A project in PRINCE2 is defined as a temporary organization created for the purpose of delivering one or more business products according to an agreed business case. This definition encompasses several critical elements that distinguish projects from regular business operations.
Firstly, the tempo…A project in PRINCE2 is defined as a temporary organization created for the purpose of delivering one or more business products according to an agreed business case. This definition encompasses several critical elements that distinguish projects from regular business operations.
Firstly, the temporary nature is fundamental. Unlike ongoing business activities that continue indefinitely, a project has a defined start and end point. This finite lifespan means resources are assembled for a specific duration and then released upon completion.
Secondly, projects involve creating something unique. Whether developing a new product, implementing a system, or constructing infrastructure, the outcome represents change from the current state. This uniqueness brings inherent uncertainty and risk that must be managed throughout the project lifecycle.
Thirdly, projects are cross-functional endeavors. They typically require collaboration across different departments, disciplines, and sometimes organizations. This cross-functional aspect necessitates clear governance structures and communication channels.
The business case element is particularly important in PRINCE2. Every project must demonstrate continued business justification throughout its lifecycle. If the business case becomes invalid, the project should be stopped, regardless of how much has already been invested.
PRINCE2 also emphasizes that projects deliver outputs (the specialist products created), which enable outcomes (the results of using those products), which ultimately contribute to benefits (the measurable improvements). Understanding this chain helps ensure projects remain focused on delivering genuine value.
Projects operate within constraints including time, cost, quality, scope, risk, and benefits. Balancing these competing demands while navigating uncertainty is what makes project management both challenging and essential.
Finally, projects require dedicated management attention beyond what normal operations need. The complexity, risk, and temporary nature of projects demand specific management approaches, which is precisely what PRINCE2 provides through its principles, practices, and processes.
Definition of a Project - PRINCE2 Foundation V7 Complete Guide
Why is Understanding the Definition of a Project Important?
Understanding what constitutes a project is fundamental to PRINCE2 methodology. This definition forms the foundation upon which all PRINCE2 processes, themes, and principles are built. In the exam, you will encounter questions that test whether you can distinguish between projects and other types of work, such as operational activities or business as usual (BAU).
What is a Project According to PRINCE2?
PRINCE2 defines a project as:
"A temporary organization that is created for the purpose of delivering one or more business products according to an agreed business case."
Let's break down the key elements of this definition:
1. Temporary Organization A project has a defined start and end date. It is not an ongoing operation. Once the project delivers its outputs, the temporary organization is disbanded.
2. Created for a Purpose Projects exist to achieve specific objectives. They are established to bring about change or create something new.
3. Delivering Business Products Projects produce outputs, which PRINCE2 calls products. These can be tangible (like a building or software) or intangible (like a new process or trained staff).
4. Agreed Business Case Every PRINCE2 project must have justification. The business case provides the reason for the project and demonstrates that the benefits outweigh the costs and risks.
How Does This Definition Work in Practice?
The definition helps organizations:
- Identify which work should be managed as a project versus operational work - Establish clear boundaries and governance structures - Justify investment through a business case - Plan for a definite end point - Assign appropriate resources and management structures
Key Characteristics of Projects
Projects typically involve: - Change and uncertainty - Cross-functional teams - Unique outputs - Finite resources - Risk and complexity - Stakeholder management
Exam Tips: Answering Questions on Definition of a Project
Tip 1: Memorize the Key Words Focus on: temporary, organization, business products, business case. These terms frequently appear in correct answers.
Tip 2: Distinguish Projects from BAU Exam questions often ask you to identify what makes something a project. Remember that ongoing operational activities are NOT projects because they lack the temporary nature.
Tip 3: Look for Business Case References If an answer option mentions justification or business case, this often indicates a correct understanding of PRINCE2 projects.
Tip 4: Temporary Does Not Mean Short Projects can last years but are still temporary because they have a planned end date.
Tip 5: Watch for Trick Options Incorrect options may describe operational work, programs, or portfolios. Stay focused on the specific PRINCE2 project definition.
Tip 6: Remember the Purpose Projects deliver products to enable benefits. The project itself does not usually realize the benefits; that happens after the project closes.
Common Exam Question Formats
- Which statement best describes a project? - What characteristic distinguishes a project from operational work? - According to PRINCE2, what must a project have?
Practice Scenario
If asked whether maintaining an IT system is a project, the answer is NO because maintenance is ongoing operational work. However, upgrading that system to a new version IS a project because it has a defined start, end, and specific deliverables.