Issue 11 of Project Management with PRINCE2®
We started talking about the first theme yesterday: the Business Case. Now we need to talk about our system of updating and checking it. There are two “stage boundaries” that require an update and review of the Business Case.
The first one is easy; that’s when you’re reaching the end of the stage, and you have to plan the next one. At this time, you also update the Business Case based on the output and result of the stage you’ve almost completed. Then you see if it makes sense to continue the project in the next stage.
Yes, it’s OK to cancel projects! Actually, it’s a sign of good project management. When you don’t have any controls, you don’t even know if the project is not beneficial and continue wasting time and money.
The second “boundary” is the “exception”. Do you remember the “manage by stages” principle?
We create a detailed plan for each stage before its start. Based on the “manage by exception” principle, each plan should have tolerances. For example, a stage is planned to be 2 mounts ± 2 weeks, and €150k ± €30k. Those “± values” are the tolerances and the rest are called “budget”. Yes, “budget” refers to both the time and cost.
Anyway, if you have an issue and you forecast it to delay the stage for 10 days, it’s inside the tolerance. So it’s OK, and the Project Manager will decide how to fix it. But, if you forecast it to delay the project for 20 days, it’s outside the tolerance of this example (±2 weeks) and therefore it’s an EXCEPTION!
When an exception occurs, the plans and the Business Case will be updated and sent to an authority higher than the Project Manager to decide. That authority is called the Project Board. We’ll talk about it later.
So, the second boundary is when there’s an exception and we’ve realized that we cannot meet the targets within the tolerance level. It makes sense, doesn’t it? We have a big issue, and maybe it makes the project unjustified.
So, we reviewed the first theme: the Business Case. I also mentioned the “project board”, so, let’s talk about people involved in the project and their relations. In other words, the project organization. How do you form the organization of your projects?
P.S. to be honest, I love it when you share this course in your social networks. So, if you like, here are the links:
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Project Management with PRINCE2®
PRINCE2 is probably the most famous project management methodology that is applicable to every type of project. This is a great opportunity, because you can use the same knowledge for a wide variety of projects; from organizing a party to a million-Dollar oil and gas project.
PRINCE2 is not the easiest thing in the world to learn, and that’s why not many people are familiar with it. I thought it would be a good idea to make it as simple as possible with this awareness course. You can just spend about 1 minute a day of your otherwise wasted time on the way to work or back home for 6 weeks, and voila!
At the end of the course, I’ll tell you how to continue your studies or get certified; in case you’ve become interested.
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