PRINCE2 defines three distinct levels of plans to accommodate different management and information needs at various organizational levels. The Project Plan is the highest level, providing an overall view of the project's objectives, scope, major products, timescales, costs, and risks. It's used by …PRINCE2 defines three distinct levels of plans to accommodate different management and information needs at various organizational levels. The Project Plan is the highest level, providing an overall view of the project's objectives, scope, major products, timescales, costs, and risks. It's used by the Project Board for monitoring progress against major milestones and is relatively high-level. Stage Plans are more detailed and operational, providing the Project Manager with a firm foundation for day-to-day control of a specific management stage. Stage Plans are created near the start of each stage to reflect current information and are time-limited to the stage duration. Finally, Team Plans, which are optional, can be created by Team Managers to plan the production of deliverables allocated to their teams. Additionally, Exception Plans may be created if a Stage Plan is forecast to exceed its tolerances, replacing the original plan after approval. This hierarchy of plans ensures that appropriate levels of planning detail are available to different roles within the project management team, supporting the management-by-exception principle by providing baselines against which performance can be measured. The multi-level planning approach addresses both the need for high-level oversight and detailed operational control, allowing each management layer to focus on information relevant to their decision-making responsibilities.
Understanding PRINCE2 Plan Levels: Comprehensive Guide
What are PRINCE2 Plan Levels?
PRINCE2 defines four distinct levels of plans that provide a structured planning framework for projects of any size. These four levels form a hierarchy that ensures proper planning from the strategic level down to the day-to-day activities.
The four PRINCE2 plan levels are:
1. Project Plan: The highest level plan that provides an overall view of the project's objectives, timeframes, costs, and key milestones. It's owned by the Project Board and created by the Project Manager.
2. Stage Plan: Created for each management stage of the project, providing detailed planning for that specific stage. It's owned by the Project Manager and is more detailed than the Project Plan.
3. Team Plan: Optional plans created when work packages are delegated to teams. These plans outline how the team will achieve their assigned work packages. Team Managers own these plans.
4. Exception Plan: Created when a Stage Plan is forecast to exceed tolerances. It replaces the existing Stage Plan and requires Project Board approval.
Why are Plan Levels Important?
Plan levels in PRINCE2 are crucial because they:
• Provide appropriate levels of planning detail for different management layers • Enable effective delegation of work • Support the management-by-exception principle • Ensure accountability at all levels of the project • Allow for appropriate control while maintaining flexibility • Help manage stakeholder expectations at different organizational levels
How Plan Levels Work in Practice
Each plan level serves a specific purpose in the project management structure:
The Project Plan gives the Project Board the big picture view they need for strategic decisions. It covers the entire project duration.
The Stage Plan provides the Project Manager with detailed information needed to monitor and control day-to-day activities during a management stage. It's created near the end of the previous stage.
The Team Plan allows Team Managers to plan and track their team's work in detail. These plans are optional and used when work is delegated to teams.
The Exception Plan is created reactively when a plan is forecast to exceed its tolerances. It replaces the plan that's out of tolerance.
Exam Tips: Answering Questions on Plan Levels
• Identify the management level: Questions often hint at which management level is involved (Project Board, Project Manager, Team Manager). This helps identify the appropriate plan level.
• Recognize ownership: Remember who owns each plan level - Project Board approves the Project Plan, Project Manager owns Stage Plans, Team Managers own Team Plans.
• Understand detail requirements: Higher-level plans are less detailed than lower-level plans. Project Plans are high-level; Stage Plans have more detail; Team Plans are most detailed.
• Know when plans are created: Project Plan is created during initiation, Stage Plans near the end of the previous stage, and Exception Plans when tolerances are forecast to be exceeded.
• Spot key differences: Be able to differentiate between plan levels based on purpose, ownership, approval requirements, and level of detail.
• Exception Plans are special: Remember that Exception Plans replace existing plans (usually Stage Plans) and require Project Board approval.
• Team Plans are optional: Unlike Project and Stage Plans, Team Plans aren't mandatory in PRINCE2.
When answering exam questions, always consider the context - who needs what information, for what purpose, and at what point in the project lifecycle. This contextual understanding will help you identify the correct plan level in any scenario.