Progress

The progress practice of PRINCE2 is about measuring performance and determining how we’ve performed compared to plans and what we have to do if there are any deviations.

Purpose

The purpose of the progress practice can be summarized in three key objectives:

• To monitor and compare actual achievements with the planned ones throughout the project.
• To forecast the project’s objectives and assess its continued viability.
• To control any deviations that are outside acceptable limits.

Progress is about tracking actual performance against the plan, ensuring the project remains viable, and managing deviations effectively.

Related principles

The following principles have the biggest impact on this practice:

• Manage by stages: The project board uses stages as key control points.
• Ensure continued business justification: Regularly checking that the project is still worthwhile.
• Manage by exception: Use tolerances to manage the level below and escalate when necessary.

Progress and controls

Progress refers to tracking and controlling where the project stands compared to the plan. This applies to the project plan, stage plan, and work packages.

Each layer of management monitors the progress of the layer below it using progress controls. For example:

• The project board monitors the project manager’s progress.
• The project manager monitors the progress of the teams creating the products.

The layer above can:

• Monitor actual progress against the plan.
• Review the plan with forecasts.
• Detect problems and identify risks.
• Initiate corrective actions (with advice from the project board).
• Authorize further work, like progressing to the next stage or issuing a new work package.

Exceptions and tolerances

An exception occurs when it’s forecast that the project will deviate beyond agreed tolerance levels.

Tolerances define the acceptable range of deviation from the plan’s target. For example, a project scheduled to take 6 months might have a ±1 month tolerance. Tolerances can apply to all seven project variables: Time, cost, quality, scope, benefits, risk and sustainability.

The following table shows where tolerances for each variable are defined:

Without tolerances, the project manager would have to escalate every issue to the project board, leading to unnecessary workload for both the project manager and the project board.

Setting tolerances allows the project manager to handle minor issues, only escalating bigger problems and saving time for both parties.

PRINCE2 approach to progress

Progress in PRINCE2 involves comparing actual progress with the project’s performance targets: Time, cost, quality, scope, benefits, and risk.

PRINCE2 ensures control through four key mechanisms:

• Delegating authority: Authority is passed down from one management level to the next (e.g., from project board to project manager).
• Managing by stages: The project is divided into stages, with one stage authorized at a time.
• Progress reports: Time-driven and event-driven reports (e.g., highlight reports) keep stakeholders informed.
• Raising exceptions: When a major issue arises (outside of the tolerance), it is escalated to the next management level.

These controls are defined early in the project and documented in the project initiation documentation under the progress section.

Delegation of authority

The following is how different layers of management delegate and escalate:

• Corporate or program management: Corporate or program management sets the overall project requirements and tolerances. If project tolerances are exceeded, the issue is escalated to them. Remember that the corporate or program management defines the project tolerances.
• The project board: The project board sets the tolerances for each stage. The project manager escalates issues when it’s clear that any project target will exceed its tolerance. If this affects the project’s overall tolerance, the project board escalates the issue to corporate or program management.
• The project manager: The project manager controls the day-to-day activities of the project within the tolerances set by the project board. They also agree on tolerances for each work package.
• The team manager: The team manager has control over a work package and operates within the tolerances set by the project manager.

Raising exceptions

Raising an exception is directly linked to the PRINCE2 principle of manage by exception. An exception occurs when a tolerance is exceeded or is forecast to be exceeded.

The key question here is: “When is an exception raised, and by whom?”

• Team manager: Raises an exception when they forecast going out of the work package tolerance. For example, if the team manager sees that a work package will exceed its agreed-upon budget or timeline, they must raise an exception to inform the project manager.
• Project manager: Raises an exception when the forecast exceeds the stage tolerance. If the project manager identifies that the project is at risk of breaching the stage plan’s tolerances, they must escalate this issue to the project board.
• Project board: Raises an exception when their forecast exceeds the overall project tolerance. This can include major deviations in scope, cost, or timelines that threaten the viability of the entire project.

By clearly defining tolerances and using exceptions, PRINCE2 ensures that issues are flagged appropriately, allowing for better control and timely intervention.

The 3 project board controls

The project board has three main controls available to them to manage the levels below.

• Authorizations: They authorize the start of stages and the closure of the project.
  • Authorize initiation: Approves the start of the initiation stage and the creation of the project initiation documentation.
  • Authorize the project: Approves the project initiation documentation and allows the first delivery stage to begin.
  • Authorize each stage: Occurs after the stage boundary process.
  • Authorize project closure: Approves the project closure once all stages are completed.
• Progress updates: Regular reports from the project manager keep them informed.
  • Highlight report: Regular reports from the project manager provide status updates on the current stage as per the stage plan.
  • End stage report: Reviewed at the end of each delivery stage (except the last one).
  • End project report: Reviewed at the end of the project, before closure is authorized by the project board.
• Exceptions & changes: They receive exception reports and issue reports when necessary.
  • Exception reports: advise the project board that the stage is out of tolerance, allowing the project board to control the next move.
  • Issue reports: provide a way to gather information on an issue (request for change, an off-specification or a problem/concern) and send it to the project board.

The 3 project manager controls

Similar to the project board controls, but at the project manager level, these three controls include:

• Authorizations: The project manager authorizes work packages to team managers during the controlling a stage process) process.
• Progress updates: The project manager receives checkpoint reports from the team manager or team members.
• Exceptions and changes: The project manager reviews project registers and logs to track progress, identify issues, and manage changes via the issue and change control procedure.

Use of management stages for control

Management stages break a project into smaller, more manageable sections, each with decision points to ensure the project stays on track. The project manager is responsible for overseeing the execution of these stages.

Why are management stages important for the project board?

• Review and decision points: The project board has key opportunities to review progress at the end of each stage, ensuring alignment with the project plan.
• Project viability checks: At each stage, the project board assesses whether the project remains viable, in line with the business case and overall objectives.
• Authorization to proceed: After reviewing the project’s progress, the project board can authorize the next stage to begin or decide to halt the project.

By defining tolerances, the project board empowers the project manager with day-to-day authority to manage the stages effectively, allowing for faster decision-making without needing constant oversight.

Minimum stages in a project

At a minimum, every PRINCE2 project must have two stages:

• Initiation stage: This stage defines the project, sets expectations, and prepares the necessary documentation.
• Delivery stage: This stage is where the core work happens, and the product is developed, tested, and delivered.

For a very short project, like one lasting just two days, the first day would be used for the initiation (defining what needs to be done, how it will be done, and by whom). The second day would be dedicated entirely to product creation.

Deciding on the number of stages

The number of stages in a project depends on several factors, and it’s a balancing act. Key considerations include:

• How far ahead should planning go? For example, one IT company may only plan six weeks in advance when developing new applications due to the unpredictability of the work.
• Key decision points: Consider where the major decisions need to be made (e.g., after completing a prototype or reaching a major milestone).
• Risk levels: If a project is similar to a previous one, it’s typically less risky and may require fewer stages.
• Control needs of the project board: If the project board requires significant control, more frequent reviews and stages might be needed. However, for projects with fewer risks or greater confidence, fewer stages may be preferable.

Length of stages

The length of each stage largely depends on the project’s complexity and risk level. More complex projects or those with higher risk may benefit from shorter stages, while simpler projects or those done before may have longer stages.

PRINCE2 offers some points to guide the decision on stage length:

• Planning horizon: Given current knowledge and the project’s dynamics, how far can you safely plan?
• Technical stages: The project’s technical requirements might determine logical points for breaking the project into stages.
• Risk and complexity: If there’s high risk or complexity, you might opt for shorter stages to maintain control and manage uncertainties.

Types of control

In PRINCE2, controls are divided into two key types:

• Event-driven controls are triggered by specific events or milestones in the project. These events can include significant occurrences such as the end of a stage, completion of the project initiation documentation (PID), when a stage goes out of tolerance, or at the close of the project. Examples of documents produced from event-driven controls include the end stage report, exception report, and issue report. Essentially, these controls are initiated when something specific happens within the project.
• Time-driven controls, on the other hand, happen at pre-defined intervals, regardless of specific events. For instance, the project board might agree with the project manager to send a highlight report every two weeks, or the project manager might schedule weekly checkpoint reports with the team manager. Time-driven controls are proactive and don’t rely on particular events occurring before action is taken.

Capturing and reporting lessons

One of the core principles of PRINCE2 is learning from experience. The project team is responsible for actively seeking, recording, and applying lessons throughout the project. The term “sought” emphasizes that everyone involved in the project should make an effort to identify lessons that could improve the project’s performance. Once identified, these lessons are documented in a lessons log, which serves as a valuable record of experiences and improvements.

Lessons can cover various aspects, including communication strategies, supplier management, document tailoring for specific project types, and best practices for product breakdown structures. The project manager continuously adds new insights to the lessons log as the project progresses, ensuring that valuable information is captured and shared.

At the end of the project, a lessons learned report is created to summarize these insights and document them for future projects. In larger projects, a lessons learned report might be created earlier, such as during the managing a stage boundary process, to share knowledge that could benefit ongoing or upcoming stages.

By capturing and applying lessons, PRINCE2 projects enhance their ability to deliver successful outcomes while continuously improving the project management process.

Reports

Reports communicate progress information and help decide how to control a project. The following are the PRINCE2 reports:

• Checkpoint reports: The team manager uses the checkpoint report to communicate with the project manager about the progress of the work in comparison to the agreed team plan. This report includes information about how much work has been completed and any deviations from the plan. The project manager and team manager will decide on the frequency of these reports when the work package is accepted. Regular, clear communication is key to ensuring that progress is well-managed.
• Highlight reports: The highlight report is a concise report that the project manager uses to update the project board on the status of the current stage in relation to the stage plan. It allows the project board to manage by exception, meaning they can quickly assess whether the project is within its agreed tolerances for time, cost, quality, scope, benefits, and risk. The project manager should provide the current status of these tolerances, making it easier for the project board to focus on issues that exceed the defined thresholds and avoid unnecessary involvement in day-to-day details.
• End project reports: The end project report is created by the project manager after the project as part of the closing a project process. This report is crucial for the project board to evaluate the project’s overall performance before they decide to close it officially. It summarizes the project’s objectives, achievements, and whether the project met its intended outcomes.
• End project report: The end project report is created by the project manager at the conclusion of the project, as part of the closing a project process. This report is crucial for the project board to evaluate the overall performance of the project before they make a decision to officially close it. It summarizes the project’s objectives, achievements, and whether the project met its intended outcomes.

Roles and responsibilities

• Business layer
  • Provide project tolerances in the project mandate: The business layer defines the limits or boundaries within which the project can operate. This includes setting tolerances for time, cost, scope, quality, risk, and benefits.
  • Make decisions on the project exception plans: If the project deviates beyond the agreed tolerances, the business layer has the authority to approve the necessary corrective actions as outlined in the exception plan. This ensures that any significant deviations are managed at the appropriate level.
• Project executive
  • Provides stage tolerances: The executive, typically the person representing the business side of the project, sets the tolerances for each project stage, ensuring alignment with business objectives.
  • Makes decisions on the stage exception plans: When a deviation occurs in the project, the executive is responsible for reviewing and deciding on the corrective action to be taken at the stage level.
  • Ensuring that progress remains consistent from a business point of view: The executive ensures that the project aligns with business goals throughout its lifecycle, helping to guarantee that the project continues to deliver value to the organization.
• Senior supplier
  • Ensures that progress remains consistent from their point of view: The senior supplier is responsible for ensuring that the project’s suppliers and other external stakeholders are fulfilling their commitments, and that progress remains in line with agreed expectations from the supplier’s perspective.
• Project manager
  • Authorizes work packages and monitors progress of stage plans: The project manager oversees day-to-day project activities, authorizing work packages to the team and ensuring that progress aligns with the stage plan.
  • Produces key reports: The project manager is responsible for generating:
    • Highlight reports that summarize progress and any issues.
    • End stage reports that evaluate the results of each stage.
    • Lessons reports to document any lessons learned for future projects.
    • End project reports to assess the project’s overall success and performance.
  • Produces exception reports/exception plans for the project board: The project manager alerts the project board when significant deviations occur, providing a plan for corrective action to bring the project back on track.
  • Maintains the project registers and logs: This includes the issue, risk, and quality registers, ensuring all risks, issues, and quality concerns are properly tracked and documented.
• Team manager
  • Produces checkpoint reports: The team manager provides regular updates to the project manager on the progress of work packages, ensuring that work is completed according to the plan and within agreed tolerances.
  • Escalates issues to the project manager: If any deviations from the work package tolerances are forecast, the team manager must escalate the issue to the project manager to prevent it from affecting the project’s overall progress.
• Project assurance
  • Verifies the business case against external events and project progress: Project assurance checks that the project is still aligned with its business justification and that any changes in external factors are appropriately considered and managed.
  • Assures stage and project progress (double check): Project assurance acts as an independent entity that reviews project performance to confirm that it is on track and complies with project controls, ensuring that the project remains within its agreed parameters.
• Project support
  • Assists with the compilation of reports: Project support aids in preparing essential project reports like highlight, end stage, and end project reports, helping ensure all information is properly documented and communicated.
  • Maintains the issue register, risk register, and quality register: Project support tracks and updates these registers, ensuring that issues, risks, and quality concerns are addressed and managed in a timely and organized manner.

—o—

Written by Frank Turley.

If you have questions or doubts after using this wiki, you can ask for help on the Facebook or LinkedIn study groups.