In the context of PRINCE2 7, the relationship between the Planning Horizon and Management Stages is central to the principle of 'manage by stages'. The **Planning Horizon** refers to the period of time for which it is possible to plan activities, costs, and resource usage with a reasonable degree o…In the context of PRINCE2 7, the relationship between the Planning Horizon and Management Stages is central to the principle of 'manage by stages'. The **Planning Horizon** refers to the period of time for which it is possible to plan activities, costs, and resource usage with a reasonable degree of accuracy. PRINCE2 recognizes that trying to plan the detailed minutiae of a project from start to finish is often wasted effort due to the 'cone of uncertainty,' where accuracy diminishes the further into the future you look.
**Management Stages** are the discrete sections into which the project is divided to handle this uncertainty. The length and number of stages are largely dictated by the planning horizon. A management stage should only last as long as the project team can plan for effectively. For example, a high-risk or highly innovative project may require short stages to allow for frequent review points, whereas a repetitive, low-risk project might have longer stages.
This logic drives the two-tiered planning approach in PRINCE2. The **Project Plan** covers the entire duration but remains at a high level, outlining major products and milestones to support the Business Case. Conversely, the **Stage Plan** is created stage-by-stage (rolling wave planning). Produced before the start of a new stage, the Stage Plan contains the granular detail necessary for day-to-day control, strictly aligned with the current planning horizon. This ensures that the Project Board only authorizes resources and work for a period that can be forecasted confidently, maintaining control and viability.
Mastering Planning Horizon and Stages in PRINCE2 Practitioner v7
Understanding the Planning Horizon In PRINCE2, the planning horizon refers to the period of time for which it is possible to plan with accuracy. It is the distance into the future that you can see clearly enough to create a detailed plan. Beyond this horizon, uncertainty increases, and detailed planning becomes speculative and often wasteful.
Why is it Important? Attempting to plan the entire project in minute detail from the very beginning (often called 'rolling wave planning' or managing by stages) is crucial because: 1. Risk Management: It prevents the commitment of resources to uncertain future tasks. 2. Control: It provides distinct review points (End Stage Assessments) where the Project Board can assess viability. 3. Efficiency: It prevents the waste of effort involved in re-planning detailed schedules that inevitably change.
How it Works: The Relationship with Management Stages PRINCE2 aligns the planning horizon with Management Stages. This works through a two-tiered planning approach:
1. The Project Plan (The Big Picture): This covers the entire project duration but remains at a high level. It outlines the major products, costs, and timescales, acting as the baseline for the Business Case. It shows when stages will occur but does not detail every daily activity for the whole project.
2. The Stage Plan (The Detail): Created only for the immediate upcoming stage. This is produced near the end of the current stage (during the Managing a Stage Boundary process). Because the work is imminent, the planning horizon allows for high accuracy, detailed resource allocation, and precise scheduling.
Determining Stage Length Management stages are not arbitrary. Their length and the planning horizon are determined by: • Risk: High-risk projects usually require shorter stages (shorter planning horizons) to allow for frequent checks. • Key Decision Points: Stages often end when a significant decision is needed or a major deliverable is completed. • Confidence: How far ahead can the team estimate with confidence?
Exam Tips: Answering Questions on Planning Horizon and Stages When facing Practitioner scenarios regarding this topic, look for the following clues and traps:
• The 'Detailed' Trap: If a scenario describes a Project Manager creating a schedule with specific dates and named resources for the entire duration of a multi-year project during initiation, this is a misapplication of the planning horizon. The answer will likely flag this as poor practice. • Management vs. Technical Stages: Remember that Management Stages (commitment of resources/authority) do not have to align perfectly with Technical Stages (phases of work like 'Design' or 'Build'). A management stage can cover multiple technical phases, or one complex technical phase can be split into multiple management stages. • Minimum Requirements: Every PRINCE2 project must have at least two stages: The Initiation Stage (planning) and one delivery stage. • Justification of Breaks: If a question asks why a stage boundary was placed at a specific point, look for answers related to 'Planning Horizon' (we can't plan accurately past this point) or 'Risk' (the board needs a control point before authorizing significantly more spend). • Exception Plans: Remember that if a stage deviates beyond tolerance, the plan to recover (Exception Plan) replaces the remainder of the current Stage Plan and extends to the end of that stage, effectively resetting the immediate planning horizon.