Principles

Question 1

What are the seven Prince2 principles?

Answer 1

• Continued business justification
• Learn from experience
• Defined roles & responsibilities
• Manage by stages
• Manage by exception
• Focus on products
• Tailor to suit the project

Question 2

Explain the Prince2 ‘continued business justification’ principle…

Answer 2

• There is justifiable reason for starting the project.
• That justification is recorded and approved.
• The justification remains valid, and is revalidated, throughout the life of the project.
• The business justification drives decision-making to ensure that the project remains aligned with the benefits being sought that contribute to the business objectives.
• If a project can no longer be justified then it should be stopped.

Question 3

Explain the Prince2 ‘learn from experience’ principle…

Answer 3

• When starting a project: Previous or similar projects should be reviewed to see if lessons could be applied.
• Throughout the project: The project should continue to learn. Lessons should be included in relevant reports and reviews.
• As the project closes: The project should pass on lessons.

Question 4

Explain the Prince2 ‘defined roles and responsibilities’ principle…

Answer 4

A Prince2 project has defined and agreed roles and responsibilities within an organisation structure that engages the business, user and supplier stakeholder interests.

Question 5

All projects have the following primary stakeholders…

Answer 5

• Business: Sponsors who endorse the objectives and ensure that the business investment provides value for money.
• Users: After the project is completed, will use the products to enable the organisation to gain the expected benefits.
• Suppliers: Provide the resources and expertise required by the project.

Question 6

Explain the Prince2 ‘manage by stages’ principle…

Answer 6

The section of a project that the project manager is managing on behalf of the project board at any one time, at the end of which the project board will wish to review progress to date, the state of the project plan, the business case and the risks and the next stage plan, in order to decide whether to continue with the project.

Question 7

What two management stages must a Prince2 project have (atleast)?

Answer 7

• An initiation stage

* At least one further management stage (the more complex the project, the more management stages will be required)

Question 8

Explain the Prince2 ‘manage by exception’ principle…

Answer 8

Prince2 projects define tolerances for each project objective to establish limits of delegated authority - six aspects of performance are:
• Cost
• Time
• Quality
• Scope
• Benefits
• Risk

Question 9

Explain the Prince2 ‘focus on products’ principle…

Answer 9

Prince2 requires projects to be output oriented rather than work oriented. Prince2 calls these outputs ‘products’. Prince2 has two types of products: management products & specialist products.

• Ensures that the project only carries out work that directly contributes to the delivery of a product.
• Helps manage uncontrolled change by ensuring that all changes are agreed in terms of how they will impact project products and the business justification for the project.
• Reduces the risk is dissatisfaction and acceptance disputes by agreeing, at the start, what will be produced by the project.

The focus of products supports almost every aspect of Prince2: planning, responsibilities, status reporting, quality, change control, scope, product acceptance and risk management.

Question 10

Explain the Prince2 ‘tailor to suit the project’ principle…

Answer 10

Prince2 is tailored to suit the project environment, size, complexity, importance, team capability & risk.

The purpose of tailoring is to ensure that:
• The project management method is appropriate to the project
• Project controls are appropriate to the projects scale, complexity, importance, team capability & risk.

Tailoring requires the project board & the project manager to make proactive choices on how Prince2 will be applied.