Organization

PRINCE2 Organization Practice Guide: Understanding and Exam Preparation

Why the Organization Practice is Important

The Organization practice is one of the seven fundamental practices within PRINCE2 and is crucial because it defines the project's management structure. It establishes clear roles and responsibilities, ensuring accountability and effective decision-making throughout the project lifecycle. Without a properly defined organization structure, projects can suffer from confusion, delays, and ultimately failure.

What is the Organization Practice?

The Organization practice in PRINCE2 describes the project management team structure and the roles and responsibilities within it. It creates a framework where everyone knows who is responsible for what, who has authority to make decisions, and who needs to be consulted or informed about different aspects of the project.

The practice is built upon the principle of 'Defined Roles and Responsibilities' and ensures that the interests of the business, users, and suppliers are represented in the project management team.

Key Roles in the PRINCE2 Organization Structure:

1. Project Board - The group with overall authority and responsibility for the project, representing the business, user, and supplier interests.

2. Executive - The single individual with ultimate accountability for the project's success and represents the business interests.

3. Senior User - Represents those who will use the project's products.

4. Senior Supplier - Represents those providing resources and expertise to the project.

5. Project Manager - Manages the project day-to-day on behalf of the Project Board.

6. Team Manager - Responsible for producing the products assigned by the Project Manager.

7. Project Assurance - Provides independent monitoring and verification that the project is being conducted properly.

8. Project Support - Provides administrative support to the project.

9. Change Authority - Optional role delegated by the Project Board to approve certain types of changes.

How the Organization Practice Works

The Organization practice operates through:

1. Creation of a management structure tailored to the project's size, complexity, and risk.

2. Clear definition of roles and responsibilities using role descriptions and responsibility assignment matrices (RACI).

3. Establishment of reporting lines and communication channels between roles.

4. Delegation of authority from the Project Board to the Project Manager and potentially to a Change Authority.

5. Regular stakeholder engagement to ensure their interests are represented.

This structure is documented in the Project Initiation Documentation and is reviewed at stage boundaries to ensure it remains appropriate.

Exam Tips: Answering Questions on Organization

1. Know the roles thoroughly - Understand the responsibilities of each role, particularly who makes which decisions and who is accountable for what.

2. Remember role combinations and separations - Understand which roles can be combined (e.g., Executive and Senior User in small projects) and which must remain separate (e.g., Project Assurance and Project Manager).

3. Understand the three project interests - Business, User, and Supplier interests must all be represented on the Project Board.

4. Focus on the Project Board dynamics - The Executive has the final decision but seeks consensus with Senior User and Senior Supplier.

5. Identify organizational scenarios - Practice recognizing appropriate structures for different project contexts (small vs. large, simple vs. complex).

6. Link to other practices - Organization connects with other practices like Business Case (Executive ownership), Progress (reporting structure), and Risk (risk ownership).

7. Apply the practice to scenarios - Exams often present scenarios where you need to determine the appropriate organizational structure or identify who should take specific actions.

8. Pay attention to delegation - Understand what authority can be delegated (e.g., to Change Authority) and what must remain with the Project Board.

9. Focus on accountability vs. responsibility - The Executive is accountable for the project, while the Project Manager is responsible for day-to-day management.

10. Understand Project Assurance - This role provides independent verification and must remain separate from the Project Manager role.

By thoroughly understanding the Organization practice and its application, you'll be well-prepared to answer exam questions that test your knowledge of project structures, roles, responsibilities, and decision-making authorities in PRINCE2 projects.