Prince2 Interview Questions and Answers

Prince2 stands for Project IN Controlled Environment. It is a process-based method which is used for effective project management.

Prince2  is a widely used project management methodology that provides a structured approach for managing projects. Unlike some other methodologies, Prince2 is process-based and provides a clear framework for project initiation, planning, execution, monitoring, and closure. It emphasizes the importance of defining clear project objectives, roles, and responsibilities, and ensures that projects are constantly monitored and controlled to ensure successful outcomes.

Prince2 is based on seven key principles:

Continued Business Justification: The project should make sense economically and strategically throughout its lifecycle.

Learn from Experience: Past experiences, both positive and negative, should be used to improve project performance.

Defined Roles and Responsibilities: Clear roles and responsibilities should be assigned to each project team member to ensure accountability and effective decision-making.

Manage by Stages: Projects should be divided into manageable stages, each with predefined objectives and deliverables.

Manage by Exception: Authority levels should be established and utilized to enable efficient decision-making at various levels of the project.

Focus on Products: The project should be product-focused, with well-defined deliverables at each stage. Tailor to Suit the Project Environment: Prince2 should be tailored to fit the specific needs of each project, taking into account its size, complexity, and context.

Prince2 projects consist of the following components:

Project Board: The Project Board is responsible for providing overall direction and management of the project. It comprises the Executive, Senior User, and Senior Supplier roles.

Project Manager: The Project Manager is responsible for day-to-day management of the project, ensuring that it stays on track and delivers the expected outcomes.

Team Manager: Team Managers are responsible for managing specific teams and delivering the products within their assigned areas.

Project Assurance: This role ensures that the project is being conducted following Prince2 principles and provides independent assessment and advice to the Project Board.

Change Authority: The Change Authority is responsible for assessing and approving changes to the project’s baseline.

Project Support: Project Support provides administrative and logistical support to the Project Manager and the rest of the project team.

Prince2 defines the following management stages:

Starting Up a Project (SU): This is the pre-project phase where the project’s feasibility is assessed, and the Project Brief and initiation documentation are created. It determines whether the project should proceed to the next phase.

Initiating a Project (IP): In this phase, the detailed project plan is created, including the Business Case, Project Initiation Documentation (PID), and the project approach. The project team is appointed, and roles and responsibilities are defined.

Controlling a Stage (CS): This phase involves the day-to-day management of the project. Progress is monitored, and issues and risks are addressed. At the end of this stage, a decision is made whether to continue to the next stage.

Managing Product Delivery (MP): This stage focuses on the creation and delivery of project products. Team Managers are responsible for their respective areas.

Managing a Stage Boundary (SB): This phase comes at the end of each management stage and involves reviewing progress, updating the plan, and reporting to the Project Board. The decision to proceed with the next stage is taken in this phase.

Closing a Project (CP): In this final phase, the project is formally closed. The final product is handed over to the customer, and a Post-Project Review is conducted to capture lessons learned.

The Project Board and Project Manager are distinct roles in Prince2 with different responsibilities:

Project Board: The Project Board is responsible for providing strategic direction and decision-making for the project. It oversees the project’s progress, approves major decisions, and ensures that the project aligns with the organization’s objectives. The Project Board consists of the Executive, Senior User, and Senior Supplier roles.

Project Manager: The Project Manager is responsible for the day-to-day management of the project. They develop and maintain the project plan, manage risks and issues, report progress to the Project Board, and ensure that the project stays on track to deliver the expected outcomes.

Prince2 employs a proactive approach to risk management. The key risk management activities include:

Identify Risks: The project team identifies potential risks that could impact the project’s objectives. Risks are recorded in the Risk Register.

Assess Risks: The identified risks are assessed in terms of their potential impact and probability of occurrence. This helps prioritize which risks need attention.

 Plan Responses: Risk responses are developed for the identified risks. These responses could include risk mitigation, contingency plans, or transferring the risk to a third party.

Implement Responses: The risk responses are put into action to address the identified risks.

Monitor Risks: Throughout the project, risks are regularly reviewed and monitored. New risks may emerge, and the status of existing risks may change. The Risk Register is updated accordingly.

The Business Case in Prince2 justifies the project from a business perspective. It provides a thorough assessment of the project’s expected benefits, costs, risks, and the reason for undertaking the project. The Business Case is created during the Initiating a Project process and is continually reviewed and updated throughout the project.

The importance of the Business Case lies in the fact that it serves as a foundation for decision-making throughout the project’s lifecycle. It helps stakeholders understand why the project is being undertaken and whether it is still viable and aligned with the organization’s objectives. The Business Case is used by the Project Board to assess the project’s continued viability and to make critical decisions, such as whether to proceed to the next project stage or even to terminate the project if the business justification is no longer valid.

The key features are –

• Widely organized and understood
• Can be applied to any project
• Based on management by exception
• Invaluable diagnostic tool
• Consistency and reusability in project work.

The levels of plan are –

Project Plan

Stage Plan

Team Plan

Exception Plan

The Planning steps are –

• Designing the pal
• Define the products
• Identify Activities and Dependencies
• Prepare Estimates
• Prepare Schedule
• Document plan
• Identify Risks

It performs-

Support project

Accept Results

Provides Management Approval

Project Support responsible for producing a Product Status Account.

Executive is responsible for drafting the outline Business Case.

Project Assurance confirms stage and project progress against agreed tolerances.

The two types of progress controls provided by PRINCE2 are –

Time-driven

Event-driven

Initiating a Project process triggers the request to deliver a project.

Project Board is responsible for communicating with stakeholders.

Managing Product Delivery process can be carried out without using PRINCE2.

Project support maintains the Quality Register.

Corporate or Program management has the responsibility of setting project tolerances.

Project Product Description document defines the acceptance criteria and roles for the project. This is created in the Starting up a Project process and used during the Closing a Project process to help verify that the project has delivered to expectations.

The objectives are 

To ensure there is authority to initiate, deliver and close the project

To ensure management direction and control are provided throughout the project and that the project remains viable

Plans for realizing post project benefits are managed and reviewed

The purpose of the Managing Product Delivery process is to control the link between the Project Manager and the Team manager(s).

The primary objective of the Quality Review Technique is to involve key interested parties in promoting wider acceptance of the product.

The purpose of a Checkpoint Report is to updates the project Manager on the status of a Work Package.

The principles are –

• Manage by stages
• Focus on products
• Manage by exception
• Tailor to suit the project environment
• Continued business justification
• Learn from experience
• Defined roles and responsibilities

• Business case
• Organization
• Quality
• Plans
• Risk
• Change

Progress

The PRINCE2 method is used to address project management through the four integrated elements of principles processes, the project environment and themes.

It is a table which is used to contain the risks that may threaten the goal of the project.

Quality register is used to contain the details of all planned quality activities, personnel involved and dates.

It is a set of notes about change requests, complaints, concerns and problems sent by all project members

Revalidates the project

Kick start the project

Owned by the business

The types are –

Compulsory

Not for profit

External Project

Evolving Requirements

Multi organization project

The prince2 deliverables are –

Business case

End of stage report

Project plan

Issue Log

Work package

Risk management plan

The planning approaches are –

Work based Planning

Deliverable / Product planning.

The activities are –

Authorize project closure

Authorize a stage or Exception plan

Authorize Initiation

Give ad – hoc support

Authorize the project

The activities are –

Appoint the executive and project manager

Prepare business case outline

Select project approach

Plan Initiation stage

The risk strategies are –

Risk tolerance

Risk Appetite

Ongoing Activity

Avoid, Seek, Neutral

Some examples of Management Products are

Benefits Review Plan

Business case

Checkpoint Report

Communications Management Strategy

Daily Log

Lessons Log

Configuration Management Strategy:

Configuration Item Record

Project Brief

Issues Register

Quality Register

Risk Register

End Project Report