Project A's Financial Services: PRINCE2 Project Methodology Analysis

This report provides a comprehensive analysis of the PRINCE2 project methodology, focusing on its application within Project A, a financial services provider in Australia and New Zealand. The report details the seven key steps of PRINCE2, including project startup, direction, initiation, control, product delivery management, stage boundary management, and project closure. It highlights how Project A can utilize this methodology to establish a financial regulatory performance framework and delegate project tasks effectively. The report also addresses the challenges of PRINCE2 implementation, such as stakeholder communication and resource focus, and suggests remedies like stakeholder analysis and integrated involvement. Furthermore, it emphasizes the benefits of PRINCE2, including standardization, cost-effectiveness, and the use of best practices, concluding that PRINCE2 is a beneficial methodology for project management. The report incorporates references and an appendix that includes a risk management plan template.

Running head: project methodology 1
PRINCE2 PROJECT METHODOLOGY APPLICATION, CHALLENGES AND BENEFITS
IN PROJECT SETUP
Submitted by
Student name:
Supervisor
Affiliation
Date of submission

Running head: project methodology 2
PRINCE2 PROJECT METHODOLOGY
Project A is developed to offer financial services to customers located in Australia and New
Zealand. Its expectation is that the 80 employees will continue to offer competitive financial
services despite its small size and complexity of tasks (Hedman 2013, pp.46). In order to achieve
that target a financial regulatory performance framework need to be formulated that will define
their performance standards, and how they will interact with various stakeholders when carrying
out functions. Implementation of the framework requires a suitable project management
methodology that will take consideration of the various components and needs of the
stakeholders. A choice of project management methodology framework is a high management
level function (Gido & Clements 2014, 33). Senior managers in Project A need to plan and
document it as part of their organization policy framework. The implementation of the
methodology is carried out by the project board, project manager and project team.
PRINCE2 project methodology is suitable for Project A because of the small size and complexity
of the project. The PRINCE2 works on the principle that project activities can be delegated to
project managers and team for them to perform effectively (Bourne 2015, pp. 38). The senior
managers in Project A can delegate authority to a project manager to execute and control the
project. The PRINCE2 methodology involves seven steps to be followed they include: starting
up, directing, initiation, controlling, managing product descriptions, managing stage boundaries
and project closure (Kendrick 2013, pp.67). The seven stages need to be implemented fully to
ensure that project deliverables are achieved as per the expectations and standards of the
organization. The senior managers will approve the project manager to employ the project
methodology in implementing the project.
PRINCE2 IMPLEMENTATION
The project manager first step in the project methodology is to submit a new project request to
the senior managers in the startup phase (Cleland 2013, pp.45). The request is implementation of
financial performance regulatory framework in the organization. The request is to explain the
goals, aims and justification of the project. The request will be followed by a project brief that
shows the resources and actions used to accomplish the project once the approval is done by the
senior managers. The next step follows a policy approval stage by the senior managers known as

Running head: project methodology 3
directing a project. The senior manager decisions are to appraise and evaluate the project
viability based on the methodology provided. Once they are satisfied the project is approved and
the project manager is given the authority to execute the project.
The first step in the execution process is for the project manager to document a project plan. The
project plan documented should cover 6 performance targets: quality, cost, time, scope, benefits
and risks. Examples of the indicators are provided in the appendix section. The quality plan
provides a plan of how quality control and assurance will be achieved. Work breakdown
structure and network diagrams will provide schedules for activities and basis of allocating
resources. Work breakdown structure is a tool that divides the project into smaller units, work
packages and deliverables. Risks will be maintained in a risk management plan in form of a risk
register. Once the targets are provided the project are given a clean bill of health to continue.
During the execution of the project its goal is divided into smaller work packages and delegated
to project team to achieve them. The division of work into smaller units falls under the
controlling stage of PRINCE2 project management methodology. The project manager is then
mandated to oversee that activities go as per the project briefs and plans developed. Each of the
financial performance regulatory frameworks content is delegated to project team players to
implement them.
Part of the implementation process is to ensure that the product delivery is managed and
executed well (Heagney 2016, pp.76). The project manager will need to check project progress
against the project brief/plan to ensure that deliverables meet the expectations before the
approvals are made. The second last stage of the project involve both senior managers and
project managers evaluating the stages of implementing the financial performance regulatory
framework according to the set standards and requirements. The findings of the evaluation will
provide a record of lessons learnt and future correction measures. Once the project goal has been
met and senior managers are satisfied the project manager closes the project. A project closure
checklist will provide procedures and activities that will be closed down which may include:
documents, accounts and assets (Larson 2014, pp.67). The project manager then hands over the
project to the owners.
PRINCE 2 CHALLENGES AND REMEDIES

Running head: project methodology 4
The implementation of PRINCE2 project methodology in Project A faces the following
challenges: The project methodology focuses on the tasks and client role to much which may
bring a constraint or relationship between them, there are other stakeholders that the project
needs to look and work with. No suitable method of communication is provided to the
stakeholders. Information sharing is important of project because it eliminates risks and
uncertainties in the entire process (Burke 2013, pp.56). In order for the mentioned challenges to
be addressed stakeholder involvement should be integrated at each stage to facilitate information
sharing. Project managers need to carry out a stakeholder analysis during initiation and starting
phases of the project. The methodology it needs to focus on the resources available to
accomplish the tasks rather than focusing on the tasks alone. In conclusion, PRINCE2 is
beneficial for project needs because it provides standardization of all the procedures, it is time
and cost effective, and its techniques are based on best practices. The methodology adopted by
Project A have been tried and tested in several countries and available at free to be used in
projects.

Running head: project methodology 5
Reference lists
Bourne, L 2015, Making projects work:effective stakeholder and communication management.
CRC press, New Delhi.
Burke, R 2013, Project management: planning and control tecniques. Wiley publishers, New
Jersey.
Cleland, D 2013, Project management handbook. Van Nostrand Reinhold, New York, United
States.
Gido & Clements 2014, Successful project management. Nelson Education, Chicago.
Heagney, J 2016, Fundamentals of project management. AMACOM: American management
association
Hedman, K 2013, Project management professional exam study guide. Wiley, Indianapolis.
Kendrick, T 2013, The project management tool kit: 100 tips and techniques for getting the job
done right. . AMACOM Div: American management Assn.
Larson, E 2014, Project management: the managerial process. New York: Mc Graw Hill, New
York.

Running head: project methodology 6
Appendices
a. Prince2 project management methodology
Closing the project
Managing stage boundary
Managing product delivery
Controlling a stage
Initiation of a project
Directing a project
Starting a project

Running head: project methodology 7
b. Risk management plan (template)
Rank Ris
k
Description Root Cause Potential
Responses
Risk
Owner
Probability Impact