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PRINCE

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2 FOUNDATION

FOR TRAINER
FOR TRAINER

Workbook with Exams

Version 5.6

PRINCE2 ® is a Registered Trade Mark of the Office of Government Commerce in the United ® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.

Copyright © 2011, ITpreneurs Nederland B. V. All rights reserved. © CC Learning © CC Learning

PRINCE

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PRINCE2 Foundation workbook

PRINCE2® foundation workbook with exams

This book is sold subject to the condition that it, or any part of it, shall not by way of trade or

otherwise, be sold, lent, re-sold, displayed, advertised or otherwise circulated, without the publisher’s

prior written consent, in any form of binding, cover or title other than that in which it is published and

without a similar condition including this condition being imposed on the subsequent purchaser(s).

Version 5.6

© Copyright 2011 by ITpreneurs Nederland B.V. All rights reserved.

PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and

other countries

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fouNdatIoN woRkbook wIth Exams | tablE of CoNtENts

Version 5.6

Table of contents

Introduction

7

Business Case

27

Organisation

47

Quality

73

Plans

97

Risk

127

Change

153

Progress

177

Starting up a Project

215

Directing a Project

225

Initiating a Project

235

Controlling a Stage

245

Managing Product Delivery

255

Managing a Stage Boundary

265

Closing a Project

275

Self assessment answer key

283

Themes crossword answer key

285

Processes crossword answer key

287

Foundation examination tips

289

Foundation Exam Design

291

Foundation sample examination 1

307

Foundation sample examination 2

341

Syllabus

371

Notes

401

Feedback Form

403

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Key

Icon

Explanation

Exercise demonstrating a specific concept in a real-world environmentwoRkbook wIth Exams Version 5.6 Key Icon Explanation A tip to help you understand or use

A tip to help you understand or use this concept correctlydemonstrating a specific concept in a real-world environment Warning to ensure that you don't make a

Warning to ensure that you don't make a common mistake – taken from our Lessons Reports!A tip to help you understand or use this concept correctly Information box – include a

Information box – include a definition or information item useful for that part of the topicmake a common mistake – taken from our Lessons Reports! Page reference within the PRINCE2 manual:

Page reference within the PRINCE2 manual: Managing Successful Projects with PRINCE2 (2009) Managing Successful Projects with PRINCE2 (2009)

Page reference within this workbook: PRINCE2 Foundation workbook with exams PRINCE2 Foundation workbook with exams

Project Management Team role involved in the mentioned activitythis workbook: PRINCE2 Foundation workbook with exams The process(es) wherein the mentioned activity takes place

The process(es) wherein the mentioned activity takes placeManagement Team role involved in the mentioned activity What management products are created or updated in

What management products are created or updated in the mentioned activityThe process(es) wherein the mentioned activity takes place TN: Introduce self, course, each other, course materials,

TN: Introduce self, course, each other, course materials, schedule

TN: Introduce self, course, each other, course materials, schedule

Exam papers used in this workbook:

PRINCE2:2009-ExamPaper-200-GBP29FExam-100612SamplePaper1

PRINCE2:2009-ExamPaper-201-GBP29FExam-100612SamplePaper2

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Schedule

Starting daily at 9:00am and 2 hours of homework each night, finishing daily at 17:00.

Day 1

Homework (night before): Read and do exercises indicated as Homework for

processes, organisation, business case

9:00

Introductions

10:00

Principles, themes and processes

12:30

Lunch

13:30

Business Case

15:00

Organisation

Homework: Read and do exercises indicated as Homework for: quality, plans, risk,

change, and progress

Day 2

9:00

Quality and homework review

10:00

Plans

12:30

Lunch

13:30

Risk

15:00

Change

16:00

Progress and Foundation exam tips

Homework: Sample Foundation exams #1 and #2 and read forward about processes.

Day 3

9:00

Review exam #1

10:00

Review exam #2

11:00

Review of themes using processes

12:00

Lunch

13:00

Continue review of themes using processes

15:00

Seated for foundation exam paper (75 questions, 60 minutes, closed book)

16:30

Practitioner exam tips (for those continuing to do the Practitioner exam)

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Introduction

Projects are an essential part of every organisation, large or small. Projects in many organisations are

delivered in a random, ad hoc way without consistency nor clear objectives. If, when you ask yourself

'why am I doing this project', you cannot clearly articulate the purpose and hoped for outcomes it is

likely that your project has not been run using sound business practises. Some of these projects are

successful, often driven by hero project managers who manage to make a project successful through

determination or luck. PRINCE2 offers a structured method to deliver projects, it cannot guarantee

success but can at least give a standard against which to measure all projects within a given

organisation.

As you attempt to embed PRINCE2 into your organisation consider that project management is an

overhead and should be balanced against the cost of not using it. If you are running a small effort with

a subject matter expert it is likely you will not require PRINCE2. If you are running a large effort, and

interfacing with other people and organisations it may be appropriate to apply PRINCE2. Be careful not

to do more management than project and weigh up the effort taken to create and maintain plans,

registers, reporting etc. for the value that it brings to the project.

PRINCE2 is not the same as business as usual nor programmes, in fact the business as usual interface

to projects is often fraught with tension and challenges, the interface to programmes has its own

challenges.

The performance of a project can be measured in many ways, PRINCE2 proposes 6 performance

measures (time, cost, scope, quality, risk and benefit) but other performance measures may be

appropriate to your project. Some examples include carbon emissions, health outcomes, customer

perception, essential systems/services, moral conduct. PRINCE2 is flexible to allow you to incorporate

these into your own project, for that reason tailoring is a key principle of PRINCE2.

The PRINCE2 method comprises of four integrated elements, these are the principles, themes,

processes and tailoring of the method to match the project environment.

The principles are constants to be found in every PRINCE2 project, and can be applied to each theme

and process. Consider them to be the rules to live by for a project to use PRINCE2. The processes are

the steps to be taken to run a project. The themes are the main aspects of project management that

must be addressed in every project. While the themes and the processes can be scaled and tailored

depending on the project, the principles remain constant. Every time PRINCE2 is used it should be

tailored to the context of the project.

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Why use PRINCE2?

There are many reasons why implementing PRINCE2 as your structured method of undertaking projects

is a good idea. Here are a few benefits:

embodies established and proven best practice and governance for project management

can be applied to any type of project

is widely recognised and understood, providing a common vocabulary

defines explicit responsibilities to understand each other's roles

has a defined structure of accountability, delegation and authority

has a product focus that clarifies what a project will deliver, by whom and for whom

allows plans to be carefully designed to meet the needs of the different levels of management

is based on management by exception, providing for the efficient use of management time

ensures that participants focus on the viability of the project

ensures stakeholders are represented in planning and decision making

promotes learning improvement within organisations

promotes consistency of work and ability to reuse project assets

is an invaluable diagnostic tool facilitating assurance and assessment of project work.

What is a project?

A project is a temporary organisation that is created for the purpose of delivering one or more business

products according to an agreed Business Case.

OGC.

Quoted from PRINCE2 © Crown copyright 2009, reproduced under licence from

Projects differ from business as usual and

programmes

Projects differ from business as usual in that they:

instigate change

are temporary

involve cross-functional teams

are unique

have a degree of uncertainty

Projects differ from Programmes in the following ways:

Projects

Programmes

Driven by deliverables

Driven by vision of ‘end state’

® PRINCE 2 fouNdatIoN woRkbook wIth Exams | INtRoduCtIoN Version 5.6 Finite No pre-defined path
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Finite
No pre-defined path
Bounded and scoped deliverables
Changes to the business capability
Delivery of product Coordinated outputs delivery, includes projects not directly delivering benefits
Delivery of product
Coordinated outputs delivery, includes projects not
directly delivering benefits
Benefits usually realised after project closure Benefits realised during the programme and afterwards Shorter timescale
Benefits usually realised after project closure
Benefits realised during the programme and afterwards
Shorter timescale
Longer timescale

Performance measures

These are the aspects of project performance to be managed by the Project Manager. The performance

measures defined in PRINCE2 are:

Cost, the project must remain affordable as measured against the other performance measures

Timescale, including when the project will start, finish and ultimately deliver benefits

Quality, focused on products this is about ensuring those products are fit for purpose

Scope, changes to plans, deliverables must be controlled to avoid affecting the other performance

measures

Risk, uncertainty or threats and opportunities to the project should be managed

Benefits, defined in the Business Case this is the reason for the project, this is the ultimate goal of

the project and is balanced against the other performance measures of time, cost and risk.

These performance measures are used in the following ways:

A risk is described in terms of what performance measures are expected to be affected

Reports should include details of how performance of the project are progressing

There are tolerances expected for each to enable management by exception

Assessing changes should consider the effect of each change on the performance measures.

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Management products

Management products are those items created as part of managing the project. They are not

necessarily documents, they are information sets that are used so that certain roles can take action

and/or make decisions. There are three types of management products:

Baseline management products are those that define aspects of the project and, once approved,

are subject to change control, eg, Benefits Review Plan

Records are dynamic management products that maintain information regarding project progress,

eg, Daily Log

Reports are management products providing a snapshot of the status of certain aspects of the

project, eg, Checkpoint Reports.

List of Management Products

Featured management product Document type Example within Product this PRINCE2 Description Foundation Managing
Featured management product
Document type
Example within
Product
this PRINCE2
Description
Foundation
Managing
Workbook
Successful
Projects with
PRINCE2

Benefits Review Plan

Baseline

p

33

p

235

Business Case

Baseline

p

31

p

237

Checkpoint Report

Report

p

187

p

238

Communication Management Strategy

Baseline

p

52

p

239

Configuration Item Record

Record

p

162

p

240

Configuration Management Strategy

Baseline

p

160

p

241

Daily Log

Record

p

106

p

242

End Project Report

Report

p

197

p

243

End Stage Report

Report

p

194

p

244

Exception Report

Report

p

196

p

245

Highlight Report

Report

p

189

p

245

Issue Register

Record

p

164

p

246

Issue Report

Report

p

165

p

247

Lessons Log

Record

p

191

p

248

Lessons Report

Report

p

192

p

249

Plan

Baseline

p

104

p

250

Product Description

Baseline

p

83

p

251

Product Status Account

Report

p

163

p

253

® PRINCE 2 fouNdatIoN woRkbook wIth Exams | INtRoduCtIoN Version 5.6 Featured management product Document
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Featured management product
Document type
Example within
Product
this PRINCE2
Description
Foundation
Managing
Workbook
Successful
Projects with
PRINCE2

Project Brief

Baseline

p

101

p

253

Project Initiation Documentation

Baseline

p

101

p

254

Project Product Description

Baseline

p

80

p

256

Quality Management Strategy

Baseline

p

78

p

257

Quality Register

Record

p

82

p

258

Risk Management Strategy

Baseline

p

133

p

259

Risk Register

Record

p

135

p

260

Work Package

Baseline

p

184

p

261

Principles

Continued business justification

A requirement for a PRINCE2 project is that: there is a justifiable reason to start it, the justification

remains valid throughout the life of the project and the justification is documented and approved.

This documented justification is the Business Case.

Learn from experience

PRINCE2 project teams learn from previous experience: lessons are sought, recorded and acted

upon throughout the life of the project.

Defined roles and responsibilities

A PRINCE2 project has defined and agreed roles and responsibilities within an organisation structure

that engages the business, user and supplier stakeholder interests.

Manage by stages

A PRINCE2 project is planned, monitored and controlled on a stage-by-stage basis.

Manage by exception

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

authority.

Focus on products

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

requirements.

Tailor to suit the project environment

PRINCE2 is tailored to suit the project’s environment, size, complexity, importance, capability and

risk.

Refer to table 19.2 on p222 of the PRINCE2 manual for more information about scaling

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Themes

These are the seven main aspects of project management that must be addressed in every project. Like

the processes, the themes should be tailored to each project.

Business Case

A project must remain justified to ensure continued investment; the Business Case management

product should demonstrate that the project is desirable, achievable and viable. The outline Business

Case is developed in the process Starting up a Project, and then refined in Initiating a Project. The

Business Case is reviewed in Managing a Stage Boundary. The project's benefits are reviewed according

to the Benefits Review Plan both during and after the project.

Organisation

The roles and responsibilities defined in the project make up the organisational structure, and are

created in Starting up a Project. Role descriptions, not job descriptions, are defined to enable flexibility

in the number of individuals required to fulfil a role. The roles include the Project Board as the decision-

making authority tasked with directing the project and looking after the three interests of the project:

Business (Executive), User (Senior User) and Supplier (Senior Supplier). Those on the Project Board

have the option to delegate some of their responsibilities to other roles: Project Assurance to evaluate

performance and products, and Change Authority to authorise requests for change or off-specifications.

The role tasked with managing the project is the Project Manager, who must manage the project on a

day-to-day basis using the Stage Plan as the baseline for progress control. The Team Managers deliver

the products; this role may or may not have been appointed to one or more individuals, if not then the

Team Manager role defaults to the Project Manager. The other role assigned by default to the Project

Manager is Project Support which is an administration function to assist the project team.

Quality

The project is expected to deliver products which are in turn expected to meet certain levels of quality.

There are two main aspects of quality management: planning and control. As part of planning, quality

for the project is described in the customer's quality expectations and defined in the acceptance

criteria. The quality standards that must be met are outlined in the quality management strategy,

which is created in Initiating a Project, and the quality for each product is specified in the Product

Descriptions. Controlling the quality of the products means implementing a quality method and

allocating quality activities, tracked formally in the Quality Register. Quality Assurance is an

independent check on behalf of corporate or programme management that the project is adhering to

the appropriate standards.

Plans

There are three levels of plans, which match the three levels of management. These levels are project,

stage and team. Project and Stage Plans are replaced with an Exception Plan when requested by the

Project Board. The planning procedure follows steps that use product-based planning as a core aspect

of constructing the plan. For this reason product descriptions, product breakdown structures and

product flow diagrams need to be created, in addition to identifying activities, estimates and a

schedule.

Risk

Risks include both opportunities and threats, with associated responses that affect either the impact or

likelihood of the risk. The approach the project takes to risk, including prioritisation and severity scales,

is documented in the Risk Management Strategy created in Initiating a Project. Any risk management

procedure is expected to follow the steps a) identify the context and the risk, b) assess the impact and evaluate the risk, c) plan the response, d) implement it, all while e) communicating with relevant stakeholders.

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Change

Change management includes dealing with issues that could change baselines and configuration

management of products. The procedures to implement change and configuration management are

found in the Configuration Management Strategy. Each issue is dealt with, in the Issue Log or Daily

Log, as either a request for change, off-specification or problem/concern.

Progress

Progress is about comparing what has happened with what was expected to happen. The Project Plan

and Stage Plan are used as the baseline of what was expected to happen, and the current reports and

registers are used to measure the current situation. Tolerances are used to implement management by

exception so escalations are made when necessary, allowing work to be done without

micromanagement. The levels of authority define who assesses what progress at what level. The levels

are corporate or programme management, Project Board (who measure project progress using the

Project Plan and Highlight Reports), Project Manager (who measures team progress using the Stage

Plan and Checkpoint Reports) and Team Manager.

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Themes crossword

wIth Exams | INtRoduCtIoN Version 5.6 Themes crossword See page 286 for answer key Across 3.

See page 286 for answer key

Across

3.

Where quality tolerances will be found

6.

Report produced by the Team Manager for the Project Manager

 

8.

The missing risk management step: identify, assess, plan,

and communicate

13.

The missing Business Case development procedure step: Develop,

,

confirm, verify

17.

The document that outlines how to measure the project's benefits

 

18.

The tolerance area found in Product Descriptions

20.

The levels of plan are project,

and team

21.

The role made up of three roles

24.

Opportunity risk response

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26. The process in which the Project Initiation Documentation is created

27. Planning procedure step

28. The two types of risk: threat and

Down

1.

Quality method that assesses that the finished products are complete and fit for purpose

2.

Report produced by the Project Manager for the Project Board

4.

The missing issue and change control procedure step: capture, examine, propose,

and

implement

5.

The missing level: Delivering, Directing and

7.

The missing role: Senior User, Senior Supplier and

9.

Which role is responsible for specifying the Business Case benefits?

10.

The Executive must justify the project by checking that it is Desirable,

and viable

11.

Who delivers the work?

12.

Records that the product has been verified by a quality review

14.

The configuration management procedure step that follows planning

15.

The principle supported mainly by the plans theme

16.

When a product is forecast not to meet a requirement

19.

Where the details about the request for work is documented

22.

Characteristic of Project Board members

23.

Threat risk response

25.

The other interest: Business, Supplier and

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Processes

Like a recipe for a cake, PRINCE2 can be broken down into ingredients and steps. The ingredients are

represented by the themes and the steps are represented by processes. There are 7 processes in

PRINCE2 and within each are activities to carry out the work for each process. Within each process the

activity names are a good descriptor of the main work to be carried out and indicate in many cases the

management product to be created or updated.

Starting up a Project

Corporate or programme management appoint the Executive, who in turn appoints the Project

Manager. These two roles work together to create the Project Brief and Initiation Stage Plan. This work

is done prior to the project starting, hence it is called pre project preparation. The customer's quality

expectations, the Project Product Description and the acceptance criteria, all created in this process,

should be sufficient to justify commitment of further resources by the appointed Project Board.

Directing a Project

This is the work performed by the Project Board, who direct the Project Manager in an ad hoc and

formal manner. Their first activity is to authorise initiation, meaning that they commit resources to plan

the project. Each Stage Plan is approved, as are any Exception Plans where tolerances are threatened

and a new plan is requested. The project is authorised after initiation, based on the Business Case

justifying the project as desirable, achievable and viable. The final activity by the Project Board is

approving the closure of the project, performed after the last stage.

Initiating a Project

For large projects, the Initiating a Project process could use Managing Product Delivery and Controlling a Stage.

Once the Project Board authorises initiation, the Project Manager creates the management strategies

for the project: quality, risk, configuration and communication. These describe how corporate or

programme management standards will be applied in the project, the formality of their application,

tailoring, and relevant procedures to be followed. Using the strategies the project is planned, controls

are specified, and the Business Case is refined. All management products are assembled to constitute

the Project Initiation Documentation, which is required to justify the commitment of resources for the

project and to provide the baseline for the Project Board to measure the project's progress. The next

stage is planned using Managing a Stage Boundary and authorisation for both the project and stage is

sought from the Project Board.

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The process cog diagram

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Controlling a Stage

This is where the Project Manager focuses attention once the Project Board has given approval to

commence the stage. This process is about three main things: dealing with issues and risks, reporting

and reviewing, and driving the work performed by the Team Manager(s). Issues and risks are captured

and analysed; if within tolerances then corrective action is taken, if not they are escalated. Monitoring

the stage status ensures that any threats to tolerances are forecast rather than realised. Work to be

performed by the Team Manager(s) is authorised, reviewed and received through Work Packages,

which contain the required Product Descriptions.

Managing Product Delivery

This is the work performed by Team Managers, if there are Team Managers on the project. It involves

accepting, executing and delivering a Work Package's products, and may not use PRINCE2. Although

managed by the Project Manager, it might not be overseen by the Project Manager.

Managing a Stage Boundary

Each stage requires a Stage Plan to be planned by the Project Manager in Managing a Stage Boundary.

Within a stage boundary the previous stage is reviewed and the next stage is planned. The Business

Case and Project Plan are updated. If the Project or Stage Plan is in exception then the plan to be

created is called an Exception Plan, replacing the stage or project in exception from the point of the

exception to the original plan's completion.

Closing a Project

If the Project Board decides to prematurely close the project, or the Project Manager recognises the

project is nearing its planned closure, then the Project Manager hands over any remaining products, the

project is evaluated and it is recommended for closure. The Project Board activity following this process

is authorise project closure.

 

Process

Role(s) responsible

Directing

Directing a Project

Project Board

Managing

Starting up a Project

Project Board / Project Manager / Corporate /

 

Programme Management

 

Initiating a Project

Project Manager

Controlling a Stage

Project Manager

Managing a Stage Boundary

Project Manager

Closing a Project

Project Manager

Delivering

Managing Product Delivery

Team Manager

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PRINCE2 process chart

wIth Exams | INtRoduCtIoN Version 5.6 PRINCE2 process chart Copyright © 2011, ITpreneurs Nederland B.V. All
wIth Exams | INtRoduCtIoN Version 5.6 PRINCE2 process chart Copyright © 2011, ITpreneurs Nederland B.V. All

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Process activities and management products

The following table provides a summary of the 7 processes, their activities and some of the

management products relevant to that process.

Process

Activities

Management Products

Starting up a

Appoint the Executive and the Project Manager

Lessons Log

Project

 

Capture previous lessons

Outline Business Case

Prepare the outline Business Case

Project Brief

Design and appoint the project management team

Project management team role

Directing a Project Initiating a Project
Directing a Project
Initiating a Project
Managing a Stage Boundary
Managing a Stage
Boundary

descriptions

Select the project approach and assemble the Project

Brief Project Product Description Plan the initiation stage Stage Plan Daily Log Authorise initiation Authorise
Brief
Project Product Description
Plan the initiation stage
Stage Plan
Daily Log
Authorise initiation
Authorise the project
Authorise a Stage or Exception Plan
Give ad hoc direction
Authorise project closure

Prepare the Risk Management Strategy

Prepare the Quality Management Strategy

Prepare the Configuration Management Strategy

Prepare the Communication Strategy

Set up the project controls

Create the Project Plan

Refine the Business Case

Assemble the Project Initiation Documentation

Benefits Review Plan

Business Case

Communication Management

Strategy

Configuration Item Record

Configuration Management

Strategy

Issue Register

Product Description(s)

Project Initiation Documentation

Project Plan

Quality Management Strategy

Quality Register

Risk Management Strategy

Risk Register

Plan the next stage

Stage Plan

Update the Project Plan

Exception Plan

Update the Business Case

Configuration Item Record

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Process
Activities
Management Products
Report stage end
Product Status Account
Produce an Exception Plan
End Stage Report
Lessons Report
Controlling a Stage
Authorise a Work Package
Highlight Report
Review Work Package status
Work Package

Receive completed Work Packages

Review stage status

Report Highlights

Capture and examine issues and risks

Escalate issues and risks

Take corrective action

Managing Product Accept a Work Package Delivery Execute a Work Package Deliver a Work Package
Managing Product
Accept a Work Package
Delivery
Execute a Work Package
Deliver a Work Package

Checkpoint Report

Configuration Item Record

Issue Report

Product Description

Quality Register

Work Package

Team Plan

Closing a Project

Prepare planned closure

Benefits Review Plan

Prepare premature closure

End Project Report

Hand over products

Lessons Report

Evaluate the project

Follow-on action

 

recommendations

 

Recommend project closure

 

Product Status Account

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Processes crossword

wIth Exams | INtRoduCtIoN Version 5.6 Processes crossword See page 287 for answer key Across 1.

See page 287 for answer key

Across

1. If tolerances are threatened, which document is reviewed by the Project Board before

authorising work?

3.

What can trigger the Starting up a Project process?

6.

How many activities are in the Managing Product Delivery process?

7.

What is the missing strategy: Risk, Quality, Communication and

9.

Which process follows Initiating a Project?

10.

Which plan is updated in Closing a Project?

13.

Which role is responsible for the Directing a Project process?

15.

How many activities are in the Directing a Project process?

16.

What optional management product is created in the accept a Work Package activity?

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18.

What is the final deliverable for the Initiating a Project process?

19.

What are captured, examined and escalated in Controlling a Stage?

23.

Which plan is created in Starting up a Project?

25.

The next Stage Plan or what other plan might be created in Managing a Stage Boundary?

26.

What is refined in Initiating a Project?

27.

Which role is responsible for the Initiating a Project process?

28.

Which management product other than the Business Case is updated?

Down

1.

How many activities are in the Controlling a Stage process?

2.

Which records are updated during execute a Work Package?

4.

There are two closure scenarios in a project: planned and

5.

In Managing Product Delivery, a Work Package is accepted, executed and

8.

What is used to justify the project?

11.

In which management product would you expect to find a request for work to the Team

Manager?

12.

In which activity would the Project Board expect to receive the Highlight Report?

14.

A report that is created in Managing a Stage Boundary is

17.

Which role is responsible for the Managing Product Delivery process?

20.

How many activities are there in Starting up a Project?

21.

After Starting up a Project comes the Directing a Project activity authorise

22.

Which report is received from the Team Manager?

24.

Which role can appoint the Project Manager?

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Embedding and tailoring

Embedding PRINCE2 is about the adoption of PRINCE2 across an organisation. Tailoring is performed by

the project management team to adapt the method to the context of a specific project. It does not

consist of omitting elements of PRINCE2. Tailoring is about adapting the method to external factors

such as the scale of the project.

Things to consider when:

Embedding: process responsibilities, scaling rules, standards, training & development, tools and

process assurance

Tailoring: adapting the themes, incorporating specific themes, incorporating specific terms, revising

product descriptions of management products.

terms, revising product descriptions of management products. See Managing Successful Projects with PRINCE2, page 215, for

See Managing Successful Projects with PRINCE2, page 215, for more information about

tailoring.

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Follow-up after your course

After the training course we will email you a questionnaire to help us improve our courses. We will ask your opinion on the trainer’s ability to get PRINCE2 concepts across and on the course

materials/content. In addition you will be supplied with a post course summary of PRINCE2 to present

(if you wish) to your senior managers (or we can deliver an executive briefing on your behalf). The aim

of this post course summary of PRINCE2 is to save you time by providing you with a ready-made

summary that you can tailor to match your thoughts about your training course and PRINCE2 in

general. The document outlines the basic PRINCE2 concepts and will hopefully remind you to think of

ITpreneurs when you wish to train staff and implement PRINCE2!

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Business Case

wIth Exams | busINEss CasE Version 5.6 Business Case Key concepts The project should There is

Key concepts

The project should

There is continual approval of the project's Business Case by the Project Board by

remain desirable,

asking: Is the project:

achievable and viable

desirable – is there a balance between meeting corporate objectives, benefit, cost

and risk? (Executive)

achievable – can the project's products provide the benefits? (Senior User)

viable – can the project deliver the outputs? (Senior Supplier)

The Senior User is

responsible for

specifying the benefits

upon which the

Business Case is

approved

The development path

is develop, maintain,

verify and confirm.

The Senior User:

is held to account by corporate or programme management for realisation of benefits

ensures that the desired outcomes of the project are specified

ensures that the products deliver the desired outcomes

ensures that the expected benefits are realised

provides actual versus forecast benefits statements.

In PRINCE2:

the Business Case is developed at the beginning of the project,

the Business Case is maintained throughout the life of the project,

the Business Case is verified by the Project Board at each key decision point and

benefits are confirmed throughout the period that the benefits accrue.

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Introduction

The purpose of the Business Business

Case theme is to establish

mechanisms to judge whether the

project is (and remains)

desirable, achievable and

viable as a means to support

decision-making in its (continued)

investment.

Quoted from PRINCE2 © Crown copyright

2009, reproduced under licence from OGC.

What is a Business Case?

The Business Case presents information used to judge

whether the project is (and remains) desirable, achievable

and viable, and therefore worthwhile investing in.

Since these questions are ongoing, the Business Case is

reviewed and updated regularly.

the Business Case is reviewed and updated regularly. Beware! Not just initial funding The Business Case

Beware! Not just initial funding

The Business Case should not only be used to gain initial funding for a project. It should be

actively maintained throughout the life of the project and be continually updated with actual

and forecast costs, risks and benefits.

To ensure investment is allocated to the best projects, it is

important to ascertain:

the benefits to be gained (and when)

the degree of risk

the level of investment required.

Projects should be evaluated on how well they will contribute

to corporate objectives. Such analysis enables one project to

be compared with another so that the organisation can

choose to invest in the best set of projects.

What is a benefit? A measurable A measurable

improvement resulting from an

outcome perceived as an

advantage by one or more

stakeholders.

Quoted from PRINCE2 © Crown copyright

2009, reproduced under licence from OGC.

Homework: Identify the reason, expected benefit, major risks and level of investment in the following

Homework: Identify the reason, expected benefit, major risks and level of

investment in the following scenario you would include in the outline Business

Case.

Over the past 5 years, 3 fatalities have been recorded at the intersection

modifications to traffic flow could have prevented 2 fatalities in the last 5 years

(reason)

(reason)

(reason) (reduction is benefit)
(reason) (reduction is benefit)
(reduction is benefit)

(reduction is benefit)

. Research shows that

. Potentially

there could be an increase in congestion

endangering pedestrians

approximately $2 million, taking 6 months

(minor risk) (major risk) (investment)
(minor risk)
(major risk)
(investment)

causing unforeseen issues on surrounding roadways,

and light traffic such as bicycles. The cost for this type of modification is

not counting planning permission

(major risk)
(major risk)

and town

planning work. Recently a public consultation cautiously welcomed the modifications recommended with possible

legal action from local businesses

pollution

(major risk)
(major risk)

about a decrease in business during the project and expected noise

(disbenefit) .
(disbenefit)
.

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Continued business justification

It is a PRINCE2 principle that a project must have continued business justification. This business

justification is the reason for the project and is documented in the Business Case.

DAVe - three pillars of justifying a project

Business Case. DAVe - three pillars of justifying a project The Project Board should be asking:

The Project Board should be asking:

Desirable: is there a net benefit, acceptable risk and a fit with strategy - Executive

return on investment

Is this a decent

Achievable: can the products deliver the benefits? - Senior User

life easier?
life easier?

Will it help me meet my KPIs/make my

Viable: can the project deliver the products? - Senior Supplier

Bob the builder: "Can we do it?"

- Senior Supplier Bob the builder: "Can we do it?" Tip: Ask DAVe! You can use

Tip: Ask DAVe!

You can use the name "DAVe" to remember what the Project Board uses to ensure a project

is justified – not sure if a project is worthwhile? Just ask DAVe! Desirable, Achievable and

Viable (executive).

Are the following projects likely to pass a DAVe evaluation? If not is it because

Are the following projects likely to pass a DAVe evaluation? If not is it because

they are undesirable, not achievable or not viable?

New software system to increase income by speeding up data entry: The project is on track to delivering on time,

there are no new risks and existing risks have not changed, however we cannot deliver the acceptance criteria

outcome '30% reduction in input time', which will have to be changed as a result. All the products that have been

delivered so far are on time, with one that should be completed in just a little while. The next stage should be easier

than this stage, and if the tolerances are carried over we will have plenty of money. This project is not achievable; as

 

it cannot deliver an acceptance criteria outcome and therefore it is unlikely to deliver the benefits. Despite the

 

project being viable (all products outputs can be delivered), this project is not achievable.

 

New warehouse to store large shipment of ice cream: With little more than four weeks to go for the ice cream delivery date, the warehouse still needs its roof to be put on and the concrete poured. This was meant to have been done about eight weeks ago, but due to the weather (a recent heat wave) it has been delayed. The storage capacity will be sufficient for all the ice cream but there are doubts that the work scheduled for eight weeks ago can be

carried out in the next four weeks.

This project is not viable: it has not managed to deliver its outputs, and is

unlikely to complete eight weeks of work in four weeks.

 

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Management products

Benefits Review Plan

A Benefits Review Plan is used to define how and when the achievement of the project's benefits,

expected by the Senior User, can be measured, both during and after the project. It is used to define

any post-project benefits reviews. Benefits are mostly measured after the project, but can also be

measured during the project. It is also possible for the forecast of benefits to change over time. The

measurement of benefits during and after the project are kept separate, as post-project measurement

is not under the Project Manager's control. Programme or corporate management may undertake post-

project benefits reviews.

See Managing Successful Projects with PRINCE2, Appendix A, page 235, for the Productmanagement may undertake post- project benefits reviews. Description of a Benefits Review Plan. See page 33

Description of a Benefits Review Plan.

See page 33 for an example of a Benefits Review Plan.235, for the Product Description of a Benefits Review Plan. Business Case The Business Case describes

Business Case

The Business Case describes the business justification for the project based on expected benefits, costs

and risks.

See Managing Successful Projects using PRINCE2, Appendix A, page 237, for the Productfor the project based on expected benefits, costs and risks. Description of a Business Case. See

Description of a Business Case.

See page 31 for an example of a Business Case.A, page 237, for the Product Description of a Business Case. 30 Copyright © 2011, ITpreneurs

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Business Case

 

EarthMovingRUS

 

Business Case

Highlights key points, includes

Executive summary

The return on investment from the procurement of 2 new earth movers

 

important benefits and return on

would be between 5% and 24%; completed in 6 months; would involve

investment.

training new staff; financed by a loan.

 

Defines reasons for the project

Reasons

Existing machinery has 95% capacity usage and each machine is 80%

and explains how it will enable the

operational due to the recommended 500 hours between servicing and

achievement of corporate

any required maintenance. We are aware of 3 tenders about to be

 

strategies and objectives.

released, including business that means we are two full time earth movers

short. These tenders are expected to coincide with a housing boom in the

next ten years, forecast by the government. These tenders will therefore

ensure that EarthMoversRUS will maintain the corporate targets of a 10%

per annum increase in business.

 

Analysis and reasoned

Business options

Do something

 

recommendation for:

Purchase two new earth movers – chosen option

 

do nothing

Hire earth movers as required from local hire firms

do the minimal

 
 

Do minimum

 

do something.

Subcontract the work to other earthmoving firms

 

Do nothing

 

Do not reply to large tenders to avoid demand, gain business from

 

other areas or act as subcontractor with existing capacity

Reply to tenders as expected and hope that capacity will be available

at the time

Benefits expressed in measurable

Expected benefits

Capacity will be available to meet increasing business: The past five years

terms. Benefits should be both

have seen an 11.4% increase in business, each signed contract must

 

qualitative and quantitative. They

yield an EBIT of 8%; the minimum acceptable increase in business is 10%

should be aligned to corporate or

pa as defined in the corporate strategy.

 

programme benefits. Tolerances

Take advantage of the forecast boom: A recent government report says:

should be set for each benefit and

due to increased immigration and movement from provincial towns to

 

for the aggregated benefit.

cities there is an expected housing shortage of 23,000 homes per month

peaking in five years and decreasing to the historical average of 10,000

by year ten.

 

Outcomes perceived as negative

Expected dis-

The Operations Manager will incur a wage cost increase, by $150,000

 

by one or more stakeholders.

benefits

due to requiring more operators and maintenance staff

 

Timescale of the project will run

Timescale

All equipment should be available for use within 6 months.

 

and when benefits will be

 

realised.

Benefits will be realised over 10 years.

 

Summary of:

Costs

 

Cost

Value (NZD)

 

project costs

2

x earth movers

$

2,000,000

ongoing operations and

6

x trained staff (includes cost of staff and loss of

$ 200,000 $ 100,000
$ 200,000
$ 100,000

maintenance costs

work during training)

funding arrangements.

Project management, planning and procurement

 

activities

 

Total

$

2,300,000

Compares overall benefits &

Investment

The return on investment over 10 years will range between 24% and 5%

disbenefits to costs.

appraisal

(best and worst case scenarios).

 

Best case scenario: 95% capacity usage and 80% operational

 

Worst case scenario: 65% capacity usage and 80% operational

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EarthMovingRUS

Business Case

Summary of key risks with likely impact and plans should they

Major risks

Because there is competition in the market place there is a threat that our proposal to the tender might not be accepted, which would burden us with

(threats and

occur.

opportunities)

costs while reducing the business we deliver.

Because the government report is a prediction of the future there is a

threat that the report is wrong, which would mean that the expected

increase in business may not eventuate.

Because EarthMovingRUS has existing loans there is a threat that the

loan required will not be looked on favourably by the bank, which could

increase the financing costs for all outstanding loans.

Because the new earth movers have larger scoop blades and can deliver

the work in 50% less time there is an opportunity that customers may

request we do more work on the basis that the budgets have already been

allocated, which could mean greater than expected revenue immediately

following the purchase.

expected revenue immediately following the purchase. See Managing Successful Projects with PRINCE2, Appendix A,

See Managing Successful Projects with PRINCE2, Appendix A, page 237, for the Product

Description of a Benefits Review Plan.

Within which section of the Business Case would you find the following? A rare and

Within which section of the Business Case would you find the following?

A rare and endangered bird is on the brink of extinction, poaching has reduced numbers significantly, the plight of

these birds has been taken up by a nature conservation organisation, that is planning a project to save the species

by reducing poaching.

As a consequence of completion of the product "United Nations protected status application" there will be an

increase in poaching.

Expected dis-benefits, it is shown that the threat of scarcity means poaches work harder

before the approvals

 

Do nothing.

From 1200 mating pairs 5 years ago there are now just 200 mating pairs, prices have increased on the black market as scarcity has increased. Without protection this species does not get included under the various

Business options

international agreements and treaties that could reduce the poaching and international trading.

Reasons
Reasons

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Benefits Review Plan

 

EarthMovingRUS

Benefits Review Plan

What benefits are to be

Scope

This Benefits Review Plan is to assess if, after 6 months of operation, the

measured.

earth movers are maintaining the capacity usage and operational

percentage above the minimum expected of 65% and 80% respectively,

and that the required 10% increase in business is being achieved.

Who is accountable for benefits.

Who is accountable

The Operations Director is responsible for ensuring the benefits are met in

this project.

How and when to measure

How to measure the

Capacity will be available to meet increasing business: Check that

expected benefits.

benefits

demand in capacity of the equipment is being met by the availability.

Take advantage of the forecast boom: Use market statistics to verify that

the boom claimed in the report has transpired and that the new earth

movers are being used for these residential jobs.

What resources are needed.

Resources required

One business analyst part time for two weeks or full time for one week,

to fulfil the work

managed by the Operations Director.

Baseline measures from which

Baseline

Use the financial reports published on the website, gain detailed analysis

improvements will be calculated.

measurements

from the finance system.

How performance of project's

How performance

Analyse service and maintenance reports and logs to verify lengths of

product will be reviewed.

measured

time spent in the workshop, correspond that with the billable time spent at

clients' sites and use these figures to verify the capacity usage and

operational percentages.

verify the capacity usage and operational percentages. See Managing Successful Projects with PRINCE2, Appendix A,

See Managing Successful Projects with PRINCE2, Appendix A, page 235, for the Product

Description of a Benefits Review Plan.

Within which section of the Benefits Review Plan would you find the following? A rare

Within which section of the Benefits Review Plan would you find the following?

A rare and endangered bird is on the brink of extinction, poaching has reduced numbers significantly, the plight of

these birds has been taken up by a nature conservation organisation, that is planning a project to save the species by reducing poaching.

At project start, 20 birds were confiscated in 2009 at the airport, 200 mating pairs have been identified in the

wild.

Baseline measurements

The Honourable Wayne Lawson, Minister for the Environment.

Who is accountable

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Business Case development path

In PRINCE2, the Business Case is developed at the beginning of the project, maintained throughout

the life of the project, formally verified by the Project Board at each key decision point and benefits

are confirmed throughout the period that the benefits accrue.

confirmed throughout the period that the benefits accrue. Develop the Business Case This is the means

Develop the Business Case

This is the means of getting the right information upon which

decisions can be made.

The development of the Business Case is performed by the

Executive or someone nominated by the Executive, eg, the

Project Manager or a business analyst. The Executive remains

responsible for the drafting, completion and approval of the

Business Case. When the Business Case comes from

programme management it is refined rather than created.

During Starting Up a Project the Business Case is in outline,

during Initiating a Project it is refined.

Tip: Impact analysis?is in outline, during Initiating a Project it is refined. The Business Case is at the

The Business Case is at the centre of any impact

assessment of risks, issues and changes by asking

the question: how will this risk, issue or change

affect the Business Case and the business

objectives and benefits being sought?

Develop

Senior UserDevelop Executive and Project Manager Starting up a Project Initiating a Project Directing a Project Project

Develop Senior User Executive and Project Manager Starting up a Project Initiating a Project Directing a

Executive and Project Manager

Starting up a ProjectDevelop Senior User Executive and Project Manager Initiating a Project Directing a Project Project mandate Project

Initiating a Project

Directing a Project

Project mandateExecutive and Project Manager Starting up a Project Initiating a Project Directing a Project Project Plan

Project Plan

Risk Register

See Managing Successful Projects with PRINCE2, page 23, figure 4.2 The development patha Project Project mandate Project Plan Risk Register for the Business Case. 34 Copyright © 2011,

for the Business Case.

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Maintain the Business Case

To ensure decision-making is well informed, the Business

Case should be updated with actuals and current forecasts for

costs and benefits. Benefits should be maintained by the

Project Manager:

when carrying out an impact assessment of any new or

revised issues or risks

at the end of each stage to determine what costs,

timescales, risks and benefits need to be updated

during the final stage as part of assessing the project’s

performance against its requirements and the likelihood

that the outcomes will provide the expected benefits.

Verify the Business Case

The Business Case drives all decision-making by supplying

information to verify that the business objectives and benefits

being sought can be realised and therefore the project

remains justified.

It is the responsibility of the Executive to assure the project’s

stakeholders that the project remains desirable, achievable

and viable at all times. The Executive should not rely on end

stage assessments alone to verify the Business Case; Project

Assurance should be used to assist this verification.

The Business Case should be verified by the Project Board:

at the end of the Starting up a Project process to authorise

project initiation

Maintain

Maintain Project Manager Controlling a Stage Managing a Stage Boundary Issue Register Risk Register Issue Report

Project ManagerMaintain Controlling a Stage Managing a Stage Boundary Issue Register Risk Register Issue Report Stage Plan

Controlling a StageMaintain Project Manager Managing a Stage Boundary Issue Register Risk Register Issue Report Stage Plan Project

Managing a Stage Boundary

Issue RegisterMaintain Project Manager Controlling a Stage Managing a Stage Boundary Risk Register Issue Report Stage Plan

Risk Register

Issue Report

Stage Plan

Project Plan

Verify

Verify Executive, Project Board & Project Assurance Directing a Project Stage Plan Project Plan

Executive, Project Board & ProjectVerify Assurance Directing a Project Stage Plan Project Plan

Assurance

Directing a ProjectVerify Executive, Project Board & Project Assurance Stage Plan Project Plan

Stage PlanVerify Executive, Project Board & Project Assurance Directing a Project Project Plan

Project Plan

at the end of the Initiating a Project process in order to authorise the project

with an Exception Plan to authorise the revised stage and project continuation

at the end of each stage to authorise the next stage and project continuation.

The investment appraisal in the Business Case verifies to the Project Board that the Business Case

justifies the authorisation or continuation of the project.

During the following activities should the Business Case be developed, maintained, verified or confirmed? 1.

During the following activities should the Business Case be developed,

maintained, verified or confirmed?

1. Assessing a new risk that has now become an issue.

2. Receiving notification from the Project Manager that the project is in exception.

Maintained
Maintained

3. Executing the Benefits Review Plan after the project.

4. Creating the Project Initiation Documentation.

Confirmed Developed
Confirmed
Developed
Verified
Verified

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Confirm benefits

The Business Case is used to verify a project's desirability

through the benefit, cost and risk exposure, whereas the

Benefits Review Plan confirms the Business Case's benefits

are realised by scheduling a series of reviews both during and

after the project. In particular the Benefits Review Plan

covers:

who is accountable for the expected benefits

how to measure achievement of expected benefits, and

when they can be measured, eg, to measure popularity of

a movie, measure gross sales at the box office

what resources are needed to carry out the review work

baseline measures from which the improvements will be

calculated

Confirm

Confirm Executive, Senior User, Project Manager, Corporate or Programme Management Managing a Stage Boundary After the

Executive, Senior User, ProjectConfirm Manager, Corporate or Programme Management Managing a Stage Boundary After the project Benefits Review Plan

Manager, Corporate or Programme

Management

Managing a Stage BoundaryUser, Project Manager, Corporate or Programme Management After the project Benefits Review Plan Stage Plan Project

After the project

Benefits Review PlanProject Manager, Corporate or Programme Management Managing a Stage Boundary After the project Stage Plan Project

Stage Plan

Project Plan

how performance of the project product will be reviewed.

Efforts to ensure the successful execution of the Benefits Review Plan include performing project and

post-project benefits reviews (possibly performed by corporate or programme management) to identify

that the benefits have been achieved.

Benefit reviews during and after the project

Although the Executive is usually responsible for ensuring benefits reviews are planned and executed,

this may not always be the case.

For projects in a programme environment, the project’s Benefits Review Plan may be produced and

executed by the programme.

A centre of excellence or some form of performance monitoring unit may measure benefits.

Post-project measurement activity responsibilities transfer to corporate or programme management

after the project closes.

During the project, realised benefits should be reported by the Project Manager in the End Stage

Report. Further benefits should be forecast as part of the Managing a Stage Boundary process.

Reviews after the project involve corporate or programme management asking the Senior User to

provide evidence of realised benefits. Benefits reviews that have occurred after product handover will

also review the operational performance of the project’s products and identify any risks that went

unidentified that may provide useful lessons for other projects.

Provide at least two ways to measure (confirm) the benefits from the following benefit statements:

Provide at least two ways to measure (confirm) the benefits from the

following benefit statements:

1. Reduced costs of six department stores.

per store (average), costs per sq m. or per $ earned

2. Increased profitability in a rental management company.

per property yield, rental rates, cost savings

3. Improved patient well-being in a hospital.

revisit, no. of days per visit, complaints

4. Customers will feel more positive towards our brand.

Buy again (repeat), referrals, survey of 5 questions

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Benefits Review Plan

The Benefits Review Plan, if not produced and executed by programme management, is:

created by the Project Manager in the initiation stage

submitted to the Project Board (which may refer to corporate or programme management) when

seeking project authorisation

updated towards the end of each stage with actual benefits achieved and to include remaining

reviews.

actual benefits achieved and to include remaining reviews. Tip: Keep it separate As the Benefits Review

Tip: Keep it separate

As the Benefits Review Plan may be managed by the project, corporate or programme

management, PRINCE2 recommends that it is kept separate from the Project Plan and

Stage Plans.

Business Case development within the processes

The outline Business Case is developed in Starting up a Project and further developed to become the

refined Business Case by the end of Initiating a Project. After it has been approved in the Directing a

Project activity authorise the project, all future modifications are considered to be part of maintaining

the Business Case. The Business Case is also maintained when reviewing issues and risks and when the

Project Manager updates it with actual and forecast costs and benefits. Every time the Business Case

undergoes maintenance it should be verified to ensure it remains valid; this is where the desirability of

the project is assessed. The Business Case is confirmed with the execution of the Benefits Review Plan,

which usually occurs after the project has been closed.

Homework: In the following process activities is the Business Case being developed, maintained, verified or

Homework: In the following process activities is the Business Case being

developed, maintained, verified or are benefits being confirmed?

maintained, verified or are benefits being confirmed? 1. Select the project approach and assemble the Project

1. Select the project approach and assemble the Project Brief Developed

2. Authorise the project

Verified Verified Maintained Verified Confirmed
Verified
Verified
Maintained
Verified
Confirmed

3. Authorise project closure

4. Update the Business Case

5. Hand over products

6. Review stage status

When should the following project's benefits be confirmed - during the project,Business Case 5. Hand over products 6. Review stage status after the project, or both during

after the project, or both during and after the project?

a. A programme has appointed Benefit Managers who create the Business Case for each project and then define the

Benefit Review Plans for each. These are managed centrally. The project is due to develop a new customer

management system; the project does not cover the roll-out of the system to the business.

b. There is a two year project to implement PRINCE2 in an organisation that manages the customer service enquiries

for large banks. The implementation will be delivered on a department by department basis, the last round of

training and mentoring occurring in the last stage. It is hoped that the project will result in improved customer

satisfaction and more measurable results from projects.

c. The refurbishment of a small office block will be undertaken to improve profitability and rental yield. It is not

expected to be completed for 6 months and will remain vacant until that time.

d. Training in anger management will be delivered to 300 staff to deal with a higher level of violent workplace

incidents over the past 3 years. The training will be in small groups and focused on a regional office basis.

After
After

During and after

After
After
During
During
and after
and after

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Business Case contents

The reasons in the Business Case explain why the project is required. The business options provide

sufficient information to judge which option presents value for money and which is more desirable,

achievable and viable. Expected benefits of the chosen option are aligned with objectives and strategy,

mapped to outputs, quantified, expressed in tangible ways and assigned to individuals. Expected dis-

benefits and the timescale for the chosen option are included. Costs should be derived from the Project

Plan and the investment appraisal calculated over the useful life of the project's products. Finally, major

risks should be identified and analysed.

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Business options

When considering business options consider the following three starting points:

Do nothing

This is the baseline starting point to evaluate all other options (may have negative net effect).

Do the minimum

This is the amount of resources to commit to achieve a result that is satisfactory (minimal benefits).

Do something more

This is more than just the minimum and is determined by the benefits that are possible and

achievable.

determined by the benefits that are possible and achievable. Tip: Keep an eye on the business

Tip: Keep an eye on the business options

The Business Case for the chosen business option should be continually assessed for

desirability, achievability and viability as any changes and/or new risks may make one of

the other options more justifiable.

Three starting points for developing business options

Three starting points for developing business options The resource commitment line in the figure is meant

The resource commitment line in the figure is meant to show (roughly) that few net benefits are gained,

 

doing 'something more' will usually lead to more net benefit: this really is the minimum. The usefulness of

minimum is not suffering from the 'do nothing' option

 

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Expected benefits

Whether benefits are financial or non-financial, each benefit claimed should include:

the indicators (outcomes) that will be used to confirm realisation

the baseline values of the indicators

details of how to measure the indicators

estimated dates for when the indicators should be measured

alignment to corporate objectives and strategy

mapping from the project's outputs and outcomes to the benefits (and therefore indicators)

measurements to confirm the realisation of benefits (with tolerance)

assignment of the benefits to specific individuals (individuals in the Senior User role are responsible

for the set of benefits within their respective areas).

The project should not include any products that do not directly or indirectly enable the benefits that

are being sought. Once the benefits are defined, the activities to establish and collect the measures

should be defined in the Benefits Review Plan.

Tip: products -> outcomes -> measurements -> benefitsthe measures should be defined in the Benefits Review Plan. Mapping products to outcomes and subsequently

Mapping products to outcomes and subsequently to benefits aids decision-making in the

planning and control of the project. Such mapping enables decisions to be made based on

the impact of the realisation of the expected benefits, ie, the justification for undertaking

the project.

Tip: Tangible benefitsbenefits, ie, the justification for undertaking the project. Wherever possible, benefits should be expressed in tangible

Wherever possible, benefits should be expressed in tangible ways. The Senior User or

Executive may define many benefits as intangible. It is worth making the effort to think

carefully about intangible benefits to see if they can be expressed in more tangible ways.

Outputs, outcomes and benefits

An output is any of the project’s specialist products

(whether tangible or intangible).

An outcome is the result of the change derived from

using the outputs.

A benefit is the measurable improvement resulting from

an outcome that is perceived as an advantage by one or

more stakeholders.

What is an outcome? The result of change, normally affecting real- world behaviour and/or circumstances.

What is an outcome? The result

of change, normally affecting real-

world behaviour and/or

circumstances.

What is an output? A specialist

product handed over to a user(s)

Quoted from PRINCE2 © Crown copyright

2009, reproduced under licence from OGC.

The link from the project’s outputs to outcomes and benefits should be clearly identified and made

visible to those involved, otherwise the original purpose of the project can get lost.

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