The Planning Horizon concept in PRINCE2 acknowledges that the accuracy and reliability of plans diminish the further they project into the future. This principle recognizes the inherent uncertainty in project environments and the futility of detailed long-term planning when circumstances will inevi…The Planning Horizon concept in PRINCE2 acknowledges that the accuracy and reliability of plans diminish the further they project into the future. This principle recognizes the inherent uncertainty in project environments and the futility of detailed long-term planning when circumstances will inevitably change. PRINCE2 addresses this challenge through its stage-based approach to planning, where detailed planning is primarily done for the upcoming management stage, with future stages planned at a higher level until they draw nearer. The ideal planning horizon varies depending on factors including project complexity, organizational environment stability, and stakeholder requirements, but generally corresponds to management stage durations. This approach offers several benefits: it reduces wasted effort on detailed plans that will likely change; it allows for adaptation as more information becomes available; it improves accuracy of near-term plans; and it still maintains a high-level view of the entire project for strategic oversight. The Project Plan maintains an overview of the entire project at a summary level, while Stage Plans contain the detailed, actionable planning information for the current period. By accepting the limitations of forecasting and embracing incremental planning, PRINCE2 projects can maintain realistic schedules while remaining responsive to change. The Planning Horizon concept supports both the 'Manage by Stages' and 'Focus on Products' principles, ensuring plans remain reliable tools for decision-making rather than becoming obsolete documents.
Planning Horizon Concept in PRINCE2: A Comprehensive Guide
What is the Planning Horizon?
In PRINCE2, the Planning Horizon refers to the time period within which planning can be done with reasonable confidence and accuracy. It acknowledges that the further into the future you plan, the less reliable and detailed those plans become. PRINCE2 recognizes this limitation and incorporates it into its planning approach.
Why is the Planning Horizon Important?
The Planning Horizon concept is crucial because it:
• Improves plan reliability by focusing detailed planning on near-term activities • Reduces wasted effort on detailed plans that will likely change • Provides a framework for progressive planning throughout the project • Allows for more effective risk management and resource allocation • Helps set realistic expectations with stakeholders
How the Planning Horizon Works in PRINCE2
PRINCE2 implements the Planning Horizon through a hierarchical planning approach:
1. Project Plan: Covers the entire project at a high level 2. Stage Plans: More detailed plans covering each management stage 3. Team Plans: Highly detailed plans for immediate work packages
Each level of planning has a different horizon:
• Project Plans may span months or years (with less detail in later periods) • Stage Plans typically cover 3-6 months with greater detail • Team Plans focus on immediate deliverables (days or weeks) with the highest level of detail
This approach follows the principle of "manage by stages" and allows project managers to:
• Plan in appropriate detail based on certainty • Revise future-stage plans as new information emerges • Make informed decisions at stage boundaries
Rolling Wave Planning
PRINCE2 effectively uses a rolling wave planning approach, where:
• Near-term work is planned in detail • Future work is planned at a higher level • As the project progresses, the detailed planning "wave" rolls forward
Exam Tips: Answering Questions on Planning Horizon
1. Connect to PRINCE2 principles: Relate Planning Horizon to "manage by stages" and "manage by exception" principles.
2. Understand the relationship with plans: Know how Planning Horizon affects Project Plans, Stage Plans, and Team Plans differently.
3. Recognize planning limitations: Acknowledge that detailed planning far into the future may be counterproductive.
4. Identify appropriate detail levels: Be able to determine the right level of detail based on timeline proximity.
5. Link to project controls: Understand how Planning Horizon connects to tolerances, exception reporting, and stage boundaries.
6. Remember the benefits: Cite benefits like reduced wasted effort, improved risk management, and more effective resource allocation.
7. Apply to scenarios: Practice applying the Planning Horizon concept to scenario-based questions.
8. Distinguish from forecasting: Be clear on the difference between planning and forecasting in the PRINCE2 context.
When answering exam questions, focus on how the Planning Horizon concept enables more effective planning through a staged approach rather than attempting to plan every detail from the beginning of the project.