In the PRINCE2 7 'Initiating a Project' process, the activity 'Set Up Project Controls' is pivotal for establishing the governance mechanisms required to monitor progress and maintain the project's viability. The primary objective is to define how the project will be managed, ensuring the Project B…In the PRINCE2 7 'Initiating a Project' process, the activity 'Set Up Project Controls' is pivotal for establishing the governance mechanisms required to monitor progress and maintain the project's viability. The primary objective is to define how the project will be managed, ensuring the Project Board can exercise 'management by exception' without being overloaded by daily details.
During this activity, the Project Manager defines the specific level of control required, balancing the need for oversight with the administrative effort. Key elements involve establishing tolerances for the seven performance targets: time, cost, quality, scope, risk, benefit, and sustainability. These tolerances set the boundaries of authority for the Project Manager; if these are forecast to be exceeded, an exception must be escalated to the Project Board.
Furthermore, this activity establishes the reporting and decision-making structures. This includes determining the number and length of management stages based on the planning horizon and risk profile. It also defines the frequency and format of communication flows, such as Highlight Reports (from Project Manager to Board) and Checkpoint Reports (from Team Manager to Project Manager).
The Project Manager also confirms mechanisms for issue and change control to handle deviations or requests formally. These controls are integrated into the Project Plan and summarized in the Project Initiation Documentation (PID). Effectively setting up these controls ensures all stakeholders understand their decision-making authority, how performance is tracked, and the specific triggers that require senior management intervention, thereby securing a controlled environment for project delivery.
Set Up Project Controls (PRINCE2 Practitioner v7)
What is 'Set Up Project Controls'? In the PRINCE2 method, 'Set Up Project Controls' is a critical activity within the Initiating a Project process. While the previous process (Starting a Project) established whether the project was generally viable, this activity defines specifically how the Project Board and Project Manager will manage the work, monitor progress, and handle exceptions. It transforms the broad outline into a controlled environment ready for delivery.
Why is it Important? Without defined controls, a project relies on luck rather than management. This activity is vital because: 1. It operationalizes the principle of Management by Exception by setting specific Tolerances. 2. It ensures the Project Board receives the right amount of information (Assurance) without being buried in detail. 3. It defines the specific 'checkpoints' (Management Stages) where the viability of the project is reassessed.
How it Works The Project Manager performs this activity, usually in consultation with the Project Board and Project Assurance. The key steps include: - Defining Management Stages: Deciding how many stages are needed and how long they should be based on risk, planning horizons, and key decision points. - Setting Tolerances: Establishing the allowable variance for Time, Cost, Quality, Scope, Risk, and Benefit before an escalation to the Project Board is required. - Establishing Reporting Mechanisms: Deciding the format and frequency of Highlight Reports (from PM to Board) and Checkpoint Reports (from Team to PM). - Problem Handling: Confirming how Issues and Risks will be escalated in practice.
Exam Tips: Answering Questions on Set Up Project Controls When facing scenario-based questions in the Practitioner exam, apply the following logic:
1. The 'Who' Rule: Remember that the Project Manager proposes the controls, but the Project Board must agree to them. If a question suggests the Corporate/Programme management dictates all controls without project-level tailoring, it is likely a 'False' statement or a negative action.
2. Distinguish Control Levels: Be careful not to confuse Project Board controls (e.g., End Stage Reports, Exception Reports) with Delivery/Team controls (e.g., Checkpoint Reports). Questions often try to trick you by mixing these up. Always check who is reporting to whom.
3. Tailoring is Key: In PRINCE2 v7, tailoring is paramount. A correct answer often involves adjusting the number of stages or the strictness of reporting to suit the project's scale and risk profile. Rigid application of complex controls on a simple project is incorrect.
4. Link to the PID: Project controls are summarized in the Project Initiation Documentation (PID). If a question asks where the controls are defined, look for the PID or the specific management approaches (Risk, Quality, Issue, Change) that feed into it.