Key Concepts
3%of exam
Principles
8%of exam
People
14%of exam
Practices
60%of exam
Processes
15%of exam
Quick Facts
- Exam
- PRINCE2 7 Foundation
- Body
- PeopleCert (AXELOS)
- Questions
- 60 multiple choice
- Time
- 60 minutes
- Pass
- 36/60 = 60%
- Marking
- 1 mark; no negatives
- Book
- Closed book
- Question styles
- Standard, missing word, list
- Bloom levels
- 1 and 2
- Extra time
- 75 min if non-native
- Prerequisite
- None
- Renewal
- 3 years; CPD or retake
- Version
- PRINCE2 7 (2023)
Performance Aspects
Benefits Cost Time Quality Scope Sustainability Risk
Practice vs Process
Practice
- Ongoing throughout project
- Seven, renamed from themes
- Business case, risk, progress
Process
- Step-by-step activities
- Seven, in time order
- Starting up, initiating, closing
Continuous versus sequential
Exam Mechanics
- Standard question
- Four options, one correct
- Missing word
- Choose word completing sentence
- List question
- Pick two correct statements
- Negative question
- Used only exceptionally
- Bloom level 1
- Recall facts
- Bloom level 2
- Show understanding
- Marks needed
- 36 of 6060%
Five Integrated Elements
- Principles
- Seven guiding obligations
- People
- New fifth elementv7
- Practices
- Renamed from themesv7
- Processes
- Seven step-by-step stages
- Project context
- Where PRINCE2 is applied
- Version 6 count
- Four elements, no people
Seven Performance Aspects
- Benefits
- Measurable improvement from outcome
- Cost
- Permitted overspend or underspend
- Time
- Permitted early or late
- Quality
- Variation from acceptance criteria
- Scope
- Products in or out
- Sustainability
- Environmental, social, economic impactNEW
- Risk
- Threat and opportunity exposure
Delivery Approaches + Definitions
- Linear-sequential
- Plan fully, then build
- Iterative-incremental
- Repeated cycles add features
- Hybrid
- Mixes both approaches
- Project
- Temporary, creates business change
- Project management
- Plan, delegate, monitor, control
- Management product
- Used to run project
- Specialist product
- What the project delivers
Seven Principles
Business Lessons Roles Stages Exception Products Tailor
Seven Principles
- Ensure continued business justification
- Desirable, viable, achievable throughout
- Learn from experience
- Lessons sought, recorded, applied
- Define roles, responsibilities and relationships
- Relationships added in v7v7
- Manage by stages
- Authorize one stage ahead
- Manage by exception
- Escalate only tolerance breaches
- Focus on products
- Agree product descriptions first
- Tailor to suit the project
- Adapt to project context
Tailoring Rules
- Can tailor
- Processes, terminology, products, roles
- Cannot tailor
- The seven principles
- Recorded in
- PID tailoring section
- Recommends tailoring
- Project manager
- Approves tailoring
- Project board
- Drivers
- Size, complexity, importance, environment
Change Management vs Change Control
Change management
- People element
- Adoption of outputs
- Change management approach
Change control
- Issues practice
- Protects the baseline
- Issue management approach
People adopt versus baselines protected
People Element Concepts
- Organizational ecosystem
- Wider organization around project
- Project ecosystem
- People delivering the project
- Change management
- Moving people to target
- Stakeholder
- Affects or is affected
- Culture
- Shared values and behaviours
- Collaboration
- Working together toward objectives
- Co-creation
- Stakeholders build solution together
- Leadership
- Influence, motivate, set direction
- Management
- Plan, delegate, monitor, control
People Management Products
- Change management approach
- How adoption is achieved
- Communication management approach
- Means and frequency defined
- Both stored in
- The PID
- Effective team
- Capability, diversity, cultural intelligence
- Stakeholder engagement
- Planned two-way communication
Seven Practices
Big Old Projects Quickly Reveal Interesting Progress
Project Brief vs PID
Project brief
- Created in starting up
- Outline business case
- Not a baseline
PID
- Assembled in initiating
- Full business case
- Baseline for the project
Proposal versus baseline
Which Practice Applies?
- Is it still worthwhile→Business case(Desirable, viable, achievable)
- Who is accountable→Organizing(Roles and interests)
- What, when, how much→Plans(Product-based planning)
- Will product be acceptable→Quality(Acceptance criteria)
- Uncertain future event→Risk(Threat or opportunity)
- Something has already happened→Issues(Change control included)
- Are we on track→Progress(Tolerance and exception)
- People must adopt change→People element(Not a practice)
Seven Practices
- Business case
- Judge desirable, viable, achievable
- Organizing
- Accountability, roles, relationships
- Plans
- What, who, how, when
- Quality
- Meet the user requirements
- Risk
- Manage threats and opportunities
- Issues
- Assess issues, control changes
- Progress
- Monitor, forecast, control deviation
Project Log Records
Daily Lessons, Issue Risk Quality Product
Issue vs Exception
Issue
- Something has happened
- Logged in issue register
- May need no change
Exception
- Tolerance forecast to breach
- Triggers exception report
- Escalated one level up
Event versus tolerance breach
Which Management Product?
- Pre-initiation summary→Project brief(Outline business case)
- Baseline after initiation→PID(Approved by board)
- Regular team update→Checkpoint report(Time-driven)
- Board progress update→Highlight report(Time-driven)
- Tolerance forecast breach→Exception report(Event-driven)
- Informal note→Daily log(Project manager)
- Formal change request→Issue register(Plus issue report)
- Quality event scheduled→Quality register(Inside project log)
PID Management Approaches
- Benefits management
- How benefits are measured
- Sustainability management
- How sustainability targets met
- Commercial management
- Supplier and contract handling
- Quality management
- Standards, tools, responsibilities
- Risk management
- How risk is handled
- Issue management
- How issues, changes handled
- Change management
- How people adopt outputs
- Communication management
- Means and frequency
- Digital and data management
- Data, tools, security rulesv7
Risk Technique
Identify Assess Plan Implement Communicate
Risk Appetite vs Tolerance
Risk appetite
- Willingness to take risk
- Set by the business
- Qualitative attitude
Risk tolerance
- Measurable threshold
- Triggers escalation
- Set per performance aspect
Attitude versus measurable limit
Who Decides?
- Within work package tolerance→Team manager(No escalation)
- Within stage tolerance→Project manager(Corrective action)
- Stage tolerance forecast breached→Project board(Exception report)
- Project tolerance breached→Business layer(Beyond board authority)
- Request for change→Change authority(Board may delegate)
- Business case no longer viable→Project board(May close early)
Project Log Records
- Project log
- Single repository for recordsv7
- Daily log
- Informal notes and actions
- Lessons log
- Lessons captured and applied
- Issue register
- Formally managed issues
- Risk register
- Identified threats and opportunities
- Quality register
- Planned and actual quality
- Product register
- Product status and versionsv7
Issue Technique
Capture Assess Recommend Decide Implement
Work Package vs Stage Plan
Work package
- Agreed with team manager
- Covers specific products
- Carries its own tolerances
Stage plan
- Approved by project board
- Covers the whole stage
- Baseline for project manager
Delegated work versus stage baseline
Reports: Who Writes Them
- Checkpoint report
- Team manager to project manager
- Highlight report
- Project manager to board
- End stage report
- Project manager at boundary
- End project report
- Project manager at closure
- Exception report
- Project manager forecasts breach
- Lessons report
- Shares lessons with organization
- Issue report
- Describes a formal issue
Output vs Outcome vs Benefit
Output
- The deliverable itself
- Built by the project
- Handed over at closure
Outcome
- Result of using output
- Changed way of working
- Leads to a benefit
Benefit is measurable improvement
Roles + Three Interests
- Executive
- Business interest; owns business case
- Senior user
- User interest; owns benefits
- Senior supplier
- Supplier interest; provides resources
- Project board
- Executive, senior user, supplier
- Project manager
- Daily management; one person
- Team manager
- Delivers agreed work packages
- Project assurance
- Independent check for board
- Project support
- Administration, tools, records
- Change authority
- Decides requests for change
Quality Assurance vs Control
Quality assurance
- Independent of the project
- Checks the process
- Organizational responsibility
Quality control
- Inside the project
- Checks the products
- Tests, reviews, inspections
Process versus product
Four Organizational Levels
- Business layer
- Commissions project; sets tolerances
- Directing
- Project board authorizes stages
- Managing
- Project manager runs stage
- Delivering
- Team manager builds products
- Mandate comes from
- Business layer
- Appoints the executive
- Business layer
Project Assurance vs Support
Project assurance
- Independent of project manager
- Project board accountable
- Business, user, supplier views
Project support
- Serves the project manager
- Administration and tools
- Optional role
Independent check versus administration
Plans + Planning Technique
- Project plan
- Board baseline for project
- Stage plan
- Detailed plan per stage
- Team plan
- Optional, for work packages
- Exception plan
- Replaces plan after breach
- Planning horizon
- How far detail is realistic
- Project product description
- Defines what project delivers
- Product breakdown structure
- Hierarchy of required products
- Product flow diagram
- Sequence and dependencies
- Work package description
- Agreed work for team
- Minimum stages
- Initiation plus one delivery
Event-driven vs Time-driven
Event-driven
- Triggered by an occurrence
- Stage end or exception
- End stage report
Time-driven
- At set intervals
- Weekly or monthly
- Checkpoint and highlight reports
Trigger versus timetable
Quality Terms
- User quality expectations
- What the user expects
- Acceptance criteria
- Prioritized measurable acceptance list
- Quality specifications
- Measurable detail per product
- Quality planning
- Define criteria and methods
- Quality control
- Test, inspect, review products
- Quality assurance
- Independent of project team
- Quality register
- Diary of quality events
- Product description
- Purpose, composition, quality criteria
Risk Terms
- Risk
- Uncertain event affecting objectives
- Threat
- Risk with negative impact
- Opportunity
- Risk with positive impact
- Risk appetite
- Willingness to take risk
- Risk tolerance
- Measurable escalation threshold
- Risk budget
- Money for risk responses
- Risk exposure
- Combined effect of risks
- Risk owner
- Manages and monitors risk
- Risk action owner
- Carries out the response
- Cause, event, effect
- How risks are described
Risk Response Types
- Avoid
- Remove the threat entirely
- Exploit
- Make opportunity happen
- Reduce
- Lower probability or impact
- Enhance
- Raise probability or impact
- Transfer
- Move impact to another
- Share
- Split gain and pain
- Accept
- Take no action now
- Prepare contingent plans
- Act only if triggered
Issue Types + Change
- Request for change
- Proposal to alter baseline
- Off-specification
- Product misses quality specification
- Problem
- Immediate negative impact
- Concern
- Timing and impact unassessed
- Business opportunity
- Unexpected positive possibility
- Project baseline
- Approved versions under control
- Change budget
- Funds approved changes
- Change authority
- Board or delegated decider
Progress Controls
- Tolerance
- Permitted deviation before escalation
- Exception
- Forecast breach of tolerance
- Forecast
- Projected outcome versus plan
- Time-driven control
- Happens at set intervals
- Event-driven control
- Triggered by an event
- Tolerance areas
- The seven performance aspects
- Escalation route
- Up one management level
Process Order
SU DP IP CS MP SB CP
Which Process Applies?
- Mandate just received→Starting up a project(Pre-project)
- Board must authorize→Directing a project(Runs throughout)
- Baseline the project→Initiating a project(Produces the PID)
- Daily stage work→Controlling a stage(Project manager)
- Team is building products→Managing product delivery(Team manager)
- Stage nearly finished→Managing a stage boundary(Next stage plan)
- Tolerance forecast breached→Managing a stage boundary(Exception plan)
- Products accepted→Closing a project(End project report)
Seven Processes: Purpose
- Starting up a project
- Check project is worthwhile
- Directing a project
- Board decides and controls
- Initiating a project
- Build solid project foundations
- Controlling a stage
- Assign, monitor, correct work
- Managing product delivery
- Team builds agreed products
- Managing a stage boundary
- Plan next stage, report
- Closing a project
- Confirm acceptance, hand over
Process Triggers + Outputs
- Project mandate
- Triggers starting up
- Project brief
- Output of starting up
- Initiation stage plan
- Approved before initiating
- PID
- Output of initiating
- Work package
- Controlling stage to delivery
- Exception report
- Board may request replan
- End stage report
- Output of stage boundary
- End project report
- Output of closing
Common Traps
Practices, not themes
Version 7 says practices ≠ Version 6 said themes
Five elements, not four
Version 7 adds people ≠ Version 6 had four
Seven aspects, not six
Version 7 adds sustainability ≠ Version 6 had six
Brief is not PID
Brief precedes initiation ≠ PID baselines the project
Issue is not exception
Issue already happened ≠ Exception is forecast breach
Appetite is not tolerance
Appetite is willingness ≠ Tolerance is measurable limit
Assurance is not support
Assurance checks independently ≠ Support administers for manager
Registers sit in log
Version 7 uses project log ≠ Version 6 kept them separate
Pass mark is 60%
Version 7 needs 36 ≠ Version 6 needed 33
Adoption is not control
Change management moves people ≠ Change control protects baselines
Last Minute
- 1.60 questions; 60 minutes; 36 pass
- 2.Closed book; no negative marking
- 3.Practices = 60% of exam
- 4.People = 14%; processes = 15%
- 5.Practices not themes (version 7)
- 6.Elements = 5; aspects = 7
- 7.Sustainability = seventh performance aspect
- 8.Project log holds six records
- 9.Brief = pre-project; PID = baseline
- 10.Executive owns the business case
- 11.Senior user owns the benefits
- 12.Tolerance = limit; exception = breach
- 13.QA independent; QC tests products
- 14.Manage by stages: minimum two
- 15.Tailor everything except the principles
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