A project in PRINCE2 is defined by several distinct characteristics that differentiate it from regular business operations. Understanding these characteristics is fundamental to applying PRINCE2 effectively.
Firstly, projects are temporary in nature. They have a defined start and end date, unlike ā¦A project in PRINCE2 is defined by several distinct characteristics that differentiate it from regular business operations. Understanding these characteristics is fundamental to applying PRINCE2 effectively.
Firstly, projects are temporary in nature. They have a defined start and end date, unlike ongoing operations that continue indefinitely. This temporary nature requires specific management approaches to ensure successful delivery within the timeframe.
Secondly, projects are unique. Each project creates something that has not been produced before in exactly the same way. This uniqueness brings inherent uncertainty and risk that must be managed throughout the project lifecycle.
Thirdly, projects involve change. They exist to bring about transformation, whether creating a new product, implementing a new system, or delivering improved services. This change element distinguishes projects from routine activities.
Fourthly, projects are cross-functional. They typically require people from different departments, disciplines, or organisations to work together. This collaboration demands effective communication and coordination structures.
Fifthly, projects contain uncertainty. Because they are unique and temporary, there are always unknowns regarding costs, timescales, quality, and benefits. PRINCE2 addresses this through its risk management approach.
Sixthly, projects require specific resources. People, money, equipment, and materials must be allocated and managed efficiently to achieve project objectives.
Severthly, projects deliver outputs that enable benefits. The products created by the project should contribute to achieving desired outcomes and ultimately business benefits for the organisation.
Finally, projects operate within constraints. Time, cost, quality, scope, risk, and benefits form the six aspects of project performance that must be balanced throughout delivery.
These characteristics collectively explain why projects need dedicated management methods like PRINCE2, which provides structures, processes, and techniques specifically designed to handle temporary, unique, and change-focused endeavours while managing uncertainty and delivering value.
Characteristics of a Project - Complete Study Guide
Why Understanding Project Characteristics is Important
Understanding the characteristics of a project is fundamental to PRINCE2 because it helps you distinguish projects from regular business operations. This knowledge forms the foundation for understanding why PRINCE2 exists and how it adds value. In your exam, questions about project characteristics test whether you truly grasp what makes something a project versus day-to-day work.
What Are the Characteristics of a Project?
According to PRINCE2, a project has six defining characteristics:
1. Change Projects exist to bring about change. They introduce something new or different to an organization. This could be a new product, service, process, or capability.
2. Temporary Projects have a defined start and end date. Unlike ongoing operations, they are not perpetual activities. Once objectives are achieved, the project closes.
3. Cross-functional Projects typically involve people from different departments, teams, or organizations working together. This collaboration crosses normal functional boundaries.
4. Unique Every project delivers something that has not been done before in exactly the same way. Even similar projects have unique aspects due to different contexts, people, or requirements.
5. Uncertainty Projects involve risk and uncertainty because they create something new. The outcomes cannot be completely predicted at the start.
6. Business Case Projects require justification. There must be a valid reason for undertaking the project, typically expressed through expected benefits that outweigh costs and risks.
How These Characteristics Work Together
These six characteristics are interconnected. Because projects bring change and are unique, they naturally involve uncertainty. The temporary nature means resources are assembled for a specific period, often requiring cross-functional teams. The business case justifies investing in this temporary endeavor despite the uncertainty involved.
PRINCE2 addresses each characteristic through its principles, themes, and processes. For example, the continued business justification principle addresses the business case characteristic, while the manage by exception principle helps handle uncertainty.
Exam Tips: Answering Questions on Characteristics of a Project
Tip 1: Memorize All Six Characteristics Know the six characteristics by heart. Questions may ask you to identify which option represents a project characteristic or which scenario demonstrates a specific characteristic.
Tip 2: Understand the Difference Between Projects and Business as Usual Exam questions often present scenarios asking whether something is a project. Apply the characteristics test - does it have all six characteristics? Ongoing maintenance work lacks the temporary characteristic, so it is not a project.
Tip 3: Watch for Distractors Wrong answers might include plausible-sounding options like budgeted or complex. While projects often have budgets and can be complex, these are not defining characteristics according to PRINCE2.
Tip 4: Focus on PRINCE2 Terminology Use the exact PRINCE2 terms. The exam expects you to recognize temporary rather than time-limited or cross-functional rather than multi-team.
Tip 5: Link Characteristics to PRINCE2 Elements Understand how PRINCE2 themes and principles address each characteristic. Questions may test your understanding of why PRINCE2 includes certain elements by linking them to project characteristics.
Tip 6: Read Scenarios Carefully When given a scenario, identify which characteristics are present. A true project scenario will demonstrate all six characteristics, though the question may focus on just one or two.
Common Exam Question Formats
- Which of the following is a characteristic of a project? - Which characteristic is demonstrated in this scenario? - Why does PRINCE2 require continued business justification? (Links to business case characteristic) - What distinguishes a project from business as usual?
Key Takeaway
Remember that all six characteristics must be present for something to be classified as a project in PRINCE2. This understanding underpins the entire methodology and explains why specific controls and management approaches are necessary.