PRINCE2: The Missing Chapter, part 1

The PRINCE2 handbook describes Starting up a Project as:

…a pre-project process, designed to ensure that the prerequisites for initiating the project are in place. The process expects the existence of a project mandate…

Yet, there’s no description of the process to propose and choose potential projects. Consequently, an organisation can spend valuable resources and time starting up a project when the reason for the project and the benefits it brings are largely unknown.

PRINCE2 helps us control change but it doesn’t direct us to use business planning and strategy to drive decision making. What PRINCE2 needs is a new chapter: Proposing a Project.

Idea Generation

Where do ideas come from? Typically, they should result directly from business strategies and service plans. However, this is not always the case as, for example, opportunities may be identified as a result of innovation or operational experience. Modern organisations encourage creativity and innovation and invite customers and employees to come up with new ideas to improve services and processes. Consequently, it is crucial that the organisation’s resources and budgets are directed appropriately.

Successful business change needs two things:

• Clear strategy. That is, strong links between strategy and service plans, and strong prioritisation and decision making.
• A rational way to manage change. Or in other words, a project process framework.

If these aren’t present projects either fail, are terminated, never start, or overrun. Whilst PRINCE2 provides us with a way to manage a project it doesn’t help us decide whether a project is worth doing or not. So how do we know if an idea is a good one? Well, it’s best to find out before you start up a project!

Proposing a Project (PP)

Collect ideas and needs →

                         ← Check previous proposals

Prepare draft proposal →

                         ←Initial investigation

Prepare initial business case and outline project plan →

                         ← Review and finalise business case

Fundamental principles

• Projects succeed when there is a clear link between strategy and business plans, theres is a strong emphasis on prioritisation and decision making, and those decisions are aligned to strategy. What’s more, projects should be aligned to each other. Otherwise, it’s likely that the wrong projects are started.
• The proposal describes the rationale for a project, i.e. it defines the business need. No project should start without an authorised proposal (that is, the Mandate.) Indeed if it’s too much trouble to document the proposal then it’s highly likely the project isn’t worthwhile doing.
• During the proposal stage it’s a good idea to identify the project executive and project manager. The executive is responsible for writing up the proposal and is most likely a senior manager that will benefit from the proposed project.
• A completed proposal should be registered with corporate programme management and submitted for gate review, i.e. to decide if the project should proceed.
• There is no requirement for a stage plan when developing the proposal. However, one is necessary if the idea or need proceeds to the initial investigation stage. The purpose of the initial investigation is to have a quick look at the proposal and evaluate it against current business strategy and service plans. It also determines if the project is viable.
• The process delivers the project mandate, initial business case, and outline project plan to the first PRINCE2 process (SU.)

The next part of this article will set the context for Proposing a Project and describe the process in more detail.