Project Management ABC: P for PRINCE2

Project Success with the PRINCE2 Method

What is PRINCE2?

PRINCE2, which stands for "PRojects IN Controlled Environments," is an internationally recognized project management method. Developed by the British government, PRINCE2 offers a structured approach to planning, executing, and monitoring projects of any size and complexity.
The method is based on seven fundamental principles designed to ensure that projects are carried out effectively and efficiently. In addition, PRINCE2 defines seven processes that are followed throughout the entire project lifecycle. Each of these processes has clear objectives, activities, and deliverables designed to ensure that the project stays on track and achieves the desired results.
In addition to the principles and processes, PRINCE2 identifies seven practices that must be considered in every project, ensuring that all important aspects of the project are considered and managed to ensure project success.

The seven principles of PRINCE2

PRINCE2 is based on seven fundamental principles that must not be altered if a project is to be implemented using this method. However, these principles are formulated in such general terms that they can be applied to any project and any organization. Only when all of these fundamental principles are adhered to can a project be managed in accordance with PRINCE2.

1. Continued business justification:

Every project must have a clear rationale for its implementation, a need, and a lasting benefit for the client. At the same time, it is justified only if it consistently meets the company’s needs. This means that throughout the entire course of the project, regular reviews must be conducted to ensure that the project still aligns with business requirements and objectives. If these change or the project is no longer justified, it should be adjusted or discontinued entirely.

2. Learn from experience:

This principle emphasizes the importance of continuous improvement by learning from past experiences. Project teams should document and analyze their experiences and apply them to future projects in order to avoid repeating mistakes and to leverage best practices.

3. Defined roles and responsibilities:

All roles and responsibilities within a project must be clearly defined and communicated before the project begins. This ensures that every team member knows exactly what tasks they have and what responsibilities they bear, thereby facilitating effective collaboration and decision-making. At the same time, this approach ensures that the interests of the various stakeholders are represented.

4. Manage by Stages:

Jedes PRINCE2-Projekt ist in Phasen unterteilt, die separat geplant, überwacht und gesteuert werden. Das ermöglicht es, Probleme frühzeitig zu erkennen und zu lösen sowie die Kontrolle über das Projekt zu behalten.

5. Manage by exception:

Tolerances are defined for each project objective. These, in turn, determine the scope of authority. This allows project teams to work efficiently and make decisions even when minor deviations occur. However, if the tolerance limits are exceeded or the deviations are too large, escalation or a decision by the stakeholders becomes necessary.

6. Focus on Products:

PRINCE2 projects are focused on defining and delivering products, with an emphasis on their quality requirements. This ensures that the project creates clear value for the organization and delivers the desired results.

7. Tailor to suit the Project Environment:

Every project has specific requirements in terms of its environment, scope, complexity, importance, performance, or risk. Therefore, it is important to tailor the method to the specific company or project in order to achieve the best possible results.

The seven Practices of PRINCE2

The seven practices of PRINCE2, formerly known as the seven themes, are important aspects of project management that need to be continually addressed during the execution of each project to ensure that the project is carried out effectively:

• Business Case: The business case is the rationale for the project and sets out the business reasons for carrying it out. It describes the expected benefits, costs, risks, and return on investment (ROI) of the project. The business case is monitored and updated throughout the entire project lifecycle to ensure that the project remains justified.
• Organization: The organization describes the structure of the project team and the roles and responsibilities of the team members. It also covers the relationships between the project team and the relevant stakeholders.
• Quality: The topic of quality focuses on ensuring that the project's products or results meet the agreed-upon quality standards. It includes defining quality criteria, monitoring product quality throughout the project, and ensuring that quality standards are met.
• Plans: Plans describe how the project is to be carried out, including schedules, resources, costs, and risks. There are various types of plans in PRINCE2, such as the project plan, phase plans, product delivery plan, and communication plan. These plans provide a roadmap for the project and help monitor progress and keep the project on track.
• Risks: The topic of risks deals with the identification, assessment, management, and monitoring of risks in a project. Risks can be potential obstacles or problems that could jeopardize the project’s success. Effective risk management helps identify and resolve problems early on and keep the project on track.
• Changes: This topic covers the management of changes in the project, including changes to the scope, requirements, schedule, or budget. Changes must be carefully evaluated, approved, and documented to ensure that they do not compromise the project objectives.
• Progress: The topic of progress focuses on monitoring and measuring the project’s progress against the planned schedule, budget, and scope. Regular status reports and reviews are conducted to ensure that the project stays on track and that any deviations can be identified and corrected in a timely manner. This aspect also describes the decision-making process for approving plans and the escalation process in the event that the project does not proceed as planned.

The Main Processes of PRINCE2

The main processes of PRINCE2 break down the entire project lifecycle into clearly defined steps and phases, thereby simplifying project management:

1. Starting Up a Project - SU:

In this process, the feasibility of the project is first determined before it is designed and initiated. The project’s objectives, scope, risks, and organizational structure are defined. The client receives the project mandate, and a project manager is appointed. The project management team is also established. At the end of the initiation process, the project charter is drafted, which serves as the basis for the project’s further planning and execution. The rationale for the project, its scope, and the proposed solution are documented in a project description. In addition, the initiation phase is planned.

2. Directing a Project - DP:

This process involves the monitoring and management of the project at the highest level by the project executive committee or steering committee. The project steering committee receives regular status reports and decides on changes to the project to ensure that it aligns with the company’s objectives and remains within the agreed-upon tolerances. This process covers both the initiation—or approval—of the project and its completion. It is therefore part of all project phases.

3. Initiating a Project - IP:

During this process, detailed plans for the project are developed. The business case, project objectives, resources, risks, and quality requirements are further specified. A detailed project plan is developed, which serves as the basis for monitoring and managing the project. The project manager is officially appointed, and his or her role and responsibilities are clearly defined.

4. Controlling a Stage - CS:

This process focuses on monitoring and controlling the work within each project phase or “stage.” The project manager monitors the progress of the work, identifies and resolves problems, reviews the quality of the work, and updates the project plan as needed. The project steering committee receives regular status reports and decides on changes to the project. This process thus describes the day-to-day management carried out by the project manager.

5. Managing Product Delivery - MP:

This process focuses on the delivery of the project’s products or results. The work is led by the team managers, who are responsible for delivering the agreed-upon products. The project manager monitors progress, resolves issues, and ensures that the products meet the agreed-upon quality standards.

6. Managing a Stage Boundary - SB:

This process marks the end of one project phase and the transition to the next. The project manager prepares a phase-end report summarizing the status of the phase and an updated project plan for the next phase. The project steering committee reviews the report and approves the project’s continuation.

7. Closing a Project - CP:

In this process, the project is formally closed. The project objectives are reviewed, the final deliverables are handed over, and the final reports are prepared. A lessons-learned report documents the experiences and insights gained from the project that may be useful for future projects. The project charter is formally closed, and the project team is disbanded.

Is PRINCE2 agile?

PRINCE2 ist eine sehr flexible Methode, die die Anpassung an die jeweilige Projektumgebung stark betont. Allerdings gehört PRINCE2 zum klassischen Projektmanagement. Um Organisationen dabei zu unterstützen, Projekte in komplexen, sich schnell verändernden Umgebungen durchzuführen, wurde mit PRINCE2 Agile eine Erweiterung der Methode entwickelt, die die Grundlagen von PRINCE2 um agile Ansätze ergänzt.
Im Wesentlichen ergänzt PRINCE2 Agile die Prinzipien, Praktiken und Prozesse von PRINCE2 mit agilen Ansätzen wie Scrum, Kanban oder Lean Startup. Dies ermöglicht es Projektteams, die Struktur von PRINCE2 beizubehalten, während sie gleichzeitig agile Praktiken wie inkrementelle Lieferungen, regelmässige Rückmeldungen und kontinuierliche Verbesserung anwenden. PRINCE2 Agile beschreibt also, wie und an welcher Stelle die ursprüngliche Methode angepasst werden kann, um sie optimal mit agilen Ansätzen zu verbinden. Dafür wird beispielsweise mit dem CYNEFIN Approach der Grad der Komplexität und Unsicherheit eines Projektes bestimmt oder die Dimensionen des Projektmanagements (Zeit, Kosten, Qualität, Risiken, Umfang, Nutzen) werden mit dem HEXAGON flexibel gemacht.

Conclusion

PRINCE2 is particularly well-suited for projects that require a clear structure, governance, and control. Because the method is highly flexible, it can be adapted to a wide variety of projects and organizations, making it well-suited for large and complex projects, projects with defined deliverables, projects involving external stakeholders, projects with long lifecycles, projects in regulated industries, or projects with a high degree of uncertainty. With its clear structure, defined roles and responsibilities, and emphasis on continuous improvement, PRINCE2 offers a proven and popular method for successfully executing projects.

myPARM ProjectManagement kann eine wertvolle Ergänzung für die Anwendung von PRINCE2 sein. Die umfassende Projektmanagementsoftware wurde speziell an die Unterstützung von PRINCE2-Projekten angepasst.

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