THE PROJECT MANAGEMENT LECTURE: Introduction to PRINCE2 Ian White, Trent ASSIST

1. Association for Information Management & Technology Staff in Health THE PROJECTMANAGEMENT LECTURE:Introduction to PRINCE2Ian White, Trent ASSIST ASSIST

2. Introduction to PRINCE2Speakers Profile • Ian White – Assistant Informatics Director, Sheffield Teaching Hospitals • Over 18 years experience, almost all of which involved project / programme management • Qualified in PRINCE2 • Vice Chair of ASSIST National Council, member of UKCHIP Council, member of NHS Confederations Information Policy Advisory Committee

3. Introduction to PRINCE2Introduction • PRINCE2 is a project management methodology adopted by Government for all IT projects • Created in early 1990’s from PROMPT • ASSIST Lecture, informal overview and discussion on key aspects of this methodology • Questions as we go ?

4. Introduction to PRINCE2PROJECT DEFINITION • A Project is a finite process with a definite start and end • Prince projects: • focus on business justification • defined organisational structure • product based planning approach • divides project into manageable, controllable stages • flexible to be able to be applied to the scale of the project / investment

5. Introduction to PRINCE2PROJECT DEFINITION Lifetime of the Project Stage 5 Stage 1 Stage 2 Stage 3 Stage 4 Stage 6 Stage 7 Stage 8 Clear Start Clear End PBM2 PBM3 PBM4 PBM5 PBM7 PBM9 PBM1 PBM6 PBM8 Note: PBM = Project Board Meeting

6. Introduction to PRINCE2OVERVIEW OF PRINCE2 Processes PRINCE is a process-based approach to project management. The processes define the management activities to be carried out during the project. Eight components influence & support the eight project management processes Organisation Configuration Mgt Controls Plans Directing a Project Start-up Stage Mgt Closure Initiation Stage Ctrl Quality Planning Product Del Stages Mgt of Risk Change Control Components

7. Introduction to PRINCE2Components: Controls • Control is implemented to ensure: • required products being produced • progress being made, within resource constraints • remains viable against the business case • Project applies ‘management by exception’ • The major controls for the Project are: • Project Initiation • End Stage (and Mid-Stage)Assessment • Highlight Reports • Exception Reports

8. Introduction to PRINCE2Components: Organisation • Effective organisational structure essential • Based on ‘supplier’ and ‘customer’ concept • Fundamental principle of four layers: • direction of Project • day-to-day management • team management • product creation • Project Board has ultimate responsibility • Membership: Exec / Senior User / Senior Supplier

9. Introduction to PRINCE2Components: Configuration Mgt. • Configuration Management can be thought of as product control with its purpose to identify, track and protect Project’s products • Not optional - only formality is the question • Consists of five basic functions: • planning • identification • control • status accounting • verification

10. Introduction to PRINCE2Components: Plans • More than a bar chart, incudes: • products to be produced • activities needed to create these products • activities needed to validate quality • resource estimates • dependency between activities • Require approval of Project Board and ownership of Project Team • Different levels: (Project, Stage, Team, Exception) • Backbone of the Project

11. Introduction to PRINCE2Components: Quality • Quality defined in ISO8402 as: ‘ Totality of characteristics of an entity which bear on its ability to satisfy stated and implied needs.’ • Alternative definition: ‘fit for purpose’ • Project approach: • Quality System: from both customer / supplier • Quality Assurance: setting up of project quality system • Quality Planning: part of project planningprocess • Quality Control: product QA

12. Introduction to PRINCE2Components: Change Control • Change in a project is highly likely • In PRINCE, all project changes are managed as a formal Project Issue • Control of change means assessment of: • impact of potential change • importance • cost • Approved changes must be reflected in project documentation

13. Introduction to PRINCE2Components: Management of Risk • PRINCE defines risk as: ‘The chance of exposure to the adverse consequences of future events.’ • Two types of risk: business and project. • Standard and specific risks. • Risk analysis and risk management: interrelated and undertaken independently and iteratively. • Key role of Project Manager to manage risk.

14. Introduction to PRINCE2Components: Stages • Collection of activities and products whose delivery is managed as single unit • Stages are management focused not technical delivery • ‘Bite-sized chunks’ • Use is mandatory, number is flexible • Enable: • review and decision points • planning horizons • scalability

15. Introduction to PRINCE2Process 1: DIRECTING A PROJECT • Role of Project Board - senior staff within Project, who: • authorise the project • authorise initiation • authorise stage / exception plans and progress • give ad hoc direction • confirm project closure • Project Board retain ultimate responsibility, whilst delegating day to day responsibility to the Project Manager

16. Introduction to PRINCE2Process 2: STARTING UP A PROJECT PROJECT BRIEF • What- Objective • Why- Case for Project (inc. benefits) • Who- Organisation • When / How- Project Timetable (inc. risks) PROJECT CREATION • Design & Appoint Project Board & Team • Document Brief • Set-up Risk Log • Define Project Approach / Refine Bus. Case • Plan Initiation Bright idea PROJECT INITIATION MANDATE (Business Case) Target Predecessor Work / Project … an iterative process

17. Introduction to PRINCE2Process 3: INITIATING A PROJECT Refine the Business Case & Risks Project Controls Produce the PID DIRECTING A PROJECT PROJECT START-UP Project Plan Project Files Quality Plan … another iterative process

18. Introduction to PRINCE2Process 4: PLANNING Activities & Dependencies Estimation Scheduling DIRECTING A PROJECT Completing the Plan Designing a Plan Products Definition Analysis of Risks … yet another iterative process

19. Introduction to PRINCE2Process 5: CONTROLLING A STAGE MANAGING PRODUCT DELIVERY Completed ‘Work Packages’ Authorising ‘Work Packages’ Assessing Progress DIRECTING A PROJECT Reporting Highlights & Issue Escalation Review Stage Status Exception Reporting Capturing & Examining Issues Taking Corrective Action … yet another iterative process

20. Introduction to PRINCE2Process 6: MANAGING PRODUCT DELIVERY Accepting a ‘Work Package’ Executing a ‘Work Package’ Delivering a ‘Work Packages’ STAGE CONTROL Receiving Completed ‘Work Packages’ Authorising ‘Work Packages’ Assessing Progress

21. Introduction to PRINCE2Process 7: MANAGING STAGEBOUNDARIES CONTROLLING A STAGE Producing an Exception Plan DIRECTING A PROJECT / CLOSING A PROJECT Planning a Stage Updating the PID Reporting Stage End Updating the Plan Updating the Business Case Updating the Risk Log

22. Introduction to PRINCE2Process 8: CLOSING A PROJECT archives De-commissioning a Project project closure notification and customer acceptance operational acceptance DIRECTING A PROJECT Confirm Project Closure Identifying Follow-on Actions follow-on action recommendations post-project review plan Project Evaluation Review lessons learnt report end project report

23. Introduction to PRINCE2SUMMARY • PRINCE is a structured project management methodology applicable to all types of projects • PRINCE comprises of eight components and eight processes to master • Further information: • www.ogc.gov.uk/prince (the official PRINCE website) • www.prince2.com (a comprehensive PRINCE website) • www.pug.mcmail.com (PRINCE User Group)

24. Introduction to PRINCE2 Questions ?

25. Next ASSIST Project Management Lecture: 17 June 2004 Project Feasibility Studies Alan Abbott, Project Manager, STH