0 ABSTRACTThis coursework is a requisite for the course Managing Systems I mplementations. The main objective of this coursework is to check the efficiency of PRINCE2 as project management methods. In order to do that, emphasizes are given mainly on the benefits as well as problems that may arise from implementing PRINCE2, and comparison of PRINCE2 with other project methods. Besides, some recommendation has been provided to get betterresults from PRINCE2.
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000402824 Managing Systems Implementation Projects
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8/8/2019 000402824 Managing Systems Implementation Projects
This coursework is a requisite for the course Managing Systems Implementations. The
main objective of this coursework is to check the efficiency of PRINCE2 as projectmanagement methods. In order to do that, emphasizes are given mainly on the benefits as
well as problems that may arise from implementing PRINCE2, and comparison of PRINCE2
with other project methods. Besides, some recommendation has been provided to get better
results from PRINCE2.
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After the development of IT, different companies use different types of project management
methods according to their needs. A survey of CIO (2008) shows that in total around 62% of
IT project failed and 25% of IT project get cancelled before completion. In investigating thereasons behind failure of project management, inefficient co-ordination between time and
budget, unexpected increase in maintenance cost, failure to deliver business values are
identified as common reason (Asay, 2008). ³Alvarez (2003) identified seven major reasons
behind project failure. Those are lack of user involvement, organizational structure/lack of
management support, lack of clear vision, unable to manage team, unable to cope with
project size, lack of training, lack of resources. Failure in project management may cause
significant looses to the company. Large British companies are wasting more than £13m a
year each by not scrapping failing IT projects (Antony, 2004).´
A good combination of resources, skills, technology and ideas is the most important driver
behind the success of a project management method (The Office of Government Commerce,
2009). PRINCE2 method of project management proved its efficiency in combining those
skills. ³In this crucial stage of IT project failure, PRINCE methods of project management
has been identified as one of the best adaptable approach for the management of almost all
project (OGC, 2002). Though it was developed for the IT project management for Central
Government in 1989, later it has been adopted by many other public and private firms which
were influenced by the statistics of the PRINCE2 method¶s efficiency. PRINCE2 embodies
several years of good practices in project management.´
The main aim and objective of this coursework is to find out whether the PRINCE2 method is
the best approach of project management method.¶ It would be done by comparing the benefits and problems that may arise from implementation of PRINCE2. Besides, PRINCE2
should also be compared with some other project management methods to checks its
efficiency over them. µ
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³PRINCE2 means PRojects IN Controlled Environment (PRINCE2, 2002). PRINCE2 is a
registered trademark of The Office of Government Commerce (OGC, 2002)´. Though,
PRINCE2 was first introduced in 1996, it had its root at 1975. OGC (2002) published the
following steps regarding the development stages of PRINCE2:
1975: Simpact Systems Ltd created a project management method known as PROMPT.
1979: µPROMPT was adopted by the Central Computer and Telecommunications Agency
(CCTA) as the standard to be used for all Government information system projects.¶
1989: ³CCTA established PRINCE based on their previous project management method
known as PROMPT. After the establishment, PRINCE effectively superseded PROMPT
within Government projects. PRINCE remains in the public domain and copyright is retained
by the Crown.´
1996: Having been contributed to by a consortium of some 150 European organisations,PRINCE2 published.
Murray (2009) figures the following information regarding the progress of PRINCE2 during
the period of 1996 to 2008:
World-wide practitioners of PRINCE2 more than 250000World-wide user groups of PRINCE2 more than 20
Accredited training & consulting
organisations more than 120
Software tools supporting PRINCE2 more than 50
PRINCE2 Training course languages More than 17
Number of continent used PRINCE2 7
Apart from those progresses, PRINCE2 is being used by private sectors as well as publicsectors and its¶ being used for almost all types of project like construction, change,
technology (Murray, 2009).
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The Office of Government Commerce (2009) described the benefits for PRINCE2 from three
perspectives. Project managers, directors or executives of projects and the organization itself
would be benefited from PRINCE 2.
4. A. Benef its to project managers
4. A. I. Standard Structure of projects
PRINCE2 enables project managers to use a defined structure for delegation, authority and
communication. In 1998, a survey in Systems Integration Management Office (SIMO) had
done by French computer manufacturer and systems integrator shows that 75% of project
managers blame inefficient structure of their company for their failure in accomplishing
project on time (Alvarez, 2003). It represents the importance of a good structure in business.
4. A. II. Accurate Planning
Lack of good planning is one of the major causes behind the failure of project management.
In order to make the planning more accurate, PRINCE2 divide the whole projects into some
manageable stages (OGC, 2002).
4. A. II. Communication
Around 57% of the project fails because of weak communication between the relevant parties
of a project (Alvarez, 2003). In order to remove this problem, PRINCE2 established regular
reporting system within the organization and manage meeting at any vital stage of the project
(OGC, 2002).
4. B. Benef its to directors, executives and senior responsible owners
4. B. I. Implementing management by exception
PRINCE2 use management by exception for the senior management of a project (OGC,2002). If the senior management doesn¶t forecast any problem regarding the project, they
allow the project manager to get into the project (Project Management, 2005). PRINCE2allows senior management to initiate projects confidently and delegate some of the
responsibility and authority for their management. (University of Glasgow, 2008).
4. B. II. Savings time and money
Implementation of PRINCE2 enables senior management to get frequent information about
the project status without arranging time & money consuming meeting (OGC, 2002).
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The name PRINCE2 itself informs that it¶s a project in control environment. Change controltechnique of PRINCE2 ensures controlled management of a project. University of Glasgow
(2008) identifies four important conditions which have been insured by PRINCE2 in order to
maintain control management. Those are clarity of purpose, credible planning, commitment
and control. According to OGC (2002), PRINCE2 describes the following procedures to
ensure control management:
1) How to coordinate people and activities in a project.
2) How to supervise the project3) What steps should be taken if there is variation between the actual results and
predicted results.
PRINCE2 specified each of the above process with its key inputs and outputs and withspecific goals and activities to be carried out, which gives an automatic control of any
deviations from the plan (OGC, 2002). There are eight main processes and 45 sub-processesof PRINCE2 which ensures the controlled and organized start, middle and end part of a
project (OGC, 2005). Besides, PRINCE2 fits into ISO 9000 Quality Management System
(SIEGELAUB, 2004).
4. C. II. Involvement of managers and stakeholders
A Standish Group survey (2001) identified involvement of stakeholders as the most important
driver behind the success of the project (Alvarez, 2003). According to Cane (2006) absence
of all the stakeholders in the aims and objectives of a project is frequently quoted as a causeof project failure. PRINCE2 provides the organization with active involvement of users and
stakeholders throughout the project to ensure that the product(s) will meet the business,
functional, environmental, service and management requirements (OGC, 2005).
4. C. III. Scalability
Every aspects of PRINCE2 may not be applicable to the every projects of an organization. To
help organization with this problems, very process of PRINCE2 has a note on scalability
which enables organization to understand up to what extent they should use PRINCE2 (APM
Group, 2008).
4. C. IV. Availability
The PRINCE2 methodology is in public domain and available of the shelf (APT, 2009).
There are more than 1.6 million pages on World Wide Web related to PRINCE2 (Murray,
2009). Besides there is an existing body of experience and PRINCE user community which
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always available to support organization regarding any problem with PRINCE2 use (APT,
2009).
5. PROBLEMS WITH PR INCE2
Advanced Projects Techniques (2004) identified five problems of PRINCE2 for which
PRINCE2 still is not widely used in private sectors. Those problems are described below:
5. A. Problems with ³One size fits all´ approach
In modern globalized economy, projects are extremely diversified. It would be reallyunrealistic to predict that one standardized project management method like PRINCE2 can be
used for every project. Though the scalability options of PRINCE2 reduce the problem tocertain extent, but the problem can¶t be ignored completely.
5. B. Problems with Staged approach
The staged approach of PRINCE2 requires activities to perform sequentially. This approach
is best for the projects which involve Research and Development or technology development
contents as phase-gates are negotiated their step by step. But those types of project are small
percentages compare to those projects whose don¶t need step by step checking. According to
Tang (2008) PRINCE2 don¶t give enough focus on the softer side of project management,
particularly when it comes to the people involved in the project.
5. C. Little added Value
Some of the processes of PRINCE2 provided little added value to most of the companies.
Directing a project is a good example of those types of processes.
5. D. Too formal and bureaucratic
Implementation of PRINCE2 may create problems for the management with unnecessary
levels of formality and excessive bureaucracy. The smaller the size of a project, the higher
the formality and bureaucracy problem it would face if it implement PRINCE2.
5. E. Expensive
If an organization wants to change its existing project management method for implementing
PRINCE2 it may be disruptive and expensive. In recent credit crunch most of the companies
are trying to minimize their cost. But PRINCE2 will not be a suitable choice for those
organization who wish achieve earlier practical results at lower cost and in shorter time scale
(Dale, 2005).
Best Management Practice (2007) identifies following two limitations of PRINCE2:
5. F. Ignoring product delivery mechanism
PRINCE2 deliberately does not encompass the mechanics of product delivery.
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Having a DSDM option would allow organization using PRINCE2 to have a choice in theway they execute a project. Combination of DSDM and PRINCE2 would enable organization
to take advantage of a more agile approach to converge on an accurate solution (Richards,2007).
OGC (2005), Murray (2007) also recommends the use of P2MM (PRINCE2 maturity model).
It can be used for the following purposes:
µTo help implement PRINCE2 (first time users)
To re-invigorate/enhance existing PRINCE2 implementations
To help organizations improve their project performance by going
beyond training and templates
As a benchmark to assess organizational capability, plan improvements
and measure the improvements
For organizational accreditation¶
8. CONCLUSION
From the above discussion, it has been clear that PRINCE2 methods of projects management
got some problems and those problems affects more to the small private companies compare
to public and other large size private companies. However, there are huge opportunities for
PRINCE2 to grow in future. In terms of recent period, it can be conclude that PRINCE2 may
not be an efficient methodology for all companies, but for large companies and government
sector it is efficient. There are still no records found regarding huge loss in any institute
because of failure in their PRINCE2 strategy. Besides, there is a high chance that there would
be some update on current PRINCE2 so that it can be used by small private firms also.
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