PeopleCert · Certificazione professionale

Il tuo hub di studio
per il PRINCE2 v7

Tutto ciò che ti serve per prepararti alla certificazione Foundation: composizione dell'esame, programma di studio settimanale e molto altro.

60 domande 60 minuti Soglia 60% Closed book Online proctored

Sezioni disponibili

Materiali disponibili dopo il riscatto del voucher

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Quick Reference Guide
Panoramica sintetica di concetti, terminologia e struttura di PRINCE2. Ottimo per ripasso rapido.
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Learner Workbook
Tutti i contenuti del corso: slide, informazioni aggiuntive, quiz e attività di apprendimento.
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Manuale ufficiale (e-book)
La base di tutto. Non utilizzabile nella Foundation, ma obbligatorio in Practitioner. Disponibile anche in formato cartaceo.
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Voucher esame
Valido 12 mesi. Riscatta subito per sbloccare tutti i materiali — non è necessario prenotare l'esame immediatamente.
Domande totali
60
multiple choice
Tempo
60'
~1 min / domanda
Sezione dominante
60%
Pratiche — 36 domande
Peso per sezione
Strategie e consigli pratici
Gestione del tempo
  • 1 minuto per domanda: non bloccarti su quelle difficili
  • Usa il flag per marcare le domande da rivedere
  • Nei secondi finali, indovina piuttosto che lasciare vuoto — nessuna penalità
Tecnica delle risposte
  • Di 4 opzioni, solitamente 2 si eliminano subito: rimane un 50/50
  • Il pattern A/B/C/D è irrilevante: non cercare sequenze
  • Puoi cambiare risposta quante volte vuoi, ma fidati del primo istinto
Logistica e ambiente
  • Stanza silenziosa, da soli — l'esame è invigilato da proctor online
  • Documento d'identità con foto obbligatorio
  • Risultati e feedback per area disponibili subito dopo l'invio
Validità e rinnovo
  • La certificazione vale 3 anni
  • Rinnovo: riesame oppure punti CPD tramite la community PeopleCert
  • Considera il Take²: secondo tentativo gratuito incluso nel voucher
Il tuo percorso verso la certificazione

2 mesi · eLearning PeopleCert · 30–60 minuti al giorno

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Una lista di attività — input → attività → output
Un processo è un to-do list strutturato di attività per gestire il progetto. Ogni processo prende degli input, esegue attività e produce output. Come una linea di produzione, una ricetta o un ATM: informazioni in entrata, elaborazione, risultato in uscita. I processi si trovano nei Capitoli 13–19 con introduzione nel Capitolo 12.
INPUT informazioni in entrata ATTIVITÀ identificare · valutare · pianificare autorizzare · monitorare · riferire OUTPUT management products, decisioni
7
processi totali
Cap. 12–19
del manuale ufficiale
15%
delle domande d'esame
PRE-PROJECT INITIATION SUBSEQUENT STAGES FINAL STAGE POST Starting Up SU · Cap. 13 Initiating a Project IP · Cap. 15 Controlling a Stage CS · Cap. 16 Managing Product Delivery · MP · Cap. 17 Managing Stage Boundary · SB · Cap. 18 ripete per ogni stage Closing a Project CP · Cap. 19 Benefit review Directing a Project (DP · Cap. 14) — Project Board · decisioni chiave lungo tutto il progetto ◆ = Project Board decision point
Cap. 13
Starting Up a Project (SU) — Pre-project
Lavoro breve e focalizzato per stabilire se il progetto è viable and worthwhile prima di impegnare risorse nell'avvio formale. Elimina i "non-runner" prima che costino troppo. In caso di progetto obbligatorio/compliance, serve per capire le implicazioni e prepararsi. Guidato dall'Executive, eseguito dal Project Manager.
01 / 07
Cap. 14
Directing a Project (DP) — Project Board · tutto il ciclo di vita
Il processo del Project Board: prende le decisioni chiave senza immergersi nella gestione quotidiana. Autorizza le fasi, decide sulle eccezioni, approva la chiusura. Si estende per tutta la durata del progetto — non è confinato a una sola fase.
02 / 07
Cap. 15
Initiating a Project (IP) — Initiation Stage
"Setting it up properly" — tutte le pratiche vengono considerate qui: chi fa cosa, Business Case dettagliato, Project Plan, come monitorare i progressi, come gestire rischi e issue. Produce il PID (Project Initiation Documentation). Se il Project Board approva, il progetto si avvia formalmente.
03 / 07
Cap. 16
Controlling a Stage (CS) — Project Manager · giorno per giorno
La gestione quotidiana del Project Manager: assegnare Work Packages, monitorare avanzamento, gestire rischi e issue, mantenere i vincoli di costo/tempo/qualità. Si assicura che i prodotti della fase vengano consegnati entro i constraint stabiliti.
04 / 07
Cap. 17
Managing Product Delivery (MP) — Team Manager
Governa il rapporto tra Project Manager e Team Manager. Il Team Manager (che può essere un terzo) accetta, esegue e consegna i Work Packages. Garantisce che i prodotti specialistici vengano realizzati rispettando i criteri di qualità concordati.
05 / 07
Cap. 18
Managing a Stage Boundary (SB) — fine di ogni fase
Attività del Project Manager al termine di ogni fase: retrospettiva sulle lezioni apprese, aggiornamento del Business Case, pianificazione dettagliata della fase successiva. Il Project Board riceve tutte le informazioni per decidere se proseguire, aggiustare o chiudere il progetto anticipatamente.
06 / 07
Cap. 19
Closing a Project (CP) — fine dell'ultimo stage
Il Project Manager verifica che il cliente sia soddisfatto del project product, valuta i risultati rispetto agli obiettivi originali e pianifica la misurazione dei benefit post-progetto. Il Project Board scioglie formalmente l'organizzazione di progetto e gli output tornano all'unità operativa.
07 / 07
Formato comune Cap. 13–19
.1 Purpose — scopo del processo .2 Objectives .3 Context — come si inserisce nel ciclo di vita .4 Activities — le attività del processo .5 Applying ★ ESAME .6 RACI responsibilities ★ ESAME .7 Relationship with practices ★ ESAME
★ RACI Tables — focus esame

Ogni attività di ogni processo ha una RACI table che definisce le responsabilità:

R Responsible — produce effettivamente l'output, fa il lavoro
A Accountable — approva e firma, detiene la responsabilità finale
C Consulted — viene consultato prima o durante l'attività
I Informed — viene informato a posteriori del risultato
Focus per l'esame — cosa studiare
Purpose di ogni processo (domanda frequente: "qual è lo scopo di…?")
RACI tables per ogni attività — chi R, A, C, I
Relazione con le pratiche — quali pratiche vengono applicate in quale processo
Sequenza — in quale fase del journey si colloca ogni processo
Management Products

Aiutano a gestire il progetto — non sono la consegna finale ma gli strumenti per arrivarci.

Es: Project Plan, Business Case, Risk Register, Communication Management Approach, End Stage Report. Descritti nell'Appendice A del manuale.

Specialist Products

Sono il risultato del progetto — ciò che il cliente si aspetta. Hanno vita operativa dopo la chiusura del progetto.

Es: nuovo sito web, database aggiornato, edificio costruito, reparto riorganizzato. Non descritti in appendice: dipendono dal tipo di progetto.

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Un aspetto del project management applicato in modo costante lungo tutto il ciclo di vita del progetto
Pensala come un topic di project management: ogni pratica fornisce linee guida su come gestire quell'aspetto specifico. Le pratiche vengono applicate attraverso i processi e hanno una relazione con ciascuno dei 7 principi.
7
pratiche totali
60%
delle domande d'esame
Cap. 4–11
del manuale ufficiale
Business Case Cap. 5 Organising Cap. 6 Plans Cap. 7 Quality Cap. 8 Risk Cap. 9 Issues Cap. 10 Progress Cap. 11 CAPITOLO 4 → Introduzione alle pratiche
Cap. 5
Business Case
Perché stiamo facendo il progetto. Cos'è un Business Case, come si sviluppa nel ciclo di vita, chi è responsabile, come si lega ai principi. La domanda fondamentale: il gain supera il pain?
01 / 07
Cap. 6
Organising
Chi fa cosa nel progetto. Ruoli e responsabilità, struttura del team, Project Board (Executive, Senior User, Senior Supplier), Project Manager e Team Manager.
02 / 07
Cap. 7
Plans
Come e quando sviluppare i piani. Project Plan, Stage Plan, Team Plan. Quando pianificare le stage boundaries e come strutturare il lavoro nei vari livelli gerarchici.
03 / 07
Cap. 8
Quality
Cosa stiamo consegnando. Definire e misurare la qualità degli output lungo il progetto. Strettamente legata a Plans: prima si definisce il prodotto (Product Description), poi il piano.
04 / 07
Cap. 9
Risk
E se? — eventi imprevisti che possono impattare gli obiettivi. Come identificare, valutare e rispondere ai rischi. Risk Register, appetito al rischio, tolleranze.
05 / 07
Cap. 10
Issues
Cosa succede quando emergono problemi o richieste di cambiamento. Tre tipi: problemi (issue/concern), richieste di cambiamento (change request), non-conformità (off-specification). Issue Register, Change Authority.
06 / 07
Cap. 11
Progress
Come si sta andando? — meccanismi per misurare l'avanzamento reale rispetto alle stime. Tempo effettivo, consegna prodotti, costi sostenuti, benefit realizzati. Highlight Report, Checkpoint Report, tolleranze.
07 / 07
Formato comune Cap. 5–11
.1 Key message — scopo della pratica .2 Guidance for effective management .3 Techniques — tecniche di supporto .4 Applying — come applicarla .5 Management products ★ ESAME .6 Roles & responsibilities ★ ESAME .7 Relationship with principles ★ ESAME
★ Focus per l'esame Foundation

Per ogni pratica, le domande d'esame si concentrano principalmente su:

Management products — quali documenti/registri produce e usa
Ruoli e responsabilità — chi crea, aggiorna, approva
Relazione con i principi — a quale principio si collega
Le pratiche nel ciclo di vita

Le pratiche non sono sequenziali — si applicano in modo costante lungo tutti i processi, dall'avvio alla chiusura del progetto.

I processi (7) definiscono cosa si fa e quando; le pratiche definiscono come si gestisce ogni aspetto.

Dove trovarlo nel manuale
· Cap. 4 — Introduzione e struttura delle pratiche
· Cap. 5 — Business Case
· Cap. 6 — Organising
· Cap. 7 — Plans
· Cap. 8 — Quality
· Cap. 9 — Risk
· Cap. 10 — Issues
· Cap. 11 — Progress
"Una organizzazione temporanea
creata per consegnare business products
secondo un Business Case concordato"
Change Cross-functional Unique Uncertainty Temporary
Il triangolo delle performance — ruolo del PM
P.M. "ROLE" Cost Time · Scope · Quality Risks Pain Sustainability OUTPUTS
Dalla consegna al valore — Business Case
Business Case Ongoing business justification ROI? ROI? ROI? Cost Time Scope Pain ↕ Sustainability OUTPUTS Outcomes BENEFITS / GAIN VfM / ROI Executive role Measurable improvements in business performance
5 ELEMENTI INTEGRATI People Cap. 3 del manuale Project Context standalone · programma · agile · ibrido Processes × 7 Cap. 13–19 Practices × 7 Cap. 7–11 Principles × 7 Cap. 2 — obbligatori, universali
Output → Outcome → Benefit

Output — il prodotto consegnato dal progetto

Outcome — il cambiamento generato dall'uso dell'output

Benefit — il miglioramento misurabile nelle performance di business. Non necessariamente finanziario (es. riduzione CO₂, awareness).

Ongoing Business Justification

Non basta che il Business Case sia valido all'inizio — deve essere rivalutato ad ogni fine fase.

Se la giustificazione scompare, il progetto va fermato. Il mercato cambia, la strategia cambia: il BC si adatta.

Approcci di delivery

Tradizionale (sequenziale) — i benefit arrivano solo al termine del progetto.

Iterativo/incrementale (Agile) — consegne parziali con early ROI, possibilità di correzione in corsa.

Ibrido — combinazione dei due approcci.

Ruolo dell'Executive

È il garante del Value for Money e del Return on Investment.

È accountability per i benefit — non solo per la consegna degli output. Troppi project manager si concentrano sugli output dimenticando i benefit.

Learn from Experience

Uno dei 7 principi. Si applica in due modi:

→ Lezioni da progetti precedenti (Lessons Log)

Retrospettiva a fine fase (stage boundary) per influenzare la fase successiva

People — Il cuore di tutto

Le persone sono al centro dei 5 elementi integrati. Comprendere gli stakeholder — chi sono, come sono influenzati dal cambiamento, come comunicare — è fondamentale.

Senza gestione del cambiamento, gli output vengono consegnati ma le unità operative non sono pronte: i benefit non si realizzano. (Cap. 3 del manuale)

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Sacrosanct, universali, obbligatori
I principi sono le guiding obligations di ogni progetto PRINCE2 — alcuni li chiamano "mindset". Non sono negoziabili: se non li applichi tutti e 7 non stai usando PRINCE2. Si trovano nel Capitolo 2 e si applicano per tutta la durata del progetto.
01 Continued Business Justification

Il gain atteso deve superare il pain in ogni fase. Il Business Case si rivaluta formalmente ad ogni stage boundary. Se la giustificazione scompare → il progetto si ferma.

02 Learn from Experience

Da progetti precedenti (Lessons Log) e da retrospettive a fine fase (stage boundary). L'apprendimento è continuo, non solo iniziale.

03 Defined Roles & Responsibilities

Struttura di governance chiara con ruoli ben definiti. Business, utenti e fornitori rappresentati nel Project Board. Nessuna ambiguità su chi decide cosa.

04 Manage by Stages

Il progetto è suddiviso in fasi sequenziali. Il Project Board autorizza fase per fase. Ad ogni stage boundary: retrospettiva + aggiornamento BC + pianificazione fase successiva (rolling wave planning).

05 Manage by Exception

Ogni livello opera entro tolleranze predefinite su 7 dimensioni: costo, tempo, qualità, rischio, scope, benefit, sostenibilità. Dentro tolleranza → autonomia. Fuori tolleranza → escalation.

06 Focus on Products

Prima si definiscono i prodotti con criteri di qualità misurabili, poi le attività. Non si lavora "a caso" — si sa esattamente cosa si produce. Es: "pavimento legno + pareti bianche" invece di "rifare la stanza".

07 Tailor to Suit the Project

PRINCE2 è un mezzo, non il fine. Va adattato al contesto: dimensione, formalità, nomi dei ruoli. Es: "Executive" → "Senior Responsible Owner" (UK pubblico) o "Project Sponsor" (privato).

Manage by Stages — Rolling Wave Planning
Pre-project Stage 1 SB retrospettiva · BC review · next plan Stage 2 SB Stage N Closing PB autorizza PB autorizza Rolling wave: si pianifica in dettaglio solo la fase successiva Ad ogni Stage Boundary (SB): → Retrospettiva sulla fase completata → Aggiornamento formale del Business Case → Pianificazione dettagliata della fase successiva → Project Board decide: prosegui / aggiusta / scrap
Manage by Exception — Tolleranze ed Escalation
Corporate / Programme tol. progetto Project Board tol. di fase Project Manager tol. Work Package Team Manager ESCALATION costo · tempo · qualità · rischio · scope · benefit · sostenibilità
Focus on Products — prima il prodotto, poi le attività
Definisci prodotto Criteri qualità Pianifica attività Verifica accettazione (Quality Review) ✗ "rifare la stanza" ✓ "pavimento legno + pareti bianche"
Tailor to Suit — adattare il metodo al contesto
PRINCE2 metodo Piccolo Internazionale Agile Programma Stessi principi, formalità calibrata sul contesto
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Comprendere PRINCE2 v7 — teoricamente e per l'esame Foundation
Il corso è un test di conoscenza, non di competenza applicativa (quella è la Practitioner). L'obiettivo è capire il metodo in modo teorico — principi, pratiche, processi e terminologia.
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Principi
Le 7 guiding obligations su cui si basa ogni progetto
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Pratiche
I 7 aspetti di PM applicati lungo tutto il ciclo di vita
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Processi
I 7 processi step-by-step per gestire il progetto
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Quick Reference Guide
Panoramica semplice e sintetica dei concetti base, terminologia e struttura di PRINCE2. Ottimo per ripasso rapido durante la preparazione.
Subito disponibile
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Learner Workbook
Tutto il contenuto del corso: slide, informazioni aggiuntive, quiz e attività di apprendimento. Il corso segue la struttura del Learner Workbook (non quella del manuale). Fondamentale per lo studio.
Via voucher
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Manuale ufficiale — Managing Successful Projects with PRINCE2 v7
La fonte di tutto. Non utilizzabile in Foundation (closed book), ma obbligatorio in Practitioner. Leggerlo il prima possibile — capire struttura e capitoli è essenziale. Disponibile in digitale (e-book) o cartaceo.
Priorità alta
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Voucher esame · PeopleCert
Riscattare subito — sblocca tutti i materiali. Non è necessario prenotare l'esame immediatamente. Valido 12 mesi. Considera il Take²: secondo tentativo gratuito incluso.
Riscatta subito
Struttura dell'esame in sintesi
Foundation 60 domande 60' minuti 60% pass mark 36 risposte giuste Closed book 4 opzioni per domanda (A/B/C/D) · solo 1 corretta Online · proctored PeopleCert · risultati immediati
Strategia consigliata da Tony Perks
① Prima passata — rispondi alle domande facili Raggiungi la "critical mass" · usa il flag per le difficili ② Torna alle domande flaggiate Stesso approccio · se ancora incerto, flaga di nuovo ③ Ultimi minuti — indovina, non lasciare vuoto Nessuna penalità · 25% di probabilità vale la pena Attenzione · Il pattern A/B/C/D è irrilevante — non cercare sequenze · Puoi cambiare risposta, ma fidati del primo istinto · Non rivedere all'ultimo: si tende a cambiare risposte giuste in sbagliate
Ambiente
Stanza silenziosa, da soli. Webcam attiva. Documento d'identità con foto obbligatorio. Proctored da PeopleCert.
Risultati
Immediati dopo l'invio. Il feedback indica il punteggio e le aree di forza/debolezza per sezione.
Validità · Rinnovo
Certificato valido 3 anni. Rinnovo: riesame oppure punti CPD tramite la PRINCE2 community PeopleCert.
💡 La tecnica del 50/50 — come affrontare le domande difficili
Come in Who Wants to Be a Millionaire? — delle 4 opzioni puoi quasi sempre scartare 2 immediatamente (le "opzioni sciocche"). Ti rimane un 50/50 sulle restanti. La Foundation non richiede conoscenza profonda ma riconoscimento dei concetti chiave: la risposta giusta spesso "suona" più PRINCE2 delle altre.
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Lo scopo di ogni progetto è introdurre un cambiamento — e il cambiamento riguarda le persone
Come viene implementato il cambiamento determina quanto il progetto avrà successo. Dipende dalle capabilities del team, dalla forza delle relazioni tra i membri e dalle persone impattate dal cambiamento stesso — gli stakeholder.
Fig. 3.3 — People central to the method
Leading successful change Communi- cation Leading successful teams People central to the method
Fig. 3.2 — Project & Organizational ecosystem
Organizational ecosystem Project ecosystem Suppliers fornitori Business business layer Users utenti finali Stakeholder: interni + esterni
Transizione degli stati — Change Management
Current State routine · cultura Interim State(s) fine di ogni stage Target State obiettivo del BC Enabling activities: formazione · reskilling · training · helpline · buddy system
Management Product: Change Management Approach
Scopo: stabilire lo stato organizzativo obiettivo e i mezzi con cui il business transita dallo stato corrente.
· Scope — cosa cambia, cosa è escluso
· Change states — corrente, intermedio, obiettivo
· State characteristics — routine, processi, cultura, responsabilità, capacità
· Enabling activities — prima / durante / dopo la transizione
· Resources · Responsibilities · Tools · Standards · References
⚠️ Exam tip:
Le approaches si trovano sempre nel PID e vengono definite nel processo Initiating a Project.
Definizione: Stakeholder
"Qualsiasi individuo, gruppo o organizzazione che può influenzare o essere influenzato da (o si percepisce influenzato da) il progetto."
Include sia chi ha un ruolo formale nel team di progetto, sia chi — pur senza ruolo formale — è impattato dal progetto o è critico per il suo successo. Gli stakeholder possono essere interni o esterni al team e al business (es. utenti finali, sindacati, auditor, enti regolatori).
Tipologie di team e approccio
Co-located info fluisce organicamente canali formali+informali Remote approccio strutturato e deliberato Hybrid evitare gruppi più/meno coinvolti APPROCCI COMUNI · Shared culture, values, goals, information, ways of working · Kickoff events · Away days · Team building · Co-location temporanea · Collaboration · Co-creation · Rispetto reciproco · Ruoli chiari · Tecnologia a supporto (per team remoti e ibridi)
Leadership vs Management
I team di progetto sono temporanei e spesso lavorano oltre i confini organizzativi (multi-organizzazione, terze parti). Richiedono uno stile di leadership diverso rispetto ai team ordinari — senza team building esplicito la fiducia non si forma.
Cultural Intelligence
La capacità di relazionarsi e lavorare attraverso culture diverse all'interno dell'ecosistema organizzativo. In progetti internazionali o multi-fornitore è una competenza critica del Project Manager.
Definizione: Culture
L'insieme di atteggiamenti, valori, obiettivi e modi di lavorare condivisi che caratterizzano un gruppo di persone.
Communication: bidirezionale, non solo broadcast
Project Team broadcast feedback · ascolto Stake- holders Key Influencers La maggior parte della comunicazione avviene fuori dai canali formali — è inutile tentare di controllarla
Management Product: Communication Management Approach
Scopo: definire mezzi e frequenza della comunicazione con l'ecosistema di progetto — bidirezionale, non solo in uscita.
· Scope — cosa sarà gestito
· Stakeholder analysis — chi è impattato, chi ha influenza
· Schedule & procedures per gruppo: scopo, frequenza, canali, messaggi
· Responsibilities · Resources · Tools · Standards · References
💡 Principio chiave:
La comunicazione è tanto ascolto quanto broadcast. Agisce su percezioni e preoccupazioni prima che diventino rischi più seri. Va aggiornata ad ogni Stage Boundary.
Change Management Approach
Stato corrente → stati intermedi → stato obiettivo. Enabling activities, risorse, responsabilità, strumenti, standard.
Legata a: Leading successful change
Communication Management Approach
Stakeholder analysis, schedule per gruppo, responsabilità, risorse, strumenti, standard. Bidirezionale: ascolto + trasmissione.
Legata a: Communication
★ Errori tipici — e punti critici per l'esame
Non confondere ruolo PRINCE2 (es. Executive) con job title aziendale (es. Director)
La comunicazione non è solo broadcast — va ascoltata e resa bidirezionale
Non interpretare la non-compliance come "cattiva volontà" — verificare se cultura e processi siano disallineati
Il team è temporaneo: senza team building esplicito la fiducia non si forma spontaneamente
Le approaches si trovano nel PID, vengono create durante Initiating a Project
Non escalare ciò che si può decidere localmente — ma non decidere localmente ciò che supera la propria tolleranza
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"Stabilire meccanismi per valutare se il progetto è e rimane desirable, viable e achievable"
Il Business Case risponde alla domanda fondamentale: perché stiamo facendo questo progetto? Lega direttamente al principio "Continued Business Justification" — deve essere valido dall'inizio alla fine del progetto.
Desirable
I benefici attesi superano il pain (costi, sforzo, rischi) della realizzazione. Il gain deve valere la candela.
Viable
Abbiamo le risorse necessarie per realizzarlo: fondi, persone, tecnologia. Il progetto è fattibile.
Achievable
Gli output prodotti porteranno effettivamente all'outcome e ai benefit attesi. Il risultato è raggiungibile.
Catena di valore del progetto
OUTPUT (Specialist Products) es. nuovo ristorante + personale formato CAPABILITY set completo di output per l'outcome OUTCOME es. servire pizze ai clienti BENEFIT es. +20% ricavi misurabile DIS-BENEFIT conseguenza negativa prevista e certa BUSINESS OBJECTIVES
Output
Il prodotto tangibile o intangibile consegnato dal progetto. Es: nuovo sito, database aggiornato, hotel ristrutturato, personale formato.
Outcome
Il cambiamento derivato dall'utilizzo dell'output. Influenza comportamenti e circostanze reali. Es: grazie al personale formato, il ristorante riesce a servire pizze.
Benefit
Il miglioramento misurabile risultante dall'outcome. Non necessariamente finanziario: può essere riduzione CO₂, brand awareness, KPI operativi.
Dis-benefit ≠ Rischio
Conseguenza negativa prevista e certa del cambiamento. Es: il centro commerciale out-of-town ridurrà il traffico in centro città. Non è un rischio (evento incerto) — è una conseguenza diretta attesa. Va mitigata (parcheggio gratuito, riduzione tasse, bus) e il suo costo va incluso nel BC.
PRE-PROJECT INITIATION DELIVERY STAGES CLOSING + POST Project Mandate Starting Up a Project (SU) Project Brief Outline Business Case Go/No-go Initiating a Project (IP) PID (incl. Full Business Case) Authorize Controlling a Stage Highlight Reports Stage Boundary End Stage Report PID update + next plan BC mantenuto dal PM fase per fase — aggiornato nel PID ripete Next stage? Closing a Project End Project Report Lessons Report Benefits Review post-progetto Directing a Project (DP) — Project Board decisions: Go/No-go · Authorize stages · Authorize closure Business Case: Outline BC Full Business Case (nel PID) Maintained (aggiornato ad ogni SB + nel PID) Confirmed + ongoing benefit review Nel Outline BC si valutano le opzioni: Do Nothing · Do the Minimum · Do Something Beyond the Minimum In un progetto iterativo/agile, la fine di ogni stage può essere anche un Benefits Review Point
Business Case · App. A11

Il documento centrale della pratica. Si sviluppa da Outline BC (nel Project Brief) a Full BC (nel PID), mantenuto e aggiornato per tutta la durata del progetto.

Benefits Management Approach

Definisce come, quando e chi misurerà i benefit — sia durante il progetto sia oltre la sua chiusura. Parte integrante del PID. Include la baseline "as-is" per confronto.

Sustainability Management Approach

Gestisce gli obiettivi di sostenibilità del progetto (es. riduzione CO₂, documentazione cartacea). Chi misura, come si misura, quando. Anch'esso parte del PID.

Business Layer Accountable per il Project Mandate e per l'identificazione dell'Executive.
Executive Accountable per Return on Investment e Value for Money. Detiene il Business Case. È il garante del BC per tutto il progetto.
Senior User Specifica i benefit target attesi e riporta i benefit effettivi realizzati. È chi riceve gli output e deve trasformarli in valore operativo.
Project Manager Sviluppa e mantiene il Business Case durante tutto il progetto. Produce l'Outline BC nel brief, il Full BC nel PID, aggiorna il BC ad ogni Stage Boundary.
Senior Supplier Se commerciale, ha il proprio Business Case per partecipare. Responsabile della fornitura dei prodotti e del rispetto dei vincoli di qualità.
Project Assurance Verifica e monitora il Business Case durante tutto il progetto per conto del Project Board. Attenzione a queste parole all'esame.
★ Focus per l'esame — punti critici
Dis-benefit ≠ Rischio: il dis-benefit è una conseguenza certa e prevista, il rischio è un evento incerto
Sequenza BC: Outline BC → Full BC → Maintained BC → Confirmed BC
Chi specifica i benefit target? Senior User (non l'Executive)
Chi è accountable per il ROI? Executive
Project Assurance verifica e monitora il BC — non lo sviluppa
I benefit post-progetto sono responsabilità del business layer operativo, non del PM

PRINCE2 defines a four-step technique for managing the business case throughout the project lifecycle: Develop · Check · Maintain · Confirm.
An alternative organisational procedure may be used instead — but this must be documented as a tailoring decision in the PID.

Fig. 5.3 — Business Case through the project lifecycle
Pre-project
Initiation
Subsequent delivery stages
Final stage
Post
DEVELOP business case
MAINTAIN business case
outside lifecycle
CHECK
outline BC
full BC
updated BC
updated BC
CONFIRM
confirm benefits
confirm benefits
confirm ↑
Develop: PM (delegated)
Check: Project Board · Maintain: PM
Confirm: Executive → Senior User
01 · Develop Pre-project → Initiation stage

Explore options and get the right information upon which investment appraisal decisions can be made. The project mandate activates Starting Up a Project, which produces the outline business case (in the project brief). During Initiating a Project the outline BC is refined into the full business case (in the PID).

Three options always evaluated: Do nothing · Do the minimum · Do more than the minimum "Do nothing" is always the baseline for quantifying the others
02 · Check Project Board at every key decision point

Assess whether the project is (still) desirable, viable and achievable. Performed by the Project Board as a minimum at:

·End of Starting Up a Project → authorise project initiation (checks outline BC)
·End of Initiating a Project → authorise the project (checks full BC)
·End of each stage → authorise next stage (checks updated BC)
·When assessing an Exception Plan → authorise revised stage
03 · Maintain Project Manager · during every stage

Keep the business case updated with actual progress and current forecasts (including forecast benefits). The PM reviews the impact of new risks and issues on the BC's continued viability, then updates the BC at the end of each stage as part of Managing a Stage Boundary.

New risk recorded? Assess impact on BC → Maintain step Benefits outside tolerance? → Escalate
04 · Confirm Mostly post-project · also during iterative delivery

Assess whether the intended benefits have been (or will be) realised. Confirming benefits mostly takes place after the project has closed, though benefits may be confirmed during the project when products are delivered iteratively.

During project: Executive ensures benefit reviews are planned Post-project: responsibility transfers to Senior User / business layer
Develop
Check
Maintain
Confirm
Explore options & build the BC
Still desirable, viable, achievable?
Update with actuals & forecasts
Benefits realised?
PM (delegated)
Project Board
PM
Executive → Senior User
Pre-project + Initiation
Decision points
During stages
Post-project (mainly)
Investment Appraisal Techniques
Whole Life Costs
Total cost of implementation including transitional, operational and maintenance costs over the product's entire life.
Net Benefits
Total value of benefits minus cost of implementation, transition and ongoing operation, over a defined period.
ROI — Return on Investment
Profits or savings resulting from investments expressed as a percentage of the initial investment.
Payback
Measure of the time required to recover (remunerate) the investment of cash and other resources.
NPV — Net Present Value
Uses a discount rate to account for the time value of money. At 6% discount rate, money halves in value approximately every 12 years. Example: £500k benefit in year 12 = £250k in today's money.
Internal Rate of Return
Percentage indicating the rate of return on investment when the NPV equals zero.
Options Analysis
Compares options by scoring each against weighted assessment criteria. Pairwise comparison can differentiate between options to establish the shortlist and preferred option.
Sensitivity Analysis Cap. 5.3.2.1

Adjusting the input factors to model the point at which the output factors no longer justify the investment. It tests the robustness of the business case by revealing how sensitive it is to changes in key assumptions.

Input Factors
· Project costs
· Timescale
· Quality targets
· Scope
· Project risks
Output Factors
· Operations & maintenance costs
· Business benefits
· Business risks
Sensitivity Analysis — finding the break-even point
Timescale Business Value 0 Break-even point ✓ Viable ✗ No longer justified 4 months ✓ 6 months ✗ Net business value
💡 Exam example — from the PRINCE2 manual
"A project might be worthwhile if it can be done in four months but ceases to be worthwhile if it was to take six months." The sensitivity analysis identifies this break-even point by adjusting the timescale input and observing the impact on business value output.
Multi-Case Model — Cap. 5.3.2.2

Evaluates investments from multiple perspectives rather than focusing solely on financial return. A robust investment must satisfy ALL perspectives.

Strategic
Understanding the drivers for change and demonstrating how the investment provides strategic fit.
Economic
Identifying the option that delivers best value, including wider social, environmental and sustainability considerations.
Financial
Assessing affordability, funding, budgeting and cashflow over the life of the project and project product.
Commercial / Implementation
Showing that the preferred option can be delivered by service providers and that robust arrangements are in place.
Best / Expected / Worst-Case Benefits — Cap. 5.3.2.3

When using an iterative-incremental approach (Agile), scope is flexible. Benefits should be expressed as a range (not a single target), relating to the amount of scope delivered. Three scenarios: Best case · Expected case · Worst case.

5.1
PURPOSE
"To establish mechanisms to judge whether the project is (and remains) desirable, viable, and achievable as a means to support decision-making in its continued investment."
5.2
GUIDANCE FOR EFFECTIVE BUSINESS CASE MANAGEMENT
Outputs → Capabilities → Outcomes → Benefits → Business Objectives. Dis-benefits are negative measurable outcomes.
Business Case: documents justification based on estimated costs vs expected benefits offset by risks. Includes cost-benefit, risk analysis, timescales.
Benefits Management Approach: management actions to ensure outcomes are achieved and benefits realized.
Sustainability Management Approach: actions and controls to meet sustainability performance targets.
4-step management technique (Fig 5.3): Develop (SU/IP) → Maintain (each SB) → Check (DP at each stage) → Confirm (post-project, Senior User).
5.3
TECHNIQUES
Business Case Management TechniqueDevelop → Maintain → Check → Confirm. Fig 5.2 multi-investment model: investment perspective, options analysis, ROI (NPV, payback, IRR), risk analysis, sensitivity analysis.
Options analysisUsually 3 options: do nothing, do the minimum, do the recommended option. Each option evaluated for desirability, viability, achievability.
Sensitivity analysisTests how the BC changes if assumptions change — e.g. if benefits are 20% lower, is the project still viable?
5.4
APPLYING THE PRACTICE
Organizational contextBC aligns to corporate strategy. In a programme: project BC aligned to programme BC. Benefits usually managed by the programme.
Commercial contextCustomer and supplier each need their own aligned BC. Executive ensures compatibility. Supplier BC may be private.
Delivery methodAgile: BC may show best/expected/worst case for scope (Must/Should/Could). Benefits evolve through iterations. Higher uncertainty → test assumptions quickly.
SustainabilitySustainability targets (e.g. carbon reduction, UN SDGs) documented as sustainability tolerances in the BC and sustainability management approach.
5.5
MANAGEMENT PRODUCTS
Business CaseDocuments business justification: reasons, benefits, risks, costs, timescales, investment appraisal, options. Lives in PID.
Benefits Management ApproachHow benefit measurement will be managed. Includes benefit tolerances, review schedule, responsibilities. Updated throughout project.
Sustainability Management ApproachActions and controls for sustainability targets. May include ESG, UN SDGs, net zero commitments.
5.6
FOCUS OF KEY ROLES
Business LayerSets mandate + standards for BCHolds Senior User accountable for post-project benefits. Sets project-level benefits tolerance.
ExecutiveAccountable for BC throughoutApproves Benefits Management Approach. Ensures project remains desirable, viable, achievable. Secures funding.
Senior UserAccountable for specifying desired outcomes and benefitsAgrees Benefits Management Approach. Provides benefits tolerance. Confirms post-project benefit reviews.
Senior SupplierReviews BC to confirm supplier costs represent value for moneyProvides realism on cost, feasibility, and timing.
PMPrepares and maintains BC and Benefits Management ApproachHighlights BC impacts from issues/risks. Produces End Project Report evaluating against BC.
Project AssuranceChecks BC against project progressConfirms BC validity to PB. Reviews exception reports for BC impact.
5.7
KEY RELATIONSHIPS WITH PRINCIPLES
Ensure continued BJCreating and maintaining a BC to assess desirability, viability, achievabilityConfidence that investment is worthwhile
Learn from experienceUsing lessons to inform business justificationBC built on proven foundations
Define rolesClarifying responsibilities for developing and maintaining BCClear expectations for BC and benefits management
Manage by stagesChecking BJ at each stage boundaryConfidence investment remains justified
Manage by exceptionMeasuring impact of issues/risks on BC; escalating when forecast to exceed tolerancesClear understanding of potential BC impacts
Focus on productsEnsuring products lead to required outcomes and benefitsAchievable project benefits
Tailor to suitFormality of BC development appropriate to project type/size/complexityGovernance fit for purpose
🔍
"To document the user's requirements of the project's products and to establish the means by which they will be met"
Quality is concerned with ensuring that the project's products meet the user's requirements and expectations and enable the desired benefits to be realized. It is easier and cheaper to correct quality issues early than when the finished product is being tested — or worse, in operational use.
Key quality terminology — these 6 terms form a hierarchy from the user's initial expectations down to the measurable criteria applied to each individual product. Understanding how they connect is essential for the exam.
Quality
The degree to which a set of inherent characteristics of a product, service, process, person, organisation, system, or resource fulfils its requirements.
The overarching concept — "fit for purpose". Quality is about the product meeting what was asked for, not about it being expensive or elaborate.
User's Quality Expectations
A statement about the quality expected from the project product, captured in the Project Product Description during Starting Up a Project.
The starting point — the user's "wish list" in their own words, before it is translated into measurable criteria. High-level, not yet testable.
Acceptance Criteria
A prioritised list of criteria that the project product must meet before the user will accept it. Captured in the Project Product Description. Often prioritised using MoSCoW.
The pass/fail conditions for the whole project. Measurable and testable. "The hotel must achieve 90% occupancy within 6 months." Agreed between Senior User and Executive.
Quality Specifications
A description of the quality measures that will be applied by those performing quality control, and the levels the finished product must meet. Defined in each Product Description.
The detailed, product-level measurable requirements. "Engine must accelerate 0–60mph in 4.2–4.5 seconds." Lower level than acceptance criteria — one per product, not per project.
Requirement
A need or expectation that is documented in an approved management product.
A formal, documented need that the project must satisfy. Requirements can change — PRINCE2 anticipates this and addresses changes through issue management (change requests).
Quality Tolerance
The permissible deviation in a product's quality that is allowed before the deviation needs to be escalated to the next level of management. Defined in the Product Description.
The acceptable range around a quality specification. "0–60mph in 4.2–4.5 seconds" — the ±0.15s range IS the quality tolerance. Exceeding it triggers an exception.
How these terms connect — from expectations to specifications
User's Quality
Expectations
→ refined into → Acceptance
Criteria
→ detailed into → Quality
Specifications
→ bounded by → Quality
Tolerance
Project Product Description → Product Descriptions → Quality Management Approach → Quality Register
Quality Planning
The capturing of quality specifications for project products and generating the associated product descriptions and quality management approach. Specifying what quality means for each product.
Outputs: Project Product Description · Product Descriptions · Quality Management Approach
Quality Control
The procedures to monitor products and their development to determine whether they comply with relevant standards, and identify ways to minimize causes of unsatisfactory performance. Checking that quality is delivered.
Outputs: Quality Register updates · Acceptance Records · Product Register
Quality Assurance
A planned and systematic activity that provides confidence that products will meet their defined quality specifications. Independent of the project management team. Typically a business function — NOT the same as Project Assurance.
⚠️ QA ≠ Project Assurance: QA is product-focused, independent of the whole team. PA is independent of the PM only, reports to PB.
3 Quality Control Roles — who does what in quality control
Producer
The person or team responsible for creating the product. They implement the quality methods defined in the product description.
Reviewer
Must be independent of the producer to avoid conflict of interest. Assesses whether the product meets its quality or acceptance criteria as defined in the product description.
Acceptance Authority
The person or group responsible for deciding if a product is acceptable. Can be the project board — but the board may delegate acceptance authority for some products. Delegation must be stated in the Quality Management Approach.
Fig. 8.1 — Product Quality Lifecycle
Quality planning Quality control From user: Quality Expectations Quality Management Approach Product Descriptions Quality specs Quality methods Quality Register Quality control activities Product Register Acceptance Product QUALITY ASSURANCE Indipendente dal project management team Tipicamente funzione del business Verifica rispetto degli standard Project Assurance (vicina al PB) ISO · GDPR · cybersecurity standards QA ≠ Project Assurance: Project Assurance è indipendente dal PM, non dal progetto
★ Distinzione critica per l'esame: QA vs QC vs Project Assurance
Quality Control — eseguito all'interno del project management team (Team Manager). Verifica che i prodotti soddisfino le quality specs durante il Work Package.
Quality Assuranceesterna al project management team. Tipicamente una funzione del business. Verifica il rispetto degli standard di qualità da un punto di vista indipendente.
Project Assurance — indipendente dal Project Manager ma non dal progetto. Supporta il Project Board nel monitorare la qualità. Non va confusa con Quality Assurance.
App. A Product Description
Scopo: descrivere lo scopo, la composizione, la derivazione e le quality specifications di un prodotto. Prodotta nella fase di pianificazione, appena si identifica il prodotto.
· Identifier · Version · Purpose
· Composition · Format · Derived from
· Quality specs · Quality tolerance
· Quality methods · Skills required
· Dev/production approach
· Responsibilities: Producer · Reviewer · Acceptance authority
Nel PID Quality Management Approach
Scopo: descrivere le tecniche e gli standard di qualità da applicare e le responsabilità per raggiungere le quality specifications e gli acceptance criteria durante il progetto.
· Scope
· Quality management procedures (QP + QC)
· Responsibilities (user, business, support)
· Resources · Supporting tools
· Standards applicabili (ISO, GDPR…)
· References
Project Log Quality Register
Scopo: riassumere tutte le attività di quality management pianificate o avvenute. Usato da PM e Project Assurance per revisionare i progressi. Risultati tipici: pass / fail.
· Quality identifier
· Product identifier
· Quality method
· Dates (planned + actual)
· Responsibilities
· Result (pass/fail) · Records
Project Log Product Register
Scopo: elencare tutti i prodotti richiesti da un piano e il loro stato corrente.
· Product identifier
· Dates (PD approval + acceptance)
· Status + version number
· Link alla Product Description
Business Layer Fornisce dettagli del quality management system aziendale e degli standard applicabili. Imposta le quality tolerance a livello di progetto. Fornisce expertise per la QA.
Executive Approva la Project Product Description e la Quality Management Approach. Imposta le quality tolerance a livello di fase. Conferma l'accettazione del project product.
Senior User Fornisce quality expectations e acceptance criteria. Approva la Project Product Description e le Product Descriptions dei prodotti specialistici. Accetta il project product ed è accountable per l'accettazione.
Project Manager Consulta gli stakeholder per catturare quality expectations e acceptance criteria nella Project Product Description. Prepara Quality Management Approach e Product Descriptions. Assicura che i Team Manager implementino i quality control measures.
Senior Supplier Approva la Project Product Description (se appropriato). Concorda Quality Management Approach, Product Descriptions e tecniche di qualità. Fornisce risorse per le quality activities.
Team Manager Assiste il PM con Product Descriptions. Implementa i quality management procedures del Work Package. Gestisce i quality controls e assembla i quality records. Aggiorna il PM sullo stato di qualità dei prodotti.
Project Assurance Consiglia il PM sulla Quality Management Approach. Conferma al Project Board che l'approccio è conforme alle policy aziendali. Rivede le Product Descriptions. Assicura la corretta conduzione delle quality procedures.
Project Support Supporto amministrativo per i quality controls. Prepara e mantiene il Product Register e il Quality Register. Assiste Team Manager e membri con le quality procedures.
★ Punti critici per l'esame
Quality Assurance è indipendente dal PM team · Project Assurance è indipendente solo dal PM
Chi accetta il project product? Senior User — ed è accountable per l'accettazione
Chi mantiene Quality Register e Product Register? Project Support
La Quality Management Approach è nel PID e viene creata durante Initiating a Project
Se un prodotto non supera il QC: si valuta rispetto a quality tolerance — se fuori tolerance → issue management
La Product Description include: Producer · Reviewer · Acceptance authority
8.1
PURPOSE
"To document the user's requirements of the project products and to establish the means by which they will be met."
8.2
GUIDANCE FOR EFFECTIVE QUALITY MANAGEMENT
Quality planning: define user quality expectations, acceptance criteria, quality specifications. Captured in Project Product Description and Product Descriptions.
Quality control: actual activities checking products meet quality criteria — inspections, testing, reviews. Producer creates, Reviewer checks, Approver/Customer accepts.
Quality assurance: independent check that the quality management approach is being correctly applied. Performed by Project Assurance on behalf of PB.
Product-based quality: define quality criteria in Product Description before delivery. Prevents rework. Links directly to Focus on Products principle.
8.3
TECHNIQUES
Quality Review TechniqueStructured product review: prepare, review meeting, follow-up actions. Roles: producer, reviewer, chair, administrator.
Product DescriptionDefines purpose, composition, derivation, quality criteria, quality method, quality responsibilities (producer/reviewer/approver). App. A10.
TestingFunctional, performance, user acceptance. Common in IT projects.
Walkthrough / InspectionPeer review of documents or code. Less formal than quality review.
Statistical sampling / auditUsed in manufacturing or large-scale compliance projects.
8.4
APPLYING THE PRACTICE
Organizational contextExisting quality management systems (ISO 9001, etc.) may influence the quality management approach. Lessons from past projects inform quality planning.
Commercial contextSupplier quality standards must be checked for compatibility with project quality requirements. Acceptance criteria must be shared with suppliers.
Delivery methodAgile: quality embedded in iterations (Definition of Done). Quality review at sprint/timebox end. Less reliance on end-gate review.
ScaleLarge projects: formal QMS, dedicated QA team. Small projects: PM may combine with Project Support. Quality activities proportional to risk.
SustainabilitySustainability targets become quality criteria in product descriptions (e.g. carbon footprint per unit, recyclability percentage).
8.5
MANAGEMENT PRODUCTS
Quality Management ApproachDescribes the quality techniques and standards to be applied and the roles and responsibilities for achieving the required quality specifications and acceptance criteria. Contains: scope, quality management procedures, responsibilities, tools/techniques, standards, references. Part of PID.Created in IP · Approved by PB · Reviewed at each SB
Product DescriptionsOne per product. Contains: identifier, version, purpose, composition, format, derivation, quality specifications, quality tolerance, quality methods, quality skills required, responsibilities (producer / reviewer / acceptance authority). Basis for work packages and acceptance. App. A10.Created in plans process · Approved by Senior User · One per product
Quality RegisterPart of the Project Log. Summarises all quality management activities that are planned or have occurred. Used by PM and Project Assurance as part of reviewing progress. Contains: quality identifier, product identifier, quality method, planned/actual dates, responsibilities, result (pass/fail), records.Maintained by Project Support throughout the project
Product RegisterPart of the Project Log. Lists all products required of a plan and their status. Contains: product identifier, dates (description approval + acceptance), status (in development / accepted), version number, reference to product description.Maintained by Project Support · Updated as products progress
8.6
FOCUS OF KEY ROLES
Business LayerProvides details of the business quality management system and applicable standards. Sets project-level quality tolerance. Provides quality assurance expertise.Quality standards / tolerance set at project level
ExecutiveApproves the project product description. Approves the quality management approach. Sets stage-level quality tolerance. Confirms acceptance of the project product.Approval of key quality planning outputs + final acceptance
Senior UserProvides user's quality expectations and acceptance criteria. Approves project product description. Agrees quality management approach. Approves product descriptions for specialist products. Provides people/resources for user quality activities and product acceptance. Accepts the project product — accountable for acceptance.Primary driver of quality requirements · accountable for product acceptance
Senior SupplierApproves project product description (if appropriate). Agrees quality management approach. Agrees product descriptions for key specialist products. Agrees quality techniques and tools adopted in product development. Provides people/resources for supplier quality activities.Technical quality standards and feasibility
PMConsults stakeholders to capture user's quality expectations and acceptance criteria. Consults stakeholders to prepare the quality management approach and product descriptions. Ensures team managers implement agreed quality control measures. Develops product descriptions for key products.Quality planning and control across the whole project
Project AssuranceReviews that quality planning is correct and appropriate. Confirms QMA is being applied correctly. Checks product descriptions for completeness. Audits quality activities on behalf of the PB.Independent assurance that quality is being managed correctly — on behalf of PB
Project SupportMaintains the quality register. Administers quality review meetings. Distributes products for review.Quality register maintenance + admin support for quality activities
Team ManagerAssists PM with preparing and maintaining product descriptions and work package descriptions. Produces products consistent with their product descriptions. Implements quality management procedures agreed in work package descriptions. Updates quality register. Notifies PM of quality issues.Execution of quality control at work package level
8.7
KEY RELATIONSHIPS WITH PRINCIPLES
Ensure continued BJDesigning and delivering products that meet quality specs required by the BCProducts achieve desired outcomes aligned with business strategy
Learn from experienceIncorporating lessons from quality control into planning for subsequent stagesRecurring improvement of quality management approach
Define rolesEstablishing roles and responsibilities for quality within the projectClear accountability for quality planning, control, and assurance
Manage by stagesAligning quality controls and techniques with stages and stage boundary controlsEarly identification of quality issues; avoiding cost of rework
Manage by exceptionEstablishing quality tolerances approved by PB in PIDEfficient means for PM to take decisions and report exceptions
Focus on productsBasing all quality planning and control activities on the project productsEffective communication; avoidance of conflicts over user quality expectations
Tailor to suitRequiring only quality activities appropriate to delivery method and product characteristicsRight balance between quality, delivery activities, and resources
★ Exam focus — CH8 critical distinctions
QA ≠ Project Assurance: Quality Assurance is independent of the whole project team (business function). PA is independent of the PM only (reports to PB). Sample Paper Q34.
Quality Register purpose: "summarise all quality management activities planned or occurred" — not products. Sample Paper Q33.
Product Register purpose: "list all products required of a plan and their status" — not quality activities.
Reviewer must be independent of the producer — to avoid conflict of interest. Non-negotiable in PRINCE2.
Requirements will change — PRINCE2 anticipates this. Handle changes through Issue Management (requests for change).
Senior User is accountable for acceptance of the project product at closure.
Quality purpose: "to document the user's requirements… and establish the means by which they will be met" — Sample Paper Q32.
Quality specifications live in Product Descriptions. Acceptance criteria live in Project Product Description.
⚠️
"To identify, assess, and control uncertainties that would affect the project's objectives, and, as a result, improve the ability of the project to succeed"
A risk is an uncertain event or set of events that, should they occur, will affect the achievement of objectives. Risk exposure is a neutral concept — risks include both threats (negative) and opportunities (positive).
Risk Probability
The estimated chance that a risk will occur. Often scored 1–5 (1 = very rare, 5 = almost certain).
Risk Impact
The estimated effect on objectives should a risk occur. Scored 1–5 (1 = insignificant, 5 = catastrophic).
Risk Exposure
Probability × Impact. If exposure exceeds risk tolerance → action required. Neutral concept: applies to threats and opportunities.
Risk Proximity
How near in time a risk might occur. Determines when risk management actions need to be in place.
Risk Velocity
How quickly a risk would have an impact on objectives should it occur. Fast velocity = less time to react.
Risk Appetite
The amount and type of risk the organisation is willing to take in pursuit of its objectives. Set by the business layer.
Risk Tolerance
A measurable threshold for the tolerable range of risk outcomes. Documented in the business case. Breach → escalation.
Risk Budget
Ring-fenced funds to cover the cost of risk responses and contingency actions. Part of the project budget.
Risk Cause / Event / Effect
Because [known situation / cause], if [risk event], then [effect on objectives].
Fig. 9.2 — The wheel
COMMUNI-
CATE
throughout
Identify
Assess
Plan
Implement
① Identify
Review the plan's context and objectives so threats and opportunities can be identified. Define risk categories (PESTLE, SWOT, horizon scanning). Capture risks on the risk register as: Because [cause], if [event], then [effect].
② Assess
Prioritise risks by scoring probability × impact = risk exposure. Compare against risk tolerance. Evaluate the combined risk profile (worst-case scenario) against risk appetite. Use risk matrices (1–5 scales).
③ Plan
Decide on risk responses (see table below) and monitoring arrangements. Assign a Risk Owner and Risk Action Owner for each risk. Risk responses are added to the stage plan.
④ Implement
Establish monitoring arrangements and execute actions for priority or realised risks. Review effectiveness of responses. Take corrective action where responses don't match expectations.
⑤ Communicate (runs throughout all steps)
Risk information is communicated continually — within the project ecosystem and to external stakeholders. Communicated via: checkpoint reports · highlight reports · end stage reports · exception reports · end project reports.
🔴 Threat Responses — minimise
Avoid
Eliminate the risk entirely — must be 100% effective. Often requires changing the delivery approach or stopping an activity. Example: not using a commercial supplier at all removes the risk of them going bust.
Reduce
Lower the probability and/or impact. Most common response. Example: supplier due diligence reduces the chance of them failing. Residual risk remains after reduction.
Transfer
Move the financial impact to a third party. Does not reduce probability. Example: insurance, warranty agreements, escrow agreements.
Share
Consortium/partnership working — share the pain AND the gain. Example: retail parks, recycling plants, film co-productions.
Accept
Do nothing — consciously take on the risk. Appropriate when the cost of mitigation exceeds the risk's impact. Must be a deliberate decision.
Prepare Contingent Plans
Have a Plan B ready. Actions are not taken until/unless the risk occurs. Funded from the risk budget.
🟢 Opportunity Responses — maximise
Exploit
Capture new benefits not in the original business case. Example: using a sports stadium for concerts in addition to sport fixtures.
Enhance
Maximise benefits already identified — e.g. finding cheaper suppliers, opening a hotel early to capture Christmas revenue.
Transfer / Share
Pass the opportunity to a better-placed party, or share the gain with partners through consortium working.
Accept
Passively accept the opportunity and take advantage if it arises, without proactively investing to make it happen.
Residual & Secondary Risks
Residual risk — risk remaining after a response has been applied (unless Avoid). Always documented in the risk register.
Secondary risk — new risk introduced as a consequence of implementing a risk response. Example: switching from commercial to internal staff introduces risk of staff burnout.
Risk Owners
Risk Owner — assigned to take responsibility for responding to a risk. Should be the person most capable of managing it. Typically a Project Board member.
Risk Action Owner (risk actionee) — nominated owner of agreed actions to respond to a risk. Often the project manager. May be the same person as the risk owner.
Too many risks allocated to one person should be avoided.
Risk Register — key fields
· Risk ID · Author · Date registered
· Risk cause · Risk event · Risk effect (because / if / then)
· Category · Threat / Opportunity
· Probability · Impact · Proximity · Velocity
· Risk exposure (P × I)
· Response type · Actions planned
· Risk owner · Risk action owner
· Residual risk · Status
Management Products
Risk Management Approach — part of the PID. Describes procedures, techniques, standards and responsibilities. Created in Initiating a Project, reviewed at each stage boundary.
Risk Register — dynamic project log maintained throughout the project. Created in Initiating a Project, maintained by Project Support. Reviewed at every stage boundary.
★ Exam focus — critical points
Risk = uncertain event. Dis-benefit = certain negative outcome. Never confuse them
Communicate runs throughout all 5 steps — it is not a final step only
Avoid must be 100% effective — if not, it's Reduce
Risk exposure = Probability × Impact. If > risk tolerance → must act
Risk Management Approach is in the PID, created during Initiating a Project
Risk Register maintained by Project Support
Residual risk = risk left after response. Secondary risk = new risk caused by a response
Exploit (new benefits) ≠ Enhance (maximise existing benefits)
9.1
PURPOSE
"To identify, assess, and control uncertainties that would affect the project's objectives, and, as a result, improve the ability of the project to succeed."
9.2
GUIDANCE FOR EFFECTIVE RISK MANAGEMENT
Risk: an uncertain event/set of events that, should they occur, will affect the achievement of objectives. Has cause, event, and effect.
Key terms: risk appetite (acceptable risk level) · risk tolerance (acceptable deviation before escalation) · risk owner · risk actionee · risk budget · risk velocity · proximity.
Threats vs Opportunities: both are risks. Threats = negative impact; opportunities = positive impact. Both must be identified, assessed, and responded to.
Risk profile / matrix: plots probability vs impact. Combined with risk appetite to prioritise responses. Risks above risk tolerance escalated.
5-step technique: Identify → Assess → Plan → Implement → Communicate (continuous thread).
9.3
TECHNIQUES
5-step risk management procedure (Fig 9.2)Identify (risk cause, event, effect) → Assess (probability, impact, proximity) → Plan (select response) → Implement (assign owner/actionee) → Communicate (throughout).
Threat responsesAvoid · Reduce · Transfer (share) · Accept · Prepare contingency. ARTAP mnemonic.
Opportunity responsesExploit · Enhance · Share · Reject. EESR mnemonic.
PESTLE analysisPolitical, Economic, Social, Technological, Legal, Environmental — for identifying external risks.
Pre-mortemImagining the project has already failed; working backwards to identify causes.
Probability/impact matrixVisual risk prioritisation tool.
9.4
APPLYING THE PRACTICE
Organizational contextRisk management approach aligns with corporate risk frameworks. Existing risk registers or lessons logs inform risk identification.
Commercial contextSupplier risks (financial viability, capability) must be assessed. Contractual risk transfer (insurance, warranties) documented.
Delivery methodAgile: risks may be captured in the product backlog or sprint planning. Risk review at timebox end. Higher tolerance for small risks in iterative delivery.
ScaleLarge projects: dedicated risk manager, formal risk workshops. Small projects: PM manages risk register informally. Risk budget proportional to risk exposure.
SustainabilitySustainability risks (regulatory, reputational, environmental) captured in risk register. Sustainability tolerance may trigger risk escalation.
9.5
MANAGEMENT PRODUCTS
Risk Management ApproachDescribes how risk management will be applied: procedures, risk tolerance, roles, risk budget, reporting frequency. Part of PID.
Risk RegisterLiving record of all identified risks: cause, event, effect, probability, impact, status, owner, actionee, response. Part of Project Log.
9.6
FOCUS OF KEY ROLES
ExecutiveSets project risk toleranceAccountable for risk management approach. Approves risk budget.
Senior UserIdentifies risks from user perspectiveEnsures user-side risks (adoption, benefit realisation) are managed.
Senior SupplierIdentifies risks from supplier/technical perspectiveProvides technical risk assessment. Manages supplier risk.
PMCreates and maintains risk management approach and risk registerReviews and updates risks regularly. Takes corrective action within stage tolerance. Raises exceptions for risks forecast to exceed tolerance.
Team ManagerIdentifies and reports risks at work package levelRaises issues to PM when WP risks forecast to exceed WP tolerance.
Project AssuranceReviews risk management approach for appropriatenessChecks BC impact of risks. Assures PB that risk management is being applied.
9.7
KEY RELATIONSHIPS WITH PRINCIPLES
Ensure continued BJAssessing whether identified risks have a material impact on the BCIncreased confidence that investment is worthwhile and risks acceptable
Learn from experienceUsing lessons to inform risk identification and managementResponses based on effective foundations from previous experience
Define rolesClarifying responsibilities for identifying, managing, and reporting risksClear expectations for risk management responsibilities
Manage by stagesEnsuring stage boundary decisions are informed by risksDe-risking project by using stages as formal stop-go decision points
Manage by exceptionEmpowering those best placed to own risks; escalating risks forecast to exceed tolerancesThreats and opportunities managed at the appropriate level
Focus on productsUnderstanding risks associated with defining, developing, and delivering productsClear understanding of threats and opportunities for each product
Tailor to suitRisk management approach appropriate to type, size, complexity of projectEfficient management of threats and opportunities aligned to organisational standards
CH16 — Controlling a Stage (CS)
Project Manager's perspective. Assign work, monitor progress, handle issues, take corrective action, report highlights to PB — ensuring stage remains within tolerances.
Trigger: Stage authorized (or Exception plan authorized)
CH17 — Managing Product Delivery (MP)
Team Manager's perspective. Control the link between PM and TM — agreeing requirements for acceptance, execution, reporting and delivery of specialist products.
Trigger: Work package authorized (from CS)
Purpose: to assign work, monitor such work, handle issues, report progress to the project board, and take corrective actions to ensure that the stage remains within the tolerances set by the project board.
·Attention focused on delivery of the stage's products — avoid uncontrolled change
·Risks and issues are controlled
·The business case is kept under review
·Agreed products meet quality expectations and are accepted
·Project management team focused on delivery within established tolerances
Fig. 16.1 — Controlling a Stage (CS) — Activity cycle
Directing a Project (Project Board)
↑ Exception raised ↑ Request for advice ↓ Project board's advice → Stage boundary approaching → Project end approaching
CONTROLLING A STAGE — PM's day-to-day cycle
Authorize a
Work Package
→ MP process
Evaluate Work
Package Status
via checkpoint reports
Receive Completed
Work Package
← from MP process
Capture Issues
and Risks
Take Corrective
Action
within tolerance
Escalate Issues
and Risks
Exception Report → DP
Evaluate Stage Status → Report Highlights (PM → PB, time-driven)
→ Stage boundary approaching → Managing a Stage Boundary → Project end approaching → Closing a Project
① Authorize a Work Package
PM assigns work to TMs via Work Package Descriptions (App. A15). Project work should only commence with PM consent. PM co-creates the WP description with the TM, confirms they have accepted it and authorises them to begin. Triggers the MP process.
② Evaluate Work Package Status
Regular assessment of WP status via checkpoint reports from TMs. Frequency and formality aligned with WP description. PM reviews progress, quality activities, issues and risks.
③ Receive Completed Work Package
When TM notifies WP completion, PM verifies the work is indeed complete and products are accepted. Triggers next WP or stage boundary. Project log updated.
④ Capture Issues and Risks
Triggered by new issues or risks arising during the stage. PM captures them on the Issue Register / Risk Register, assesses impact and determines response.
⑤ Take Corrective Action
Minor adjustments to keep the stage within tolerance. PM decides without needing PB approval. Example: moving a team member between work packages. Reported in next Highlight Report.
⑥ Escalate Issues and Risks → Evaluate Stage Status → Report Highlights
If stage tolerance is forecast to be exceeded → Exception Report to PB. PM also produces time-driven Highlight Reports to keep PB informed of overall stage progress.
Purpose: to control the link between the project manager and the team manager. Achieved by agreeing requirements for acceptance, execution, reporting and delivery of specialist products.
·Work on products allocated to the team is authorised and agreed
·TMs and teams are clear on what is to be produced and what effort, cost and timescales are expected
·Planned products delivered to quality expectations and within tolerances
·Accurate progress information provided to PM at an agreed frequency
Fig. 17.1 — Managing Product Delivery (MP) — Team Manager's cycle
← Work package authorized (from Controlling a Stage)
① Accept a Work Package
TM discusses with PM · confirms understanding of PD · has resources · agrees tolerances · produces optional team plan
② Execute a Work Package
Supervise team · produce specialist products · send checkpoint reports → PM · raise issues · carry out quality checks
③ Evaluate & Notify Completion
Assess WP progress · update quality register · notify PM of completion · PM verifies products are accepted
→ Completed work package notice → back to Controlling a Stage
① Accept a Work Package
TM discusses the WP with PM — ensures they understand the Product Description, quality specification, quality controls, way of working and reporting requirements. TM must have the resources to do it. TM would not accept work they don't understand or can't resource. May produce an optional Team Plan for their workforce.
② Execute a Work Package
TM supervises the workforce, delivers the specialist products, carries out quality checks and sends regular checkpoint reports to PM. Also notifies PM of any issues. Liaises with Project Support to update the Quality Register when checks are carried out.
③ Evaluate & Notify Work Package Completion
TM evaluates progress, updates or ensures Project Support updates the Quality Register, and notifies PM that the WP is complete. PM then verifies acceptance. This triggers the "Receive Completed Work Package" activity in CS.
Purpose: to describe how one or more products will be produced and delivered. Used to pass responsibility for work formally to a team manager or team member. Fundamentally important to CS because it relates to PRINCE2's principle of "focus on products".
· Product descriptions
· Quality requirements and controls
· Interfaces with other WPs
· Stage tolerance allocated to TM
· Reporting requirements and frequency
· Constraints and dependencies
Process
Key Inputs
Key Outputs
CS
(CH16)
Stage authorized · Checkpoint reports · Completed WP notices · New issues/risks · Project board's advice · PID / Stage plan
Work package descriptions · Highlight reports · Exception reports · Updated project log · Stage plan (updated) · Stage boundary approaching →SB · Project end approaching →CP
MP
(CH17)
Work package authorized (from CS) · Product descriptions · Team plan (optional)
Checkpoint reports → CS · Completed work package notice → CS · Updated quality register
★ Exam focus — critical points
CS is the PM's process. MP is the TM's process. Both run concurrently during delivery.
Work only commences with PM consent — via authorised WP description.
TM sends checkpoint reports (time-driven) to PM. PM sends highlight reports (time-driven) to PB.
TM cannot raise Exception Reports — only Issues to the PM.
Corrective action = PM within stage tolerance. Exception Report = forecast exceeding stage tolerance → PB.
PM is a facilitator, not just a controller — relationship with TM is collaborative.
TM updates (or ensures PS updates) the Quality Register when quality checks are done.
Team plan is optional — not mandatory in MP. WP description is mandatory.
🔄
"Enable the project manager to provide the project board with sufficient information to review the current stage, prepare the next stage plan, review the updated project plan and confirm continued business justification and acceptability of risks"
This process is executed at or close to the end of each stage. Think of it as a review and retrospective — looking back at the current stage and preparing the project board to commit to the next one.
Trigger 1 — Normal
Stage boundary approaching — the planned end of the current stage. A loose trigger: the PM begins SB activities when the stage end is in sight. Produces the next stage plan.
Trigger 2 — Exception
Exception plan request from the Project Board — issued in response to an Exception Report when stage or project tolerances are forecast to be exceeded. Produces an exception plan instead of a stage plan.
·Assure the project board that all products in the current stage plan have been completed and approved
·Prepare a stage plan or exception plan for the next stage
·Review and update the PID (business case, project plan, quality expectations, approaches, team structure, role descriptions)
·Provide information for the project board to assess continuing project viability
·Record lessons that can help later stages of this project or future projects
·Request authorisation to start the next stage
Fig. 18.1 — Managing a Stage Boundary
Directing a Project (Project Board)
↑ Exception plan approval request ↓ Exception plan request
MANAGING A STAGE BOUNDARY
Stage boundary approaching
(from Controlling a Stage)
OR
Exception plan request
(from Directing a Project)
Prepare next stage plan
Prepare exception plan (if required)
Update the project plan
Update the business case
Evaluate the stage → End Stage Report
Request next stage → Next stage request (to Directing a Project)
← Initiating a Project (first SB) ← Controlling a Stage (subsequent SBs)
① Prepare the next stage plan
The stage plan for the next stage is produced near the end of the current stage using rolling wave planning. The PM consults with the project board, project assurance, team managers and stakeholders. Produces: Stage Plan, updated Product Descriptions, updated Product Register, updated Project Log and Quality Register.
Input: Stage boundary approaching · PID · Project Plan · Project Log
① (alt) Prepare the exception plan — if required
Triggered by an Exception Plan Request from the Project Board (following an Exception Report). The exception plan replaces the current stage plan or project plan. Its approval by the Project Board marks a new stage boundary.
Input: Exception plan request · Exception Report · PID · Project Plan · Project Log
② Update the project plan
Update the high-level project plan to reflect actuals from the current stage and the new stage plan. Ensures the project plan remains a realistic picture of delivery through to completion.
③ Update the business case
Review and update the business case with current actuals and latest forecasts. Also update the Benefits Management Approach if required. This is the Maintain step of the BC management technique.
④ Evaluate the stage
Review success of the current stage against its plan. Includes reviewing the PID for needed updates (approaches, team structure, role descriptions). Record lessons. Produce the End Stage Report which assures the Project Board the current stage products are completed and approved.
Output: End Stage Report · updated Project Log
⑤ Request the next stage
The PM cannot arbitrarily move to the next stage — they submit a Next Stage Request (or Exception Plan Approval Request) to the Project Board via Directing a Project. The PB then decides whether to authorise, adjust or stop the project.
Inputs
Activities
Outputs
Stage boundary approaching
OR Exception plan request
PID (review)
Project Plan (review)
Project Log (check)
Prepare next stage plan
Prepare exception plan
Update project plan
Update business case
Evaluate the stage
Request next stage
End Stage Report
Stage Plan (next stage)
Exception Plan (if triggered)
Updated PID
Updated Business Case
Next Stage Request →DP
Stage Plan — normal end of stage
Trigger: stage boundary approaching
Produced by: Project Manager
Approved by: Project Board (Directing a Project)
Replaces: nothing — it is the plan for the next stage
Exception Plan — tolerance breach
Trigger: Exception Plan Request from Project Board
Produced by: Project Manager
Approved by: Project Board (Directing a Project)
Replaces: the current stage plan or project plan
Submitted same way as a stage plan — approval = new stage boundary
★ Exam focus — critical points
SB is triggered by stage boundary approaching OR exception plan request — two separate triggers
The PM cannot move to the next stage without Project Board authorisation
The exception plan replaces the current stage plan — its approval marks a new stage boundary
SB is the Maintain + Check step of the BC management technique
Common trap: confusing Controlling a Stage (day-to-day PM) with Managing a Stage Boundary (end-of-stage review)
Exception Report is raised in Controlling a Stage — Exception Plan is produced in Managing a Stage Boundary
Key output: End Stage Report + Stage Plan / Exception Plan + updated PID
Agile analogy: Managing a Stage Boundary = retrospective and sprint planning combined
📋
"To collect and assess issues and control changes to the project's baseline"
In PRINCE2, issue management encompasses change control. As a project progresses, issues of many types will arise — they must be captured, assessed and resolved at the right level of authority. Uncontrolled changes to the baseline are a key threat to project success.
Issue
An event relevant to the project that requires project management consideration.
Change
A modification to any of the approved management products that constitute the project baseline.
Project Baseline
The current approved versions of management products and project products that are subject to change control.
Change Control
The process by which changes that may affect the project baseline are identified, assessed, and then approved, rejected, or deferred.
Change Budget
Ring-fenced money (or authorised constraints) set aside to cover changes. Allocated to those with delegated authority.
Change Authority
Optional role to which the Project Board may delegate responsibility for approving requests for change or off-specifications. Given a change budget.
Concession
An off-specification that is accepted by the Project Board without corrective action. The baseline is updated to reflect the concession.
Problem
An issue with an immediate and negative impact. Requires urgent attention.
Concern
An issue whose timeliness and impact need to be assessed. Not yet causing harm but warrants monitoring.
Event External to the Project
An event outside the project that may impact the project in some way. E.g. new legislation, corporate strategy change.
Business Opportunity
An issue that represents unanticipated positive consequences for the project or user organisation.
Request for Change
A proposal for a change to a baseline — either adding a new product (scope) or changing the quality of an approved product.
Off-Specification
A product that will not meet its quality specifications. Often raised by Team Manager to PM. If accepted = concession.
Fig. 10.1 — PRINCE2 Issue Management Technique
Project Board / Change Approval Authority
↑ Request for advice ↓ Request for advice or exception report
CAPTURE
Determine issue type
Determine severity/priority
Register the issue
ASSESS
Assess impact on BC & risk profile
Check severity/priority
RECOMMEND
Identify options
Evaluate options
Recommend options
DECIDE
Escalate if beyond tolerance
Approve / Reject
Ask for exception plan
Request more info
IMPLEMENT
Take corrective action
Update records & project baseline
Project Log: Issue Register
① Capture — Issue Register (A:13) or Daily Log
All issues are captured — formally on the Issue Register (part of Project Log, App A13) or informally on the Daily Log for trivial issues. Issue type, severity and priority are determined. Stakeholders are encouraged through the Communication Management Approach to raise issues freely.
② Assess — Issue Report (A:7)
Assess impact on the Business Case and project risk profile. For formal changes, an Issue Report (App A7) is opened. Key question: "Does this issue affect the project? If so, how?" The assessment considers cost, time, risk, scope and quality implications.
③ Recommend
Identify and evaluate options. Make a recommendation to the decision authority. For changes: consider whether benefits justify the cost of implementation and strategic alignment.
④ Decide — PM (small) or Project Board / Change Authority (big)
Decision depends on tolerance: if within PM's stage tolerance → PM decides. If beyond tolerance → escalate to Project Board (via Exception Report). The Project Board may delegate to a Change Authority. Possible decisions:
Do it — approve the change
Defer it — delay decision
Reject it — decline the change
Request more info
Ask for exception plan
⑤ Implement
Take corrective action. Update the Issue Register and affected management products. Update the project baseline. Enable configuration control through version records and archives of superseded versions.
Request for Change
A proposal to change an approved baseline. Two forms: (1) adding a new product to scope, or (2) changing the quality of an already-approved product.
Example: "Why don't we add a swimming pool to the hotel?" (new product) or "Why don't we make the pool 50m instead of 20m?" (quality change)
Decisions: Approve · Reject · Defer · Request more info
Off-Specification
A product that will not meet its quality specifications. Often raised by Team Manager to PM when a supplier fails to deliver as specified.
Example: Diving board quoted at £10k but cheapest alternative is £60k — cannot deliver as specified within tolerance. Raised as off-spec → options to PB: find extra money OR deliver without it (concession).
If accepted by PB without corrective action → Concession. Baseline updated. If rejected → resolve via change budget, exception plan or contractual remedy.
Issue Management Approach · In PID
Defines how issues will be managed: capture procedures, change control, tolerance thresholds, change authority delegation, change budget. Created in Initiating a Project.
Issue Register · App. A13 · Project Log
Dynamic log of all formal issues raised during the project. Fields: ID, description, type, grading, owner, decision, status, dates. Trivial issues → Daily Log.
Issue Report · App. A7
Formal analysis of a specific issue: impact on BC, options, recommendation, decision. Created for RFC and off-specifications requiring formal assessment.
★ Exam focus — critical points
Issue management encompasses change control — they are the same practice
Concession = off-spec accepted by PB without corrective action. Baseline updated.
Decision authority: within tolerance → PM decides. Beyond tolerance → Project Board
Change Authority is optional — PB may delegate but remains ultimately accountable
Issue Management Approach is in the PID, created in Initiating a Project
Trivial issues → Daily Log. Formal issues → Issue Register
Off-spec rejected → resolve via change budget / exception plan / contractual remedy
Assess step: "Does this issue affect the project? If so, how?" — always against the Business Case
10.1
PURPOSE
"To collect and assess issues and control changes to the project's baseline."
10.2
GUIDANCE FOR EFFECTIVE ISSUE MANAGEMENT
Issue: any event relevant to the project requiring PM consideration. 6 types: Problem · Concern · External event · Business opportunity · Request for change (RFC) · Off-specification.
Change: modification to any approved management product constituting the project baseline. Project baseline: current approved versions of management products subject to change control.
Change budget: money (or time) set aside to fund approved changes. Allocated by those with delegated authority. Separate from risk budget.
Change Authority: person or group delegated by PB to approve changes within a defined budget. Reduces PB overload. Composition in Issue Management Approach.
Concession: off-specification accepted by PB without corrective action. Issue must still be formally raised and resolved.
10.3
TECHNIQUES
1. CaptureDetermine issue type. Assess severity/priority. Register in issue register (or daily log if informal).
2. AssessAssess impact on BC and project risk profile. Check severity/priority. Determine who has authority to decide.
3. RecommendIdentify options. Evaluate options. Recommend options (PM or Change Authority).
4. DecideEscalate if beyond delegated authority. Approve, reject, defer, or ask for more information.
5. ImplementTake corrective action. Update records and project baseline if necessary.
10.4
APPLYING THE PRACTICE
Organizational contextExisting change management procedures may inform the issue management approach. Lessons from past projects on types of issues commonly encountered.
Commercial contextChanges affecting commercial suppliers require careful handling — change requests may trigger contract amendments, additional costs.
Delivery methodAgile: changes incorporated into product backlog, reprioritised each sprint. Change budget may be time rather than cost. Off-specs resolved in timebox reviews.
ScaleLarge: formal Change Authority with defined budgets. Small: PM handles all issues informally via daily log. Change budget proportional to project complexity.
SustainabilityIssues that impact sustainability targets require escalation. Off-specs against sustainability criteria need PB decision.
10.5
MANAGEMENT PRODUCTS
Issue Management ApproachDescribes how issues will be captured, assessed, managed and resolved. Includes change budget, change authority composition. Part of PID.
Issue RegisterRecords all formal issues: type, severity, impact, status, resolution. Part of Project Log.
Issue ReportProduced for significant issues requiring PB/Change Authority decision. Includes analysis, options, recommendation.
10.6
FOCUS OF KEY ROLES
Executive / PBSets change budget and authority levelsApproves Issue Management Approach. Makes decisions on issues beyond PM authority.
Change AuthorityApproves changes within delegated budgetKeeps issue register updated. Reports to PB on change budget usage.
PMManages day-to-day issues and corrective actionMaintains issue register. Raises Exception Report to PB when stage tolerance forecast to be exceeded.
Team ManagerIdentifies and reports WP-level issues to PMRaises issues (not Exception Reports) when WP tolerance at risk.
Project AssuranceReviews change management approach for complianceChecks that baselines are maintained and changes are properly controlled.
Project SupportMaintains issue register and project baseline documentationAssists in distributing issue reports and tracking resolutions.
10.7
KEY RELATIONSHIPS WITH PRINCIPLES
Ensure continued BJAssessing impact of issues and changes on BC viabilityIssues and changes managed to protect investment justification
Learn from experienceUsing issue logs and lessons from past projects to anticipate and manage issuesBetter preparation for known issue types
Define rolesClarifying responsibilities for issue identification, assessment, and resolutionNo ambiguity over who decides what, at what level
Manage by stagesReviewing open issues at stage boundaries as part of SB assessmentIssues properly tracked and formally closed at stage boundaries
Manage by exceptionEscalating issues only when they exceed delegated toleranceRight issues escalated to right level; PB not overwhelmed with trivia
Focus on productsEnsuring changes to scope (product baseline) are formally controlledScope creep prevented; product baseline maintained
Tailor to suitFormality of issue and change control proportional to project size, risk, and commercial contextEfficient change management without unnecessary bureaucracy
Purpose — 3 objectives
Establish mechanisms to monitor and compare actual achievements against those planned
Provide a forecast for the project's objectives and continued viability
Control any deviations causing an exception
Progress
The measure of the achievement of the objectives of a plan.
Forecast
A prediction made by studying historical data and past patterns.
Exception
A situation where it can be forecast that there will be a deviation beyond the agreed tolerance levels.
Corrective Action
A set of actions to resolve a deviation within tolerance — taken by the PM without escalation.
Fig. 11.1 — Deming Cycle
Plan-Do
Check-Act
PLAN
DO
CHECK
ACT
Continuous improvement
throughout the project
Delegating Tolerance & Reporting Progress — Fig. 11.2
Business Layer
Corporate / Programme
↓ Project tolerances
↑ Project status / Exception report
Project Plan
Project tolerances
Project Board
Directs the project
↓ Stage tolerances
Highlight Report
↑ Stage progress / Exception report
Stage Plan
Stage tolerances
Project Manager
Day-to-day management
↓ Work package tolerances
Checkpoint Report
↑ Work package progress / Issues
Work Package Description
WP tolerances
Team Manager
Delivers work packages
Raises issues (not exceptions)
Work in progress
Time
Permitted to deliver later or earlier than agreed target date. E.g. ±4 months.
Cost
Degree of permissible overspend or underspend. E.g. £4M ±£1M.
Quality
How much something can vary from agreed quality criteria. E.g. 0–60 in 4.2–4.5 sec.
Scope
Permissible variation of plan's products. Used in agile (MoSCoW). Time/cost fixed → scope flexible.
Risk
Limits on the plan's aggregated risks. Exposure > tolerance → action required.
Benefit
Permissible under/over-delivery of benefits. E.g. 70–90% room occupancy in first 6 months.
Sustainability
Limits on agreed sustainability metrics. E.g. reduce CO₂ by 8–12%. PRINCE2 v7 addition.
⏱ Time-driven Controls
Controls that occur at predefined periodic intervals. Frequency and format agreed per project.
Checkpoint Report
Team Manager → Project Manager. Status of the work package at regular intervals defined in the WP description. Can be oral, text, email or stand-up.
Highlight Report
Project Manager → Project Board. Summary of stage status at intervals defined by the PB. Enables PB to monitor the project plan.
These are the ONLY TWO time-based controls in PRINCE2.
⚡ Event-driven Controls
Controls that occur when a specific event happens — not on a schedule.
End of a stage
Triggers Managing a Stage Boundary — stage plan, end stage report, PID update.
Completion of PID
Triggers PB decision to authorise project (or not).
Exception Report raised
When PM forecasts stage/project tolerance will be exceeded. Triggers PB decision.
Organisational events
E.g. end of financial year, change of corporate strategy.
Team Manager Tries to work within work package tolerance. If unable → raises an issue to the PM. Cannot raise exceptions — only issues.
Project Manager Works within stage tolerance. Minor deviations → corrective action (no escalation needed, reported in next Highlight Report). If stage tolerance forecast to be exceeded → raises Exception Report to Project Board.
Project Board Reviews Exception Report. Decides: give more time/resource · request Exception Plan · mothball or close project. If project tolerance also forecast to be exceeded → escalates to Business Layer.
Business Layer Receives project-level exceptions from the PB. May redirect the project, provide additional funding, or close it. Ultimate authority — no further escalation above this level.
Checkpoint Report
Team Manager → PM. Time-driven. WP status, products completed, quality activities, issues/risks, WP tolerance status.
Highlight Report
PM → PB. Time-driven. Stage summary: actuals, forecasts, corrective actions, stage/project tolerance status, key issues/risks.
Exception Report
PM → PB. Event-driven. Raised when stage or project tolerance forecast to be exceeded. Requests PB steer/decision.
End Stage Report
PM → PB. Event-driven (end of stage). Produced in Managing a Stage Boundary. Assures PB that stage products are complete.
End Project Report
PM → PB. Event-driven (project closure). Assessment of how the project performed against the original PID.
Lessons Log & Lessons Report
Dynamic log throughout project → Lessons Report at closure. Also updated at stage boundaries.
Daily Log
Informal record of trivial issues/concerns managed by PM. Not formal management products.
Digital & Data Management Approach
In PID. Specifies what data will be captured and how — supporting forecasting and decision-making.
★ Exam focus — critical points
Only 2 time-based controls: Checkpoint Report (TM→PM) and Highlight Report (PM→PB)
Team Managers raise issues — NOT exceptions. Only PM raises Exception Reports to PB
PM takes corrective action within stage tolerance — no escalation, reported in next Highlight
7 tolerance types: Time · Cost · Quality · Scope · Risk · Benefit · Sustainability
4 management levels: Business Layer → PB → PM → Team Manager
Exception Report = event-driven (PM → PB when tolerance forecast exceeded)
Exception Report ≠ Exception Plan. Report raises the issue; Plan is the PM's replanning response
Deming cycle = Plan-Do-Check-Act (Fig. 11.1) — continuous improvement throughout project
11.1
PURPOSE
"To establish mechanisms to monitor and compare actual achievements against planned; provide forecasts for continued viability; control deviations causing exceptions."
11.2
GUIDANCE FOR EFFECTIVE PROGRESS MANAGEMENT
Deming cycle (plan-do-check-act): overarching continuous improvement cycle. Fig 11.1.
4 management levels: Business Layer · Project Board · Project Manager · Team Manager. Managed by exception between all four against 7 tolerances.
7 tolerances: Time · Cost · Quality · Scope · Sustainability · Risk · Benefits. Project plan has all 7; stage/team plans may include sustainability and risk additionally.
2 types of control: Time-driven (Checkpoint + Highlight reports) vs Event-driven (stage end, exception raised, PID completion). Only 2 time-driven controls in PRINCE2.
Exception: forecast deviation beyond agreed tolerance. Escalation cascade: TM raises Issue → PM raises Exception Report → PB refers to Business Layer.
11.3
TECHNIQUES
Exception management procedureIssue (WP level) → Exception Report (stage level) → Business Layer referral (project level). Fig 11.3.
Earned value managementCompares planned value, earned value, and actual cost to forecast schedule and cost performance.
Burn-down / burn-up chartsAgile: shows remaining vs completed work per timebox. Fig 11.5.
Kanban boardAgile: visualises work in progress. Fig 11.6.
Peer review / retrospectiveTeam-level review of progress, quality, and process improvements.
11.4
APPLYING THE PRACTICE
Organizational contextReporting formats and frequencies aligned with organisational standards. Digital tools (dashboards) may replace formal reports.
Commercial contextContractual reporting obligations may define format and frequency of progress reports. Supplier progress monitored at WP level.
Delivery methodAgile: Highlight Report may use pull system (PB reviews burndown/Kanban rather than receiving pushed document). Sprint reviews replace some formal reporting.
ScaleLarge: formal reporting hierarchy, multiple TMs, dedicated progress systems. Small: informal checkpoints via email or standup.
SustainabilitySustainability tolerance reported alongside other tolerances. Progress on sustainability targets tracked in Project Log.
11.5
MANAGEMENT PRODUCTS
Checkpoint ReportTM → PM. Time-driven. WP progress at frequency defined in WP description.
Highlight ReportPM → PB. Time-driven. Stage status summary at intervals defined by PB.
Exception ReportPM → PB. Event-driven. Raised when stage tolerances forecast to be exceeded. Requests PB decision.
End Stage ReportPM → PB. Event-driven. Performance against stage plan. Triggers SB decision point.
End Project ReportPM → PB. Event-driven. Performance against original PID + all approved changes.
Daily Log / Lessons LogMaintained throughout by PM. Daily: trivial informal items. Lessons: maintained dynamically, compiled into Lessons Report at closure.
11.6
FOCUS OF KEY ROLES
Business LayerSets overall reporting expectationsConfirms reporting format/frequency with PB. Receives project status/exception reports.
PB / ExecutiveReviews Highlight ReportsMakes decisions on exceptions. Issues Exception Plan Request or Premature Close Notice.
Senior UserReviews Highlight Reports from user perspectiveEnsures benefits progress is being captured and reported.
PMProduces Highlight Reports from Checkpoint dataManages issues within stage tolerance (corrective action). Raises Exception Report when tolerance forecast exceeded.
Team ManagerProduces Checkpoint Reports to PMRaises issues (not Exception Reports) when WP tolerances at risk.
Project AssuranceConfirms progress reporting is accurateChecks stage progress against agreed tolerances. Reviews exception reports for BC impact.
Project SupportAssists in maintaining progress recordsCompiles checkpoint data. Maintains registers. Assists in distributing reports.
11.7
KEY RELATIONSHIPS WITH PRINCIPLES
Ensure continued BJChecking BC viability periodically at stage boundaries and for exceptionsMore appropriate decisions on ongoing project viability
Learn from experienceIdentifying lessons from progress management output; applying forecasting techniquesLessons applied; more accurate predictions for future stages
Define rolesClarity on reporting requirements and responsibilitiesTimely and effective decisions on verified information
Manage by stagesDividing project into stages; authorising one stage at a timeClear points to assess progress and viability before committing to next stage
Manage by exceptionControlling project through tolerance levels and escalation at each management levelRight decisions made at the right level; no micromanagement
Focus on productsMeasuring and reporting progress in terms of products deliveredTangible, measurable progress rather than activity metrics
Tailor to suitAdapting reporting format and frequency to project context, delivery method, and scaleEfficient progress management without unnecessary reporting overhead
📊
Three purposes: establish mechanisms to measure actual vs planned · provide forecasts for continued business justification · control deviations causing exceptions
We can't plan with 100% certainty. The progress practice is based on the overarching Deming cycle (plan-do-check-act) — continually improving through planning, executing, reviewing and acting.
PLAN
Plan actions in response to the situation
DO
Implement the planned actions
CHECK
Review whether actions are working as intended
ACT
Identify further actions and continue to learn
Time
Permissible variation in the planned completion date. Earlier or later.
Cost
Permissible overspend or underspend against an agreed budget.
Quality
How much a product can vary from agreed quality criteria. E.g. 0–60 mph in 4.2–4.5 seconds.
Scope
Permissible variation in the plan's products. Used in agile with MoSCoW prioritisation.
Sustainability
Limits on the agreed sustainability metrics (e.g. carbon footprint, printed documents). Added in v7.
Risk
Limits on the plan's aggregated risk exposure. Beyond risk tolerance → action required.
Benefits
Degree to which it is permissible to under-deliver or over-deliver benefits (realised or estimated).

The project is managed by exception between four management levels. Each level receives a tolerance from above and delegates part of it downward. Reporting goes upward; authority cascades downward.

Project plan
Project tolerances
Business Layer
Outside the project · sets overall objectives
Project status /
Exception report
↑ escalates project exceptions
Stage plan
Stage tolerances
Project Board
Directing · key decisions · commits resources
Highlight report (time-driven)
Exception report
↑ escalates stage exceptions
Work package
description
WP tolerances
Project Manager
Managing · day-to-day control of stage
Checkpoint report (time-driven)
Issue
↑ escalates WP exceptions as issues
Team Manager
Delivering · executes work packages
Cannot raise Exception Reports
Raises Issues to PM only
Reporting format and frequency confirmed at each level · Cascade: Business layer → PB → PM → TM · Escalation flows upward
Key rule — who escalates what
Team Manager → raises an Issue to PM if WP tolerances at risk. Cannot raise Exception Reports.
Project Manager → raises an Exception Report to PB if stage tolerances forecast to be exceeded.
Project Board → refers to Business Layer if project tolerances forecast to be exceeded.
⏱ Time-driven Controls
Management controls that occur at predefined periodic intervals, regardless of events. Only 2 time-driven controls in PRINCE2:
·Checkpoint report — Team Manager → Project Manager. Progress on work packages at agreed frequency.
·Highlight report — Project Manager → Project Board. Stage status summary at intervals defined by PB.
⚡ Event-driven Controls
Management controls that occur when a specific event occurs, not on a schedule. Examples:
·End of a stage (triggers Managing a Stage Boundary)
·Completion of the PID (authorisation request)
·Creation of an exception report
·Organisational events (e.g. end of financial year)
Definition: Exception
"A situation where it can be forecast that there will be a deviation beyond the tolerance levels agreed between the project manager and the project board (or between the project board and business layer)"
Key word: forecast — you don't wait for the breach to happen. As soon as the PM forecasts a breach is likely, they escalate.
Work Package Level — Team Manager raises an Issue
If the TM forecasts WP tolerances will be exceeded → raise an Issue to the PM. The PM then decides: take corrective action (within stage tolerance) OR raise Exception Report to PB.
Stage Level — Project Manager raises an Exception Report
If the PM forecasts stage tolerances will be exceeded → raise an Exception Report to the PB. PB decides: give more time/resource (relinquish project tolerance), request an Exception Plan, or stop the project.
Project Level — Project Board refers to Business Layer
If the PB forecasts project tolerances will be exceeded → refer to the Business Layer for a decision. The PB cannot act unilaterally beyond its own tolerance.
Corrective Action
Any minor adjustment the PM makes to stay within stage tolerance — without needing to ask the Project Board. Example: moving a bricklayer from one team to another. Reported in next Highlight Report as information only.
Exception (Escalation)
When the PM forecasts that stage tolerance will be exceeded — cannot resolve within authority → raise Exception Report to PB. Urgent exceptions should be reported orally first, then followed up in agreed format.
Checkpoint Report · time-driven
TM → PM. Status of work package. Frequency defined in WP description. Can be oral, email, text.
Highlight Report · time-driven
PM → PB (and possibly other stakeholders). Stage status summary. Frequency defined by PB.
Exception Report · event-driven
PM → PB. Raised when stage tolerances forecast to be exceeded. Requests a steer/decision. May trigger Exception Plan request.
End Stage Report · event-driven
PM → PB at end of every stage. Assures PB that stage products are completed and approved.
End Project Report · event-driven
PM → PB at project closure. Evaluates performance against PID, enables PB to authorise closure.
Daily Log / Lessons Log
Daily Log: trivial informal issues. Lessons Log: maintained throughout, converted to Lessons Report at closure.
★ Exam focus — critical points
Only 2 time-driven controls: Checkpoint Report + Highlight Report. All others are event-driven.
Team Manager cannot raise Exception Reports — only Issues to the PM.
Exception = forecast to exceed tolerance — not waiting for breach to occur.
7 tolerances: time · cost · quality · scope · sustainability · risk · benefits
Corrective action = within tolerance → PM decides alone. Report in next highlight.
4 management levels: Business Layer · Project Board · Project Manager · Team Manager
Data & systems support progress by predicting future performance from past data — not just looking backwards.
Agile highlight report: may use a 'pull' system — PB looks at progress charts rather than receiving reports.
🏁
"To provide a fixed point at which acceptance of the project product is confirmed. It also provides a point to recognize that the objectives — or approved changes to the objectives as established in the PID — have been achieved."
Where there is a cause for a premature close, this process ensures the project is closed in an orderly way and not simply abandoned.
⚠️ Closing a Project is not a stage — it is a series of activities planned into the final stage plan.
·Check user acceptance of the project product
·Ensure the business can support the products after project closure
·Review performance against baselines (vs original PID)
·Assess realised benefits · update Benefits Management Approach for post-project reviews
·Ensure provision to address all open issues and risks (follow-on action recommendations)
·Ensure project is closed in an orderly way — not simply abandoned (premature close)
Trigger 1 — Planned
Project end approaching — triggered from Controlling a Stage as the final stage nears completion. The PM triggers the CP activities planned into the final stage plan.
Trigger 2 — Premature
Premature close request — issued by the Project Board (via Directing a Project) at any point in the lifecycle. Reasons: business case no longer valid, strategy change, new technology, market conditions change.
Fig. 19.1 — Overview of Closing a Project
Controlling a Stage
Project end approaching
Directing a Project
Premature close request
CLOSING A PROJECT
Prepare planned closure
Prepare premature closure
Confirm project acceptance
Evaluate the project
Request project closure → Project closure request → Directing a Project
① Prepare planned closure trigger: project end approaching
Notify all relevant parties that the project is closing. Close the project log. Update the Benefits Management Approach for post-project benefit measurement. Prepare follow-on action recommendations for unfinished work, open issues and risks.
① (alt) Prepare premature closure trigger: premature close request from PB
Same activities as planned closure but focused on salvaging what can be salvaged. Some approved products may already be usable operationally. Evaluate the reasons for early closure. Ensure the project is closed in an orderly way — not simply abandoned.
② Confirm project acceptance
The project product must be passed to an operational and maintenance environment. The PM confirms that the users accept the final product — this is the fixed point referenced in the purpose. There may be completion certificates to be signed. Handover may happen in a single release or phased delivery (iterative). Update the Benefits Management Approach to include post-project benefit reviews.
Senior User checks that post-project benefits reviews are planned. Business layer must be able to support and maintain the solution.
③ Evaluate the project
Assess how successful the project has been — or in premature close, the reasons for early closure. Review original intent as defined in the PID and any approved changes. Produce the End Project Report and the Lessons Report from the lessons log maintained throughout the project.
End Project Report = evaluation against original PID baselines and all approved changes. Lessons Report = enables future projects to benefit from experience.
④ Request project closure
The PM contacts the Project Board requesting project closure. Briefs the PB on overall performance, confirms readiness, highlights any concessions for off-specifications. The PM also suggests celebrating project success. The PB then authorises closure via Directing a Project → Project Closure Notice.
Key Inputs
Activities
Key Outputs
Project end approaching
OR Premature close request
Project Log (review)
PID (check)
Business Case (check)
Project Plan (review)
Prepare planned closure
Prepare premature closure
Confirm project acceptance
Evaluate the project
Request project closure
End Project Report
Lessons Report
Updated Benefits Mgmt Approach
Follow-on action recommendations
Project closure request → DP
Project Log closed
Planned Closure
· Triggered at end of final stage · All planned products delivered · Users confirm acceptance of project product · Performance reviewed against original PID · Benefits management approach updated for post-project reviews · PM celebrates success with the team
Premature Closure
· Triggered at ANY point by Project Board decision · Reasons: BC no longer valid, strategy change, new technology, market change · Salvage usable approved products for operational use · Still requires orderly closure — not abandonment · Evaluate reasons for early closure · Same activities — same outputs
End Project Report
Evaluation of project performance against original PID baselines and all approved changes. Enables the PB to authorise project closure. Includes review of approved changes and any concessions.
Lessons Report
Compiled from the lessons log maintained throughout the project. Enables future projects to benefit from experience. Can be created at any stage — not only at closure. May be included in the End Project Report.
Benefits Management Approach (updated)
Updated to include post-project benefit reviews. Accountability for measuring benefits transfers to the business layer / Senior User after project closure.
Follow-on Action Recommendations
Documents unfinished work, open issues and risks to be addressed by the business after project closure. May have different audiences — separate recommendations per user group if needed.
Activity
Executive
Senior User
PM
Bus. Layer
Prepare planned / premature closure
C
C
R
A
Confirm project acceptance
C
C
R
A
Evaluate the project
C
C
R
A
Request project closure
A
C
R
I
R = Responsible · A = Accountable · C = Consulted · I = Informed
★ Exam focus — critical points
CP is NOT a stage — it is activities planned into the final stage plan
"Fixed point" — the key phrase in the CP purpose. Watch for this in exam scenarios.
Premature close: orderly closure always — never simply abandoned, even if premature
Benefits measurement post-project → responsibility transfers to Senior User / business layer
PM recommends closure — Project Board authorises it (in Directing a Project)
Final stage vs SB: final stage triggers CP, not SB — common exam trap
Evaluation is against original PID + all approved changes — not just original plan
Lessons Report compiled from Lessons Log maintained throughout — not created from scratch
🎯
"To enable the project board to be accountable for the success of the project by making key decisions and exercising overall control, while delegating day-to-day management of the project to the project manager"
DP runs throughout the entire lifecycle — from after Starting Up a Project through to authorising project closure. The project board manages by exception: monitors via reports, controls through a small number of decision points. No need for regular progress meetings with the project board.
Eyes On
Stay informed through reports and information the PM provides. Know what is happening without micromanaging.
Hands Off
Delegate day-to-day management to the PM. Only intervene when tolerances are forecast to be exceeded or at key decision points.

DP is the only process that runs for the entire project lifecycle. The Project Board makes decisions at key points; everything else runs via the PM who keeps them informed through highlight reports.

Project Board Decision Points (DP) through the lifecycle
Starting Up
Project Brief +
Initiation Stage Plan
DP DECISION 1
Authorise Initiation
→ Initiation Notice
Initiating + SB
PID +
Stage Plan
DP DECISION 2
Authorise Project + Stage 1
→ Project Auth. Notice
During each stage:
PM sends Highlight Reports (time-driven) · PB monitors but does NOT intervene unless exception
If Exception Report → Give Ongoing Direction
Stage Boundary (SB)
End Stage Report +
Next Stage Plan
DP DECISION 3+
Authorise Stage / Exception Plan
(repeats per stage)
Closing a Project (CP)
End Project Report +
Lessons Report
DP DECISION 4
Authorise Project Closure
→ Project Closure Notice
① Authorize Initiation trigger: project initiation request (from SU)
First PB decision. Based on fairly sketchy pre-project analysis. Reviews: outline business case, project brief, project product description, initiation stage plan. If authorised → Initiation Notice triggers Initiating a Project. If not → the project never starts.
Key input: Project Brief (from SU). Key output: Initiation Notice → triggers IP.
② Authorize the Project trigger: project authorization request (from IP)
Second major PB decision. Reviews the full PID and full Business Case produced during initiation. Confirms the project is desirable, viable and achievable. If authorised → Project Authorization Notice + authorization to proceed to the first delivery stage. Note: may be combined with Authorize a Stage if managed as a single decision point.
Key inputs: PID + Full Business Case. Key output: Project Authorization Notice.
③ Authorize a Stage or Exception Plan trigger: next stage request OR exception plan approval request (from SB)
Repeating decision point at each stage boundary. Reviews the End Stage Report and Stage Plan / Exception Plan. Also checks Business Case and Project Plan. If satisfied → Stage or Exception Authorized — triggers CS. Can also decide to invoke premature closure.
PB may delegate reviewing/assessing actions to Project Assurance. PB remains accountable.
④ Give Ongoing Direction trigger: advice request OR exception raised (from CS)
Continuous activity throughout the project. The PB provides informal advice and guidance as well as formal direction. When an Exception Report is raised by the PM, the PB decides how to respond. Key outputs: Exception Plan Request (triggers SB) · Project Board's Advice and Decisions (triggers CS) · Premature Close Notice (triggers CP).
Two-way flow: PM seeks advice AND PB updates PM on external matters. PB must provide unified direction — if it cannot, the Executive decides.
⑤ Authorize Project Closure trigger: project closure request (from CP)
Final PB activity — last thing the project board does before disbanding. Reviews End Project Report and confirms the Business Case. Ensures post-project benefit reviews are planned. Issues Project Closure Notice. Executive notifies the business layer.
May require endorsement from the business layer before authorising closure.
Activity
Key Input (trigger)
Key Output
Authorize Initiation
Project initiation request (SU)
Initiation Notice → triggers IP
Authorize the Project
Project authorization request (IP)
Project Authorization Notice
Authorize Stage / Exception Plan
Next stage request / Exception plan approval request (SB)
Stage or Exception Authorized → triggers CS
Give Ongoing Direction
Advice request / Exception raised (CS)
Exception Plan Request / PB Advice / Premature Close Notice
Authorize Project Closure
Project closure request (CP)
Project Closure Notice
Activity
Bus. Layer
Executive
PM
Proj. Assurance
Authorize initiation
I
A/R
Authorize the project
I
A/R
I
C
Authorize stage / exception plan
I
A/R
I
C
Give ongoing direction
C
A/R
C/I
C
Authorize project closure
I
A/R
I
C
A/R = Accountable and Responsible · C = Consulted · I = Informed. The Executive holds A/R for all DP activities.
Manage by Exception
The PB does NOT attend regular progress meetings. The PM informs the PB through Highlight Reports. The PB only intervenes when tolerances are forecast to be exceeded (Exception Report triggers Give Ongoing Direction).
Unified Direction
The PB must provide a single, unified view to the PM. If the PB cannot agree, the Executive makes the final decision. Contradictory requirements from the PB significantly increase the risk of project failure.
Business Layer Connection
The PB acts as a communication channel between the project and the business layer. Two-way flow: PB keeps the PM informed of external changes; PM keeps PB informed of project progress.
Delegation + Accountability
The PB may delegate reviewing/assessing actions to Project Assurance — but the PB remains accountable for all decisions. Delegation of authority does not transfer accountability.
★ Exam focus — critical points
DP runs throughout the entire lifecycle — from after SU to after CP
"Eyes on, hands off" — Manage by Exception is the governing principle
Purpose: retain accountability while delegating day-to-day management to the PM
Give Ongoing Direction outputs: Exception Plan Request · PB Advice · Premature Close Notice
Executive holds A/R for ALL DP activities — the other PB members are C or I
First decision (Authorize Initiation) is based on Project Brief, not the PID
Highlight reports do NOT trigger PB intervention — only Exception Reports do
If PB cannot provide unified direction → Executive decides
"To facilitate communication and control by defining the products to be delivered (the 'what') and the means to deliver them (the 'who', the 'how', the 'where', and estimates of the 'when' and for 'how much') to satisfy the project business case (the 'why')"
A plan is a proposal that outlines the what, where, when, how, and who of the project. When approved, it provides a baseline against which progress can be measured and issues assessed.
⚠️ A Gantt chart / activity timeline is a schedule — not a plan. Plans are bigger: they include schedule, products, resources, budget, risks, tolerances, and monitoring arrangements.

All PRINCE2 plans have the same fundamental structure (Appendix A9). What differs is purpose, scope, and level of detail.

Fig. 7.1 — Relationship between PRINCE2 plans
Project mandate · Business plan · Programme plan (outside PRINCE2)
Project Plan
Created in: Initiating a Project · Owner: Project Manager
Initiation Stage Plan
Created in: Starting Up a Project
OR
Subsequent Stage Plans
Created in: Managing a Stage Boundary
↓ ········→
Team Plans (optional)
Created in: Managing Product Delivery · Owner: Team Manager
(as needed)
Exception Plans (as necessary)
Replaces current stage plan · Created in: SB
Project Plan Created in IP · lives in PID · Appendix A9
High-level plan showing the major products of the project — when, how, and at what cost they will be delivered. Identifies stage boundaries and number of stages. Shows work packages at high level. Covers the entire project lifecycle — less detail than stage plans. Purpose: provide confidence to PB that the project will fulfil its business case.
Stage Plan Initiation stage plan in SU · subsequent plans in SB
Detailed plan for a single stage — the basis for PM's day-to-day control. More detailed than the project plan (week or day level instead of months). Activities and products traceable back to project plan. Produced near the end of the current stage (rolling wave planning) — so it reflects reality and is produced with knowledge of earlier stage performance.
Team Plan (optional) Created in Managing Product Delivery · Owner: Team Manager
Produced by the team manager to facilitate execution of one or more work packages. Optional — not always required. Useful when the team is a temporary organisation with staff from different parts of the business, or when detailed instructions are needed for complex work. Very detailed — identifies people by name, not just skill.
Exception Plan Produced in SB (when requested by PB) · replaces current stage plan
Produced when the PM forecasts that stage or project tolerances will be exceeded. Follows an Exception Plan Request from the project board (issued in DP after receiving an Exception Report). Replaces the current stage plan — its approval marks a new stage boundary. Same structure as any other plan (Appendix A9).
Rolling Wave Planning
Don't plan everything to the nth degree up front. Have an overarching project plan (high level, in PID) and fill in the detail stage by stage. Near the end of each stage, plan the next stage in detail.
·Produced close to when activities will occur
·Reflects knowledge gained from earlier stages
·Tolerances can narrow as certainty increases
Choosing Number & Length of Stages
No predetermined number — depends on context:
↑ risk → more stages, shorter
↑ confidence → fewer stages, longer
·Commercial payment / contractual milestones
·Key decision points in the project
·Minimum: 2 stages (initiation + at least one delivery)
"The PRINCE2 technique leads to a plan based on the creation and delivery of the required products"
Focus on products is a PRINCE2 principle. Planning starts with identifying what needs to be delivered — then determines activities, resources, timelines and risks from there. Users care most about outputs; focusing on products avoids activities that don't contribute to required outputs.
Fig. 7.3 — PRINCE2 Planning Technique (applies to all plan types)
① Define & Analyse Products
Starting point. What must be delivered? Write product descriptions. Create PBS + PFD.
② Organise Work Packages
Group products into work packages. Define dependencies and sequencing.
③ Prepare Estimates
Effort, cost and duration estimates for each activity. Involves team managers collaboratively.
④ Prepare Schedule
Create timeline (e.g. Gantt chart). Scheduling and estimating are often interdependent.
⑤ Analyse Risks
Identify and assess risks associated with the plan. Update risk register.
⑥ Prepare Budget
Budget prepared once schedule and estimates are mature. Includes risk and change budgets.
⑦ Document the Plan — record all the above in the plan management product (App. A9)
Fig. 7.4 — Defining and Analysing Products (step ① expanded)
Project Plan only
Write Project Product Description
Top-level description: major outcomes/products, user quality expectations, acceptance criteria and acceptance methods for the entire project.
All plan levels
Create Product Breakdown Structure (PBS)
Hierarchy of all products to be produced during the plan. Prevents scope creep — any product not traceable to PBS is out of scope.
All plan levels
Write Product Descriptions
For each product: title, purpose, composition, derivation, quality criteria, quality method, roles. Forms basis for work packages and acceptance.
All plan levels
Create Product Flow Diagram (PFD)
Shows sequence and dependencies between products. Identifies which products feed into others. Foundation for scheduling.
Plan Content — App. A9
· Scope description
· Dependencies
· Planning assumptions & prerequisites
· Lessons incorporated
· Products to be delivered (PBS, PFD, product descriptions)
· Work to be performed (WBS + work package descriptions)
· Budget (including risk budget + change budget)
· Schedule (e.g. Gantt chart)
· Targets and tolerances
· Monitoring, control and reporting arrangements
Single App A9 format applies to ALL plan types: project, stage, team and exception plans.
Tolerances in Plans — Ch. 7.2.4
Each plan carries tolerances. As the project progresses, more certainty → tolerances narrow.
· Time: permissible deviation in completion date
· Cost: permissible overspend/underspend
· Quality: how much a product can vary from quality criteria
· Scope: permissible variation in products delivered (agile)
· Sustainability: stage plans and team plans can include this
· Risk: stage plans and team plans can include this
Example: initiation stage ±40% on time/cost. After IP: ±20% for design stage. Tolerances reflect increasing certainty.
Plan
Created by
Approved by
Created in process
Project Plan
Project Manager
Project Board
Initiating a Project
Initiation Stage Plan
Project Manager
Project Board (DP)
Starting Up a Project
Subsequent Stage Plans
Project Manager
Project Board (DP)
Managing Stage Boundary
Team Plans (optional)
Team Manager
Project Manager
Managing Product Delivery
Exception Plan
Project Manager
Project Board (DP)
Managing Stage Boundary
★ Exam focus — critical points
Gantt chart = schedule, not a plan. Plans include schedule + products + budgets + risks + tolerances
All 4 plan types use the same structure (App. A9) — project, stage, team, exception
Team plans are optional — not always required
Products not traceable to project plan = scope creep
Stage plans produced near end of current stage — rolling wave, not up front
Product-based planning starts with products first — then activities, resources, schedule
Project Product Description is for project plan only. PBS, product descriptions, PFD: all plan levels
Collaborative planning with team managers produces better, more realistic stage plans

Products are nouns / end states, not activities. Instead of "decorate the room" → specify painted walls · painted doorways · wood-block flooring. Measurable and testable outputs — not vague instructions.

Project Product Description — App. A14 Project plan only · evolved in SU → refined in IP → reviewed in SB → accepted in CP

The top-level definition of the final output the customer expects to receive from the project. Before defining any work, define what the customer actually wants.

·Purpose — what will the product be used for? (transport equipment? speed? family use?)
·Composition — major products: vehicle + service agreement + breakdown cover?
·User quality expectations — fast? economic? electric? 4-door? air conditioning?
·Acceptance criteria — measurable, testable list. Prioritised using MoSCoW (Must · Should · Could · Won't)
·Acceptance methods — engineer inspection? test drive? what tests will be applied?
·Acceptance responsibilities — who approves? (Senior User)
Product Breakdown Structure (PBS) Hierarchy · workshop exercise · all plan levels

Break the project product into its constituent parts — a hierarchy of products. Stop decomposing when each item could be allocated as a work package to a team manager. No dependency order implied — just "what does it consist of?"

Example PBS — "Source a Car"
CAR (project product)
Vehicle
Service Agreement
Breakdown Cover
↓ (Vehicle broken down further)
Body Unit
Audio System
Interior
Power Unit
↓ (Power Unit further decomposed)
Engine
Gearbox
Stop decomposing when each item can be a work package allocated to a team manager
Product Descriptions — App. A10 One per product · all plan levels · basis for work packages

An individual product description for each product — the basis for the work package description given to the team manager. Defines exactly what must be delivered before any work starts.

·Identifier & Title
·Purpose — what is this product for?
·Composition — constituent parts (e.g. engine: block, cylinder head, carburettor, exhaust manifold)
·Derivation — inputs / derived from which other products or standards
·Quality specification — measurable criteria with tolerances (e.g. 0–60mph in 4.2–4.5 seconds; fuel consumption X–Y mpg)
·Quality method — how will it be checked? (engineer inspection, test drive)
·Quality responsibilities — who produces? who reviews? who accepts?
Product Flow Diagram (PFD) Logical dependencies · key input to scheduling · all plan levels

Shows the sequence and logical dependencies between products. The PBS shows "what it consists of" — the PFD shows "in what order products flow toward the end result". Finish-Start relationships: you can't start product E until products A and B are both complete.

Example: To deliver the Car — Audio System must be installed before the car can be accepted. If the audio system is missing when the customer collects the car, they cannot accept it: "There's a hole where the audio system should be — I can't accept this car." The PFD makes these dependencies visible before scheduling begins.
Organise Work Packages (verbs)

Once products (nouns) are defined, identify the activities (verbs) needed to deliver each product. Group into work packages.

Car park example:
Products → car park. Activities → clear site · order materials · dig foundations · lay base & drainage · roll · paint base
Prepare Estimates

For each activity: resources needed (people, equipment, services) and duration. Discuss with team managers — collaborative planning produces better estimates.

Car park example:
Clear site: 1 digger + 3 trucks + 6 people × 4 days
Dig foundations: 1 digger + 2 trucks + 4 people × 2 days
Total estimated cost: £200K → if budget is £180K, compromise is needed (reduce scope/CCTV)
Gantt Chart
Activities plotted against a timeline. Easy to read, easy to show today's date and slippage. Most common scheduling format.
Clear site
Order materials
Dig foundations
Lay base
← Days/Weeks timeline →
✓ Shows today vs plan · good for cashflow management · easy to spot slippage
Network Diagram & Critical Path
Shows dependencies and bottlenecks visually. Add durations → identify the critical path — the longest path from start to finish.
Car park — network (durations in days)
Clear site
4d
Dig fnd
2d
Lay base
2d
Roll
1d
Paint
5d
Order materials (1d) — 5 days float (can start any time before Lay Base)
Critical path: 4+2+2+1+5 = 14 days
✓ Shows bottlenecks · critical path = any slippage delays entire project · float = scheduling flexibility
Critical Path & Float — exam relevant concepts
Critical path — the longest sequence of dependent activities from start to finish. Any delay on the critical path = delay to the entire project. Must be monitored closely.
Float (slack) — time an activity can be delayed without delaying the project. Activities NOT on the critical path have float. Example: Order materials (1d) in a 5d window = 4 days float → manage cashflow by ordering later.
M
Must have
Non-negotiable. Project fails without these.
S
Should have
Important but not critical. Include if possible.
C
Could have
Desirable but can be dropped if constrained. "Nice to have."
W
Won't have (now)
Out of scope this time — may be in a future phase.
7.1
PURPOSE
"To facilitate communication and control by defining the products to be delivered (what) and the means to deliver them (who, how, where, when, how much) to satisfy the project business case (why)."
7.2
GUIDANCE FOR EFFECTIVE PLANNING
4 plan types: Project Plan (IP) · Initiation Stage Plan (SU) · Subsequent Stage Plans (SB) · Team Plans (optional, MP) · Exception Plans (SB, as necessary).
Rolling wave planning: project plan high-level; stage plans detailed near the end of the previous stage. Accommodates planning horizon.
Stage boundaries: more stages = more control points. Riskier project → shorter stages. Confident/repetitive → longer stages. Can be linked to commercial payment milestones.
7 tolerances per plan: Time · Cost · Quality · Scope · Sustainability · Risk · Benefits. Tolerances narrow as project progresses and certainty increases.
All 4 plan types share the same structure (Appendix A9). Plan ≠ schedule — schedule is just one component.
7.3
TECHNIQUES
Fig 7.3 — Planning technique7 steps: Define & Analyse Products → Organise Work Packages → Prepare Estimates → Prepare Schedule → Analyse Risks → Prepare Budget → Document the Plan.
Fig 7.4 — Define & Analyse ProductsProject plan only: Write Project Product Description. All plan levels: Create PBS → Write Product Descriptions → Create Product Flow Diagram.
Work Breakdown Structure (WBS)Hierarchy of all work to be done. Links PBS to work packages. Basis for estimating and scheduling.
Gantt chartActivities against timeline. Easy to show slippage, today's date. Most common format.
Network diagram / Critical PathShows dependencies and bottlenecks. Critical path = longest path. Float identifies scheduling flexibility.
MoSCoW prioritisationMust/Should/Could/Won't. Used for scope tolerance, especially in agile.
7.4
APPLYING THE PRACTICE
Organizational contextExisting planning tools, templates, or standards may define plan format. PMO may provide planning support.
Commercial contextContract milestones may define stage boundaries. Supplier plans must align with project plan. WP descriptions serve as commercial sub-contracts.
Delivery methodAgile: product backlog may serve as team plan equivalent. Sprint plans within timebox. Rolling wave more naturally suited to iterative delivery. MoSCoW for scope tolerance.
ScaleLarge: detailed project plan with multiple stage plans; PM produces stage plans with specialist involvement. Small: one-stage plan may suffice for simple projects.
SustainabilitySustainability targets appear as plan tolerances. Sustainability milestones planned into the stage plan. Supplier sustainability requirements in WP descriptions.
7.5
MANAGEMENT PRODUCTS
Project PlanHigh-level plan: major products, stage boundaries, WPs at high level. Created in IP. Lives in PID. Approved by PB. Reviewed at each SB.
Stage PlansDetailed per-stage plan. Initiation stage plan in SU. Subsequent stage plans in SB. Approved by PB at each stage boundary.
Team Plans (optional)Per work package. Created by Team Manager in MP. Approved by PM. Used when team is complex or third-party.
Exception PlanReplaces current stage/project plan. Produced in SB on PB's Exception Plan Request. Approved by PB. Same structure as any plan (App A9).
Work Package DescriptionNot a plan but part of the plans practice. Passes work formally to TM. Product descriptions form its core. App A15.
7.6
FOCUS OF KEY ROLES
PB / ExecutiveApproves project plan and each stage planSets project tolerances. Makes stage authorisation decisions at SBs.
Senior UserContributes user requirements to planningConfirms product descriptions meet user needs. Confirms acceptance criteria in Project Product Description.
Senior SupplierContributes specialist expertise to planningConfirms technical feasibility and estimates. Agrees WP descriptions with PM.
PMCreates project plan (in IP), initiation stage plan (in SU), subsequent stage plans (in SB)Collaborates with TMs on WP descriptions. Maintains and updates plans throughout.
Team ManagerCreates team plans (optional, in MP)Agrees WP descriptions with PM. Provides estimates for WP activities.
Project AssuranceReviews plans for viability and alignment with BCAdvises PM and PB on plan quality. Reviews stage plans for completeness.
Project SupportProvides planning support and toolsMaintains project plan baseline. Assists PM with scheduling and reporting.
7.7
KEY RELATIONSHIPS WITH PRINCIPLES
Ensure continued BJAligning plan's performance targets to BC objectives; providing estimates to confirm viabilityPlans remain aligned with business strategy within defined tolerances
Learn from experienceUsing lessons to inform planning; sharing planning lessons for future projectsImproved capability to plan and deliver; more accurate estimates
Define rolesEstablishing roles and responsibilities specific to a plan; organising through WPs and teamsClear accountability for plan performance; efficient decision-making
Manage by stagesBreaking lifecycle into stages aligned to planning horizons and key decision pointsStages planned appropriately to business needs and realistic estimates
Manage by exceptionDefining levels of plan and establishing targets and tolerances for eachEfficient decision-making and escalation at the appropriate plan level
Focus on productsBasing all plans and planning activities on identifying required products firstEffective communication; avoidance of unnecessary work and scope creep
Tailor to suitRequiring only planning activities and plans appropriate to the project contextRight balance between project management, delivery activities, and resources
"To find the project structure in terms of accountability and responsibility"
A project involves a temporary team working together for a defined period. Organising establishes who is doing what — the roles, responsibilities and reporting structure — and keeps it under review throughout the project lifecycle.

Three interests must be represented on the Project Board. Remember: BUS — Business · User · Supplier.

B — Business
Executive
Exactly ONE person. Ultimately accountable for value for money. Owns the Business Case. Ensures benefits outweigh costs, timescales and risks. Can override Senior User and Senior Supplier. Corporate representative.
U — User
Senior User(s)
One representative per business area affected by the change. Requirements viewpoint. Ensures solution meets user needs and will deliver anticipated benefits. Provides user resources to the project team.
S — Supplier
Senior Supplier(s)
Represents those building the solution. Ensures what is produced meets technical standards and is feasible. Provides specialist resources. May have their own Business Case if commercial.
Not a democracy: the Executive can override other PB members. Users' requirements are valid only if they lead to benefits. The business interest always takes precedence.

These are roles, not jobs or individuals. One person can hold multiple roles. A role can be shared across individuals.

Fig. 6.3 — Project Management Team (Directing · Managing · Delivering)
Business Layer — outside the project · provides mandate · appoints Executive
Project Board — DIRECTING
Executive
business · 1 person
Senior User(s)
user · one per area
Senior Supplier(s)
supplier · specialist
Project Assurance
Delegated by PB · independent of PM
Project Support
Admin · librarian · assists PM
Project Manager — MANAGING
One PM only · day-to-day delivery within stage tolerances · reports to PB via Highlight Reports · NOT a member of the project board
↓ (work packages)
Team Managers — DELIVERING
May or may not be third-party contractors · execute work packages · report via Checkpoint Reports
Team Members / Workforce — the "doers" · NOT part of the project management team
Executive
·Ultimately accountable for project success
·Owns and approves the Business Case
·Ensures project is adequately funded
·Chairs the PB · can override other members
Senior User
·Specifies desired outcomes and benefits (user perspective)
·Ensures solution meets user requirements
·Provides user resources to the project
·Confirms post-project benefit reviews are planned
Senior Supplier
·Ensures technical feasibility and standards adherence
·Provides specialist resources to deliver the solution
·If commercial: may have own Business Case
·Responsible for quality of specialist products
Project Assurance
Monitors the project on behalf of the PB to ensure the business case remains valid. Three views: Business Assurance · User Assurance · Supplier Assurance.
⚠️ Must be independent of the PM — cannot be combined with the PM role. PB can retain this accountability themselves (not mandatory to delegate).
Project Support
Administrative and librarian function — maintains documentation, assists PM. Often drawn from a PMO. May be combined with the PM role in small projects.
✓ Allowed
· Executive + Senior User (same person)
· PM + Team Manager (if they have the skills)
· PM + Project Support (PM does own admin)
· PB retains Project Assurance themselves
· Minimum viable: 2 people (or even 1 PB member)
✗ Not allowed
· PM cannot also be Project Assurance
· Executive cannot be the PM
· "If they have the skills" = PM+TM ok, but NOT for PA+PM
Commercial Management Approach
How commercial relationships with third-party suppliers will be managed. Created in IP, reviewed at each SB.
Project Management Team Structure
Diagram or document showing who holds each role. Reviewed and updated at every stage boundary.
Role Descriptions
Defines precisely what each individual is responsible for. All 3 products created in IP, reviewed at each SB.
★ Exam focus — critical points
Executive = exactly ONE person. Senior User = one per area affected.
Not a democracy — Executive can override the other PB members
PM ≠ Project Assurance — must be independent. Never combine.
Senior User specifies benefit targets — not the Executive (common trap)
Roles reviewed at every stage boundary
PM + TM allowed "if they have the skills" — watch for this phrase
3 management products (in PID): Commercial Approach · Team Structure · Role Descriptions
Directing · Managing · Delivering = 3 layers of project management
6.1
PURPOSE
"To define and establish the project's structure of accountability and responsibilities (the 'who')."
6.2
GUIDANCE FOR EFFECTIVE ORGANISING
3 project interests (BUS): Business (Executive — 1 person only) · User (Senior User — one per area affected) · Supplier (Senior Supplier). All represented on Project Board.
4 organisational layers: Business Layer (commissioning) · Project Board (directing) · Project Manager (managing) · Team Managers (delivering). Below them: team members (workforce).
Roles ≠ jobs: roles are sets of responsibilities. One person can hold multiple roles. A role can be shared — within constraints (PM cannot be PA).
Not a democracy: Executive can override other PB members. Business interest (benefits/ROI) takes precedence over user requirements when they conflict.
Project Assurance: delegated by PB; must be independent of PM. Replicates 3 interests: business, user, supplier assurance.
6.3
TECHNIQUES
5-step techniqueUnderstand organisational ecosystem → Design project ecosystem → Develop project ecosystem → Manage ongoing changes → Transition into organisational ecosystem.
Step: UnderstandMap current-state stakeholders, roles, relationships, culture, and external context.
Step: DesignDefine project management team structure. Assign roles. Define role descriptions. Identify gaps.
Step: DevelopOnboard team members. Build relationships. Establish communication patterns and working practices.
Step: Manage changesReview team structure at stage boundaries. Adapt roles as skills and context change.
Step: TransitionEnsure operations can absorb the change. Handover people and knowledge to BAU.
6.4
APPLYING THE PRACTICE
Organizational contextExisting org structures may define which people are available for project roles. PMO may provide PM and PA. Governance standards may prescribe PB composition.
Commercial contextThird-party suppliers require formal Senior Supplier role. Commercial Management Approach must define procurement and contract management responsibilities.
Delivery methodAgile: self-organising teams may sit within the team manager layer. Scrum Master could be aligned to TM. Product Owner to Senior User. Structure must still reflect BUS interests.
ScaleLarge: multiple Senior Users/Suppliers; delegated PA; formal Change Authority. Small: Executive + PM may suffice. PB of one person possible in tiny internal projects.
SustainabilityExecutive accountable for ESG targets. Role descriptions must define sustainability responsibilities. Sustainability champions may be added to the project ecosystem.
6.5
MANAGEMENT PRODUCTS
Commercial Management ApproachHow commercial relationships with third-party suppliers will be managed: procurement, contracts, performance, disputes. Part of PID.
Project Management Team StructureChart showing who holds each role, their relationships, reporting lines, and governance arrangements. Part of PID.
Role DescriptionsDefines each role's authority, responsibilities, who they are accountable to, and whether roles are combined. Part of PID.
All 3 created in Initiating a Project (part of PID). Reviewed and updated at every stage boundary.
6.6
FOCUS OF KEY ROLES
Business LayerAppoints Executive (and possibly PM)Sets communications standards. Provides information to project per communication management approach.
ExecutiveAppoints PM (if not done by BL)Confirms organisational design. Approves team structure, commercial/comms/change approaches. Reviews delivery model for ESG compatibility.
Senior UserEnsures appropriate user community involvementAgrees commercial, comms, and change approaches. Provides user resources. Ensures sustainability targets are embedded in role descriptions.
Senior SupplierProvides specialist resourcesAgrees procurement approach. Contributes to organisational design for delivery.
PMDesigns and maintains team structureCreates and updates role descriptions and management approaches. Reviews team performance at stage boundaries.
Project AssuranceReviews team structure for completeness and independenceConfirms PA independence from PM is maintained. Reviews role descriptions.
Project SupportMaintains team structure documentationAssists with onboarding and communication arrangements.
6.7
KEY RELATIONSHIPS WITH PRINCIPLES
Ensure continued BJAssigning someone from the business as Executive with sufficient authority and availabilityProject adapts to changing business needs; appropriate decisions aligned with BC
Learn from experienceUsing lessons to inform project management team structure and healthy project ecosystemRight people in right roles at right time
Define rolesDeveloping an explicit project management team structure with clear responsibilitiesNo duplication or gaps; positive relationships across the project ecosystem
Manage by stagesAssessing and adapting team structure, role descriptions, and management approaches at stage boundariesProject evolves with changing needs; appropriate skills at each stage
Manage by exceptionEmpowering those best placed to make decisions at the appropriate pointEffective and timely decision-making; increased accountability and ownership
Focus on productsEnsuring product users are represented on the team and change management is understoodProducts accepted by users and brought into operational use; benefits delivered
Tailor to suitCreating a project management team appropriate to the project's needs and the organisations' capabilitiesStructure that is fit for purpose without unnecessary overhead

All projects start with an idea (a project mandate). The key question before committing significant resources is: "Is this viable and worthwhile?" PRINCE2 answers this in two deliberate steps.

Starting Up a Project — CH13
Short and sharp pre-project activity. Minimum necessary to decide whether to initiate. Output: Project Brief + Initiation Stage Plan.
Trigger: Project Mandate (from Business Layer)
PB decision
Authorize
Initiation?
Initiating a Project — CH15
More rigorous analysis. Expand and refine the Brief into the PID. Set the project up properly before committing to delivery.
Output: PID → Project Authorization Request → PB
Purpose
"To ensure the prerequisites for initiating a project are in place — answering: do we have a viable and worthwhile project?"
Pre-project activity. Lighter and shorter than IP. The aim is to do the minimum necessary to decide whether it is worthwhile to even initiate the project. Discards non-runners with minimum effort.
Activities — Table 13.1 (Input → Activity → Output)
Input
Activities
Output
Project Mandate
(triggers SU)
Previous Lessons Reports
1.Appoint Executive and PM
2.Assess previous lessons
3.Prepare outline Business Case
4.Appoint project management team
5.Select project approach
6.Assemble project brief
7.Plan the initiation stage
8.Request project initiation
Project Brief
Initiation Stage Plan
Outline Business Case
Daily Log (create)
Lessons Log (create)
Project Product Description
→ Project Initiation Request (triggers DP)
Project Mandate — App. A
The trigger for the project, provided by the Business Layer. Varies enormously: from a well-defined feasibility study to a post-it note. May contain: strategic study, legislative directive, RFP, verbal instruction. Must at least identify the prospective Executive.
Project Brief — App. A11
The output of SU. A commonly understood starting point for the project. Contains: outline BC, project product description, project approach, PM team structure, high-level risks/issues/tolerances. Enough for the PB to authorize initiation.
Purpose
"To establish solid foundations for the project, enabling the business to understand the work to be done to deliver the project product before committing to any significant expenditure or resources."
Extends and refines the Project Brief. The output (PID) is the "contract for delivery" between the PM and the Project Board. Without a PID, there is no clarity — it is like working outside a contract.
Activities — Fig. 15.1
1. Agree tailoring requirements
2. Agree management approaches
3. Establish project controls
4. Prepare the project plan
5. Prepare the full Business Case
6. Assemble the PID
7. Request project authorization → DP
(+ SB triggered during IP to plan the first delivery stage)
The PID — Project Initiation Documentation — App. A12
The PID answers the key questions needed before committing to delivery. It is an aggregation of information — not necessarily a single document. May be cross-references, presentations, or a formal contract in a commercial context.
?Why — Full Business Case
?What — Project Product Description + scope
?Who — PM team structure + role descriptions
?When — Project Plan (high level, with stages)
?How — Management approaches (risk, quality, issues, progress, commercial, comms)
?How much — Budgets, tolerances, project controls
Living product: PID is reviewed and re-baselined at every stage boundary. The original baseline is preserved as the basis against which performance is assessed at project closure. DP uses the PID to authorize the project AND the first delivery stage.
BUSINESS LAYER
Project Mandate
Idea · directive · study · post-it note
STARTING UP (SU)
Project Brief
Outline BC · scope · approach · PM team

PB authorizes
initiation
INITIATING (IP)
PID
Full BC · plans · approaches · controls

PB authorizes
project
DELIVERY STAGES
CS / MP / SB
Stage by stage execution
Activity
Biz Layer
Executive
PM
PA
Appoint Executive and PM
A/R
R
Assess previous lessons
C
A
R
Prepare outline Business Case
C
A/R
R
Assemble project brief
A
R
C
Plan the initiation stage
A
R
C
★ Exam focus — critical points
SU is pre-project — not a stage. Minimum necessary to decide whether to initiate.
SU outputs: Project Brief + Initiation Stage Plan (not the PID)
IP outputs: PID (the "contract for delivery"). PID = aggregation of information, not necessarily a document.
Project Mandate triggers SU. Provided by Business Layer. Can be anything from a strategy doc to a verbal instruction.
PID is reviewed and re-baselined at every stage boundary. Original baseline preserved for CP evaluation.
Business Layer appoints the Executive. Executive appoints the PM.
PB first decision (after SU): Authorize Initiation? PB second decision (after IP): Authorize Project?
SB is used during IP to plan the first delivery stage
13.1 Purpose
"To ensure that the prerequisites for initiating a project are established by answering the question: do we have a viable and worthwhile project?"
As much about preventing poorly conceived ideas from being initiated as about progressing viable ones. Do the minimum necessary to decide whether to initiate.
13.2 Objectives
·Business justification exists (outline business case)
·All necessary authorities exist to initiate
·Sufficient scope information available (project brief)
·Alternative approaches evaluated, chosen approach agreed
·Key individuals appointed for initiation stage
·Initiation stage work planned (stage plan)
·No time wasted on unsound assumptions about scope, timescales, or acceptance criteria
13.3 Context
Triggered by the Project Mandate from the Business Layer. Happens before the first project board decision. Outputs go to DP (Directing a Project) to trigger authorization to initiate.
Trigger: Project Mandate (from Business Layer) Inputs: Project Mandate · Previous Lessons Reports Outputs: Project Brief · Initiation Stage Plan · Outline Business Case · Daily Log · Lessons Log · Project Product Description Triggers: Project Initiation Request → Directing a Project (Authorize Initiation)
13.4 Activities — Table 13.1
Appoint the project executive and project manager — Business appoints Executive; Executive appoints PM
Assess previous lessons — review lessons from prior/similar projects; may hold a workshop
Prepare the outline business case — broad cost/benefit/risk analysis; is it viable and worthwhile?
Appoint the project management team — identify Senior User(s), Senior Supplier(s), PA, PS
Select the project approach — internal/external, linear/agile/hybrid, bespoke/package
Assemble the project brief — compile all SU outputs into the project brief (App. A11)
Plan the initiation stage — produce the initiation stage plan with controls, constraints, risks
Request project initiation — brief PB on outline BC, project brief, approach; request authority to initiate
13.6 Responsibilities — Table 13.2 (RACI)
Activity Biz Layer Executive Sen. User Sen. Supplier PM PA PS
Appoint Executive and PM A/R R
Assess previous lessons C A R
Prepare outline business case C A/R R
Appoint PM team A R
Select project approach A C C R
Assemble project brief A C C R C C
Plan initiation stage A C C R C C
Request project initiation A C C R C
C³ = if/when appointed · C²/I² = if team managers already identified
13.7 Application of Practices — Table 13.3
Business Case Developed in outline and forms part of project brief, based on project mandate and lessons learned.
Organising Executive and PM appointed. Project management team structure determined. Roles appointed for initiation stage.
Plans Key milestones captured in project brief. Project approach developed to inform later delivery method and project plan. Number of stages may be identified.
Risk Initial risks identified from project mandate and lessons. Risk log created. Risks assessed in outline BC and inform project approach.
Quality User's quality expectations captured in the project product description (part of the project brief).
Progress Initiation stage plan includes controls agreed with the project board. Daily log created to capture informal progress and issues.
Like Platform 9¾ — you must believe in the principles to use them.

The 7 principles are the foundation of everything in PRINCE2. They are universal good practices distilled from many successful and failed projects. Unless all 7 are applied, the method is not being used correctly — regardless of how many practices or processes are followed.

🌍
Universal
Apply to every project of any type, scale or industry
⚖️
Mandatory
Not optional — must all be followed for it to be PRINCE2
🧭
Non-negotiable
Cannot be omitted, even with tailoring
1 Ensure continued business justification A justifiable reason must exist to start, and remain valid throughout the lifecycle.
2 Learn from experience Actively seek, record, and apply lessons from prior and current projects.
3 Define roles, responsibilities and relationships Defined and agreed roles within an org. structure engaging business, user and supplier interests.
4 Manage by stages Planned, monitored and controlled on a stage-by-stage basis. Minimum 2 stages.
5 Manage by exception Delegated authority via tolerances against 7 performance aspects. Escalate only on forecast breach.
6 Focus on products Define and deliver products — their user quality expectations and requirements — first.
7 Tailor to suit the project Apply and adapt PRINCE2 to the environment, size, complexity, delivery method, capability and risk.
"A PRINCE2 project has business justification sufficient to warrant investment to initiate the project and ongoing investment through to successful completion. If it does not, it should be stopped."
·Justification must exist at the start AND remain valid throughout
·Documented in the Business Case (outline in SU, full in IP)
·Project = desirable, viable AND achievable — all three must hold
·If justification is lost → project is stopped (even for compliance projects)
·Checked at every stage boundary and when exceptions arise
·Executive is accountable for BC; Senior User accounts for benefits
📝 Exam: "PB decided to close prematurely as external environment changed" → this principle. Sample Paper Q3.
"A PRINCE2 project team actively seeks, records, and implements improvements as a result of relevant lessons learned from prior projects and throughout the life of the project."
Starting a project
Review previous/similar projects. If anything is novel → learn from others. Includes external organisations.
As project progresses
Continue learning. Lessons included in reports, reviews, and at end of each stage. Implement improvements during the project.
As project closes
Share insights with the wider organisation. Lessons Report compiled from Lessons Log for future projects.
·Foundation for learning = data. Projects must be clear on what data is collected, analysed, and what happens to it when the project closes.
📝 Exam: "A project holds a workshop to share experiences of new ways of working" → this principle applied by the People element. Sample Paper Q15.
"A PRINCE2 project has defined and agreed roles and responsibilities within an organisation structure that engages the business, user and supplier stakeholder interests."
·Day-to-day management structures are NOT suited to project control — projects need a temporary structure
·Three interests: Business (Executive), User (Senior User), Supplier (Senior Supplier)
·Suppliers are stakeholders that can be external to the business (Sample Paper Q4)
·The project management team builds relationships with and between internal and external stakeholders
·Responsibilities must always be allocated — even if roles are combined
·Supported by: Organising practice · Role Descriptions · PM Team Structure
📝 Exam: "suppliers are stakeholders that can be external to the business" = CORRECT statement about this principle. Sample Paper Q4D.
"A PRINCE2 project is planned, monitored, and controlled on a stage-by-stage basis."
·Stage = section of project the PM manages at any one time
·Minimum 2 stages: initiation stage + at least one further stage
·PB authorises one stage at a time → enables manage by exception
·Riskier project → more stages, shorter. Confident → fewer, longer.
·Stage boundaries link to: key investment decisions, regulatory milestones, technical gateways
·In agile: sprints/timeboxes within a stage (PRINCE2 can be tailored to work with sprints)
📝 Exam: Setting tolerances against 7 aspects of performance → Manage by EXCEPTION (not stages). Common confusion trap. Stages = authorization; Exception = tolerances.
"A PRINCE2 project establishes limits of delegated authority by defining tolerances for performance against its plans."
·7 tolerances: Benefits · Costs · Time · Quality · Scope · Sustainability · Risk
·Reduces senior management time burden without removing their control
·Decisions made at the right level in the organisation
·Escalate as early as possible when tolerance forecast to be exceeded
·4 levels: Business Layer → PB (project tolerances) → PM (stage tolerances) → TM (WP tolerances)
·Agile: time/cost fixed, scope variable → MoSCoW for scope tolerance
Benefits
Costs
Time
Quality
Scope
Sustain'ty ✦
Risk
✦ Sustainability is the 7th performance aspect added in PRINCE2 v7
📝 Exam: "Setting limits for the seven aspects of performance to enable the PM to work effectively" → Manage by Exception. Sample Paper Q5A.
"A PRINCE2 project focuses on the definition and delivery of products, in particular their user quality expectations and requirements."
·Product: an input or output — tangible or intangible — that can be described, created and tested
·4 product types: Management products · Specialist products · Project product · Sub-products
·Plan from products first → then activities, resources, schedule
·Prevents scope creep — if not in the PBS, it is out of scope
·Avoids doing activities that don't contribute to required outputs
·Quality defined in Product Descriptions before work starts (no nasty surprises)
📝 Exam: "Focus on the definition and delivery of products, in particular their user quality expectations and requirements" → this principle. Sample Paper Q6C.
"A PRINCE2 project applies and tailors the PRINCE2 method to suit the project environment, size, complexity, importance, delivery method, team capability, and level of risk."
·Apply: use the method as defined (assign roles, set tolerances, choose techniques)
·Tailor: change the method (alternative terminology, replace PRINCE2 techniques)
·Tailoring PRINCE2 techniques requires method changes. Omitting additional/contextual techniques does not.
·Project controls appropriate to scale, complexity, importance, delivery method, capability and risk
·Tailoring is documented in the PID (project plan, stage plans, management approaches)
·Cannot tailor away the principles — they are mandatory regardless of context
📝 Exam: "Adapting project controls to suit the scale and complexity" → Tailor to suit. The principles themselves cannot be tailored away.
★ Exam focus — the most-tested principle distinctions
Premature closure due to changed environment → Ensure continued BJ
Setting tolerances for 7 performance aspects → Manage by Exception (NOT stages)
Workshops sharing experience of new working → Learn from Experience
Suppliers CAN be external to the business → Define Roles
Day-to-day structures are NOT suited to project control → Define Roles
Project remains desirable, viable and achievable → Ensure continued BJ
Definition and delivery of products, quality expectations → Focus on Products
Sustainability is the 7th performance aspect — added in PRINCE2 v7
💡
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