Project management excellence with PRINCE2® practices
This episode of The Knowledge Train, with Simon Buehring at the helm, focuses on leveraging PRINCE2 practices for project management excellence. It's a vital resource for those looking to master structured management methods, prepare for the PRINCE2 Foundation exam, or improve their management skills. Listeners learn about the core components of PRINCE2 and the importance of practices within the framework. Updated guides reflecting the 7th edition of PRINCE2 are also discussed.
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Transcript
Welcome aboard the Knowledge Train. In this podcast we explore insights and tips to help you manage your way to success in your career and business. I’m Simon Buehring, your conductor on this journey to knowledge and I’m thrilled to have you with us today.
In this episode, we’re talking about unlocking excellence in project management with PRINCE2 practices—your guide to navigating the complex terrain of organising, planning, and executing projects with ease and precision. Whether you’re gearing up for the PRINCE2 Foundation exam or simply looking to refine your management skills, this podcast is your ticket to a more structured and successful approach to managing projects.
In our high-speed business world, PRINCE2 remains a leading method for project management, known for its structured and adaptable nature. The framework is a blend of five core components: principles, practices, processes, people, and the project environment.
Today, we’re zeroing in on PRINCE2 practices, a cornerstone of the PRINCE2 methodology, and an area covered in one of four essential study guides designed for foundation course students. These guides are updated to reflect the latest, which is the 7th edition of PRINCE2, introduced in 2023. The other three guides, delving into PRINCE2 principles, PRINCE2 processes, and People, are available for you to download as well.
We recommend reading through all four to get a comprehensive understanding. Let’s embark on the seven practices that shape PRINCE2 and prepare you for the Foundation exam with Business Case, Organising, Plans, Quality, Risk, Issues, and Progress.
The practices in PRINCE2 offer a suite of management approaches that teams can apply and tailor to their specific project needs. These approaches lay out the procedures, techniques, standards, and responsibilities necessary for each practice. The flexibility of PRINCE2 is highlighted by the absence of a prescribed format—approaches can range from brief outlines to detailed documents.
A critical aspect of PRINCE2 management products is the project initiation documentation, or PID, which provides the project’s direction and sets up the scope. The PID acts as a contract and a foundational document for assessing progress and issues. Additionally, the project log captures the continuously evolving information, such as records on issues, lessons, product quality, and risk. It’s a dynamic record of the project’s journey.
The business case is all about investment decision-making. It’s the mechanism that helps you determine if a project is and remains a worthwhile venture. Each stakeholder, including the business and supplier organisations, has their own business case to justify involvement.
Projects produce specialist outputs, which lead to changes, new capabilities, outcomes, and ultimately, benefits justified in the business case. The business case is owned by the project executive, who ensures its acceptability at all times. Starting with an initial justification in a project mandate, the business case evolves into a detailed document and is maintained throughout the project’s life cycle.
Sustainability forms part of the business case too, aligning project targets with the organisation’s environmental, social, and governance goals. The senior user role involves specifying and realising the benefits, a crucial part of the process, especially post-project closure.
The business case is interwoven with PRINCE2 principles throughout the project’s life, such as using lessons to inform business justifications and ensuring that decisions at stage boundaries are underpinned by a solid business justification.
Organising within PRINCE2 is about crafting a structure of accountabilities and responsibilities for the project management team. Successful projects pivot on an effective team structure, with representation from business, user, and supplier communities.
PRINCE2 delineates roles and responsibilities without assigning specific tasks, allowing for adaptability. For instance, roles can be shared or combined as long as responsibilities are clear and allocated. The project board is the decision-making body, with the executive role being ultimately accountable.
The project manager must navigate day-to-day management, keeping track of progress and risks, while the team managers focus on delivering specialist products. Project assurance ensures everything is on track, independently of the project manager, and project support takes care of the administrative side. Commercial projects may also include a commercial management approach, covering procurement and contract management.
Moreover, the organising practice involves a five-step technique, starting with understanding the organisational ecosystem and ending with transitioning the project into the post-project environment.
Planning is a critical practice in PRINCE2, providing blueprints for the ‘what’, ‘how’, ‘who’, ‘where’, ‘when’, and ‘how much’ of project delivery. It’s about communication, control, and aligning with the business case. Plans are living documents, baselines against which progress is measured.
PRINCE2 suggests three levels of plan to cater for different management needs—the project plan, the stage plan, and the team plan, with an additional type known as exception plans for unforeseen deviations.
Planning consolidates the identification and analysis of products, organisation of work packages, scheduling, budgeting, documentation, and risk analysis. All this is underpinned by a set of tolerances that ensure the project remains under control.
Sustainability is considered too. It involves planning for the environmental impact of products, the sustainability of delivery activities, and the ongoing realisation of benefits.
Quality is the assurance that a project’s output will meet its requirements. It begins with understanding and documenting user expectations and establishing the criteria for acceptance. Quality management is an amalgam of quality planning, control, and assurance, ensuring that products align with their specifications.
Planning for quality includes the preparation of the quality management approach and product descriptions, while control involves monitoring and recording outcomes and taking corrective measures when necessary. Assurance provides the confidence required to proceed. With a product-focused mindset, PRINCE2 ensures quality is not just an afterthought but a central tenet of project delivery.
Risk practice in PRINCE2 revolves around identifying, assessing, and controlling uncertainties that could derail project objectives. Recognising both opportunities and threats enhances the project’s chances of success.
Planning for risk involves understanding the organisation’s risk culture, risk appetite, and tolerance levels. Risks are analysed both qualitatively and quantitatively, with a strong focus on planning and assigning ownership for risk responses. This proactive stance on risk ensures that project objectives are safeguarded.
Issues need management consideration and can arise at any stage of the project. From concerns to requests for changes, managing issues is an integral part of a project’s monitoring function. The PRINCE2 approach includes setting up baselines, resolving issues, controlling changes, and managing a budget for these changes.
The process is systematic, with a five-step technique covering everything from capturing and assessing issues to decision-making and implementation. Essential to this process is a suite of management products including the issue report and the issue register, ensuring comprehensive tracking and resolution.
Finally, progress is the practice of monitoring and comparing actual achievements against planned ones. It involves setting up mechanisms for control—both event-driven and time-driven—and providing forecasts. Effective progress management is about informed decision-making based on accurate, timely, and relevant data.
Escalation takes place when tolerances are forecasted to be exceeded, requiring senior management to step in and take decisions. The project manager, supported by robust data and digital systems, navigates these waters, ensuring the project stays on course.
Thank you for joining us on the Knowledge Train as we explored unlocking excellence in project management with PRINCE2 practices. Don’t forget to subscribe for more insight-packed episodes, and swing by the Knowledge Train website for resources galore. Until the next episode, keep learning, keep managing, and I’ll see you further down the track. Goodbye!