Chapter 2: Project Management with PRINCE2

Question 1

TRUE or FALSE:
In general, today’s organizations are inevitably moving to achieve a balance between business as usual and business change.

Answer 1

TRUE

Question 2

What is a Project?

Answer 2

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.

Question 3

What differentiates a Project work from business as usual? (5 elements)

Answer 3

1. Change
   Projects are the means by which we introduce change
2. Temporary
   when the desired change has been implemented, business as usual resumes in its new form, and the need for a project is removed
3. Cross-functional
   A project involves a team of people with different skills working together to introduce a change that will impact others outside the team
4. Unique
   Projects might go based on a proven project activity within an organization, but different projects are still different perhaps in terms of the team, the customer, the location, the time.
5. Uncertainty
   Projects introduce threats and opportunities more than what we encounter in the course of business as usual

Question 4

What is Project Management?

Answer 4

Project Management is the planning, delegating, monitoring, and control of all aspects of the projects and the motivation of those involved IN ORDER TO achieve the project objectives within the expected performance targets for time, cost, quality, scope, benefits and risk.

Question 5

How many “variables” are there in a project, which need to managed?

What are those?

Answer 5

There are 6 variables involved in any project:

1. Costs
2. Timescales
3. Quality
4. Scope
5. Benefits
6. Risk

Question 6

What does the “quality” aspect/variable of a project entail?

Answer 6

The quality of the end product.

Regardless of whether a project is finalized within the agreed upon time and cost, THE PROJECT PRODUCT MUST BE FIT FOR PURPOSE.

Question 7

TRUE or FALSE:
There must be agreement on the project’s scope and the project manager needs to have a sufficient understanding of what is and what is not within the scope.

Answer 7

TRUE

Question 8

TRUE or FALSE:
Delivery beyond scope, meaning delivering more than was expected, is always perceived as a good thing, as the organization can move forward faster.

Answer 8

FALSE
Delivery beyond scope causes delays, extra costs, and uncontrolled change.

Question 9

What does the “benefits” aspect/variable of a project entail?

Answer 9

“Why are we doing this?”

The project manager has to have a clear understanding of the purpose of the project as an investment and make sure that actual project delivery is consistent with achieving the desired return.

In simpler words, the project manager must make sure that the final product of the project will actually bring the desired return to the organization.

Question 10

TRUE or FALSE:
The project manager is responsible for planning the sequence of activities for the project

Answer 10

TRUE

Question 11

In the Plan-Delegate-Monitor-Control sequence of activities, what does the project manager do in the “Monitor” stage?

Answer 11

The project manager is responsible to monitor how well the work in progress matches the plan.

“How well does the work match the plan”.

Question 12

In the Plan-Delegate-Monitor-Control sequence of activities for project management, what does the project manager do in the “Control” stage (if the work is going OK, and if the work is not going OK)?

Answer 12

If the work is not going OK&raquo_space;> take corrective action

If the work is going OK&raquo_space;> identify whether there are opportunities to speed up or reduce costs?

Question 13

What does the Plan-Delegate-Monitor-Control project management framework try to ensure?

Hint: it’s also an aim of PRINCE2 and has many “rights”.

Answer 13

That the right information is available at the right time for the right people to make the right decisions about the project.

Question 14

PRINCE2 assumes that there will be a customer and a supplier to every project.

What do each of these do and what are their responsibilties?

Answer 14

The customer specifies the desired result and (usually) pays for the project.
The responsibilities of the customer are to mandate, govern, and realize benefits.

The supplier is the one who provides the resources and skills to deliver the desired result of the customer.

Question 15

What is a Programme?

Answer 15

A Programme is a temporary structure designed to lead multiple interrelated projects and other work in order to progressively achieve outcomes of benefit for one or more organizations.

In simpler words, a Programme is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually

Just FYI: a good link explaining Programme https://www.prince2.com/eur/blog/project-vs-programme#:~:text=A%20programme%20is%20defined%20as,t%20have%20a%20fixed%20deadline.

Question 16

What is a Portfolio?

Answer 16

A Portfolio is the totality of an organization’s investment (or segment thereof) in the changes required to achieve its strategic objectives.

Question 17

Describe the difference between a traditional functional structure and a project-focused structure of a corporation.

Answer 17

Traditional Functional Structure - staff are organized by type of work (e.g., finance, sales, marketing) and there are clear reporting lines

Project-Focused Structure - the standard practice is to work in project teams to achieve the strategic objectives.

Question 18

What are the 2 typical approaches for a project?

Answer 18

1. Waterfall approach (steps)
   = where each of the delivery steps to create the products takes place in a sequence and the product is made available during or at the end of the project
   e.g., in a construction project where requirements gathering and design take place before building begins)
2. Agile approach (iterations)
   =focuses on working in small batches, visualizing processes and collaborating with end users to gain feedback. Continuous releases are also a focus, as these normally incorporate given feedback within each iteration
   e.g., in software development where requirements gathering, design, coding and testing all take place iteratively throughout the project

Question 19

Key Performance Indicators (KPIs) should be designed in a such a way that balance is achieved between…

Hint: 3 sets

Answer 19

qualitative and quantitative

leading indicators and lagging indicators

project inputs and project outputs

Question 20

Explain lagging and leading indicators within KPIs.

Answer 20

In general: Leading indicators look ahead and attempt to predict future outcomes, whereas lagging indicators look at the past.

Lagging Indicators:
Lagging indicators are metrics that provide information about events or trends that have already occurred. They measure the results of past actions and are often used to confirm or validate the effectiveness of strategies or decisions that were made. Lagging indicators are helpful for understanding historical performance and evaluating the outcomes of certain actions. They are typically easier to measure because the data is readily available.

Examples of lagging indicators:

Financial Metrics: Net profit, revenue, earnings per share (EPS), return on investment (ROI).
Health and Safety: Number of accidents, injury rates, days without incidents.
Business Performance: Customer satisfaction scores, market share, customer retention rates.
Economic Indicators: Unemployment rate, GDP growth rate, inflation rate.

Leading Indicators:
Leading indicators, on the other hand, are metrics that provide insights into potential future trends. They are used to predict the direction in which a system is headed and can help organizations or individuals make proactive decisions to mitigate risks or capitalize on opportunities. Leading indicators are often used in strategic planning and forecasting.
Examples of leading indicators:

Sales Pipeline: Number of qualified leads, size of the sales pipeline, sales activities (calls, meetings) in progress.
Stock Market: Consumer confidence index, housing starts, purchasing manager’s index (PMI).
Project Management: Percent of project tasks completed, project burn rate (expenditure rate), velocity in Agile development.
Economic Indicators: New housing permits, consumer spending trends, business expansion plans.

Question 21

What is the difference between objectives and KPIs?

Answer 21

Objectives are what the project needs to achieve, whereas KPIs are the measures that indicate whether or not progress is being made towards achieving the objectives.