A good combination of resources, skills, technology and ideas is the most important driver behind the success of a project management method (The Office of Government Commerce, 2009). PRINCE2 method of project management proved its efficiency in combining those skills. In this crucial stage of IT project failure, PRINCE methods of project management has been identified as one of the best adaptable approach for the management of almost all project (OGC, 2002). Though it was developed for the IT project management for Central Government in 1989, later it has been adopted by many other public and private firms which were influenced by the statistics of the PRINCE2 method’s efficiency. PRINCE2 embodies several years of good practices in project management.
The main aim and objective of this coursework is to find out whether the PRINCE2 method is the best approach of project management method. It would be done by comparing the benefits and problems that may arise from implementation of PRINCE2. Besides, PRINCE2 should also be compared with some other project management methods to checks its efficiency over them.
2. HISTORY OF PRINCE2
PRINCE2 means PRojects IN Controlled Environment (PRINCE2, 2002). PRINCE2 is a registered trademark of The Office of Government Commerce (OGC, 2002). Though, PRINCE2 was first introduced in 1996, it had its root at 1975. OGC (2002) published the following steps regarding the development stages of PRINCE2:
1975: Simpact Systems Ltd created a project management method known as PROMPT.
1979: PROMPT was adopted by the Central Computer and Telecommunications Agency (CCTA) as the standard to be used for all Government information system projects.
1989: CCTA established PRINCE based on their previous project management method known as PROMPT. After the establishment, PRINCE effectively superseded PROMPT within Government projects. PRINCE remains in the public domain and copyright is retained by the Crown.
1996: Having been contributed to by a consortium of some 150 European organisations, PRINCE2 published.
Murray (2009) figures the following information regarding the progress of PRINCE2 during the period of 1996 to 2008:
Apart from those progresses, PRINCE2 is being used by private sectors as well as public sectors and its’ being used for almost all types of project like construction, change, technology (Murray, 2009).
3. OVERVIEW OF THE MEHTOD
PRINCE2 is process driven methods of project management. The PRINCE2 process is divided into eight processes. Those are:
Source: OCG, 2002.
3. A. Starting up a project
Before starting any project, it is extremely important to ensure that all perquisite of initiating the project are on place. As PRINCE2 is a controlled management technique, this step of PRINCE2 enables a controlled start of the project. The six key activities of this stages (OCG, 2002) are:
- Design and appointment of the project management team.
- Ensuring information of the project brief.
- Establish project approach
- Establish customer’s quality expectations
- Set up a risk log
- Create the initiation stage plan
3. B. Planning
Planning is a repeatable process and plays an important role in other seven processes of PRINCE2. Planning provides all personnel involved in the project with information on requirement, how the requirement will be fulfilled, what equipment and resources would be use to achieve those equipment and the predicting time of events happening (OGC, 2002).
The key activities of Planning process are shown in the following graph:
Source: ASSIST, 2007
3. C. Initiating a Project
This stage deals with how the required product quality will be achieved. The main objectives of this stage are documenting and confirming an acceptable business case, to establish plan and estimated cost of the project. The following graph represents the process involved in initiating a project.
Source: ASSIST, 2007
3. D. Directing a Project
This section mainly deals with the rules and regulations that will be followed by project management team to control the overall project. The objectives of this stage are ensuring success of the project by providing overall direction and guidance, risk management, authorizing a stage or exception plan, giving ad-hoc direction etc (OCG, 2002).
3. E. Controlling a Stage
In PRINCE2, projects are broken into stages and those sub-processes dictate how each individual stage should be controlled. The following cycle is followed to during this stage to have efficient control to the project:
Source: ASSIST, 2007
3. F. Managing product delivery
The objectives of this stage is to ensure that planned products are created and delivery. Sub- processes and key activities of this stage are shown in the following graph:
Source: ASSIST, 2007
3. G. Managing Stage boundaries
Managing Stage boundaries deal with the works that has to be done at the end of the particular stage. It also deals with the actions that have to be taken if the stage goes outside of its tolerance level. The following process is followed for managing stage boundaries:
Source: ASSIST, 2007.
3. H. Closing a Project
The purpose of this stage is to execute a controlled close to the project. Key activities of this stage are decommissioning a project; identifying follow-on actions; and project evaluation review (OGC, 2002). OGC (2002) outlined the following objectives of this process:
- Check the difference between the prediction of the projects outcome and actual results of the projects.
- Ensure the acceptance of products by the customer and find out to what extend the product is accepted by the customer.
- Confirm that maintenance and operation arrangements are in place
- Arranging relevant training if needed.
- Make recommendation for future works on the base of recent results.
- Prepare an end project report and archive it in project files for future use.
4. BENEFITS OF PRINCE2
The Office of Government Commerce (2009) described the benefits for PRINCE2 from three perspectives. Project managers, directors or executives of projects and the organization itself would be benefited from PRINCE 2.
4. A. Benefits to project managers
4. A. I. Standard Structure of projects
PRINCE2 enables project managers to use a defined structure for delegation, authority and communication. In 1998, a survey in Systems Integration Management Office (SIMO) had done by French computer manufacturer and systems integrator shows that 75% of project managers blame inefficient structure of their company for their failure in accomplishing project on time (Alvarez, 2003). It represents the importance of a good structure in business.
4. A. II. Accurate Planning
Lack of good planning is one of the major causes behind the failure of project management. In order to make the planning more accurate, PRINCE2 divide the whole projects into some manageable stages (OGC, 2002).
4. A. II. Communication
Around 57% of the project fails because of weak communication between the relevant parties of a project (Alvarez, 2003). In order to remove this problem, PRINCE2 established regular reporting system within the organization and manage meeting at any vital stage of the project (OGC, 2002).
4. B. Benefits to directors, executives and senior responsible owners
4. B. I. Implementing management by exception
PRINCE2 use management by exception for the senior management of a project (OGC, 2002). If the senior management doesn’t forecast any problem regarding the project, they allow the project manager to get into the project (Project Management, 2005). PRINCE2 allows senior management to initiate projects confidently and delegate some of the responsibility and authority for their management. (University of Glasgow, 2008).
4. B. II. Savings time and money
Implementation of PRINCE2 enables senior management to get frequent information about the project status without arranging time & money consuming meeting (OGC, 2002).
4. C. Benefits to organization
4. C. I. Controlled management
The name PRINCE2 itself informs that it’s a project in control environment. Change control technique of PRINCE2 ensures controlled management of a project. University of Glasgow (2008) identifies four important conditions which have been insured by PRINCE2 in order to maintain control management. Those are clarity of purpose, credible planning, commitment and control. According to OGC (2002), PRINCE2 describes the following procedures to ensure control management:
- How to coordinate people and activities in a project.
- How to supervise the project
- What steps should be taken if there is variation between the actual results and predicted results.
PRINCE2 specified each of the above process with its key inputs and outputs and with specific goals and activities to be carried out, which gives an automatic control of any deviations from the plan (OGC, 2002). There are eight main processes and 45 sub-processes of PRINCE2 which ensures the controlled and organized start, middle and end part of a project (OGC, 2005). Besides, PRINCE2 fits into ISO 9000 Quality Management System (SIEGELAUB, 2004).
4. C. II. Involvement of managers and stakeholders
A Standish Group survey (2001) identified involvement of stakeholders as the most important driver behind the success of the project (Alvarez, 2003). According to Cane (2006) absence of all the stakeholders in the aims and objectives of a project is frequently quoted as a cause of project failure. PRINCE2 provides the organization with active involvement of users and stakeholders throughout the project to ensure that the product(s) will meet the business, functional, environmental, service and management requirements (OGC, 2005).
4. C. III. Scalability
Every aspects of PRINCE2 may not be applicable to the every projects of an organization. To help organization with this problems, very process of PRINCE2 has a note on scalability which enables organization to understand up to what extent they should use PRINCE2 (APM Group, 2008).
4. C. IV. Availability
The PRINCE2 methodology is in public domain and available of the shelf (APT, 2009). There are more than 1.6 million pages on World Wide Web related to PRINCE2 (Murray, 2009). Besides there is an existing body of experience and PRINCE user community which always available to support organization regarding any problem with PRINCE2 use (APT, 2009).
5. PROBLEMS WITH PRINCE2
Advanced Projects Techniques (2004) identified five problems of PRINCE2 for which PRINCE2 still is not widely used in private sectors. Those problems are described below:
5. A. Problems with “One size fits all” approach
In modern globalized economy, projects are extremely diversified. It would be really unrealistic to predict that one standardized project management method like PRINCE2 can be used for every project. Though the scalability options of PRINCE2 reduce the problem to certain extent, but the problem can’t be ignored completely.
5. B. Problems with Staged approach
The staged approach of PRINCE2 requires activities to perform sequentially. This approach is best for the projects which involve Research and Development or technology development contents as phase-gates are negotiated their step by step. But those types of project are small percentages compare to those projects whose don’t need step by step checking. According to Tang (2008) PRINCE2 don’t give enough focus on the softer side of project management, particularly when it comes to the people involved in the project.
5. C. Little added Value
Some of the processes of PRINCE2 provided little added value to most of the companies. Directing a project is a good example of those types of processes.
5. D. Too formal and bureaucratic
Implementation of PRINCE2 may create problems for the management with unnecessary levels of formality and excessive bureaucracy. The smaller the size of a project, the higher the formality and bureaucracy problem it would face if it implement PRINCE2.
5. E. Expensive
If an organization wants to change its existing project management method for implementing PRINCE2 it may be disruptive and expensive. In recent credit crunch most of the companies are trying to minimize their cost. But PRINCE2 will not be a suitable choice for those organization who wish achieve earlier practical results at lower cost and in shorter time scale (Dale, 2005).
Best Management Practice (2007) identifies following two limitations of PRINCE2:
5. F. Ignoring product delivery mechanism
PRINCE2 deliberately does not encompass the mechanics of product delivery.
5. G. Agile Mindset
It is classically built around the time, cost and quality (TQC) triangle which does not quite line up with the agile mindset.
6. PRINCE2 VS. PMBOK
Many people assume PMBOK and PRINCE2 are competitors, but in reality PMBOK and PRINCE2 are complementary and can be used in conjunction for effective project management (Copland, 2007). PMBOK refers to Project Management Body of Knowledge (Project Management Partners, 2007). PMBOK identifies and describes the subset of project management which is accepted generally (PMP, 2007). Because of the difference in abstraction level it’s very hard to do comparison between PRINCE2 and PMBOK. PMBOK and PRINCE2 really serve different purposes and are therefore not directly comparable (Vancouver, 2002).However, some competitive advantages of PRINCE2 and PMBOK can be identified.
Jucan (2005) defines PMBOK as a guide and PRINCE2 as methodology. PMBOK is a collection of recommendations and standards which are US standard. For business organization, PMBOK is like a highway from where they can choose their own comfortable way (Jucan, 2005). In a word PMBOK deals with various procedures of doing a thing, whereas PRINCE deals with unique, clear and step by step process.
PMBOK provides information on procurement, earned value management, time management, communication management, HR management, whereas PRINCE2 doesn’t cover those topics (Copland, 2007). Unlike PMBOK, PRINCE2 offers several techniques and it emphasize mainly on product based planning, change control and quality review technique (Siegelaub, 2004). While PRINCE2 is designed for a variety of customer/supplier situations PMBOK has been written on the assumption that the project will be run for a customer with a single (prime) supplier involved throughout (Vancouver, 2002).
Project Management Partners (2007) view PMBOK as a foundation enriched by the PRINCE2 method. Copland (2007) seen PMBOK and PRINCE2 as complementary, but they are not in complete and not mutually exclusive.
7. RECOMMENDATION
Siegelaub (2004) recommend using both PMBOK and PRINCE2 to get best result. After knowing about PMBOK, it can use PRINCE2 to structure their methodology (Siegelaub, 2004). Company can use key components and techniques like product descriptions, quality review, configuration management, change control, work packages from PRINCE2 and they can use PMBOK for depth, techniques, plus HR and procurement as needed. There is another project management method named as Information Technology Infrastructure Library (ITIL) which is also marked as best practice approach to information services after it combines with PRINCE2 project management tools (Cane, 2007).
OGC (2002), APM Group (2007), Murray (2007) and Best Management Practice (2007) emphasizes on combination of PRINCE2 and Dynamic Systems Development Method (DSDM) to remove the problems of PRINC2. The organizational structure after the combination of PRINCE2 and DSDM would be like this:
(* DSDM roles are shown in yellow)
Source: Richard (2007)
Having a DSDM option would allow organization using PRINCE2 to have a choice in the way they execute a project. Combination of DSDM and PRINCE2 would enable organization to take advantage of a more agile approach to converge on an accurate solution (Richards, 2007).
OGC (2005), Murray (2007) also recommends the use of P2MM (PRINCE2 maturity model). It can be used for the following purposes:
- To help implement PRINCE2 (first time users)
- To re-invigorate/enhance existing PRINCE2 implementations
- To help organizations improve their project performance by going beyond training and templates
- As a benchmark to assess organizational capability, plan improvements and measure the improvements
- For organizational accreditation
8. CONCLUSION
From the above discussion, it has been clear that PRINCE2 methods of projects management got some problems and those problems affects more to the small private companies compare to public and other large size private companies. However, there are huge opportunities for PRINCE2 to grow in future. In terms of recent period, it can be conclude that PRINCE2 may not be an efficient methodology for all companies, but for large companies and government sector it is efficient. There are still no records found regarding huge loss in any institute because of failure in their PRINCE2 strategy. Besides, there is a high chance that there would be some update on current PRINCE2 so that it can be used by small private firms also.
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APPENDIX
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