In 2009 OGC, the owner of the project management method PRINCE2, has released a new edition of the PRINCE2 manual. In this 2009 edition there are several changes were applied to improve the method. The fundamentals of the PRINCE2 method have not changed. The most important improvement is that the underlying principles of PRINCE2 are now explicit guiding principles for the content of the themes and processes as these are defined within the method (see figure 1).
Figure 1. Differences in PRINCE2TM v2009 versus V2005
(source: Project management based on PRINCE2, 2009 Edition)
a
The principles are also emphatic guiding principles for tailoring the method to a specific project in a given context. It is explicitly stated that deviation from the use presented in the themes and processes is possible, but that if not all PRINCE2 principles are applied in a project, it can no longer be termed a PRINCE2 project. The changes that have been implemented can be distinguished according to methodical changes, changes in the structure of the manual and smaller changes within a specific theme, product or process.
a
Structural changes
The most important structural changes are:
• Firstly, of course, the new chapter that has been added in which the PRINCE2 principles are explicitly named and described.
• More attention has been paid to adapting the method to a specific project in a given context.
• This has now become a separate chapter called Tailoring PRINCE2.
• The method is less prescriptive. With regard to many subjects, it is stated that deviation from the approach described is possible. It is stated that it is better to work according to the spirit of the method than to adhere to the rules of the manual.
• The method is less bureaucratic. Sub-processes have been swapped for activities. Fewer management products have been defined.
• There is now greater emphasis on learning from experience. In the first PRINCE2 process, learning from experience gleaned from previous projects is expressly mentioned as an activity.
• Lessons now come up for discussion in all reporting and meetings. Conveying one’s own experiences to the corporate or programme management is now included during stage boundaries too.
• There is a clearer link to other OGC methods, such as Management of Successful Programmes (MSP) and Management of Risk (M_o_R).
• Strategies have been introduced for risks, quality, configuration management and communication, all in line with MSP.
• There is more reference to techniques to be used. Reference is made to frequently-used techniques, not only in planning but also for risks and (for example) the Business Case.
• Delivery of the results in stages is pointedly assumed.
a
Changes to the manual
• First of all, the manual has been reduced from some 450 pages to around 330 pages, primarily by removing duplication of components and processes.
• The components have become themes and have been put before the processes. As themes they have also become what they are, namely areas for attention, without wishing to create an impression of being integral to a project – the term ‘component’ suggests.
• The eight components have been reduced to seven themes. Configuration management has now been integrated into the Change theme.
• Control aspects have now been renamed as the Progress theme.
• The Techniques section is now defunct. The techniques are now described in the relevant themes, alongside other important techniques.
• The number of processes has been reduced from eight to seven. The Planning process has now been included as a procedure within the Planning theme. This puts planning in line with other procedures, such as those of risk management and change control, which always used to be dealt with like procedures within the components/themes.
• There are more support and guidelines for the members of the Project Board and the senior management. To this end, the OGC has even published a separate manual with a separate exam associated with it.
• The appendix incorporating risk categories has become defunct.
• The health check has now been arranged according to the different steps in the project process.
a
Detailed changes
Themes
• Business Case – The Post-Project Review Plan is now called Benefits Review Plan. This plan is now created during initiation of the project and assessed by the Project Board during project authorization. For each stage, the Benefits Review Plan is brought up to date. Justification of the project is now based on whether the project is wanted, viable and achievable. The lifecycle of the Business Case is now subdivided into developing, verifying and confirming. The Business Case now also contains an Executive summary, dis-benefits and benefit tolerances. In the case of delivery in stages, benefits reviews can be held during the project.
• Organization – The four levels of management are now called corporate or programme management, directing, managing and delivering. The Change Authority has now been included in the organization chart. The configuration librarian is now part of the Project Support. In line with MSP, the Senior User is now responsible for identifying and defining the benefits and the operational or programme management holds this role responsible for demonstrating that the benefits forecasted are being achieved. The agreements on communication are now detailed in a Communication Management Strategy.
• Quality – There is now greater emphasis on the quality of the products. The quality path has been replaced by a quality audit path with overlapping paths for quality planning and quality management and quality control. The ‘project product’ has been introduced, which refers to the project’s final product to be delivered. The Project Product Description contains the customer quality expectations, the acceptance criteria and the quality tolerances at project level. The Project Quality Plan has been replaced by the Quality Management Strategy. The Stage Quality Plan is no longer distinguished separately in the Stage Plan.
• Plans – The method now states that a Product Description is required for all products identified. In contrast to this, the technique focus on products, which is now explained within the Planning theme, is less prescriptive. Thus for external products they only ‘advise’ choosing an anomalous colour or shape, for example.
• Risks – This chapter has been completely revised and therefore ties in heavily with the Management of Risks (M_o_R) method from the OGC. The agreements on approach to risk are now set down in a Risk Management Strategy. The risk process has been modified. Risks are now distinguished according to opportunities and threats. The responsibilities of the risk owner have been extended and the role of a risk-actionee is now recognized. The Risk Log has now become a formal Risk Register, which is created during the initiation of a project.
• Change – The Daily Log is now also used to record issues and risks that can be managed informally. The change procedure has been modified. Formal issues are now recorded in an Issue Register. The configuration management has been fully integrated into the Change theme. The approach to change control and configuration management is now recorded in the Configuration Management Strategy.
• Progress – The Progress theme replaces the Control component. This theme now concentrates entirely on the implementation of the project. The control aspects in the processes Starting up and Initiating a Project and Closing a Project are now no longer dealt with within this theme.
a
Processes
• Starting up a Project (SU) – Now also specifies the review of previous lessons. The project organization, the project approach and the Project Product Description have now been incorporated into the Project Brief. The Daily Log and Lessons Log are arranged in this process.
• Directing a Project (DP) – This process now begins at the end of the SU process in response to the request to commence initiation of the project. Apart from this, the DP process in itself has largely stayed the same. However, whereas in the past the Project Board requested initiation of the process Managing a Stage Boundary and premature closure of a project, this action is now the responsibility of the Project Board itself.
• Initiating a Project (IP) – The first activities of this process are now developing the different strategies for risk management, quality control, configuration management and communication management. The Risk Register is now arranged in this process too. The ‘PID’ is now defined as the Project Initiation Documentation. It now has to be explicitly recorded in the PID how the PRINCE2 method has been tailored to a project in this context.
• Controlling a Stage (CS) – This process has largely stayed the same. Only the sub-processes ‘capture’ and ‘examine issues’ have now been merged and extended into one activity: capturing and examining issues and risks.
• Managing Product Delivery (MP) – This process has largely stayed the same. Only the responsibility for recording the risks and the results of the quality reviews has now been returned to the Project Manager or (as the case may be) Project Support.
• Managing a Stage Boundary (SB) – The name of this process is now in the singular. The action ‘update the Risk Register’ is now part of the ‘update Business Case’ activity. The PID and the Benefits Review Plan are now being updated. The products completed in the project up until that point can already be delivered in stages and transferred to the customer. The formulation of a Lessons Report and recommendations for follow-on actions can now be part of this process.
• Closing a Project (CP) – New here are the activities prepare planned closure and prepare premature closure. Separate activities for handing over projects and recommending project closure have now also been defined. In principle, the Lessons Report and the recommendations for follow-on actions are now part of the End Project Report.
a
Tailoring PRINCE2
This is a new chapter. Whereas previously this aspect was addressed separately in the various processes, it has now been merged into one chapter. This subject has also been expanded considerably with regard to what had been set down in the 2005 version of the PRINCE2 manual. A distinction is made between implementing the method in an organization and tailoring the method to a specific project in a given context. The various aspects of the project and the environment that merit adaptation of the method to the project are examined. In addition to this, the differences between project and programme management are explained and the possible connections between the project and programme organization are examined. Finally it is explained how the method can be tailored to projects of different size and complexity.
a
Appendices
• A. Arrangement of management products – The number of products has been reduced from 36 to 26. Further explanation is now given for each product. How the different management products can best be presented has been added.
• Governance – This is an entirely new appendix in which it is shown how and to what extent the PRINCE2 method covers governance of the principles of project management as published by the British Association for Project Management (not included in this book).
• B. Roles and responsibilities – The role Change Authority has been added. The role project office has become defunct. The requisite competencies for the various roles have been added.
• C. Example of product-based planning – This example has moved from the previous technique focus on products to the appendix. A Project Product Description and an example of a product breakdown structure in the form of a mind map have been added.
• E. List of terminology – This has been expanded in relation to the previous version.
• F. Other information – This contains a brief explanation of the various methodologies supported by the OGC.
a
Conclusion
So quite a lot has changed in the 2009 version, but the fundamental principals are still in place. I think the new edition is a real improvement regarding the 2005 version and easier to work with in practice. The biggest advantage are the explicitly made guidelines for tailoring PRINCE2 to your own situation.
Good luck applying PRINCE2!
PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries