EFFICIENCY OF PRINCE2 AS A PROJECT MANAGMENT METHOD

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ABSTRACT

This coursework is a requisite for the course Managing Systems Implementations. The main objective of this coursework is to check the efficiency of PRINCE2 as project management methods. In order to do that, emphasizes are given mainly on the benefits as well as problems that may arise from implementing PRINCE2, and comparison of PRINCE2 with other project methods. Besides, some recommendation has been provided to get better results from PRINCE2.


TABLE OF CONTENTS                                                        PAGE NUMBER

1. INTRODUCTION                                                                        5

2. HISTORY OF PRINCE2                                                                6

3. OVERVIEW OF THE MEHTOD                                                        7-10

3. A. Starting up a project                                                7

3. B. Planning                                                                7

3. C. Initiating a Project                                                8

3. D. Directing a Project                                                9

3. E. Controlling a Stage                                                9

3. F. Managing product delivery                                        9

3. G. Managing Stage boundaries                                        10

3. H. Closing a Project                                                10

4. BENEFITS OF PRINCE2                                                                11-12

4. A. Benefits to project managers                                        11

4. A. I. Standard Structure of projects                11

4. A. II. Accurate Planning                                11

4. A. II. Communication                                11

4. B. Benefits to directors, executives & senior responsible owners        11

4. B. I. Implementing management by exception        11

4. B. II. Savings time and money                        11

4. C. Benefits to organization                                                12

4. C. I. Controlled management                         12

4. C. II. Involvement of managers and stakeholders        12

4. C. III. Scalability                                        12

4. C. IV. Availability                                        12

5. PROBLEMS WITH PRINCE2                                                        13

5. A. Problems with “One size fits all” approach                        13

5. B. Problems with Staged approach                                        13

5. C. Little added Value                                                13

5. D. Too formal and bureaucratic                                        13

5. E. Expensive                                                        13

5. F. Ignoring product delivery mechanism                                13

5. G. Agile Mindset                                                        13

6. PRINCE2 VS. PMBOK                                                                14

7. RECOMMENDATION                                                                15-16

8. CONCLUSION                                                                        16

9. REFERENCES                                                                        17-19

10. APPENDIX                                                                        20


1. INTRODUCTION

After the development of IT, different companies use different types of project management methods according to their needs. A survey of CIO (2008) shows that in total around 62% of IT project failed and 25% of IT project get cancelled before completion. In investigating the reasons behind failure of project management, inefficient co-ordination between time and budget, unexpected increase in maintenance cost, failure to deliver business values are identified as common reason (Asay, 2008). Alvarez (2003) identified seven major reasons behind project failure. Those are lack of user involvement, organizational structure/lack of management support, lack of clear vision, unable to manage team, unable to cope with project size, lack of training, lack of resources. Failure in project management may cause significant looses to the company. Large British companies are wasting more than £13m a year each by not scrapping failing IT projects (Antony, 2004).

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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 ...

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