Understanding the PRINCE2® project context
Join Simon Buehring on the Knowledge Train for a vital discussion on PRINCE2 project context. Learn to tailor your project management approach with an understanding of your project's unique internal and external conditions. This episode addresses organisational and commercial factors, delivery methods, sustainability, and project scale, to help you customise PRINCE2 for success.
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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 today’s episode, we’re going to unlock the secrets behind PRINCE2 project context and explain why understanding it is crucial for tailoring your project management to the needs of your context. Whether you’re a seasoned project manager or new to the field, grasping the nuances of PRINCE2 project context is indispensable. So, let’s get the conversation rolling and simplify this complex topic, shall we?
Every project is a unique undertaking, with a set of internal and external conditions that define its very nature. In the PRINCE2 methodology, this is known as the project context. It is the backdrop against which a project unfolds, and it’s one of the pillars of PRINCE2, standing alongside principles, people, practices, and processes.
We need to consider various dimensions when examining a project’s context, including organisational and commercial factors, the chosen delivery method, sustainability goals, and the scale of the project. Customising PRINCE2 to fit these dimensions ensures that the project management method is pliable yet robust.
Firstly, let’s discuss the organisational context. PRINCE2 is versatile; it doesn’t assume a one-size-fits-all for organisational structure. Within any project, you’ll find business leaders who advocate for the project, commit resources, and align decisions with their organisation’s larger goals. Then, there are the users, who set expectations and outline the desired outcomes, and of course, the suppliers, who contribute their expertise.
This trio—business leaders, users, and suppliers—may belong to the same company or several different ones. They might be woven together by contracts or corporate ties. PRINCE2 can be effectively implemented whether the project stands alone or as part of a broader program or portfolio.
Next up, the commercial context takes the spotlight. A project often arises from the need to fulfill specific business requirements, leading to a partnership between the business and a supplier. Execution might involve various suppliers, or internal departments, with commercial relationships adding layers of complexity to how a project is structured.
Legally binding agreements, procurement processes, and subcontracting are familiar scenarios in the commercial context. All of these relationships and contracts must be reflected in the project management approach, necessitating a tailored application of PRINCE2.
When it comes to the delivery method, projects may choose one or a mix to meet their needs. These methods range from sequential, where tasks follow a fixed order, to iterative-incremental, often associated with agile development, to hybrid methods that combine both.
PRINCE2 fosters a structured environment that is compatible with various delivery methods. It does not tie itself to any single approach, allowing a project to choose the best method for its specific needs while keeping the project management and product delivery work distinct.
Sustainability is woven into the modern business fabric, and PRINCE2 recognises this by integrating sustainability into its performance indicators, roles, documentation, and processes. Sustainability goals can vary widely, from environmental impact to operational resilience of the project’s deliverables. PRINCE2 aligns with the United Nations’ Sustainable Development Goals, offering a comprehensive take on what sustainability might mean in a project context.
The scale of a project is subjective and can be seen differently depending on the organisation’s size and perspective. PRINCE2 allows for flexibility, catering to anything from simple projects to elaborate, intricate ones. It’s critical to consider the project’s risk and significance relative to the organisation’s routine activities when tailoring PRINCE2’s governance structures, role assignments, documentation, controls, and performance targets.
Tailoring is central to PRINCE2, referring to the adjustments made to fit the unique project context. It’s not about overburdening the team but providing just the right level of governance and control, adhering to PRINCE2’s principles while accepting an acceptable level of risk.
The project manager bears the responsibility for tailoring, documenting the approach in the project initiation documentation and ensuring stakeholder and board approval. The level of tailoring must reflect the project’s internal and external influences, with every deviation from the norm recorded and agreed upon.
During the initiation phase, the project manager lays out the tailoring blueprint. This requires amending the project’s guidance to suit both internal and external factors. Whether it’s adjusting to a company’s typical project management style or the regulatory environment, careful consideration is necessary for achieving a tailored fit.
Several aspects of PRINCE2 can and should be tailored, from processes and practices to roles, management products, and terminology. It is vital to maintain clarity and avoid conflicts of interest while ensuring consistent use of language.
Environmental and project factors must be taken into account when tailoring. This includes fitting the project within the organisation’s existing methods and standards, and considering factors like expertise levels, commercial context, project portfolios, or specialised product development.
Consistent terminology aids understanding and clear communication. The project management method should ideally reflect the language used within the organisation.
Tailoring involves adjusting processes, roles, and product descriptions to align with the organisation’s operations. Well-defined organisational processes ensure consistent project management across various aspects, such as risk, issues, quality, and communication.
Standardising tailoring for similar projects can benefit organisations, allowing for a consistent approach across multiple initiatives. This includes managing the overall method architecture and the method’s individual components.
Methods derived from PRINCE2 must retain its seven principles, including tailoring guidelines. Organisations could categorise projects by complexity and provide tailored guidance for each category, aiming for just enough project management for success.
Embedding PRINCE2 involves a change management approach, enabling consistent application of the method across all projects. This may involve adopting maturity models, such as P3M3, for the organisation’s benefit.
Thank you for joining us on the Knowledge Train as we explored the nuances of PRINCE2 project context. 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!