A key aspect for the project is management of Risk. Management of Risk aims to identify risks that threaten the project and then manage them. It is not necessarily required to eliminate a risk (or all risks), that could be an disproportionate effort and could prove costly.
The project manager must be aware of the risks from the beginning of the project and not limited to one stage, but looking forward towards the end of the project. When decisions are taken they can have impact on the risks. So a risk assesment is a continous process.
Risk are introduced at any stage in the project, so good management of them is a necesity.
The Prince2 risk management cycle is divided in two steps:
- Risk analysis
- Identify the risks
- Evaluate the risks
- Identify suitable responses to the risk
- Select
- Risk management
- Plan and resource
- Monitor and report
Reference to the manual: “Managing Successful Project” from OGC, the 2005 edition:
- Management of risk - Chapter 17
- Risk management cycle - Chapter 17.3
- Risk analysis - Chapter 17.3.1
- Risk Management - Chapter 17.3.2
The Prince2 Health Check contains the following questions:
- Is there a Risk Log?
- Is it kept up-to-date?
- Are risks to each plan identified, analysed and acted upon?
- Are business risks identified?
- Is a formal procedure for the management of risk in use?
- Is risk assessment part of each End Stage Assessment?
- Were the major risks entered in the PID?
- Have risk owners been identified?
- Are risks monitored on a sufficiently regular basis?
- Is risk assessment part of each major change request assessment?
- Were risk likelihood and impact assessed?
- Have proactive risk actions been taken where necessary?
- Were any needed contingency plans prepared?
- Were all obvious risks covered?
- Were the risks and countermeasures discussed with the Project Board?
- Were appropriate countermeasures taken?
- Were risks reassessed when plans were changed?
Written by admin on June 23rd, 2008 with no comments.
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The purpose of a business case is to capture the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argumentation. The logic of the business case is that any time resources such as money or effort are consumed, they should be in support of the business. An example could be that a software upgrade might improve system performance but the “business case” is that better performance would improve customer satisfaction.
Business cases can range from comprehensive and highly structured, as required by formal project management methodologies, to informal and brief.
Information included in a formal business case could be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), the expected costs of the project, a gap analysis and the expected risks.
Consideration should also be given to the option of doing nothing including the costs and risks of inactivity. From this information, the justification for the project is derived.
The Business Case is updated constantly for the justification of the project. Each time a stage of the project is finished, the Business Case will be updated according to the revised planning and is assessed whether it still makes sense for the project to proceed.
To perform the Prince2 Health Check for the Business Case, click here!
These are the questions to answer:
- Is there a Business Case?
- Are the reasons for the project clearly defined and valid?
- Is there an Investment Appraisal?
- Are figures based on defined items that can be measured?
- Is the Business Case passed down from pre-project work?
- If so, have the figures been checked out?
- Are costs based on the Project Plan or some other figure?
- Are benefits stated in terms that can be measured in the Post-Project Review?
- Have before measurements been taken in order to assist comparisons in the Post-Project Review?
- Is the Business Case updated and reviewed for each End Stage Assessment?
- Who measures the impact of changes on the Business Case?
- Is the impact of changes on the Business Case assessed?
- If the project is part of a Programme, is the Programme s Business Case fully reflected?
Written by admin on June 19th, 2008 with no comments.
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The organisation of the project is one of the factors that can make a project a succes or a failure. Make sure that you have the right team and the right project board (steering committee).
The project usually consists of a Project Board (steering committee) and a Project Management Team (PMT). The steering committee consists of at least 1 person, although at least two people to recommend. The Steering Committee contains the following distinct roles:
- The Business Executive is the sponsor of the project and the owner of the business case. In general, this is the line manager of the department where the change takes place, but if the project is about for example replacing obsolete hardware it can also be the line manager of the IT department.
- The Senior User represents the users who will have to work with the outcome of the project. He is also responsible for providing users who can be interviewed in order to establish functional specifications, and is also responsible for providing to users to perform, for example, acceptance tests.
- The Senior Supplier is responsible for providing the necessary resources for the project. He is responsible for the allocation of the resources in the project, the availability of a project environment and any necessary hardware and software.
The project leader is not part of the Project Board. The Project Board takes decisions about releasing the budget for the next phase of the project on the basis of the updated Business Case. They also set out what the stage boundaries are in terms of turnaround time and investment for the next phase.
The Project Board will therefore meet at the end of a phase (End Stage Report), but also when an Exception Report is submitted by the project manager: Management By Exception.
The questions to be answered in the organisation health check are:
- Is there a Project Board?
- Are any limits to the authority of the Project Board documented?
- Is it clear to whom the Project Board reports?
- Which member of the Project Board reports to senior management?
- Does the Senior User adequately represent all user areas?
- Are PB members contributing fully to all Mid Stage Assessments and End Stage Assessments?
- Are PB members carrying out their other project duties?
- Is there a Project Manager (PM)?
- Have assurance roles been agreed?
- Has any role for Project Support been clarified?
- Does each person have a job description?
- Has each person agreed/signed their job description?
- Was the organisation agreed by the end of SU?
- Is the documented version of the organisation correct?
- Is the role of the Supplier(s) clearly defined?
- Have any changes to the management team been recorded?
- Has the Project Board received training for its roles?
- Is the team manager role used effectively?
- Are job descriptions agreed with any late appointments?
Interested in performing the organisation healt check? Click here!
Written by admin on June 10th, 2008 with 1 comment.
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The second process: Initiating a Project. Sometimes or most of the times this proces is combined with the proces Starting Up a project. This process is mandatory in any PRINCE2 project and aims to build a good foundation for the project (at first thought).
In the initiation stage, the intended results, plans, tasks and responsibilities are laid down, and combined they are the solid base for the project. The main product of this phase is the Project Initiation Document (PID).
This process builds on the work of the Start Up (SU) activity and the project brief is augmented to form a Business Case. The approach taken to ensure quality on the project is agreed together with the overall approach to controlling the project itself (project controls). Project files are also created as is an overall plan for the project. A plan for the next stage of the project is also created. The resultant information can be put before the project board for them to authorize the project itself.
Source: http://en.wikipedia.org/wiki/PRINCE2 an http://nl.wikipedia.org/wiki/prince2 (translated)
Project Initiation Questions
- Was the Initiation Stage formally authorised?
- Were the ‘Authorising Initiation’ agenda items covered?
- Is there a Project Initiation Document (PID)?
- Is the PID produced to PRINCE 2 standards?
- Are the Project objectives stated?
- Have project constraints been identified?
- Is project tolerance defined?
- Are any project interdependencies stated?
- Is the Project scope stated?
- Are reporting procedures, contents and frequency defined?
- Is there a Communication Plan covering both inward and outward communication needs?
- Does the PID contain the Project Plan?
- Is there a Business Case in PID?
- Are the reasons for the project given?
- Is there an Investment Appraisal or Cost/Benefit Analysis?
- Was the PID Quality Reviewed?
- Did the Project Board formally approve the PID?
- Was the Project Board committed to the process?
- Was Initiation done before work on specialist products began?
- Was there an Initiation End Stage Assessment (DP2 Authorising a Project)?
- Was the next Stage Plan presented at the Initiation End Stage Assessment?
- Were issues affecting the PID managed effectively?
- Was formal approval to proceed to next stage given?
Interested in doing the initiation health check? Click Here!
Written by admin on June 6th, 2008 with no comments.
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http://www.healthcheck-online.com contains various Prince2 health checks. The biggest of them all is the complete Prince2 health check with 202 questions. In this article you can find the description of the Start Up health check. The Start Up health check is part of the complete Prince2 health check and contains 8 questions.
Starting Up a Project …
… is the stage where the project is being prepared. In this proces you’ll examine whether it makes sense to start a project.
In practice this is a short, sharp stage, where the project manager cooperates intensively with corporate management of the business executive (if appointed).
Starting Up has as trigger a given project mandate. The result of this stage is a project brief.
In this process the project team is appointed and a project brief (describing, in outline, what the project is attempting to achieve and the business justification for doing so) is prepared. In addition the overall approach to be taken is decided and the next stage of the project is planned. Once this work is done, the project board is asked to authorize the next stage, that of initiating the project.
In the online Start Up health check you will find the following questions (Appendix D of OGC’s Prince2 manual (page 385 of the 2002 edition)):
Start-up questions
- Was there a Project Mandate?
- Was the Project Board designed/appointed before initiation was authorised?
- Was a Project Brief produced?
- Is the Project Brief to PRINCE2 standards?
- Are quality expectations set?
- Has the Project Approach been defined?
- Was an initiation Stage Plan produced?
- Was the initiation Stage Plan approved?
- Was the Risk Log created?
Written by admin on June 3rd, 2008 with no comments.
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http://www.healthcheck-online.com contains various Prince2 health checks. The biggest of them all is the complete Prince2 health check with 202 questions. In this article you can find the description of this health check and the way I use them to check current (or closed) projects.
First of all a small description of Prince2.
PRINCE2 is applicable to all types of projects, and has a great flexibility. Aspects of the method that do not apply to (or are not useful for) a particular project can be skipped.
PRINCE2 has the following fundamental principles of good project management: A project is a finite process with a clear beginning and end. Projects must always be controlled in order to be successful.
The main features of PRINCE2 are:
- Business Case: Business justification of the project (which benefits contributes the project for the organization, how does the project contribute to the corporate goal).
- Product Based Planning: A planning based on the products that should delivered.
Organisation: Defined organizational structure for the project (project manager, business executive, project board, etc.).
- Stages: controlable and checkable project stages.
- Management by Exception: The project board comes together only when strictly necessary.
The Prince2 method consists of 8 processes, 8 components and 3 techniques. The premise of this method is that the decision takers (project board) only meet if the project is beyond the preset limits.
This complete online Prince2 Health Check contains all checks as described in Appendix D of the Prince2 manual.
The complete health check is used by me if a project is reaching the end or is closed already. Issues from the health check are used as a check list for the project end report or the lessons learned report. They help my organisation to improve the project management proces.
I try to prevent using this complete health check bacause it is a lengthy check lists and the lessons are learned at the end of the project. Ofcourse we try to improve during the project at f.e. the startup or intiation stage.
Allthough I created the website http://www.healthcheck-online.com I use (or used) an excel spreadsheet for each project. I use the comply or explain principle which means that is an question was answered with yes no further explanition from the project manager was needed. If the answer was no the project manager had to explain why not.
Answerring the question was done in an interview perform by the project secretary. If a project manager answered that the project had a risk log the project secretary then could ask the project manager where he could find this risk log.
In this way the project administration was also checked and the filing of the project documents could also be checked. It also caused or created a better co-operation and communication between the project management office and the project manager.
If you want to use the complete prince2 health check, click here. (If you want the excel spreadsheet then send me a message).
Written by admin on May 30th, 2008 with 2 comments.
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For many years I’ve been using appendix D in the Prince2 bible. In this appendix D of the OGC’s Prince2 (Managing Sucessful Projects) there is a wonderful health check which I have used for years to check the state of my projects. As programme manager I have used it to check my project managers and help them perform better.
Every time I switched jobs I was surprised that I was the only one who had an automated Prince2 checklist. With this website I found an easy way to share my automated checklist with the world.
To use the Online Prince2 health check select the desired check from the submenu. Fill in your name and email. Select the ’send me a copy’ box, to receive the results by mail.
I must warn you if you want to perform the whole Prince2 HealthCheck. It has 202 questions. I can advise you to start with a partial check. Like the ’start up’ health check.
Written by admin on May 7th, 2008 with no comments.
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Today I opend this Prince2 project management weblog. The weblog comes together with the free online Prince2 Healthcheck at http://www.healthcheck-online.com.
In this weblog you will find articles that are interesting for project managers or other Prince2 addicts.
What is HealthCheck-Online about?
HealthCheck-Online offers the possibility to review your Prince2 projects and ITIL processes using an automated checklist.
HealthCheck-Online currently offers checklists in the following categories for you:
- Prince2
- ITIL (under construction)
The basics of the checklist are the same:
- Fill in your name and email address;
- Answer the multiple choice questions
- Result of the check is presented,
and if you indicated that you want the results received by mail: results are send by email.
Perform a Prince2 or ITIL health check now (clik on the healthcheck-onlinelogo) and leave a message.
Recently opened: the HealthCheck-Online Facebook Group.
Have fun!
Written by admin on May 7th, 2008 with no comments.
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