In the context of PRINCE2 7, the Directing a Project (DP) process serves as the governance layer where the Project Board exercises overall accountability without managing day-to-day activities. This process relies heavily on the principle of 'manage by exception.' The Project Board delegates author…In the context of PRINCE2 7, the Directing a Project (DP) process serves as the governance layer where the Project Board exercises overall accountability without managing day-to-day activities. This process relies heavily on the principle of 'manage by exception.' The Project Board delegates authority to the Project Manager for each stage, stepping in to make decisions only at specific boundaries or when issues exceed agreed tolerances.
Project Board decision-making within DP revolves around five key activities: authorizing initiation, authorizing the project, authorizing a stage or exception plan, giving ad hoc direction, and authorizing project closure. At every decision point, the primary criterion is the continued business justification. The Board must rigorously assess whether the project remains desirable, viable, and achievable based on the Business Case.
Specifically, during 'Authorizing a Stage or Exception Plan,' the Board reviews the End Stage Report to validate progress and approves the plan for the next stage. If the project deviates beyond tolerances (time, cost, risk, etc.), the Project Manager submits an Exception Report. The Board must then decide whether to close the project prematurely, request more data, or approve an Exception Plan to replace the current plan.
'Giving Ad Hoc Direction' facilitates ongoing decision-making regarding escalated risks, issues, and changes that are beyond the Project Manager's authority. Finally, 'Authorizing Project Closure' requires the Board to review the End Project Report and Benefits Management Account, ensuring the project product is accepted and operational before formally disbanding the project management team.
Ultimately, effective decision-making in the DP process ensures the project remains aligned with corporate strategy and prevents resources from being wasted on initiatives that no longer provide value.
Directing a Project: Project Board Decision Making
What is Project Board Decision Making? In PRINCE2, the Project Board does not manage the project on a day-to-day basis; that is the role of the Project Manager. Instead, the Project Board utilizes the Directing a Project (DP) process to exercise control through 'Management by Exception'. Project Board decision-making is the mechanism by which the senior management team reviews progress, assesses viability, and commits resources for the next phase of work.
Why is it Important? Decision making at this level is crucial because it acts as a gatekeeping mechanism. It ensures that: 1. The project remains aligned with corporate strategy and business objectives. 2. The Business Case remains desirable, viable, and achievable. 3. Resources are not wasted on a project that is no longer justified. 4. Risks are kept under control and within the risk appetite.
How it Works The Project Board makes decisions at specific points in the project lifecycle, triggered by reports provided by the Project Manager. The primary activities involving decision making are:
1. Authorize Initiation: Deciding if the project idea is worth the effort of creating a detailed plan (Project Initiation Documentation). 2. Authorize the Project: Reviewing the PID and Business Case to give the green light for the project to begin delivery. 3. Authorize a Stage or Exception Plan: This is the recurring loop. At the end of every management stage, the Board reviews the End Stage Report and the Next Stage Plan. They decide whether to commit resources for the next stage based on the continued justification of the project. 4. Give Ad-hoc Direction: Making decisions when the Project Manager escalates issues or risks via an Exception Report or Issue Report. 5. Authorize Project Closure: confirming the project has delivered its products and benefits can be realized.
Exam Tips: Answering Questions on Project Board Decision Making When answering Practitioner questions regarding this topic, apply the following logic:
1. Identify the Trigger: Ask yourself, 'Where are we in the timeline?' If the Project Manager has just produced an Exception Plan, the Board must decide to approve it or stop the project. If it is the end of a stage, they are looking at an End Stage Report. 2. Role Specifics: Differentiate who drives the decision based on the interest: - Executive: Focuses on Value for Money and the Business Case. - Senior User: Focuses on whether the outputs will meet user needs and realize benefits. - Senior Supplier: Focuses on resource availability and technical feasibility. 3. The 'Don't Do' List: The Project Board should not be rewriting plans or drafting reports. They review, approve, or reject based on the information provided by the PM. 4. Scenario Application: In v7 exams, questions are scenario-based. If the scenario states that 'costs have risen,' look for a decision related to the Executive and the Business Case. If the scenario implies a delay affects the launch date, look for a decision involving the Senior User regarding the impact on benefits. 5. Management by Exception: Remember, if the project is within tolerance, the Board stays silent. Decisions are explicitly required only at stage boundaries or when tolerances are forecast to be exceeded.