Team Structure and Approach
Team Structure and Approach within PRINCE2's Organization Theme addresses how project teams are designed, established, and managed to deliver project products effectively. PRINCE2 recognizes that team structures need to be tailored to the project's size, complexity, and organizational context. The approach distinguishes between the Project Management Team (those managing the project) and Teams (those creating the products). Teams may be organized functionally (by specialization), matrix-based (with dual reporting lines), or project-based (dedicated solely to the project). Each approach has implications for authority, resource allocation, and communication that must be considered during project organization. PRINCE2 recommends documenting the team structure in the Project Initiation Documentation, including reporting lines, role descriptions, and team member responsibilities. The approach emphasizes defining team boundaries—where team authority begins and ends—to prevent gaps or overlaps in responsibility. Resources must be allocated appropriate to the skills required for each stage, recognizing that team composition may change throughout the project lifecycle as different expertise becomes necessary. The Team Structure and Approach also addresses how teams will operate, including decision-making processes, meeting cadences, collaboration tools, and communication protocols. PRINCE2 highlights the importance of establishing clear quality expectations and working practices for teams. The Project Manager must ensure teams understand how their work contributes to the overall project objectives, promoting cohesion across different team units. Effective Team Structure and Approach facilitates clear accountability, efficient resource utilization, and the development of appropriate team capabilities to meet project requirements.
Team Structure and Approach in PRINCE2
Why Team Structure and Approach is Important
Team Structure and Approach is a critical element within the Organization Theme of PRINCE2. It defines how project teams are structured, roles assigned, and relationships managed. The importance of this concept lies in:
• Creating clear lines of authority and responsibility
• Ensuring accountability at all levels of the project
• Enabling effective decision-making
• Promoting efficient communication
• Ensuring the right skills are available when needed
What is Team Structure and Approach?
Team Structure and Approach in PRINCE2 refers to the framework that defines how teams within a project are organized, how they operate, and the relationships between different roles. It establishes:
• A three-tier management structure (Project Board, Project Manager, Team Manager)
• Clear reporting lines
• Role descriptions and responsibilities
• Team formation principles
• Communication channels
PRINCE2 promotes a customer/supplier environment where the project team delivers products that meet the customer's expectations.
How Team Structure and Approach Works
PRINCE2 follows these key principles for structuring teams:
1. Defined Project Management Team: Every project needs a defined structure with clear roles including:
• Executive (representing the business)
• Senior User (representing users' interests)
• Senior Supplier (representing those designing and developing products)
• Project Manager (day-to-day management)
• Team Manager (coordinating work of specialists)
2. Management By Exception: Each tier sets tolerances for the tier below, allowing for delegated authority.
3. Customer/Supplier Environment: Clear distinction between those who specify requirements (customer) and those who provide the solution (supplier).
4. Work Package Approach: Work is delegated through formal Work Packages that define what needs to be produced, constraints, reporting arrangements, and tolerances.
5. Flexible Team Structures: PRINCE2 allows for flexibility in team organization based on project size and complexity.
Exam Tips: Answering Questions on Team Structure and Approach
1. Know the key roles and responsibilities:
• Understand what makes each role distinct
• Know which responsibilities belong to which role
• Recognize when a role is overstepping boundaries
2. Understand the different team structures:
• Simple structure for small projects
• Complex structures for larger projects
• Program management interfaces
3. Focus on communication flows:
• Who reports to whom
• Escalation paths for issues
• How exceptions are handled
4. Recognize the importance of role separation:
• Be able to explain why the Executive and Project Manager are separate roles
• Understand why Senior User and Senior Supplier perspectives are both needed
5. Practice with scenario-based questions:
• Apply role knowledge to project situations
• Identify when a project structure is incorrect
• Recommend corrections to organizational issues
6. Key terms to remember:
• Project Management Team (PMT)
• Project Board
• Management by Exception
• Work Package
• Team Manager
7. Common exam question themes:
• Identifying incorrect reporting structures
• Determining appropriate escalation paths
• Resolving role conflicts
• Selecting appropriate team structures for different project types
Remember that PRINCE2 emphasizes clear roles and responsibilities as the foundation for project success. Questions often test your understanding of how these roles interact and how the organizational structure supports effective project governance.
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