Editing PRINCE2 (section)

==Overview of PRINCE2==

===Seven aspects of project performance===

These aspects are also called '''tolerances''' or '''performance goals'''. Tolerances define the delegated levels of authority which are set by a higher level of management to a lower level. The management level responsible must manage within the tolerances provided only as long as they are not forecast to be exceeded. Otherwise they are deemed to be an exception which requires escalating to the management level which delegated them. This way of managing is known as 'management by exception' and is one of the principles of PRINCE2. By managing in this way, it saves the time of senior management. In some organisations tolerances can be [[Performance indicator|key performance indicators]] (KPIs). In the following table project level tolerances are summarised:<ref name="PRINCE2 handbook 2017 Edition">{{cite web |title=Managing Successful Projects with PRINCE2, 2017 Edition |url=https://www.axelos.com/store/book/managing-successful-projects-with-prince2-2017 |website=Axelos}}</ref>
{| class="wikitable"
|-
! Tolerance type !! Defined in management product !! Example
|-
| Scope || Project/stage plan, work package description || The printer must print documents in black/white, and should also print in colour. 
|-
| Timescale || Project/stage plan, work package description || The work must be delivered within 2-3 months.
|-
| Risk || Business case, stage plan, work package description || Printer might not work if it is exposed to water.
|-
| Quality || [[Product description|Project product description, product description]] || Printer should not suffer mechanical failure when printing between 2,000 and 10,000 pages. 
|-
| Benefits || [[Business case]], stage plan || Sales should enable a net profit of between £200,000 to £400,000. 
|-
| Cost || Project/stage plan, work package description || The cost of the project should be between £100,000 and £150,000.
|-
|Sustainability
|Business case, stage plan, work package description, product description
|Toner for the printer must be carbon neutral.
|}

{| class="wikitable"
|-
! Management level !! Delegated tolerance level !! Escalated issue/exception
|-
| Business layer || Project tolerance || {{N/A}}
|-
| Project board || Stage tolerance || Project exception
|-
| Project manager || Work package tolerance || Stage exception
|-
| Team manager || {{N/A}} || Issue
|}

===Seven principles (why, or guidelines to follow) ===
PRINCE2 is based on seven principles and these cannot be tailored. The PRINCE2 principles can be described as a [[mindset]] that keeps the project aligned with the PRINCE2 methodology. If a project does not adhere to these principles, it is not being managed using PRINCE2.
# '''Ensure continued business justification''': The business case is the most important document, and is updated at every stage of the project to ensure that the project is still viable.  Early termination can occur if this ceases to be the case.
# '''Learn from experience''': Each project maintains a lessons log and projects should continually refer to their own and to previous and concurrent projects' lesson logs to avoid reinventing wheels. Unless lessons provoke change, they are only lessons identified (not learned).
# '''Define roles, responsibilities, and relationships''': Roles are separated from individuals, who may take on multiple roles or share a role. Roles in PRINCE2 are structured in four levels (corporate or programme management, project board, project manager level and team level). Project Management Team contains the last three, where all primary stakeholders (business, user, supplier) need to be presented.
# '''Manage by stages''': The project is planned and controlled on a stage by stage basis. Moving between stages includes updating the business case, risks, overall plan, and detailed next-stage plan in the light of new evidence.
# '''Manage by exception''': A PRINCE2 project has defined tolerances (6 aspects above) for each project objective, to establish limits of delegated authority. If a management level forecasts that these tolerances are exceeded (e.g. time of a management stage will be longer than the estimated time in the current management stage). It is escalated to the next management level for a decision how to proceed.
# '''Focus on products''': A PRINCE2 project focuses on the definition and delivery of the products, in particular their '''quality requirements'''.
# '''Tailor to suit the project''': PRINCE2 is tailored to suit the project environment, size, complexity, importance, time capability and risk. Tailoring is the first activity in the process '''initiating a project''' and reviewed for each stage.
Not every aspect of PRINCE2 will be applicable to every project, thus every process has a note on [[scalability]]. This provides guidance to the project manager (and others involved in the project) as to ''how much'' of the process to apply. The positive aspect of this is that PRINCE2 can be tailored to the needs of a particular project. The negative aspect is that many of the essential elements of PRINCE2 can be omitted sometimes resulting in a PINO project – PRINCE in Name Only

===Seven PRINCE2 practices and the management products used to support each practice===
{{Static row numbers}}
{| class="wikitable static-row-numbers"
|-
! Practice !! Management products which support the practice
|-
| Business case ||
* Business case
* Benefits management approach
* Sustainability management approach
|-
| Organizing ||
* Communication management approach
* Project management team structure
* Role descriptions
|-
| Quality ||
* Product description
* Quality management approach
* Quality register
* Product register
|-
| Plans ||
* Plan (project, stage, team, exception)
* Project product description
* Work package description
|-
| Risk ||
* Risk management approach
* Risk register
|-
| Issues ||
* Issue management approach
* Issue register
* Issue report
|-
| Progress ||
* Digital and data management approach
* Daily log
* Lessons log
* Checkpoint report
* Highlight report
* Lessons report
* Exception report
* End stage report
* End project report
|}

===Seven processes (who does what and when from start to finish)===
# Starting up a project, in which the [[project team]] is appointed including an [[project executive|executive]] and a [[project manager]], and a project brief is produced. 
# Initiating a project, in which the business case is refined and [[Project Initiation Documentation|project initiation documentation]] is assembled.
# Directing a project, in which the project board directs the project manager and oversees the project.
# Controlling a stage, in which the project manager authorises [[work package]]s to team managers, manages issues and risks, and reports progress to the project board.
# Managing product delivery, which provides an interface between the project manager and the team manager(s) by placing formal requirements on accepting, executing and delivering project work.<ref>PRINCE2 manual</ref>
# [[Managing stage boundaries]], in which the project manager prepares the information for the project board to decide whether to authorise the next stage or close the project.
# Closing a project, in which the project is the formally closed, follow-on actions are documented and assigned, lessons are learned, and benefits are evaluated.

===People in PRINCE2===
The 7th edition of PRINCE2 introduced a major new aspect to the method - the role of people. The purpose of a project is to deliver change, which will affect the people who perform business as usual (BAU) activities. How well the project delivers the change, depends on the capabilities of the project team, the strength of the relationships between them, and the people impacted by the change. For these reasons, PRINCE2 recommends that projects must incorporate change management to be able to successfully implement the change into the organization.