Table Of ContentDirecting
Successful Projects
with PRINCE2®
The Essential Guide for Project Board Members
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First edition 2009
Second edition 2018
ISBN 9780113315727
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Contents
List of figures vii
List of tables viii
Foreword ix
About AXELOS x
Acknowledgements xii
Contents summary xiii
1 Introduction 1
1.1 The purpose of this manual 2
1.2 Why directing is important 3
1.3 Why projects matter 3
1.4 The wider project environment 3
1.5 Is a project always needed? 4
1.6 The PRINCE2 approach 5
1.7 Benefits of PRINCE2 6
2 Overview of PRINCE2 9
2.1 Structure of PRINCE2 10
2.2 PRINCE2 principles 12
2.3 PRINCE2 themes 12
2.4 PRINCE2 processes 13
2.5 What PRINCE2 does not provide 15
2.6 What defines a ‘PRINCE2 project’? 16
3 Role of senior management in PRINCE2 17
3.1 Summary 18
3.2 The PRINCE2 structure 19
3.3 Project board composition 22
3.4 The senior responsible owner role 25
3.5 Directing projects using agile delivery approaches 26
4 Duties and behaviours of senior management 27
4.1 Summary 28
4.2 Be accountable for the project 28
4.3 Provide unified direction 29
4.4 Be an effective leader 31
4.5 Delegate effectively 32
4.6 Facilitate cross-functional integration 36
iii
Directing Successful Projects with PRINCE2®
4.7 Commit resources 38
4.8 Ensure effective decision-making 39
4.9 Support the project manager 44
4.10 Ensure effective communication 45
5 Overview of senior management activities 49
5.1 Starting up a project 50
5.2 Authorize initiation 51
5.3 Authorize the project 52
5.4 Authorize a stage or exception plan 52
5.5 Give ad hoc direction 53
5.6 Authorize project closure 54
5.7 Reviewing benefits 55
6 Starting up a project 57
6.1 Summary 58
6.2 Context 58
6.3 Confirm the understanding of the project mandate 59
6.4 Appoint the executive and project manager 60
6.5 Capture previous lessons 61
6.6 Design and appoint the project management team 62
6.7 Prepare the outline business case 66
6.8 Prepare the project brief 67
6.9 Prepare the initiation stage plan 71
6.10 Tailoring guidelines 72
7 Authorize initiation 73
7.1 Summary 74
7.2 Context 74
7.3 Approve the project brief 75
7.4 Approve the initiation stage plan 77
7.5 Consequences when not approving 78
7.6 Communication 78
7.7 Suggested project board agenda 78
8 Authorize the project 79
8.1 Summary 80
8.2 Context 80
8.3 Review the end stage report for initiation 85
8.4 Approve the PID 85
8.5 Approve the next stage plan 87
8.6 Communication 87
iv
Contents
8.7 Suggested project board agenda 90
8.8 Tailoring guidelines 91
9 Authorize a stage plan 93
9.1 Summary 94
9.2 Context 94
9.3 Review end stage reports 96
9.4 Approve stage plans 97
9.5 Assess project viability 100
9.6 Communication 101
9.7 Suggested project board agenda 101
9.8 Tailoring guidelines 101
10 Authorize an exception plan 103
10.1 Summary 104
10.2 Context 105
10.3 Review end stage reports 105
10.4 Approve exception plans 106
10.5 Assess project viability 107
10.6 Communication 107
10.7 Suggested project board agenda 108
10.8 Tailoring guidelines 108
11 Give ad hoc direction 109
11.1 Summary 110
11.2 Context 110
11.3 Respond to requests 112
11.4 Respond to reports 114
11.5 Respond to external influences 115
11.6 Focus of individual board members 117
11.7 Communication 118
11.8 Tailoring guidelines when using an agile approach 118
12 Authorize project closure 119
12.1 Summary 120
12.2 Context 121
12.3 Confirm handover and acceptance 122
12.4 Approve the end project report 123
12.5 Approve the benefits management approach 125
12.6 Communication 126
12.7 Suggested project board agenda 127
12.8 Tailoring guidelines 127
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Directing Successful Projects with PRINCE2®
13 Reviewing benefits 129
13.1 Summary 130
13.2 Context 130
13.3 Hold benefits reviews 131
13.4 Close the business case 132
13.5 Communication 133
13.6 Suggested agenda for benefits reviews 133
13.7 Tailoring guidelines 134
14 Tailoring and adopting PRINCE2 135
14.1 Summary 136
14.2 Tailoring PRINCE2 to suit different projects 137
14.3 Adopting PRINCE2 in an organizational environment 143
15 Diagnosing and avoiding problems 147
15.1 Summary 148
15.2 Project performance 148
15.3 Overall performance of the organization 154
APPENDICES
A Roles and responsibilities 157
B Checklists 169
C Programmes and portfolios 177
Further research 191
Glossary 193
Index 215
vi
List of figures
Figure 2.1 The structure of PRINCE2 11
Figure 2.2 The PRINCE2 processes 15
Figure 3.1 The PRINCE2 project management team roles 20
Figure 3.2 The three principal project interests 22
Figure 4.1 Stage tolerances for budget and schedule 35
Figure 4.2 Supplier line functions 37
Figure 4.3 Use of advisory boards 44
Figure 5.1 The starting up a project process 50
Figure 5.2 Authorize initiation 51
Figure 5.3 Authorize the project 52
Figure 5.4 Authorize a stage plan 53
Figure 5.5 Authorize an exception plan 53
Figure 5.6 Give ad hoc direction 54
Figure 5.7 Authorize project closure 55
Figure 5.8 Reviewing benefits 56
Figure 6.1 Overview of starting up a project 59
Figure 6.2 The development path of the business case 66
Figure 6.3 Example of a project canvas 69
Figure 9.1 Managing by exception: profile of project board effort 95
Figure 14.1 Constraints and influences on tailoring a project 139
Figure 14.2 Tailoring PRINCE2 to create an organization’s project management method 144
Figure C.1 Functions and roles in the AXELOS best-practice guidance 178
Figure C.2 MSP governance and roles 181
Figure C.3 MoP portfolio management cycles 186
vii
List of tables
Table 2.1 The seven PRINCE2 themes 13
Table 4.1 The six tolerance areas by level 35
Table 8.1 Threat and opportunity responses 83
Table 8.2 Examples of projects of different complexity 84
Table 11.1 Project board decisions 113
Table 15.1 Resolving project business case problems 149
Table 15.2 Resolving project organization problems 151
Table 15.3 Resolving scope and quality problems 152
Table 15.4 Resolving problems with plans 152
Table 15.5 Resolving risk management problems 153
Table 15.6 Resolving change problems 154
Table 15.7 Resolving problems with progress 155
Table 15.8 Resolving problems with the organization’s overall performance 156
Table C.1 Mapping MSP and PRINCE2 themes for integration 180
Table C.2 MoP portfolio definition practices and factors to consider 187
Table C.3 MoP portfolio delivery practices and factors to consider 187
viii
Foreword
PRINCE2® is widely considered the world’s leading project management method, with PRINCE2-qualified
people working in most countries around the globe. Many companies, institutions and governmental
organizations are using the method to develop new products and services and successfully deliver change.
PRINCE2 provides tried and tested best-practice guidance from which all organizations can benefit.
This new edition of Directing Successful Projects with PRINCE2 is designed to support senior managers
undertaking project board roles. Covering the duties, behaviours, responsibilities and accountabilities expected
of project board members, it can be used as a reference tool at any stage of the project’s lifecycle to check
what the role requires. It is intended to be used in conjunction with the latest edition of Managing Successful
Projects with PRINCE2, with which it is now fully aligned.
The updated guidance will enable people running projects of any size and in any environment to effectively
control the time, cost, quality, scope, benefits and risk. It has been developed through extensive consultation
with reviewers familiar with the challenges of the project board and it draws upon the real-life experiences of
organizations in both the public and private sectors.
Good luck with directing your projects; whatever your role, experience or delivery environment, you will find
something of value in this publication.
Peter Hepworth
CEO
AXELOS Global Best Practice
ix
About AXELOS
AXELOS is a joint venture company co-owned by the UK Government’s Cabinet Office and Capita plc. It is
responsible for developing, enhancing and promoting a number of best-practice methodologies used globally by
professionals working primarily in project, programme and portfolio management, IT service management and
cyber resilience.
The methodologies, including ITIL®, PRINCE2®, MSP® and the new collection of cyber resilience best-practice
products, RESILIA®, are adopted in more than 150 countries to improve employees’ skills, knowledge and
competence in order to make both individuals and organizations work more effectively.
In addition to globally recognized qualifications, AXELOS equips professionals with a wide range of content,
templates and toolkits through its membership scheme, its professional development programme and its online
community of practitioners and experts.
Visit www.axelos.com for the latest news about how AXELOS is making organizations more effective and
registration details to join the AXELOS online community. If you have specific queries or requests, or would like
to be added to the AXELOS mailing list, please contact [email protected].
Publications
AXELOS publishes a comprehensive range of guidance, including:
●● Managing Successful Projects with PRINCE2®
●● PRINCE2 Agile®
●● Integrating PRINCE2®
●● Management of Portfolios (MoP®)
●● Managing Successful Programmes (MSP®)
●● Management of Risk: Guidance for Practitioners (M_o_R®)
●● Portfolio, Programme and Project Offices (P3O®)
●● Portfolio, Programme and Project Management Maturity Model (P3M3®)
●● Management of Value (MoV®)
●● RESILIA®: Cyber Resilience Best Practice
●● ITIL® Practitioner Guidance
●● ITIL® Continual Service Improvement
●● ITIL® Service Design
●● ITIL® Service Operation
●● ITIL® Service Strategy
●● ITIL® Service Transition.
Full details of the range of materials published under the AXELOS Global Best Practice banner, including
Directing Successful Projects with PRINCE2, can be found at:
https://www.axelos.com/best-practice-solutions
If you would like to inform AXELOS of any changes that may be required to Directing Successful Projects with
PRINCE2 or any other AXELOS publication, please log them at:
https://www.axelos.com/best-practice-feedback
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