Let us take a look at what you will learn in the Managing a Stage Boundary Process.
The purpose of the process of managing a stage boundary is to enable the project manager to
provide the project board with sufficient information to be able to:
- review the success of the current stage
- prepare the next stage plan
- review the updated project plan
- confirm continued business justification and acceptability of the risks.
Therefore, this process should be executed at, or close to, the end of each stage.
Projects do not always go to plan, and in response to an exception report (if the stage or project is forecast to exceed its tolerances), the project board may request that the current stage and possibly
the project is replanned.
The output from replanning is an exception plan that is submitted for the project board’s approval in the same way that a stage plan is submitted for approval. Exceptions are another possible trigger for this process.
The objectives of the process of managing a stage boundary are to:
- assure the project board that all products in the current stage plan have been completed and approved
- prepare a stage plan or exception plan for the next stage
- review and if necessary, update the project initiation documentation, in particular the business case, project plan, user’s quality expectations, management approaches, project management team structure, and role descriptions
- provide the information needed for the project board to assess the continuing viability of the project
- record any information or lessons that can help later stages of this project or other projects
- request authorization to start the next stage.
- For exceptions, the objectives of the process of managing a stage boundary are similar to those listed above but include preparing an exception plan and seeking approval to replace the project or current stage plan with the exception plan.
There are 5 activities within the Managing a Stage Boundary and they are:
- Planning the next stage, i.e., creating a Stage Plan for the Next Stage
- Update the Project Plan, with information from current & next stage
- Update the Business Case, since cost, time and risk will most likely have changed
- Reporting Stage End and Creating the End Stage Report, which is a report on the performance of the current Stage
- “Producing an Exception Plan”. This is an optional activity and only needs to be done if the current stage is out of tolerance or forecast to be.
All of the activities here are performed by the Project Manager and they might get some help from the Executive when updating the Business Case.
The purpose of Managing a Stage Boundary Process has two parts:
- The Project Manager has to provide the Project Board with certain information. The outputs of the Stage Boundary process are all for the Project Board
- This information will enable the Project Board to review the current stage, approve the next stage, review updated Project Plan, and confirm continued business justification.
Objective
The process of managing a stage boundary is based on dividing the project into stages.
A project, whether large or small, must ensure that the products it creates will deliver the benefits
sought, either in their own right or as part of a programme or portfolio.
The business justification of the project should be reconfirmed at the end of each stage. If necessary, the project can be redirected or stopped to avoid wasting time and money.
The objective of the Managing a Stage Boundary Process gives an overview of the main work that the Project Manager must do, which is:
- Assure the Project Board that all products in the current stage are produced & approved
- Review and update, if necessary, the usual documents, which are the Project Initiation Documentation, Business Case, Project Plan, and Risk Register
- Record any lessons in the Lessons Log that can help in later stages or in future projects
- Prepare the Stage Plan for next stage and Request Authorization to start the next stage.
Remember that Managing a Stage Boundary begins near the end of the current stage and before the next stage.
If the current stage is forecast to go out of tolerance, then the Project Manager will create an Exception Plan instead of a next Stage Plan, and the Project Manager will request to complete the current stage instead of asking to continue with the next stage,
Don’t worry if you don’t understand this at the moment, as you will by the end of this process.
PRINCE2 Managing a Stage Boundary Context
Again, it is best to look at the Process Model Diagram to see the relationship between the Managing a Stage Boundary process and the other processes, especially Controlling a Stage and Directing a Project.
The Managing a Stage Boundary Process provides the information for the Project Board to evaluate the project at strategic points so they can decide to stop or continue to the next stage and check how the project is going according to the original plan.
Remember the Project Board is the one that controls the project, and the stage Boundary process provides them with the necessary information to do this.
So the question to ask is what the Project Board will consider.
- They will consider the continued business justification of the project
- They will wish to confirm that the current stage has delivered all its planned products and benefits
- They will consider the next Stage Plan
- The last thing that they will consider would be to allow the project to continue or shut the project down.
It is important to remember, that a decision to shut down the project should not be seen as a failure. It is the correct thing to do if the project becomes too costly or too risky and is therefore not justifiable any more.
Managing a Stage Boundary Activities
There are 5 activities within the Managing a Stage Boundary, and they are:
- Planning the next stage
- Update the Project Plan
- Update the Business Case
- Report Stage End
- Or do the “Produce an Exception Plan” activity in this process
Plan the next stage:
This involves creating a Stage Plan for the next stage and incorporating lessons from previous stages.
Update the Project Plan:
- This is done to confirm what has been done and to forecast planning for the next stage
- Remember that the Project Plan is a living document that is updated with actuals during each stage boundary process.
Update the Business Case:
This is important as the performance of the current stage will impact the Business Case. This can either be positive or negative; therefore, the Business Case should be updated at each stage boundary process.
Report Stage End:
Create the End Stage Report to show what has been completed in the current stage compared to the Stage Plan.
Or do the “Produce an Exception Plan” activity in this process:
This plan will replace the current Stage Plan if this is approved by the Project Board, and the Project Manager will return to the Controlling a Stage Process to complete the stage.
Remember, the Managing a Stage Boundary happens after the last stage, as this is followed by the “Closing a Project” process, which becomes part of the last stage.
Plan the next Stage
The Stage Plan for the next stage is created near the end of the current stage. Just like when creating the Project Plan, here too the Project Manager will involve other people like the Team Managers and subject matter experts to create a robust Stage Plan.
PRINCE2 recommends the following actions when creating the Next Stage Plan:
- Review the Project Initiation Documentation for any changes in Quality Expectations, Acceptance Criteria, Project Approach, current strategies, and team roles
- Review the Lessons Log to see which useful lessons can be used in the next Stage Plan
- The Product Initiation Documentation also includes the Project Plan, which lists the products that have to be created next
- If products still need to be defined, follow the product-based planning technique
- Create or update the Configuration Item Records for products that will be created in the next stage, as you will have new information on these (e.g., expected delivery date, version number and current status)
- The Quality Register will also be updated with planned Quality activities that will be done after the products are available.
The Stage Plan will be detailed enough to be used on a day-to-day basis by the Project Manager. Note: This activity will not be done if an Exception Plan is created in the Stage Boundary process.
Plan the next stage
Update the Project Plan
The Project Plan is updated to incorporate actual progress from the current stage, and it should also include the forecast for the next stage; this includes information on time and cost.
This is then used by the Project Board to compare with the original plan that was baselined and was part of the Project Initiation Documentation.
Changes to the planning (e.g., to cost, risk, duration) will have an effect on the Business Case; this is discussed in the next Activity.
PRINCE2 recommends the following tasks in this activity:
- Revise the Project Plan with actuals from the current Stage Plan to show what has been completed, and add Forecast-planning information from the Next Stage Plan. You can now see that the Project Plan will be fully up to date
- See if any other changes need to be made to the Project Plan (e.g., changes to Product Descriptions)
- Perhaps one of the strategy documents or the project approach has changed and so you have to do things in a different way
- Perhaps the Project Board has approved a new product that needs to be incorporated
- Perhaps when updating the Project Plan you have discovered a new issue or risk and need to update the data for an existing Issue or Risk.
So the main documents that are updated in this activity are the Project Plan and perhaps the Issue & Risk Register.
Keep in mind that the Project Board uses the Project Plan throughout the Project to measure progress. It should therefore be kept up to date to show what has already been done, as well as the latest forecast information for the next stage.
Update the Business Case
At the end of a stage it is a good time to update the Business Case and check if the project is still viable and worth doing. The Project Board also wishes to know that the benefits of the project can still be realized within the agreed parameters of time, cost, quality, risk and scope.
The Project Manager will consult with the Executive when updating the Business Case and then prepare it for the Project Board.
Update the Business Case
PRINCE2 recommends the following actions to revise the Business Case:
- Risk Appetite: Check if any changes have been made to the Risk appetite from the organization (e.g.: is the organization prepared to take more or less risk) and does this have an impact on the current risk tolerances in the project
- Risk Register: Also assess the existing risks which are in the Risk Register
- Benefits Management Approach: Update the Benefits Management Approach if any benefits reviews have taken place since the last stage
- Issue Register: Review the Issue Register to see if any issues will have an effect on the Business Case
- Project Plan: Review the Project Plan to note any changes in cost, duration, quality, benefits and other parameters, as all of these will influence the Business Case.
Report stage end
The Project Board will want to know how the stage performed compared to the Stage Plan, and if the Project Plan can still be achieved. Therefore the Project Manager creates the End Stage Report near the end of the current stage.
PRINCE2 recommends the following actions to create the End Stage Report:
- Benefits: Confirm that planned benefits for the stage have been completed, but most benefits won’t be realized until after the project
- Stage Plan: Review the Stage Plan and check that the work has been done
- Product Status: Check the products that were produced during the current stage (review Quality Management Activities) and that the products have been approved. The Approval process may require a person confirming via email or signing a form
- Sometimes products will be handed over during a stage, so the Project Manager will also confirm user acceptance.
The main output from this activity is the End Stage Report, which is given to the Project Board.
Report stage end
Produce an Exception Plan
This activity is optional and only has to be done when the current stage is out of tolerance and an Exception Plan is needed to complete the current stage. Normally an Exception Plan is requested by the Project Board, as they have received an Exception Report that gives an overview of why the stage went out of tolerance and offers a proposal to get the project back on track.
The activity to create an Exception Plan is much the same as creating a Stage Plan, so here, there is only mention of other considerations that have to be taken into account.
The main input files to create an Exception Plan are:
- The Exception Report, as this contains the recommended actions
- Current Stage Plan, so you know what still needs to be produced
- Project Initiation Documentation, which contains the Project Plan, as this need to be updated to include the extra activities from the Exception Plan.
Other tasks that may be necessary: - If there are new products to create, you will use the product-based planning technique
- Also update the Quality Register to note planned Quality Management Activities, such as Quality Reviews, and create or update the Configuration Item Records for products that will be produced by the exception plan.
So the main outputs will be the Exception Plan and updated Project Initiation Documentation.
The Project Manager seeks approval to complete the current stage using the Exception Plan. The Project Board can decide to allow the Project Manager to complete the current stage or shut down the project.
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