PRINCE2_LESSON_05.pdf

PRINCE2® Foundation Lesson 5—Organisation Theme

Based on AXELOS PRINCE2® material. Material is reproduced under licence from AXELOS Limited. All rights reserved. PRINCE2® is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.

AXELOS® is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.

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Objectives After completing this lesson, you will be able to:

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●

Define key terms in Organisation theme

●

Explain the PRINCE2® approach to Organisation theme

●

Identify the roles and responsibilities in an Organisation theme

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Purpose of Organisation Theme The purpose of the Organisation theme is to define and establish the project’s structure of accountability and responsibilities (the who?).[1] ●

This theme is based on the principle of Defined Roles and Responsibilities.

●

Projects are generally based on customer/supplier relationship.

Customer Specifies the desired result and probably pay for the project. Supplier

Provides the resources and skills to deliver the project’s outputs.

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Programme—Introduction A programme is a temporary flexible organisational structure created to coordinate, direct and oversee the implementation of a set of related projects and activities, in order to deliver outcomes and benefits related to the organisation’s strategic objectives.[2]

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Programme has a longer life than a single project.

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A project can be a standalone entity or it can be a part of a programme of related projects.

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Project—Introduction Project is a temporary organisation that is created for the purpose of delivering one or more business products according to an agreed Business Case.[3] ●

Roles and jobs in a Project—PRINCE2® does not define management jobs to be allocated to

people on a one-to-one basis. It defines roles, each of which is defined by an associated set of responsibilities. ●

Roles might be shared or combined according to the project’s needs but the responsibilities must always be allocated.

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Three Project Interests PRINCE2® defines a project as a temporary organisation that is created for the purpose of delivering one or more business products according to an agreed Business Case.[4] The PRINCE2® principle of defined roles and responsibilities states that a PRINCE2® project will always have three primary categories of stakeholder. They are Business, User and Supplier.

Figure 5.1. The three project interests. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Three Project Interests (contd.) The functions of three project interests are: ●

Business ●

Ensures that investment in the project is worthwhile and project provides value for money. Executive represents the business view point. ●

User

● ●

Supplier

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●

●

Uses the output to realise the benefits. Operate, maintain or support the project’s outputs. Will be impacted by the project’s output.

Provides the necessary skills and produce the project’s product. May be in-house or external.

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Examples of Three Project Interests For the project to construct the Sydney Opera House, the following were the business, user and supplier:

Business: NSW State Conservatorium of Music and Ministry of Public Works. User: The Australian Ballet, Sydney Theatre Company and Sydney Symphony Orchestra. Supplier: Construction firm Civil and Civic and Hornibrook Group Pty Ltd.

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PRINCE2® Approach to Organisation The levels of organisation in PRINCE2® are:

Project management team

Corporate or programme management Directing—Project Board

Managing—Project Manager

Delivering—Team Manager

Figure 5.2. The four levels of management within the project management structure. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Levels of Organisation The four levels of organisation as defined by PRINCE2® are:

Corporate or programme management ●

●

Directing

Managing

Delivering

Is outside the project

Project Board is

The Project Manager is

Team members/managers

team.

accountable for the success

responsible for the day-to-

are responsible for

of the project.

day management of the

delivering the project’s

project.

products within defined

Commissions the project.

time and cost and as per ●

Identifies the

the quality expectations.

Executive. ●

Defines project-level tolerances.

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Project Management Team Structure PRINCE2® suggests a strong project management team structure.

Lines of support/advice

Figure 5.3. Project management team structure. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Role of Executive Roles of an Executive are the following: ●

Executive is appointed by corporate or programme management.

●

Ultimate accountability for the project's success is with the Executive.

●

Executive is responsible for the Business Case.

●

Ensuring that project gives value for money.

●

Appointment of the rest of the project management team is also a responsibility of Executive

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Role of Project Manager Roles of a Project Manager are the following: ● This role should NOT be shared. ● Responsible for day-to-day management of a project. ● Project Manager is responsible for the work of all the PRINCE2® processes except Managing Product Delivery, Directing a Project process and appointing the Executive and the Project Manager in the pre-project, Starting up a Project process. ● Responsible for liaison with the Project Assurance and the Project Board. ● May delegate responsibility for developing specialist products to the Team Managers. ● Manages the Team Managers and Project Support. ● Normally from customer organisation, may also come from supplier organisation. 13

Figure 5.4. The many facets of the project manager role. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Role of Senior User Roles of Senior User are the following:

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●

Represents the interest of those who will use the project’s products.

●

Specifies the needs of the users for the specialist products.

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Responsible for verifying the specialist product against the requirements.

●

Commits the user resources.

●

Specifies the benefits.

●

Accountable for demonstrating the realisation of benefits.

●

May be involved in post-project life.

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Role of Senior Supplier Represents the team that would be involved in designing, developing, facilitating, procuring and

implementing the project’s specialist products. The Senior Supplier:

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●

is accountable for the quality of products.

●

is responsible for the technical integrity of the project.

●

provides supplier resources.

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Role of Project Board Project Board consists of Executive, Senior Supplier(s) and Senior User(s). Roles of Project Board are the following: ●

Project Board is accountable for the success or failure of the project.

●

Project Board provides the resources and authorises the funds necessary for the successful completion of the project.

●

Project Board ensures effective communication both within the project team and with external stakeholders.

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Role of Project Board (contd.) Characteristics of Project Board are the following: Authority To make strategic decisions. Credibility Ability to direct the project. Ability to delegate Keep Project Board activity at the right level. Availability To make decisions and provide direction to the Project Manager. 17

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Role of Project Assurance The Project Board may not have skills, knowledge and/or time to perform the assurance activities. Roles of Project Assurance are the following: ●

The Project Board appoints other members to take Project Assurance role.

●

Team members of Project Assurance report to Project Board.

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Responsible for giving advice and guidance on issues.

●

This role should not be assigned to Project Manager.

●

Members of this team may come from an organisation’s Project Management Office (PMO).

Environment Canada’s Project Delivery Office guides and advices the Project Manager on project management and its best practices. 18

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Role of Change Authority Project Board is responsible for agreeing to each change before it is implemented. Roles of Change Authority are as follows:

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●

Projects in a dynamic environment which expects lots of requests for change may appoint a separate Change Authority.

●

Project Manager and/or the people with delegated Project Assurance responsibilities may act as Change Authority.

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Change Authority may need to have technical knowledge to evaluate potential changes.

●

Request for change could be handled by Corporate or programme management, Project Board, Delegating to the Change Authority or Delegating to the Project Manager, depending on the impact of the Change.

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Role of Team Manager Project Manager may be Team Manager depending on the project, so this role is optional. Roles of a Team Manager are the following: ●

The Team Manager reports to Project Manager.

●

Looks for direction from Project Manager.

●

The Project Manager should plan the role during the starting of the project process and at each stage in managing a stage boundary process.

●

The Work Packages are allocated to the Team Managers.

●

The Team Manager is responsible for production of the allocated products as per the Work Package.

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Role of Project Support This role is not optional. Project Support defaults to the Project Manager if it is not otherwise allocated. Roles of Project Support are the following: ●

Responsibility of Project Manager.

●

Responsible for administering any Configuration Management procedure and tools defined in

the Configuration Management Strategy. ●

Project Support and Project Assurance roles should be kept separate to maintain the independence of Project Assurance.

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Working with the Project Team Knowledge of different types of personalities and how they work together help the Project Manager in assembling balanced teams that can work effectively during a project. ●

Extra care to be exercised by the Project Manager in case of part-time teams.

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At the start of the project, team members may need training.

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Few examples of trainings are: o

Training on any process and standard to be used on the project, i.e. Configuration Management procedures, progress reporting and quality methods.

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o

Training on introduction to the project and its goals.

o

Training on PRINCE2® processes and terminologies. Copyright 2014, Simplilearn, All rights reserved.

Working with the Corporate Organisation There are usually two structures in a corporate organisation. They are the following:

Line management/functional management Project Managers can find difficulties when managing cross-functional projects due to the disagreement on overall leadership from various groups. Centre of excellence concept

This structure consists of a central standards unit, which defines standards (such as processes, templates and tools) and provides skills, training and possibly independent assurance functions to a number of projects.

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Working with Stakeholders Stakeholders: Individuals or groups who may or may not be a part of the project management team but may affect, or be affected by the project. They are individuals who can:

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Support, oppose or be indifferent to the project

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Gain or lose as a result of the project delivery

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Consider project as a threat or enhancement to their position

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Active supporters or blockers for the project and its progress

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Procedure for Stakeholder Engagement Six-step procedure for stakeholder engagement is as follows

Identifying stakeholders (Who?)

Creating and analysing stakeholder profiles (What?)

Defining the stakeholder engagement strategy (How?)

Planning Stakeholders’ engagement (When)

Engaging stakeholders (Do)

Measuring effectiveness (Results)

Transport for London regularly sends out emails to its customers asking for their opinions before taking major decisions. The customers who have registered on the website are included in this mailing list. 25

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Procedure for Stakeholder Engagement—Example ANZ Bank states that “stakeholder engagement helps to minimise risks, identify ideas for new products and services”. Hence, for a project, they typically do the following:

Identifying stakeholders: By conducting regular dialogue across a number of business and functional areas on an annual basis. Defining stakeholder engagement strategy: ANZ’s strategy is based on the principles of Congruence, Consultative, Collaborative, Creative, Communicate and Commitment. Engaging stakeholders: ANZ holds forums for specific stakeholder groups each year to seek formal input into their business agenda. Measuring effectiveness: ANZ does this through the Shareholder Review, Annual General Meeting and engagements with Australian Shareholder’s Association. 26

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Communication Management Strategy Communication Management Strategy describes the means and frequency of communication to all the stakeholders including internal and external. The other features of this strategy are the following: ●

Facilitates controlled and bi-directional flow of information.

●

Includes communication procedure/communication method to be used.

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May specify the tools that need to be used for communication.

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Includes information needs for each interested party.

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The Project Manager is responsible for documenting the Communication Management Strategy.

●

Should be reviewed at each stage boundary and while planning the final stage.

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For composition of Communication Management Strategy please refer PRINCE2 Manual Appendix A. Copyright 2014, Simplilearn, All rights reserved.

Roles and Responsibilities in Organisation Theme The table depicts the responsibilities of different roles in Organisation theme. Role

Responsibilities

Corporate or programme management

● ●

Appoint the Executive and (possibly) the Project Manager. Provide information to the project as defined in the Communication Management Strategy.

Executive

● ● ●

Appoint the Project Manager (if not done by corporate or programme management). Confirm the appointments to the project management team and the structure of the project management team. Approve the Communication Management Strategy.

Senior User

● ●

Provide user resources. Define and verify user requirements and expectations.

Senior Supplier

●

Provide supplier resources.

Text in box is from Managing Successful Projects with PRINCE2®. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Roles and Responsibilities in Organisation Theme (contd.) The table depicts the responsibilities of different roles in Organisation theme. Role

Responsibilities

Project Manager

● ● ● ●

Prepare the Communication Management Strategy. Review and update the Communication Management Strategy. Design, review and update the project management team structure. Prepare role descriptions.

Team Manager

● ●

Manage project team members. Advise on project team members and stakeholder engagement.

Project Assurance

● ● ●

Advise on selection of project team members. Advise on stakeholder engagement. Ensure that the Communication Management Strategy is appropriate and the planned communication activities actually take place.

Project Support

●

Provide administrative support for the project management team.

Text in box is from Managing Successful Projects with PRINCE2®. Copyright © AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.

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Quiz

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QUIZ

The purpose of the Organisation theme is to:

1

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a.

establish tolerances around the resources utilised on the project

b.

establish mechanism to judge whether the project is (and remains) desirable, viable and achievable

c.

implement the controls required to permit management by exception

d.

establish a strategy for communication between all interested parties of the project

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QUIZ

The purpose of the Organisation theme is to:

1 a.

establish tolerances around the resources utilised on the project

b. establish mechanism to judge whether the project is (and remains) desirable, viable and achievable c. implement the controls required to permit management by exception d.

establish a strategy for communication between all interested parties of the project

Answer: d. Explanation: The purpose of the Organisation theme is to establish a strategy for communication between all interested parties of the project. 32

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QUIZ

Which of the following statement is not true?

2

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a.

The Project Manager and Project Board decision making accountability can be delegated

b.

The Project Manager and Executive roles cannot be shared

c.

The Executive and Senior User roles can often be combined

d.

The Project Board should represent all interest groups (business, users and suppliers)

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QUIZ

Which of the following statement is not true?

2 a.

The Project Manager and Project Board decision making accountability can be delegated

b. The Project Manager and Executive roles cannot be shared c.

The Executive and Senior User roles can often be combined

d.

The Project Board should represent all interest groups (business, users and suppliers)

Answer: a. Explanation: The Project Manager and Project Board decision making accountability cannot be delegated. 34

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QUIZ

Who appoints the Executive?

3

a.

Project Manager

b. Corporate or programme management

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c.

Project Board

d.

Project Support

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QUIZ

Who appoints the Executive?

3

a.

Project Manager

b. Corporate or programme management c.

Project Board

d.

Project Support

Answer: b. Explanation: Corporate or programme management appoints the Executive.

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QUIZ

Who provides the necessary skills to produce the project product?

4

a.

Senior Supplier

b. Project Support

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c.

Project Assurance

d.

Team Manager

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QUIZ

Who provides the necessary skills to produce the project product?

4

a.

Senior Supplier

b. Project Support c.

Project Assurance

d.

Team Manager

Answer: a. Explanation: Senior Supplier is responsible for the technical integrity of the project and also accountable for the quality of products. 38

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QUIZ

Who is responsible for the overall direction and management of the project within the

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constraints set out by the corporate or programme management?

a.

Project Support

b. Project Manager

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c.

Project Board

d.

Project Assurance

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QUIZ

Who is responsible for the overall direction and management of the project within the

5

constraints set out by the corporate or programme management?

a.

Project Support

b. Project Manager c.

Project Board

d.

Project Assurance

Answer: c. Explanation: Project Board is responsible for overall direction and management of the project. 40

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QUIZ

Who is responsible for the day-to-day management of the project within the

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constraints set out by the Project Board?

a.

Team Manager

b. Project Manager

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c.

Project Support

d.

Project Assurance

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QUIZ

Who is responsible for the day-to-day management of the project within the

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constraints set out by the Project Board?

a.

Team Manager

b. Project Manager c.

Project Support

d.

Project Assurance

Answer: b. Explanation: Project Manager is responsible for day-to-day management of the project and reports to the Project Board. 42

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QUIZ

Who is responsible for the Project Support?

7

a.

Project Board

b. Executive

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c.

Project Manager

d.

Project Assurance

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QUIZ

Who is responsible for the Project Support?

7

a.

Project Board

b. Executive c.

Project Manager

d.

Project Assurance

Answer: c. Explanation: Project Support defaults to the Project Manager if it is not otherwise allocated. Project Support is the responsibility of Project Manager. 44

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QUIZ

Which of the following role is optional?

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a.

Team Manager

b. Project Board

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c.

Project Support

d.

Senior User(s)

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QUIZ

Which of the following role is optional?

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a.

Team Manager

b. Project Board c.

Project Support

d.

Senior User(s)

Answer: a. Explanation: Project Manager can act as Team Manager if the project size is small.

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QUIZ

Which of the following is not a characteristic of a Project Board?

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a.

Authority

b. Credibility

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c.

Availability

d.

Scalability

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QUIZ

Which of the following is not a characteristic of a Project Board?

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a.

Authority

b. Credibility c.

Availability

d.

Scalability

Answer: d. Explanation: Characteristics of Project Board are: Authority: To make strategic decisions, Credibility: Ability to direct the project, Ability to delegate and Availability. 48

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QUIZ

Whose responsibility is it to agree to each potential change before it is implemented?

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a.

Project Manager

b. Project Board

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c.

Senior Supplier

d.

Senior User

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QUIZ

Whose responsibility is it to agree to each potential change before it is implemented?

10

a.

Project Manager

b. Project Board c.

Senior Supplier

d.

Senior User

Answer: b. Explanation: It is the Project Board’s responsibility to agree to each potential change before it is implemented. 50

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Summary Here is a quick recap of what we have learnt in this lesson:

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Purpose of the Organisation theme is to define and establish the project’s structure of accountabilities and responsibilities

●

The PRINCE2® principle of defined roles and responsibilities states that a PRINCE2® project will always have three primary categories of stakeholder. They are Business, User and Supplier

●

The four levels of organisation as defined by PRINCE2® are Corporate or programme management, directing, managing and delivering

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Thank You

Based on AXELOS PRINCE2® material. Material is reproduced under licence from AXELOS Limited. All rights reserved. PRINCE2® is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved. AXELOS® is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved. The Swirl logo™ is a trade mark of AXELOS Limited, used under the permission of AXELOS Limited. All rights reserved.

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Copyright2014, 2014, Simplilearn, All rights reserved. Copyright Simplilearn, All rights reserved.

References [1] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Organisation, Purpose. [2] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Organisation, Programme. [3] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Organisation, Project. [4] Based on Managing Successful Projects with PRINCE2®, by AXELOS. Organisation, Three project

interests.

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