Demystifying PRINCE2 and the PMBOK Guide

Transcription

1 Demystifying PRINCE2 and the PMBOK Guide - What to choose and why! By Klaus Nielsen, advisor to ITpreneurs 1

2 Introduction. Every so often we are asked by clients which International Project Management Standards to deploy, the pros and cons and how they works in conjunction with other standards or frameworks. This whitepaper explains in a straightforward manner the content of the major frameworks, benefits, differences and how they supplement each other. After reading this whitepaper You will have the basic knowledge of the frameworks, knowledge of how the certifications can help You and Your organization obtain the benefits of the frameworks and enable You be able to ask the right questions! In an international perspective the Project Management Standards to reflect on are Prince2 from OGC/APMG and PMI frameworks. The PRINCE2 2009:edition framework from The Cabinet Offices and the PMBOK Guide 5 edition from the Project Management Institute (PMI) are International and recognized Project Management Standards. In this case being international implies being globally recognized, have a large membership bases, proven frameworks, body of knowledge or best practices and a large amount of certified professionals globally shattered. An International Project Management Standards is a step-by-step process, our project management cookbook or set of good practices to follow in order to delivery projects successfully. Standards describes how planning, delegating, monitoring and controlling of all aspects of project management should be conducted in order to manage the constraints which include costs, timescales, quality, scope, risk and benefits. Without International Project Management Standards projects would suffer greatly and struggle in all aspects of project management. The basic concepts of PRINCE2 2009: edition and PMBOK Guide. PRINCE2 is based around 7 principles which are the keystone of the framework. You need to follow the 7 principles to do it the PRINCE2 way. The PMBOK do not apply principles. In PRINCE2 the principles are; Continued business justification, learn from experience, defined roles and responsibilities, manage by stage, manage by exception, focus on products and tailor to suit the project environment. Tailoring also exist in the PMBOK Guide as a tool to adapt the frameworks to the organization, situation and project. In order to manage the project constraints the frameworks consists of aspects of projects management which must be addressed continually. In PRINCE2 these aspects are called Themes while the PMBOK Guide use the term Knowledge areas. The PRINCE2 principles are closely related to the themes which are; Business case, organization, quality, plans, risk, change and progress. Part of this content is found likewise in the PMI knowledge areas which covers themes and processes by examining input, tools and techniques and 2

3 output. In order to make the frameworks more transparency the table below have mapped PRINCE2 themes with the PMBOK guide knowledge areas. PRINCE2 Themes PMBOK - Knowledge area Business Case, Change Project Integration Management Plans Project Scope Management Plans, Progress Project Time Management Progress Project Cost Management Quality Project Quality Management Organization Project Human Resource Management Organization Project Communication Management Risk Project Risk Management Project Procurement Management Organization Project Stakeholders Management PRINCE2 and the PMBOK Guide consist of processes which are the step-by-step good practices to manage projects successfully. The PMBOK Guide includes 47 processes which are split among the knowledge areas. The knowledge area of Project Procurement Management have the process of; Plan Procurement Management, Conduct Procurements, Control Procurements and Close Procurements. All 47 processes in the PMBOK Guide are also part of a process groups which are initiating, planning, executing, monitoring and controlling and closing. The process groups are the project lifecycle going from start of a project (initiating) to the end (closing). PRINCE2 have 7 principles, 7 themes and 7 processes. The PRINCE2 processes are; Starting up a project, Directing a project, Initiating a project, Controlling a stage, Managing product delivery, Managing a stage boundary and Closing a project. Each process consists of a workflow of actions and documents in order to manage the process successfully. In order to wrap up this section we can conclude that PRINCE2 is best practice document and principle driven framework while PMBOK framework is a body of knowledge framework including an extensive toolbox of techniques and processes needed to master any project. The differences between the frameworks of PRINCE2 and PMBOK Guide. So far the International Project Management Standards of PRINCE2 and PMBOK Guide have been possible to compare and include a wide range of benefits, so let's examine the real differences. On a high level view the PMBOK Guide was first created in 1983 by leading American enterprises, public sector, academics and thought leaders as a body of knowledge. A body of knowledge is a set of standards to deliver successfully projects. PRINCE and the later known PRINCE2 were developed in 1989 as a UK standard, later fairly popular among public sector European clients. PRINCE2 is a best practice framework based upon the experience of failed and successful projects. The table below 3

4 illustrate the benefits of PRINCE2 and PMBOK Guide where the differences are highlighted. Benefit PRINCE2 PMBOK Guide Defined structure for accountability Yes No Management by exception Yes No Business case driven Yes No Stakeholders engagement Yes Yes Leadership capabilities No Yes Detailed techniques No Yes One aspect where the frameworks differences are their view on roles where PRINCE2 in the organization theme have a strong emphasis on the executive, senior supplier and senior user while this is have less emphasis in the PMBOK Guide. The European experiences in the 1980ties told a case of numerous projects not closed in due time or completed for the wrong reasons which have resulted in a strong focus in PRINCE2 on the business case as the driver for change and delivery the projects. Going into details the differences between the frameworks are plentiful. As witness the PMBOK Guide is strong on detailed techniques found in all knowledge areas, one being procurement which plays a larger and larger part of many projects as we need a vendor before we can get going. One of the major strengths of the many tools and techniques of the PMBOK Guide is the means to create a schedule in great details and of high quality which in PRINCE2 just is expected of the Project Manager without providing the tools and techniques. The PMBOK Guide also include Earned Value Management as a great tool to measure progress in terms of time and costs and enables the project manager to make forecasts based on data rather than gut feels. One last element to highlight often forgotten is the PMI focus on the Code of Ethics and Code of Conduct which are becoming increasingly important to avoid lawsuit and for a strong leadership which research indicate helps to keep the high performing employees. This implies going PRINCE2 you need to have experienced project managers with extensive knowledge of the detailed tools and techniques in order to be successful with your projects while PMBOK Guide projects needs a focus on why we are doing this project and who is doing what and when. These differences are managed as complements in the next section. How PRINCE2 and PMBOK Guide complement each other? An organization may have decided to use one framework over another which makes good sense. The body of knowledge of PMI and the best practices from PRINCE2 are part of the toolbox of the professional project manager. Each project is unique, foster a change, crossfunctional and temporary which implies we must adapt and use various processes, tools and techniques in various situations in the projects. 4

5 The clients may have an overall PRINCE2 framework using the principles, themes and processes but when it comes down to delivering the project, project managers may use the detailed techniques from the PMBOK Guide to which may be found in all knowledge areas such as plan (PDM/ADM/Network diagram/critical path (Crashing/Fast tracking), Risk management (S-curve), estimation techniques (PERT, Analogy), Quality (TQM techniques such as Cost of Quality), Human Resource Management (Staffing, team building) and use Earned Value Management for status reporting and a measurement of progress. The project may include some kind of procurements (Vendor/bid management) where the knowledge of the PMI knowledge areas are employed to create PRINCE2 products and plan them using product based planning. Alternative the client may be an European firm with American clients, so they will be using the PMI Standards but this don't imply they can't have a business case driven project. The International Project Management Standards of PRINCE2 and the PMBOK Guide are highly complementary. Keeping it simple one might state PRINCE2 include the methods while PMBOK Guide include the techniques. An important element of both frameworks is the ability to tailor the frameworks to the organization and projects which gives us the ability to adapt and foster change. All good - How to choose a framework for managing projects? This is a dangerous question. I bet most project management professionals would have a view on this matter. For a start you need an International Project Management Standard to increase your rates of delivering successful projects on a day to day basis. Using a framework is in most organizational based upon the governance model deployed which means top management has decided which framework to use on an overall level. This does not imply it can't be useful to include other frameworks or knowledge in the toolbox. The use of a framework is often related to knowledge of or experience with the framework. Frameworks deploy a lot of templates which are developed by the organization as part of the deployment of a framework which more or less sets the standard for proper use. Other and more serious factors to consider are scalability, accountability, standardization and reliable which both International Project Management Standards performs well on all parameters. The twelfth reasons why become certified? Money - More and more organizations providing certification can demonstrate the value of certification by an increase in salary. Market demand - Job ads and contracts require a certain skill set which must be documented. Applications - Learning new tools and gain the ability to apply them. 5

6 Recognition - A certification is a recognition among peers. Relative value - The effort to pass the certification or costs associated is worth the gains from passing. Requirements - Trainers and other developers are expected to have obtain certifications. Knowledge transfer It demonstrate the ability to transfer knowledge across industries. Abilities If reflects the ability to understand and apply the principles and practices to basic projects. Professionalism It demonstrate level of professionalism in project management practices of project management. Versatility It increases professional versatility in project management tools and techniques. Development - Certifications demonstrate ongoing development within one s field of expertise. Global knowledge - Certifications are often internationally well-known and can be used in many countries, which makes working across borders more easier. Conclusions The International Project Management Standards are like 'apples and pears'. Some prefer one over the other but objectively both are healthy and excellent supplements in most dishes. The standards of PMBOK Guide and PRINCE2 are de facto standards and best practice within the industry and academics. PRINCE2 is principle driven which makes it great for communication and excellent for engaging stakeholders. However PRINCE2 is also document driven. The organization needs to find the right level in terms of tailoring PRINCE2 or some of the smaller projects would deviate greatly. However if you have larger projects PRINCE2 would work like a charm with little need of tailoring. Themes and processes cover most aspects of a project and with some tailoring an amazing framework for successful projects. The framework of PRINCE2 is based upon experiences from many projects, good and bad which helps us not making the same mistakes again and again and using the best from the past and applied it in the current projects. Currently we are tailoring PRINCE2 frameworks to the agile methodologies. PMBOK Guide framework has been the de factor standard for many global companies and with good reason. As executives and managers we tend believe our project managers have the needed tools and techniques to master the projects which are not always the case. In 6

7 this case the PMBOK Guide is amazing as a body of knowledge. Body of knowledge implies what you need to know as project managers if you want to run successful projects. You need to crawl before you can walk. Learn the body of knowledge of the PMBOK before launching on PRINCE2. If you want a walking stick be certified! While both PRINCE2 and PMBOK offer several advantages to project managers in managing projects successfully, some project managers choose a hybrid approach that combines the better of these two worlds. Whatever be the case, both standards offer useful concepts that organizations and managers should adopt to ensure success for their respective projects as well as their careers. About the author MBA Klaus Nielsen is advisor to ITpreneurs, the founding partner of Global Business Development in Denmark and associated lecturer in Project and Program Management at the IT University of Copenhagen. Klaus holds PRINCE2 Foundation and Practitioner, CSM, PMP, PMI-RMP and PMI-ACP credentials. As a professional freelance consultant Klaus has over 10 years of project and program management experience in managing projects and programs. In late 2013 Klaus publish the book "I Am Agile ISBN " which covers the PMI-ACP and ICAgile certifications. He can be reached at kni@itu.dk 7