Management by Stages
Management by Stages is a core operational concept that implements the PRINCE2 principle of 'Manage by Stages'. This approach divides the project into discrete, manageable sections called management stages, each representing a commitment of resources and authority to the Project Manager. At the end of each stage, the Project Board reviews progress against plans, examines the updated Business Case, and decides whether to proceed to the next stage. This staged approach provides natural 'break points' where the project's viability can be reassessed before significant commitments are made for subsequent stages. The technique allows for controlled progress toward project objectives while maintaining flexibility to adapt to changing circumstances. Each management stage has its own detailed Stage Plan that the Project Manager develops and the Project Board approves. This plan provides the day-to-day direction and control framework for that stage. The first management stage typically focuses on planning the project in detail, while subsequent stages focus on delivering the project's products. Management by Stages enables better risk management by limiting commitment and providing frequent review points. It improves governance by ensuring senior management maintains control without being overwhelmed with detail. It also facilitates learning throughout the project, as each stage benefits from the experience of previous stages. This concept is particularly valuable in uncertain environments where the full project path may not be clear at the outset.
Guide to Management by Stages in PRINCE2
Understanding Management by Stages: A Comprehensive Guide
Management by Stages is one of the seven fundamental principles of PRINCE2, serving as a cornerstone for effective project management. This guide explains what Management by Stages entails, why it's crucial, how it works in practice, and offers exam tips for answering related questions.
What is Management by Stages?
Management by Stages is the PRINCE2 principle that advocates dividing a project into distinct phases or stages, with each stage planned, monitored, and controlled separately. Rather than planning the entire project in detail from the outset, PRINCE2 recommends planning thoroughly only for the current stage, with subsequent stages planned at a higher level until they approach.
Each stage represents a distinct period in a project where:
• Specific activities are carried out
• Deliverables are produced
• Progress is reviewed
• Plans for the next stage are developed
Why is Management by Stages Important?
Management by Stages offers several significant benefits:
1. Risk Reduction: By breaking the project into manageable segments, risks become easier to identify and address.
2. Control Points: Each stage boundary provides a checkpoint where the Project Board can evaluate progress, authorize continuation, or terminate the project if necessary.
3. Flexibility: The approach allows for adaptation to changing circumstances as detailed planning is done progressively.
4. Resource Management: Resources can be allocated more efficiently when focused on current stage requirements.
5. Learning Opportunity: Lessons from earlier stages can inform the planning and execution of later stages.
How Management by Stages Works
The implementation of Management by Stages follows these key elements:
1. Stage Boundaries: These are the transitions between stages where the Project Board reviews progress and makes go/no-go decisions.
2. Exception Planning: If a stage is forecast to exceed tolerances, an Exception Plan may be created for the remainder of the stage.
3. Stage Plans: Detailed plans are created for the upcoming stage only, with higher-level plans for future stages.
4. End Stage Assessments: At the conclusion of each stage, the Project Manager prepares an End Stage Report and presents it to the Project Board.
5. Stage Authorization: The Project Board must authorize the start of each stage based on the Stage Plan.
The Process in Action
A typical Management by Stages process follows this pattern:
• The project begins with an Initiation Stage, which sets up the project.
• At the end of Initiation, a detailed plan for the next delivery stage is prepared, along with an outline plan for the entire project.
• The Project Board reviews and authorizes the next stage.
• Each subsequent stage follows the same pattern: execution, reporting, planning the next stage, and seeking authorization.
• The final stage includes project closure activities.
Exam Tips: Answering Questions on Management by Stages
When preparing for PRINCE2 Foundation exams, consider these strategies for questions related to Management by Stages:
1. Identify Key Terms: Be familiar with terminology like "stage boundaries," "stage plans," and "end stage assessments."
2. Understand the Project Board's Role: The Project Board authorizes stages and makes decisions at stage boundaries—remember this crucial governance aspect.
3. Remember the Benefits: Questions often ask about the advantages of Management by Stages, so recall the five key benefits listed above.
4. Distinguish from Other Principles: Be clear on how Management by Stages differs from other PRINCE2 principles like Continued Business Justification or Manage by Exception.
5. Focus on Control: Management by Stages is primarily about control—the Project Board controls the project by reviewing it at each stage boundary.
6. Connect to Processes: Know how the "Managing a Stage Boundary" and "Directing a Project" processes relate to this principle.
7. Pay Attention to Planning Horizons: Understand that detailed planning is done only for the upcoming stage, with outline planning for future stages.
8. Exam Trigger Words: When you see words like "stage," "boundary," or "authorization" in questions, they likely relate to this principle.
Common Exam Scenarios
Be prepared for questions that present scenarios such as:
• A project forecasting to exceed tolerances at a stage boundary
• Decisions about whether to proceed to the next stage
• The appropriate level of planning detail for current versus future stages
• The timing and purpose of End Stage Assessments
Final Thoughts
Management by Stages embodies the practical, controlled approach that PRINCE2 brings to project management. By applying this principle effectively, project managers can maintain appropriate oversight while allowing for flexibility and adaptation as the project progresses. In your exam, demonstrate your understanding of how this principle enables the Project Board to maintain control while empowering the Project Manager to manage day-to-day activities within agreed constraints.
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