2 : Principles

Question 1

What does the following statement mean: “PRINCE2 is principle based”?

Answer 1

This means that each PRINCE2 project should include the 7 principles and even if just one of the principles is missing, it can still be a project but it cannot be considered a PRINCE2 Project.

Question 2

List about 3 or 4 of the 7 Principles. Don’t worry about getting the names 100% correct. I will list all 7 principles so you can compare.

Answer 2

The 7 principles are:

1. Continue business justification – business case must exist throughout the project.
2. Learn from experience – learn from lessons.
3. Defined roles and responsibilities – everyone knows what is expected from them.
4. Manage by stages – break projects into stages – easier to manage.
5. Manage by exception – Allows the level below to get on with their work and inform above level if work will go out of tolerance.
6. Focus on products – be clear and specific from the beginning of the project of what the project will deliver – so all stakeholders know what to expect from the project.
7. Tailor to suit the project environment – don’t overload your projects with unnecessary administration.

Question 3

How would you explain principles from a PRINCE2 point of view to another person? Answer in your own words.

Answer 3

I like to explain principles in the following way:
• Normally we say People have good principles like honesty, sincerity, trustworthy and we may like our friends or bank managers to have these principles.
• We can demand certain principles in our projects, like business case and defined product descriptions.

Other things we can say about principles are:
• Principles provide a framework of good project practice for those involved in a project.
• A Principle is a core value that must always exist in a PRINCE2 project.
• Principles are guides for good practice.

Question 4

What is the name of the principle that deals with business reasons behind the project (in other words the business case)? Tip: First word begins with C.

Answer 4

This principle is Continued Business Justification.

Question 5

In which document will you find Business Justification to start the project? This document becomes part of the Project Initiation Documentation.

Answer 5

In the Business Case document, this document is created in the Initiation Stage and it becomes part of the Project Initiation Documentation.

Question 6

What should happen if during the project the business justification is no longer valid?

Answer 6

The project should be shut down, so the Project Board will instruct the Project Manager to close this project. This is also known as a Premature Close.

Question 7

What does the principle Continued Business Justification prevent at the start of a project?

Answer 7

This principle prevents projects that have few real benefits for the company from starting.

Question 8

When does the Project Manager check for Business Justification in the project, for example, that the business case is still valid?

Answer 8

The business justification is checked throughout the lifetime of the project. This is done first at the start of the project to make sure the project is worth doing and then at the end of every stage. The end of every stage is a good time as the Project Manager provides the End Stage Report, overview of Risk and information that affects the business case to the Project Board.

Question 9

What is the name of the principle that deals with Lessons Learned?

Answer 9

Learn from Experience. So learn from previous projects and other information that is available.

Question 10

As projects are unique by nature, what should the people involved at the start of a project do to reduce risks and unknowns and not make the same mistakes as previous projects?

Answer 10

PRINCE2 says that all stakeholders should take the initiative to seek lessons learned. This will help to decrease the unknowns and provide more information on risks. So it is not just up to the Project Manager but all the stakeholders.

Question 11

According to PRINCE2, who has the responsibility to seek lessons learned?

Answer 11

PRINCE2 states that seeking lessons learned is a responsibility for everybody involved in the project.

Question 12

What do you think should happen if there were no or insufficient similar projects that the project team can learn from within their organization?

Answer 12

They should then look for outside help, e.g.: consulting, reports, trade information, visit other companies that may have done similar projects, etc…

Question 13

PRINCE2 states that Lesson Learned covers the complete lifecycle of the Project. There are 3 phases for lessons – at the start of the project, during the project and at the end of the project. Can you list what the Project Manager & Stakeholders may do in these parts?

Answer 13

1. Starting Up a Project, Looking outside for useful Lessons Learned and the Project Manager adds them to the Lessons Log
2. As the Project Progresses: identify new lessons learned to the Lesson Log
3. As the Project Closes, you can pass on lessons to the next project in the Lesson Report

Question 14

What is the name of the principle that deals with Roles & Responsibilities?

Answer 14

The principle name is “Defined Roles & Responsibilities”.

Question 15

What is the key question that this principle “Defined Roles and Responsibilities answers”?

Answer 15

It answers the question “What is expected from me” or “What is expected from everybody in the project”. Everyone connected to the project should know their role and this should be decided at the start of the project.

Question 16

Name the three primary stakeholders that should be represented in a PRINCE2 project, in other words the Project Board.

Answer 16

1) Business Sponsors; 2) Users; 3) Suppliers

Question 17

Business Sponsors are 1 of 3 primary stakeholders in the Project Board, what do they do?

Answer 17

The Business Sponsors sponsor the project as it is important to get the project off the ground and makes sure the projects delivers value for money. They are concerned with the return on investment of the project.

Question 18

Users are one of 3 primary stakeholders in the Project Board; what do they do?

Answer 18

Users are those who will use the products once created, so they receive the benefits or they represent the people who will use the products. Throughout the project, their main concern is “Can the product be delivered as expected and will it usable?”

Question 19

Suppliers are one of 3 primary stakeholders in the Project Board; what do they do?

Answer 19

Suppliers provide the resources and expertise to the project and produce the products. Their main concern throughout the project is “Can it be done as expected?”

Question 20

What three interests should be represented in the Project Board?

Answer 20

The business, user and supplier interests must be represented in the Project Board. The business interests are represented by the Executive; the Senior User represents the users’ interests and the Senior Suppler represents the supplier interests.

Question 21

What is the name of the principle that deals with Stages?

Answer 21

Manage by Stages” Stages allow the project to be broken up into different parts which can be managed separately.

Question 22

Why are stages referred to as Management Stages?

Answer 22

They are referred to as Management Stages as they are separated by management decision points. At the end of the each stage, the Project Board reviews the previous stage and must give permission for the next stage to begin.

Question 23

Complete the following sentence: “A PRINCE2 Project is planned, monitored and controlled on a ________.”

Answer 23

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

Question 24

Name one task that the Project Board does at the end of each stage?

Answer 24

At the end of each stage, the Project Board assess the performance of the last stage, assess business case, assess the project plan for next stage and decides whether to proceed with the next stage.

Question 25

Does PRINCE2 advise to have a detailed Project Plan and a detailed Stage plan for the current stage?

Answer 25

PRINCE2 advises to have a high level Project Plan for the whole project and then a very detailed plan for the current stage.

Question 26

What is the minimum number of stages in a project?

Answer 26

There is a minimum of 2 management stages in a project; the Initiation Stage and one further management stage. You may ask, “What about the Closing a Project Process?” The Closing a Project Process is last part of the last stage.

Question 27

Can you explain what is meant by Manage by Exception (any similar answers to the one I give will be fine)?

Answer 27

The Project Manager has some tolerance when it comes to the project variables such as time, cost and scope before they have to advise the project board that there is or will be a problem. So if a small problem arises they can deal with it and they don’t have to bother the project board for every minor issue.
The Project Manager will only have to bother the management layer above (which is the project board), if an issue goes outside their tolerance level for time, cost, scope, etc. This out of tolerance is called an exception. Hence the term Manage by Exception, as the layer above manage the layer below by exception.

Question 28

PRINCE2 lists 6 tolerances that can be set. These are also known as the project variables. Can you name some of these? (Tip think TeCQuila SoBeR)

Answer 28

The 6 tolerances that can be set are:

Time, Cost, Quality, Scope, Benefit and Risk.

Question 29

What principle in PRINCE2 provides the above management layer with a system to manage and control and don’t need to be annoy by each small issue.

Answer 29

Manage By Exception.

Question 30

What does a project deliver (I am looking for a one word answer)? (Tip: Think about the definition of a project.)

Answer 30

A project delivers products.

Question 31

What do you think would happen if there is a poor product description of the product that the Project is to produce?

Answer 31

There are many things can happen such as all stakeholders can have different ideas of what the product should be. This can cause many unnecessary meetings, time delays, unnecessary new requirements, additional costs and even an unusable end product being produced.

Question 32

What advantages do good Product Descriptions have?

Answer 32

Product descriptions affect the whole project, from planning, as you can better identify the requirements, dependencies and activities, to all other processes and themes. Product descriptions are beacons, or reference points for the whole project. They can be used by all stakeholders when discussing the products during the project.

Question 33

What message is the principle “Tailor to suit Project Environment” trying to get across? (don’t worry about matching the words in the answer, any similar answer is good)

Answer 33

To get the most of the PRINCE2, you should only use parts of the PRINCE2 necessary to support your project. In other words a PRINCE2 project should be tailored to suit the project’s size, environment, complexity, importance, capability and risk. So again, just use the parts of PRINCE2 that will help your project.

Question 34

Can PRINCE2 be applied to any type and size of project?

Answer 34

Yes. A comment I hear often is the following, “Our projects are small and don’t need a Project Management method.” Many people say this as they believe that there is a need to do a mountain of admin paperwork for a 1 to 2 month project, which of course is incorrect.

Question 35

In which document should it be described how the PRINCE2 method is tailored for that particular project?

Answer 35

The Project Initiation documentation. In fact, this is one of the points that the Project Board should check at the start of the project.