Planning Horizon is a fundamental concept within the PRINCE2 7 Plans Practice that refers to the period of time for which it is possible to plan ahead with reasonable accuracy and confidence. It represents the furthest point in the future that a project manager can effectively create detailed plans…Planning Horizon is a fundamental concept within the PRINCE2 7 Plans Practice that refers to the period of time for which it is possible to plan ahead with reasonable accuracy and confidence. It represents the furthest point in the future that a project manager can effectively create detailed plans while maintaining meaningful levels of precision and reliability.
In PRINCE2 7, the planning horizon concept recognizes that uncertainty increases as you look further into the future. This principle acknowledges that detailed planning becomes less accurate and less useful when extended too far ahead, as circumstances, requirements, and external factors may change significantly over time.
The planning horizon varies depending on several factors including the nature of the project, the stability of the environment, the complexity of work involved, and the availability of information. For some projects operating in stable environments, the planning horizon might extend for months or even years. For projects in rapidly changing environments, the planning horizon might be limited to weeks.
PRINCE2 7 addresses this through its approach to different levels of plans. The Project Plan provides a high-level view across the entire project lifecycle, while Stage Plans offer more detailed planning for the current and next management stage. Team Plans may provide even more granular detail for specific work packages. This layered approach allows appropriate detail at each level based on the relevant planning horizon.
The concept encourages project managers to apply the rolling wave planning technique, where near-term activities are planned in detail while future activities remain at a higher level until they fall within the planning horizon. This approach ensures resources are not wasted on detailed planning that will likely require significant revision, while still maintaining sufficient foresight for effective project governance and decision-making.
Planning Horizon in PRINCE2 Foundation V7
What is Planning Horizon?
A planning horizon refers to the amount of time into the future for which a plan is created. It represents the boundary or limit of detailed planning at any given moment in a project. In PRINCE2, planning horizons are used to ensure that plans remain relevant, manageable, and appropriately detailed for decision-making purposes.
Why is Planning Horizon Important?
Planning horizons are essential in PRINCE2 for several key reasons:
1. Appropriate Level of Detail Planning too far ahead in great detail wastes effort because circumstances change. The planning horizon ensures that detailed planning is done only for the period where reliable information is available.
2. Managing Uncertainty The further into the future you plan, the more uncertain the estimates become. Planning horizons acknowledge this reality by allowing different levels of detail for different timeframes.
3. Resource Efficiency By limiting detailed planning to appropriate timeframes, project teams avoid spending excessive time on plans that will need significant revision as the project progresses.
4. Flexibility and Adaptability Shorter planning horizons allow projects to adapt to changes more easily, incorporating lessons learned and responding to emerging information.
How Planning Horizons Work in PRINCE2
PRINCE2 uses a hierarchy of plans, each with its own planning horizon:
Project Plan This has the longest planning horizon, covering the entire project lifecycle. It provides an overview but with less detail for activities further in the future.
Stage Plans These have a medium-term planning horizon, covering one management stage at a time. They contain more detail than the project plan because the timeframe is shorter and more certain.
Team Plans These have the shortest planning horizon, covering specific work packages. They contain the most detailed information because they deal with near-term activities.
The principle is that as a planning horizon gets closer, more detailed planning becomes appropriate and valuable. This is sometimes called rolling wave planning or progressive elaboration.
Key Concepts to Remember
• The planning horizon determines when detailed planning occurs, not if it occurs • Near-term activities are planned in detail; distant activities are planned at a higher level • Each management stage represents a planning horizon for detailed work • The exception plan, when created, covers the remaining time of the current stage or project
Exam Tips: Answering Questions on Planning Horizon
Tip 1: Understand the Relationship Between Plans Questions may test your understanding of how project plans, stage plans, and team plans relate to each other. Remember that each subsequent level has a shorter planning horizon but greater detail.
Tip 2: Connect to Managing Uncertainty If a question mentions uncertainty or changing circumstances, consider whether the answer relates to planning horizons. Shorter horizons help manage uncertainty effectively.
Tip 3: Recognise Stage Boundaries Questions about when to create detailed plans often relate to planning horizons. Detailed stage planning typically occurs near the end of the previous stage when better information is available.
Tip 4: Watch for Keywords Terms like rolling wave, progressive elaboration, or level of detail often signal that the question is about planning horizons.
Tip 5: Apply the Principle If asked why something is planned with limited detail, the answer often relates to the planning horizon being too distant for reliable detailed planning.
Tip 6: Remember the Purpose Planning horizons exist to make planning practical and useful. If an answer choice suggests planning everything in detail at the start, this typically contradicts the planning horizon concept.
Common Exam Question Themes
• Why are stage plans more detailed than project plans? • When should the next stage plan be created? • How does PRINCE2 handle uncertainty in planning? • What determines the appropriate level of planning detail?
Understanding planning horizons demonstrates your grasp of practical project management principles and how PRINCE2 structures its planning approach to balance thoroughness with efficiency.