PROJEX ACADEMY

PRINCE2 ®

7 Edition
th

Foundation
Exam Cram

By Dave Litten
FOUNDATION EXAM CRAM PRINCE2 7th Edition

Copyright

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Based upon AXELOS® PRINCE2® materials. Material is used under licence from AXELOS Limited.
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Cover and internal design © The Projex Academy

V1.0 March 2024
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mechanical means, including information storage and retrieval systems – except for brief
quotations in articles or reviews – without permission in writing from its publisher, David
Geoffrey Litten.

All brand names and product names used in this book are trademarks, registered trademarks,
or trade names of their respective holders.

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The definition and characteristics of a project

Project: a temporary organization created for the purpose of delivering one or
more business products according to an agreed business case.

There are five characteristics of a project that distinguish it from business as usual:

change: projects are how we introduce change.

temporary: projects are temporary in nature. When the desired change has been
implemented, business as usual resumes (in its new form), and the need for the
project is removed.

cross-functional: a project involves a team of people with different skills working

together on a temporary basis to introduce a change that will impact others outside
the team.

unique: every project is unique. An organization may undertake many similar

projects and establish a familiar, proven pattern of project activity, but each one will
differ in a certain way.

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uncertainty: the characteristics already listed will introduce threats and

opportunities over and above those typically encountered within business as usual.
Projects are riskier than any operational aspects of an organization.

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The seven aspects of project performance

to be managed.
The project’s performance target sets the expected success level against which the
management of the project will be judged.

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Benefits: who are we doing it for? The project management team must have a clear
understanding of the purpose of the project and what needs to be achieved to
justify its investment.

Costs: many factors can affect the cost/budget available or may lead to (potential)
underspend or overspend against the cost budget. The project must be affordable.

Time: when will the project start, when will the key products be delivered, and
when will the project finish?

Quality: finishing on time and within budget is not much consolation if the result of
the project is not as specified or does not work. What is delivered by the project
must be fit for purpose.

Scope: the degree to which it is permissible to under-deliver or over-deliver

benefits (realized or estimated).

Sustainability: all projects have an impact on their environment, and project

management teams need to know the sustainability performance targets for the
project work and for the products required of the project.

Risk: limits on the plan’s aggregated risks.

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The five integrated elements of PRINCE2

The seven principles of PRINCE2: the

seven principles are the guiding
obligations and good practices which
determine whether the project is
genuinely being managed using PRINCE2.
th
PRINCE2 7 Unless these following principles are
Edition applied, it is not a PRINCE2 project:
Principles
▪ ensure continued business
justification.
▪ learn from experience.
▪ define roles, responsibilities and
relationships.
▪ manage by stages.
▪ manage by exception.
▪ focus on products.
▪ tailor to suit the project.

People: an understanding of the needs, capabilities, and motivations of the people

involved and the relationships between them is crucial to how the project is
established and managed. People are at the centre of the PRINCE2 method.

PRINCE2 practices: these seven practices describe essential aspects of project

management that must be applied consistently and throughout the project
lifecycle.

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PR CE E E

PRINCE2
e inte r ted ele ents

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PRINCE2 processes: these seven processes in PRINCE2 provide the set of activities
required to direct, manage, and deliver a project successfully:

▪ starting up a project
▪ directing a project
▪ initiating a project
▪ controlling a stage
▪ managing product delivery
▪ managing a stage boundary
▪ closing a project.

The project context: PRINCE2 has been designed so it can work within any context
including organizational and commercial context, delivery method, sustainability
requirements, and project scale.

The principles, practices, and processes are applied by the people involved to ensure
that the method is fit for the project context.

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The features and benefits of PRINCE2

As PRINCE2 is flexible and based on proven principles, organizations adopting the
method as a standard can substantially improve their organizational capability and
maturity across multiple areas of business activity.

In addition to being an established method and qualification used worldwide,

PRINCE2 has the following benefits:

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The organizational context

The PRINCE2 method does not assume any specific organizational context.

There may be users who specify the desired outputs (referred to as products in
PRINCE2), suppliers who will provide the resources and expertise to deliver the
products, and business decision-makers who will ensure that the project
investment can be justified and remains justified through the project lifecycle.

The project may be part of a programme or portfolio structure, or it may be a

standalone project reporting to the business unit’s management structure.

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How PRINCE2 principles underpin the PRINCE2 method

Ensure continued business justification.

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.

Learn from experience

A PRINCE2 project team actively seeks, records, and implements improvements
because of relevant lessons learned from prior projects and throughout the life of
the project. It applies them in future projects and shares them for others to apply.

Defined roles and responsibilities

A PRINCE2 project has defined and agreed roles and responsibilities within an
organization structure that engages the business, user, and supplier stakeholder
interests. Moreover, a PRINCE2 project management team initiates and builds
relationships with and between internal and external stakeholders.

Manage by stages
A PRINCE2 project is planned, monitored, and controlled on a stage-by-stage basis.

Manage by exception
A PRINCE2 project establishes limits of delegated authority by defining tolerances
for performance against its plans.

Focus on products
A PRINCE2 project focuses on the definition and delivery of products, in particular
their user quality expectations and requirements.

Tailor to suit the project

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.

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People in PRINCE2
People are central to the PRINCE2 method.

The purpose of a project is to deliver change, which will affect people in their
business as usual (BAU) activities, routines, and responsibilities.

How well the change is implemented, and therefore how well the project performs,
depends on the capabilities of the project team, the strength of the relationships
between them, and the people impacted by the change.

In PRINCE2, ‘people’ covers those who are working on a project and the
relationships between them, as well as those impacted by a project.

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Leading a successful change

Change management is how an organization transitions from the current state to

the target state. Effective leadership is required to deliver this change. PRINCE2
addresses change by creating and maintaining a change management approach for
the project.

Organizational

Projects will impact people or stakeholders from across the organizational

ecosystem.

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A stakeholder is any individual, group, or organization that can affect or be

affected by (or perceives itself to be affected by) the project.
Therefore, a project will need to involve those with a formal role in the project team
and key people either impacted by or critical to the success of the project (who may
not hold a formal role).
Suppliers
Project
Leading successful teams
Projects are delivered by people in a temporary team, typically working across
organizational boundaries.

This means that project teams require a different style of management and
leadership than that used for established business teams, as it can be more
challenging for a temporary leader or manager to exercise their authority.

ecosystem

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Managing successful teams

▪ Cultural intelligence or the ability to relate and work across cultures within
the organizational ecosystem. document the rules for delegating change
authority responsibilities, if required

▪ Competencies and capabilities of those assigned to the project to identify

and mitigate Gaps

▪ Team building to build trust and find compatible ways of working.

▪ Bringing teams together and building social cohesion within teams that are
co-located or have virtual or hybrid working arrangements. S
Ecosystem
Intersection/Interaction

Communication
Communication is important to avoid misconceptions and unnecessary barriers in
implementing changes.
PRINCE2 addresses communication in a communication management approach.

This defines and describes the means and frequency of communication with and
receiving feedback from across the project ecosystem, supporting alignment and
shaping of the project.

It facilitates engagement with stakeholders through the establishment of a

controlled and bidirectional flow of information.

How project teams communicate will also depend on whether they are co-located,
remote, or hybrid.
Main project stakeholder
groups
Relationships
People or groups

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PRINCE2 practices

Business case practice

The purpose of the business case practice is to establish mechanisms to judge
whether the project is (and remains) desirable, viable, and achievable to support
decision-making in its continued investment.

Key concepts related to business case

Capability: the completed set of project outputs required to deliver an outcome.

Output: the tangible or intangible deliverable of an activity.

Outcome: the result of change, normally affecting real-world behaviour and

circumstances. Changes are implemented to achieve outcomes, which are achieved
because of the activities undertaken to facilitate the change.

Benefit: the measurable improvement resulting from an outcome that is perceived

as an advantage by the investing organization and contributes towards one or
more business objectives.

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Dis-benefit: the measurable decline resulting from an outcome perceived as

negative by the investing organization, which detracts from one or more business
objectives.

Business objective: the measurable outcomes that demonstrate progress in

relation to the organization’s strategy and to which the project should contribute.

Business case: documents the business justification for undertaking a project,

based on the estimated costs against the expected benefits to be gained and offset
by any associated risks.

Benefits management approach: defines the management actions that will be

established to ensure that the project’s outcomes are achieved and to confirm that
the project’s benefits are realized.

Sustainability management approach: defines the actions, reviews, and controls

that will be established to ensure that sustainability performance targets for the
project are achieved.

PRINCE2 technique for business case management

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Organizing practice
The purpose of the organizing practice is to define and establish the project’s
structure of accountability and responsibilities (the ‘who’).

The PRINCE2 method focuses on THREE principal categories of project stakeholders

(business, user, and supplier) and includes them in the governance and
management arrangements for the project.

Business:

Projects are created to meet a business need, which needs to be continuously

justified as value for money throughout the lifetime of the project PRINCE2 defines
a project executive role to represent this viewpoint on the project.

User:

The products of a project should provide benefits to a defined set of users who
support both defining the requirements of the product and ensuring these
requirements are met.

Users can sit within the business as end users, be impacted by the project, or have
a role in operating or maintaining the products. Users can also sit outside of the
business as end users or be impacted by the outputs of the project.

PRINCE2 defines a senior user role to represent user interests on the project.

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Supplier:

Projects require people with the necessary skills and knowledge to collaborate to
deliver the products. They may come from within the organization, or external
suppliers may be used for their skills and knowledge. PRINCE2 defines a senior
supplier role to represent supplier interest on the project.

PRINCE2 project team management roles

The role and responsibilities of the executive

Appointed by the business as the single point of accountability for the project, the
executive is ultimately accountable for the success of the project. This
accountability cannot be delegated.

The project executive secures funding for the project and is responsible for the
business case and the continued business justification of the project.

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They are responsible for effectively governing the project in a way that is aligned to
the business strategy, including ensuring longer-term thinking on topics such as
environmental, social, and economic impacts.

There cannot be more than one project executive and the role cannot be combined
with the project manager.

The role and responsibilities of the senior user

Represents the user community and is accountable for the approach taken to
capture user requirements and for the specification of benefits aligned to the
business case. The role is responsible for:

▪ ensuring user buy-in to the approach

▪ monitoring products against the requirements in line with the business case

▪ demonstrating to the business that the forecasted benefits in the business

case are on track to being realized

▪ controlling change to requirements and benefits

▪ successful handover and adoption of products into the business.

Depending on the scale and complexity of the user community, more than one
person may represent users.

The role and responsibilities of the senior supplier

Represents the supplier community that is involved in all aspects of delivering the
project products and must ensure sufficient ongoing commitment of people and
resources from the supplier to support the project work.

The senior supplier is accountable for the quality of the products delivered by the
suppliers and for the technical integrity of the project. Depending on the scale and
complexity of the supplier community, more than one person may represent
suppliers.

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The roles and responsibilities of the project board

Accountable to the business for the success of the project and has authority and
responsibility for the project within the project tolerances set by the business, often
captured in a project mandate.

They are responsible for creating the right environment for the project to succeed,
including:

▪ having sufficient funding, people, and resources to deliver the project

objectives

▪ establishing clear feedback loops to support adapting and evolving the

project

▪ assuring all aspects of the project’s performance and products independently

of the project manager

▪ ensuring business strategy and objectives are reflected in the business case

▪ ensuring the project and its management approaches are aligned to the
business’ environmental, social, and governance (ESG) commitments

▪ setting stage tolerances to enable management by exception

▪ governing the project and determining the rules, constraints, shared values,
and perspectives needed to guide decision-making at all levels

▪ establishing the tolerances and change budget to support effective decision-

making

▪ focusing on the safety and well-being of the project team

▪ monitoring and supporting social cohesion within the project ecosystem

▪ managing relationships at the interface of the organizational ecosystem and

project ecosystem.

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The role and responsibilities of the project manager

Has the authority to run the project on behalf of the project board within the
agreed project tolerances and constraints. They are responsible for day-to-day
management of a project, including:

▪ managing and delegating the work to the team managers or team members

▪ setting the work package tolerances and constraints for the team managers
and project support roles to work within

▪ ensuring decisions are being made in line with the project board guidance
and tolerances

▪ managing relationships within the project ecosystem

▪ monitoring and supporting the safety and well-being of team members and
the sustainability of the project approach.

Depending on scale, complexity, skill and capacity, the project manager may also
perform the team manager and project support roles or delegate these directly to
team members.

The role and responsibilities of the team manager

Responsible for delivering the work allocated to them within the tolerances and
constraints agreed with the project manager, through:

▪ delivering the products to the agreed specifications

▪ setting the tolerances and constraints for team members to work within

▪ ensuring team decisions are in line with the project manager’s guidance and
the tolerances

▪ managing relationships both within their team and any interfaces with others

▪ monitoring and supporting the safety and wellbeing of team members and
the sustainability of the team’s approach.

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The role and responsibilities of project assurance

Project board members are accountable for the assurance of their respective areas
of concern. The project board is responsible for establishing how project assurance
will be undertaken, ensuring clarity in the roles and responsibilities and how those
appointed to assurance roles will interact with each other.

The role and responsibilities of project support

Responsible for providing services such as: administrative support, facilitating

meetings and workshops, advice and guidance on the project tools, planning
support, risk management, issue management, and change management.

Although the role is the responsibility of the project manager, it can be delegated to
suppliers, individuals, or groups within the business or to other team members.

Project support must be kept separate from project assurance roles to maintain the
independence of assurance.

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Key concepts related to organizing

Organizational levels
The project management structure has four levels, three of which represent the
project management team and a fourth that sits outside the project.

The business layer

The commissioning party within the business is responsible for providing the
project mandate, identifying the executive, and defining the project level tolerances
within which the project board will work.

Directing layer
The project board has representations from the business, user, and supplier
communities and is accountable for the success of the project. It is also responsible
for the overall direction and management of the project within the constraints
established by the commissioning party.

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Managing layer
The project manager is responsible for the day-to-day management of the project
within the constraints established by the project board.

The project manager’s primary responsibility is to manage the relationships within

the project to ensure that the project produces the products in accordance with the
strategic objectives and the agreed requirements.

Delivering layer
Team managers and members are responsible for the day-to-day management and
decision-making for their element of the project within the constraints established
by the project manager, co-creating where required with other team members
from across the project ecosystem.

PRINCE2 technique for organizational design and

development

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Plans practice
The purpose of the plans practice: is 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’).

Plan: is a proposal that outlines what, where, when, how, and who of the project as
a whole (or a subset of its activities). In PRINCE2, there are the following types of
plan:

▪ project plan
▪ stage plan
▪ team plan
▪ exception plan

Project plan: a high-level plan showing the major products of the project and
when, how, and at what cost they will be delivered.

Stage plan: a detailed plan used as the basis for project management control
throughout a stage.

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Team plan: a plan used as the basis for organizing and controlling the work of a
team when executing a work package. Team plans are optional in PRINCE2.

Exception plan: a plan that follows an exception report and explains how the
project will respond to the exception within the stage.

PRINCE2 technique for planning

The PRINCE2 technique leads to a plan based on the creation and delivery of the
required products.

Product-based planning: takes the definition and analysis of the required

products as the starting point for planning and deriving any supporting elements of
the plan from these product descriptions, such as the work breakdown structure,
estimates, and project schedule.

PRINCE2 structures the management of the project on a stage-by-stage basis.

Combined with the focus on products principle, managing by stages helps the
project management team to plan and deliver what is required when it is required.

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The number of stages can vary, based on the nature of the products and the
necessary delivery activities.

Defining and analysing the product

Defining and analysing products comprises four steps as illustrated.

Defining and analysing the products involves writing:

A project product description: a description of the project’s major products or

outcomes, including the user’s quality expectations, together with the acceptance
criteria and acceptance methods for the project.

A product breakdown structure: a hierarchy of all the products to be produced

during a plan.

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Quality practice
The purpose of the quality practice: to document the user’s requirements of the
project products and to establish how they will be met.

The quality management approach: describes the quality techniques and

standards to be applied and the roles and responsibilities for achieving the
required quality specifications and acceptance criteria during a project.

Key quality terminology

Quality: the degree to which a set of inherent characteristics of a product, service,
process, person, organization, system, or resource fulfils its requirements.

User’s quality expectations: a statement about the quality expected from the
project product, captured in the project.

Requirement: a need or expectation that is documented in an approved

management product.

Acceptance criteria: a prioritized list of criteria that the project product must meet
before the user will accept it.

Quality specifications: a description of the quality measures that will be applied

by those performing quality control and the levels that the finished product must
meet.

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PRINCE2 quality management procedure

Focuses on three elements:

Quality planning: the capturing of quality specifications for the project products
and generating the associated product descriptions and quality management
approach.

Quality control: the procedures to monitor the specific products of a project and
their development or delivery activities to determine whether they comply with
relevant standards and identify ways to minimize causes of unsatisfactory
performance.

Quality assurance: a planned and systematic activity that provides confidence that
products will meet their defined quality specifications when tested under quality
control.

Quality assurance is typically a function managed independently from the project

team.

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Risk practice
The purpose of the risk practice: 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: an uncertain event or set of events that, should they occur, will affect the
achievement of objectives. A risk is measured by a combination of the probability of
a perceived threat or opportunity occurring and the magnitude of its impact on
objectives.

The risk management approach: describes how risk will be managed on the
project. This includes the specific procedures, techniques, standards, and
responsibilities to be applied.

The risk register: maintains a record of identified risks related to the project,
including their status and history.

Risk management concepts

Risk owner: the person who must take responsibility for responding to a risk.

Risk action owner: the person who is the nominated owner of agreed actions to
respond to a risk. This role is also known as the risk actionee.

Risk probability: the estimated chance that a risk will occur. Probability is often
estimated by considering the probability or frequency of occurrence of a risk.

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Risk impact: the estimated effect on objectives should a risk occur.

Risk proximity: how near in time a risk might occur.

Risk velocity: how quickly a risk would have an impact on objectives should it
occur.

Risk exposure: the degree to which a particular objective is ‘at risk’. Risk exposure
is a neutral concept as exposure can be positive or negative.

Risk appetite: the amount and type of risk that the business is willing to take in
pursuit of its objectives.

Risk budget: a sum of money to fund specific management responses to the

project’s threats and opportunities (for example, to cover the costs of any
contingent plans should a risk materialize).

Risk tolerance: a measurable threshold to represent the tolerable range of

outcomes for each objective ‘at risk’ using the same units as for measuring
performance for that objective.

Risk response: each response to risks will depend on the particular situation and
type of risk. Different responses may be appropriate for threats and opportunities:

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PRINCE2 technique for risk management

Identify: review the plan’s context and objectives so that threats and opportunities
can be identified.

Assess: prioritize risks and assess the combined risk profile.

Plan: decide on risk responses and monitoring arrangements.

Implement: establish monitoring arrangements and execute actions for priority

risks or realized risks.

Communicate: how to communicate information regarding threats and

opportunities within the project ecosystem and to external stakeholders where
needed.

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Issues practice
The purpose of the issues practice is to collect and assess issues and control
changes to the project’s baseline.

An issue is an event relevant to the project that requires project management

consideration. There are different types of issues:

▪ A problem: an issue with an immediate and negative impact.

▪ A concern: an issue whose timelines and impact need to be assessed.

▪ An event external to the project: that may impact the project in some way.

▪ A business opportunity: an issue that represents unanticipated positive

consequences for the project or user organization.

▪ A request for change: a proposal for a change to baseline.

▪ Off-specification: a product that will not meet its quality specifications.

In PRINCE2, issue management encompasses change control.

A change is defined as a modification to any of the approved products that

constitute the project baseline.

A project baseline is the current approved versions of the management products

and project products that are subject to change control.

Change budget is the money or authorized constraints set aside in a plan to cover
changes. It is allocated by those with delegated authority to deliver authorized
changes.

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PRINCE2 has a five-step issue management technique (capturing, assessing,

recommending changes, deciding on changes, implementing changes):

Guidance for effective issue management

The PRINCE2 issue management approach comprises:

▪ baselines: describes what is subject to change control

▪ issue resolution: how issues are identified, captured, assessed, and

recommended for resolution.

▪ change control: describes how changes to the project baseline are

controlled.

▪ delegating authority for changes: allocating authority from the project

board down to enable a responsive but controlled way to handle changes

▪ change budget: the money set aside in a plan to cover changes, allocated by
those with delegated authority to deliver authorized changes.

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Often, issues are first presented informally in conversations or communications

among project team members. This is particularly the case for issues that constitute
a problem, concern, or business opportunity.

▪ A problem is an issue with an immediate and negative impact.

▪ A concern is an issue whose timeliness and impact need to be assessed.

▪ Business opportunity: An issue that represents unanticipated positive

consequences for the project or user organization.

▪ Change control: the process by which changes that may affect the project
baseline are identified, assessed, and then approved, rejected, or deferred.

▪ Request for change: a proposal for a change to a baseline.

▪ Off-specification: a product that will not meet its quality specifications.

▪ Concession: an off specification that is accepted by the project board

without corrective action.

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The Progress practice

The purpose of the progress practice is to:

▪ 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.

The progress management practice is based on an overarching plan-do-check-act

cycle.

Effective progress management includes:

▪ defining management levels and tolerances for progress control

▪ applying two types of control (event-driven and time-driven)

▪ reviewing progress and lessons

▪ reporting progress and lessons

▪ forecasting remaining work

▪ escalating

▪ using data.

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Management levels and tolerances for progress control:

The project is managed by exception between four management levels against

tolerances for seven performance targets.

The tolerance levels establish limits of delegated authority:

Benefits: the degree to which it is permissible to under deliver or over deliver

benefits (realized or estimated).

Costs: the degree of permissible overspend/underspend against agreed budget.

Time: the degree to which a project is permitted to deliver later or earlier than an
agreed target completion date.

Quality: how much something can vary from agreed quality criteria.

Scope: permissible variation of the plan’s products.

Sustainability: limits on the agreed metrics for sustainability.

Risk: limits on the plan’s aggregated risks.

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Types of control
PRINCE2 provides two types of progress control throughout the life of a project:

Event-driven control
A control that occurs when a specific event occurs. For example:

▪ the end of a stage

▪ the completion of the project initiation documentation

▪ the creation of an exception report

▪ organizational events that may affect the project, such as financial year end.

Time-driven control
A management control that occurs at predefined periodic intervals. For example:

▪ producing highlight reports for the project board

▪ checkpoint reports showing the progress of a work package.

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Escalating exceptions
An exception is 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).

PRINCE2 technique for exception management

PRINCE2 includes a six-step exception management technique shown below.

Step 1
From the work package data, the team manager forecasts that one or more of the
products in the work package will take the work package outside one of its
tolerances. At this point, an issue is raised for the attention of the project manager.

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Step 2
If the issue will affect the stage (or project) tolerances to the point that they are
forecast to be breached, an exception report is created by the project manager
detailing the situation with resolution options and a recommendation.

The exception report is sent to the project board or project executive at the
directing level, along with any other relevant data to assist in their decision.

Step 3

The project board or project executive have several options that they could take.
They may:

▪ reallocate the overall project tolerances to resolve the breach of the stage
tolerance

▪ reprioritize the requirements to bring the stage back within tolerance (de-
scoping or re-scoping the product)
▪ inform the project manager that they require more time to consider their
options

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▪ implement the exception report and request an exception plan from the
project manager

▪ implement the exception report by escalating to the business layer for advice
and direction, if the exception will take the project outside one or more of its
project level tolerances

▪ the business layer will provide direction to the project board, which will then
direct the project manager accordingly.

Step 4
The project manager ceases the current stage and introduces a stage boundary to
create the exception plan and adjust any other related information in the project
initiation documentation.

An end stage report may also be produced where the stage has progressed to a
point where this would be useful data for the decision.

Step 5
The project board or project executive will assess the exception plan and may take
several options. They may:

▪ reject the exception plan and request amendments from the project
manager reject the exception plan and direct the project manager to
continue with the stage (this may require minor adjustments to the current
stage)

▪ approve the exception plan and return it to the project manager for further
action.

Step 6
The exception plan will be received by the project manager with a direction to
implement it as a new stage plan. In effect, the exception plan becomes the new
stage plan.

The project manager authorizes the next set of work packages for the delivering
level to recommence, taking into consideration the issue that triggered the
exception.

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Starting up a project
The purpose of the process of starting up a project is to ensure that the
prerequisites for initiating a project are established by answering the question, ‘do
we have a viable and worthwhile project?’.

The decision to start the project must be explicit, as the activities within the process
of starting up a project happen before this decision.

The project brief ensures that the project has a commonly understood and well-
defined starting point.

The objectives of the process of starting up a project are to ensure that:

▪ there is a business justification for initiating the project (documented in an

outline business case)

▪ all the necessary authorities exist for initiating the project (for example, to
assign people and secure resources)

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▪ sufficient information is available to define and confirm the scope of the

project (in the form of a project brief)

▪ alternative approaches have been evaluated and the chosen project

approach agreed

▪ individuals are appointed who will undertake the work required in the
initiation stage or take significant project management roles during the
project

▪ the work required for the initiation stage (documented in a stage plan) is
planned

▪ time is not wasted initiating a project based on unsound assumptions

regarding the project’s scope, timescales, acceptance criteria, or constraints.

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Directing a project
The purpose of the process of directing a project is to enable the project board
to be accountable for the project’s success by making key decisions and exercising
overall control while delegating day-to-day management of the project to the
project manager.

The objectives of the process of directing a project are to ensure that:

▪ there is authority to initiate the project

▪ there is authority to deliver the project product

▪ appropriate management direction and control are provided throughout the

project’s life

▪ the project remains viable

▪ the business layer has a connection to the project

▪ there is authority to close the project

▪ plans for realizing the post-project benefits are managed and reviewed.

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Initiating a project
The purpose of the process of initiating a project is to establish solid
foundations for the project, enabling the business to understand the work that
needs to be done to deliver the project product before committing to any
significant expenditure or resources.

The objectives of the process of initiating a project are to ensure that there is
common understanding of:

▪ the reasons for doing the project, the benefits expected, and the associated
risks (documented in a full business case)

▪ the scope of what is to be done and the products to be delivered

▪ how and when the products will be delivered and at what cost

▪ who is to be involved in the project decision-making

▪ how the quality required will be achieved

▪ how baselines will be established and controlled

▪ how risks and issues will be identified, assessed, and controlled

▪ how progress will be monitored and controlled

▪ who needs information, in what format, and at what time

▪ how the project applies business policies, methods, and guidance.

The full business case will be used by the project board to authorize the project
and provides the basis of the ongoing check that the project remains viable.

The project initiation documentation (PID) is an aggregation of many of the

management products created or updated during initiation and used to gain
authorization for the project to proceed.

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Controlling a stage
The purpose of the process of controlling a stage is 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.

The objectives of the process of controlling a stage are to ensure that:

▪ attention is focused on delivery of the stage’s products; any movement away

from the products and delivery method that was agreed at the start of the
stage is monitored to avoid uncontrolled change

▪ risks and issues are controlled

▪ the business case is kept under review

▪ the agreed stage products meet the agreed quality expectations and are
accepted

▪ the project management team focus on delivery within the established

tolerances.

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Managing product delivery

The purpose of the process of managing product delivery is to control the link
between the project manager and the team manager. This is achieved by agreeing
the requirements for acceptance, execution, reporting, and delivery of specialist
products.

The objectives of the process of managing product delivery are to ensure that:

▪ work on products allocated to the team is authorized and agreed

▪ team managers and their teams are clear as to what is to be produced and
what is the expected effort, cost, and timescales are

▪ the planned products are delivered to quality expectations and within the
tolerances

▪ accurate progress information is provided to the project manager at an

agreed frequency to manage expectations.

The purpose of a work-package description is to describe how one or more

products will be produced and delivered. It is used to pass responsibility for work
formally to a team manager or team member.

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Managing a stage boundary

The purpose of the process of managing a stage boundary is to enable the
project manager to provide the project board with sufficient information to be able
to:

▪ review the success of the current stage

▪ prepare the next stage plan

▪ review the updated project plan

▪ confirm continued business justification and acceptability of the risks.

Therefore, this process should be executed at, or close to, the end of each stage.

The objectives of the process of managing a stage boundary are to:

▪ 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 if necessary, update the project initiation documentation, in

particular the business case, project plan, user’s quality expectations,
management approaches, project management team structure, and role
descriptions

▪ provide the information needed for the project board to assess the
continuing viability of the project

▪ record any information or lessons that can help later stages of this project or
other projects

▪ request authorization to start the next stage.

For exceptions, the objectives of the process of managing a stage boundary are
similar to those listed above but include preparing an exception plan and seeking
approval to replace the project or current stage plan with the exception plan.

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Closing a project
The purpose of the process of closing a project is 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 the approved changes to
the objectives, as established in the project initiation documentation, have been
achieved.

Where there is a cause for a premature close, this process ensures the project is
closed in an orderly way.

The objectives of the process of closing a project are to:

▪ check user acceptance of the project product

▪ ensure that the business can support the products when the project is closed

▪ review the performance of the project against its baselines

▪ assess any benefits that have already been realized, and update the benefits
management approach to include any post-project benefit reviews

▪ ensure provision has been made to address all open issues and risks, with
follow-on action recommendations

▪ ensure the project is closed in an orderly way and not simply abandoned (in
the case of a premature close)

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