Prince2 Lesson 05 PDF

PRINCE2 Foundation
Lesson 5Organisation Theme
Based on AXELOS PRINCE2 material. Material is reproduced under licence from AXELOS Limited. All rights reserved.
PRINCE2 is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.
AXELOS is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.
The Swirl logo is a trade mark of AXELOS Limited, used under the permission of AXELOS Limited. All rights reserved.
Copyright 2014, Simplilearn, All rights reserved.
1 Copyright 2014, Simplilearn, All rights reserved.
Objectives
After completing Define key terms in Organisation theme

this lesson, you will
be able to: Explain the PRINCE2 approach to Organisation theme
Identify the roles and responsibilities in an Organisation theme

Purpose of Organisation Theme
The purpose of the Organisation theme is to define and establish the projects structure of
accountability and responsibilities (the who?).[1]
This theme is based on the principle of Defined Roles and Responsibilities.
Projects are generally based on customer/supplier relationship.
Customer
Specifies the desired result and probably pay for the project.
Supplier
Provides the resources and skills to deliver the projects outputs.

ProgrammeIntroduction
A programme is a temporary flexible organisational structure created to coordinate, direct and

oversee the implementation of a set of related projects and activities, in order to deliver outcomes
and benefits related to the organisations strategic objectives.[2]
Programme has a longer life than a single project.
A project can be a standalone entity or it can be a part of a programme of related projects.

ProjectIntroduction
Project is a temporary organisation that is created for the purpose of delivering one or more
business products according to an agreed Business Case.[3]
Roles and jobs in a ProjectPRINCE2 does not define management jobs to be allocated to
people on a one-to-one basis. It defines roles, each of which is defined by an associated set of
responsibilities.
Roles might be shared or combined according to the projects needs but the responsibilities must
always be allocated.

Three Project Interests
PRINCE2 defines a project as a temporary organisation that is created for the purpose of delivering
one or more business products according to an agreed Business Case.[4]
The PRINCE2 principle of defined roles and responsibilities states that a PRINCE2 project will always
have three primary categories of stakeholder. They are Business, User and Supplier.
Figure 5.1. The three project interests. Copyright AXELOS Limited 2013. Material is
reproduced under licence from AXELOS. All rights reserved.
Three Project Interests (contd.)
The functions of three project interests are:
Ensures that investment in the project is worthwhile and project

Business provides value for money.
Executive represents the business view point.
Uses the output to realise the benefits.

User Operate, maintain or support the projects outputs.
Will be impacted by the projects output.
Provides the necessary skills and produce the projects product.

Supplier
May be in-house or external.

Examples of Three Project Interests
For the project to construct the Sydney Opera House, the following were the business, user and
supplier:
Business: NSW State Conservatorium of Music and Ministry of Public Works.

User: The Australian Ballet, Sydney Theatre Company and Sydney Symphony
Orchestra.
Supplier: Construction firm Civil and Civic and Hornibrook Group Pty Ltd.

PRINCE2 Approach to Organisation
The levels of organisation in PRINCE2 are:
Corporate or programme management
Project management team

DirectingProject Board
ManagingProject Manager
DeliveringTeam Manager
Figure 5.2. The four levels of management within the project management structure. Copyright
AXELOS Limited 2013. Material is reproduced under licence from AXELOS. All rights reserved.
Levels of Organisation
The four levels of organisation as defined by PRINCE2 are:
Corporate or programme Directing Managing Delivering

management
Is outside the project Project Board is The Project Manager is Team members/managers
team. accountable for the success responsible for the day-to- are responsible for
of the project. day management of the delivering the projects
Commissions the
project. products within defined
project.
time and cost and as per
Identifies the
the quality expectations.
Executive.
Defines project-level
tolerances.

Project Management Team Structure
PRINCE2 suggests a strong project management team structure.
Lines of support/advice
Figure 5.3. Project management team structure. Copyright AXELOS Limited 2013. Material is
reproduced under licence from AXELOS. All rights reserved.
Role of Executive
Roles of an Executive are the following:
Executive is appointed by corporate or programme management.
Ultimate accountability for the project's success is with the Executive.
Executive is responsible for the Business Case.
Ensuring that project gives value for money.
Appointment of the rest of the project management team is also a responsibility of

Executive

Role of Project Manager
Roles of a Project Manager are the following:

This role should NOT be shared.
Responsible for day-to-day management of a project.
Project Manager is responsible for the work of all the
PRINCE2 processes except Managing Product Delivery,
Directing a Project process and appointing the Executive
and the Project Manager in the pre-project, Starting up
a Project process.
Responsible for liaison with the Project Assurance and
the Project Board.
May delegate responsibility for developing specialist
products to the Team Managers. Figure 5.4. The many facets of the project manager role. Copyright AXELOS
Limited 2013. Material is reproduced under licence from AXELOS. All rights
Manages the Team Managers and Project Support. reserved.
Normally from customer organisation, may also come

from supplier organisation.

Role of Senior User
Roles of Senior User are the following:
Represents the interest of those who will use the projects products.
Specifies the needs of the users for the specialist products.
Responsible for verifying the specialist product against the requirements.
Commits the user resources.
Specifies the benefits.
Accountable for demonstrating the realisation of benefits.
May be involved in post-project life.

Role of Senior Supplier
Represents the team that would be involved in designing, developing, facilitating, procuring and
implementing the projects specialist products.
The Senior Supplier:
is accountable for the quality of products.
is responsible for the technical integrity of the project.
provides supplier resources.

Role of Project Board
Project Board consists of Executive, Senior Supplier(s) and Senior User(s). Roles of Project Board
are the following:
Project Board is accountable for the success or failure of the project.
Project Board provides the resources and authorises the funds necessary for the successful
completion of the project.
Project Board ensures effective communication both within the project team and with external
stakeholders.

Role of Project Board (contd.)
Characteristics of Project Board are the following:
Authority
To make strategic decisions.
Credibility
Ability to direct the project.
Ability to delegate
Keep Project Board activity at the right level.
Availability
To make decisions and provide direction to the Project Manager.

Role of Project Assurance
The Project Board may not have skills, knowledge and/or time to perform the assurance
activities. Roles of Project Assurance are the following:
The Project Board appoints other members to take Project Assurance role.
Team members of Project Assurance report to Project Board.
Responsible for giving advice and guidance on issues.
This role should not be assigned to Project Manager.
Members of this team may come from an organisations Project Management Office (PMO).
Environment Canadas Project Delivery Office guides and advices the Project
Manager on project management and its best practices.

Role of Change Authority
Project Board is responsible for agreeing to each change before it is implemented. Roles of Change
Authority are as follows:
Projects in a dynamic environment which expects lots of requests for change may appoint a
separate Change Authority.
Project Manager and/or the people with delegated Project Assurance responsibilities may act as
Change Authority.
Change Authority may need to have technical knowledge to evaluate potential changes.
Request for change could be handled by Corporate or programme management, Project Board,
Delegating to the Change Authority or Delegating to the Project Manager, depending on the
impact of the Change.

Role of Team Manager
Project Manager may be Team Manager depending on the project, so this role is optional. Roles of
a Team Manager are the following:
The Team Manager reports to Project Manager.
Looks for direction from Project Manager.
The Project Manager should plan the role during the starting of the project process and at each
stage in managing a stage boundary process.
The Work Packages are allocated to the Team Managers.
The Team Manager is responsible for production of the allocated products as per the Work
Package.

Role of Project Support
This role is not optional. Project Support defaults to the Project Manager if it is not otherwise
allocated. Roles of Project Support are the following:
Responsibility of Project Manager.
Responsible for administering any Configuration Management procedure and tools defined in
the Configuration Management Strategy.
Project Support and Project Assurance roles should be kept separate to maintain the
independence of Project Assurance.

Working with the Project Team
Knowledge of different types of personalities and how they work together help the Project Manager
in assembling balanced teams that can work effectively during a project.
Extra care to be exercised by the Project Manager in case of part-time teams.
At the start of the project, team members may need training.
Few examples of trainings are:
o Training on any process and standard to be used on the project, i.e. Configuration
Management procedures, progress reporting and quality methods.
o Training on introduction to the project and its goals.
o Training on PRINCE2 processes and terminologies.

Working with the Corporate Organisation
There are usually two structures in a corporate organisation. They are the following:
Line management/functional management
Project Managers can find difficulties when managing cross-functional projects due to the
disagreement on overall leadership from various groups.
Centre of excellence concept

This structure consists of a central standards unit, which defines standards (such as processes,
templates and tools) and provides skills, training and possibly independent assurance functions
to a number of projects.

Working with Stakeholders
Stakeholders: Individuals or groups who may or may not be a part of the project management team
but may affect, or be affected by the project.
They are individuals who can:
Support, oppose or be indifferent to the project
Gain or lose as a result of the project delivery
Consider project as a threat or enhancement to their position
Active supporters or blockers for the project and its progress

Procedure for Stakeholder Engagement
Six-step procedure for stakeholder engagement is as follows
Creating and Defining the Planning

Engaging Measuring
Identifying stakeholders analysing stakeholder Stakeholders
stakeholders effectiveness
(Who?) stakeholder engagement engagement
(Do) (Results)
profiles (What?) strategy (How?) (When)
Transport for London regularly sends out emails to its customers asking for their
opinions before taking major decisions. The customers who have registered on the
website are included in this mailing list.

Procedure for Stakeholder EngagementExample
ANZ Bank states that stakeholder engagement helps to minimise risks, identify ideas for new
products and services. Hence, for a project, they typically do the following:
Identifying stakeholders: By conducting regular dialogue across a number of

business and functional areas on an annual basis.
Defining stakeholder engagement strategy: ANZs strategy is based on the
principles of Congruence, Consultative, Collaborative, Creative, Communicate and
Commitment.
Engaging stakeholders: ANZ holds forums for specific stakeholder groups each
year to seek formal input into their business agenda.
Measuring effectiveness: ANZ does this through the Shareholder Review, Annual
General Meeting and engagements with Australian Shareholders Association.
Communication Management Strategy
Communication Management Strategy describes the means and frequency of communication to all
the stakeholders including internal and external. The other features of this strategy are the
following:
Facilitates controlled and bi-directional flow of information.
Includes communication procedure/communication method to be used.
May specify the tools that need to be used for communication.
Includes information needs for each interested party.
The Project Manager is responsible for documenting the Communication Management Strategy.
Should be reviewed at each stage boundary and while planning the final stage.
! For composition of Communication Management Strategy please refer PRINCE2 Manual Appendix A.

Roles and Responsibilities in Organisation Theme
The table depicts the responsibilities of different roles in Organisation theme.
Role Responsibilities
Corporate or programme Appoint the Executive and (possibly) the Project Manager.
management Provide information to the project as defined in the Communication Management Strategy.
Executive Appoint the Project Manager (if not done by corporate or programme management).
Confirm the appointments to the project management team and the structure of the project
management team.
Approve the Communication Management Strategy.
Senior User Provide user resources.
Define and verify user requirements and expectations.
Senior Supplier Provide supplier resources.
Text in box is from Managing Successful Projects with PRINCE2. Copyright AXELOS Limited 2013.
Material is reproduced under licence from AXELOS. All rights reserved.
Roles and Responsibilities in Organisation Theme (contd.)
The table depicts the responsibilities of different roles in Organisation theme.
Role Responsibilities
Project Manager Prepare the Communication Management Strategy.

Review and update the Communication Management Strategy.
Design, review and update the project management team structure.
Prepare role descriptions.
Team Manager Manage project team members.
Advise on project team members and stakeholder engagement.
Project Assurance Advise on selection of project team members.
Advise on stakeholder engagement.
Ensure that the Communication Management Strategy is appropriate and the planned
communication activities actually take place.
Project Support Provide administrative support for the project management team.
Text in box is from Managing Successful Projects with PRINCE2. Copyright AXELOS Limited 2013.
Material is reproduced under licence from AXELOS. All rights reserved.
Quiz

QUIZ
The purpose of the Organisation theme is to:
1
a. establish tolerances around the resources utilised on the project
b. establish mechanism to judge whether the project is (and remains)

desirable, viable and achievable
c. implement the controls required to permit management by exception
d. establish a strategy for communication between all interested parties of

the project

QUIZ
The purpose of the Organisation theme is to:
1
a. establish tolerances around the resources utilised on the project
b. establish mechanism to judge whether the project is (and remains) desirable, viable and
achievable
c. implement the controls required to permit management by exception
d. establish a strategy for communication between all interested parties of the project
Answer: d.
Explanation: The purpose of the Organisation theme is to establish a strategy for
communication between all interested parties of the project.

QUIZ
Which of the following statement is not true?
2
a. The Project Manager and Project Board decision making accountability

can be delegated
b. The Project Manager and Executive roles cannot be shared
c. The Executive and Senior User roles can often be combined
d. The Project Board should represent all interest groups (business, users
and suppliers)

QUIZ
Which of the following statement is not true?
2
a. The Project Manager and Project Board decision making accountability can be delegated
b. The Project Manager and Executive roles cannot be shared
c. The Executive and Senior User roles can often be combined
d. The Project Board should represent all interest groups (business, users and suppliers)
Answer: a.
Explanation: The Project Manager and Project Board decision making accountability cannot
be delegated.

QUIZ
Who appoints the Executive?
3
a. Project Manager
b. Corporate or programme management

c. Project Board
d. Project Support

QUIZ
Who appoints the Executive?
3
a. Project Manager
b. Corporate or programme management

c. Project Board
d. Project Support
Answer: b.
Explanation: Corporate or programme management appoints the Executive.

QUIZ
Who provides the necessary skills to produce the project product?
4
a. Senior Supplier
b. Project Support
c. Project Assurance
d. Team Manager

QUIZ
Who provides the necessary skills to produce the project product?
4
a. Senior Supplier
b. Project Support
c. Project Assurance
d. Team Manager
Answer: a.
Explanation: Senior Supplier is responsible for the technical integrity of the project and also
accountable for the quality of products.

QUIZ Who is responsible for the overall direction and management of the project within the
5 constraints set out by the corporate or programme management?
a. Project Support
b. Project Manager
c. Project Board
d. Project Assurance

QUIZ Who is responsible for the overall direction and management of the project within the
5 constraints set out by the corporate or programme management?
a. Project Support
b. Project Manager
c. Project Board
Answer: c.
Explanation: Project Board is responsible for overall direction and management of the
project.

QUIZ Who is responsible for the day-to-day management of the project within the
6 constraints set out by the Project Board?
a. Team Manager
b. Project Manager
c. Project Support

QUIZ Who is responsible for the day-to-day management of the project within the
6 constraints set out by the Project Board?
a. Team Manager
b. Project Manager
c. Project Support
Answer: b.
Explanation: Project Manager is responsible for day-to-day management of the project and
reports to the Project Board.

QUIZ
Who is responsible for the Project Support?
7
a. Project Board
b. Executive
c. Project Manager

QUIZ
Who is responsible for the Project Support?
7
a. Project Board
b. Executive
c. Project Manager
Answer: c.
Explanation: Project Support defaults to the Project Manager if it is not otherwise allocated.
Project Support is the responsibility of Project Manager.

QUIZ
Which of the following role is optional?
8
a. Team Manager
b. Project Board
c. Project Support
d. Senior User(s)

QUIZ
Which of the following role is optional?
8
a. Team Manager
b. Project Board
c. Project Support
d. Senior User(s)
Answer: a.
Explanation: Project Manager can act as Team Manager if the project size is small.

QUIZ
Which of the following is not a characteristic of a Project Board?
9
a. Authority
b. Credibility
c. Availability
d. Scalability

QUIZ
Which of the following is not a characteristic of a Project Board?
9
a. Authority
b. Credibility
c. Availability
d. Scalability
Answer: d.
Explanation: Characteristics of Project Board are: Authority: To make strategic decisions,
Credibility: Ability to direct the project, Ability to delegate and Availability.

QUIZ
Whose responsibility is it to agree to each potential change before it is implemented?
10
a. Project Manager
b. Project Board
c. Senior Supplier
d. Senior User

QUIZ
Whose responsibility is it to agree to each potential change before it is implemented?
10
a. Project Manager
b. Project Board
c. Senior Supplier
d. Senior User
Answer: b.
Explanation: It is the Project Boards responsibility to agree to each potential change before
it is implemented.

Summary
Here is a quick Purpose of the Organisation theme is to define and establish the projects
recap of what we
structure of accountabilities and responsibilities
have learnt in this
lesson:
The PRINCE2 principle of defined roles and responsibilities states that a
PRINCE2 project will always have three primary categories of stakeholder.
They are Business, User and Supplier
The four levels of organisation as defined by PRINCE2 are Corporate or

programme management, directing, managing and delivering

Thank You
Based on AXELOS PRINCE2 material. Material is reproduced under licence from AXELOS Limited. All rights reserved.
PRINCE2 is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.
AXELOS is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.
The Swirl logo is a trade mark of AXELOS Limited, used under the permission of AXELOS Limited. All rights reserved.
52 Copyright2014,
Copyright 2014, Simplilearn,
Simplilearn, All rights
All rights reserved.
reserved.
References
[1] Based on Managing Successful Projects with PRINCE2, by AXELOS. Organisation, Purpose.
[2] Based on Managing Successful Projects with PRINCE2, by AXELOS. Organisation, Programme.
[3] Based on Managing Successful Projects with PRINCE2, by AXELOS. Organisation, Project.
[4] Based on Managing Successful Projects with PRINCE2, by AXELOS. Organisation, Three project
interests.

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PRINCE2 Foundation

Lesson 5Organisation Theme

After completing Define key terms in Organisation theme

Identify the roles and responsibilities in an Organisation theme

2 Copyright 2014, Simplilearn, All rights reserved.

accountability and responsibilities (the who?).[1]

This theme is based on the principle of Defined Roles and Responsibilities.

Projects are generally based on customer/supplier relationship.

3 Copyright 2014, Simplilearn, All rights reserved.

A programme is a temporary flexible organisational structure created to coordinate, direct and

Programme has a longer life than a single project.

A project can be a standalone entity or it can be a part of a programme of related projects.

4 Copyright 2014, Simplilearn, All rights reserved.

5 Copyright 2014, Simplilearn, All rights reserved.

The functions of three project interests are:

Ensures that investment in the project is worthwhile and project

Uses the output to realise the benefits.

Provides the necessary skills and produce the projects product.

7 Copyright 2014, Simplilearn, All rights reserved.

Business: NSW State Conservatorium of Music and Ministry of Public Works.

8 Copyright 2014, Simplilearn, All rights reserved.

The levels of organisation in PRINCE2 are:

Corporate or programme management

Project management team

The four levels of organisation as defined by PRINCE2 are:

Corporate or programme Directing Managing Delivering

10 Copyright 2014, Simplilearn, All rights reserved.

PRINCE2 suggests a strong project management team structure.

Roles of an Executive are the following:

Executive is appointed by corporate or programme management.

Ultimate accountability for the project's success is with the Executive.

Executive is responsible for the Business Case.

Ensuring that project gives value for money.

Appointment of the rest of the project management team is also a responsibility of

12 Copyright 2014, Simplilearn, All rights reserved.

Roles of a Project Manager are the following:

Normally from customer organisation, may also come

13 Copyright 2014, Simplilearn, All rights reserved.

Roles of Senior User are the following:

Specifies the needs of the users for the specialist products.

Responsible for verifying the specialist product against the requirements.

Commits the user resources.

Specifies the benefits.

Accountable for demonstrating the realisation of benefits.

May be involved in post-project life.

14 Copyright 2014, Simplilearn, All rights reserved.

The Senior Supplier:

is accountable for the quality of products.

is responsible for the technical integrity of the project.

provides supplier resources.

15 Copyright 2014, Simplilearn, All rights reserved.

Project Board is accountable for the success or failure of the project.

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Characteristics of Project Board are the following:

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The Team Manager reports to Project Manager.

Looks for direction from Project Manager.

The Work Packages are allocated to the Team Managers.

20 Copyright 2014, Simplilearn, All rights reserved.

Responsibility of Project Manager.

21 Copyright 2014, Simplilearn, All rights reserved.