13.1 Managing a Stage Boundary
Key Takeaways
- Managing a Stage Boundary is performed by the Project Manager at the end of every management stage except the final one, which is closed by the Closing a Project process.
- Its purpose is to give the Project Board the information it needs to decide whether to authorise the next stage: an End Stage Report, an updated Project Plan, an updated Business Case, and the next Stage Plan.
- If the stage is forecast to breach its tolerances, the PM produces an Exception Plan for board approval rather than simply reporting stage end.
- Key outputs are the End Stage Report, the next Stage Plan, the updated Project Plan and PID, and the request to authorise the next stage.
When the Process Runs
Managing a Stage Boundary (SB) is performed by the Project Manager at the end of each management stage — with one important exception. It is not performed at the end of the final stage, because the final stage is closed by the Closing a Project process instead. It also does not run when a project is being prematurely closed: in that situation the PM moves straight into the premature-closure path within Closing a Project.
The process exists because PRINCE2's manage by stages principle demands that the Project Board re-authorises the project at every stage boundary. A stage is the period for which the board has delegated authority to the PM; once that period ends, the board must look again at the Business Case, the plan, and the risks before committing further investment.
Purpose and Objectives
The purpose of Managing a Stage Boundary is to:
- Provide the board with the information it needs to decide whether to authorise the next stage.
- Confirm that the Business Case remains viable and that the project is still worth doing.
- Update the Project Plan so that it reflects actual progress and the latest forecast for the remainder of the project.
- Update the PID where any baseline has changed.
- Review and update risks and the Risk Management Approach.
In short, the process refreshes the project's baselines and its justification, and it packages them for the board's decision.
Activities and Their Outputs
| Activity | What the PM does | Primary output |
|---|---|---|
| Plan the next stage | Draft the next Stage Plan with its tolerances, dependencies, and resource needs | Next Stage Plan |
| Update the Project Plan | Roll actuals into the Project Plan and re-forecast the remainder | Updated Project Plan |
| Update the Business Case | Re-examine costs, benefits, and timescales; update the Benefits Management Approach | Updated Business Case |
| Review and update risks | Re-assess the risk register and refresh the Risk Management Approach | Updated Risk Register |
| Update the PID | Record any changes to scope, roles, controls, or approaches | Updated PID |
| Report stage end | Compile the End Stage Report and request authorisation | End Stage Report |
| Produce an Exception Plan (if needed) | If the stage is forecast to breach tolerance, propose an Exception Plan instead | Exception Plan |
End Stage Report vs Exception Plan
The End Stage Report is the normal boundary product. It summarises what the stage set out to do, what it actually achieved, how the Project Plan and Business Case have moved, the key risks and issues, and the PM's recommendation for the next stage. The board uses it, alongside the next Stage Plan and the updated Business Case, to decide whether to authorise the next stage.
An Exception Plan is a different beast. If, during the stage or at its boundary, the PM forecasts that the stage will breach its tolerances, the PM first raises an Exception Report to the board. The board can then ask the PM to produce an Exception Plan — a replacement plan for the remaining work that brings the project back within (or proposes revised) tolerances. Where an Exception Plan is produced for the remainder of the current stage, it is submitted for board approval instead of a routine End Stage Report and next Stage Plan.
What the board reviews at the boundary
- The End Stage Report (actuals versus plan for the stage just completed).
- The updated Business Case — is the project still justified?
- The updated Project Plan — is the overall forecast still acceptable?
- The next Stage Plan — is the proposed next chunk of work worth authorising, with tolerances the board is content to delegate?
- The updated risk picture and any PID changes.
The board's decision options are straightforward: authorise the next stage, authorise the next stage with conditions, defer the decision pending more information, or stop the project (triggering premature closure).
Exam-relevant distinctions
- Who performs it? The Project Manager — not the Project Board. The board receives and decides on the outputs.
- When is it NOT performed? At the end of the final stage (Closing a Project takes over) and when the project is being prematurely closed.
- What is the difference between an End Stage Report and an Exception Plan? The End Stage Report reports a completed stage and proposes the next one; an Exception Plan is a recovery plan produced when tolerances are forecast to be breached.
- What does the PM update at a boundary? The Project Plan, the Business Case (and Benefits Management Approach), the Risk Management Approach, and the PID where anything has changed.
At the end of a management stage, the Project Manager assembles the End Stage Report and the next Stage Plan. Which body uses these to decide whether to authorise the next stage?
Mid-way through a stage, the Project Manager forecasts that stage costs will exceed the stage cost tolerance. What should the PM produce for the Project Board, instead of waiting for the normal stage end?