7 PRINCE2 THEMES

This section affords a brief overview of the actual PRINCE2 method. Here, we explain the philosophy of the 7 Themes and when, where and how they are used in the 7 PRINCE2 Processes.

In simple terms, the Themes are the various planning issues that you need to address as you plan your project. The Processes include the activities that you will have to perform to plan and run your projects.

It is essential that you tailor the PRINCE2 method according to the type and scale of your project. When planning and managing projects, ask yourself this: "How extensively should this component and/or process be applied to this project?"

First of all, let us take a brief look at the 7 PRINCE2 Themes shown below, starting with Organization.

© Crown Copyright 2009 Reproduced under licence from OGC

Before we can answer the question "Do we have a project?", it is necessary to design and appoint a suitable Project Management Team to direct and manage the project.

A PRINCE2 Organisation is simply 'people playing roles' and consists of:

	A PROGRAMME EXECUTIVE Only required when a project is part of a programme.
	THE PROJECT BOARD To direct the project and ensure that it remains focused  on the Business Case.
	A PROJECT MANAGER To plan and manage the project on the behalf of the Project Board with focus on product creation.
	TEAM MANAGER(S) An optional role responsible for supervising individuals creating the product(s).
	PROJECT ASSURANCE The responsibility of the Project Board but the task may be delegated. The role entails an independent monitoring of all aspects of the project's performance and products.
	CHANGE AUTHORITY Again, the responsibility of the Project Board but the task may be delegated. The role entails considering requests for change or off-specifications.

and... PROJECT SUPPORT An optional role to help the Project Manager set up and maintain records: e.g. configuration management and change control.

The Project Management Team is disbanded at the close of the project.

PRINCE2's key philosophy is that a Business Case must exist to drive the project.

The Business Case is developed before the project is approved, and is thereafter maintained throughout the project lifecycle.

The Business Case is a description of the reasons for the project and the justification for undertaking it.

A PRINCE2 plan is more than a Gantt chart. The PRINCE2 method includes three levels of plan:

•  A Project Plan
• A Stage Plan
• A Team Plan

The Project Plan and Stage Plans are mandatory in the PRINCE2® method, whereas Team Plans are optional.

There is one other Plan which may need to be created during the life of a project: 

A key feature of the PRINCE2 method is the concept of 'Management by Exception'.

Progress control is about decision-making to ensure that the project is:

1. Producing the required products which meet defined Quality Criteria.
2. Being undertaken according to agreed plans.
3. Remaining viable against its Business Case.

The PRINCE2 method enables controlled progress of a project. Key progress controls include:

• AUTHORIZATIONS: Should the project be planned, should the project be undertaken, should the project be closed?
• END STAGE ASSESSMENT: Has the stage been completed successfully, and should the next stage be undertaken?
• HIGHLIGHT REPORTS: At pre-determined intervals for the Project Board to check on progress during a stage.
• EXCEPTION REPORTS: Early warning of forecast deviation beyond agreed tolerance levels.
• EXCEPTION ASSESSMENT: What action to take in response to a forecast deviation.
• CHECKPOINT REPORT: At pre-determined intervals to check progress on product creation in work packages.
• TOLERANCE: The permissible deviation from a plan without bringing the deviation to the attention of the Project Board.
• PROJECT CLOSURE: Has the project delivered everything expected?

One of your planning tasks will be to decide how to implement these progress controls beneficically without making your project management bureaucratic.

Even the best planned and managed projects have risks, so the PRINCE2® method ensures that risk management is planned and integrated into the project management.

PRINCE2 defines risk as "an uncertain event or set of event that, should it occur, will have an effect on the achievement of objectives".
(PRINCE2 text - ©Crown Copyright 2009 Reproduced under licence from OGC)

 The PRINCE2 method of risk management includes:

• Identifying the project's context and risks
• Assessing each individual and aggregate risk exposure
• Planning risk response actions
• Implementing the risk response actions
• Communicating about risks

Risk Assessment includes:

• ESTIMATION - What is the probability and impact of each risk?
• EVALUATION - What is the overall level of risk exposure and is it within our appetite for risk?

Risk Management Actions include:

• For threats:
  • AVOID - Can we do something else?
  • REDUCE - Can we limit the impact or likelihood?
  • FALLBACK - Can we do something after the risk event to reduce its impact?
  • TRANSFER - Can we pass it to a third party?
  • ACCEPT - Proceed anyway
  • SHARE - Both parties share the pain (e.g. if exceed the cost plan)
• For opportunities:
  • SHARE - Both parties share the gain (e.g. if less than the cost plan)
  • EXPLOIT - Ensuring an opportunity will happen and its impact is definitely realized.
  • ENHANCE - Doing something before the risk occurs to enhance its likelihood or its impact should it occur.
  • REJECT - Deliberate decision to not seize the opportunity. 

All risks, and information about them, are recorded in a Risk Register, and each risk is allocated an owner.

Quality is about delivering products or services that are 'fit for purpose'. Customer expectations of quality are determined in the Project Product Description (the description of the project's final deliverable) and are a starting point from which you create a Quality Management Strategy.   In the PRINCE2 method, there are 4 elements to Quality Management: Quality System Quality Assurance Quality Planning Quality Control

The PRINCE2 method assumes that projects will be run according to a Corporate Quality Management System and, therefore, fits neatly with ISO9001:2008, if your organisation has a certificate.

Projects take place in dynamic environments and change requests are inevitable. All potential changes are dealt with as Project Issues and each one needs to be examined for:

1. Degree of importance and impact on the project. 2. Cost, time scale, scope and quality implications on the project. 3. The effect on the Business Case and project benefits. 4. The potential effect on an existing risk or creating a new risk.

A project needs a systematic approach to controlling how those changes affect versions of each product (configuration management). Configuration management applies to nearly all products and is often really hard work.

The Configuration Management discipline consists of:

• PLANNING - deciding the level of version control.
• IDENTIFICATION - identifying all products to be put under configuration management.
• CONTROL - nothing changes without authorisation.
• STATUS ACCOUNTING - recording changes.
• VERIFICATION AND AUDIT - reviews and audits to check configuration management is working well.

Manual

The Configuration Management method may be manual or automated, but, above all, it must be appropriate for the size and scale of the project, and determined early in the planning work.

Automated

The 7 PRINCE2 Themes - Multiple-choice questions

To conclude this section, please have a go at answering the following Foundation Examination multiple-choice questions about PRINCE2 Themes. Note your answers to the following questions and then select the link to the answer page.

In the Project Management Team, which role undertakes the monitoring of all aspects of the project's performance and products?

1. Project Board
2. Project Assurance
3. Project Manager
4. Project Support

Which one of the following is an optional Plan in PRINCE2?

1. Team Plan
2. Project Plan
3. Stage Plan

Which type of control is used by the Project Board to check on progress during a Stage?

1. Highlight Report
2. Exception Report
3. End Stage Assessment
4. Exception Assessment

What is the minimum number of Stages in a PRINCE2 project?

1. Two
2. Three
3. Four
4. Five

Which of the following is not a response to a threat risk?

1. Avoid
2. Fallback
3. Denial

How well did you do? Here are the answers.

Asnwers to the Themes multiple-choice questions

In the Project Management Team, which role undertakes the monitoring of all aspects of the project's performance and products?

1. Project Board
2. Project Assurance
3. Project Manager
4. Project Support

2. is correct. Project Assurance monitors aspects of the project's performance and products independently of the Project Manager.

Which one of the following is an optional Plan in PRINCE2?

1. Team Plan
2. Project Plan
3. Stage Plan

1. is correct. The Project Manager will always produce a Project Plan and at least two Stage Plans. They can choose whether or not they require Team Managers to produce Team Plans covering the work of the Team Manager's team.

Which type of control is used by the Project Board to check on progress during a Stage?

1. Highlight Report
2. Exception Report
3. End Stage Assessment
4. Exception Assessment

1. is correct. The Project Board receives at a pre-determined frequency Highlight Reports from the Project Manager about their progress.

What is the minimum number of Stages in a PRINCE2 project?

1. Two
2. Three
3. Four
4. Five

1. is correct. As already suggested above, there are always at least two Stages - the Initiation Stage (when the detailed planning is done) and the rest of the project.

Which of the following is not a response to a risk threat?

1. Avoid
2. Fallback
3. Denial

3. is correct. We never deny threats could occur - we always consider the threats and oportunities facing a project.

Move on now to the next section for an overview of The 7 PRINCE2 Processes.