PM with PRINCE2

Question 1

What is a project?

Answer 1

A temporary organization created to deliver one or more business products according to an agreed business case, used to introduce changes.

Question 2

What are the two parallel challenges that organizations face today?

Answer 2

1) Maintain current business operations. 2) Transform operations to survive and compete in the future.

Question 3

What is the difference between managing business as usual and managing projects?

Answer 3

Projects introduce changes and differ from business as usual in their temporary nature, the need to manage uncertainty, and being cross-functional.

Question 4

What are the characteristics that distinguish projects from business as usual?

Answer 4

1) Change. 2) Temporariness. 3) Cross-functionality. 4) Uniqueness. 5) Higher risk.

Question 5

What is Project Management in PRINCE2?

Answer 5

Project Management in PRINCE2 involves organizing, planning, delegating, monitoring, and controlling all aspects of the project, as well as motivating participants, to achieve project objectives while meeting expected performance targets.

Question 6

What role does the environment play in Project Management according to PRINCE2?

Answer 6

The project environment influences how a project is initiated, delivered, assured, and closed. External factors such as corporate standards, organizational maturity, regulatory frameworks, and project-specific aspects like industry sector, geographical location, and risks significantly impact.

Question 7

What are the variables involved in a project in PRINCE2?

Answer 7

Costs, Timescales, Quality, Scope, Benefits, Risk.

Question 8

How are costs managed in a PRINCE2 project?

Answer 8

Costs must be managed to keep the project affordable, anticipating budget variations and cost-cutting opportunities.

Question 9

What does timescale management entail in a PRINCE2 project?

Answer 9

Involves accurately planning when the project will be completed, balancing time and costs.

Question 10

What is the importance of quality in a PRINCE2 project?

Answer 10

Crucial to ensure the project’s outcomes are functional and fit for purpose.

Question 11

How is the scope defined in a PRINCE2 project?

Answer 11

Precisely defining what the project will deliver, avoiding misunderstandings and ‘scope creep’.

Question 11

How are benefits managed in a PRINCE2 project?

Answer 11

Understanding the project’s purpose and ensuring the outcomes align with the desired return.

Question 11

What is PRINCE2’s approach to risk management?

Answer 11

Assess, accept, and mitigate risks, exploring options like insurance, reinforcement, or continuous monitoring.

Question 11

What are the main responsibilities of a project manager in PRINCE2?

Answer 11

Planning, delegating, monitoring, and controlling project activities, intervening if deviating from the plan.

Question 12

What is the key objective of a project manager in PRINCE2?

Answer 12

To ensure the right information is available at the right time for the right people to make the right decisions about the project.

Question 13

Who are the customer and supplier in a PRINCE2 project?

Answer 13

The customer specifies the desired result, and the supplier provides resources and skills to deliver that result.

Question 14

What is the role of the commissioning organization in a PRINCE2 project?

Answer 14

Responsible for providing the project’s mandate, governing the project, and realizing any benefits from the project.

Question 15

What is the role of the supplier in a PRINCE2 project?

Answer 15

The supplier is responsible for the supply of the project’s specialist products.

Question 16

What are the different contexts in which projects can be placed?

Answer 16

Projects can be stand-alone with their own business case, or part of a programme or wider portfolio.

Question 17

What are stand-alone projects?

Answer 17

Projects that exist independently within an organization, outside the governance structures of programmes or portfolios.

Question 18

What is a programme?

Answer 18

A temporary, flexible structure to coordinate related projects and activities to deliver outcomes aligned with strategic objectives.

Question 19

What is a portfolio?

Answer 19

The complete allocation of an organization’s investments into projects and initiatives for change, all strategically directed towards achieving its long-term goals.

Question 20

What types of organizational structures can be encountered in PRINCE2 projects?

Answer 20

Organizational structures can be traditional functional structures or project-focused corporate organizations.

Question 21

How are projects managed within portfolios?

Answer 21

Projects may be commissioned to deliver products or results contributing to the organization’s strategic objectives and are managed within portfolios.

Question 22

What happens when a project is run to meet specific customer requirements in a commercial environment?

Answer 22

The customer may have entered into a commercial contract with a supplier, regulating how they will work together to deliver the project, influencing the project manager’s management.

Question 23

How can the customer break down work in a commercial project?

Answer 23

The customer can break down the work into elements necessary for the business case. Some elements may be assigned to suppliers, while others will be managed internally.

Question 24

How can commercial relationships become complex in a project?

Answer 24

In a commercial environment, projects may involve multiple organizations with multiple contracts and various motivations, such as joint ventures, collaborations, etc.

Question 25

What should be considered when managing projects in a commercial environment?

Answer 25

Considerations include various aspects such as motivations (business case), management systems, governance, organizational structures, delivery approaches, and corporate cultures.

Question 26

What organizational elements are emphasized in PRINCE2?

Answer 26

Values, principles, policies, standards, and processes that support the management and governance of programs and projects.

Question 27

How are program strategies aligned with the organization in PRINCE2?

Answer 27

Through a plan that ensures the program’s visions and goals align with those of the organization.

Question 28

How are quality and risk managed in PRINCE2 projects?

Answer 28

Projects inherit strategies from programs, adapting quality and risk management practices as necessary.

Question 29

What must a PRINCE2 project do if commissioned by an external client?

Answer 29

Adapt to the client’s standards and methods, including issue management processes and specific reporting requirements.

Question 30

What does project tailoring imply in PRINCE2?

Answer 30

Adapting the project to meet specific requirements, following the organizational method’s guidelines, recorded in the PID.

Question 31

What are the main delivery approaches in PRINCE2?

Answer 31

Waterfall, where steps are sequential, and Agile, where requirements and design evolve iteratively.

Question 32

What is the traditional and modern approach to measuring success in a project?

Answer 32

Traditionally, success is measured in terms of time, cost, and quality. A modern approach includes the identification of KPIs to summarize the project’s status.

Question 33

What aspects should be balanced in the design of KPIs?

Answer 33

Balance between qualitative and quantitative measures, leading and lagging indicators, and project inputs and outputs.

Question 34

What is the difference between project objectives and KPIs?

Answer 34

Objectives are what the project needs to achieve, whereas KPIs are the measures that indicate whether progress is being made towards achieving those objectives.

Question 35

What is the difference between lagging and leading indicators?

Answer 35

Lagging indicators measure performance following events, while leading indicators measure progress towards events.

Question 36

What should KPIs be aligned with?

Answer 36

With the quality expectations and acceptance criteria defined in the project product description, and the project tolerances (time, cost, quality, scope, benefits, and risk) defined in the PID.

Question 37

How can project progress be displayed?

Answer 37

Through a project dashboard with graphical representations such as pie charts and histograms to show the status and trends of performance indicators.

Question 38

How is organizational capability related to the use of PRINCE2?

Answer 38

Organizations with higher project management capabilities show better business performance, using methods like PRINCE2.

Question 39

What is P3M3 in relation to PRINCE2?

Answer 39

P3M3, or Portfolio, Programme and Project Management Maturity Model, is a maturity model developed by AXELOS Limited. It assesses an organization’s capability in managing portfolios, programmes, and projects, measuring maturity on a 5-level scale, from process awareness to process optimization.

Question 40

What are the levels of the P3M3 maturity scale?

Answer 40

Level 1 - Process Awareness: The organization recognizes processes but applies them inconsistently.
Level 2 - Repeatable Process: The organization has standardized processes that are repeated.
Level 3 - Defined Process: Processes are defined and documented, with a common understanding across the organization.
Level 4 - Managed Process: The organization manages and measures its processes systematically.
Level 5 - Optimized Process: Processes are continuously refined and optimized to maximize efficiency and effectiveness.