The PRINCE2 7 Progress Practice in A Nutshell – Part 2
Monitoring PRINCE2 Tolerances
Referring to the diagram below, the Team Manager reports on the Work Package progress and Tolerance situation via Checkpoint Reports back to the Project Manager, who in turn reports on stage progress and the Tolerance situation via Highlight Reports.
These are sent to the project board and other key stakeholders as laid down within the Communication Management Approach.
The Project Manager will report on the stage progress and tolerant situation while the Project Board reports on the overall project progress and Tolerance situation most obviously via the End Stage Reports, although Corporate or Program Management could ask to be kept more readily informed, and therefore copied, via Highlight Reports.
Escalating issues and managing exceptions
Again, referring to the diagram above, if the Team Managers are forecasting that they cannot complete a Work Package Within time or cost Tolerance, they must escalate this to the Project Manager via a project issue. Note that Team Managers do not raise an Exception Report.
The Project Manager will then analyse the issue and if resolving it does not threaten project or stage Tolerances, then the Project Manager can take corrective action to resolve and fix the issue. The Project Board will be kept in the picture when the Project Manager issues the next Highlight Report and such issue resolution details could be included.
If, however, that same issue threatened stage Tolerances for whatever reason, the Project Manager must escalate this to the Project Board via an Exception Report. Be clear that the precise actions are that the Project Manager must raise a formal Issue Report and use this to then create the Exception Report.
Of course, in concert with the Issue Report being created, relevant details are captured on the Issue Register, which is used throughout the life history of that specific issue up to the point where the issue is fully resolved, or some other action is taken via the Project Board – such as closing the project prematurely.
You also need to be aware that if this same issue threatens the overall project Tolerances, and this factor is mentioned within the Exception Report, then the Project Board do not have the authority to ask the Project Manager for an Exception Plan, as the matter will need to be escalated to Corporate or Program Management via the same Exception Report that was prepared by the Project Manager.
If for whatever reason the Business Case is threatened, then Corporate or Programme Management will either authorize a major scope change to rescue the project is possible, or they will be forced to authorize a premature close.
Be aware that all decisions about additional budget, major changes in scope, or premature closure, are made by Corporate or Program Management, but because the Project Board act as the interface to the project, these decisions a filtered back down to the Project Manager via the Project Board within the PRINCE2 Directing a Project process.
You will recall the activity within the Directing a Project process called “give ongoing direction” as it is this that is used for the main communication conduit for the activity mentioned above.
It is also important to realize that as the project goes into exception off we have forecast that we cannot complete the stage or project within time and more cost Tolerance, we do not wait until we’ve got to the end and then ask for more money or time!
This is because the PRINCE2 Management By Exception principle is required to be proactive not reactive about exceptions.
It makes a lot of sense that pre-warning either the Project Board or Corporate or Programme Management the chance to prematurely close the project, that this would save throwing more money on a project that is no longer worth doing.
Jump On Over To The Last Part of The PRINCE2 Progress Practice HERE!
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