Set Up Project Controls is a crucial activity within the Initiating a Project process in PRINCE2 7. This activity establishes the mechanisms that enable effective monitoring, reporting, and decision-making throughout the project lifecycle.
Project controls are the management tools and techniques u…Set Up Project Controls is a crucial activity within the Initiating a Project process in PRINCE2 7. This activity establishes the mechanisms that enable effective monitoring, reporting, and decision-making throughout the project lifecycle.
Project controls are the management tools and techniques used to ensure the project remains on track and delivers its intended benefits. During this activity, the project management team defines how progress will be measured, reported, and managed.
Key elements of setting up project controls include:
**Progress Monitoring**: Establishing how work progress will be tracked against plans, including defining tolerances for time, cost, quality, scope, benefits, and risk. These tolerances create boundaries within which the Project Manager can operate before needing to escalate issues to the Project Board.
**Reporting Mechanisms**: Determining the frequency and format of reports such as Checkpoint Reports, Highlight Reports, and End Stage Reports. This ensures stakeholders receive appropriate information at the right time.
**Exception Management**: Defining procedures for handling situations when tolerances are forecast to be exceeded, including how exception reports will be prepared and escalated.
**Change Control**: Establishing how changes and issues will be captured, assessed, and managed through a formal change control approach. This includes setting up an issue register and defining approval authorities.
**Quality Controls**: Specifying how quality will be assured and controlled, including quality review techniques and approval processes.
**Communication Controls**: Defining how information will flow between team members, stakeholders, and governance bodies.
These controls are documented in the Project Initiation Documentation and should be proportionate to the project's size, complexity, and risk profile. Effective project controls provide early warning of potential problems, enabling proactive management rather than reactive crisis management. They also support accountability and provide an audit trail of decisions made throughout the project.
Set Up Project Controls - Complete Guide for PRINCE2 Foundation V7
Why Set Up Project Controls is Important
Setting up project controls is crucial because it establishes the mechanisms that allow the Project Board to manage the project effectively while delegating day-to-day management to the Project Manager. These controls ensure that the project stays on track, deviations are identified early, and appropriate action can be taken before problems escalate. Project controls provide the governance framework that enables informed decision-making throughout the project lifecycle.
What Are Project Controls?
Project controls are the decision points and management processes that enable oversight of the project. They include:
Tolerances: These define the permissible deviation from planned targets for time, cost, scope, quality, benefits, and risk. When tolerances are exceeded, an exception is raised.
Progress Reporting: The frequency, format, and content of reports such as Highlight Reports and Checkpoint Reports that keep stakeholders informed.
Stage Gates: Authorization points where the Project Board reviews progress and decides whether to continue with the next stage.
Exception Management: Procedures for handling situations when tolerances are forecast to be exceeded.
How Project Controls Work
During the Initiating a Project process, the Project Manager defines these controls in the Project Initiation Documentation (PID). The controls are tailored to suit the project's size, complexity, risk, and organizational requirements.
The Project Board sets tolerances for each management stage, and the Project Manager operates within these boundaries. If a forecast shows tolerances will be breached, the Project Manager must escalate through an Exception Report.
Controls also include communication mechanisms that determine how and when information flows between the Project Manager, Project Board, and Team Managers.
Key Elements to Remember
• Tolerances are set by the Project Board for each stage • The Project Manager sets tolerances for work packages assigned to Team Managers • Highlight Reports go to the Project Board at agreed intervals • Checkpoint Reports are used within stages for team-level monitoring • Exception Reports are produced when tolerances are forecast to be exceeded
Exam Tips: Answering Questions on Set Up Project Controls
Tip 1: Remember that controls are established during Initiating a Project but are used throughout the project during Controlling a Stage and Managing Stage Boundaries.
Tip 2: Understand the hierarchy of tolerances - corporate/programme sets project tolerances, Project Board sets stage tolerances, and Project Manager sets work package tolerances.
Tip 3: Know the difference between Highlight Reports (Project Manager to Project Board) and Checkpoint Reports (Team Manager to Project Manager).
Tip 4: When questions mention exceeding tolerances, the correct response typically involves raising an Exception Report to the next management level.
Tip 5: Controls must be tailored to the project environment - look for answers that acknowledge flexibility rather than rigid application.
Tip 6: Questions may test whether you understand that project controls enable management by exception, allowing the Project Board to delegate while maintaining oversight.
Tip 7: Be clear that the purpose of controls is to provide timely information for decision-making, not to create bureaucracy.