Deliverables First: The PRINCE2 Planning Advantage
PRINCE2’s product-based planning can confuse project managers used to task-based methods. The 7th Edition, released in 2023, refines this approach to focus on deliverables, ensuring clarity and control.
This blog explains product-based planning, provides a step-by-step example of creating a product breakdown structure (PBS), and highlights benefits like reduced scope creep.
Let’s dive into this core PRINCE2 technique, tailored to the latest edition.
Why is this superior to just task-based planning?
This approach:
- Ensures clarity by focusing on tangible outcomes rather than vague activities.
- Reduces scope creep since all deliverables are agreed upon upfront.
- Aligns stakeholders early by involving them in defining and approving products.
- Improves adaptability through structured breakdowns and digital integration tools.
In short, it’s outcome-driven planning that keeps the project anchored to its goals.
What is Product-Based Planning?
Product-based planning centers on deliverables, called “products” in PRINCE2. Unlike task-based methods that list activities first, this approach defines what the project must deliver before planning how to achieve it.
The 7th Edition emphasizes products to align with project goals and stakeholder expectations. It ensures everyone knows the outputs from the start.
The process involves three main steps:
- Define the final product
- Create a product breakdown structure (PBS)
- Develop product descriptions and a product flow diagram.
This method keeps the focus on tangible outcomes, not just tasks.
Why It Feels Different
Task-based planning starts with actions, like “design a website.” This can lead to vague goals or scope creep. PRINCE2 7th Edition flips this.
You define the “completed website” first, then break it into smaller deliverables. Only then do you plan tasks.
This shift ensures clarity but can feel unfamiliar to those used to activity-driven plans.
Key Principles in PRINCE2 7th Edition
The 7th Edition integrates product-based planning with its seven principles, especially “focus on products.”
It emphasizes:
- Defined outputs: Products must meet clear quality criteria.
- Stakeholder alignment: Involve stakeholders early to agree on deliverables.
- Flexibility: Adapt products to suit project complexity.
- Digital integration: Use tools to manage product definitions and dependencies.
These updates make product-based planning more collaborative and adaptable.
Step-by-Step Example: Creating a Product Breakdown Structure
Let’s apply product-based planning to a real-world project: organizing a company training workshop. The final product is “a completed training workshop.”
Here’s how to build a PBS using PRINCE2 7th Edition guidelines.
Step 1: Define the Final Product
Start with the project’s main deliverable. For our workshop, it’s “a completed training workshop.” This product represents the project’s ultimate goal.
Write a brief product description:
Purpose: Deliver training to employees.
Quality Criteria: Engaging, meets learning objectives, approved by the training manager.
Approval: Project board.
Step 2: Break Down into Sub-Products
Decompose the final product into smaller deliverables. For the workshop, these include:
- Training materials
- Venue setup
- Participant registration system
- Feedback mechanism
Break these further into manageable components:
- Training materials:
- Presentation slides
- Handout booklet
- Training exercises
Venue setup:
- Booked room
- Audio-visual equipment
- Refreshments
- Participant registration system:
- Online registration form
- Attendance list
- Feedback mechanism:
- Printed feedback forms
- Online survey link
The 7th Edition encourages involving stakeholders here. For example, consult the training team to ensure all materials meet their needs.
Step 3: Create the Product Breakdown Structure
Organize products into a hierarchical PBS. It visually shows how sub-products build to the final deliverable. Here’s the structure:
- Completed Training Workshop
- Training Materials
- Presentation slides
- Handout booklet
- Training exercises
- Venue Setup
- Booked room
- Audio-visual equipment
- Refreshments
- Participant Registration System
- Online registration form
- Attendance list
- Feedback Mechanism
Printed feedback forms
Online survey link
Use digital tools, as suggested in the 7th Edition, like Miro or Trello, to create and share the PBS with the team.
Step 4: Write Product Descriptions
For each product, write a description. Include purpose, composition, quality criteria, and approval details.
For “Presentation slides”:
- Purpose: Deliver training content visually.
- Composition: Slides with text, images, and charts.
- Quality Criteria: Clear, error-free, aligned with objectives, max 30 slides.
- Approval: Training manager.
- Format: PowerPoint or PDF.
The 7th Edition stresses measurable quality criteria. For example, specify that slides must load on the venue’s projector.
Step 5: Map the Product Flow
Create a product flow diagram to show the order of delivery.
This clarifies dependencies. For the workshop:
Booked room → Audio-visual equipment → Refreshments → Venue setup
Presentation slides → Handout booklet → Training exercises → Training materials
Online registration form → Attendance list → Participant registration system
Training materials + Venue setup + Participant registration system → Completed training workshop
Completed training workshop → Feedback mechanism
The 7th Edition recommends reviewing this diagram with stakeholders to confirm logical flow.
Step 6: Integrate with Project Plans
Once the PBS and product flow are set, plan activities to deliver each product. For example, to produce “Presentation slides,” tasks might include:
- Draft content
- Design visuals.
- Review with trainer.
This step links products to tasks, ensuring alignment with the project schedule.
Benefits of Product-Based Planning
Product-based planning offers clear advantages, especially in the 7th Edition’s framework.
Reduces Scope Creep
Defining products upfront sets clear boundaries. Stakeholders agree on deliverables, reducing unexpected additions.
For example, if the workshop’s PBS excludes catering beyond refreshments, no one can later demand a full meal without formal change control.
Enhances Clarity
Everyone understands the project’s outputs. The PBS and product descriptions align the team and stakeholders.
This clarity prevents misunderstandings, like assuming the workshop includes certification unless specified.
Improves Quality Control
Product descriptions include quality criteria. Teams check deliverables against these standards.
For instance, the “Handout booklet” must be error-free and printed in color, ensuring consistency.
Supports Better Planning
Starting with products clarifies dependencies. The product flow diagram shows what must come first, like booking a room before setting up equipment.
This leads to realistic schedules and resource allocation.
Encourages Stakeholder Engagement
The 7th Edition emphasizes involving stakeholders early. They help define products and quality criteria, ensuring buy-in.
For example, trainers can confirm the training materials meet learning goals.
Adapts to Complexity
The 7th Edition allows tailoring product-based planning to project size.
For a small workshop, the PBS might be simple. For a large event, it could include dozens of products, like marketing materials or guest speaker contracts.
Challenges and How to Overcome Them
Product-based planning can feel counterintuitive. Here are common challenges and solutions:
Challenge: Difficulty identifying products.
Solution: Start with the end goal. Ask, “What must the project deliver?” Break it into tangible components. Use brainstorming sessions with stakeholders.
Challenge: Overcomplicating the PBS.
Solution: Keep it simple. The 7th Edition advises focusing on major deliverables. Avoid breaking products into overly granular parts unless necessary.
Challenge: Resistance to change.
Solution: Train teams on PRINCE2’s benefits. Show how product-based planning prevents issues like scope creep.
PRINCE2 7th Edition Enhancements
The 7th Edition refines product-based planning to fit modern projects. Key updates include:
Digital tools: Use software for PBS and product flow diagrams. Tools like Microsoft Project or Lucidchart streamline collaboration.
Sustainability focus: Consider environmental impacts in product descriptions. For example, specify digital handouts to reduce paper use.
People-centric approach: Engage stakeholders more actively. Their input shapes products, ensuring alignment with needs.
Tailoring guidance: Adapt the PBS to project scale. A small project might have a one-page PBS, while a complex one needs detailed breakdowns.
These changes make product-based planning more practical and inclusive.
Practical Tips for Success
To implement product-based planning effectively:
Involve stakeholders early: Get their input on products and quality criteria.
Use visual tools: Create PBS and product flow diagrams digitally for clarity.
Keep it simple: Focus on key deliverables to avoid overwhelming the team.
Review regularly: Check the PBS against project progress to catch issues early.
Train the team: Ensure everyone understands product-based planning’s benefits.
Real-World Application
Imagine a software development project. The final product is “a completed mobile app.” The PBS might include:
- User interface design
- Backend system
- User manual
- Testing report
Each has a product description with quality criteria, like “the app loads in under 3 seconds.”
The product flow diagram shows dependencies, like designing the interface before coding the backend.
This clarity prevents developers from adding unplanned features, keeping the project on track.
The Way Ahead
PRINCE2 7th Edition’s product-based planning transforms project management. By focusing on deliverables, it ensures clarity, reduces scope creep, and improves quality.
Creating a product breakdown structure, writing product descriptions, and mapping dependencies align teams and stakeholders.
Though it may feel different from task-based methods, its benefits—clear goals, better planning, and stakeholder buy-in—make it worth adopting.
Try it on your next project to see the difference!
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