Principles

Question 1

What is PRINCE2 and how is it applied to projects?

Answer 1

PRINCE2 is a method designed to be applicable to any type of project, considering the factors such as scale, organization, geography, and culture. It’s designed to contribute to project success without burdening it with bureaucracy.

Question 2

What are the principles upon which PRINCE2 is based?

Answer 2

PRINCE2’s principles are universal, self-validating, and empowering. These include: continued business justification, learning from experience, defined roles and responsibilities, managing by stages, managing by exception, focus on products, and tailoring to suit the project.

Question 3

What are the minimum requirements to follow the PRINCE2 method?

Answer 3

To follow PRINCE2, its principles must be adopted in project management. Additionally, minimum requirements set out in the themes and processes chapters must be met.

Question 4

What does continued business justification imply in PRINCE2?

Answer 4

A PRINCE2 project must have continued business justification, which includes a justifiable reason for starting the project, recording and approving the justification, and maintaining the justification’s validity throughout the project’s life.

Question 5

What is the role of the business case in PRINCE2?

Answer 5

The business case (or equivalent documentation) documents the business justification and guides decision-making to keep the project aligned with business objectives. The justification can change but must remain valid to justify continuing the project.

Question 6

What is the role of learning from experience in PRINCE2 projects?

Answer 6

PRINCE2 emphasizes learning from past and ongoing experiences. This involves seeking, recording, and acting upon lessons throughout the project’s life. Teams should review past projects for applicable lessons and continuously adapt and improve based on these insights.

Question 7

How is continuous learning integrated into the different stages of a PRINCE2 project?

Answer 7

In PRINCE2, learning occurs at all stages: at initiation (reviewing similar past projects), during execution (implementing lessons in ongoing processes), and at closure (passing on lessons to future projects). This ongoing process ensures constant improvement and adaptation.

Question 8

What is the importance of defined roles and responsibilities in PRINCE2?

Answer 8

PRINCE2 mandates clearly defined and agreed roles and responsibilities within an organizational structure. This clarity ensures that all stakeholders - business, user, and supplier - understand their roles and expectations, facilitating effective project delivery.

Question 9

How are stakeholders represented in PRINCE2 project management?

Answer 9

In PRINCE2, stakeholders such as business sponsors, users, and suppliers are effectively involved to ensure their needs and capability are balanced. this helps in archiving the project’s objectives and preventing failure.

Question 10

What is the significance of the project management team structure in PRINCE2?

Answer 10

The project management team structure in PRINCE2 unites different parties with common aims. It ensures effective communication and collaboration among stakeholders, aligning the project with the organization’s objectives and operational capabilities.

Question 11

What is the concept of stage-by-stage management in a PRINCE2 project?

Answer 11

In PRINCE2, a project is planned, monitored, and controlled on a stage-by-stage basis. The project is broken down into discrete, sequential sections called management stages, each managed by the project manager on behalf of the project board.

Question 12

What is a ‘management stage’ in PRINCE2?

Answer 12

A management stage in PRINCE2 is the section of the project that the project manager is managing at any one time on behalf of the project board, at the end of which the board reviews progress, project plan, business case, risks, and the next stage plan.

Question 13

What factors influence the choice of management stages in a PRINCE2 project?

Answer 13

The choice of management stages depends on factors like the project’s size and complexity, significant decisions and control points needed during the project’s lifecycle, and organizational policies and standards.

Question 14

How does project board authorization work in PRINCE2?

Answer 14

The project board authorizes one management stage at a time. Near each stage’s end, the project manager reviews and updates project documentation and prepares an end stage report and plan for the next stage, which the board uses to decide whether to proceed.

Question 15

What is the role of the project manager in PRINCE2 management stages?

Answer 15

The project manager is delegated day-to-day control of a management stage within agreed tolerances. The manager can make adjustments as long as the stage remains within tolerance, enabling the project board to manage by exception.

Question 16

What is the Project Board in PRINCE2, and what are its main functions?

Answer 16

The Project Board in PRINCE2 is a group of key figures representing business, user, and supplier interests in the project. It is responsible for high-level decisions, monitoring progress, and ensuring the project aligns with business objectives. It consists of an Executive, a Senior User, and a Senior Supplier, and is tasked with approving project stages, providing strategic direction, and supporting the Project Manager.

Question 17

What does “Management by Exception” mean in PRINCE2?

Answer 17

Management by Exception in PRINCE2 establishes defined tolerances for each project objective to limit delegated authority. This method ensures that decisions are made at the right level, saving senior managers’ time while keeping them in control.

Question 18

What are the six performance tolerances in PRINCE2?

Answer 18

The performance tolerances in PRINCE2 are: Cost (acceptable variance in the budget), Time (allowable delivery date variance), Quality (variance from agreed quality criteria), Scope (allowable variation in the plan’s products), Benefits (degree of allowable under-delivery or over-delivery of benefits), and Risk (limits on the plan’s aggregated risks).

Question 19

How does the control mechanism work in Management by Exception in PRINCE2?

Answer 19

If tolerances are forecasted to be exceeded, the situation is described as “in exception” and is immediately escalated to the next management level to decide on how to proceed. This control ensures timely and appropriate-level decision-making.

Question 20

What is the role of the assurance mechanism in PRINCE2?

Answer 20

In PRINCE2, an assurance mechanism is implemented to ensure that the management by exception controls are effective. This mechanism provides confidence to each management level that tolerances and escalations are functioning as intended.

Question 21

What does “Focus on Products” mean in a PRINCE2 project?

Answer 21

The “Focus on Products” principle in PRINCE2 emphasizes the definition and delivery of products, particularly their quality requirements. Projects focusing on the products they need to produce are generally more successful than those primarily focused on work activities.

Question 22

What characterizes an output-oriented project in PRINCE2?

Answer 22

An output-oriented project in PRINCE2 defines and agrees on the project’s products before undertaking the activities required to produce them. The set of agreed products defines the project’s scope and provides the basis for planning and control.

Question 23

What is the role of product descriptions in PRINCE2?

Answer 23

In PRINCE2, product descriptions provide clarity by defining each product’s purpose, composition, derivation, format, quality criteria, and quality method. They are used to determine effort estimates, resource requirements, dependencies, and activity schedules.

Question 24

How does “Focus on Products” help in managing scope and quality in PRINCE2?

Answer 24

Focusing on products ensures that the project’s work directly contributes to the delivery of a product, helps manage uncontrolled change (scope creep), and reduces the risk of user dissatisfaction and acceptance disputes by agreeing on what the project will produce from the start.

Question 25

How is “Focus on Products” applied with an agile delivery approach in PRINCE2?

Answer 25

In PRINCE2 projects using an agile approach, the initial focus is on the purpose, derivation, and quality criteria of the project’s products to deliver initial features. More specific details about the composition and format emerge as the product reaches its final state. This agile approach allows for greater flexibility and adaptability during product development.

Question 26

What does “Tailor to Suit the Project” mean in PRINCE2?

Answer 26

“Tailor to Suit the Project” in PRINCE2 means adapting the project management method to fit the specific environment, size, complexity, importance, team capability, and risk of the project. Tailoring ensures that PRINCE2 is appropriate for every project type.

Question 27

What is the purpose of tailoring in PRINCE2?

Answer 27

The purpose of tailoring in PRINCE2 is to ensure that the project management method is appropriate for the specific project and that project controls are suitable for its scale, complexity, importance, team capability, and risk.

Question 28

Who is responsible for tailoring in PRINCE2 and what does it involve?

Answer 28

The project board and project manager are responsible for tailoring PRINCE2. It requires proactive choices on how to apply PRINCE2, bearing in mind that effective project management requires information (not necessarily documents) and decisions (not necessarily meetings).

Question 29

How is tailoring documented in a PRINCE2 project?

Answer 29

The Project Initiation Documentation (PID) should describe how PRINCE2 has been tailored for that specific project, so all those involved understand how PRINCE2 is being used and their particular responsibilities.

Question 30

What are the consequences if PRINCE2 is not tailored to a project?

Answer 30

If PRINCE2 is not tailored, the project management approach and effort might not be appropriate for the project’s needs. This can lead to either “mechanistic” project management (following the method without questioning) or “heroic” project management (not following the method at all).