In the PRINCE2 7 Directing a Project (DP) process, the 'Authorize Project Closure' activity serves as the definitive endpoint of the project lifecycle. It is the formal mechanism by which the Project Board confirms that the project has met its objectives—or that it has nothing more to contribute—an…In the PRINCE2 7 Directing a Project (DP) process, the 'Authorize Project Closure' activity serves as the definitive endpoint of the project lifecycle. It is the formal mechanism by which the Project Board confirms that the project has met its objectives—or that it has nothing more to contribute—and should be disbanded. This activity prevents the common issue of projects drifting indefinitely into business-as-usual operations, ensuring a clean break between project work and operational use.
Triggered by the Project Manager's submission of the End Project Report from the 'Closing a Project' process, the Project Board executes a final review to assess success against the original Project Initiation Documentation (PID). The Board focuses on four critical areas during this activity. First, they verify user acceptance, ensuring that the project's products have been formally handed over to and accepted by the operational environment, and that maintenance arrangements are in place. Second, they review the updated Business Case and Benefits Management Approach to confirm that any benefits already achieved are recorded and that a clear plan exists to measure outstanding post-project benefits.
Third, the Board evaluates the Lessons Report to ensure that insights gained regarding what went well or badly are disseminated to the corporate or programme management levels to enhance organizational maturity. Finally, upon satisfaction, the Project Board issues a formal project closure notification. This act authorizes the release of the project management team and resources, ending the accrual of project costs. Effectively, this activity transforms the project from an active investment into a realized asset or capability.
Guide to Authorize Project Closure in PRINCE2 Practitioner v7
What is Authorize Project Closure? Authorize Project Closure is the final activity undertaken by the Project Board within the Directing a Project (DP) process. It serves as the final control gate where the Board formally confirms that the project has delivered what was required (or that it has been stopped early) and that the project team can be disbanded. While the Project Manager prepares the data during the Closing a Project (CP) process, the Project Board makes the final decision here.
Why is it Important? This activity is crucial for good governance. It ensures: 1. Formal Handover: Products are not just abandoned but formally accepted by operations or the customer. 2. Resource Release: It provides the official authority to release resources, preventing costs from continuing to accrue. 3. Learning: It ensures lessons are formalized and passed to the organization (Corporate/Programme management) rather than being lost.
How it Works Upon receiving the recommendation to close from the Project Manager, the Project Board reviews the following:
1. End Project Report: They compare the final outcome against the original Project Initiation Documentation (PID) to evaluate performance. 2. Product Handover: They confirm that the user/operations have accepted the products and that maintenance arrangements are in place. 3. Business Case: They review the final status of the benefits (some may be realized, most will likely be realized post-project). 4. Lessons Report: They approve the report and ensure it is sent to the appropriate corporate body. 5. Notification: Finally, they issue a project closure notification to the outside world (Corporate/Programme management) to announce the project is officially dead.
Exam Tips: Answering Questions on Authorize Project Closure When answering Practitioner questions regarding this specific activity, apply the following logic:
Tip 1: Differentiate Roles (PM vs. Board) Be very careful with the distinction between Closing a Project (CP) and Directing a Project (DP). If the question asks who prepares the End Project Report, it is the Project Manager (CP). If the question asks who reviews and approves it, it is the Project Board (DP - Authorize Project Closure).
Tip 2: The Premature Closure Trap In the exam, a scenario might describe a project being cancelled early. The Project Board still performs Authorize Project Closure. Do not skip this step just because the project failed or was stopped. The process is the same, though the handover may involve archiving unfinished products rather than releasing a finished solution.
Tip 3: Sequence of Events Remember that the draft project closure notification is prepared by the PM, but the actual issuance of the notification happens in this activity by the Board. If a question asks about the final action before the project is history, it is the Board sending this notification.
Tip 4: Benefits Review Plan Ensure that the Benefits Management Approach (formerly Benefits Review Plan) has been updated to cover post-project benefit reviews. The Board must verify this exists before authorizing closure.