Organizing Practice

The correct answer is: Business interest, user interest, and supplier interest.

PRINCE2 7 emphasizes that successful projects require the alignment of three key interests:

1. Business interest - represents those who commission the project and will ultimately benefit from its outcomes. They are concerned with whether the project delivers value for money and strategic benefits.

2. User interest - represents those who will use or be affected by the project's outputs and outcomes. They are concerned with usability, functionality, and how the solution meets their needs.

3. Supplier interest - represents those who provide the resources, skills, and expertise to deliver the project. They are concerned with feasibility, practicality, and delivery constraints.

These three interests form the foundation of the project management team structure in PRINCE2 and must be balanced to ensure both value (meeting business and user needs) and viability (achievable delivery by suppliers).

The other options are incorrect because:

• Operational and technical interests, while important considerations, are not the three primary interests defined in PRINCE2 methodology.

• Strategic, delivery, and stakeholder interests are concepts that overlap with or are subsets of the three primary interests, but they don't represent the distinct trinity of perspectives that PRINCE2 requires to be represented and balanced.

• Resource interest is not recognized as one of the three distinct interest groups in PRINCE2, as resources are part of the supplier interest's concerns.

The correct answer is Business, User, and Supplier.

In PRINCE2 7, these three perspectives form the foundation of effective project governance and are essential for ensuring successful project outcomes:

• Business perspective: Represents those who will judge whether the project represents value for money and a worthwhile investment. They are concerned with the business justification and ensuring the project remains viable.

• User perspective: Represents those who will use the project's products or outputs. They specify the requirements and ensure the products will deliver the expected benefits when used in operations.

• Supplier perspective: Represents those who will provide the resources, expertise, and skills to create the project's products. They are concerned with the feasibility and delivery of the solution.

These three perspectives must be represented throughout the project to ensure value delivery, capability provision, and justified investment. This is a fundamental principle in PRINCE2's approach to project management and is embedded in the project management team structure.

The other options, while they may sound plausible, do not represent the formally defined three perspectives in PRINCE2 7. The framework specifically uses Business, User, and Supplier as the three distinct interests that must be represented to ensure project success and proper governance. These perspectives help ensure that all critical viewpoints are considered in decision-making throughout the project lifecycle.

The primary purpose of organizing deliverables hierarchically in a Work Breakdown Structure (WBS) is to subdivide major project deliverables into progressively smaller and more manageable components.

This is the correct answer because:

A Work Breakdown Structure is a fundamental planning tool in project management that decomposes the project scope into a hierarchical structure. The key principle is to break down large, complex deliverables into smaller, more manageable pieces that can be:
- Estimated more accurately
- Assigned to specific resources
- Monitored and controlled effectively
- Understood clearly by all stakeholders

The WBS focuses purely on WHAT needs to be delivered (deliverables), not HOW or WHEN. The hierarchy allows for progressive elaboration, where each level provides more detail than the level above it, making the project scope tangible and workable.

Why the other answers are incorrect:

The second option adds unnecessary constraints about organizational reporting cycles and quarterly financial forecasting requirements. While these may be considerations in some projects, they are not the PRIMARY purpose of a WBS. The WBS is fundamentally about scope decomposition, not alignment with organizational administrative cycles.

The third option confuses the WBS with a project schedule. A WBS is NOT organized chronologically or by sequence of activities. It is deliverable-oriented, not activity-oriented or time-oriented. The chronological sequence comes later in scheduling activities, not in defining the WBS.

The fourth option suggests organizing by functional expertise or departmental responsibilities. While the WBS might eventually inform resource assignment, its primary purpose is not to reflect organizational structure or team member expertise. It is purely focused on decomposing the product scope into manageable deliverable components, regardless of who will produce them.