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1 PRINCE2 FOR DUMMIES Introduction About This Book Foolish Assumptions How This Book is Organised Part I: How PRINCE Can Help You Part II: Working Through Your Project Part III: Help with PRINCE Project Management Part IV: The Part of Tens Part V: Appendices Icons Used in This Book Where to Go from Here Part I: How PRINCE Can Help You Chapter 1: So What s a Project Method and Why Do I Need to Use One? Getting the Low-down on PRINCE2 Giving You Some Facts about Projects Fact 1: A Lot of Projects Go Wrong Fact 2: We Know Why Projects Go Wrong Fact 3: We Know Good Ways of Preventing a lot of Those Things Fact 4: PRINCE2 is Available for Free Making Your Life Easier with PRINCE2 Clearing Up Some Misunderstandings about PRINCE Working Through Your Project Chapter 2: Outlining the Structure of PRINCE2 Getting to Know the Process Model Getting Things Going Repeating as Necessary

2 Shutting Down: Closing a Project (CP) Introducing the Component Model Knowing the Four Basic Components Opting for the Optional Components Presenting Three PRINCE Techniques Chapter 3: Getting Real Power from PRINCE2 Understanding the Problems Remembering That PRINCE Is a Tool Getting the Power: Adjustment Leaving Out Sub-Processes Adjusting The Degree To Which You Do Sub-Processes Altering The Sequence Of Sub-Processes Within A Primary Process Shifting Sub-Processes Between Primary Processes Using PRINCE in a Hurry Parallel Initiation Running the Project without a Project Plan, Just Stage Plans Taking It Seriously: Being Professional Part II: Working Through Your Project Chapter 4: Checking the Idea Before You Start Understanding Process SU Seeing Why You Just Can t Do Without Start Up Getting Start Up Done Fast Starting Start Up the Project Mandate Filling Project Roles Appointing the first two key people Appointing more Project Board roles Deciding on the Remaining Roles Checking the Project s Viability

3 Writing the Project Brief Producing the parts of the Brief Opening the Risk Log and the Daily Log Identifying Key Information Thinking through the Project Approach Planning the Planning: Initiation Making the Decision to Start or Not Chapter 5: Planning the Whole Project: Initiation Getting to Grips with Process IP Understanding Why You Need Plans Considering Project Quality Get Real Not Every Project is Safety Critical Writing a Project Quality Plan Preparing the Quality Log Planning Your Project Deciding on Management Stages Working on the Business Case and Risk Log Building the Full Business Case Analysing the Risk Identifying Levels of Authority and Controls Thinking Through Project Communications Remembering that it s good to talk Setting Up the Filing Storing stuff... And getting it back again Setting up the Issue Log and the Lessons Learned Log Preparing for the First Specialist Stage

4 Putting the PID Together Knowing why some things in the PID are Initial Looking at how you use the PID Asking the Project Board to Commit to the Whole Project Chapter 6: Preparing for a Stage in the Project Understanding Process SB Managing Stage Boundaries Providing Key Information at End Stage Triggering an End Stage Stage planning in Start Up and Initiation More about Exceptions and Stages Creating a Stage Plan for the Next Stage Using Product Planning in More Detail Preparing the Product Checklist Getting Detailed with Quality Updating the Project Organisation Building an Exception Plan Updating Project Documents and Plans Updating the Project Plan Updating the Project Quality Plan Updating the Project Approach Checking the Business Case Reviewing Risk Writing an End Stage Report Asking for Sign-Off and Authority to Proceed with the Next Stage Chapter 7: Controlling a Stage and Building the Deliverables Understanding Processes CS and MP Controlling the Stage the Project Manager

5 Controlling the Flow of Work to Teams Dealing with Problems and Other Issues Monitoring and Reporting Progress Correcting the Stage or Reporting an Exception Correcting the Stage Reporting an Exception Switching to the Team Manager Viewpoint Building the Work Package Products Receiving the Work Package Building the Products Returning Completed Products Chapter 8: Finishing the Project Closing a Project (CP) Making Sure You ve Done Everything Checking for Sign-offs and Acceptances Checking the Working Environment Storing the Project Records Looking at Business Benefits Identifying Things to Do after the Project Closing down the Risk Log and the Issue Log Recording the Follow-on Actions Reviewing How the Project Went Dealing with a Premature Close Chapter 9: Running Effective Project Boards Introducing the Process DP Understanding Five Key Principles for the Project Board Taking Ownership of the Project

6 Managing, not Working Making Sure that Authority is Sufficient Checking Availability Appointing Small Boards Taking Individual Responsibility Business Viewpoint the Project Executive User Viewpoint the Senior User(s) Supplier Viewpoint the Senior Supplier(s) Taking Joint Responsibility Making Decisions without Stepping Over the Line Listening to the Project Manager Deciding the Level of Control Setting Project Manager Authority levels Deciding on the Management Stages Fixing the Level of Risk Acceptance Determining Highlight Reporting Sorting Project Assurance Giving Advice When Asked Getting Involved at Specific Points Starting up Initiating the Project Getting Involved During a Project Stage Ending a Stage Ending the Project Part III: Help with PRINCE Project Management Chapter 10: Producing and Updating the Business Case Knowing Who s Responsible for the Business Case

7 Justifying the Project Compliance Projects Enabling Projects Benefits-driven Projects Hybrid Justifications Keeping It Current: A Living Document Getting Help When It s Getting Complicated Writing a Business Case Setting Down Best Case and Worst Case Being Sensitive Checking Whether a Benefit Really Is a Benefit Being Sure That You Can Deliver Not Claiming Benefits that Don t Exist Being prudent Avoiding Benefits Contamination Dealing with Organisational Finance Procedures Chapter 11: Deciding Roles and Responsibilities Getting the Right People Involved Understanding the PRINCE Organisation Having Roles, not Jobs Sticking to small Project Boards Seeing the Project from Three Viewpoints Viewing the Project Board as Central Keeping the Project Organisation Stable Structuring the Organisation of PRINCE2 The PRINCE Project Management Team Examining the Project Board

8 Understanding the three Project Board roles Looking at Project Assurance Knowing that Project Assurance isn t Optional Deciding how to do Project Assurance Working with, and not Against, the Project Manager Blowing the whistle Getting to Know the Project Manager Considering Team Manager(s) Knowing How Project Support Helps Setting up a Project Support Office (PSO) Appointing a Configuration Librarian Chapter 12: Planning the Project, Stages, and Work Packages Understanding the Process Model for Planning (PL) Planning: Necessary and Helpful Planning the Planning Considering Organisational Requirements Thinking About Money Planning with Products Looking at the Planning Problem Focusing First on What the Project Must Produce Identifying Products in the Project Using the Product Flow Diagram Writing Product Descriptions Looking at the Product Breakdown Structure Moving On to Activity Planning Estimating the Easy Bit Scheduling and Resourcing

9 Activity Networking and Precedence Networks Activities with Gantt Charts Activities and Resource Levelling Checking Project Risk Explaining the Plan Adding Explanations for Those Who Read the Plan Financial Planning Planning at Three Levels The Project Plan The Stage Plan Team Plans Chapter 13: Setting Up Effective Controls Controlling at Different Levels Reporting: The Time-Driven Controls Highlight reporting Checkpoint reporting Using the Event-Driven Controls Controlling the Project with Stages Making Decisions at Four Key Points Ordering Project Closure at Any Time Managing By Exception Specifying the Limits: Tolerances Knowing that Tolerances don t have to be Equal Guarding Against Wishful Thinking Tolerance Lines Outlining the Six Types of Tolerance Reporting Projections Outside of Tolerance: Exception Giving an Exception Report

10 Deciding What to Do Revising the plans Using Tolerance at Different Levels Monitoring Progress and Controlling Projects Controlling teams with Work Packages Measuring progress with the Product Checklist Avoiding Percentage Complete Recording the Controls Controlling Quality Seeking Financial Control Chapter 14: Managing Project Risk Starting with the Basics: What Is Risk? Using the PRINCE Risk Cycle Analysing Risk Identifying risks Evaluating risks Making the before or after decision Identifying suitable responses to risk Managing Risk Planning and Resourcing Monitoring and reporting Keeping Risk Assessments Up-to-Date Making a Risk Log entry Safely Leaving Out Risk Management Chapter 15: Managing Project Quality Product Planning with Quality Built In Taking Quality Seriously, Very Seriously

11 Delivering appropriate quality Sticking to quality Writing the Project Quality Plan Planning Stage- (and Team-) Level Quality Controlling and Auditing Quality Auditing and the Quality Log Making sure assurance is effective Checking Products with Quality Review Roles in the quality review Finding, not correcting, errors Staying ego-less Signing off the three options Chapter 16: Controlling the Versions: Configuration Management Operating CM Procedures Deciding How Much CM to Do Controlling management products Getting complicated Planning CM Knowing That CM is a Different Sort of Control Keeping CM Information on Products Additional information Appointing a Configuration Librarian Chapter 17: Controlling Change Allowing Change, but Not Scope Creep Taking control Avoiding a change freeze Defining a Project

12 Categorising General issue Request for Change (RFC) Off-Specification (Off-Spec) Conceding a concession Handling an Issue Logging the issue Analysing the impacts Deciding what action to take Involving the Board in Project Issues Part IV: The Part of Tens Chapter 18: Ten Ways to Make PRINCE Work Well Staying Flexible Using PRINCE Differently Keeping the Documentation Down Making PRINCE a Standard Insisting on PRINCE Training People in PRINCE Implementing Project Assurance Doing the Post Project Review (PPR) Maintaining Product Planning Using the Product Checklist Keeping the Plans Up-To-Date Chapter 19: Ten Tips for a Good Business Case Making Sure You Can Measure Benefits Understanding Which Projects Don t Have Benefits Reviewing the Business Case Regularly Being Prudent

13 Being Prudent (2) Owning the Business Case Aligning the Business Case with Corporate Requirements Standing Firm on the Figures Updating the Business Case During Stages Thinking Business Case in Issue Handling Chapter 20: Ten Things for Successful Project Assurance Making Sure You Do It Being Flexible about Assurance Selecting Experienced People Avoiding List Tickers Steering Clear of Nit-Pickers Working Co-operatively Separating Assurance and Support Being Careful When Using Other Project Managers Getting Project Board Ownership Being Clear on What You re Assuring Part V: Appendices Appendix A: Looking into PRINCE2 Qualifications Choosing PRINCE2 Training Looking at Sample Papers The Foundation Exam The Practitioner Exam Staying Up To Date Getting Qualified and Locating Exams Answers to the Sample Questions Appendix B: Glossary of the Main PRINCE2 Terms

14 Index