Sticking to Business; the Importance of the PRINCE2 Business Case

www.apmg-international.com

APMG-International Webinar

Sticking to Business; the Importance of the PRINCE2 Business Case

Tuesday 15 October 2013 / 11:00 EDT (New York, US)

Presented by Susan Weese, Rhyming Planet Inc.

www.APMG-International.com

Agenda

• Welcome & introduction– Mark Constable, International Marketing Co-ordinator

APMG-International

• Sticking to Business; the Importance of the PRINCE2 Business Case– Susan Weese (Rhyming Planet Inc.)

• Q&A• More Information• Close

Your presenter…

Susan Weese, Rhyming Planet Inc.

Susan is a management consultant specializing in project management and requirements development for complex information technology projects. Susan founded Colorado-based Rhyming Planet, Inc. in 2000 to motivate, lead, and enable technical and business professionals to accomplish their program and project goals. Susan is also faculty member at Colorado State University, delivering courses on project management and the underlying competencies that make good managers into great managers.

Let’s take a moment and conduct a quick poll to get a read on everyone’s knowledge of PRINCE2. This will help Susan tailor the presentation and her comments to meet your needs. Many thanks!

PRINCE2,

anyone?

What is PRINCE2?

PRINCE2® (PRojects IN Controlled Environments) is a process-based approach for project management providing an easily tailored and scalable method for management of all types of projects. The method is the de-facto standard for project management in the UK and is practiced worldwide.

PRINCE2® is a Registered Trade Mark of AXELOS Limited.

Structure of PRINCE2

Four integrated elements:

1.Principles

2.Themes

3.Processes

4.Project environment

PRINCE2®: Sticking to Business

Continued business justification

Has This Ever Happened to You?

CHALLENGE: keeping our projects and their outcomes focused on the business when there is so much going on.

PRINCE2 defines a project as "a temporary organization that is created for the purpose of

delivering one or more business products according to an agreed Business Case."

You can’t justify your project if you don’t define and agree upon the business benefits that the project and its outcomes bring to the organization.

The PRINCE2 Business Case

• Documents the business justification for your project

• Provides a living checkpoint to determine if your project is staying aligned to its business objectives and benefits

PRINCE2 projects have a controlled start, controlled middle, and controlled end.

BUSINESS CASE


Controlled Start: The Business Case

• Iteratively developed and approved in more and more detail

• Justifies the initial investment in your project

• Authorizes more detailed planning and definition for your project

SCOPESCOPE

COSTCOSTTIMETIMEDuring the project’s initiation stage, the detailed Business Case is derived from several sources of project information.

In order to be both useful and relevant, a Business Case should contain the following minimum set of information.

Controlled Start Tells Us …

• Is this a viable and a worthwhile project? – If so, then let’s define things in more

detail.

• Is this project worth doing now that we have more specific details? – If so, let’s get to work.

Controlled Start: Review Points

• At the end of your pre-project activities to authorize the initiation stage

• At the end of the initiation stage to authorize the project after detailed definition and planning is complete

BUSINESS CASE

Now, let’s take a look at the importance of the Business Case during a project’s controlled middle.


Controlled Middle: The Business Case

• Provides a checkpoint for determining if your project is staying aligned to its business objectives and benefits

• Drives all decision making in the project


Controlled Middle:Ad Hoc Review Points

• As part of any impact assessment for any new issues or risks

• When you are in exception and need to – Re-plan from the point of exception– Authorize the revised stage – Reauthorize continuation of the

project


Controlled Middle:Stage End Review Points

• Determine if updates are required to cost, time, risks or benefits

• Report benefits realized during this stage of the project (if any)

• Confirm benefits will still be realized by the project

• Authorize the next stage • Approve continuation of project

Controlled Middle:Impacts to Project Viability

• Cost overruns• Time overruns• Changes to specifications • Changes to project scope• Quality problems• Changes to the business environment

Controlled Middle: The “Terrible Triplets”

BUSINESS CASE

Now, let’s take a look at the importance of the Business Case during a project’s controlled end.


Controlled End: The Business Case

After project closure, the Business Case is confirmed based upon the operational benefits that accrue from using the project’s product.


There are two ways to bring a PRINCE2 project to a controlled end: premature termination or successful

completion.


Controlled End: Review Points

• Determine if updates are required to cost, time, risks or benefits

• Assess project performance against project requirements

• Determine likelihood that outcomes will provide expected benefits

• Measure benefits realization in post-project benefits reviews

The PRINCE2 Business Case driving decision-making across your project's lifecycle and ensures the project stays aligned with the business.

PRINCE2 Business

Case

More Information

• APMG-International:– www.APMG-International.com

• PRINCE2 Information & Resources:– www.prince-officialsite.com

• Rhyming Planet:– www.rhymingplanet.com – Email Susan at [email protected]

http://www.linkedin.com/company/apmg-international @APMG_Inter

Thank you for attending!