
The purpose of the change theme is to identify, assess, and control any potential and approved
Types of issue Definition Examples
changes to the project baselines.
Request for change A proposal for a change to a baseline. The senior user would like to increase
A change budget is a sum of money that the customer and supplier agree will be used to fund the
the capacity of a product from 100 to
cost of requests for change, and possibly also their analysis costs.
150 users.
The change control approach identifies how and by whom the project’s products will be Off-specification Something that should be provided Advice from a supplier that they can
controlled and protected. by the project, but currently is not no longer deliver one of the products
(or is forecast not to be). It might be specified by the customer.
Configuration item record A record that describes the status, version, and variant of a a missing product or a product not
configuration item and any details of important relationships between them. meeting its specifications.
Problem/concern Any other issue that the project Advice from a team manager that a
Issue report Contains the description, impact assessment, and recommendations for a request for
manager needs to resolve or escalate team member has been taken ill and
change, off-specification, or a problem/concern.
as a result the target end date for
a work package will slip by a week.
Product status account Provides a snapshot of the status of products within the project,
Notification that one of the suppliers
management stage or a particular area of the project
has gone bankrupt, resulting in the
need to identify and engage a new
PRINCE2’s minimum requirements for applying the supplier.
change theme Table 11.1 Type of issues

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To be following PRINCE2, a project must, as a minimum:
The recommended issue and change control
• define its change control approach. This approach must minimally cover
- how issues are identified and managed
procedure
- assessing whether identified issues might have a material impact on the business
justification of the project (PRINCE2’s continued business justification principle) • Capture Determine issue type and severity/priority, register/log the issue.
- the roles and responsibilities for change control (PRINCE2’s defined roles and • Assess Assess issue’s impact on project objectives/business case and project risk profile,
responsibilities principle), including a defined change authority check severity/priority.
• define how product baselines are created, maintained, and controlled • Propose Identify, evaluate, and recommend options.
• maintain some form of issue register to record identified issues and decisions relating to their • Decide Escalate issue beyond delegated authority, approve, reject, or defer recommended
analysis, management, and review option
• ensure that project issues are captured, assessed, managed, and reviewed throughout the • Implement Take corrective action, update records and plans.
project life cycle
• use lessons to inform issue identification and management (PRINCE2’s learn from experience
principle).

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 Work package The set of information relevant to the creation of one or more products. It will
contain a description of the work, the product description(s), details of any constraints on production,
and confirmation of the agreement between the project manager and the person or team manager
who is to implement the work package that the work can be done within the constraints.

End stage report A report given by the project manager to the project board at the end of each
management stage of the project. This provides information about the project’s performance during
the management stage and the project status at the management stage end.

End project report A report given by the project manager to the project board, confirming the
handover of all products. It provides an updated business case and an assessment of how well the
project has done against the original PID.

Checkpoint report A progress report of the information gathered at a checkpoint, which is given
by a team to the project manager and which provides reporting data as defined in the work package.

Highlight report A time-driven report from the project manager to the project board on
management stage progress.

Exception report A description of the exception situation, its impact, options, recommendation,
and impact of the recommendation. This report is prepared by the project manager for the project
board.
Figure 11.1 Issue and change control procedure

PRINCE2’s requirements for the progress theme

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Progress To be following PRINCE2, a project must, as a minimum:

The purpose of the progress theme is to: • define its approach to controlling progress in the PID
• be managed by stages (PRINCE2’s manage by stages principle)
• establish mechanisms to monitor and compare actual achievements against those planned • set tolerances and be managed by exception against them (PRINCE2’s manage by exception
• provide a forecast for the project’s objectives and continued viability principle)
• control any unacceptable deviations. • review the business justification when exceptions are raised (PRINCE2’s continued business
justification principle)
Daily log Used to record informal issues, required actions, or significant events not captured by • learn lessons (PRINCE2’s learn from experience principle).
other PRINCE2 registers or logs. It can act as a project diary for the project manager. It can also
be used as a repository for issues and risks during the starting up of a project process if the other
registers have not been set up.

Lessons log Used as a project repository for lessons that apply to this project or future projects.

Lessons report Used to support the lessons log if more information is required. It can be used to
pass on any lessons that can be usefully applied to other projects.

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Key concepts related to progress How exceptions are reported

Exceptions are situations where it can be forecast that there will be a deviation beyond the
Event-driven and time-driven controls
tolerance levels agreed between the project manager and the project board (or between the project
PRINCE2 provides two types of progress control throughout the life of a project. board and corporate, programme management, or the customer).

One is event-driven controls: these take place when a specific event occurs. For example:
W O R K P A C K A G E -L E V E L E X C E P T IO N S
• the end stage assessment at the end of a management stage
Team manager should inform the project
• the completion of the PID
manager by raising an issue.
• the creation of an exception report.
S T A G E -L E V E L E X C E P T IO N S
The other is time-driven controls: these take place at predefined periodic intervals. For example: Project manager should produce an issue report and then
an exception report for the project board. The board may
then request an exception plan or take other action.
• monthly highlight reports for the project board
• weekly checkpoint reports. P R O J E C T -L E V E L E X C E P T IO N S
If project tolerances are forecast to be exceeded the
project board must refer this to corporate,
How tolerances are set programme or customer for a decision.

Tolerances are the permissible deviation above and below a plan’s target for cost and time without
escalating the deviation to the next level of management. There may also be tolerances for quality,
scope, benefits, and risk.

Tolerances are set against six aspects of performance for the respective level of the plan:

*
• Cost The degree of permissible overspend or underspend against an agreed budget
• Time The degree to which a project is permitted to deliver later or earlier than an agreed
target completion date
• Quality How much something can vary from agreed quality criteria.
• Scope Permissible variation of the plan’s products. For example, a project might be required
to deliver all of the must do, ‘mandatory’ requirements but be permitted to deliver only 50 per
cent or more of its should do, ‘desirable’ requirements
• Benefits The degree to which it is permissible to under-deliver or over-deliver benefits
(realized or estimated).
• Risk Limits on the plan’s aggregated risks.

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4. PRINCE2 processes and how they are The purpose, objectives, and context of the directing a
project process, including the purpose of the PID
carried out throughout projects
The purpose of the directing a project process is to enable the project board to be accountable for
the project’s success by making key decisions and exercising overall control while delegating day-to-day
The purpose of the starting up a project process is to ensure that the prerequisites for
management of the project to the project manager.
initiating a project are in place by answering the question: Do we have a viable and worthwhile
project? The decision to start the project must be explicit; the activities from starting up a project
Project initiation documentation A compilation of all the documentation developed during the
happen before this decision.
initiation that will be used to gain project board approval to proceed.

Project brief Used to provide a full and firm foundation for the initiation of the project and is
(Note: the acronym for this has been used repeatedly throughout the document, and the definition for this
created in the starting up a project process.
comes very late. This is a quick reference guide, so it is presumed that the student will already know what
its definition is, however I think it would be a good idea to write the full name on the first mention in this
The objective of the starting up a project process is to ensure that:
document, followed with a parenthesis with the acronym to ensure the students don’t get confused)
• there is a business justification for initiating the project (documented in an outline business
The objective of the directing a project process is to ensure that:
case)
• all the necessary authorities exist for initiating the project
• there is authority to initiate the project
• sufficient information is available to define and confirm the scope of the project (in the project
• there is authority to deliver the project product
brief)
• management direction and control are provided throughout the project’s life
• the various ways the project can be delivered are evaluated and a project approach selected
• the project remains viable
• individuals are appointed who will undertake the work required in project initiation and/or will
• corporate, programme management, or the customer has an interface to the project
take significant project management roles in the project.
• there is authority to close the project
• the work required for project initiation is planned (documented in a stage plan)
• plans for realizing the post-project benefits are managed and reviewed.

*
• time is not wasted initiating a project based on unsound assumptions regarding the project’s
scope, timescales, acceptance criteria, and constraints.

Context shown on the figure.

Figure 14.1 Overview of starting up a project

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Context shown on the figures below.

*
Figure 15.1 Overview of directing a project

The purpose, objectives, and context of the initiating a

project process
The purpose of the initiating a project process is to establish solid foundations for the project,
enabling the organization to understand the work that needs to be done to deliver the project
product before committing to a significant spend.
Figure 16.1 Overview of initiating a project
The objective of the initiating a project process is to ensure that there is a common
understanding of:

• the reasons for doing the project, the benefits expected, and the associated risks
• the scope of what is to be done and the products to be delivered
• how and when the project product will be delivered and at what cost
• who is to be involved in the project decision-making
• how the quality required will be achieved
• how baselines will be established and controlled
• how risks, issues and changes will be identified, assessed, and controlled
• how progress will be monitored and controlled
• who needs information, in what format, and at what time
• how the corporate, programme management, or customer method will be tailored to suit the
project.

Context shown on the figure.

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The purpose, objectives, and context of the controlling Context shown on the figure.
a stage process

The purpose of the controlling a stage process is to assign work to be done, monitor such
work, deal with issues, report progress to the project board, and take corrective actions to ensure
that the management stage remains within tolerance.

The objective of the controlling a stage process is to ensure that:

• attention is focused on delivery of the management stage’s products; Any movement away
from the direction and products agreed at the start of the management stage is monitored to
avoid uncontrolled change and loss of focus
• risks and issues are kept under control
• the business case is kept under review
• the agreed products for the management stage are delivered to stated quality standards,
within cost, effort, and time agreed, and ultimately in support of the achievement of the
defined benefits
• the project management team is focused on delivery within the tolerances laid down.

*
Figure 17.1 Overview of controlling a stage

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The purpose, objectives, and context of the managing Therefore, the process should be executed at, or close to, the end of each management stage.

product delivery process The objective of the managing a stage boundary process is to:

The purpose of the managing product delivery process is to control the link between the • assure the project board that all products in the stage plan for the current management stage
project manager and the team manager(s), by agreeing the requirements for acceptance, execution have been completed and approved
and delivery. • prepare the stage plan for the next management stage
• review and, if necessary, update the PID; in particular the business case, project plan, project
The objective of the managing product delivery process is to ensure that: approaches, project management team structure and role descriptions
• provide the information needed for the project board to assess the continuing viability of the
• work on products allocated to the team is authorized and agreed project
• team managers, team members, and suppliers are clear as to what is to be produced and • record any information or lessons that can help later management stages of this project and/
what is the expected effort, cost, or timescales or other projects
• the planned products are delivered to expectations and within tolerance • request authorization to start the next management stage.
• accurate progress information is provided to the project manager at an agreed frequency to
ensure that expectations are managed. For exceptions, the objectives of the managing a stage boundary process are to:

Context shown on the figure. • review and, if necessary, update the PID; in particular the customer’s quality expectations,
project approaches and controls, and role descriptions
• provide the information needed for the project board to assess the continuing viability of the
project
• prepare an exception plan as directed by the project board
• seek approval to replace the project plan or stage plan for the current management stage with
the exception plan.

*
Figure 18.1 Overview of managing product delivery

The purpose, objectives, and context of the PRINCE2

managing a stage boundary process
The purpose of the managing a stage boundary process is to enable the project manager to
provide the project board with sufficient information to be able to:

• review the success of the current management stage

• approve the next stage plan
• review the updated project plan
• confirm continued business justification and acceptability of the risks.

36 PRINCE2® Foundation | Copyright© PeopleCert International Ltd. PRINCE2® Foundation | Copyright© PeopleCert International Ltd. 37
Context shown on the figure. Context shown on the figure.

*
Figure 20.1 Overview of closing a project

Figure 19.1 Overview of managing a stage boundary

The purpose, objectives, and context of the PRINCE2

closing a project process
The purpose of the closing a project process is to provide a fixed point at which acceptance
of the project product is confirmed, and to recognize that objectives set out in the original PID have
been achieved (or approved changes to the objectives have been achieved), or that the project has
nothing more to contribute.

The objective of the closing a project process is to:

• verify user acceptance of the project product

• ensure that the host site is able to support the products when the project is disbanded
• review the performance of the project against its baselines
• assess any benefits that have already been realized and update the benefits management
approach to include any post-project benefit reviews
• ensure that provision has been made to address all open issues and risks, with follow-on
action recommendations.

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