Lesson 04: When to use PRINCE2
- 00:05 - In this lesson, we’re going to look at when we can use PRINCE2
- 00:10 - Now PRINCE2 is useful for some things, but it’s not useful for other things
- 00:16 - So, now you’re thinking, well, what are those things?
- 00:20 - It’s useful when you have a project
- 00:23 - But not everything is a project
- 00:25 - So, for example, if you try to use PRINCE2 for day-to-day operations, which we call business as usual
- 00:31 - Or for programs and so on, then you will fail
- 00:35 - So, what’s a project?
- 00:37 - Well, PRINCE2 has its own definition for a project and I’m going to take you through that
- 00:42 - So, let me take you through it and then I will explain some of the wording in there because I will need to do that
- 00:48 - So, what’s a project?
- 00:50 - A project is a temporary organization that is created for the purpose of delivering
- 00:55 - One or more business products according to an agreed business case
- 01:01 - Now, let me go through some of those words to make it easier for you
- 01:04 - The first one was Temporary, so what do we mean by that?
- 01:08 - Well, each project has a definite start and end, well, it should have, and that makes it temporary
- 01:15 - So, for example, we are building a building and it’s finished, and then we stop work
- 01:21 - So, we had a start and an end date, that makes it temporary
- 01:24 - Now, if we look at manufacturing, well, that just continues until it doesn’t make sense anymore
- 01:31 - So, we don’t see that as temporary
- 01:34 - We don’t have a definite end date in the same way we do for a building, for finishing a building project
- 01:41 - Now what happens at the end of a project?
- 01:44 - Well, people go back to their normal work or they go on to get a new project
- 01:51 - So, that’s it for temporary
- 01:53 - Organization. What do we mean by that?
- 01:57 - Well, the word organization refers to the project team
- 02:00 - So, the people involved in the project and how they’re related to each other
- 02:05 - Next one is the product, our business product
- 02:09 - So, this is used to refer to the output created by the project, so something tangible
- 02:15 - For example, the building, that’s tangible
- 02:18 - Or the capability to provide a service such as a production line
- 02:24 - Or the result of a study that was created, like a report, created at the end of scientific research
- 02:34 - Then business case
- 02:36 - Business case, that’s a concept actually and it refers to the justification of the project
- 02:42 - In other words, why are we going to do the project?
- 02:46 - Then agreed business case
- 02:49 - Well, usually there are different parties involved in the project
- 02:52 - And they need to have a common agreed understanding of why the project is being done
- 02:58 - Now let me read the definition again and it will make a lot more sense
- 03:03 - So, what’s a project according to PRINCE2?
- 03:06 - Well, a project is a temporary organization
- 03:09 - That is created for the purpose of delivering one or more business products according to an agreed business case
- 03:18 - Good. I think you’ve got that
- 03:22 - Another question. How can we recognize projects?
- 03:27 - Well, actually we can
- 03:29 - Projects have a number of characteristics and that helps us to recognize them
- 03:34 - So, I’m going to bring you through five main characteristics that it has
- 03:37 - And the first one is Change
- 03:40 - Projects are a way to introduce change
- 03:43 - So, for example, we create something like a new building
- 03:47 - Or we change something that already exists
- 03:50 - For example, we add a new feature to a sales application
- 03:54 - Both of these give changes to the world, they make the world a little bit different
- 04:00 - And projects are a way of introducing important structural changes
- 04:06 - Then we have Temporary. We’ve discussed temporary already
- 04:09 - But projects have a definite start and a definite end date. That’s the idea behind temporary
- 04:15 - Then Cross-Functional
- 04:19 - A project involves people with different skills
- 04:22 - From different areas of the organization or even from different organizations
- 04:27 - That come together and work together during the project
- 04:30 - And then after the project, they go back to their normal jobs
- 04:33 - So, that’s what we mean by cross-functional
- 04:36 - Next is Unique
- 04:39 - Let’s say we have to create two hospitals
- 04:43 - And at first, these hospitals look quite similar
- 04:47 - But actually these can be very different projects or are different projects
- 04:52 - Because we have to take the following into account
- 04:54 - For example, the people working on the project, the local laws
- 04:59 - The difference in climate at the time when you’re building the project, the difference in procurement
- 05:04 - So, when you compare them actually, you see that these projects are very unique
- 05:09 - Now, on the other hand, let’s say we have a factory that produces pens
- 05:15 - And each pen is created with the exact same process
- 05:20 - Each pen can be a little bit unique, but these differences are not so significant
- 05:26 - So, in the hospital example, uniqueness is the primary driver of how we actually should work
- 05:33 - Whereas in the second example, the pen example, uniformity is the goal and the driver
- 05:40 - And the last one is Uncertainty
- 05:43 - So, similar to uniqueness, if we look closely enough
- 05:47 - Everything in the world has some level of uncertainty
- 05:50 - However, some things are a lot more uncertain
- 05:55 - And projects are actually highly uncertain but operations, not so
- 06:01 - In operations the level of uncertainty is much lower than in projects
- 06:06 - And therefore the main focus of the people involved actually is just focused on the management of the operations
- 06:13 - And to have optimization while they’re doing that
- 06:16 - In projects on the other hand, we can’t do that because of the higher levels of uncertainty
- 06:23 - So, instead our main focus is on dealing with uncertainties
- 06:27 - So being prepared for all types of challenges, being proactive, being flexible
- 06:34 - Accepting unforeseen changes and so on
- 06:39 - So, that gives you an overview there
- 06:42 - Now, why do we need project management?
- 06:47 - Well, an organisation’s resources are limited
- 06:51 - We can’t spend lots of money on every project that happens and we cannot spend lots of time
- 06:56 - We must optimize our limited resources to get the best result from the project
- 07:02 - So, in other words, increase the chances of achieving the project objectives
- 07:09 - And this requires actually good preparation, good planning, monitoring, controlling, facilitation, problem solving and good coffee
- 07:19 - And all of these together is what we refer to or what we call as Project Management
- 07:25 - So, project management, see it as a discipline that helps us to be more successful in projects
- 07:32 - Now unlike all other disciplines, we must not try to reinvent the wheel, but to learn from others
- 07:40 - Now let’s look at some of the benefits of using PRINCE2
- 07:44 - Remember, these are benefits that come from within PRINCE2
- 07:48 - So, PRINCE2 is a well-structured project management method
- 07:52 - And it has many advantages and some disadvantages like everything else
- 07:56 - Now according to PRINCE2, these are the advantages
- 08:01 - The first one is that it’s proven
- 08:03 - Well, it’s been around for about 35 years and lots of people have certifications in PRINCE2
- 08:09 - It’s universal, so it can be used for any type of project and any size of project in any industry
- 08:18 - It’s flexible. It can be adjusted to the needs of the organization
- 08:23 - It’s got a common language and concepts
- 08:26 - And that makes sure that there is much less misunderstanding when people talk to each other about project concepts
- 08:35 - Outcome focused. It’s really focused on the principles and purposes rather than just creating lots of documents
- 08:44 - Increased organizational maturity
- 08:48 - That’s really about lessons and about improving the way you’re doing project management all the time
- 08:53 - And building up your own maturity of the way that you’re actually working
- 08:57 - And the last one it mentions is being part of a suite of methods. So, what does that mean?
- 09:03 - Well, PRINCE2 is for managing projects, but in order for an organization to succeed
- 09:08 - Well, you need to have proper program and portfolio management
- 09:13 - So, these … such methods are also provided by the same family, by PeopleCert
- 09:19 - And they can be used by the organization as well
- 09:23 - So, as you can see, this benefit section is a good marketing section for PRINCE2
- 09:28 - And that’s it. We’ve covered a lot of concepts here, but that’s it for why can we use PRINCE2
Quiz
- Can PRINCE2 be used for operations (business as usual)?
- What does the word temporary mean in the definition of a project?
- What does the term project organization refer to?
- Are projects a way to introduce change, and why?
- A property builder must build 12 similar houses in different parts of the country in the next two years. Can each house project be considered a unique project, and why?
- Why do projects introduce uncertainty?
- Why do we need project management?
- Can PRINCE2 work with any type of project regardless of size, industry, etc.
- PRINCE2 cannot be used for operations. It is helpful for projects.
- Each project has a definite start and end, so it is temporary.
- The word organization refers to the project team, the people in the project, and how they relate to each other.
- Projects are a way to introduce change. A project creates something new, e.g., a new building or application. These give changes to the world.
- Projects are considered unique as each project will differ: location, end client, planning permissions, material prices, weather, team members, etc.…
- An exact project has not been done before; there are some unknowns, and this brings uncertainty.
- Our resources are limited (time, costs, people), and we must optimize our limited resources to get the best result from the project. This requires preparation, planning, monitoring, controlling, facilitation, problem-solving, etc.
- PRINCE2 claims to be used with any type of project, no matter its size, industry, etc., but PRINCE2 is not used much as it is hard to tailor.
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