5 Processes
PRINCE2 is a process-based approach for project management. A process is a structured set of activities designed to accomplish a specific objective. It takes one or more defined inputs and turns them into defined outputs.
There are seven processes in PRINCE2, which provide the set of activities required to direct, manage and deliver a project successfully. The processes address the flow of the project, with recommended actions relating to the different themes linked together.
Figure 5.1 shows how each process is used throughout a project’s lifecycle. The lifecycle has three management stages: an initiation stage, subsequent stage(s), and the final stage. Note that on a simple project, there may only be two stages: an initiation stage and one delivery stage (the final stage).
As shown in Figure 1.1, PRINCE2 recognizes four levels of management:
• Corporate, programme management or the customer
• The project board
• The project manager
• The team manager.
PRINCE2 requires that project management processes are as simple as possible and that they reflect the needs of the project. There may be some activities, however, especially relating to governance, which need to be prescriptive. This can happen where they interface with higher-level processes within the organization, such as those for procurement or finance (when allocating funds at the start of a new stage, for example).
For most projects, all processes remain relevant even for simple projects; what changes is the way in which they are undertaken, the activities and the degree of formality. Informality, with the right mindset, does not necessarily mean less rigour.
Processes can be tailored ‘up’ or ‘down’ (i.e. additional detailed documentation and discipline can be introduced for high-risk projects, whereas concise bullet-point presentations and more informal processes may be adequate for low-risk projects).
Key message
Tailoring allows the PRINCE2 process model to be adapted, revising the processes, activities, their sequencing and how the role responsibilities are allocated, provided that:
• the PRINCE2 principles are upheld
• the purpose and objectives of the process are not compromised.
The purpose of the starting up a project process is to ensure that the prerequisites for initiating a project are in place by answering the question: Do we have a viable and worthwhile project? The decision to start the project must be explicit; the activities from starting up a project happen before this decision.
The objective of the process is to ensure that:
• there is a business justification and all necessary authorities exist for initiating the project
• sufficient information is available to define and confirm the scope of the project, the various ways the project can be delivered are evaluated, and a project approach is selected
• individuals are appointed who will undertake the work required in project initiation and/or will take significant project management roles in the project
• the work required for project initiation is planned
• time is not wasted because of unsound assumptions regarding the project’s scope, timescales, acceptance criteria and constraints.
The activities in the process are to:
• appoint the executive and the project manager
• capture previous lessons
• design and appoint the project management team
• prepare the outline business case
• select the project approach and assemble the project brief
• plan the initiation stage.
The purpose of the directing a project process is to enable the project board to be accountable for the project’s success by making key decisions and exercising overall control while delegating day-to-day management of the project to the project manager.
The objective of the process is to ensure that:
• there is authority to initiate the project, deliver the project’s products and close the project
• management direction and control are provided throughout the project’s lifecycle
• the project remains viable
• corporate, programme management or the customer has an interface to the project
• plans for realizing the post-project benefits are managed and reviewed.
The activities in the process are project board oriented and are to:
• authorize initiation
• authorize the project
• authorize a stage or exception plan
• give ad hoc direction
• authorize project closure.
The purpose of the initiating a project process is to establish solid foundations for the project, enabling the organization to understand the work that needs to be done to deliver the project’s products before committing to a significant spend.
Every PRINCE2 project has an initiation stage. The key deliverable from this stage is the PID, which includes an overall project plan and defines baselines for the six performance targets of time, cost, quality, scope, risk and benefits. The PID represents an authoritative statement of what the project will deliver, how this will be achieved, and by whom.
By the end of the process, there should be a common understanding of:
• the reasons for doing the project, the benefits expected and the associated risks
• the scope of what is to be done, how and when the products will be delivered, and at what cost
• who is to be involved in the decision-making, the information they need, and in what format and time
• how the quality required will be achieved
• how baselines will be established, and progress monitored and controlled
• how risks, issues and changes will be identified, assessed and controlled
• how the corporate, programme management or customer method will be tailored to suit the project.
The activities in the process are project manager oriented and are to:
• agree the tailoring requirements
• prepare the risk management approach
• prepare the change control approach
• prepare the quality management approach
• prepare the communication management approach
• set up the project controls
• create the project plan
• refine the business case
• assemble the project initiation documentation (PID).
The purpose of the controlling a stage process is to assign work to be done, monitor such work, deal with issues, report progress to the project board, and take corrective actions to ensure that the management stage remains within tolerance.
The objective of the process is 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
• risks and issues are kept under control
• the business case is kept under review
• the agreed products for the management stage are delivered to stated quality standards, within cost, effort and time agreed, and ultimately in support of the achievement of the defined benefits
• the project management team is focused on delivery within the tolerances laid down.
The activities in the process are project manager oriented and comprise:
• Work packages:
• authorize a work package
• review work package status
• receive completed work packages
• Monitoring and reporting:
• review the management stage status
• report highlights
• Issues and risks:
• capture and examine issues and risks
• escalate issues and risks
• take corrective action.
The purpose of the managing product delivery process is to control the link between the project manager and the team manager(s), by agreeing the requirements for acceptance, execution and delivery.
The role of the team manager(s) is to coordinate an area of work that will deliver one or more of the project’s products. They can be internal or external to the customer’s organization.
The objective of the process is to ensure that:
• work on products allocated to the team is authorized and agreed, and the planned products are delivered to expectations and within tolerance
• team managers, team members and suppliers are clear as to what is to be produced and what is the expected effort, cost or timescale
• accurate progress information is provided to the project manager at an agreed frequency to ensure that expectations are managed.
The activities in the process are team manager oriented and are to:
• accept a work package
• execute a work package
• deliver a work package.
The purpose of the managing a stage boundary process is to enable the project manager to provide the project board with sufficient information to be able to:
• review the success of the current management stage
• approve the next stage plan
• review the updated project plan
• confirm continued business justification and acceptability of the risks.
Therefore, the process should be executed at, or close to, the end of each management stage.
The objective of the process is to:
• assure the project board that all products in the stage plan for the current management stage have been completed and approved
• prepare the stage plan for the next management stage
• review and, if necessary, update the PID; in particular the business case, project plan, project approaches, project management team structure and role descriptions
• provide the information needed for the project board to assess the continuing viability of the project
• record any information that can help later management stages of this project and/or other projects
• request authorization to start the next management stage.
For a project in exception (when tolerances are forecast to be exceeded), the objectives of the process are to:
• review and, if necessary, update the PID; in particular the customer’s quality expectations, project approaches and controls, and role descriptions
• provide the information needed for the project board to assess the continuing viability of the project
• prepare an exception plan as directed by the project board
• seek approval to replace the project plan or stage plan with the exception plan.
The activities in the process are project manager oriented and are to:
• plan the next management stage
• update the project plan
• update the business case
• report management stage end
• produce an exception plan.
The purpose of the closing a project process is to provide a fixed point at which acceptance of the project’s product is confirmed, and to recognize that objectives set out in the original PID have been achieved (or approved changes to the objectives have been achieved), or that the project has nothing more to contribute.
The objective of the process is to:
• verify user acceptance of the project’s products
• ensure that the host site is able to support the products when the project is disbanded
• review the performance of the project against its baselines
• assess any benefits that have already been realized and update the benefits management approach to include any post-project benefit reviews
• ensure that provision has been made to address all open issues and risks, with follow-on action recommendations.
The activities in the process are project manager oriented and are to:
• prepare planned closure
• prepare premature closure
• hand over products
• evaluate the project
• recommend project closure.