In the context of the PRINCE2 7 Managing a Stage Boundary (SB) process, the activity 'Update Project Plan' is critical for ensuring the project remains viable and controlled. The Project Plan is a living document that acts as the baseline for the project's performance targets (time, cost, scope, qu…In the context of the PRINCE2 7 Managing a Stage Boundary (SB) process, the activity 'Update Project Plan' is critical for ensuring the project remains viable and controlled. The Project Plan is a living document that acts as the baseline for the project's performance targets (time, cost, scope, quality, risk, and benefit). At the end of a management stage, the Project Manager must update this plan to reflect the current reality before seeking approval to proceed.
This activity involves two primary adjustments: recording actuals and revising forecasts. First, the Project Manager updates the plan with the actual progress made during the stage just finishing. This includes the actual costs incurred, the actual duration taken, and the specific products completed. This converts the current stage's estimates into historical data.
Second, the Project Manager integrates the newly created Next Stage Plan (or Exception Plan) into the overall Project Plan. Since the detailed planning for the next stage often provides greater clarity than the high-level estimates made at the project's initiation, the forecast for the remainder of the project must be recalculated. This includes adjusting the schedule for subsequent stages, revising the overall project completion date, and updating the total cost estimate.
In PRINCE2 7, this update also involves reviewing sustainability targets and data management requirements to ensure they align with the revised timeline and resources. The updated Project Plan is then presented to the Project Board as part of the End Stage Report. It allows the Board to compare the current status against the original Performance Measurement Baseline. Importantly, the plan is not formally 'baselined' until the Project Board approves the next stage in the Directing a Project process.
Update Project Plan - Managing a Stage Boundary (PRINCE2 v7)
What is 'Update Project Plan'? In the PRINCE2 method, specifically within the Managing a Stage Boundary (SB) process, updating the Project Plan is a critical activity performed by the Project Manager. It involves taking the actual progress, costs, and time utilized in the stage currently finishing and combining them with the forecasts from the newly created plan for the next stage. This creates an up-to-date picture of the project's total duration, cost, and resource requirements.
Why is it Important? The Project Board needs a current and realistic view of the project to decide whether to authorize the next stage. The Project Plan acts as the baseline against which overall progress is monitored. Without updating it, the Business Case cannot be accurately verified regarding viability, achievability, and desirability, and the Project Board would be making investment decisions based on obsolete data.
How it Works The process generally follows these steps: 1. Incorporate Actuals: The Project Manager records the actual cost, time, and products delivered during the current stage into the Project Plan. 2. Add Forecasts: The details from the Next Stage Plan (which is created in a parallel activity within this process) are summarized and added to the Project Plan to replace the previous estimates for that timeframe. 3. Revise Future Estimates: Any changes in external factors, risks, issues, or lessons learned that impact the remainder of the project are adjusted in the plan. 4. Check Tolerances: The updated plan is compared against the overall project tolerances. If tolerances are forecast to be exceeded, an Exception Report may be required alongside the plan.
Exam Tips: Answering Questions on Update Project Plan When facing PRINCE2 Practitioner exam questions regarding this activity, apply the following logic:
• Differentiation: Distinguish clearly between the Stage Plan (detailed, short-term) and the Project Plan (high-level, full lifecycle). This activity is about updating the high-level view based on the detailed work done planning the next stage. • The 'Why': If a question asks why this update is necessary, look for answers related to providing the Project Board with adequate information for the End Stage Assessment or verifying the continued validity of the Business Case. • Inputs and Outputs: The primary input is the Stage Plan for the next stage (for forecast data) and the Stage Plan for the current stage (for actuals). The output is the updated Project Plan. • Scenario Application: In scenario questions, ensure the Project Manager is not rewriting the Project Plan from scratch, but rather refining it. If the scenario suggests the project has changed drastically, the answer may involve the Board forcing a premature close, but the 'Update Project Plan' activity itself is strictly about reflecting reality to allow for a Go/No-Go decision.