Purpose of a Plan

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The Purpose of a Plan in PRINCE2 extends far beyond just scheduling activities. Plans serve as the backbone of project execution, communication, and control. First, plans establish a clear baseline against which progress can be measured, enabling accurate tracking of achievements against targets. They facilitate resource allocation by identifying what resources are needed, when they're required, and how they should be utilized optimally. Plans also function as powerful communication tools, creating a shared understanding among stakeholders about what will be delivered, by whom, when, and at what cost. They support effective risk management by scheduling risk response activities and building in appropriate contingency. Plans enable delegation of authority by clearly defining who is responsible for what activities and deliverables. They help in gaining commitment from team members and stakeholders by making explicit what is expected from each participant. Plans foster confidence in the project's viability by demonstrating that thought has been given to how objectives will be achieved. They assist in coordination across different aspects of the project, ensuring interdependencies are managed effectively. Additionally, plans support the definition of control points where progress will be assessed, creating a structured approach to project governance. Overall, PRINCE2 views plans as dynamic decision-support tools that guide projects toward successful outcomes, not rigid documents that constrain flexibility.

Purpose of a Plan in PRINCE2 - Comprehensive Guide

Understanding the Purpose of a Plan in PRINCE2

Plans are essential components of the PRINCE2 methodology and serve as the backbone of project management. This guide explores why plans are important, what they are, how they work, and provides tips for exam success.

Why Plans Are Important

Plans in PRINCE2 are crucial because they:

• Establish a communication tool that articulates what needs to be done, how, by whom, when, and at what cost
• Provide a baseline against which progress can be measured
• Define the management controls needed for decision-making
• Document assumptions and decisions made during planning
• Support the approval workflow and stakeholder buy-in
• Help manage uncertainty and identify potential problems

What is a Plan in PRINCE2?

A plan in PRINCE2 is a document that describes how, when and by whom specific targets or objectives will be achieved. It includes:

• The products to be delivered (the scope)
• The activities required to create the products
• The resources and timescales needed for these activities
• The prerequisites, assumptions, constraints, and dependencies
• Risks and how they'll be managed
• Tolerances for the six aspects: time, cost, quality, scope, risk, and benefit

How Plans Work in PRINCE2

PRINCE2 employs a structured approach to planning through:

1. Hierarchical Planning: There are three levels of plans:
• Project Plan (entire project)
• Stage Plans (each management stage)
• Team Plans (optional, for work packages)

2. Product-Based Planning: A technique that focuses on required outputs before determining activities by:
• Writing a project product description
• Creating a product breakdown structure
• Writing product descriptions
• Developing a product flow diagram

3. Plan Development: The product-based planning technique is followed by:
• Identifying activities and dependencies
• Preparing estimates
• Preparing a schedule
• Analyzing risks
• Documenting the plan

Exam Tips: Answering Questions on Purpose of a Plan

Remember the definition: "The purpose of the Plans theme is to facilitate communication and control by defining the means of delivering the products."
Know the key benefits plans provide, especially in terms of communication, control, and stakeholder management.

Understand the three levels of plans (Project, Stage, Team) and when each is created and updated.

Be familiar with the product-based planning technique and its four steps.

Recognize that plans must balance the competing demands of scope, time, cost, quality, risk, and benefits.

Differentiate between management products (plans themselves) and specialist products (deliverables).

Know that planning is continuous throughout the project, not just done at the beginning.

Understand the relationship between plans and other themes, particularly Progress, Risk, and Change.

For scenario-based questions, consider how a plan would help address the specific challenges presented.

Be able to identify when plans need to be updated (e.g., at the end of each management stage).

Common Exam Question Formats

1. Multiple-choice questions about the purpose of plans
2. Matching elements to the correct level of plan
3. Identifying which components are essential for a valid PRINCE2 plan
4. Scenario-based questions asking how plans support decision-making
5. Questions about product-based planning technique steps

Remember that PRINCE2 exams emphasize the practical application of knowledge rather than rote memorization, so understand the rationale behind plans and their purpose.

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