PRINCE2 7 Foundation

Learner
Workbook

Official Training Materials

 Unlocking your Contents
potential to
About this material 6

Modules

achieve more 1. Introduction 10

2. Overview of PRINCE2 Project Management 18

3. People 56

4. Organizing 80

5. Starting up a project and initiating a project 104

Welcome to the Learner Workbook for the PRINCE2® 7 Foundation 6. Business case 122
Official Training Materials. 7. Plans 138
The Official Training Materials for our courses enhance the learning experience for 8. Quality 160
both trainers and learners, enabling high quality and effective delivery of training.
9. Risk 174
PeopleCert products combine the knowledge and experience of experts from around
the world. 10. Controlling a stage and managing product delivery 196

Our courses use that knowledge to transform learners from beginner to practitioner, 11. Managing a stage boundary 212
utilizing real-world experience, product expertise, and years of training knowledge to
12. Issues 222
bring the topic alive.
13. Progress 238
Consequently, learners will develop a solid foundation on which to develop their
businesses and improve their careers. 14. Closing a project 260

15. Directing a project 270

16. Course review 282

Powering
Best
Practice

Published by PeopleCert International Ltd

ISBN: 978-9925-34-467-3 (Digital)
Published in Cyprus
Publication printed in Greece or reproduced electronically in Greece
Copyright © 2023 PeopleCert International Ltd.

All rights reserved. No part of this publication may be reproduced or transmitted in any form and by any means (electronic, photocopying, recording or otherwise)
except as permitted in writing by PeopleCert International Ltd. Enquiries for permission to reproduce, transmit or use for any purpose this material should be directed
to the publisher.

Disclaimer Circumstances may dictate that your trainer decides to deliver the
This publication is designed to provide helpful information to the reader. Although every care has been taken by PeopleCert International Ltd in the preparation of this
publication, no representation or warranty (express or implied) is given by PeopleCert International Ltd as publisher with respect as to the completeness, accuracy,
reliability, suitability or availability of the information contained within it and neither shall PeopleCert International Ltd be responsible or liable for any loss or damage
modules or sub-topics in a different order. These modules relate to
whatsoever (indicatively but not limited to, special, indirect, consequential) arising or resulting of virtue of information, instructions or advice contained within this
publication. the PRINCE2 Foundation syllabus and to the content of the PRINCE2
First edition PeopleCert International copyright © 2023 (v1.1 - Sep 2023)
7 Official Book. You should study this Official Book before, and
during, the training course and before you sit the examination.
2 nal Ltd.
PRINCE2® 7 Foundation | Copyright© PeopleCert International PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 3
Contents
Appendix 1 – Handouts/activity sheets 294

Scenario Booklet 296

Module 1 What makes a good project? 300

Module 2 W
 hat questions do you need to ask to check project viability? 301

Module 3 Project stakeholders 302

Module 3 Communication management approach 303

Module 4 Suggested project team 304

Module 5 Starting up a project 305

Module 6 The business case 306

Module 7 Plans 307

Module 8 Quality specifications in NowByou 308

Module 9 Identifying and analysing risks 309

Module 10 Controlling a stage activities 310

Module 11 Checklist template 311

Module 12 Identifying issues 312

Module 13 Quiz – Matching terms 314

Module 13 PRINCE2 documents 316

Module 14 Preparing for a planned closure 317

Module 15 Quiz – Processes and activities 318

Module 15 Project board activities 320

Appendix 2 – Resources 322

Syllabus 324

Sample papers with answers and rationales 332

Index 410

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About The Learner Workbook has been

designed to support you in the
PRINCE2 Foundation training and to
help you prepare for the examination.

this material
It has been developed to reinforce
learning and add value to your course
experience.
It includes copies of the slides with
notes for further explanation, activity
and quiz worksheets, sample papers
with answers and rationales, as
well as other valuable resources
that will enhance your learning and
understanding of the material.
Do not forget to use the Official Book
during the course, as it provides
further information on the modules
explored in the Learner Workbook.
The Syllabus provided at the end of
the Workbook will help you identify
the sections of the Οfficial Βook
referenced throughout the material.
To help you identify what is core
content and what is extended content,
the module slide decks feature colour-
coded borders. The slides that feature
a teal border are core content, and
those with a grey border are optional
extended content such as activities
and quizzes that will allow you test your
knowledge.
This course is for anyone who is preparing to sit the
PRINCE2 Foundation certificate examination. The
PRINCE2® Foundation Information icons and visual aids
goal is to provide you with a practical understanding examination
of the key concepts, common language, principles,
themes, and processes that enable successful The PRINCE2 Foundation level introduces the
project management. PRINCE2 method. The Foundation certification is Objectives
also a prerequisite for the Practitioner certification.
Aims of the course The examination is designed to assess whether you
can demonstrate sufficient recall and understanding Timed activity

The aim of this course is to enable you to gain a of the PRINCE2, as described in the syllabus.
pass mark in the PRINCE2 Foundation certification. Two sample Foundation papers are available for
In order to pass the exam, you will need to: you to practice during the course. These will help Discuss/reflect/activity

• know and understand the PRINCE2 method well you to become confident in your understanding
enough to be able to work effectively with, or as a of PRINCE2, and familiarize you with the style and
member of, a project management team working structure of the exams. Think about/question and answer
within an environment supporting PRINCE2 Take advantage of the mock exams and set yourself
• recall the common language and key concepts of up for success! Mock exams are one of the best
PRINCE2 ways to engage in practice and tackle exam anxiety. Key learning points
You will sit a one-hour examination. All questions
• gain an overall understanding of how to manage a
are multiple choice and there is only one correct
PRINCE2 project.
answer per question.
Detailed PRINCE2 practice
Remember, this is a closed-book exam, so you must
not have any notes or resources available.
You will need to answer 36 out of 60 Review multiple-choice question
questions correctly to pass.
You can always use the Take2 resit option, which is
available at a fraction of the original exam price, if
you require another attempt. The slides that feature a teal border are core content

The slides that feature a grey border are optional extended

content

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Module 1
Introduction
Introduction

Introduction
Module 1

Module 1
Introduction

The contents of the Official Training Materials are listed on this slide. Apart from the Introduction, this course includes the following modules:
1. Overview of PRINCE2® project management
2. People
3. Organizing
4. Starting up and initiating a project
5. Business case
6. Plans
7. Quality
8. Risk
9. Controlling a stage and managing product delivery
10. Managing a stage boundary
11. Issues
12. Progress
13. Closing a project
14. Directing a project
15. Course review
The use of the Official Book PRINCE2 7 Managing Successful Projects is vital for both the
learning and the examination process, so please do not forget to reference it and read
the respective sections for more details on the subjects presented.

Notes Notes

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Introduction

Introduction
Module 1

Module 1
PRINCE2 is a globally recognized project management method with over a million certified
professionals working in 150 countries.
PRINCE2 is tried and tested. For 25 years, it has been continually developed and refined
through consultation with project management professionals to reflect their real-life
experiences.
People become qualified in PRINCE2 because it helps organizations to understand the
principles, practices, and processes of PRINCE2. It provides a universal language that
unites the project team with other stakeholders, regardless of language and geographical
location.
PeopleCert owns the copyright and has a range of PRINCE2 Official Books, such as:
• Managing Successful Projects with PRINCE2
• Effective Project Management; The PRINCE2 method (US version)
• PRINCE2 Agile.
Licensed trainers and consultants, PeopleCert’s Accredited training organizations (ATOs)
offer PRINCE2 training courses for all the certification levels or you can self-study.
PeopleCert is the IP owner of the Global Best Practice portfolio and administers the
exams.
PRINCE2: Foundation and Practitioner are the two main levels of the PRINCE2 project
management certification scheme. There is also the PRINCE2 Agile® certification
scheme which includes the PRINCE2 Agile Foundation and PRINCE2 Agile Practitioner
qualifications.

Notes Notes

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Introduction

Introduction
Module 1

Module 1
Activity

This training course is an introduction to PRINCE2. It includes discussions to help you Consider some of the successful projects you have participated in. What made them
understand the different topics; short quizzes to check that you recall the information successful?
from the sessions; case studies where you will apply learned knowledge; sample test
questions throughout the sessions, so you become familiar with the test format; and
self-study including reading relevant parts of the PRINCE2 7 Official Book or reviewing
notes.

Recap the key points that have been covered in the introduction. Consider what makes a good project. You may want to think about some of the elements
included on the slide’s mind map and your answer to the previous slide.

Notes Notes

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Module 2
Overview of PRINCE2
Project Management
 Overview of PRINCE2 Project Management
project management

project management
Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
This slide outlines the key syllabus topics that will be covered in this session. You will find In this session, you will learn the PRINCE2 definition and characteristics of a project,
similar slides throughout the course. and what makes a project a PRINCE2 project. You will learn the features and benefits
of PRINCE2. Then, you will learn about the project manager role, aspects of project
performance that must be managed, PRINCE2 principles and its integrated elements,
the PRINCE2 journey, and the customer and supplier context.

This slide outlines the key syllabus topics that will be covered in this session. You will find Organizations must balance ongoing business operations with transforming ones
similar slides throughout the course. to survive and thrive. As the pace of change (technology, business, social, regulatory)
accelerates, the penalties for failing to adapt to change become more evident, and the
need to strike the right balance increases. Projects introduce change, and unlike ongoing
operations, have start/end dates and deliverables.

Notes Notes

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project management

project management
Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
Several characteristics distinguish projects from ‘business-as-usual’ work. Projects PRINCE2 can be applied to any type of project, no matter its size, environment, complexity,
introduce change and are temporary, with a defined start and end, no matter the importance, capability, or risk. Understanding people and relationships is key to project
duration. Projects should involve a multi-skilled team working cross-functionally. Each management, and people are placed at the centre of the project, whether they are
project will be unique (different teams, customers, products, locations, and so on). working on the project or affected by it. A PRINCE2 project follows seven principles
Projects always introduce uncertainty: threats and opportunities not encountered that provide a framework of good practice. The seven practices describe aspects of
during an organization’s usual business. project management that must be applied consistently throughout a project. The seven
processes describe the stages of a project lifecycle. The PRINCE2 method can be tailored
to the project context to suit the situation in which it will be used.
Each of these will be covered in more detail.

Two broad topics not in scope for PRINCE2. Specialist aspects are not included as
PRINCE2 is generic, so it excludes industry or type-specific activity. Detailed techniques
are not described in PRINCE2 (things like critical path analysis in planning, estimating,
risk identification, and earned value analysis) as these are well-documented elsewhere.

Notes Notes

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project management

project management
Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
There are various features and benefits of PRINCE2: There are also numerous benefits of PRINCE2 for an individual. You will gain a globally
recognized certification, know how to start, manage the steps, and close a project,
Proven: based on established and proven practice and governance for project
learn common project management technology, know how to structure a project,
management
improve your career prospects, improve your standing within your organization
Universal: can be applied to any project, of any scale, and easily implemented alongside and clearly understand your role as a project manager.
specialist, industry-specific models (such as engineering models or development
lifecycles)
Flexible: can be tailored to meet the specific needs of the organizations involved
Common language and concepts: widely recognized and provides a common
vocabulary for all participants, which encourages consistency and the ability to reuse
project assets, facilitate staff mobility, and reduce the impact of personnel changes or
handovers
Outcome-focused: ensures that project participants focus on the viability of the project
in relation to its business case objectives, rather than simply seeing the completion of
the project as an end in itself, which ensures that stakeholders (including sponsors and
resource providers) are properly represented in planning and decision-making
Increased organizational maturity: promotes learning from project experience and
continual improvement in organizations.
Part of an integrated suite of methods: PRINCE2 is designed to work with other
PeopleCert guides on programme management and risk management.

The typical characteristics of a project can result in common challenges such as

ambiguity, resource availability, and keeping stakeholders informed. The purpose of
project management is to address these by reducing and managing ambiguity through
uniting the parties involved and clarifying objectives and working practices to achieve the
project objectives within expected performance targets.

Notes Notes

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project management

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Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
Would this be considered a project? Would this be considered a project?

Would this be considered a project?

Notes Notes

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project management

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Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
These are the seven variables that the project manager needs to control. PRINCE2 has been designed so it can work within any context including organizational
and commercial context, delivery method, sustainability requirements, and project scale.
You can understand these better by asking the following questions, for example:
Organizational context: the PRINCE2 method does not assume any specific
• Why is it important to manage costs?
organizational context, and does not require any specific organizational relationships.
To avoid overspending or missing opportunities to cut costs.
• What could happen if timescales are not managed? Commercial context: the business may have entered into a commercial relationship with
The project could overrun, leading to additional costs and customer dissatisfaction. a supplier following a formal tender to deliver products that fulfil the needs of the users
• What does quality management involve? as defined in the project’s business case. The organization delivering the project (the
It involves ensuring that the project product is fit for purpose and that it meets the supplier) will do so to satisfy a particular need identified by the business (the customer).
customer’s expectations.
The business may also divide the work into one or more elements, some of which may
• What do we mean by project scope?
require different suppliers to deliver, and other elements may be delivered by the
Scope involves determining exactly what the project will deliver. There must be
business itself.
agreement on what is (and what is not) within the scope. Delivering beyond the
scope is a common source of delays and overspend. Delivery method: the delivery method is the way in which the work of the project is to
• What does risk management involve? be delivered.
It involves identifying potential risks and planning how they might Sustainability: the business is likely to have sustainability objectives and commitments
be controlled. Managing risk keeps projects on track and maximizes benefits. that the project needs to adhere or contribute to, which will inform the project’s objectives
• Why is sustainability important? and how it is established and managed. PRINCE2 also has sustainability as one of the
Every project has an impact in some way on the environment and sustainability seven performance targets used to manage the project.
performance targets need to be set
Scale: the PRINCE2 method is flexible, so it can be simplified for small or simple projects
• Why does the project manager need to manage the project’s benefits?
or expanded for large or complex projects. The perceived scale of a project is relative to
Because the project manager needs to ensure that the project’s outcomes are
the organization.
achieved, and planned benefits are realized.
PRINCE2 is an integrated method of managing these aspects of project performance.

Notes Notes

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Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
The PRINCE2 method does not require any specific organizational relationships between These are typical delivery methods. The delivery method is the way in which the work of
the users, suppliers, and business decision-makers for the project. The users, suppliers, the project is to be delivered. The project may rely on one or more delivery methods to
and business decision-makers may all come from the same organization, or they may be create the required products.
in separate organizations with commercial agreements between them.
PRINCE2 provides the controlled environment for specialist delivery methods.

The project may be part of a programme or portfolio structure, or it may be a standalone We will now explore the remaining elements of PRINCE2.
project reporting to the business unit’s management structure, as illustrated. If part of a
programme, the project will be impacted by the programme’s approach to governance,
its structure, and its reporting requirements.

Notes Notes

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project management

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Overview of PRINCE2

Overview of PRINCE2
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Module 2
Projects need people, mainly those working on the project and those affected by the The seven core principles, which underpin a PRINCE2 project:
project. An understanding of the needs, capabilities, and motivations of the people
• Ensure continued business justification: there must be a justifiable reason for
involved and the relationships between them is crucial to how the project is established
starting the project. The justification must remain valid throughout the project. The
and managed.
business justification is usually recorded in a business plan.
• Learn from experience: lessons must be sought, recorded, and acted upon
throughout the project. Everyone involved with the project must seek lessons learned
rather than wait for someone else to provide them.
• Define roles, responsibilities, and relationships: everyone must have agreed roles
and responsibilities, know what to do and what to expect from others. The team
initiates and builds relationships with and between internal and external stakeholders.
• Manage by stages: a PRINCE2 project is planned, monitored, and controlled on a
stage-by-stage basis. These management stages are separated by decision points
made by the project board.
• Manage by exception: a project defines tolerances for each objective. PRINCE2 lists
six tolerances that can be set: time, cost, quality, scope, risk, and benefit. An issue
outside an agreed tolerance is called an ‘exception’. When an exception occurs, the
project manager sends an exception report to the project board who decide what to
do.
• Focus on products: a PRINCE2 project focuses on the definition and delivery of
products; in particular, their quality requirements. Product descriptions provide the
means to determine effort, estimates, resource requirements, dependencies, and
activity schedules.
• Tailor to suit the project: a PRINCE2 project must be tailored to suit the project’s
size, environment, complexity, importance, capability, and risk.
All other aspects of the PRINCE2 project can be adjusted, but principles cannot be
changed. All seven must be applied to be a PRINCE2 project.

Notes Notes

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Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
The PRINCE2 practices: Take a look at Figure 12.1 from Chapter 12 of the PRINCE2 7 Official Book which shows
• Business case: the purpose of the business case is to enable the project manager how each process is applied during a project lifecycle. Note the three management levels,
and the project board to judge whether the project remains desirable and achievable. which are delivering, managing, and directing. Each level has specific responsibilities and
• Organizing: this practice describes the roles and responsibilities that the PRINCE2 activities to perform at the different stages.
project management team requires to manage the project effectively. • Starting up a project: the purpose is to gather sufficient information to decide if it is
• Plans: PRINCE2 projects proceed based on a series of plans. Each plan matches the worth investing in the detailed planning of the project.
needs of people at different levels. They are the focus of communication and control • Directing a project: this runs from project start-up until its closure. The project board
throughout the project. directs the project by means of reports at various decision points.
• Quality: the purpose is to enable each team member to understand the quality • Initiating a project: this involves establishing whether there is justification to
attributes of the products and how these requirements will be delivered. proceed with the project. At this stage, a business case is developed, and resources
• Risk: this practice addresses how project management deals with uncertainty. are committed by the project board.
• Issues: this practice helps to identify, assess, and control change requests or issues • Controlling a stage: this involves the monitoring and control activities performed
that arise during the project. by the project manager. The project manager must ensure that each stage stays on
• Progress: the progress practice demonstrates how to control the project and know course and must react to unexpected issues. This process describes the day-to-day
where you are against the current plan and determines whether and how the project management of the project.
should proceed. • Managing product delivery: this ensures that the planned products are created and
delivered. This process controls the link between the project manager and the team
There will be an opportunity to complete exercises for each practice later in the course.
manager(s). The team manager(s) coordinate an area of work that will deliver one or
more products.
• Managing a stage boundary: this provides the project board with key decision
points where they can decide whether to continue with the project or close it down.
• Closing a project: this covers the project manager’s work in completing the project
either at its end or at a premature close. Here the project manager prepares
information for the project board so that they can confirm that the project may close.
Simple projects have fewer stages than longer ones. You will be able to explore each
process in more detail later in the course.

Notes Notes

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project management

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Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
The process slides contain a number of process diagrams. These process diagrams use
the conventions as shown on this slide.

Let’s take a high-level look at the PRINCE2 journey, where we can see how the processes
work together during the various stages to deliver a successful project.

Notes Notes

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Overview of PRINCE2
Module 2

Module 2
Notes Notes

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Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
Notes Notes

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Overview of PRINCE2
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Module 2
Notes Notes

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Overview of PRINCE2
Module 2

Module 2
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project management

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Overview of PRINCE2

Overview of PRINCE2
Module 2

Module 2
Tailoring requires the project board and the project manager to make proactive choices PRINCE2’s value is that it is a universal project management method that can be applied
and decisions on how PRINCE2 will be applied. to take account of the project’s context, scale or size, delivery method, stakeholder
landscape, complexity, importance, team capability, and level of risk.
When tailoring PRINCE2, it is important to remember that effective project management
requires information (but not necessarily documents) and decisions (but not necessarily The seven principles offer flexibility; they guide how the integrated elements of the
meetings). If PRINCE2 is not tailored, it is unlikely that the project management effort and method can be applied and tailored to find the best fit for the project and its context
approach would be appropriate for the needs of the project. while keeping the integrity of the method. So long as the principles are followed, PRINCE2
is being used effectively.
The project manager is responsible for tailoring and will make recommendations
having consulted relevant lessons and standards. The project board is accountable
and needs to approve the recommendations at the end of the initiation stage and every
time there is a proposed change to the approach.
How PRINCE2 will be applied and tailored for the particular project is captured in the
project initiation documentation.

Notes Notes

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project management

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Overview of PRINCE2
Module 2

Module 2
Refer to the example of a simple two-stage project which may need less detail. This slide outlines the key learning points that were covered in this module.
In the scenario used, no project brief was produced. The project management team
used the project mandate to produce a simple PID, which included:
• the justification for the project
• a basic project plan with several product descriptions
• the details of all the controls to be applied.
A daily log was used to record risks, issues, lessons, and quality results. Following approval
of the PID, there was just one more management stage. The project manager held regular
checkpoints, with verbal reporting, which enabled the production of highlight reports to
the project board.
An end project report was produced which also included the information for a lessons
report, follow-on action, recommendations, and a benefits management approach. No
stage plans, work packages, team plans, end-of-stage reports, or issue reports were
needed, as they were incorporated in other products in sufficient detail.

Notes Notes

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 Quiz

Questions:
1. Which statement describes the project context? 5. What does the ‘manage by exception’ principle enable?
A. It should be understood by stakeholders so that the principles are applied appropriately A. Decisions to be made by the right people, at the right time
project management

project management
Overview of PRINCE2

Overview of PRINCE2
B. It explains how each aspect of project management should be applied for the processes to B. The project to deliver benefits required by the business
Module 2

Module 2
be effective
C. The project team members to understand their contribution to the project
C. It guides the progression from pre-project activity through the stages of the project
D. The project team to define the scope to be delivered by the project
lifecycle
D. It ensures an understanding of the needs of stakeholders, and the relationships between
6. Which statement describes how the principles support effective project management?
them
A. They allow the project team to decide how the method should be applied on the project

2. Which is a characteristic of a project that distinguishes it from business as usual? B. They take into account industry-specific models as PRINCE2 is generic

A. Projects continue after business as usual resumes C. They rely on a common vocabulary that should be applied as defined in PRINCE2

B. Projects include ongoing management of operations D. They should be applied in the same way across projects within an organization

C. Every project will be different to previous projects

D. Project work is generally less risky than business as usual work

3. What does the ‘ensure continued business justification’ principle facilitate?

A. T
 hat the project has a business stakeholder to ensure the investment continues to be
justified
B. That the project remains desirable, viable and achievable as the project progresses
C. That products delivered by the project meet their quality requirements
D. That the PRINCE2 project management method is suited to the scale of investment

4. Which statement about the ‘define roles, responsibilities and relationships’ principle is
CORRECT?
A. The project management team should consist exclusively of internal stakeholders
B. An organization’s day-to-day management structures are likely to be suited to control the
project work
C. The project board should exclude external supplier representatives
D. Suppliers are stakeholders that can be external to the business

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 Answers:
1. Which statement describes the project context? 4. Which statement about the ‘define roles, responsibilities and relationships’ principle is
CORRECT?
A. I t should be understood by stakeholders so that the principles are applied
appropriately A. The project management team should consist exclusively of internal stakeholders

B. It explains how each aspect of project management should be applied for the processes to B. An organization’s day-to-day management structures are likely to be suited to control the
be effective project work
Directing a project and

Directing a project and

C. The project board should exclude external supplier representatives
tailoring a project

tailoring a project
C. It guides the progression from pre-project activity through the stages of the project
Module 2

Module 2
lifecycle D. Suppliers are stakeholders that can be external to the business
D. It ensures an understanding of the needs of stakeholders, and the relationships between them
D. Correct. Supplier stakeholders can be
external to the organization. “Stakeholders
A. Correct. The project context is one of the five
can be individuals or groups within or external
integrated elements of PRINCE2. It influences
to the business… stakeholders outside the
how “the principles, practices and processes are
business could be trade unions, customers,
applied by the people involved to ensure the
suppliers, communities, interest groups, banks,
method is fit for the project context.” Ref 1.2
or the media.” Ref 2.3
2. Which is a characteristic of a project that distinguishes it from business as usual?
5. What does the ‘manage by exception’ principle enable?
A. Projects continue after business as usual resumes
A. Decisions to be made by the right people, at the right time
B. Projects include ongoing management of operations
B. The project to deliver benefits required by the business
C. Every project will be different to previous projects
C. The project team members to understand their contribution to the project
D. Project work is generally less risky than business as usual work
D. The project team to define the scope to be delivered by the project
C. Correct. “Every project is unique… But each
one will differ in a certain way. This can mean a A. Correct. The ‘manage by exception’ principle
different team, customer, supplier, location, or reduces time burden for senior management
timeframe. All these factors combine to make without removing control, by ensuring
every project unique.” Ref 1.3 decisions are made at the right level in the
organization. “The implementation of ‘manage
3. What does the ‘ensure continued business justification’ principle facilitate? by exception’ provides for efficient use of
senior management time as it reduces senior
A. T
 hat the project has a business stakeholder to ensure the investment continues to be managers’ time burden without removing their
justified control. This ensures decisions are made at the
right level in the organization.” Ref 2.5
B. That the project remains desirable, viable and achievable as the project
progresses 6. Which statement describes how the principles support effective project management?
C. That products delivered by the project meet their quality requirements A. T
 hey allow the project team to decide how the method should be applied on the
project
D. That the PRINCE2 project management method is suited to the scale of investment
B. They take into account industry-specific models as PRINCE2 is generic
B. Correct. PRINCE2 requires “there must be
C. They rely on a common vocabulary that should be applied as defined in PRINCE2
a justifiable reason for starting the project,
and the justification must remain valid... D. They should be applied in the same way across projects within an organization
throughout the lifecycle of the project.” This
is the ‘ensure continued business justification’ A. Correct. The principles guide how PRINCE2
principle. Ref 2.1 can be tailored to best fit a project and its
context. “To enable PRINCE2 to be used for such
a wide range of projects, the method is flexible
in how it can be used for any given project.
Rather than prescribing what to do to align the
method to the specific project, PRINCE2 offers
guidance through principles.” Ref 2

52 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 53
 Activity
project management
Overview of PRINCE2
Module 2

Notes

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Module 3
People
 People
Module 3

Module 3
People

People
Syllabus topics covered in this module are listed in the slide. In PRINCE2, ‘People’ covers those who are working on a project and the relationships
between them, as well as those impacted by a project.
Organizations are a complex ecosystem of fluctuating relationships. Projects change
the organization, regardless of whether or not it is their primary purpose. The success
of a project will depend on how well the project establishes strong relationships with
the organizations that support its delivery, as well as how it fits into the organizational
ecosystem to deliver the change. Projects combine a unique set of people from across
the business, user, and supplier communities for a limited period of time.

People are central to project management. This module identifies stakeholders across
the project ecosystems, and explains key concepts relating to change management,
leadership, and communication to support successful projects.

Notes Notes

58 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 59
 PRINCE2 is a project management method composed of five integrated elements: The purpose of the change management approach is to establish the target
principles, people, practices, processes, and the project context. organizational state required for the project to meet its objectives together with the
means by which the business will shift from the current state and through any interim
There are three people-focused activities: Leading successful change, leading successful
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Module 3
states. It includes aspects such as descriptions and characteristics of the current, interim
teams, and communication. These are not standalone activities as they influence all
People

People
and target states and any enabling activities, resources and responsibilities.
aspects of project management.

The purpose of a project is to deliver change, which will affect people in their business as Which of these could be considered a stakeholder?
usual (BAU) activities, routines, and responsibilities. How well the change is implemented,
Projects will impact people from across the organizational ecosystem, and these are all
and therefore how well the project performs, depends on the capabilities of the project
possible stakeholders.
team, the strength of the relationships between them, and the people impacted by the
change.

Notes Notes

60 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 61
 PRINCE2 identifies three principal categories of project stakeholders (business, user, and Stakeholder buy-in is crucial to a successful project. With buy-in, stakeholders may
supplier; see Figure 3.2), although there may be a wide range of other stakeholders with support a project; without it, they may oppose it and even block its progress. Each
an interest in the project (for example, government, regulator, or unions). stakeholder stands to gain or lose as a result of project delivery. And they can either see
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the project as something that advances or threatens their position.
People

People
At the start of a project, the project culture tends to reflect the organization’s culture. However,
a distinct project culture may emerge as it evolves. As the project progresses, key influencers
on a project may change, as do the key relationships. It is important to ensure that the shared
understanding of the project remains valid and supports the project’s evolving culture.
The ways of working should remain aligned with the way people are actually working,
with the desired project culture and with the wider organizational ecosystem which the
project interacts with.

Notes Notes

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 Projects are delivered by people in a temporary team, typically working across Dealing with the challenges to successfully achieve the project outcomes requires skills
organizational boundaries. This may lead to a number of challenges that are important in both leadership and management. What is the distinction?
to be aware of when leading a project team:
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• Although a project manager has formal authority within the tolerances set by the
People

People
project board, the actual power structure that emerges in a project does not always
reflect this.
• Due to the temporary nature of projects and the multiple reporting lines of people
working on the project, project managers often rely on their ability to influence and
motivate people
• Team members often have competing priorities for their time and attention, which
may at times conflict with the needs of the project.
• It is not unusual for members of the project team to be more senior than the project
manager, potentially causing hierarchical tension.

Notes Notes

64 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 65
 On projects, leading and motivating people to achieve the project objectives is best An effective team will require a diverse set of capabilities, competencies, and perspectives
done through collaboration across the project ecosystem, persuading, influencing,
that match the requirements of the project. Understanding the people recruited or
and co-creating with a focus on managing key relationships and seeking regular
assigned to the project is important to put actions and support in place.
feedback to ensure team members remain aligned to the project’s objectives and agree
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to joint ways of working. PRINCE2 supports building effective teams through the following management products:
People

People
Managing people: in line with ways of working is far more effective when the ways of • Project plan
working have been co-created with project team members (and stakeholders), therefore
• Project management team structure and the role descriptions
improving their willingness to be managed in line with them.
• Communication management approach
In addition to those people formally assigned to a project, there are people within the • Project initiation documentation
business who are affected by the project, but do not work within the defined project
• Product-based planning
team. They may make a direct or indirect contribution to the project. Leading people
beyond a project’s direct authority (often across organizational boundaries) requires a
degree of cultural intelligence. Cultural intelligence is the capability to relate and work
across cultures within the organizational ecosystem. You will find further detail in section
3.3.1.

Notes Notes

66 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 67
 Whether projects are delivered virtually, in person, or through a hybrid approach, the Where would you expect to record the communication management approach? Three
way in which people work with each other needs to be carefully considered, both to appropriate suggestions are shown in the slide.
optimize the use of people’s time and to build social cohesion.
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When teams are virtual, located at a distance from each other, or hybrid, building social
People

People
cohesion may need additional activities.

What channels will we use to communicate? How frequently will we communicate. The
answers to these questions constitute the basis for our communication management
approach. The communication management approach should:
• focus on listening and understanding perceptions and concerns as much as
broadcasting to allow tailoring of messaging
• involve key influencers to shape messaging and support communications.
• provide information in multiple formats for sharing and feedback
• be adapted for communication across co-located, remote and hybrid teams.

Notes Notes

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 PRINCE2 is based on seven principles, one of which is that all PRINCE2 projects must Consider each objective. In the PRINCE2 7 Official Book, review the section on People.
define roles, responsibilities, and relationships. This ensures people factors are
continually addressed throughout the project’s lifecycle.
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PRINCE2 defines seven practices that are essential aspects of project management
People

People
that must be applied continually and in parallel throughout the life of the project.
The ‘organizing’ practice explains how people organize within a temporary project
management team. In this way, it ensures that the interests of the user, supplier, and
business are represented in the project and establishes the design and development of
the project organization.
The PRINCE2 processes are organized into four layers: commissioning, directing,
managing, and delivering. People factors such as behaviours, culture, and relationships
are included in the processes, explaining how people interface between the layers.

Notes Notes

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 Quiz

Questions:
1. Which statement describes leadership on a project? 6. Which statement about capability and competency within a project is CORRECT?

A. It is best done through collaboration across the project ecosystem A. Teams should consist of members with similar capabilities and competencies

B. It is the set of shared attitudes, values and goals for the project B. Team members are likely to perform differently depending on the structure of the team

C. It is a control that takes place when a specific event occurs C. Standard roles and responsibilities should be used, focused on the project’s needs

D. It is instructing the execution of tasks in line with agreed ways of working D. Career progression of project team members is often the responsibility of the project
manager
2. Which is a definition of co-creation?
7. What is a description of a purpose of the change management approach?
A. W
 orking with key influencers to ensure the agreed ways of working are adopted by all
areas of the project ecosystem A. T
 o describe how proposals to change the project baseline should be recorded and
approved
B. Modifying any of the approved management products that are part of the project baseline
B. To describe the standards required to deliver products that meet user’s expectations
C. Ensuring decisions made at stage boundaries are informed by continued business
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justification C. To define how the business will need to operate in the future to meet the project
People

People
objectives
D. Applying management control whenever a specific event takes place
D. To describe the processes and procedures required to manage uncertainty

3. Which is NOT an aspect of leadership?

8. Which principle is being applied by the ‘people’ element when the level of confidence and trust
A. Instructing the execution of tasks in line with agreed ways of working determines the amount of delegation?
B. Motivating people to achieve a project’s objectives A. Manage by exception
C. Persuading, influencing, and co-creating with stakeholders B. Manage by stages
D. Seeking regular feedback to remain aligned to the project’s objectives C. Focus on products
D. Tailor to suit the project context
4. Which activity should be managed carefully as part of ‘leading across organizational
boundaries’, because it is likely to be performed by people outside the project team?
A. Securing funding from the business layer for the business case
B. Integrating new products into each impacted area of the business
C. Gaining commitment for the realization of benefits post-project
D. Delivering the products to the agreed quality specifications

5. Why is change management important in a project?

A. B
 ecause stakeholders should understand which organizational areas are impacted by the
project
B. Because the project products should be described and subject to change control
C. Because confidence is needed that the project can meet its objectives and continues to be
justified
D. Because user’s quality expectations of the project products should be understood

72 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 73
 Answers:
1. Which statement describes leadership on a project? 5. Why is change management important in a project?
A. It is best done through collaboration across the project ecosystem A. B
 ecause stakeholders should understand which organizational areas are
impacted by the project
B. It is the set of shared attitudes, values and goals for the project
B. Because the project products should be described and subject to change control
C. It is a control that takes place when a specific event occurs
C. Because confidence is needed that the project can meet its objectives and continues to be
D. It is instructing the execution of tasks in line with agreed ways of working
justified
A. Correct. Leadership “on projects this is best D. Because user’s quality expectations of the project products should be understood
done through collaboration across the project
ecosystem.” Ref. 3.3 A. Correct. “In determining the level of
detail to capture in the change management
2. Which is a definition of co-creation? approach, it is worth considering; the skills
A. W
 orking with key influencers to ensure the agreed ways of working are adopted and capabilities required during and after the
transition from current to target state; which
by all areas of the project ecosystem
areas of the organizational ecosystem are
B. Modifying any of the approved management products that are part of the project baseline likely to be impacted by the project; the key
relationships to be considered; the evolving
C. Ensuring decisions made at stage boundaries are informed by continued business culture, how best to transition.” Ref 3.2.1
justification
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Module 3
6. Which statement about capability and competency within a project is CORRECT?
People

People
D. Applying management control whenever a specific event takes place
A. Teams should consist of members with similar capabilities and competencies
A. Correct. The definition of co-creation is “A
specific form of collaboration involving users B. Team members are likely to perform differently depending on the structure of
and key influencers in the design of products the team
and agreed ways of working to ensure they
are adopted by the project and organizational C. Standard roles and responsibilities should be used, focused on the project’s needs
ecosystems.” Ref 3.3 D. Career progression of project team members is often the responsibility of the project manager
3. Which is NOT an aspect of leadership? B. Correct. “Even when people technically have
A. Instructing the execution of tasks in line with agreed ways of working the same capabilities and competencies, they
are likely to perform the same role differently.
B. Motivating people to achieve a project’s objectives Sometimes, the same person may perform
differently depending on who they are working
C. Persuading, influencing, and co-creating with stakeholders with.” Ref 3.3.2
D. Seeking regular feedback to remain aligned to the project’s objectives
7. What is a description of a purpose of the change management approach?
A. Correct. This is not an aspect of leadership. A. T
 o describe how proposals to change the project baseline should be recorded and
The definition of management is “instructing
approved
the execution of tasks in line with agreed ways
of working.” Ref 3.3 B. To describe the standards required to deliver products that meet user’s expectations

4. Which activity should be managed carefully as part of ‘leading across organizational C. To define how the business will need to operate in the future to meet the project
boundaries’, because it is likely to be performed by people outside the project team? objectives
A. Securing funding from the business layer for the business case D. To describe the processes and procedures required to manage uncertainty
B. Integrating new products into each impacted area of the business
C. Correct. The purpose of the change
C. Gaining commitment for the realization of benefits post-project management approach is “to establish the
target organizational state required for the
D. Delivering the products to the agreed quality specifications project to meet its objectives together with the
means by which the business will shift from the
Β. Correct. “... people within the business current state and through any interim states.”
who are affected by the project but do not Ref 3.2.1
work within the defined project team” may
contribute by “integrating new products into
their area of the organization.” Ref 3.3.1

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 Activity 1
8. Which principle is being applied by the ‘people’ element when the level of confidence and trust
determines the amount of delegation?
A. Manage by exception
B. Manage by stages
C. Focus on products
D. Tailor to suit the project context
A. Correct. The ‘manage by exception’ principle
is applied by the ‘people’ element by recognizing
that “the extent of delegation is often
dependent on the level of confidence and trust
that exists in the key relationships”. Ref 3.5.1
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Module 3
People

People
Read the NowByou scenario and consider the potential stakeholders outside of the
project team. This task aims to identify the stakeholders and the role they may play in the
project. Consider the profiles of the named staff.

Use the activity sheet in your Learner Workbook to analyse the stakeholders in NowByou.

Notes

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 Activity 2
Module 3
People

Continuing with the NowByou scenario, this task aims to develop a high-level
communication approach. Refer to the previous activity, the scenario, your notes and
Chapter 3 of the book.

This slide provides a suggested list of considerations for a communication approach.

Notes

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Module 4
Organizing
 Organizing

Syllabus topics covered in this module are listed in the slide. The PRINCE2 practices describe aspects of project management that must be continually
addressed as the project progresses through its lifecycle.
Module 4

Module 4
Organizing

Organizing
Organizing is one of the seven PRINCE2 practices. This module defines the project’s
structure and accountability and aims to help you to understand who needs to be
included on a project management team and what their roles will be.

Notes Notes

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 It is expected that the PRINCE2 method will be applied and tailored to ensure it is fit for There are two management products that are relevant to the majority of the PRINCE2
purpose for the project’s context. This will include the way the PRINCE2 practices are practices: the project initiation documentation and project log.
applied.
Project Initiation Documentation (PID): comprises the package of information
The PRINCE2 practices are designed to help the project management team apply and developed and compiled during initiation to gain authorization to proceed with the
tailor the method, principally through a suite of management approaches (such as the project, and it provides the basis for its ongoing management.
benefits management approach). Each management approach defines the procedures,
Project log: maintains a live record of project activities and progress. It captures a wide
techniques, and standards to be applied and the responsibilities for that aspect of project
range of project activities and progress information, such as issues and risks.
management to be effective.
Contextual factors such as importance, risk, and urgency of the project will influence the
level of control required, which will determine the degree of formality and frequency of
monitoring, reviewing, reporting, and decision-making.
All seven practices should be applied in a project. However, they vary according to the
Module 4

Module 4
Organizing

Organizing
scale, risk, the people and organizations involved, and the complexity or simplicity of the
project concerned.

Notes Notes

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 The project initiation documentation gives the direction and scope of the project and (along The project log is dynamic in that it contains the current and historic record of project
with the stage plan) forms the ‘contract’ between the project manager and the project board. It activities and progress.
is a living document and should always reflect the current status.
High-level content
The three primary uses of the project initiation documentation are to:
Project logs and registers:
• ensure that the project has a sound basis before asking the project board to make any
• issue register
major commitment to the project
• act as a base document against which the project board and project manager can assess
• lessons log
progress, issues, and ongoing viability questions • product register
• provide a single source of reference about the project so that people joining the • quality register
‘temporary organization’ can quickly and easily discover what the project is about and how • risk register
it is being managed. • daily log of other information actions and events.
High-Level content Common data for each log entry:
• Project definition: explains what the project needs to achieve and should include: • unique identifier
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• date logged
Organizing

Organizing
background context, project objectives and desired outcomes, project scope (inclusions
and exclusions), constraints and assumptions, the user(s) and any other interested parties, • logged by
and interfaces • date updated
• Project approach: defines the choice of solution and delivery method that will be used • status
in the project to deliver the business option selected from the business case, considering • classification (where needed)
the operational environment into which the solution must fit • details.
• Business case: describes the justification for the project and the selected business option
based on estimated costs, risks, and benefits
• Project management team structure: a chart showing who will be involved with the project
• Role descriptions: describe the roles of those in the project management team
• Management approaches: the procedures, techniques, and standards to be applied and
the responsibilities for: change management, commercial management, communication
management, data management, issue management, quality management, risk
management, and sustainability management
• Project plan: describes how and when the project’s objectives are to be achieved by
showing the major products, activities, resources, and people required on the project;
provides a baseline against which to monitor the project’s progress
• Tailoring of PRINCE2: a summary of how PRINCE2 is tailored for the project; for example,
any changes of terminology.

Notes Notes

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 There is likely to be a wide range of stakeholders with an interest in and an ability to have The products of a project should provide benefits to a defined set of users who support
an impact on a project (such as government, regulators, and special interest groups). both defining the requirements of the product and ensuring these requirements are
Nonetheless, the PRINCE2 method focuses on three principal categories of project met. Users can sit within the business as end users, be impacted by the project, or have
stakeholders (business, user, and supplier) and includes them in the governance and a role in operating or maintaining the products. Users can also sit outside of the business
management arrangements for the project. Business, user and supplier interests are as end users or be impacted by the outputs of the project. PRINCE2 defines a senior user
brought together on the project board. They need to work together to make a successful
role to represent user interests on the project.
project. In the next section, we will look at these elements in more detail.
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Organizing

Organizing
Projects are created to meet a business need, which needs to be continuously justified Projects require people with the necessary skills and knowledge to collaborate to deliver
as value for money throughout the lifetime of the project. PRINCE2 defines a project the products. These people may come from within the organization, or external suppliers
executive role to represent this viewpoint on the project. may be used for their skills and knowledge. PRINCE2 defines a senior supplier role to
represent supplier interest on the project.

Notes Notes

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 There are different roles at each of the four organizational levels: The PRINCE2 method requires that certain roles (with associated responsibilities) are
fulfilled on every project. As long as the responsibilities are fully allocated, the roles can
Commissioning (the business layer): responsible for providing the project mandate,
be shared or combined, within certain limits, to align with the skills and capabilities of the
identifying the executive, defining the project level tolerances within which the project
project team and the project’s needs.
board will work, and determining whether to authorize any potential breach of a project
level tolerance.
Directing: the project board has representations from the business, user, and supplier
communities and is accountable for the success of the project. It is also responsible for
the overall direction and management of the project within the constraints established
by the commissioning party.
Managing: the project manager is responsible for the day-to-day management of the
project within the constraints established by the project board.
Delivering: team managers and members are responsible for the day-to-day
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Organizing

Organizing
management and decision-making for their element of the project within the constraints
established by the project manager, co-creating where required with other team
members from across the project ecosystem.

In a successful team, business, user and supplier stakeholder interests are represented.
Responsibilities are defined. Project roles are reviewed throughout the project,
and an effective approach to manage communication flow is established. Note that
communication management should be defined as covered in the People module.

Notes Notes

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 All PRINCE2 projects must have a project board comprising the project executive, senior Delivery depends on the size and complexity of the project. The team manager role may
user, and senior supplier roles. On smaller and less complex projects, the role of the be assigned to the project manager (for example, on a small project) or to a separate
project executive can be combined with the role of the senior user or the senior supplier.
person, who is accountable to the project manager.
It is not recommended to combine the senior user and senior supplier roles to avoid
conflicts of interest in decision-making and ensure that the perspectives and interests
of the user and supplier communities are adequately represented on the project. The
project board has authority and responsibility for the project within the project tolerances
set by the business, often captured in a project mandate. They are responsible for
creating the right environment for the project to succeed.
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Organizing

Organizing
How would you define a project manager’s role? Create a mind map of some ideas. Two other important roles may be assigned in different ways.
Project assurance: subject to who has the knowledge, skills, and capacity to support the
project team, the assurance tasks can be undertaken by the board member themselves,
appointed from the wider business, or selected from an external party. Where the project
assurance roles are delegated, the project board member remains accountable.
Project support: can help with integration across the project ecosystem, but must be
kept separate from project assurance roles to maintain the independence of assurance.

Notes Notes

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 Roles and responsibilities must be defined for the project management team. Projects A number of people aspects, such as culture, collaboration and relationships, can be
involve people. No amount of scheduling or control will help without the right people. addressed by proactive organizational design, leading to effective project teams. PRINCE2
defines a five-step organizational design and development procedure:
Projects must have an explicit project management team structure. Everyone involved
in the project must know the expectations of them and others. Roles can be shared or 1. Understand organizational ecosystem: this is necessary to successfully design
combined if necessary. Effective communication between roles should be planned and the project organization and determine how the project ecosystem will develop as
agreed upon. a distinct entity from the organizational ecosystem, with alignment and an effective
interface where required.
2. Design project ecosystem: organizing work and people to achieve the project’s
objectives includes determining the project team structure, people and resources
required, working practices, behaviours and culture.
3. Develop the project ecosystem: involves implementing the project organizational
design and adapting it as the project progresses in response to changing project
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Organizing

Organizing
needs, team members and relationships.
4. Manage changes to project ecosystem: it is critical to have clear feedback loops
established to determine whether there are any capability or capacity gaps or
relational issues to address.
5. Transition project into organizational ecosystem: as at the start, it is important to
understand the organizational ecosystem that the project products and people will
be transitioning into at the close of the project and to incorporate lessons learned.

The work breakdown structure is a representation of the hierarchy of work to be done

during a project, which is typically represented visually. It is most useful when there are
multiple work packages.
If a single work package is being used in the project, it is best that it does not include both
internal and external team members.

Notes Notes

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 These management products are specific to the organizing practice and form part of the Consider each objective. In the PRINCE2 7 Official Book, review the section on the
project initiation documentation. organization practice. You can also review your notes.
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Organizing

Organizing
In what way would the principles be applied in the organizing practice?
Here are some examples. More detail can be found in Table 6.5.

Notes Notes

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 Quiz

Questions: Answers:
1. Which principle is being applied by the ‘organizing’ practice when actioning this feedback? 1. Which principle is being applied by the ‘organizing’ practice when actioning this feedback?
A. Learn from experience A. Learn from experience
B. Define roles, responsibilities, and relationships B. Define roles, responsibilities, and relationships
C. Manage by stages C. Manage by stages
D. Tailor to suit the project D. Tailor to suit the project

A. Correct. The ‘learn from experience’ principle

2. Which management product should specify individual accountability for sustainability targets? is applied by the ‘organizing’ practice by “using
lessons to inform the project management
A. Role descriptions team structure, work breakdown structure,
B. Project management team structure and a healthy project ecosystem.” This results
in “the right people are in the right roles at the
C. Product description right time to deliver the project.” Ref 6.7 tab 6.5

D. Business case
2. Which management product should specify individual accountability for sustainability targets?
A. Role descriptions
3. What is defined as having the authority to direct the project within the remit set by the
business? B. Project management team structure

A. Project manager C. Product description

B. Project executive D. Business case

A. Correct. Role descriptions describe “the roles
C. Project management team
of those in the project management team and
D. Project board their specific responsibilities.” This should
include specify accountability for sustainability
Module 4

Module 4
Organizing

Organizing
targets. Ref 6.5
4. How should the senior user fulfil their responsibility for continued realization of benefits post-
project?
3. What is defined as having the authority to direct the project within the remit set by the
A. By representing the work needed in a hierarchy to help organize the project business?
B. By ensuring commitment from people in the user community to adopting the new A. Project manager
products
B. Project executive
C. By defining how to assure the continued justification of the project
C. Project management team
D. By ensuring the technical integrity of the project products delivered to the users
D. Project board
D. Correct. The project board is defined as
5. A new team member has just joined the project team and will be going on a site visit. In which “Accountable to the business for the success of
step of the organizational design and development technique should this occur? the project and has the authority to direct the
project within the remit set by the business.”
A. Develop the project ecosystem Ref 6.2.1
B. Understand the organizational ecosystem
C. Design the project ecosystem
D. Manage the ongoing changes to the project ecosystem

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 Activity
4. How should the senior user fulfil their responsibility for continued realization of benefits
post-project?
A. By representing the work needed in a hierarchy to help organize the project
B. By ensuring commitment from people in the user community to adopting the
new products
C. By defining how to assure the continued justification of the project
D. By ensuring the technical integrity of the project products delivered to the users

B. Correct. “The senior user must ensure

sufficient ongoing commitment from people
in the user community to support these
activities, in particular where there is a longer-
term commitment beyond the lifespan of the
project such, as the realization of benefits.” Ref
Appendix B – senior user - overview

5. A new team member has just joined the project team and will be going on a site visit. In which
step of the organizational design and development technique should this occur? Consider the employees and stakeholders in NowByou. This task aims to describe the
roles and responsibilities of different parts of the project management team. Consider
A. Develop the project ecosystem
the skills and experience of the people identified on the next slide.
B. Understand the organizational ecosystem
C. Design the project ecosystem
D. Manage the ongoing changes to the project ecosystem

A. Correct. During the ‘develop the project

ecosystem’ step, “the project ecosystem will
Module 4

Module 4
need ongoing development in response to
Organizing

Organizing
changing project needs, team members and
their emerging relationships, ensuring the
project is set up to deliver its objectives and
to continuously improve. The development
activities may include: onboarding people to
the project, for example, a site visit, induction,
certification.” Ref 6.3.1.3

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 This slide suggests an appropriate project management team.
Module 4
Organizing

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Module 5
Starting up a project and
initiating a project
 Starting up a project and initiating a project

These are the syllabus requirements for this section of the course. Recall the seven PRINCE2 processes. Starting up a project is the first stage.

Starting up a project and

Starting up a project and

initiating a project
initiating a project

Module 5
Module 5

The main aim of this and the next module is to ensure that you understand two important The purpose of starting up a project is to ensure that time is not wasted and that only viable projects
processes in PRINCE2: starting up a project and initiating a project, and the differences are approved. Starting up a project involves identifying whether the project is worth initiating. The
between them. An additional aim of this module is to communicate key points about the decision to start the project must be explicit, as the activities within the process of starting up a
project happen before this decision. The purpose of the process of starting up a project is to prevent
project brief.
poorly conceived ideas from ever being initiated. As such, starting up a project is a lighter process
compared to the more detailed and thorough process of initiating a project.

Notes Notes

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 Business justification: initiates the project, as documented in an outline business case. Project mandate: the information that triggers the project. The project mandate provides
the terms of reference and should contain information to identify the prospective
All the necessary authorities exist for initiation.
executive of the project board. This will be developed into the project brief.
Sufficient information is available to define and confirm the scope of the project in a
Appoint the executive and project manager: if the project is part of a programme, the
brief.
programme should provide the brief and appoint some board members.
Evaluate the project delivery methods and select an approach.
Consultation: the preparation of the outline business case and the assembling of the
Identify a project team and appoint individuals undertaking project initiation planning project brief, which are parallel and iterative activities, require regular and frequent
work and/or significant project management roles. interaction and consultation between the project manager, the project board members,
Avoid wasting time: initiating a project based on unsound assumptions regarding and other stakeholders.
scope, timescales, constraints, and so on.

Starting up a project and

Starting up a project and

initiating a project
initiating a project

Module 5
Module 5

Notes Notes

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 Initiating a project

The key objectives are to understand the purpose and process for this stage, and to The purpose of the initiating a project process is to establish solid project foundations,
explore the PID in more detail. enable the organization to understand the work, and deliver the product before
committing to a significant spend.
This process ensures that everyone understands the cost and time commitment involved
in a project and allows stakeholders to assess the project’s validity.

Starting up a project and

Starting up a project and

initiating a project
initiating a project

Module 5
Module 5

Recall the seven PRINCE2 processes. Starting up and initiating a project are two of the
first processes.

Notes Notes

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 The objectives of the initiating a project process ensure a common understanding of: Initiating a project prepares the foundations for achieving a successful project. All parties
must be clear on what the project is intended to achieve, why it is needed, how the
Reasons: justification for the project, benefits expected, and associated risks
outcome is to be achieved, and what their responsibilities are.
Scope: the necessary work and the deliverable
Agree tailoring requirements: tailoring is part of the project initiation document and
Delivery: how, when, and at what cost the product will be delivered creates initial project controls.
Decisions: who makes the project decisions Agree the management approaches: the management approaches are derived from
Quality: how quality will be achieved business strategies, standards, or practices that the project needs to comply with and the
users’ quality and sustainability expectations captured in the project product description.
Baselines: how baselines will be established and controlled
Establish project controls: the level and mechanism of control needs to be agreed to
Risks: how risks, issues, and changes will be identified, assessed, and controlled
enable the project to be managed effectively and efficiently in a way that is consistent
Progress: how progress will be monitored and controlled with the scale, risks, complexity, and importance of the project.

Information: who needs information, in what format, and at what time Prepare the project plan: establish and uphold the timescale, resource, and people
requirements in the project plan.
Application: how the project applies business policies, methods, and guidance
Prepare the full business case: the outline business case produced during project
start-up needs to be updated to reflect the estimated time and costs, and the aggregated
risks.
Assemble the project initiation documentation: the project manager will be creating
the suite of management products required for the level of control specified by the
project board.

Starting up a project and

Starting up a project and

initiating a project
initiating a project

Module 5
Module 5

Notes Notes

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 Assembling the project initiation documentation, either for agreement by key stakeholders
or for guidance for those involved in the project, is the last activity of initiating a project.
This version of the PID will be used later as a means to compare the project’s actual
performance against the original forecasts that formed the basis of approval. This creates
a baseline that can be used throughout the project. The project manager is responsible
for producing the project initiation documentation.
The PID is an aggregation of many of the management products created during initiation
and used to gain authorization for the project to proceed. It is not necessarily a single
document, but a collection of various forms of information (such as flip charts or data in
software tools).

Starting up a project and

Starting up a project and

initiating a project
initiating a project

Module 5
Module 5

Notes Notes

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 Quiz

Questions: Answers:
1. Which is a description of a purpose of the ‘initiating a project’ process? 1. Which is a description of a purpose of the ‘initiating a project’ process?
A. To define how long it will take for the project to deliver what is required to gain acceptance A. T
 o define how long it will take for the project to deliver what is required to gain
acceptance
B. To enable control between the project manager and team managers
B. To enable control between the project manager and team managers
C. To review, at a high level, whether the project will add value to an organization
C. To review, at a high level, whether the project will add value to an organization
D. To assess whether a project has been delivered on time and that it has nothing more to
contribute D. To assess whether a project has been delivered on time and that it has nothing more to
contribute
A. Correct. “The purpose of the process
2. Which is a purpose of the ‘starting up a project’ process?
of initiating a project is to establish solid
A. To assess whether a project is likely to be valuable to the organization foundations for the project, enabling the
business to understand the work that needs to
B. To analyse the work required before committing to implement the project initiation be done to deliver the project product before
documentation committing to any significant expenditure or
resources.” The project product is defined as
C. To provide the opportunity for the users to confirm that they accept the project product
“What the project must deliver in order to gain
D. To delegate the management of the project in a controlled way acceptance.” Ref 15.1, Glossary

3. Which process should ensure that an organization does not proceed to establish solid
foundations for unsuitable projects?
A. Starting up a project 2. Which is a purpose of the ‘starting up a project’ process?

B. Directing a project A. To assess whether a project is likely to be valuable to the organization

C. Initiating a project B. To analyse the work required before committing to implement the project initiation
documentation
D. Managing a stage boundary
C. To provide the opportunity for the users to confirm that they accept the project product
D. To delegate the management of the project in a controlled way
4. Which TWO are objectives of the ‘initiating a project’ process?
1. To ensure that the project team focuses on delivering the approved products in the stage plan A. Correct. “The purpose of the process of
2. To ensure that the project team is authorized to proceed with the initiation stage starting up a project is to ensure that the
prerequisites for initiating a project established
3. To understand how changes to the agreed project products will be approved by answering the question, ‘do we have a viable

Starting up a project and

Starting up a project and

4. To plan and estimate the costs for the work to deliver the products and worthwhile project?’ The decision to start

initiating a project
initiating a project

the project must be explicit; the activities

Module 5
Module 5

A. 1 and 2 within the process of starting up a project

B. 2 and 3 happen before this decision.” Ref 13.1

C. 3 and 4
D. 1 and 4

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 Activity
3. Which process should ensure that an organization does not proceed to establish solid
foundations for unsuitable projects?
A. Starting up a project
B. Directing a project
C. Initiating a project
D. Managing a stage boundary
A. Correct. “The purpose of the process
of starting up a project is as much about
preventing poorly conceived ideas from ever
being initiated as it is about approving viable
projects. As such, starting up a project is a
lighter process compared to the more detailed
and thorough process of initiating a project.
The aim is to do the minimum necessary to
decide whether it is worthwhile to even initiate
the project.” Ref 13.1

4. Which TWO are objectives of the ‘initiating a project’ process?

1. To ensure that the project team focuses on delivering the approved products in the stage plan
2. To ensure that the project team is authorized to proceed with the initiation stage
3. To understand how changes to the agreed project products will be approved
4. To plan and estimate the costs for the work to deliver the products
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 1 and 4

C. Correct. 3. “The objectives of the process of

initiating a project are to ensure that there is a
common understanding of: …how baselines will
be established and controlled.” Ref 15.2

Starting up a project and

Starting up a project and

initiating a project
initiating a project

Module 5
Module 5

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Starting up a project and
initiating a project
Module 5

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Module 6
Business case
 Business case

These are the syllabus requirements for this section of the course. 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 viability of the business case and
the business objectives and benefits being sought? Business justification is not only about costs
but also about understanding the value of a project. It is the perceived benefits or importance of
the outcomes in proportion to the resources deployed to achieve them. Business justification is
about selecting an approach that offers the best overall value.

The business case practice is one of the seven PRINCE2 practices. The main aim of this module PRINCE2 projects deliver outputs in the form of products which are used to facilitate
is to ensure that you understand that a business case is used to document the justification for change in an organization or for organizations. These changes create capabilities that
the undertaking of a project, based on the estimated costs against the anticipated benefits to lead to outcomes. The outcomes allow the organization(s) to realize the benefits that
be gained and offset by any associated risks. The business case should outline how and when are explained in the business case for the project. Outcomes that are perceived as
the anticipated benefits can be measured. It is developed when starting up a project and is negative by one or more stakeholders are called dis-benefits.
reviewed and updated during all the processes of the project journey.

Notes Notes
Business case

Business case
Module 6

Module 6
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 The business case is developed as an outline at the start of a project based on information Forecast benefits are checked through the project (at a minimum at the end of every stage),
from the project mandate. It must have sufficient information to enable the project and if they fall outside of set tolerances, they should be escalated to the appropriate level for
board to confirm the business justification and authorize project initiation. PRINCE2 review and action. Dis-benefits are expected consequences of an activity, whereas a risk is
uses the term ‘outline business case’ for this initial justification. uncertain and may never materialize. For example, a decision to merge two elements of an
organization into a new site may have benefits (such as better joint working), costs (such as
In most cases, the project costs, timescales, products, risks, and targets will not be
expanding one of the two sites), and dis-benefits (such as limited public transport options to
sufficiently understood at this point to provide a robust justification of the entire project.
the new site). Dis-benefits need to be valued and incorporated into the investment appraisal.
Therefore, the outline business case will need further development and refinement, and
as the project is planned in more detail and information becomes clearer, the outline
business case is developed into a more detailed business case. This is called a ‘full
business case’ in PRINCE2.
The business case may be refined further as the project progresses and actual costs
are incurred, forecast benefits are potentially achieved, and information is further
understood.

Figure 5.3 shows the development path of the business case through the project lifecycle.
• develop: means to explore options and get the right information upon which
investment appraisal decisions can be made
• check: means to assess whether the project is (still) worthwhile
• maintain: means to keep the business case updated with actual progress and
current forecasts (including forecast benefits)
• confirm: means to assess whether the intended benefits have been (or will be)
realized. Confirming benefits will mostly take place after the project has been closed,
Notes
although benefits may be realized during the project when products are delivered
Business case

Business case
Module 6

Module 6
and released iteratively.

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 The purpose of the business case is to document the business justification for undertaking Project brief: provides a full and firm foundation for project initiation
a project, based on the estimated costs against the expected benefits to be gained and
Business case: documents the business justification for the project, based on estimated
offset by any associated risks. It should outline how and when the expected benefits can
costs against anticipated benefits and offset by associated risks
be measured.
Benefits management approach: defines the benefits management actions and
benefits reviews to be established to ensure outcomes are achieved and benefits realized.
Sustainability management approach: defines the actions, reviews, and controls
established to ensure sustainability performance targets for the project are achieved.

Notes Notes
Business case

Business case
Module 6

Module 6
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 PRINCE2 requires that two products are produced and maintained for the business case In what way would the principles be applied in the business case practice?
practice:
Here are some examples. More detail can be found in Table 5.2.
• business case
• benefits management approach.

The purpose of the sustainability management approach is to define the actions, reviews, Consider each objective. In the PRINCE2 7 Official Book, review the section on the
and controls that will be established to ensure that sustainability performance targets for business case practice. You can also review your notes.
the project are achieved.

Notes Notes
Business case

Business case
Module 6

Module 6
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 Quiz

Questions: Answers:
1. What is a purpose of the business case practice? 1. What is a purpose of the business case practice?
A. To enable the project executive to decide whether to continue with the project A. To enable the project executive to decide whether to continue with the project
B. To identify the user’s quality expectations to meet the business need B. To identify the user’s quality expectations to meet the business need
C. To prevent the planned outcomes from causing dis-benefits to the business C. To prevent the planned outcomes from causing dis-benefits to the business
D. To define the products and how and when they will be delivered to satisfy the business D. To define the products and how and when they will be delivered to satisfy the business
case case

A. Correct. “The purpose of the business case

2. Which should be used to justify whether the project should be progressed? practice is to establish mechanisms to judge
whether the project is (and remains) desirable,
A. Project brief and benefits management approach viable and achievable as a means to support
B. Highlight report and benefits management approach decision-making in its continued investment.” Ref 5.1

C. Business case and highlight report 2. Which should be used to justify whether the project should be progressed?
D. Project brief and business case A. Project brief and benefits management approach
B. Highlight report and benefits management approach
3. Identify the missing word(s) in the following sentence:
C. Business case and highlight report
A business objective is the measurable outcomes that demonstrate progress in relation to
___________ and to which the project should contribute. D. Project brief and business case

A. organizations’ strategy D. Correct. “The purpose of the project brief is

used to provide a full and firm foundation for
B. the outputs desired by the business the initiation of the project” and the business
case is used “to document the business
C. the benefits desired by the business justification for undertaking a project.” And,
D. the business justification hence, justify progressing a project further.
Ref 5.5

4. A government department has a target to reduce its carbon footprint by 8-12%. How should 3. Identify the missing word(s) in the following sentence:
this requirement be captured?
A business objective is the measurable outcomes that demonstrate progress in relation to
A. As a benefits tolerance ___________ and to which the project should contribute.
B. As a sustainability tolerance A. organizations’ strategy
C. As outcomes to be achieved B. the outputs desired by the business
D. As a quality tolerance C. the benefits desired by the business
D. the business justification
5. During a stage, the project manager recorded a new risk on the risk register.
A. Correct. A business objective is “the
In which step of the business case management technique should its impact on the business measurable outcomes that demonstrate
case be assessed? progress in relation to the organization’s
strategy and to which the project should
A. Develop
contribute.” Ref 5.1
B. Check
C. Maintain
Business case

Business case
Module 6

Module 6
D. Confirm

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 Activity
4. A government department has a target to reduce its carbon footprint by 8-12%. How should
this requirement be captured?
A. As a benefits tolerance
B. As a sustainability tolerance
C. As outcomes to be achieved
D. As a quality tolerance
B. Correct. As part of the ‘aligning products to
business objectives and tolerances’ element,
sustainability targets should be set. “Ultimately,
the outcomes and benefits to be achieved from
the project need to align with and contribute
to the business objectives. These may include
environmental, social and governance (ESG)
goals set by the organization. The sustainability
performance targets and tolerances for the
project, documented in the sustainability
management approach, which supports the
business case, should reference and contribute
to the ESG goals of the organization.” Ref 5.2.2

5. During a stage, the project manager recorded a new risk on the risk register.
In which step of the business case management technique should its impact on the business
case be assessed?
A. Develop
B. Check
C. Maintain
D. Confirm
B. Correct. During the ‘check’ step of the
business case management technique, “the
business case may undergo further refinement
and will be updated across stages as project
costs, timescale, products, and risks are
further understood... The project manager will
also check the business case: when assessing
progress, risks and issues, to determine their
impact on business justification.” Ref 5.3.1.2

Show these slides as additional suggestions for the business case.

Notes
Business case

Business case
Module 6

Module 6
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 Notes
Business case
Module 6

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Module 7
Plans
 Module 7

Module 7
Plans
Plans

Plans
These are the syllabus requirements for this section of the course. The key purpose of a plan is to facilitate communication and control through answering
these key questions.

The plans practice is one of the seven PRINCE2 practices. The main aim of this module Create a mind-map of what your idea of a plan is.
is to ensure that you understand the importance of planning in exercising control. Plans
facilitate communication and control by defining the means of delivering the products.
It is important to note that the other practices depend on effective planning before and
during each project.

Notes Notes

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 Module 7

Module 7
Plans

Plans
All PRINCE2 plans have the same fundamental structure. What differs is the purpose, Consider the following points:
scope, and level of detail. Each type of plan has its own definition:
Project plan: created during the initiating a project process and updated during the
Project plan: a high-level plan showing the major products of the project and when, managing a stage boundary process.
how, and at what cost they will be delivered. The purpose of the project plan is to provide
Initiation stage plan: more detailed than the project plan. Created during the starting
confidence to the project board that the project will fulfil its business case.
up of a project process. All subsequent stage plans are produced near the end of the
Stage plans: a detailed plan used as the basis for project management control throughout current management stage when preparing for the next management stage, and using
a stage. A stage plan is prepared for each stage. The stage plan is similar to the project lessons from previous stages.
plan in structure, but each element is divided to the level of detail required for day-to-day
Team plan: an optional level of plan used as the basis for team management control
control by the project manager.
when executing work packages.
Team plans: a plan used as the basis for organizing and controlling the work of a team
Exception plan: if approved, the exception plan replaces the plan that is in exception
when executing a work package. Team plans are optional in PRINCE2. Their requirements
and becomes the new baselined plan. It may require a change to the project plan.
and extent will be determined by the size and complexity of the project and the number
of resources involved. Team plans are created in the managing product delivery process.
Exception plans: a plan that follows an exception report and explains how the project
will respond to the exception within the stage. Must be produced to show the actions
required to recover from or avoid a forecast deviation from agreed tolerances in the
project plan or a stage plan.

Notes Notes

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 Module 7

Module 7
Plans

Plans
The manage by stage principle states that a PRINCE2 project is planned, monitored and • Stages do not overlap: instead, they partition the project by introducing stop-go
controlled, management stage by management stage. decision points. By not overlapping, they enable the project management team and
project board to review progress and assess whether the project has continued
business justification and therefore should proceed to the next stage.
• Project work organized into logical groups of work packages: depending on the
delivery method being used, the set of specialist skills required, or the relationships
of the organizations involved.
• Work packages may run in parallel and overlap
• Good practice to avoid work packages spanning stage boundaries: decisions
taken at stage boundaries could lead to repeated work or waste relating to work
in progress. Where work packages span a stage boundary, such as work packages
involving procurement of long lead items, their status will need to be reviewed as part
of the process of managing a stage boundary.

Notes Notes

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 Module 7

Module 7
Plans

Plans
Many projects are driven by various constraints, such as schedules and resources. The The procedure for preparing a plan covers all types of plan.
PRINCE2 technique for planning helps the project management team to set tolerances
that balance the need for the project board to maintain effective control. At the same
time, it enables the project manager or team manager to achieve efficient delivery.

PRINCE2 is focused on products, not activity. Once the products are identified, the The procedure for preparing a plan covers all types of plan.
activities required to produce these products are determined.
Defining and analysing products: includes writing a project product description;
Some benefits of this approach are shown here. creating a product breakdown structure; writing product descriptions and creating a
product flow diagram.

Notes Notes

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 Module 7

Module 7
Plans

Plans
Organizing work packages: when the delivery method is decided, the delivery activities Preparing a schedule: the sequencing, interrelationships, and duration of work packages
involved in each product can be identified and organized into work packages. Each work and their associated tasks are captured in a schedule. All work packages for a stage must
package should combine closely related people, resources, and delivery activities. be included in the schedule for the stage.

Preparing estimates: project managers and team managers always plan using estimates Preparing the budget: the budget should include costs of the activities, risk budget,
of resources, people, duration of activities, cost of people and resources, benefits and change budget and cost tolerances.
risk.

Notes Notes

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 Module 7

Module 7
Plans

Plans
Documenting the plan: the PRINCE2 planning procedure creates several management A product breakdown structure is useful for describing the products to be delivered and
products that constitute the plan. The schedule and budget may be maintained in their essential components. Each product is divided into its component elements in a
separate systems or files. Meanwhile, the product breakdown structure, product flow hierarchical manner, and the requirements for those elements are collected.
diagram, and work breakdown structure may be maintained in a document, spreadsheet,
As an example, in the Louistown City Council project the major product is the shopping
or graphical planning tool.
mall and its surrounding pathways, plaza, and gardens. The shopping mall can be further
divided into the enabling works, the mall, the mall tenants, and operational readiness.
The product breakdown structure can also show external products which the project is
dependent on. In this case, this is the connections to the shopping mall comprising the
revised public transport routes and timetable, and the park and ride scheme.

Analysing risks: plans need to be analysed for risks throughout the planning procedure
as the plan develops.

Notes Notes

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 Module 7

Module 7
Plans

Plans
Plan: provides a proposal that outlines the what, where, when, how, and by whom the In what way would the principles be applied in the plans practice?
project as a whole (or a subset of its activities) will be performed. When approved, a plan
Here are some examples. More detail can be found in Table 7.2.
provides a baseline against which progress can be measured and issues assessed.
Project product description: describes the project’s major products and intended
purpose, including the user’s quality expectations and the acceptance criteria and
acceptance methods for the project. It is created in the process of starting up a project
and refined during the process of initiating a project.
Work package description: describes how one or more products will be produced and
delivered. It is used to pass responsibility for work formally to a team manager or team
member.

Consider each objective. In the PRINCE2 7 Official Book, review the section on the plans
practice. You can also review your notes.

Notes Notes

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 Module 7

Module 7
Quiz
Plans

Plans
Questions:
1. What is the purpose of the plans practice? 5. The project manager needs to capture the user’s quality expectations. In which step
of the planning technique should the expectations be captured?
A. T
 o enable the project manager to control the project by defining who will deliver the
A. Defining and analysing the products
products, and when to deliver them
B. Organizing work packages
B. To enable the project executive to monitor whether the project is desirable, viable and
achievable and should continue C. Preparing estimates
C. To allow the project executive to define which role in the project management team is D. Preparing a schedule
responsible for producing the plan
D. To allow the project manager to plan how to respond to uncertainties and who should
action the agreed responses

2. The business strategy has changed, requiring the scope of the project to be increased beyond
the tolerances that have been agreed by the business layer. Which plan should be produced
to include this change?
A. Project plan
B. Stage plan
C. Team plan
D. Exception plan

3. Identify the missing word in the following sentence:

When planning, there are at least two types of __________relevant to a project: internal and
external.
A. dependency
B. plan
C. exception
D. scope

4. How should the project plan typically accommodate an iterative-incremental project?

A. By having multiple delivery stages that allow acceptance criteria to be refined as the
products are delivered
B. By ensuring that product descriptions are complete before the project is approved by the
project board
C. By breaking down the work of the stage to the level of detail required for day-to-day
control by the project manager
D. By dividing the project into two stages to enable iterative delivery of products during the
project

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 Module 7

Module 7
Plans

Plans
Answers:
1. What is the purpose of the plans practice? 4. How should the project plan typically accommodate an iterative-incremental project?

A. T
 o enable the project manager to control the project by defining who will deliver A. B
 y having multiple delivery stages that allow acceptance criteria to be refined as
the products, and when to deliver them the products are delivered

B. To enable the project executive to monitor whether the project is desirable, viable and B. By ensuring that product descriptions are complete before the project is approved by the
achievable and should continue project board

C. To allow the project executive to define which role in the project management team is C. By breaking down the work of the stage to the level of detail required for day-to-day
responsible for producing the plan control by the project manager

D. To allow the project manager to plan how to respond to uncertainties and who should D. By dividing the project into two stages to enable iterative delivery of products during the
action the agreed responses project

A. Correct. “The purpose of the plans practice A. Correct. As part of defining ‘the number
is to facilitate communication and control of stages, “For an iterative-incremental
by defining the products to be delivered (the project, the project plan may provide multiple
‘what’) and the means to deliver them (the delivery stages in which the quality and
‘who’, the ‘how’, the ‘where’, and estimates of acceptance criteria are refined in parallel with
the ‘when’ and for how much) to satisfy the development of the required products through
project business case (the ‘why’).” Ref 7.1 the use of a product backlog.” Ref 7.2.3.1

2. The business strategy has changed, requiring the scope of the project to be increased beyond 5. The project manager needs to capture the user’s quality expectations. In which step of the
the tolerances that have been agreed by the business layer. Which plan should be produced planning technique should the expectations be captured?
to include this change? A. Defining and analysing the products
A. Project plan B. Organizing work packages
B. Stage plan C. Preparing estimates
C. Team plan D. Preparing a schedule
D. Exception plan
D. Correct. “When a project or stage exceeds (or A. Correct. “In the process of starting up a
is anticipated to exceed) an agreed tolerance, project, the major products or outcomes,
a project manager will raise an exception along with key quality requirements, are
report to the project board. If the project documented in the project product description.”
board decides to address the exception within This happens when writing the project product
the stage, the project management team will description in the ‘defining and analysing
prepare an exception plan that covers how products’ step. Ref 7.3.1.1.1
directed actions will be performed.” Ref 7.2.2.4

3. Identify the missing word in the following sentence:

When planning, there are at least two types of __________relevant to a project: internal and
external.
A. dependency
B. plan
C. exception
D. scope
A. Correct. It is dependency. “A dependency
means that one product is dependent on
another. There are at least two types of
dependency relevant to a project: internal and
external.” Ref 7.3.1.2

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 Module 7

Module 7
Activity
Plans

Plans
Refer to the project product description in the Learner Workbook. Complete the This is an example of a suggested product breakdown structure for NowByou.
breakdown for the NowByou project. Refer to the NowByou scenario as well.

Remember the example of a product breakdown structure discussed earlier in the

session.

Notes Notes

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Module 8
Quality
 Quality
Module 8

Module 8
Quality

Quality
These are the syllabus requirements for this section of the course. Here are some key words help you to remember the purpose of the quality practice.
Quality should be built into everything, not just tested at the end of the project.

The quality practice is one of the seven PRINCE2 practices. The main aim of this module The terminology on the left-hand side is integral to the quality practice. The definitions
is to ensure that you understand that the products created by the project must fulfil the on the right-hand side do not currently match with the definitions. Please reorder the
expected expectations and benefits. It is important to note that quality and planning definitions to match the key terms.
practices are strongly related, as quality needs to be incorporated into the project
These are the correct terms and definitions.
planning stages.

Notes Notes

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 Module 8

Module 8
Quality

Quality
The terminology on the left-hand side is integral to the quality practice. The definitions Quality management focuses on these three elements. More detail on each is shown on
on the right-hand side do not currently match with the definitions. Please reorder the the next three slides:
definitions to match the key terms.
Quality planning: involves identifying the major products of the project and documenting
These are the correct terms and definitions. them in terms of user’s expectations and acceptance criteria. It includes developing the
quality management approach and obtaining board approval for these as a baseline.
Quality control: involves implementing the quality management approach, assessing
quality issues and obtaining product acceptance.
Quality assurance: involves ensuring techniques are sufficient to confirm that quality
requirements are met.

The principle of focusing on products is central to the PRINCE2 approach to quality.

PRINCE2 uses the term requirements to describe the expectations, needs, and desires
of a project’s stakeholders for the project’s products, outcomes, and benefits. No project
can ever satisfy all requirements. This is why requirements need to be prioritized and
agreed in a controlled manner.
The benefits of a product-based quality approach are highlighted here.

Notes Notes

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 Module 8

Module 8
Quality

Quality
Product descriptions and the quality management approach are two key outcomes from An effective quality assurance function is engaged throughout the project lifecycle, from
the quality planning process. start-up to closing.
It is important not to confuse quality assurance with project assurance. Project assurance
is the responsibility of the project board and is used to confirm if the project is being
conducted correctly.

Project quality control is a series of activities for each product usually involving a number PRINCE2 includes a three-step quality management procedure (planning quality,
of techniques. controlling quality, and accepting products) integrated around the principle of focusing
on products.
It begins when a product description is approved and recorded in the product register.

Notes Notes

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 Module 8

Module 8
Quality

Quality
Product description: describes a product’s purpose, composition, derivation, and In what way would the principles be applied in the quality practice?
quality specifications. It is produced at the planning phase as soon as possible after the
Here are some examples. More detail can be found in Table 8.3.
need for the product is identified.
Quality management approach: describes the quality techniques and standards to be
applied and the roles and responsibilities for achieving the required quality specifications
and acceptance criteria during a project.
Quality register: summarizes all quality management activities that are planned or have
occurred, and is used for reviewing progress.
Product register: lists all products required of a plan and the status of those products.

Consider each objective. In the PRINCE2 7 Official Book, review the section on the quality
practice. You can also review your notes.

Notes Notes

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 Quiz

Questions: Answers:
1. What is a purpose of the quality practice? 1. What is a purpose of the quality practice?
A. T
 o enable control by defining how the project will deliver the products to satisfy the A. T
 o enable control by defining how the project will deliver the products to satisfy the
business case business case
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Module 8
B. To document the user requirements and ensure they remain unchanged throughout the B. To document the user requirements and ensure they remain unchanged throughout the
Quality

Quality
project project
C. To identify how the project will ensure that the user’s requirements of the project’s C. To identify how the project will ensure that the user’s requirements of the
products are met project’s products are met
D. To agree to deliver products that were not part of the project’s business justification D. To agree to deliver products that were not part of the project’s business justification

C. Correct. “The purpose of the quality practice

2. The team manager needs to record that a product needs to be tested but has not yet been is to document the user’s requirements of the
approved. Where should this information be recorded? project’s products and to establish the means
by which they will be met”. In addition, “quality
A. Quality register
is concerned with ensuring that the project’s
B. Quality specifications products meet the user’s requirements and
expectations and enable the desired benefits to
C. Product register be realized.” Ref 8.1
D. Project product description
2. The team manager needs to record that a product needs to be tested but has not yet been
approved. Where should this information be recorded?
3. Which statement describes project assurance, rather than quality assurance? A. Quality register
A. It is independent of the project manager but not the project B. Quality specifications
B. It monitors the project’s quality control measures used to assess the project’s products C. Product register
C. It is independent of the project team and may be part of the user’s quality management D. Project product description
system
A. Correct. The quality register is used “to
D. It describes the documented expectations for the project products summarize all quality management activities
that are planned or have occurred. The quality
register is used by the project manager
4. A new requirement is identified when producing a subordinate plan. How should this be and project assurance as part of reviewing
managed? progress.” Ref 8.5
A. By preparing new product descriptions
3. Which statement describes project assurance, rather than quality assurance?
B. By using the issue management approach
A. It is independent of the project manager but not the project
C. By updating the project product description
B. It monitors the project’s quality control measures used to assess the project’s products
D. By updating the quality management approach
C. It is independent of the project team and may be part of the user’s quality management
system
5. A system has been tested and the user needs to take ownership of the system. In which step
of the quality management technique should this occur? D. It describes the documented expectations for the project products

A. Gathering user inputs A. Correct. “Project assurance is independent

B. Accepting products of the project manager but not the project.”
Ref 8.2.3
C. Describing the quality management approach
D. Controlling quality

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 Activity
4. A new requirement is identified when producing a subordinate plan. How should this be
managed?
A. By preparing new product descriptions
B. By using the issue management approach
C. By updating the project product description
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Module 8
D. By updating the quality management approach
Quality

Quality
B. Correct. “Changes to the baseline project
initiation documentation arising from lower-
level planning should be addressed using the
issue management approach.” Ref 8.2.1.6

5. A system has been tested and the user needs to take ownership of the system. In which step
of the quality management technique should this occur?
A. Gathering user inputs
B. Accepting products
C. Describing the quality management approach
D. Controlling quality

B. Correct. “Acceptance of a project product

typically transfers ownership or responsibility
for the product from the project or supplier
to the project board on behalf of the user.”
Ref 8.3.1.3

Notes

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Module 9
Risk
 Risk
Module 9

Module 9
These are the syllabus requirements for this section of the course.
Risk

Risk
The risk practice is one of the seven PRINCE2 practices. As projects are about doing The key words in bold will help you remember the purpose of the risk practice (identify,
something new, the planned change introduces uncertainty and risk. The project needs assess, control uncertainty).
to know how to identify risk, how to assess this risk, and how to control this risk, as risk
may affect the project objectives.

Notes Notes

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 A risk can be: Identify and prioritize risks: techniques can be used to identify different types of risk. It
• A threat: for uncertain events that would have a negative impact on objectives. is important to provide a clear and unambiguous expression of each risk.

• An opportunity: for uncertain events that would have a positive impact on objectives. Risk cause: this should describe the source of the risk, such as the event or situation
Module 9

Module 9
that causes it. These are often referred to as risk drivers. They are not risks in themselves
Risk owner: the person who is assigned to take responsibility for responding to a risk.
Risk

Risk
but are potential trigger points for risk. These may be either internal or external to the
Risk action owner: the person who is the nominated owner of agreed actions to respond project.
to a risk. This role is also known as the risk actionee.
Risk event: this should describe the area of uncertainty in terms of the threat or the
Risk likelihood: the estimated chance that a risk will occur. Likelihood is often estimated
opportunity.
by considering the probability or frequency of occurrence of a risk.
Risk effect: this should describe the impact that the risk would have on the project
Risk probability: the estimated chance that a risk will occur. Likelihood is often estimated
objectives, should the risk materialize.
by considering the probability or frequency of occurrence of a risk.
Risk impact: the estimated effect on objectives should a risk occur. The cause, event, and effect relationship could also be expressed as either a threat or
an opportunity.
Risk proximity: how near in time a risk might occur.
Risk velocity: how quickly a risk would have an impact on objectives should it occur.
Risk exposure: the degree to which a particular objective is ‘at risk’. Risk exposure is a
neutral concept as exposure can be positive or negative.
Risk appetite: the amount and type of risk that the business is willing to take in pursuit
of its objectives.
Risk budget: a sum of money to fund specific management responses to the project’s
threats and opportunities (for example, to cover the costs of any contingent plans should
a risk materialize).
Risk tolerance: a measurable threshold to represent the tolerable range of outcomes
for each objective ‘at risk’ using the same units as for measuring performance for that
objective.
Risk response types: solutions to a predicted risk. In the PRINCE2 7 Official Book, refer
to Table 9.1 for more information.

Notes Notes

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 Risk analysis: can include qualitative and quantitative approaches. Qualitative analysis The best actions to take in response to risks will depend on the particular situation and
of a risk includes, as a minimum, assessing its probability (the chance that the risk will type of risk. Different responses may be appropriate for threats and opportunities.
occur) and its impact (the size of the effect on one or more objectives if the risk occurs).
If a threat is reduced rather than removed, the largest realistic likelihood or size of impact
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Module 9
Other qualitative assessments include proximity (how near in time it might occur) and
of the risk that remains is called the ‘residual’ risk. If the residual risk is significant, then
Risk

Risk
velocity (how quickly it would have an impact on objectives should it occur).
it may be appropriate to select more than one risk response.
Risk matrix: a useful way of plotting the set of risks and their estimations. It represents
In some cases, implementing a risk response will reduce or remove other related risks.
a situation at a specific point in time and can also be used to show trends.
It is also possible that the responses to risks will change some aspect of the project and
this may lead to secondary risks. It is essential that these are identified, assessed, and
controlled in the same way as the initially identified risk.
The risk owner is responsible for the management, monitoring, and control of all aspects
of a particular risk assigned to them, including the implementation of the selected
responses to address the threats or to maximize the opportunities. The risk action
owner owns an action to address a risk.
It is prudent to include a provision for unknown risks (those yet to be identified) in the
risk budget. The risk management approach should define the mechanisms for the
control of, and access to, this budget, to avoid it being treated as another sum of money
to spend from the project budget.

Notes Notes

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 Avoid a threat/Exploit an opportunity: this option is about making the uncertain
situation certain by removing the risk. This can often be achieved by removing the cause
of a threat or by taking advantage of an opportunity. Where costs are incurred, these
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Module 9
must be justified.
Risk

Risk
Reduce a threat/Enhance an opportunity: this option involves a definite action now to
change the probability and/or the impact of the risk. The term ‘mitigate’ is relevant when
discussing reduction of a threat.
Transfer the risk: (threat or opportunity) Transfer is an option that aims to pass part of
the risk to a third party.
Share the risk (threat or opportunity): sharing the risk is an option that is different in
nature from the transfer response. It seeks multiple parties to share the risk on a pain/
gain share basis (typically within a supply chain).
Accept the risk (threat or opportunity): the accepting option means that the
organization takes the chance that the risk will occur. In this case, the organization will
accept the effect of the risk.
Prepare contingent plans (threat or opportunity): a planned set of actions that will
be taken for each risk.

Notes Notes

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 A supportive risk culture recognizes the importance of considering risk as an important
part of decision-making.
Decision bias: is the inherent tendency for people to adopt mental shortcuts or faulty
Module 9

Module 9
thinking processes to process situations and make decisions. Decision bias is natural and
Risk

Risk
largely positive, allowing the brain to efficiently make rapid decisions every day.
Types of bias include:
Optimism bias: a mindset that drives people to discount disadvantageous risk, on the
assumption that things are likely to be successful for them.
Loss aversion: a mindset that values the avoidance of loss rather than making a gain.
Groupthink: a mindset that makes people value social cohesion in a group more than
expressing an alternative point of view or reaching the right decision.
Proximity: a mindset where situations that are closer in time are seen as riskier and
more important than those in the future.
Understanding and overcoming these are important considerations when identifying
risks and potential responses.

Notes Notes

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 The recommended risk management procedure consists of the steps: identify, assess,
plan and implement.
Identify: review the plan’s context and objectives so that threats and opportunities can
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Module 9
be identified.
Risk

Risk
Assess: prioritize risks and assess the combined risk profile.
Plan: decide on risks responses and monitoring arrangements.
Implement: establish monitoring arrangements and execute actions for priority risks or
realized risks.
Communicate: operates in parallel, as the outputs of any of the other steps may need
to be communicated to stakeholders at any point in the process.
All the steps are repeatable: when additional information becomes available, it is often
necessary to repeat earlier steps based on the new information.

Notes Notes

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 This is a full list of the responsibilities from Table 9.3. All of these roles are important to Risk management approach: describes how risk will be managed on the project.
the success of the project. This includes the specific procedures, techniques, standards, and responsibilities to be
applied.
Business layer: provides the corporate, programme management or customer risk
Module 9

Module 9
management policy and risk management process guide (or similar). Risk register: maintains a record of identified risks related to the project, including their
Risk

Risk
status and history. It is used to capture and maintain information on all the identified
Executive: already mentioned.
threats and opportunities relating to the project.
Senior user: ensures that risks to the users are identified, assessed, and controlled
(such as the impact on benefits, operational use, and maintenance).
Senior supplier: ensures that risks relating to the supplier aspects are identified,
assessed, and controlled (such as the creation of the project product).
Project manager: already mentioned.
Team manager: already mentioned.
Project assurance: already mentioned.
Project support: prepare and assist the project manager in maintaining the project’s
risk register.

What principles would these examples relate to?

More detail can be found in Table 9.4.

Notes Notes

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 Consider each objective. In the PRINCE2 7 Official Book, review the section on the risk
practice. You can also review your notes.
Module 9
Risk

Notes

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 Quiz

Questions: Answers:
1. What is a purpose of the risk practice? 1. What is a purpose of the risk practice?
A. To address concerns about standards that are to be applied to products A. To address concerns about standards that are to be applied to products
B. To identify the likelihood of a threat occurring and its possible impact on the project B. To identify the likelihood of a threat occurring and its possible impact on the project
C. To guarantee delivery of the agreed scope on time, to cost and quality C. To guarantee delivery of the agreed scope on time, to cost and quality
D. To ensure that problems are resolved before they have a chance to negatively impact the D. To ensure that problems are resolved before they have a chance to negatively impact the
project project
B. Correct. “The purpose of the risk practice is
2. Which provides the project management team with guidance on how to record threats? to identify, assess and control uncertainties
that would affect the project’s objectives, and,
A. Risk management approach as a result, improve the ability of the project
to succeed.” In addition, “A risk is measured by
B. Risk register
a combination of the likelihood of a perceived
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Module 9
C. Digital and data management approach threat or opportunity occurring and the
magnitude of its impact on objectives.” Ref 9.1
Risk

Risk
D. Work package description
2. Which provides the project management team with guidance on how to record threats?
3. Which term describes who is responsible for responding to a risk satisfactorily? A. Risk management approach
A. Risk owner B. Risk register
B. Risk action owner C. Digital and data management approach
C. Project support D. Work package description
D. Project assurance
A. Correct. The project initiation
documentation: risk management approach
4. How does loss aversion result in less effective decision-making when considering risks? describes “how risk will be managed on the
A. By valuing the need to keep what you have, rather than to get something new project. This includes the specific procedures,
techniques standards, and responsibilities to be
B. By discounting downside risk, believing that things will go according to plan applied.” Ref 9.5

C. By valuing team unity, rather than reaching the right decision

3. Which term describes who is responsible for responding to a risk satisfactorily?
D. By viewing risks that are more likely to occur soon as riskier
A. Risk owner

5. The project manager needs to understand the project environment and define how to B. Risk action owner
manage the risk on the project. In which step of the risk management technique should this C. Project support
be defined?
D. Project assurance
A. Identify
A. Correct. A risk owner is “The person who is
B. Assess assigned to take responsibility for responding
to a risk.” Ref 9.2
C. Plan
D. Implement

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 Activity
4. How does loss aversion result in less effective decision-making when considering risks?
A. By valuing the need to keep what you have, rather than to get something new
B. By discounting downside risk, believing that things will go according to plan
C. By valuing team unity, rather than reaching the right decision
D. By viewing risks that are more likely to occur soon as riskier

A. Correct. As part of risk culture “decision

bias is natural and largely positive, allowing
the brain to efficiently make rapid decisions
every day However, sometimes decision bias
can result in less effective decision-making.
There are many types of bias, for example: loss
aversion a mindset that values the avoidance of
loss rather than making a gain.” Ref 9.

5. The project manager needs to understand the project environment and define how to
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Module 9
manage the risk on the project. In which step of the risk management technique should this
be defined?
Risk

Risk
A. Identify
B. Assess
C. Plan
D. Implement
A. Correct. The ‘identify - define context and
objectives’ sub-step “obtaining information
about the project to ensure there is a common
understanding of the specific objectives that
are at risk and to formulate an appropriate risk
management approach. The following will have
an influence on the project’s risk management
approach: ... the business’ own environment,
business policies, standards, processes and
procedures.” Ref 9.3.1.1

Remember these key concepts.

Notes

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Module 10
Controlling a stage and
managing product
delivery
 Controlling a stage and managing product
delivery

These are the syllabus requirements for this section of the course.
managing product delivery

managing product delivery

Controlling a stage and

Controlling a stage and

Module 10

Module 10
This module aims to ensure that you understand how the project manager and the team Recall the PRINCE2 journey, where these two processes fit in and their management
manager should work together during two closely aligned processes ‘controlling a stage’ levels.
and ‘managing product delivery’. During the processes, the project manager and team
manager need to ensure that the products of each stage are delivered at the right time
and within agreed tolerances.

Notes Notes

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 The purpose of the process of controlling a stage is to assign work, monitor such work, The process of controlling a stage describes the project manager’s day-to-day
handle issues, report progress to the project board, and take corrective actions to ensure management of the stage; this process will be used for each stage of a project. The
that the stage remains within the tolerances set by the project board. activities within the process of managing a stage boundary will occur towards the end of
each stage, with the exception of the final stage.
Central to the ultimate success of the project is the day-to-day control of the work that
is being conducted. Throughout a management stage, this will consist of a cycle of:
• authorizing work to be done
• monitoring progress information about that work, including signing off completed
work packages
• reviewing the situation (including that for product quality) and triggering new work
ControlControlling

ControlControlling
packages
managing product delivery

managing product delivery

lingastageandmanagi

lingastageandmanagi
• observing, assessing, and dealing with issues and risks
• taking any necessary corrective action
Module 10

Module 10
• escalating risks and issues that cannot be resolved within the tolerances set by the
project board
a stage

a stage
• reporting highlights.
ngproduct

ngproduct
anddelivery

anddelivery
Objectives of controlling a stage process are to ensure that:
• Attention is focused on delivery of the management stage’s products Any movement away
from the direction and products agreed at the start of the management stage is monitored to
avoid uncontrolled change and loss of focus.
• The project management team is focused on delivery within the tolerances laid down.
• Risks and issues are kept under control.
• The business case is kept under review.
• The agreed products for the management stage meet the agreed quality expectations and
are accepted.

Notes Notes

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 The project manager controls the stage. The team manager(s) or team members execute assigned work packages (that will deliver
one or more products) and give the project manager progress updates via checkpoint
Managing work packages:
reports.
• authorize a work package
• evaluate work package status
• receive completed work packages.
Monitoring and reporting:
• evaluate the management stage status
• report highlights.
Managing issues and risks:
• capture and assess issues and risks
ControlControlling

ControlControlling
• escalate issues and risks
managing product delivery

managing product delivery

lingastageandmanagi

lingastageandmanagi
• take corrective action.
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a stage

a stage
ngproduct

ngproduct
anddelivery

anddelivery
This is the purpose of the managing product delivery process. The role of the team
manager is to coordinate an area of work that will deliver one or more of the specialist
products that form the project product.

Notes Notes

202 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 203
 The objectives of the managing product delivery process ensure that these requirements Accept a work package: the team manager accepts a work package from the project
are all met. manager and creates a team plan to manage development of the products. This is an
agreement between the project manager and the team manager as to what is to be
delivered.
Execute a work package: the team produces products, requests quality checks (and
monitors it to the requirements defined in the authorized work package), obtains
approval, and reports to project manager using the checkpoint report.
Evaluate a work package: the team manager reviews progress of the team’s work and
reports progress to the project manager for each period defined in the work package
ControlControlling

ControlControlling
description.
managing product delivery

managing product delivery

lingastageandmanagi

lingastageandmanagi
Notify work package completion: the team manager follows the procedure to deliver
the completed products, as described in work package description, informs the project
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manager on the status of delivered products and notifies that the work package is
complete.
a stage

a stage
ngproduct

ngproduct
anddelivery

anddelivery
Notes Notes

204 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 205
 Many of the activities in controlling a stage and all of the activities in managing product Description of work to be done: statement of work and associated work breakdown
delivery are built around the ‘work package’. structure
The processes work together to ensure that a stage remains within tolerances. The Team manager or person authorized: the name of the team manager or individual
project manager’s actions related to the work package are shown on the slide. The team responsible for the work package
manager ensures that products are created and delivered by the team to the project by:
Product descriptions: the product descriptions associated with the work package
• Accept: accepting and checking authorized work packages from the project
Techniques and procedures: requirements for how the work is to be done
manager.
• Execute: ensuring that the products are developed and executed in accordance with Change control requirements: arrangements for control of the project and product
any development method(s) specified in the work package. baselines that fall within scope of the work package
ControlControlling

ControlControlling
• Deliver: delivering the products to the project manager in accordance with any Constraints: restrictions or limits on the work, such as authorized work hours, safety,
managing product delivery

managing product delivery

procedures specified in the work package. and security measures
lingastageandmanagi

lingastageandmanagi
The work package defines what products are to be created and sets out any constraints Monitoring, control, and reporting: description of how the work package will be
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and requirements for the way that the work has to be carried out. monitored, controlled, and reported
a stage

a stage
Targets and tolerances: the permissible deviations for scope, cost, and time for the
ngproduct

ngproduct
work package
anddelivery

anddelivery
References: applicable references from higher-level plans
Approval: who will approve the completed products
Agreement: a record of the initial authorization and final completion of the work package
between the project manager and the team manager.

Notes Notes

206 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 207
 Quiz

Questions:
1. Which TWO are objectives of the ‘controlling a stage’ process?
1. To respond to risks and issues as they are raised
2. To plan the detailed activities for the next stage of the project
3. To define the controls for the project
4. To continually assess the business justification
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 1 and 4
Consider each objective. In the PRINCE2 7 Official Book, review the section on the
controlling a stage process. You can also review your notes.

Answers:
1. Which TWO are objectives of the ‘controlling a stage’ process?
1. To respond to risks and issues as they are raised
2. To plan the detailed activities for the next stage of the project
3. To define the controls for the project
ControlControlling

4. To continually assess the business justification

managing product delivery

managing product delivery

Controlling a stage and
lingastageandmanagi

A. 1 and 2
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B. 2 and 3
C. 3 and 4
a stage
ngproduct

D. 1 and 4
anddelivery

D. Correct.
1. “The objectives of the controlling a stage
process are to ensure that: … risks and issues
are controlled.” Ref 16.2
4. “The objectives of the controlling a stage
process are to ensure that: … the business case
is kept under review.” Ref 16.2

Notes

208 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 209
 Quiz Activity

Questions:
1. Name two objectives of controlling a stage process. (2 points)
2. Managing product delivery shows the viewpoint of the _________. (1 point)
3. Who authorizes a work package? (1 point)
4. Who executes a work package? (1 point)
5. What else does this person do? (3 points)

Answers:
1. Name two objectives of controlling a stage process. (2 points)
Any from Slide 265
2. Managing product delivery shows the viewpoint of the _________. (1 point)
Team manager
3. Who authorizes a work package? (1 point)
Project manager
4. Who executes a work package? (1 point)
Team manager
5. What else does this person do? (3 points)
Accepts a work package, evaluates a work package and notifies work package
completion
managing product delivery

managing product delivery

Controlling a stage and

Controlling a stage and

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This slide gives ideas of what daily tasks could be included in the diary while the project
manager is controlling a stage.

Notes

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Module 11
Managing a stage
boundary
 Managing a stage boundary

These are the syllabus requirements for this section of the course. The key words (in bold) are helpful to remember the purpose.
Managing a stage boundary

Managing a stage boundary

Module 11

Module 11
This module defines the managing a stage boundary process, which provides the
information to the project board so that they can decide whether to continue to the next
stage.

Notes Notes

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 Further information on the objectives of managing a stage boundary: A positive decision not to proceed is not failure. However, providing insufficient information
that prevents the project board from making an informed decision is a failure, as it may
Assure project board: that all products in the stage plan have been completed and
lead to a wrong decision or an unnecessarily delayed decision.
approved.
Prepare stage or exception plan: for the next management stage.
Review and update: the project initiation documentation.
Provide information: for the project board to assess the continuing viability of the
project.
Record information: or lessons that can help later management stages of this project
and/or other projects.
Request authorization: to start the next management stage.
For exceptions, the objectives of the process of managing a stage boundary are similar
to those listed above but include preparing an exception plan and seeking approval to
replace the project or current stage plan with the exception plan.
Managing a stage boundary

Managing a stage boundary

Module 11

Module 11
Notes Notes

216 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd. 217
 This diagram demonstrates three management stages and the connection between the Consider each objective. In the PRINCE2 7 Official Book, review the section on the
stage boundary, the stage end, and the exception plan. managing a stage boundary process. You can also review your notes.
Stage boundary: there are two different entry points for a stage boundary:
• Initiating a project
• Controlling a stage
Managing a stage boundary: at the end of each management stage, a decision needs
to be made whether to continue the project. If necessary, the project can be redirected
or stopped to avoid wasting time and money. This would lead to the implementation of
an exception process.
Evaluate the stage: the results of a management stage are reported to the project
board so that progress is clearly visible to the project management team. This activity
should happen as closely as possible to the actual end of a management stage.
Request the next stage: the project manager contacts the project board to request to
finish the current stage and to proceed to the next stage. The formal justification can be
found in the end stage report and the next stage plan or the exception plan.
Exception plans: these must be produced to show the actions required to recover from
or avoid a deviation from the agreed tolerances in the project plan or a stage plan. The
exception plan usually follows an exception report. A stage plan exception covers the
period from the present to the end of the current management stage.
Managing a stage boundary

Managing a stage boundary

Exception plans are prepared to the same level of detail as the plan they replace. If
approved, the exception plan replaces the stage plan that is in exception and becomes
Module 11

Module 11
the new baselined plan.

Notes Notes

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 Quiz Activity

Questions:
1. Which activity is performed ONLY in the ‘managing a stage boundary’ process?
A. Preparing a replacement for the current stage plan for approval by the project board
B. Constantly reviewing the business justification against the business case
C. Reporting stage progress regularly to the project board
D. Preparing the project for premature closure following project board direction

2. What is needed to perform the ‘managing a stage boundary’ process?

A. The work of the project needs to be broken down into sections
B. Each stage needs to deliver project benefits incrementally
C. The project needs to have a predictable end date
D. Every stage needs to be in exception

Answers:
1. Which activity is performed ONLY in the ‘managing a stage boundary’ process?
A. P
 reparing a replacement for the current stage plan for approval by the project
board
B. Constantly reviewing the business justification against the business case
C. Reporting stage progress regularly to the project board
D. Preparing the project for premature closure following project board direction

A. Correct. “The process of managing a stage

boundary provides a means by which an
exception procedure can be implemented.”
“For exceptions, the objectives of the process of
Managing a stage boundary

Managing a stage boundary

managing a stage boundary are similar to those
listed above but include preparing an exception
plan and seeking approval to replace the
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project or current stage plan with the exception
plan.” Ref 18.3, 18.2

2. What is needed to perform the ‘managing a stage boundary’ process?

A. The work of the project needs to be broken down into sections
B. Each stage needs to deliver project benefits incrementally
C. The project needs to have a predictable end date
D. Every stage needs to be in exception

A. Correct. “The process of managing a stage

boundary is based on dividing the project into
stages.” Ref 18.3

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Module 12
Issues
 Issues

These are the syllabus requirements for this section of the course. In PRINCE2 the changes are described as ‘issues’.

The issues practice is one of the seven PRINCE2 practices. The main aim of this module
is to ensure that you can understand the importance of the issues practice, and be able
to deal with changes that occur in the organization and in the wider environment.

Notes Notes
Module 12

Module 12
Issues

Issues
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 Issues may be raised at any time during the project by any team member or stakeholder Changes are not incorporated into the project baseline until they have been approved by
and captured in the project log. the individual or role delegated with the appropriate authority.
Request for change: this is a proposal for a change to a baseline. It is important not to judge issues before they are assessed. Change is not something to
avoid. All projects encounter changes, and they must be addressed, not ignored. The key
Example: in an organization, the senior user would like to increase the capacity of a
is to handle changes in a responsive but controlled way.
product from 100 to 150 users.
Off-specification: something that should be provided by the project, but currently is
not (or is forecast not to be). It might be a missing product or a product not meeting its
specifications.
Example: advice from a supplier that they can no longer deliver one of the products
specified by the customer.
Problem: an issue with an immediate and negative impact.
Example: advice from a team manager that one of the suppliers has gone bankrupt,
resulting in the need to identify and engage a new supplier.
Concern: an issue whose timeliness and impact need to be considered.
Business opportunity: an issue that represents unanticipated positive consequences
for the project or user organization.
An event external to the project: may impact the project in some way.

Notes Notes
Module 12

Module 12
Issues

Issues
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 Often, issues are first presented informally in conversations or communications among All projects need an appropriate approach to control changes to the project baseline.
project team members, particularly for issues that constitute a problem, concern, or The issue management approach describes the project’s change control procedure,
business opportunity. Issues should be categorized by issue type to assist assessment including how proposals to change the project baseline will be recorded and decided.
and analysis.
PRINCE2 characterizes proposals to change a project baseline as either a request for
It is good practice when assessing and categorizing issues to check whether the issue is change or an off-specification.
actually a risk. The distinction is that risks are uncertain.
A request for change: is a proposal for a change to a baseline. It must identify the
Handling problems and concerns involves judgement. Capturing too many problems management products to be changed and provide a justification.
and concerns as issues can inundate the project management team with trivial decisions
An off-specification: is a product that will not meet its quality specifications. It occurs
and distract them from the most important ones. On the other hand, project managers
mostly when a supplier fails to deliver a product that fully complies to quality specifications.
should avoid filtering or prejudging problem and concern suggestions. It is most effective
to identify issues early when they can generally be resolved within approved tolerances. A concession is an: off-specification that is accepted by the project board without
corrective action.
In some cases, the issue is an event external to the project. For example, a supplier going
out of business may force the project management team to analyse the impact and The project board: is the ultimate authority for reviewing and approving requests for
consider finding an alternative supplier. It is always advised to monitor the project’s change and off-specifications. However, the project board may delegate authority to
external environment on a regular basis. approve changes.
The project manager should ensure that delegated authority is accompanied by an
appropriate change budget from which approved changes can be delivered. The change
budget is usually an amount of money earmarked specifically to fund changes.

Notes Notes
Module 12

Module 12
Issues

Issues
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 Capture: the first step in the procedure is to undertake an initial analysis to determine The issue management approach: describes how issues will be captured and reported
the type of issue that has been raised and whether it should be managed informally or and explain how changes to the project baseline will be assessed and controlled.
formally. The project manager makes an initial assessment of the issue’s severity and
Issue register: logs all issue reports raised during the project lifecycle, their current
priority.
status, and date of closure.
Assess: the next step is to assess the issue by undertaking an impact analysis. However,
Issue report: describes the issue’s impacts on the project baseline and identifies ways to
the project manager needs to consider whether it is worthwhile doing a detailed impact
resolve the issue or address an off-specification and recommend a decision.
analysis as the duration and effort required to undertake one may itself cause a deviation
from the plan.
Note: A detailed impact analysis may include a list of all the products impacted.
Recommend: in order to propose corrective actions, a full understanding of the impact of
the issue is needed. Then, consider alternative options for responding to it and propose
a course of action to take, making the consequences of all choices clear.
Decide: the project manager may be able to resolve issues without escalating them
to the project board. For example, a minor change to an approved detailed design
document that does not affect any other products could be handled by the project
manager (if allowed in the change control approach). The change would need to be
formally recorded. Other issues may need to be escalated to the project board(or its
delegated change authority) for a decision.
Note: If technical expertise is needed, authority may be delegated.
Implement: the project manager will either:
• Take the necessary corrective action, which might include updating affected products,
work packages, plans, and registers, or
• create an exception plan for approval by the project board.
Some examples may be found in Table 10.3 of the Official Book.

Notes Notes
Module 12

Module 12
Issues

Issues
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 Consider each objective. In the PRINCE2 7 Official Book, review the section on the issues
practice. You can also review your notes.

Notes
Module 12
Issues

232 PRINCE2® 7 Foundation | Copyright© PeopleCert International Ltd.

 Quiz

Questions: Answers:
1. How does the issues practice contribute to a successful project? 1. How does the issues practice contribute to a successful project?
A. By identifying events that might positively impact the project objectives A. By identifying events that might positively impact the project objectives
B. By controlling modifications to the current approved versions of the management B. By controlling modifications to the current approved versions of the
products management products
C. By adjusting the level of approval required according to the user’s expectations C. By adjusting the level of approval required according to the user’s expectations
D. By making the uncertain situation certain by addressing its cause D. By making the uncertain situation certain by addressing its cause

Β. Correct. “The purpose of the issues practice

2. Project support needs to understand how to make changes to approved versions of the is to collect and assess issues and control
project products. Which management product should project support review? changes to the project’s baseline.” In addition,
the project baseline is defined as “The current
A. Issue management approach
approved versions of the management
B. Risk management approach products and project products that are subject
to change control.” Ref 10.1
C. Benefits management approach
2. Project support needs to understand how to make changes to approved versions of the
D. Quality management approach
project products. Which management product should project support review?
A. Issue management approach
3. What is the definition of an issue?
B. Risk management approach
A. An event relevant to the project that requires project management consideration
C. Benefits management approach
B. An uncertain event that, should it occur, will have an effect on the project A. Correct. The issue management approach
D. Quality management approach should “describe how issues will be captured
C. A description of the impact an uncertain event would have on the objectives
and reported and explain how changes to
D. A measurable threshold to represent the tolerable range of outcomes for each impacted the project baseline will be assessed and
objective controlled.” In addition, the project baseline is
defined as “The current approved versions of
the management products and project products
4. A change has been approved and needs to be implemented. Which part of the guidance for that are subject to change control.” Ref 10.5,
effective issue management should enable the change to be implemented? 10.1

A. The delegation of authority by the project for deciding on changes to the appropriate level
3. What is the definition of an issue?
B. The application of the change budget within the authorized constraints to make trade-offs
A. An event relevant to the project that requires project management consideration
C. The audit of whether the actual product status reflects the status recorded in the product
register B. An uncertain event that, should it occur, will have an effect on the project

D. The definition of an appropriate level at which products need to be baselined C. A description of the impact an uncertain event would have on the objectives
D. A measurable threshold to represent the tolerable range of outcomes for each impacted
5. An issue has been identified and its impact on the project scope needs to be understood. In objective
which step of the issue management technique should the impact be understood?
A. Correct. An issue is “an event relevant to
A. Assessing issues the project that requires project management
consideration.” Ref 10.1
B. Capturing issues
C. Deciding on issues
D. Implementing changes
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Issues

Issues
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 Activity
4. A change has been approved and needs to be implemented. Which part of the guidance for
effective issue management should enable the change to be implemented?
A. The delegation of authority by the project for deciding on changes to the appropriate level
B. The application of the change budget within the authorized constraints to make
trade-offs
C. The audit of whether the actual product status reflects the status recorded in the product
register
D. The definition of an appropriate level at which products need to be baselined

B. Correct. As part of the ‘change budget’

element of the effective guidance, “the
project manager should ensure that delegated
authority is accompanied by an appropriate
change budget from which approved changes
can be delivered. The change budget is usually
an amount of money earmarked specifically to
fund changes. However, it can also be defined
as a set of authorized constraints within which
trade-offs can be made.” It is by applying the
change budget that approved changes can be
funded and therefore implemented. Ref 10.2.5

5. An issue has been identified and its impact on the project scope needs to be understood. In
which step of the issue management technique should the impact be understood?
A. Assessing issues
B. Capturing issues
C. Deciding on issues
D. Implementing changes
A. Correct. As part of the ‘assessing issues’ step,
“when reviewing issues, the aim is to answer
two questions: Does this issue affect the
project? If so, how?” Ref 10.3.1.2

Notes
Module 12

Module 12
Issues

Issues
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Module 13
Progress
 Module 13

Module 13
Progress

Progress
Progress

These are the syllabus requirements for this section of the course. To monitor and compare actual achievements against those planned: establish
mechanisms to monitor and compare actual achievements against planned achievements.
To provide a forecast: this is for the project’s objectives and continued viability. Of
PRINCE2’s seven principles, manage by exception is particularly important to the progress
practice. An exception is a situation where a deviation is beyond agreed tolerance levels.
To control unacceptable deviations: tolerances are the permissible deviation above
and below a plan’s target for cost and time without escalating the deviation to the next
level of management. There may also be tolerances for quality, scope, benefits, and risk.

Notes Notes

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 Module 13

Module 13
Progress

Progress
These key concepts are central to progress management. A PRINCE2 project has defined tolerances for each project objective, to establish limits
of delegated authority.
Progress control involves measuring actual progress against the performance targets
of benefits, time, cost, quality, scope, sustainability, and risk. This information is used Benefits: defining target benefits in terms of ranges
to make decisions, such as whether to approve a stage or work package, whether to
Time: amount of time on target completion dates
escalate deviations, or whether to prematurely close the project, and to take actions as
required. Progress can be monitored at work package, stage, and project level. Cost: amount of planned budget
Quality: defining quality targets in terms of ranges
Scope: permitted variation of the scope of a project solution
Sustainability: limits on the agreed metrics for sustainability
Risk: limit on the aggregated value of threats
Further detail on the tolerances by level can be found in Table 11.1.

The progress management practice is based on an overarching plan-do-check-act cycle.

Effective progress management includes:
• defining management levels and tolerances for progress control
• applying two types of control (event-driven and time-driven)
• reviewing progress and lessons
• reporting progress and lessons
• forecasting remaining work
• escalating using data.

Notes Notes

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 Module 13

Module 13
Progress

Progress
The project is managed by exception between four management levels against tolerances There are different documents used for controlling and monitoring progress. Using
for the seven performance targets. controls makes it easy to notice exceptions. PRINCE2 provides two types of progress
control throughout the life of a project.
Delegating tolerances involves putting an assurance mechanism in place so that each
management level can be confident that such controls are effective. One is event-driven controls: these take place when a specific event occurs. For
example:
The business layer: sits outside the project but sets the overall requirements
and tolerance levels for the project. The three levels of management within the • The end of a management stage
project(responsible for directing, managing, and delivering) will manage and implement • The completion of the PID
within these tolerances and escalate any forecast breaches of project tolerance. • The creation of an exception report.
The project board has: overall control at a project level and will allocate tolerances for The other is time-driven controls: these take place at predefined periodic intervals. For
each management stage to the project manager. The project board can review progress example:
and decide whether to continue, change, or stop the project. During execution of the
• monthly highlight reports for the project board
project plan, if the project is likely to exceed the agreed project tolerances, then the
• weekly checkpoint reports.
deviation should be referred to the business layer by the project board in order to get a
decision on corrective action.
The project manager: has day-to-day control for a management stage within the
tolerance limits. During execution of a stage plan, if the management stage is likely to
exceed the agreed management stage tolerances, then the deviation should be referred
to the project board in order to get a decision on corrective action. This would be done
by raising an issue and an exception report.
The team manager: has control for a work package, only within the work package
tolerances agreed with the project manager. During execution of the work package, if it is
likely that the agreed tolerances will be exceeded, then the deviation should be referred
to the project manager by the team manager to decide on corrective action.

Notes Notes

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 Module 13

Module 13
Progress

Progress
To record lessons during a project is good for the organization, project team, and other
existing and future projects. Lessons are the documented information that reflect both
the positive and negative experiences of a project.
Document management systems or team collaboration systems are a useful tool in
sharing and reporting knowledge from lessons.
When should lessons be captured? Some examples include during a post-project review,
via checkpoint reports or highlight reports, when issues occur or during stakeholder one-
on-one meetings.

Daily log: a useful way of recording individual observations that when collated, may alert
the project manager to a new issue or risk.
Lessons log: used for capturing and reporting lessons when reviewing progress.
Lessons report: can be used to pass on any lessons that can be usefully applied to other
projects.
It should be noted that a register is a formal repository managed by the project manager
that requires agreement by the project board on format, composition, and use. PRINCE2
has three registers: issue register, risk register, and quality register.

Notes Notes

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 Module 13

Module 13
Progress

Progress
The level of control required and frequency of reporting may vary during the project. A fundamental component of the manage by exception principle is forecasting. An
For example, it may be influenced by the experience and capability of the project team. exception is defined as a situation where it can be forecast that a deviation beyond the
agreed tolerance levels will occur. It is not necessary or helpful to wait until that deviation
The report composition: should consider the quality, risk, and issue management
has occurred. Therefore, forecasting within projects is essential because it helps to
approaches.
identify responses to project risks, predict project outcomes, and help ensure overall
Reports may take many forms such as electronic dashboards or information snapshots, project success.
within systems or in manually generated documents or spreadsheets.
It is important to consider the performance of the project so far and all seven PRINCE2
Reports include the checkpoint report, highlight report, lessons report, exception report, performance targets should be considered. The collected data provides the project
end stage report and end project report. manager with sufficient information on the past performance to predict the future risks
Checkpoint report: reports to the project manager the status of the work package at a and outcomes, as well as determine whether the project retains a continued business
frequency defined in the work package justification.

Highlight report: provides the project board and other stakeholders with a summary of
the stage status at intervals defined by them
Lessons report: shares lessons and triggers actions to ensure lessons become
embedded in the organization’s way of working
Exception report: informs the project board when a stage plan or project plan is forecast
to exceed tolerance levels
End stage report: gives summary of progress to date, the overall project situation, and
sufficient information to ask for a project board decision on what to do next with the
project.
End project report: reviews how the project performed against the version of the project
initiation documentation used to authorize it.
More detail can be found in Section 11.5 of the Official Book.

Notes Notes

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Progress

Progress
If tolerances are exceeded at any level, there will be an exception. Data and technology help manage projects more accurately by supporting progress
tracking and decision-making. Project data may be in the form of project documentation,
Work-package-level exceptions: if a work package is forecast to exceed its tolerances,
correspondence, project log, and records. It includes both internal and external data, as
the team manager should inform the project manager by raising an issue. The project
well as digital and non-digital formats.
manager will advise of any corrective actions required.
The data management approach is a key management product to describe:
Stage-level exceptions: if the stage is forecast to exceed its tolerances, the project
manager should produce an issue report to capture and analyse the details of the • how digital technology will be used to support project management (for example,
deviation and then provide an exception report for the project board. project controls) and project work (for example, the use of digital twins for design and
construction)
Project-level exceptions: if the forecast is for project tolerances to be exceeded, the
• how data and information will be created, used, and managed across the project
project board no longer has the authority to direct the project and must refer the matter
ecosystem and through the project life cycle and afterwards.
to corporate, programme management, or the customer for a decision.

Notes Notes

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 Module 13

Module 13
Progress

Progress
PRINCE2 includes a six-step exception management procedure. Although this procedure Consider each objective. In the PRINCE2 7 Official Book, review the section on the
mentions reports, this does not preclude the use of systems and data from performing progress practice. You can also review your notes.
the same function.

In what way would the principles be applied in the progress practice?

Here are some examples. More detail can be found in Table 11.4

Notes Notes

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 Module 13

Module 13
Progress

Progress
Quiz

Questions: Answers:
1. What is the purpose of the progress practice? 1. What is the purpose of the progress practice?
A. To forecast whether the stage is on track to deliver on time and within budget A. To forecast whether the stage is on track to deliver on time and within budget
B. To capture information to enable past mistakes to be avoided by this project, or other B. To capture information to enable past mistakes to be avoided by this project, or other
projects projects
C. To decide what to do about a product that does not meet quality specifications C. To decide what to do about a product that does not meet quality specifications
D. To ensure that the user’s quality expectations are met by the delivery of the outputs D. To ensure that the user’s quality expectations are met by the delivery of the outputs

A. Correct. “The purpose of the progress practice

2. Which should be reviewed by the project board when making the decision about what to do is to: establish mechanisms to monitor and
next with the project? compare actual achievements against those
planned [and] provide a forecast for the project’s
A. Digital and data management approach
objectives and continued viability.” Ref 11.1
B. End stage report
2. Which should be reviewed by the project board when making the decision about what to do
C. Highlight report next with the project?
D. Checkpoint report A. Digital and data management approach
B. End stage report
3. What is the definition of an exception?
C. Highlight report
A. A forecast that there will be a deviation beyond agreed tolerance levels
D. Checkpoint report
B. An uncertain event that, should it occur, will have an effect on the achievement of
objectives B. Correct. The end stage report is used “to
give a summary of progress to date, the overall
C. A product that will not meet its quality specifications project situation, and sufficient information to
ask for a project board decision on what to do
D. A report to the project manager on the status of the work package
next with the project.” Ref 11.5

3. What is the definition of an exception?

4. How should the use of data and systems support effective progress management?
A. A forecast that there will be a deviation beyond agreed tolerance levels
A. B
 y focusing the efforts of the project management team on collecting data about what has
happened in the past B. An uncertain event that, should it occur, will have an effect on the achievement of
objectives
B. By providing accurate data to assist in predicting future project performance
C. A product that will not meet its quality specifications
C. By focusing the efforts of the project management team on manual data collection
D. A report to the project manager on the status of the work package
D. By defining the tolerances against the seven performance targets for each management
level
A. Correct. An exception is “A situation where
it can be forecast that there will be a deviation
beyond the tolerance levels agreed between
5. According to the exception management procedure, at which levels are projects MOST LIKELY
the project manager and the project board (or
to face issues that exceed stage tolerances?
between the project board and business layer).”
A. Commissioning AND directing Ref 11.1

B. Directing AND managing

C. Directing AND delivering
D. Managing AND delivering

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 Module 13

Module 13
Progress

Progress
Activity 1
4. How should the use of data and systems support effective progress management?
A. B
 y focusing the efforts of the project management team on collecting data about what has
happened in the past
B. By providing accurate data to assist in predicting future project performance
C. By focusing the efforts of the project management team on manual data collection
D. By defining the tolerances against the seven performance targets for each management
level
B. Correct. As part of ‘use of data and systems
in progress management’, “data and technology
help manage projects more accurately by
supporting progress tracking and decision-
making.” In addition, “Progress reviews are not
confined to looking backwards. After having
secured and stored the data through systems,
past performance can be used to predict future
performance. Ref 11.2.7

5. According to the exception management procedure, at which levels are projects MOST LIKELY
to face issues that exceed stage tolerances?
A. Commissioning AND directing
B. Directing AND managing
C. Directing AND delivering
D. Managing AND delivering

D. Correct. As part of the exception

management procedure, “issues are often
encountered in the delivering level of the
project that will take the stage outside one of
the stage tolerances. It may also occur during
the managing level for those issues that are not
driven from delivery problems.” Ref 11.3.1

Notes

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 Module 13
Progress

Activity 2

Notes

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Module 14
Closing a project
 Closing a project
Closing a project

Closing a project
Module 14

Module 14
These are the syllabus requirements for this section of the course. The fixed points for closing could be:
• Acceptance confirmed: this could involve referring to the acceptance criteria or
gaining acceptance directly from the customer.
• Objectives achieved: as set out in the project initiation documentation.
Note: The acceptance criteria is a prioritized list of criteria that the project product must
meet before the customer will accept it.

In this module, you will learn about the ‘closing a project’ process. The main aim of this
module is to ensure that you understand how to provide the project with a clear end and
a correct handover of information and responsibility. Note that the project board actually
closes the project; the project manager only prepares the project for closure.

Notes Notes

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Closing a project

Closing a project
Module 14

Module 14
• Check user acceptance of the project product. The diagram is an overview of the closing a project process, showing the two uses (and
• Ensure that the business can support the products when the project is closed. therefore two entry points).
• Review the performance of the project against its baselines.
One of the defining features of a project is that it is finite; it has a start and an end. If
• Assess any benefits that have already been realized and update the benefits
the project loses this distinction, it loses some of its advantages over purely operational
management approach to include any post-project benefit reviews.
management approaches.
• Ensure that provision has been made to address all open issues and risks, with follow-
on action recommendations. Closure activities should be planned as part of the stage plan for the final stage. If the
• Ensure that the project is closed in an orderly way and not simply abandoned (in the project board triggers a premature closure of the project, this process will also have to
case of a premature close). be executed.
A clear end:
• is always more successful
• provides an opportunity to ensure all unachieved goals and objectives are identified
to be addressed in the future
• transfers ownership from project management team to the agreed owners.

Notes Notes

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Closing a project
Module 14

Consider each objective. In the PRINCE2 7 Official Book, review the section on the closing
a project. You can also review your notes.

Notes

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 Quiz Activity

Questions:
1. What action should be taken if a project is closed prematurely?
A. T
 he project manager should still use the ‘closing a project’ process to deal with the
situation
Closing a project

Closing a project
Module 14

Module 14
B. The project manager should ensure no additional work is undertaken before the project is
closed
C. The project manager should trigger premature close, if the business case is no longer valid
D. The project board should approve the use of the remaining project budget to fund
operational costs

Answers:
1. What action should be taken if a project is closed prematurely?
A. T
 he project manager should still use the ‘closing a project’ process to deal with
the situation
B. The project manager should ensure no additional work is undertaken before the project is
closed
C. The project manager should trigger premature close, if the business case is no longer valid
D. The project board should approve the use of the remaining project budget to fund
operational costs
A. Correct. “It is also possible that the project
board may wish to trigger a premature closure
of the project under some circumstances;
for example, if the business case is no longer
valid. If the project is being brought to a
premature close, this process will still need to
be executed.” Ref 19.3

Notes Notes

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Module 15
Directing a project
 Directing a project
Directing a project

Directing a project
Module 15

Module 15
These are the syllabus requirements for this section of the course. Note the key words.

In this module, you will be learning about the elements of directing a project. The There are a number of key objectives for this process.
‘directing a project’ process covers the activities of the project board. It is not concerned
with the day-to-day activities of the project manager. This process begins at the start of
the project and is used throughout the project’s lifespan.

Notes Notes

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 The project board: The process of directing a project sits on top of all the other processes (as can be seen
on the diagram).
• gives informal advice and guidance as well as formal direction during the life of
Directing a project

Directing a project
the project, for example, when additional consultation with the project manager is It covers the activities of the project board and is not concerned with the day-to-day
Module 15

Module 15
required activities of the project manager.
• manages by exception; this means it monitors by reports, and controls through
a small number of decision points. There should be no need for other ‘progress
meetings’
• acts as a communication channel, engaging with and ensuring two-way
communication with the business layer.
The process of directing a project provides a mechanism for the project board to meet
its responsibility for ensuring there is continued business justification without being
overburdened by hands-on project management activity.

Notes Notes

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Directing a project

Directing a project
Module 15

Module 15
Notes Notes

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 Quiz

Questions: Answers:
1. Which is a purpose of the ‘directing a project’ process? 1. Which is a purpose of the ‘directing a project’ process?
A. T
 o retain accountability of the project board while delegating the detailed management A. T
 o retain accountability of the project board while delegating the detailed
work management work
B. To prevent any projects with poor justification from being undertaken by the organization B. To prevent any projects with poor justification from being undertaken by the organization
C. To manage the work of a stage by implementing effective corrective actions C. To manage the work of a stage by implementing effective corrective actions
D. To provide information so that the commissioning authority can commit to delivery of the D. To provide information so that the commissioning authority can commit to delivery of the
project project
A. Correct. “The purpose of the process of
directing a project is to enable the project
2. Which TWO are objectives of the ‘directing a project’ process?
board to be accountable for the project’s
1. To ensure that the project is only closed when properly authorized success by making key decisions and exercising
overall control while delegating day-to-day
2. To ensure that post-project benefit reviews have been scheduled
Directing a project

Directing a project
management of the project to the project
Module 15

Module 15
3. To ensure that the business is ready to use the products after the project is closed manager.” Ref 14.1
4. To ensure that users have accepted the project product
2. Which TWO are objectives of the ‘directing a project’ process?
A. 1 and 2
1. To ensure that the project is only closed when properly authorized
B. 2 and 3
2. To ensure that post-project benefit reviews have been scheduled
C. 3 and 4
3. To ensure that the business is ready to use the products after the project is closed
D. 1 and 4
4. To ensure that users have accepted the project product
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 1 and 4
A. Correct.
1. “The objectives of the directing a project
process are to ensure that: … there is authority
to close the project.” Ref 14.2
2. “The objectives of the directing a project
process are to ensure that: … plans for realizing
the post-project benefits are managed and
reviewed.” Ref 14.2

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 Activity 1 Activity 2
Directing a project

Directing a project
Module 15

Module 15
20 minutes.

Notes Notes

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Module 16
Course review
 Course review

This session allows time to revisit the key learning points of the course and to sit and
review the sample paper.
Course review

Course review
Module 16

Module 16
Do you recall the five integrated elements of PRINCE2? This slide provides the opportunity to review the seven PRINCE2 principles.

Notes Notes

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Course review

Course review
Module 16

Module 16
Notes Notes

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 Read questions carefully: decide which are the key words in the question. Misreading General information on the sample papers to be used with this module.
questions is one of the most common exam mistakes.
Read the four answers carefully: eliminate any answers which are obviously incorrect.
Select the correct answer: if you are unsure, make a note to review your answer when
you have completed all questions.
Be careful when changing any answers: make sure it is clear which answer you have
chosen.
Manage your time: allow five minutes to check any answers you are unsure of. Check
your answers are clear on your paper. Doing a sample exam before the exam will help
you to gauge how to manage your time in the exam.
Digital exam: have a blank sheet of paper to write notes on. Write down keywords or
Course review

Course review
Module 16

Module 16
mind map ideas.

Multiple-choice questions
There are 60 questions for a foundation exam, so you will need to be careful with your
timing. Checking key words in the questions and answers can help with your accuracy
and timing. 36 marks are required (out of 60 marks available) to pass.
The exam is one hour (60 minutes) duration; so you will have one minute per question. It
is a closed book exam; you should review your notes and the Learner Workbook.

Notes Notes

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