4
Tailoring and adopting PRINCE2
This chapter covers:
•what you can and cannot tailor
•who is responsible for tailoring and documenting
•examples of different project environments
•tailoring and embedding PRINCE2 in an organization
4 Tailoring and adopting PRINCE2
Definition: Tailoring
Adapting a method or process to suit the situation in which it will be used.
The seventh PRINCE2 principle states that PRINCE2 should be tailored for a project’s particular circumstances (see section 3.7). The goal is to apply a level of project management that does not overburden the project management team but provides an appropriate level of governance and control, at an acceptable level of risk. Tailoring can be done in two ways:
•If an organization does not have its own project management method, tailoring will be done directly from this manual.
•If an organization has its own PRINCE2-based project management method, this will be tailored to suit the project.
Section 4.3 provides advice on tailoring the guidance given in this manual; this is also applicable for tailoring an organization’s PRINCE2-based project management method, bearing in mind that the organization may place limits on the extent of tailoring permitted or required.
Organizations adopt PRINCE2 by tailoring it to their needs, often creating their own PRINCE2-based method and then embedding its use within their working practices.
Definition: Embedding
The act of making something an integral part of a bigger whole. Embedding is what an organization needs to do to adopt PRINCE2 as its corporate project management method and encourage its widespread use.
Section 4.4 discusses adopting PRINCE2 for use within an organization, including what to consider when tailoring PRINCE2 at an organizational level and different approaches for embedding its widespread use. Chapter 21 deals with this topic in more detail.
4.3 Tailoring PRINCE2 to suit different projects
Key message
Tailoring can be applied to processes, themes, roles, management products and terminology.
Tailoring is concerned with the appropriate use of PRINCE2 on any given project, ensuring that there is the right amount of governance, planning and control, in accordance with PRINCE2’s principles. The following aspects of PRINCE2 may be tailored:
•Processes may be combined or adapted (e.g. by adding or combining activities).
•Themes can be applied using techniques that are appropriate to the project.
•Roles may be combined or split, provided that accountability is maintained and there are no conflicts of interest. See section 7.2.1.10 for restrictions.
•Management products may be combined or split into any number of documents or data sources. They will often take the form of formal documents, but can equally be slide decks, wall charts or data held on IT systems if more appropriate to the project and its environment.
•Terminology may be changed to suit other standards or policies, provided it is applied consistently.
Key message
Tailoring, as a PRINCE2 principle, is mandatory (as are all principles), so if the organization does not consider tailoring, it is not using PRINCE2.
PRINCE2’s principles should not be tailored as they are universal and always apply.
Effective tailoring requires skill, experience and judgement. There is no single ‘right’ tailoring solution for a project. People in organizations with a high level of project management capability or maturity (see section 2.6.5) are likely to find tailoring easier than those working in less mature organizations. They are also likely to take a different approach to tailoring, which reflects the higher level of skills and competencies in the organization.
Tailoring does not mean excluding any of PRINCE2’s processes or themes. PRINCE2 is a web of interlinking parts: themes are used in processes; techniques bring themes to life; individuals fulfil project roles and create management products. If the practitioner omits any part, project management may be weakened and hence the likelihood of project success decreased.
Each theme and process chapter in this manual contains guidance which may be used to help decide on the level of tailoring that is appropriate.
PRINCE2 provides product description outlines in Appendix A for those management products that fulfil a particular purpose, supporting the themes and processes. Tailoring allows these to be split or combined into as many documents or information sources as needed. Each product description includes quality criteria which have been designed to meet the needs of a wide variety of projects, but are unlikely to be appropriate for all projects; hence they need to be tailored to suit the project’s circumstances. Appendix A includes general tailoring advice in its introduction and each outline product description suggests a range of possible formats for each product.
A project manager may need to use specific product naming terminology (e.g. to reflect customer needs or practice within their own organization). Examples include:
•the use of PMI’s ‘project management plan’ instead of PRINCE2’s ‘PID’
•the use of ‘project closure report’ instead of ‘end project report’.
Care should be taken when changing management product names to ensure that they still reflect the intended PRINCE2 purpose.
Project lifecycles can comprise as many management stages as necessary to manage the risk associated with the project. PRINCE2 does not prescribe the names of any of the management stages nor the number required, except that the lifecycle must contain at least two (referred to as the initiation stage and a delivery stage in this manual). Section 9.3.1 provides more guidance on management stages.
Tip
•Ensure any tailoring of PRINCE2 adds value. One of the advantages of using PRINCE2 is that it comprises roles, terminology and processes that people become familiar with and so clarifies project governance and facilitates team working and cross-organization cooperation; too much tailoring may negate these advantages.
•When tailoring individual elements of PRINCE2, check the impact on any other elements to ensure they are all consistent.
4.3.2 Who is responsible and where is tailoring documented?
The project manager is responsible for identifying and documenting the level of tailoring for the project. Tailoring affects how a project is managed and so it is documented as part of the PID, which is reviewed by the appropriate stakeholders and approved by the project board. Both the project board and the project manager may be advised by project assurance, project support roles or a centre of excellence (if one exists).
Key message
Management products comprise information that supports decision-making. All parts of a product should add value, otherwise they should not be included in the product’s composition … but this decision should not be taken until the needs of the project are truly understood.
Conversely, if the circumstances of the project require additional information, this should be added to the management product’s composition.
Amend the quality criteria accordingly.
Team managers (see section 7.2.1.8) may suggest to the project manager any tailoring which would help them manage their work packages more effectively.
4.3.3 Tailoring is constrained and influenced by context
Figure 4.1 shows the environmental and project factors which constrain and influence how a project should be tailored.
The project processes and procedures should, when necessary, draw on the organization’s own internal policies, processes, methods, standards and practices.
Figure 4.1 Constraints and influences on tailoring a project
Tip
Create a glossary of terms if adopting some of the organization’s own terminology, providing commonly used alternatives, to help communication. Use the defined terms consistently in all documents and communications, whether written or verbal.
Tailoring may need to take into account standards, policies, laws or regulations from outside the organization, including those relating to health, safety, sustainability and environment. In some regulated industries, such as rail or aerospace, mandatory certification points may determine the most appropriate project lifecycle and management stages to use.
The nature of the project itself influences how PRINCE2 should be tailored. The competence of those working on the project (how familiar they are with project management practices) often drives the level of detailed guidance needed. Contracts with customers or suppliers need to be taken into account when considering tailoring. The specialist products also have an influence, as specialists usually have their own working practices (such as for agile delivery). The project manager’s job is to integrate these so that the project’s outputs and outcomes will be delivered and benefits realized.
The project’s immediate context is relevant; for example, if it is part of a programme or a portfolio, the higher-level manager may provide processes, procedures, techniques or approaches for the project manager to follow. For good governance, it is vital that the chain of accountability from any higher level (organization, portfolio or programme) to the project level is clear.
Key message
The tailoring guidance provided in this manual is not exhaustive, as the application of PRINCE2 is limitless. Guidance is provided to illustrate things to consider and some example tactics that can be applied. Such guidance should not be interpreted as the definitive approach to tailoring as it is not specific to a particular project. The practitioner should consider the pros and cons of the tailoring choices as they relate to their specific project circumstances and ensure that:
•tailoring complies with the PRINCE2 principles and any overriding corporate standards or policy
•tailoring does not increase the risk of failing to meet the project’s objectives
•the reasons for the tailoring choices are documented in the PID.
The perceived complexity or scale of a project is relative to the organization and context; a ‘small’ project in a large multinational enterprise is likely to dwarf a large project in a local company.
It is usually more helpful to think in terms of ‘simple’ projects, rather than ‘small’. A simple project is one that the organization perceives as straightforward and of low risk.
Simple projects must adhere to the seven PRINCE2 principles (see Chapter 3); however, the degree of formality for managing the project may be relaxed provided the resultant risk is acceptable.
Tailoring example for a simple, two-stage project
On a simple project, the project mandate comprised a short email outlining the business need and expectations together with costs and timescales for the initiation stage of the project. This was used to approve the start of the project; no project brief was produced. The project management team used the project mandate to produce a simple PID, which included:
•the justification for the project
•a basic project plan with several product descriptions
•the details of all the controls to be applied.
A daily log was used to record risks, issues, lessons and quality results.
Following approval of the PID there was just one more management stage. The project manager held regular checkpoints, with verbal reporting, which enabled the production of highlight reports to the project board.
At the end of that management stage (and hence the project), an end project report was produced which also included the information for a lessons report, follow-on action recommendations and a benefits management approach. No stage plans, work packages, team plans, end of stage reports or issue reports were needed, as they were incorporated in other products in sufficient detail.
4.3.4.2 Projects using an agile approach
Agile has a very strong focus on principles. The Agile Manifesto (2001) and most of the agile frameworks and methods all promote a set of principles in some form. PRINCE2 principles align with these principles and are complementary to the agile way of working. Some of the PRINCE2 principles are ‘very much agile’, such as continued business justification, learn from experience, focus on products, manage by stages, and manage by exception; the last being synonymous with giving people autonomy and empowerment.
PRINCE2 management stages can be aligned with a series of sprints or releases, introducing management control points to support a fail fast and learn fast environment. In situations that have a higher risk or higher uncertainty, the management stages can be of a much shorter duration.
What do ‘fail fast’ and ‘learn fast’ mean?
Using timeboxes/sprints in agile delivery enables fast detection of possible failure of products. The fail fast effect reduces waste of resources and is a useful learning experience.
PRINCE2’s manage by exception principle should be implemented correctly and should be at the heart of empowering people to self-organize and stay in control. Tolerances are set around quality criteria so that everything that is delivered must be delivered to at least the minimum acceptable level of quality.
Product descriptions (sometimes written as epics or user stories), quality criteria and quality tolerances can be prioritized and decomposed to provide flexibility in what is being delivered. This makes it easier to stay in control and focus on the delivery of value (or benefit) in a timely manner without compromising quality.
Tip
In a PRINCE2 project, if all or part of the project’s specialist products are delivered using agile, make sure the project manager understands the agile way of working and that the agile team understand the project manager’s need for reliable information.
For further information about the relationship between the project manager and an agile delivery team, see PRINCE2 Agile (AXELOS, 2015).
4.3.4.3 Projects involving a commercial customer and supplier relationship
PRINCE2 is based on there being a customer/supplier environment. It assumes that there will be a customer who will specify the desired result and (usually) pay for the project, and a supplier who will provide the resources and skills to deliver that result. As discussed in section 2.5.4, additional considerations apply if the relationship between the customer and the supplier(s) is a commercial one. The contract between the parties acts as a constraint on a project manager’s or team manager’s degree of freedom when managing the project or work package. For this reason, it is good practice to ensure that contracts reflect and promote good working relations rather than inhibit them and that any tailoring to PRINCE2 respects the parties’ contract obligations.
Taking a project from a supplier’s perspective, the project lifecycle should be defined to take into account pre-contract activities, such as qualification, designing and costing the solution, bidding and negotiation. It may also take into account activities at the end of the project, such as warranty and maintenance periods.
Tip
The PID and contract fulfil different purposes. One aspect of a contract is to describe who is liable if either party fails to fulfil its contractual obligations. The content of the PID should focus on practical management arrangements to make sure that each party can fulfil its obligations: the PID must reflect the contract conditions. Try to avoid including the PID as part of the contract documentation, as it may limit the project manager’s ability to adapt it if the PID has to go through a formal contractual review for each change.
4.3.4.4 Projects involving multiple owning organizations
The guidance for tailoring PRINCE2 in a multi-owned project is similar to that for the commercial customer/supplier context, but in multi-organization projects tailoring can become extremely complicated. Project boards may have more members than can practically make effective decisions. If the parties have equal authority, a consensus has to be built on each decision, which can be time-consuming. As a result, project managers may begin to take decisions that are beyond their remit, in order to maintain momentum. For complicated situations, consideration should be given to adopting programme management as a more effective means of governance.
There is guidance on programme governance in Managing Successful Programmes (MSP) (Cabinet Office, 2011).
Tip
When the project is being sponsored by a number of separate organizations, ensure governance is unambiguously defined, especially with respect to who can make which decisions, how risk is allocated and what happens in the case of non-performance.
4.3.4.5 Projects within programmes
If the project is part of a programme, people undertaking programme management roles may also define, influence or constrain tailoring. As a project within a programme may have different contexts, including any combination of simple project, agile and commercial, all the guidance for those situations may apply to the project.
Tip
If a project is part of a programme, take care to ensure that the management products and other documentation are clearly labelled to identify the project, so that readers are not confused as to whether it is a programme-level document or which project within the programme it relates to.
4.4 Adopting PRINCE2 in an organizational environment
4.4.1 Effective use of PRINCE2 in an organization
Few organizations undertake only one project; in large organizations there can be hundreds or even thousands of projects running concurrently. Requiring each project manager to work directly from PRINCE2 to create a management approach and controls for each project is wasteful, not only in terms of the time needed to tailor PRINCE2, but also in terms of senior management, stakeholders and the project management teams having to learn new approaches for each project they work on.
Furthermore:
•the lessons from one project cannot easily be exploited on other projects; teams will continually invent different ways of doing the same thing
•building common information support systems is problematic if there is no common approach
•training is likely to be generic, rather than focused on particular challenges, and hence less effective.
For this reason, many organizations find it more effective and efficient to develop their own project management method, based on PRINCE2 and tailored to suit their needs and circumstances.
The increase in business performance through the effective use of project management methods across organizations has been demonstrated through the use of maturity assessments: the higher the maturity an organization attains, the more effective it is in business terms (see sections 2.6.5 and 21.1.1.3).
Adopting PRINCE2 in an organization involves two key activities:
•tailoring PRINCE2 to create the organization’s own project management method
•embedding the tailored method by ensuring that people in the organization understand and use it appropriately.
These activities are introduced in the following sections and covered in more detail in Chapter 21.
4.4.2 Tailoring PRINCE2 to create an organization’s project management method
An organization’s project management method should form a seamless part of the organization’s overall governance and management system. Section 4.3 describes how PRINCE2 can be tailored for an individual project; the same concepts are applicable when creating an organization’s project management method based on PRINCE2. In addition, rather than consider the circumstances of just an individual project, all the projects that the organization typically undertakes need to be considered, together with any other organizational, or externally adopted, policies, processes and practices (see Figure 4.2).
Tip
The way a method is drafted influences the extent to which it will be used. A method which has a consistent look and feel with a logical structure is likely to promote more confidence in its users than one which is documented in a variety of formats, styles and media. Make sure the content is consistent, especially the terminology, whether in information systems, documents, posters, videos, presentations or web sites. The greater the consistency between the parts, the easier it will be for people to understand.
Tailoring PRINCE2 to create such a method would be undertaken by the owner of the project management method. A project manager would normally only have to deal with those aspects which are unique to the project being managed, as shown on the right of Figure 4.2.
For information about the role of a centre of excellence in managing an organization’s methods, see Portfolio, Programme and Project Offices (Cabinet Office, 2013).
4.4.3 Embedding PRINCE2 in an organization
Encouraging the widespread use of PRINCE2 in an organization involves more than publishing a project management method. The method has to be consistently deployed, effectively introduced and used in practice. This requires changing the way the people in an organization work so that the outcome (in this case, widespread use of the project management method) can be realized. Such change cannot usually be accomplished in a single project, and managing the development and introduction of a project management method is often better undertaken as a programme.
The management of change is a specialist activity which refers to any approach to transition individuals, teams and organizations from their current way of working to a new way of working. The objective is for an organization to gain benefits by transforming the way it operates.
What is the difference between changing and transforming?
Transformation is a term, common to programme management, used to describe a distinct change to the way an organization conducts all or part of its business.
Tip
Do not confuse the ‘management of change’, as discussed here, with PRINCE2’s change theme (Chapter 11). Different organizations, standards and methods often use the terms ‘change management’, ‘management of change’ and ‘change control’ interchangeably, so check the intended meaning in whatever context you are working.
There are many models for managing change; however, at the heart of them all is gaining the support of the individuals who are required to change their way of working. This involves:
•understanding the current situation (current state)
•designing how the organization will work when the transformation is completed (future state)
•identifying what changes are needed to move from the current state to the future state
•developing the necessary capabilities to meet the organization’s needs (roles, processes, systems, behaviours)
•engaging those affected by the change and winning their support or, at least, consent.
In order to ensure that the project management method continues to be used effectively, the method must be managed on a day-to-day basis, with improvements being introduced, based both on experience in using it and to reflect any changes in the organization’s context and operations.
See section 21.2 for more detail on embedding PRINCE2 in the organization.