PRINCE and PRINCE2 Frameworks in Management and Business Strategy - Essay Example

Project Management and PRINCE/PRINCE2 Project management has been described as "the co-ordinated organisation, direction and implementation of a portfolio of projects and activities that together achieve outcomes and realise benefits that are of strategic importance (Office of Government Commerce, 2005; www.programmes.org, 2007)." Although some believe project management to be "just common sense," organizations often have trouble standardizing their business plan and learning from their mistakes (Bentley, 2003). PRINCE, the abbreviation for projects in controlled environments, and its "upgrade" PRINCE2, are project management methods based on tried-and-true project management skills and techniques developed by trial and error from a wide range of management corporations over more than three decades (Office of Government Commerce, 2005; Bentley, 2003). This management method was initially developed for use in IT projects (PRINCE), but has since been expanded in scope to deal with project management in any type of organization (PRINCE2). This report will focus mainly on PRINCE2, since this method is more extensive and applicable to all kinds of organizations. PRINCE2 is owned by the United Kingdom Office of Government Commerce, or OGC, and it is in the public domain, which means it is free and available for use by anyone (Office of Government Commerce, 2005). The only potential cost incurred when utilizing PRINCE2 is the cost of training and certification (see the "APM Certification in PRINCE2" section below). When a client addresses a problem and contracts a company to remedy their problem, the PRINCE2 method can be used to set the framework for how the resulting project is to proceed. The objective of PRINCE2 is to allow newly minted businesses to start off successfully, by learning from their predecessors mistakes, rather than to reinvent the wheel, per se, of project management. In effect, PRINCE2 is available to facilitate the most efficient and directed project management possible. Moreover, PRINCE2 is applicable not only to project management, but also to organization and control of the project from start to finish. Addressing Common Problems Using control projects, the Hoskyns Group recently released a survey of common problems in various organizations (Bentley, 2003). The top problems were, "unclear direction, over- or under-worked staff, people and equipment not available when needed, rework or wasted effort, final tasks were rushed, poor quality work, problems late and overspent, small problems had a big impact (Bentley, 2003)." This is rooted in a number of sources, including "customer involvement, coordination, communication, planning control, progress, and quality control (Bentley, 2003)." Although it may seem that businesses should easily overcome these problems out of common sense, the reality is that many businesses do not know the proper way to consistently apply their past mistakes to problematic issues that regularly arise. The PRINCE2 framework can be used as a robust, adaptable system that project managers can consult throughout each stage of a project. PRINCE2 Methodology There are eight steps, or phases, in the PRINCE2 method. These phases, which constitute the Business Case (i.e. the justification for the project) must be carried out fully to ensure that the end product is high-quality, generated in the allotted amount of time, and utilizes only the funds that are allocated for it (Office of Government Commerce, 2005; Getronics, 2003). The first step is called the start-up phase, during which project managers decide whether or not to accept the project desired by the customer, based on their own resources and capacity. Essentially, the managers address the question, "Is this project worth doing, and, if yes, are we fully equipped to complete it" This is an important phase during which the feasibility of the project is assessed and the company decides whether they can aptly handle the requests of the customer in the time allotted. If a company agrees to fulfill a project that they are not equipped to handle, the PRINCE2 framework cannot possibly help them. After all, the PRINCE2 system is in place to guide a company from start to finish of a project that they are inherently able to accomplish with the right guidance. If the start up phase is passed, the company then enters the initiation phase, which consists of verifying the nature of the project and the plan for its success. During this phase, the entire project proposal is laid out, for instance in a flow chart, and each step is further verified for feasibility. If difficulties arise or are projected to arise, alternatives are proposed. At this phase, the company has already committed to the project, so the verification step simply gives them the change to proactively assess the future of the project and plan ahead. This is an important step of PRINCE2 than many companies may not consider on their own. The third phase consists of planning and overviewing the entire project proposal, predicting the steps leading to the completed project, and preparing for additional caveats such as illness or emergency during the course of the project (Office of Government Commerce, 2005; Getronics, 2003). Once these initial steps are completed, the directing phase begins, when the project manager or executive delegates responsibilities for different facets of the project, and assesses the skills of each member of the task force in the context of the project. This phase is very important to ensuring that each member has a definitive role and is applying their strengths to the success of the project. Once each task member is clear of their roles, the controlling phase begins. This phase refers to the actual work each team member does on a daily basis. At this point, a strong plan is already available for the course of the project. Each team member is aware of this plan, and they are carrying out the actual activity to execute the plan. Control during this phase is essential to maintaining direction and productivity, and constant communication among team members, between team members and the project manager, and between the team and the client is especially important. In addition to controlling, managing stage boundaries-the sixth phase-is also required to constantly assure that each team member is working within their expertise and the proposed project plan is moving smoothly and linearly. If the boundaries of one team member impinge on the boundaries of another, the result can be two team members unknowingly doing the same task, which would decrease efficiency and extend the time required to finish the project. The seventh phase is managing product delivery, during which the company ensures that the customer receives the desired project in a timely manner, and also follows up with the customer to verify that the delivered product is correct. At this point, communication with the customer is especially essential, because they might encounter problems while trying to use the product, and this could lead to product maintenance fees or even damage in the product. It is important to the customer that the lines of communication remain open even after the product has been delivered, as it ensures peace of mind to the customer. Finally, the project is closed when the entire process has been completed, the company is paid, and the customer is pleased with the end product. This final phase assumes that the project has all requisite components needed by the customer (Office of Government Commerce, 2005; Getronics, 2003). In developing PRINCE2, the OGC outlined five phases that constitute the life span of a project. These phases are (1) conception, (2) feasibility, (3) implementation, (4) operation, and (5) termination. Thus, the life span of a project begins when a company addresses the need or problem of a client and conjures an idea of how to address that need. However, it is important to note that the PRINCE2 methodology, in general, deals only with implementation of a project, and not the other four phases of the project life span (Office of Government Commerce, 2005). The other steps are assumed to be inherent to the contract between company and client, and they do not necessarily fit into the PRINCE2 framework. Success by Good Practice The PRINCE2 methodology also outlines methods of good practice that must be maintained throughout the course of the project. These methods may seem to be common sense, but are in effect, the key to delivering a product that the customer deems acceptable. Good practice begins with Business Case, where the management company must determine on their own that this project is justifiable and applicable to their abilities and can be completed in a reasonable amount of time (Office of Government Commerce, 2005; Getronics, 2003). In other words, the viability of the project must be objectively assessed. The project must also be organised throughout its entire course, and this is best accomplished by establishing a task force for the project and clearly delineating the roles and responsibilities of each member of the team. Additionally, the project must have a clear set of plans from beginning to end. These particular points of PRINCE2 must be adhered to throughout the entire course of the project for it to be truly successful. Essentially, PRINCE2 helps project management teams create proactive, process-driven plans of action. In other words, these teams are always envisioning the next few steps, rather than taking a reactive approach in which the next step is never planned or known ahead of time. Reactive/adaptive management methods, such as Scrum, can be deleterious because the project can quickly and unexpectedly change direction and become something other than what the customer desired (wikipedia.org, 2007). Over the course of planning, controls must also be established, such that the quality of success is always known by all members and the rubric for making decisions is clearly defined (Office of Government Commerce, 2005; Getronics, 2003). The company must also address their own risk throughout the project, so that team members have a clear perception of difficulties they will face and whether the benefits outweigh the risks. In addition, the company must prepare a set of approaches for actively managing the projected risks as they arise. If the projected risks become too great, the company must bow out of the contract immediately, because too many difficulties during the course of the project will lead to an unhappy client and an overworked, inefficient staff. It is better to take on the smaller projects that the company can handle than to try to tackle something that is literally impossible to complete correctly. Fortunately, PRINCE2 can be used for even the least complicated projects at the smallest companies. Throughout the project, quality is of utmost importance, and the company must ensure that the initial standards of quality that the customer requires are upheld throughout the course of the project. Additionally, whether the customer wants a multitude of different, small products, or if they want one enormous product, the company must keep careful records of what products are delivered, when they were delivered, and whether they were well received by the customer. Finally, the company must be ready throughout the course of the project to be flexible enough to deal with changes directed by the customer, but also directed enough to control these changes such that precious time, energy, and money is not wasted (Office of Government Commerce, 2005; Getronics, 2003). It will occasionally happen that a client realizes the product they initially contracted a company for would be better off with a set of specific changes. The company must be ready to handle such changes in project plan and ultimately deliver exactly what would best suit the customer. Application of PRINCE2 to Projects The IT Sector's Approach Initially, PRINCE was conceived and executed by the United Kingdom Central Computer and Telecommunications Agency (CCTA), which later was absorbed by the Office of Government Commerce. The IT sector developed this approach as a standardized method for IT project management. Since then, PRINCE2 has become a generic version of the original with applicability to any type of project. Indeed, PRINCE2 is applicable to projects of any size, any caliber, and any type. This includes, but is not limited to IT, construction, engineering, business, research and development, and finance (www.datrixtraining.com, 2007). In addition, PRINCE2 is applicable to both computer-driven and paper-based projects. It is important to note that PRINCE itself is not a software tool, but rather a scalable set of methods that can be used for any project. Therefore, the "upgrade" from PRINCE to PRINCE2 is not truly an upgrade, but rather a different set of methods that have been expanded to all types of organizations. If PRINCE is working well for a particular business, there is no need for them to transition to a PRINCE2 framework. However, if PRINCE is too IT-based for a particular organization, then switching to PRINCE2 might be a shrewd business decision. PMI BoK The Project Management Institute Inc, based in the United States, owns the project management body of knowledge, abbreviated as PMBOK (Getronics, 2003; Project Management Institute, 2004). PMBOK is a lexicon that basically overviews what a project manager should know in order to correctly implement the tools and methods outlined by PRINCE2. Some people believe that they must choose either PMBOK or PRINCE2 for their project management rubric, but actually, this is a misconception. In reality, the two can be blended based on the needs of the company and the client. In fact, PMBOK and PRINCE2 do not even address the same issue. While PRINCE2 is a set of methods for successful project management, PMBOK is instead a glossary of information pertaining to project management (Getronics, 2003; Project Management Institute, 2004). In effect, the most successful management companies will make use of both complementary sources such that their methodology is determined by PRINCE2, and while the information base used to address concerns and issues is centered on PMBOK (Getronics, 2003; Project Management Institute, 2004). APM Certification in PRINCE2 OGC's partner, called the APM Group, works to establish and maintain the standardized training of organizations and individuals in PRINCE2. The APM Group acts as a channel that bestows accreditation and certification with the PRINCE2 methodology on various organizations as well as individuals training to become project managers. In order to achieve certification, one must first take the Foundation examination. This exam lasts for one hour, and consists of 75 multiple choice questions. After an individual passes the Foundation examination, they may then register and take the Practitioner examination. This exam is three hours in length, open book, and consists of three case studies that must be analyzed by the test-taker. If this exam is also passed, one achieves the status of Registered Practitioner. This certification expires after 3-5 years, and must be renewed by taking the one hour Practitioner Re-registration examination (www.prince2.org.uk, 2007). Certification in PRINCE2 confers credibility to organizations and individuals because it suggests to the client that they are an efficient and productive business. In general, the APM Group suggests that one get trained as an individual or as a cadre of qualified project managers who can then run PRINCE2 projects at their organization (www.datrixtraining.com, 2007). After one or more people are trained, they can manage a group of team members in the PRINCE2 framework. This cuts costs substantially, because all team members do not need to undergo the rigorous training or pay the exam fees. . Summary In essence, the PRINCE2 model provides the scalable framework for a successful project management program. However, it must be tailored to the needs of the client using the resources of the company. Indeed, this is strongly asserted in the PRINCE2 manual, "they key to successful use of this process model is its tailoring. Each process must be approached with the question, 'How extensively should this process be applied on this project'' (Office of Government Commerce, 2005; Getronics, 2003; wikipedia.org, 2007). In other words, the business must be able to assess their own strengths and weaknesses in the context of the PRINCE2 model, and use their own judgment whenever necessary. By providing a rubric based on real world experience of project methods that have succeeded or failed, the PRINCE2 method aims to ensure productivity and promote efficient, reliable, and standardized business methods. Initially a method restricted to the UK, PRINCE2 is rapidly being adopted by other nations, and has the potential to become a global model for project management. It has been suggested that both PRINCE2 and PMBOK, based in Philadelphia, will ultimately become the universal languages of business management. References Office of Government Commerce. (2005). Managing Successful Projects with PRINCE2, UK: Stationery Office. ISBN 0113309465 Project Management Institute. (2004). A guide to the project management body of knowledge, 5e, Newtown Square: Project Management Institute. ISBN 1-930699-45-X Getronics (2003). PRINCE2 Case Study, Buckinhamshire: The APM Group Limited. http://www.prince2.org.uk/web/site/home/Home.asp (2007) Bentley, Colin. (2003). Prince2 - A practical Handbook, 2e, Oxford: Butterworth Heinmann. ISBN 0-7506-53302 http://en.wikipedia.org/wiki/PRINCE2 (2007) http://www.programmes.org/web/site/home/Home.asp (2007) PRINCE2 Frequently Asked Questions. http://www.datrixtraining.com/princefaqs.shtml (2007) Read More