Project Management Team Structure

Project Management Team Structure: PRINCE2 Foundation

Why Project Management Team Structure is Important

In PRINCE2, the Project Management Team Structure is a cornerstone of the Organization Theme. It establishes clear roles and responsibilities, creates accountability, enables effective decision-making, and ensures proper stakeholder representation. A well-defined team structure prevents confusion about who does what, reduces conflicts, and increases project success rates.

What is the Project Management Team Structure in PRINCE2?

The PRINCE2 Project Management Team Structure is a defined organizational model that specifies how teams should be arranged and how they interact within a project. It follows a three-level structure:

1. Project Board (Directing level): Responsible for overall direction and decision-making
- Executive: Business-focused, responsible for business justification
- Senior User: Represents users' interests and ensures benefits realization
- Senior Supplier: Represents suppliers' interests and ensures delivery quality

2. Project Manager (Managing level): Day-to-day management and control of the project

3. Team level (Delivering level):
- Team Manager: Manages team specialists (optional role)
- Team Members: Specialists who create the products

Additional roles include:
- Project Support: Administrative support to the project
- Project Assurance: Independent monitoring for the Project Board
- Change Authority: Delegated approval authority for changes

How the Project Management Team Structure Works

The structure operates on the principle of management by exception, with each level delegating authority to the level below it within defined tolerances:

- The Project Board sets overall direction but does not get involved in day-to-day activities. They are accountable for project success and make decisions outside the Project Manager's authority.

- The Project Manager plans and manages the project within tolerances set by the Project Board. They report to the Board regularly and escalate issues when necessary.

- Team Managers (if appointed) coordinate the work of team members, working within tolerances set by the Project Manager.

- Team Members create the products according to specifications.

This structure allows for clear escalation paths and decision-making authorities.

Exam Tips: Answering Questions on Project Management Team Structure

1. Know the core roles and responsibilities:
- Memorize the three levels: directing, managing, delivering
- Understand what each role is responsible for
- Remember that roles can be combined but the Executive and Project Manager cannot be the same person

2. Focus on accountability:
- The Project Board is ultimately accountable for project success
- The Executive is the single point of accountability on the Project Board
- The Project Manager is accountable to the Project Board

3. Understand reporting lines:
- Team Managers report to the Project Manager
- The Project Manager reports to the Project Board
- Project Assurance reports to the Project Board

4. Recognize role combinations and context:
- In exam scenarios, identify how roles might be combined in different project sizes
- Small projects may combine roles while large projects may separate them

5. Pay attention to management by exception:
- Understand tolerance levels and escalation procedures
- Know when issues should be escalated to higher management levels

When facing multiple-choice questions, carefully analyze the scenario to identify the correct role responsible for specific activities. Remember that PRINCE2 is prescriptive about responsibilities, so there's typically one clear answer regarding who should perform a particular function.