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List of tablesTable 3.1The PRINCE2 themesTable 4.1 Responsibilities relevant to theBusiness CaseTable 12.6 Plan the initiation stage:responsibilitiesTable 13.1 Authorize initiation: responsibilitiesTable 5.1 Responsibilities relevant to theOrganization themeTable 13.2 Authorize the project:responsibilitiesTable 6.1 The relationship between ProjectAssurance and quality assuranceTable 13.3 Authorize a Stage or Exception Plan:responsibilitiesTable 6.2 Example of a Quality RegisterTable 13.4 Give ad hoc direction: responsibilitiesTable 6.3 Responsibilities relevant to theQuality themeTable 13.5 Authorize project closure:responsibilitiesTable 7.1 Responsibilities relevant to the PlansthemeTable 14.1 Prepare the Risk ManagementStrategy: responsibilitiesTable 8.1 Example of the expected monetaryvalue techniqueTable 14.2 Prepare the ConfigurationManagement Strategy:responsibilitiesTable 8.2Risk responsesTable 8.3 Responsibilities relevant to the RiskthemeTable 14.3 Prepare the Quality ManagementStrategy: responsibilitiesTable 9.1 Types of issueTable 14.4 Prepare the CommunicationManagement Strategy: responsibilitiesTable 9.2Project Board decisionsTable 9.3 Responsibilities relevant to theChange themeTable 10.1The six tolerance areas by levelTable 10.2 Responsibilities relevant to theProgress themeTable 11.1 An example of a table ofresponsibilitiesTable 11.2Key to process diagramsTable 12.1 Appoint the Executive and theProject Manager: responsibilitiesTable 12.2 Capture previous lessons:responsibilitiesTable 12.3 Design and appoint the projectmanagement team: responsibilitiesTable 12.4 Prepare the outline Business Case:responsibilitiesTable 12.5 Select the project approachand assemble the Project Brief:responsibilitiesTable 14.5 Set up the project controls:responsibilitiesTable 14.6 Create the Project Plan:responsibilitiesTable 14.7 Refine the Business Case:responsibilitiesTable 14.8 Assemble the Project InitiationDocumentation: responsibilitiesTable 15.1 Authorize a Work Package:responsibilitiesTable 15.2 Review Work Package status:responsibilitiesTable 15.3 Receive completed Work Packages:responsibilitiesTable 15.4 Review the stage status:responsibilitiesTable 15.5 Report highlights: responsibilitiesTable 15.6 Capture and examine issues andrisks: responsibilities

List of tables Table 15.7 Escalate issues and risks:responsibilitiesTable 15.8 Take corrective action:responsibilitiesTable 16.1 Accept a Work Package:responsibilitiesTable 16.2 Execute a Work Package:responsibilitiesTable 16.3 Deliver a Work Package:responsibilitiesTable 17.1 Plan the next stage: responsibilitiesTable 17.2 Update the Project Plan:responsibilitiesTable 17.3 Update the Business Case:responsibilitiesTable 17.4Report stage end: responsibilitiesTable 17.5 Produce an Exception Plan:responsibilitiesTable 18.1 Prepare planned closure:responsibilitiesTable 18.2 Prepare premature closure:responsibilitiesTable 18.3Hand over products: responsibilitiesTable 18.4 Evaluate the project: responsibilitiesTable 18.5 Recommend project closure:responsibilitiesTable 19.1Embedding and tailoringTable 19.2 Examples of projects of differentscalesTable 19.3 Comparison between PRINCE2 and aBody of KnowledgeTable A.1Example of a product checklistTable B.1 The Association for ProjectManagement’s governance of projectmanagement principlesTable D.1 Example of a Project ProductDescription for an annual conferenceix

ForewordPRINCE2 is extensively used in more than150 countries around the world, and its take-upgrows daily. It is widely considered as the leadingmethod in project management, with in excess of20,000 organizations already benefiting from itspioneering and trusted approach.This updated guidance will help those runningprojects of any size and in any environmentto effectively deliver what is required byappropriately managing the costs, timescales,quality, scope, risks and benefits. Its developmenthas followed widespread consultation and drawsupon real-life experiences in both public andprivate sector organizations.Today, complex projects often involve severalorganizations working together in partnership orthrough contractual arrangements to achieve theobjectives. PRINCE2 provides a common languagebetween organizations and with externalsuppliers. It also allows a focus on the BusinessCase, providing a mechanism to define what theproject is trying to achieve, and the rationale andbusiness justification for it.This latest version of Managing SuccessfulProjects with PRINCE2 represents an evolutionof the previous manuals. The basic methodologyremains, but by building on comments from users,this new manual aims to be more accessible andeasier to tailor for specific individual needs.This new edition covers the principles of PRINCE2,reinforcing the good practices of successfulprojects. The themes describe aspects of projectmanagement that require specific treatment,and the processes describe the progress througha project lifecycle from start-up to closure.It is recommended that you use this manualin conjunction with the companion volume,Directing Successful Projects with PRINCE2(TSO, 2009).The number of people taking PRINCE2qualifications increases by around 20% year onyear, and it remains a key contributor to thesuccessful delivery of projects. It is a vital methodfor any organization wishing to secure efficientand effective operational outcomes.Nigel SmithChief ExecutiveOffice of Government Commerce

AcknowledgementsThe Office of Government Commerce (OGC) hascontinued to develop and improve the definitionand presentation of PRINCE2 within this referencemanual. The authoring team are acknowledgedfor their significant contribution, under contract,to the design and development of this guidance.PRINCE2:2009 project governanceLead authorChange control panelAndy Murray Outperform UK LtdAuthoring teamNigel Bennett John Edmonds Bob Patterson Sue Taylor Graham Williams Sun Microsystems LtdpearcemayfieldFujitsu ServicesAPMG PRINCE2 examinerGSW Consultancy LtdLead reviewer and mentorColin Bentley PRINCE2 Chief Examiner 1998-2008Further contributionsIn order to ensure that OGC’s ManagingSuccessful Projects with PRINCE2 (2009) remainsa true reflection of current and future trends inthe international field of project managementbest practice, and to produce guidance withlasting value, OGC consulted widely with keystakeholders and experts at every stage in theprocess. OGC would like to thank the followingindividuals and their organizations for theircontributions to this new guidance:PRINCE2 reference groupRob Brace, Department of Work & Pensions;Andrew Bragg, Chief Executive, APM; Prof.Christophe Bredillet, ESC Lille; Terry Cooke Davis,Human Systems; Lynne Crawford, Universityof Sydney; John Cutting, MOD (DPA – DE&S);Prof. Darren Dalcher, Middlesex University,National Centre for Project Management; SteveFalkenkrog, PMI; Ruth Little, DTI Projects Centre;Dusty Miller, Sun Microsystems Ltd; Bob Patterson,Fujitsu; Philip Rushbrook, Cabinet Office; BeverleyWebb, BSI Project Management standardcommittee; Jens Wandel, Director, UNDPMike Acaster, OGC, Project Executive; EddieBorup, BPUG, Senior User; Anne-Marie Byrne,TSO, Project Manager; Janine Eves, TSO, SeniorSupplier; Sandra Lomax, BPUG, Senior User;Richard Pharro, APMG, Senior SupplierCoos Groot, Best Practice User Group (PRINCE2Italy); Peter Johnson, Peter Johnson PJ Ltd; SheilaRoberts, Cupe Ltd; Martin Rother, Best PracticeUser Group (PRINCE2 Germany); David Watson,ADt PartnershipReviewersRobert Allen, PRS for Music; Adalcir da SilvaAngelo, Elumini IT & Business Consulting; PaulAskew, Housing Corporation; Richard Aspden,Pathfinder Project Management; GarethAtwood, Foster Wheeler Energy; Marc Baetens,Pronohau Ltd; Andrew Ball, Audit Commission;Jim Barker, Curtis & Cartwright Consulting Ltd;Keith Batchelor, Foster Wheeler Energy; DickBennett, APMG Chief Assessor; Kate Blackall,APMG PRINCE2 examiner; Johan Bleeker,Standard Bank; Eddie Borup, Ibps solutions;Chris Braithwaite, Wellstream; George Brooke,Oak Lodge Consulting Ltd; Mark Canning, NorthWest Regional Development Agency; Tim Carroll,Standard Chartered Bank; Jacqueline Chadwick,VOSA; Sue Childs, APMG PRINCE2 examiner;Alison Clack, Sean Alison Ltd; Jim Clinch, ClinchConsulting; Brian Coombes, The Projects Group;Arthur Coppens, Getronics Consulting EducationalServices; Bjarne Corvinius, Rovsing Management;Anthony Dailey, MWH; Terry Dailey, DeliverablesManagement Consultants; Bill Duncan, APMGPRINCE2 examiner; Hassan El Meligy, IEEE; DarilynEvans, Adaptive Frameworks, Alan Ferguson, AFA;Chris Ferguson, Novare Consulting Ltd; Ray Frew,Aspen Management Training; Alvin Gardiner,PR-02 (Scotland) Ltd; Emmanuel Gianquitto,APMG (International); Colin Graham, AylesburyVale DC; John Greenwood, CSC; AngelikaHamilton, APMG (Germany); Gary R O HaranDoyle, Swiss Life; Simon Harris, Logical Model

xii AcknowledgementsLtd; Wietse Heidema, Opmaat Consultancy &Training; Luis Herrera, Consultant; Terry Hewins,Land Registry; Emma Jones, APMG PRINCE2Chief Examiner; Nigel Jones, AJS; HowardJoseph, Home Office; Ravi Joshi, Action ForChildren; Hans Kemper, APMG (Netherlands);Eddie Kilkelly, ILX Group plc; Lawrie Kirk, TannerJames Management Consultants (Australia);Wieslaw Kosieradzki, P2Ware; Eddie Lamont,Lothian & Borders Police; Tony Levene, QualityProjects; Martin Lewis, Lucid IT; David Lillicrap,London Borough of Ealing; Steve Livingstone,BNFL; Tim Lulham, Network Rail; Maria Maltby,Charnwood Borough Council; Dusty Miller, SunMicrosystems Ltd; Trevor Mirams, Parity; AdrianNewton, Quorum ICT; Bruce Nicholls, BryanCave; Helen Nicoll, NHS; Chris Price, HighwaysAgency; G. Raghunandan, Satyam ComputerServices Ltd; Geoff Rankins, Goal ProfessionalServices Pty Ltd; Lizz Robb, Yellowhouse.net ptyLtd; Graham Robertson, Serco; Eileen Roden, PMProfessional Learning; Philip Rushbrook, CabinetOffice; Ian Santry, Home Office; Andrew Schuster,Department of Health; Noel Scott, Symantec;John Sherwood, Highways Agency; Joy Shewring,APMG (USA); Jay M. Siegelaub, Impact StrategiesLLC; Raed M. Skaf, Oger Systems Ltd; Tim Sneller,Southend-on-Sea Borough Council; Rod Sowden,Aspire Europe Ltd; Phil Stephensen-Payne, RemarcGroup; Rob Sucher, Armstrong Webb; MarkSutton, SCOLL Methods Ltd; Ian Thomas, LibertyNetwork Consultancy; Dot Tudor, TCC; Bram deVuyst, Getronics Consulting Management Services;Jens Wandel, United Nations DevelopmentProgramme; Geoff Ward, APMG PRINCE2examiner; Sheryl Ward, Skandia; Peter Weaver,Corte-grande; David Whelbourn, Xwave solutionsinc; Stephen Wierzbicki, Bristol ManagementCentre; Jorn Wigh, APMG (Denmark); GeraldWilliams, Projectlabs; Philip Wilson, Cabinet OfficeManaging Successful Projects withPRINCE2 pilot groupThe British Council; Capital Coast District HealthBoard; Department of Labour (New Zealand);Fishserve; Metropolitan Police; Ministry ofEconomic Development (New Zealand); Ministryof Education (New Zealand); StaffordshireMetropolitan Borough Council; Standard Bank;Suffolk County Council; Sun Microsystems Ltd;Vietnamese Academy of Social Sciences.

Conventions used in this manualThroughout this manual, the following terms usetitle case: PRINCE2 themes PRINCE2 processes PRINCE2 roles Defined management productsActivities within PRINCE2 processes will alwaysbe referred to using the same key words orphrases, and are not otherwise distinguished,as they should be evident from their context.For example, ’The Project Board will give ad hocdirection in these circumstances.’Abbreviations and acronyms have largely beenavoided; however, where they are used, they willbe spelt out in full on first use.Key points are illustrated like this:A PRINCE2 project has continued businessjustification.Example techniques are illustrated like this:Example of a prioritization technique –MoSCoWEach acceptance criterion is rated as eitherMust have, Should have, Could have or Won’thave for now (MoSCoW).All the ’Must have’ and ’Should have’acceptance criteria should be mutuallyachievable.

Introduction1

1 Introduction1.1 The purpose of this manualPRINCE2 (Projects in a Controlled Environment) is astructured project management method based onexperience drawn from thousands of projects – andfrom the contributions of countless project sponsors,Project Managers, project teams, academics, trainersand consultants. This manual is designed: For entry-level project management personnelwishing to learn about project managementgenerally and the PRINCE2 method in particular For experienced Project Managers andpersonnel who wish to learn about the PRINCE2method As a detailed reference source for PRINCE2practitioners As a source of information on PRINCE2 formanagers considering whether to adopt themethod.The manual covers the questions frequently askedby people involved in project management andsupport roles. These questions include:can be introduced to best effect for theorganization.As the pace of change (technology, business, social,regulatory etc.) accelerates, and the penalties offailing to adapt to change become more evident,the focus of management attention is inevitablymoving to achieve a balance between business asusual and business change.Projects are the means by which we introducechange – and, while many of the skills requiredare the same, there are some crucial differencesbetween managing business as usual andmanaging project work.1.3 What makes projects different?A project is a temporary organization that iscreated for the purpose of delivering one ormore business products according to an agreedBusiness Case. What does the Project Manager do?There are a number of characteristics of projectwork that distinguish it from business as usual: What do I do if things don’t go to plan? Change Projects are the means by which we What’s expected of me? What decisions am I expected to make?introduce change What information do I need or must I supply? Temporary As the definition above states, Who should I look to for support? Forprojects are temporary in nature. Once thedesired change has been implemented, businessas usual resumes (in its new form) and the needfor the project is removed. Projects should havea defined start and a defined end Cross-functional Projects involve a team ofpeople with different skills working together(on a temporary basis) to introduce a changethat will impact others outside the team.Projects often cross the normal functionaldivisions within an organization and sometimesspan entirely different organizations. Thisfrequently causes stresses and strains bothwithin organizations and between, for example,customers and suppliers. Each has a differentperspective and motivation for getting involvedin the changedirection? How can I tailor the use of PRINCE2 for myproject?1.2 The importance of projectsA key challenge for organizations in today’s worldis to succeed in balancing two parallel, competingimperatives: To maintain current business operations– profitability, service quality, customerrelationships, brand loyalty, productivity, marketconfidence etc. What we term ’business as usual’ To transform business operations in order tosurvive and compete in the future – lookingforward and deciding how business change

4 Introduction Unique Every project is unique. An organizationmay undertake many similar projects, andestablish a familiar, proven pattern of projectactivity, but each one will be unique in someway: a different team, a different customer, adifferent location. All these factors combine tomake every project unique Uncertainty Clearly, the characteristics alreadylisted will introduce threats and opportunitiesover and above those we typically encounterin the course of business as usual. Projects aremore risky.1.4 Why have a projectmanagement method?Project management is the planning, delegating,monitoring and control of all aspects of theproject, and the motivation of those involved,to achieve the project objectives within theexpected performance targets for time, cost,quality, scope, benefits and risks.It is the development of the project’s deliverables(known as products in PRINCE2) that deliver theproject’s results. A new house is completed bycreating drawings, foundations, floors, walls,windows, a roof, plumbing, wiring and connectedservices. None of this is project management – sowhy do we need project management at all? Thepurpose of project management is to keep controlover the specialist work required to create theproject’s products or, to continue with the houseanalogy, to make sure the roofing contractordoesn’t arrive before the walls are built.Additionally, given that projects are the meansby which we introduce business change, andthat project work entails a higher degree ofrisk than other business activity, it follows thatimplementing a secure, consistent, well-provenapproach to project management is a valuablebusiness investment.1.5 Introducing PRINCE2PRINCE2 is a non-proprietary method and hasemerged worldwide as one of the most widelyaccepted methods for managing projects. Thisis largely due to the fact that PRINCE2 is trulygeneric: it can be applied to any project regardlessof project scale, type, organization, geography orculture.PRINCE2 achieves this by isolating the managementaspects of project work from the specialistcontributions, such as design, construction etc.The specialist aspects of any type of project areeasily integrated with the PRINCE2 method and,used alongside PRINCE2, provide a secure overallframework for the project work.Because PRINCE2 is generic and b

through managing projects successfully and consistently. This is where the PRINCE2 project management method adds real value, as the globally recognized standard for delivering successful projects. 9780113310593 ISBN 978--11-331059-3 www.tso.co.uk Managing Successful Projects with PRINCE2TM 5909_P2Managing_V0_7.indd 1 15/5/09 14:42:36