Chapter 3: Principles

Question 1

What are the 7 Principles of PRINCE2?

Answer 1

1. continued business justification
2. learn from experience
3. defined roles and responsibilities
4. manage by stages
5. manage by exception
6. focus on products
7. tailor to suit the project

Question 2

What does the principle of “Continued business justification” entail?

Answer 2

PRINCE2 requires that for all projects:
* there is a justifiable reason for starting the project
* that justification is recorded and approved
* the justification remains valid, and is revalidated, throughout the life of the project

Question 3

What is the most wide-spread method to document the business justification of a project?

Answer 3

A Business Case

Question 4

TRUE or FALSE:
It is possible that the business justification of a project changes over the course of a project.

Answer 4

TRUE

Yet, it still has to remain valid and consistent with the project.

Question 5

What is there to do if a project can no longer be justified? and why?

Answer 5

It should stop.

It is beneficial for an organization to stop the project, as resources can be reassigned and reinvested in other more worthwhile projects.

Question 6

What does the principle of “Learn from experience” entail?

Answer 6

The Principle entails that lessons are sought, recorded and acted upon throughout the life of the project.

Question 7

When does learning from experience take place in a project?

Answer 7

• when starting a project = previous similar project should be reviewed to see if lessons could be applied
• as the project progresses = lessons should include relevant reports and reviews
• as the project closes = the project should pass on lessons

Question 8

What does the Principle of “Defined roles and responsibilities” entail?

Answer 8

A PRINCE2 project has defined and agreed roles and responsibilities within an organization structure that engages the business, user and supplier stakeholder interests.

Question 9

TRUE or FALSE:
In a project, the RIGHT people should be involved, these people should know what is expected of them, and what to expect from the other people involved

Answer 9

TRUE

Question 10

Who does the project team consist of? (I.e., the primary stakeholders in a project)

Answer 10

1. ‘business’ sponsors who endorse the objectives and ensure that the business investment provides value for money
2. ‘users’ who, after the project is completed, will use the products to enable the organization to gain the expected benefits
3. ‘suppliers’ who provide the resources and expertise required by the project (these may be internal or external)

Question 11

What does the Principle of “Manage by stages” entail?

Answer 11

A PRINCE2 project is planned, monitored and controlled, management stage by management stage.

> PRINCE2 breaks the project down into discrete, sequential sections, called management stages.

Question 12

What is a Management Stage?

Answer 12

A Management stage is:
* the section of a project that the project manager is managing on behalf of the project board
* the section at the end of which the project board reviews:
- progress to date
- the state of the project plan
- the business case
- risks of the next stage plan

> a decision is taken on whether to continue with the project

Question 13

How is a management stage defined in terms of length?

Answer 13

A management stage depends on:
* the size and complexity of the project (shorter management stages offer more control, whereas longer stages reduce the burden on senior management)
* significant decisions and control points required during the project’s lifecycle
* organizational policies and standards

Question 14

TRUE or FALSE:
Shorter management stages offer more control, while longer management stages reduce the burden on senior management

Answer 14

TRUE

Question 15

At least how many stages should a PRINCE2 project have?

Answer 15

2
An initiation stage, and at least one further management stage. The more complex and risky a project is, the more management stages are required.

First stage is called “the initiation stage” and last one is called “the delivery stage”

Question 16

Why should a project be managed by stages?

Answer 16

• to provide review and decision points, and give the project board the opportunity to assess the project’s validity at defined intervals
• give the ability to ensure that key decisions are made prior to the detailed work needed to implement them
• allow clarification of the impact of an external factor on the project (budget-setting for example)
• facilitate the manage by exception principle by delegating authority to the project manager

Question 17

TRUE OR FALSE:
The project board controls the day-to-day of the project, management stage by management stage

Answer 17

FALSE
The project board delegates the authority for day-to-day control of a management stage, within the agreed tolerances, to the project manager

Question 18

What does the Principle of “Manage by exception” entail?

Answer 18

A PRINCE2 project has defined tolerances for each project objective, to establish limits of delegated authority.

In other words, “Manage by Exception” means that project board should focus on the most critical aspects of a project while delegating day-to-day decisions and activities to appropriate levels within the project organization. It sets clear boundaries for authority and responsibility, allowing higher levels of management to be involved only when necessary.

Question 19

What is a “tolerance” within the Principle of “Manage by exception”?

Answer 19

Tolerances are predetermined limits within which the project manager can make decisions without seeking approval from higher management. PRINCE2 defines tolerances in terms of time, cost, quality, scope, risk, and benefits. If a project or stage of the project is expected to go outside these tolerances, it becomes an exception, triggering the involvement of the project board or other higher-level authorities.

Question 20

TRUE or FALSE:
As the “Manage by exception” principle says, the project manager has the authority to manage the day-to-day of a project, and higher management gets involved when the agreed-upon tolerances are forecasted to be exceeded or have already exceeded

Answer 20

TRUE

This basically means that if one of the 6 variables involved in a project (time, cost, quality, scope, risk and benefits) is expected to go (or has already gone) overboard, the higher management should, following the report of the project manager, get involved and take appropriate decisions.

Question 21

What are the benefits of “managing by exception”?

Answer 21

Efficiency: By allowing day-to-day decision-making to occur at lower levels, project managers can focus on strategic aspects and issues that genuinely require their attention.
Also, the use of senior management time is efficient

Risk Management: Managing by exception ensures that higher management is alerted to issues promptly, allowing for timely corrective actions, which can help minimize the impact of problems and reduce project risks.

Clear Accountability: PRINCE2’s clear definition of roles and responsibilities ensures that everyone in the project organization knows their authority and accountability, reducing confusion and potential conflicts.

Flexibility: This approach allows for flexibility within certain boundaries (tolerances), accommodating changes and unforeseen circumstances without constant micromanagement.

Question 22

What does the Principle of “Focus on products” entail?

Answer 22

A PRINCE2 project focuses on the definition and delivery of products, in particular their quality requirements.

Question 23

TRUE or FALSE:
Projects that focus on what the project needs to produce are generally more successful than projects whose primary focus is the work activity.

Answer 23

TRUE

This is because the focus of a project is to fulfil stakeholder expectations in accordance with the business justification, and to do this there must be common understanding of the products required and THE QUALITY expectations for them.

Question 24

What is a Product within PRINCE2?

Answer 24

A product is an input or output, whether tangible or intangible, that can be described in advance, created and tested. PRINCE2 has two types of products: management products and specialist products.

Question 25

How can a product (either specialist or management) be an input to a project?

[this is more to read through than to answer fully, just swipe]

Answer 25

Now, let’s clarify how a product can also be considered an input within the context of PRINCE2:

Management Products as Inputs: Management products, such as the Project Initiation Document (PID) or the Project Plan, often serve as inputs for various stages or processes within the PRINCE2 framework. For example:

The Project Initiation Document (PID) is a critical management product that provides essential information about the project’s objectives, scope, constraints, and approach. It is created during the “Initiating a Project” process and serves as a foundational document for the entire project. It becomes an input for later stages and processes as it defines the project’s baseline.

The Project Plan, another management product, outlines how the project will be executed, monitored, and controlled. It serves as an input to the “Controlling a Stage” process, providing guidance on how to carry out the work within a specific stage.

Specialist Products as Inputs: Specialist products are project-specific deliverables that might not be unique to PRINCE2 but are essential for the project’s objectives. These can also serve as inputs in different ways:

For instance, if your project involves the development of a software application (a specialist product), the requirements specification for that software is both a specialist product and an input for the development stage. It describes what needs to be created and guides the development team.

In the same software development project, the test plan (another management product) can be considered an input to the testing phase, as it outlines the testing strategy and criteria.

Question 26

What is the difference between Management Products and Specialist Products?

Answer 26

Management Products: Management products are created primarily to facilitate the management and control of the project. They help in planning, monitoring, and controlling various aspects of the project. These products provide the framework, structure, and documentation required for effective project management. Examples include the Project Initiation Document (PID), Project Plan, Risk Register, and Highlight Reports.

Specialist Products: Specialist products are the tangible or intangible deliverables that the project is intended to produce. They are the unique outputs or results of the project that directly contribute to achieving the project’s objectives. Specialist products are typically specific to the project’s scope and requirements. Examples include a software application, a building, a marketing campaign, or a research report.

Question 27

What are the benefits of focusing on products during a project?

Answer 27

The benefits are:
1. ensuring that the project only carries out the work that directly contributes to the delivery of a product
2. helps manage uncontrolled change (by ensuring that all changes are agreed in terms of how they will impact the project product and the business justification of the project)
3. reduces the risk of user dissatisfaction and acceptance by agreeing, at the start, what will be produced by the project

Question 28

What does the Principle of “Tailor to suit the project” entail?

Answer 28

PRINCE2 is tailored to suit the project environment, size, complexity, importance, team capability and risk.

Key Characteristics:

Customization: Customize PRINCE2 processes, roles, and documentation to match the project’s needs.

Scalability: Adjust PRINCE2 to the project’s size and complexity.

Efficiency: Optimize project management efforts by avoiding unnecessary processes and documentation.

Risk Management: Tailor risk strategies to address project-specific risks.

Client and Stakeholder Alignment: Align with client and stakeholder preferences.

Cultural and Organizational Fit: Tailor to the organization’s practices and norms.

Continuous Improvement: Continuously assess and adjust the tailored approach to ensure project success.