In the context of PRINCE2 7, the Project Management Team (PMT) structure is a temporary organizational hierarchy established by the Organizing practice to define accountability and responsibility. Its primary purpose is to ensure that the right people are involved in decision-making and that there is a clear separation between directing, managing, and delivering the project.

The structure operates on four levels:
1. **Commissioning:** Corporate, Programme Management, or the Customer sits above the PMT, providing the project mandate and budget.
2. **Directing:** The Project Board is accountable for the project's success. It represents three interests: Business (Executive), User (Senior User), and Supplier (Senior Supplier). The Executive is ultimately accountable for the Business Case.
3. **Managing:** The Project Manager is responsible for day-to-day management, ensuring the project delivers products within agreed tolerances.
4. **Delivering:** The Team Manager ensures the production of products according to quality, time, and cost requirements.

Supporting roles include **Project Assurance** (monitoring performance independently of the Project Manager), **Change Authority** (delegated authority to approve changes), and **Project Support** (administrative assistance).

For a Practitioner, the key is **tailoring**. The structure must adapt to the project's scale, complexity, and risk. While roles can be shared or combined (e.g., the Project Manager performing Project Support duties), specific rules prevent conflicts of interest—most notably, the Executive and Project Manager cannot be the same individual to preserve the distinction between direction and management. Furthermore, while tasks can be delegated, accountability cannot; single individuals should hold specific roles to ensure decisive leadership.

In PRINCE2 7, within the Organizing practice, role descriptions are fundamental artifacts used to define the project management team structure. Their primary purpose is to ensure that every individual involved in the project understands what is expected of them, to whom they report, and who reports to them. This clarity prevents the duplication of effort, omission of critical tasks, and confusion regarding decision-making authority.

A standard PRINCE2 role description typically includes the role title, the person assigned, the purpose of the role, specific responsibilities, reporting lines (reports to and takes direction from), and the required skills or competencies. Crucially, these descriptions must be agreed upon and confirmed during the initiation stage and included in the Project Initiation Documentation (PID).

PRINCE2 7 emphasizes that roles are not necessarily full-time jobs; they are specific sets of responsibilities. The methodology allows for tailoring: roles can be combined (one person fulfilling multiple roles) or shared (multiple people fulfilling one role), provided that conflicts of interest are avoided. For instance, the Project Manager cannot also perform Project Assurance or be the Executive, as this compromises independent oversight. However, to ensure a single point of accountability, the Executive role specifically should not be shared.

Furthermore, effective role descriptions support the 'People' element central to PRINCE2 7. By clearly defining expectations, the project establishes a framework for effective communication, delegation, and performance management. This ensures that the temporary project organization operates efficiently alongside the permanent business organization, securing the necessary resources and commitment to deliver the project's products within agreed tolerances.

In PRINCE2 7, the Commercial Management Approach is a management product created primarily during the Initiating a Project process to define how the commercial relationship between the customer and the supplier will be managed. This document acknowledges the critical role of supply chains and procurement in modern project delivery, serving as a bridge between legal contracts and day-to-day project management.

The approach outlines the procurement strategy, including the rationale for 'make or buy' decisions, supplier selection criteria, and the specific contract models (e.g., fixed price, time and materials, or agile contracts) to be employed. It establishes the mechanisms for contract management, detailing how supplier performance will be monitored against the project’s requirements, how payments will be triggered, and the protocols for handling contract variations or commercial disputes.

Within the context of the Organizing practice, the Commercial Management Approach ensures that the project management team structure aligns with commercial obligations. It clarifies the roles and responsibilities regarding supplier interaction, ensuring that the interface between the internal project team and external vendors is governed effectively. Furthermore, it defines the allocation of risk between the customer and the supplier, ensuring that the project's Business Case remains viable under the agreed terms.

By integrating these commercial parameters into the Project Initiation Documentation (PID), the approach mitigates risks associated with scope creep, budget overruns, and relationship breakdowns. It provides the Project Board with the assurance that the project can secure necessary resources at the appropriate quality and cost, ensuring that commercial agreements actively facilitate, rather than hinder, the successful delivery of the project's products.

In the context of the PRINCE2 7 Organizing practice, establishing a successful project management team structure relies on representing three primary stakeholder interests: Business, User, and Supplier. These interests form the core of the Project Board and are essential for balanced decision-making.

1. **Business Interest**: This interest validates the 'Why' of the project, focusing on the question: "Is this project value for money?" It is responsible for the Business Case, ensuring the initiative aligns with corporate strategy, is affordable, and remains viable throughout its lifecycle. On the Project Board, the **Executive** represents this interest and holds ultimate accountability for the project's success or failure.

2. **User Interest**: This interest addresses the 'Who' and the 'What,' asking: "Will it work, and will we get the benefits?" It represents those who will utilize the project's outputs to generate benefits or operate them in a business-as-usual environment. They specify the requirements, constraints, and acceptance criteria. On the Project Board, the **Senior User** represents this group, ensuring the outputs are fit for purpose and that the forecasted benefits are realized.

3. **Supplier Interest**: This interest answers the 'How,' asking: "Can it be done?" It represents the providers of the necessary resources, skills, and specific expertise required to create the project's products. They are accountable for the quality of the deliverables and the technical integrity of the solution. The **Senior Supplier** represents this interest on the Project Board.

PRINCE2 mandates that these three interests must be kept in balance. If the Supplier dominates, technical gold-plating may occur; if the User dominates, scope creep is likely; and if the Business dominates, realistic delivery constraints may be ignored. Effective governance requires a unified direction derived from the consensus of these three perspectives.

In PRINCE2 7, the Project Board is the central decision-making body, holding ultimate accountability for the project’s success. It provides unified direction by representing three distinct interests: the Business (Executive), the User (Senior User), and the Supplier (Senior Supplier). The Board operates on the principle of 'Management by Exception,' delegating day-to-day management to the Project Manager while retaining control over high-level decisions.

The responsibilities are divided among specific roles. The **Executive** owns the Business Case and is responsible for value for money, acting as the key decision-maker. The **Senior User** specifies the project requirements, ensures the solution meets operational needs, and is accountable for realizing the benefits. The **Senior Supplier** provides the resources and skills to produce the outputs, ensuring the technical integrity and quality of the solution.

Collectively, the Project Board's duties within the 'Directing a Project' process include authorizing the start of the project and each subsequent stage. They review and approve Stage Plans and Exception Plans, ensuring the project remains viable, desirable, and achievable. They serve as the escalation point for issues that exceed the Project Manager's tolerances. Furthermore, the Board is responsible for Project Assurance—monitoring the project's performance and products independently of the Project Manager to ensure standards are met. Finally, they authorize project closure, confirming that the project has delivered the agreed capabilities and that the handover to business as usual is complete.

In the context of the PRINCE2 7 Organizing practice, the Work Breakdown Structure (WBS) functions as a crucial bridge between product definition and resource management. While PRINCE2 advocates primarily for Product-Based Planning (using a Product Breakdown Structure or PBS to define *what* is delivered), the WBS is utilized to define *how* those products are delivered by breaking them down into specific activities and tasks.

Once the hierarchy of products is established, the WBS decomposes the effort required to create, test, and approve these products into manageable work packages. Within the Organizing practice specifically, the WBS is essential for designing the project management team structure. By visualizing the specific tasks required, the Project Manager can identify the necessary skills, capabilities, and resources needed to execute the work. This informs the creation of Role Descriptions and the delegation of authority.

The WBS allows the Project Manager to group related activities into Work Packages, which are then assigned to Team Managers. This ensures clear accountability and reporting lines within the project organization. Effectively, the PBS defines the scope of the solution, while the WBS defines the scope of the work, ensuring that the organizational structure is aligned with the actual effort required. In PRINCE2 7, which accommodates Agile delivery methods, the WBS can also equate to the decomposition of features into user stories or tasks within a backlog, further aiding the organization of self-organizing teams.