Implementing PRINCE2™ in a PMBOK^® Based Environment

Introduction
The Project Management Institute Guide to Project Management (PMBOK) is a widely accepted statement of the sum of knowledge within the profession of project management, and has been adopted by many organizations as the basis for their project management specialism. PRINCE2 is leading project management methodology, aiming to provide mechanism for the setting up of a framework within which to run a project, the running of that project and its closure with handover to operational areas. These are clearly very closely related enterprises, and the objective of this document is to give our opinion on what the implications would be on an organization which has currently adopted the PMBOK also looking to adopt PRINCE2.

Summary

Overall Compatibility
There is a high level of compatibility between the two standards, as one would expect. Broadly speaking, PMBOK is specifying those elements which need to be addressed if we are to take project management seriously, and as such identifying the processes and procedures which need to be put in place. PRINCE2, being a methodology, is offering these processes and procedures in many areas. It is our view that the adoption of PRINCE2 would enhance the implementation of the PMBOK standards by providing greater depth and structure to the establishment of project environments, and by providing a more rigorous approach to the setting up, running and closing down of individual projects. Also the adoption of the PMBOK to a PRINCE2 based organization will help to identify the additional areas which need to be addressed in order to give projects the best chance of success, such as the soft skills needed. On the following page are some specific points regarding PRINCE2 and PMBOK.

Main areas of PRINCE2 added value:

• PRINCE2 provides a process model which is better geared towards the setting-up and managing of a specific project.
• PRINCE2 has a fuller and more coherent approach to planning, including team and stage (phase) levels of plan, and to the setting-up and specification of the project in general.
• PRINCE2 adds significantly to the areas of issue management and change control, and to configuration management.
• PRINCE2 provides improved structure to the areas of plan execution, especially to managing the teams of people doing the work on the project.
• PRINCE2 provides a more detailed and comprehensive method of specifying and controlling quality at the component level.
• PRINCE2 offers a more structured and complete model for the management structures for a project.

Main areas of PRINCE2 contention:

• The main contention is that PMBOK uses the Work Breakdown Structure (WBS) approach, whereas PRINCE2 uses Product Breakdown Structures (PBS) and Product Based Planning (PBP). In practice these are two techniques which are aiming to achieve the same end in very similar ways. We would not consider this to be an obstacle to the use of PRINCE2, but would hope that users would soon see the benefits which would accrue from its use in the PRINCE2 context. It would only require a small adjustment to move from WBS to PBP.
• There are some small naming and wording differences e.g. “stage” for “phase” and “risk log” for “risk register”.

Detailed comparison of PRINCE2 and PMBOK
The following matrices deal with the detailed consideration of how the implementation of PRINCE2 into a project environment based on the PMBOK would affect the effectiveness of that environment.

Under the PRINCE2 compatibility column we have assessed the impact PRINCE2 will have under the following three broad categories:

• Added value
  This means that we consider that using PRINCE2 will in some way significantly add to the effectiveness of PMBOK.
• Neutral
  This indicates that the use of PRINCE2 will make little or no difference, either because it is achieving the same end by a different means, or because it is an aspect of project management which PRINCE2 does not address.
• Contention
  This highlights areas where the PRINCE2 approach directly clashes with the PMBOK approach. We will also give an assessment of the likely implications of this contention.

Section I The Project Management Framework

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch1 Introduction		Neutral. PRINCE2 and PMBOK have similar views on the nature of projects and how they fit with other management areas.
Purpose of the Guide	This says that the purpose is to identify and describe that subset of the PMBOK that is generally accepted, i.e. has widespread consensus about their value and usefulness, and to provide a common lexicon of project management terms.	Neutral.
What is a project?	A general and familiar description of a project's characteristics.	Neutral. PRINCE2 and PMBOK take very similar views on this.
What is Project Management?	After a general description there is a reference to the 12 chapters of the guide in sections I and II.	Neutral.
Relationship to other Management Disciplines	This touches very briefly on areas where there is overlap between PMBOK and General Management (e.g. planning, staffing law, logistics) and Application Area Knowledge (e.g. software development, government contracting, marketing).	Neutral. PRINCE2 specifically avoids most of these overlaps.
Related Endeavors	This is mainly a discussion of the relationship of projects to programs and sub-projects.	Neutral. PRINCE2 assumes a structure of a project made up of stages of work, each element of which constitutes a Work Package, potentially operating as part of a program. This is compatible with the PMBOK view.

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 2 The Project Management Context
Project Phases and the Project Life Cycle	Discussion of phases linked to decision points to review key deliverables and project performance to date. Several examples are given of Representative Project Life Cycles.	Some minor Contention over wording, in that PRINCE2 uses the word ‘stage' rather than ‘phase'. Otherwise, PRINCE2 makes the same distinction between project and product life cycles as PMBOK.
Project Stakeholders	This defines the term ‘stakeholder' and gives examples of who they might be. It makes the point that stakeholders may have different objectives.	Neutral. No major difference to PRINCE2, although PMBOK includes the Project Manager and team members as stakeholders, whereas the interpretation in PRINCE2 stays at a higher level and gives examples of stakeholders outside the project management team.
Organizational Influences	This discusses the possible impact of the overall organization within which the project operates. Several organizational structures are described.	Neutral. PRINCE2 has the same approach but doesn't go into it in the detail of examples that PMBOK does.
Key General Management Skills	This describes key general skills that a Project Manager needs, including Leading, Communicating, Negotiating, Problem Solving and Influencing the Organization.	Neutral. PRINCE2 does not attempt to cover these skills.
Social-Economic-Environmental Influences	This simply says that a Project Manager must be aware of current conditions and trends in Standards & Regulations, Internationalization, Cultural Influences and Socio- Economic-Environmental Sustainability.	Neutral. PRINCE2 does not cover these topics

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch3 Project Management Processes
Project Processes	This is a brief mention that a project is composed of processes, to be expanded in chapters 4 – 12.	Neutral.
Process Groups	PMBOK talks of 5 groups of one or more processes each; initiating, planning, executing, controlling and closing.	Added Value. PRINCE2 provides a clearer and more comprehensive process model for managing a project. It also makes a clearer distinction between the processes required, and the underlying principles behind the carrying out of those processes.
Process Interactions	This takes the 5 process groups and describes them in terms of their inputs, outputs tools and techniques.	Added Value. PRINCE2 provides a more coherent model of the inputs and outputs to the processes. PRINCE2 does not cover Team Development.
Customizing Process Interactions	A simple explanation that the standard processes should be tailored for a project's needs.	Neutral. No contention with PRINCE2.
Mapping of Project Management Processes	A matrix is given, mapping the 39 project management processes of the 5 process groups to the 9 project management knowledge areas.	Neutral. This is similar to mapping PRINCE2 processes to the components and techniques.

Section II The Project Management Knowledge Areas
(This page Ch 4 – Ch 5)

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 4 Project Integration Management	This covers the processes required to ensure coordination of the various project elements, specifically plan development and execution plus change control.
Project Plan Development	There is a general discussion on creating a Project Plan and using Earned Value Management.	Added Value. The PRINCE2 Planning Process (PL) provides a structure for the preparation of a plan, covering how to create the plan, as well as what it should contain. PRINCE2 also takes you through the preparation of Stage (Phase) level and Team level plans. Also the Start-up (SU) and Initiation (IP) processes provide an organized approach to getting a project started and planned. One area of Contention is that PMBOK mentions use of a Work Breakdown Structure, rather than the Product Breakdown Structure used by PRINCE2.
Project Plan Execution	This takes the approach that a project is managed against the Project Plan on a day-to-day basis. Work authorization and status review meetings are mentioned. There is only a brief mention of change requests and gathering information on work results.	Extensive Added Value here. PRINCE2 produces Stage and Team Plan level plans for day-to-day execution of the work, leaving the project plan to show the larger picture. The main Controlling a Stage (CS) and Managing Product Delivery (MP) Processes provide a basis for carrying out the work alluded to in PMBOK. In particular the PRINCE2 concept of Work Packages, and the interfacing between CS and MP implements the Work Authorization System mentioned in PMBOK. PRINCE2 has Checkpoint meetings which will implement the Status review meetings. The PRINCE2 CS2/3/4 processes provide detail about gathering progress information, and capturing and examining change requests.
Integrated Change Control	This provides an overview to change control and configuration management.	Added Value. PRINCE2 offers a detailed change control approach and detail on the approach to configuration management, integrated into the project management processes.

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 5 Project Scope Management	This covers the scoping of a project or phase and controlling any changes to that scope.
Initiation	This covers the initiation of a project or the authorization to continue into the next phase. It mentions tools and techniques, such as project selection methods, benefit measurement methods, mathematical methods and expert judgement. The output is a Project Charter.	Added Value. PRINCE2 provides the two processes Staringup a Project (SU) and Initiating a Project (IP), which together give a structured approach to the work that has to be done here with regard to the start of the project. The re-authorization which is needed an the commencement of a new phase is handled in detail by the Managing Stage Boundaries (SB) process, together with Directing a Project (DP) which deals with the senior management decision making processes. The Project Initiation Document (PID), which results from the IP process, equates to the Project Charter, but is wider in scope, e.g. identifying the whole project management team, not just the Project Manager, including the Project Plan, Business Case, risk evaluation and controls. One small area of Contention is over wording. Where PMBOK refers to a Product Description, this is different, and more specific than the PRINCE2 use of this term.
Scope planning	This covers the ‘progressive elaboration' of project scope. The inputs are the Product Description, the Project Charter and the initial definition of constraints and assumptions. The outputs are the Scope Statement and Scope Management Plan. The latter describes how scope change will be managed and includes an assessment of the expected stability of the project (how likely to change, how frequently and how much).	Added Value. PRINCE2 provides a good means of defining the functional scope of a project, together with interfaces to other projects or business aspects, via the Product Breakdown Structure. This is built into the Project Plan which forms part of the Project Initiation Document (PID). The management of scope change is dealt with in PRINCE2 by change control, whose method is described as part of the Project Quality Plan in the PID. In PRINCE2 an assessment during initiation of the volume of change expected leads to consideration of a Change Authority and Change Budget. One possible area of Contention is that PMBOK sees this as happening after the Project Charter has been produced, whereas PRINCE2 makes it part of the information needed before authorizing the project.
Scope definition	This is the subdivision of the major project deliverables into smaller, more manageable components. The outputs are work breakdown structures.	There is some Contention here, in that PMBOK refers to Work Breakdown Structure, which identifies the things to be done, whilst PRINCE2 uses Product Breakdown Structure, part of the Product Based Planning (PBP) technique, which identifies the things which need to be produced. The techniques are very similar apart from that, and as the product is the output from the work, the effective difference is small. However, we have found that there are significant benefits to be gained by following the products rather than the activities, not least the ability to assign quality specifications, so would content that adoption of PRINCE2 PBP would produce Added Value to a PMBOK environment. There is further Added Value via the Planning (PL) process, and the PBP technique, by taking the Product Breakdown Structure through a set of steps which end with the creation of a Project Plan.
Scope verification	This is described as ‘the process of obtaining formal acceptance of the project scope by the stakeholders'. It refers to the acceptance of the work results.	Added Value. This is dealt with in depth within the Managing Stage Boundary (SB) and Authorizing Stage Plan (DP3) processes for products produced during the project, and Closing a Project (CP) and Confirming Project Closure (DP5) processes for the final end products.
Scope change control	This is a high level view of the need for change control, and for agreeing on and managing scope change.	Added Value. PRINCE2 has both a change control component, and a change control technique, together with processes (CS3 and CS4) to capture and analyze change requests, and a series of processes to obtain decisions on changes and manage their implementation. This includes an escalation element (Exception) to ensure senior management agreement.

Section II The Project Management Knowledge Areas (This page Ch 6 -Ch 8)

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 6 Project Time Management
Activity Definition	Identifying and documenting the specific activities required to produce the deliverables shown in the WBS. Part of the activity list should be descriptions of each activity to ensure that the project team members will understand how the work is to be done.	Added Value. Elements of the Planning (PL) process provided added structure to this. The activity description equates to a Product Description which provides a disciplined structure for it.
Activity Sequencing	The identification and documentation of interactivity logical relationships. This suggests network planning as a tool.	Neutral. Covered by elements of PL. PRINCE2 incorporates network planning as a technique, suggesting the use of appropriate software tools.
Activity Duration Estimating	Estimating both the work periods required to complete an activity and the elapsed time.	Neutral. PMBOK and PRINCE2 say very similar things.
Schedule Development	The iterative process of determining start and finish dates.	Neutral.
Schedule Control	A. Influencing the factors that create schedule changes to ensure that changes are agreed upon, B. determining that the schedule has changed and C. managing the actual changes when and as they occur.	Added Value. Covered in greater detail in the change control approach, processes such as CS2/3/4/5/7 and 8, and products such as Project Issues and Exception Reports and Plans.

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 7 Project Cost Management
Resource Planning	This covers determining what physical resources should be used.	Neutral.
Cost Estimating	This covers the estimate of the costs of the resources needed to complete project activities. One output is a cost management plan, stating how cost variances will be managed.	Neutral.
Cost Budgeting	This covers the allocation of the overall cost estimates to individual work packages.	Neutral.
Cost Control	Watching for the impact on cost of proposed change requests and other reasons for plan slippage. The process refers to Earned Value Management as a tool for measuring project performance.	Added Value. Covered in greater detail in the change control approach, processes such as CS2/3/4/5/7 and 8, and products such as Project Issues, Exception Reports and Exception Plans. PRINCE2 also mandates the setting of tolerance levels of cost and time aspects of a project. These specify the allowable variation within which the Project Manager can work. PRINCE2 does not mandate EVM or any other tool for performance management, but works happily with any such tools used.

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 8 Project Quality Management	The chapter is intended to be compatible with ISO 9000, TQM and Continuous Improvement.
Quality Planning	This involves identifying what quality standards are relevant to the project and determining how to satisfy them. The main output is a quality management plan.	Some small but highly significant Added Value in the form of PRINCE2 product descriptions, which provide a mechanism for specifying quality requirements at the lower levels of individual project products and deliverables. This is a very powerful way of establishing quality standards and checks at the component level which, of course, is where quality actually needs to happen. PRINCE2 also formalizes Customer Quality Expectations in a way that PMBOK does not.
Quality Assurance	PMBOK uses the phrase to cover ‘all the planned and systematic activities implemented within the quality system to provide confidence that the project will satisfy the relevant quality standards.' It covers reviews of quality results and audits of the other quality management activities.	Some possible Contention here. PRINCE2 separates the organization-wide Quality Assurance role – setting and monitoring the use of standards corporate wide – from what it terms Project Assurance. Part of this role is to perform the quality assurance functions required by the project, which includes the planning of resources for quality work and monitoring the results from the project. However, PRINCE2 anticipates that there will be audits from an organization wide quality assurance group, if such a body exists, independent of the project, and offers a role for this group as part of Project Assurance. We believe this may well provide Added Value in many instances, especially as it provides the flexibility to be used in environments where there is no formal Quality Assurance, by identifying the actions that need to be taken by the project in that instant. PRINCE2 also offers a quality file for all quality documents, which can be used for quality audits.
Quality Control	This involves monitoring specific project results to determine if they comply with relevant quality standards.	Added Value. PRINCE2 provides mechanisms for quality control via: (1) the PRINCE2 Product Description. (2) formal Work Package which includes statements of quality requirement, quality control methods, and quality checking activities and resources, (3) reporting via the Quality Log, (4) a useful quality checking technique of Quality Review which can be used to handle the more subjective quality criteria involving individual judgement, (5) the policing role of Project Assurance to underpin and check the process.

Section II The Project Management Knowledge Areas (This page Ch 9 -Ch 12)

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 9 Project Human Resources Management
Organizational Planning	This covers identifying, documenting and assigning project roles, responsibilities and reporting relationships.	Added Value. PRINCE2 offers a project management organization structure with standard descriptions for each role to be tailored for each specific project. It also embeds the design and appointment of the various roles into the process model where appropriate, and clearly allocates all the identified project management processes to the appropriate role.
Staff Acquisition	This covers negotiation, preassignment and procurement of resources.	Neutral. PRINCE2 does not cover this.
Team Development	This considers team building, personal training, reward and recognition systems.	Largely Neutral in that PRINCE2 does not cover this area specifically. However, in practice there can be Added Value , in that the use of Work Packages and PRINCE2 Product Descriptions has a positive affect on staff motivation. This is by ensuring that all parties are happy about the work that has to be performed, and have bought into the timescales, costs and quality requirements to produce it. We also find that being able to measure performance against these expectations provides a more objective basis for reward and recognition systems.

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 10 Project Communications Management	This covers the timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project information.
Communications Planning	This involves determining the information and communications needs of the stakeholders.	Largely Neutral. PRINCE2 covers this via the Communication Plan, part of the PID.
Information Distribution	This covers the implementation of the communications management plan as well s responding to unexpected requests for information.	Largely Neutral. The implementation is embedded in the relevant processes and PRINCE2 documents, and the Project Issue procedure covers any unexpected requests for information.
Performance Reporting	This involves the collection and dissemination of performance information, plus the maintenance of the data in an organized fashion.	Again largely Neutral. This is embedded in the relevant PRINCE2 processes. PRINCE2 offers a filing structure in which to keep the information.
Administrative Closure	This covers the documentation of results to formalize acceptance of the product and the archiving of project records.	Some Added Value. This is fully covered in the Closing a Project (CP) process, which is more specific about what the documents should be and what they should contain.

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 11 Project Risk Management	The systematic process of identifying, analyzing and responding to project risk.
Risk Management Planning	This covers deciding how to approach and plan the risk management activities for a project.	Neutral.
Risk Identification	Determining which risks might affect the project and documenting their characteristics. It discusses techniques such as brainstorming and Delphi .	Neutral. Covered by the Management of Risk component within PRINCE2.
Qualitative Risk Analysis	Assessing the impact and likelihood of identified risks.	Neutral. Covered as above. PRINCE2 offers the Risk Log to assist in monitoring risks.
Quantitative Risk Analysis	The numerical analysis of the probability and impact of a risk. Sensitivity and decision tree analysis are briefly described.	Neutral. PRINCE2 does not mandate any particular analysis techniques.
Risk Response Planning	This covers the development of options to counteract risks, including the assignment to individuals to take responsibility for each agreed risk response.	Neutral. One very small area of possible Contention is that PMBOK talks of a Risk Register, PRINCE2 uses the term Risk Log.
Risk Monitoring & Control	Keeping track of identified risks and identifying new ones, ensuring the execution of plans and evaluating their effectiveness in reducing risk.	Some minor Added Value , in that PRINCE2 embeds the risk management activities into the relevant processes.

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
Ch 12 Project Procurement Management	This covers the processes to acquire goods from outside the customer organization.	Most of this is not covered. PRINCE2 regards this as a specialist activity, rather than a generic part of project management.
Procurement Planning	This is the process of identifying which project needs can be best met by procuring products or services outside the project organization. It includes an overview of make-or-buy analysis and contract type selection.	Neutral. Not really covered in PRINCE2.
Solicitation Planning	This covers the preparation of documents needed in order to approach prospective suppliers, including evaluation criteria.	Neutral. Not covered
Solicitation	This covers the obtaining of bids and other responses from prospective suppliers, including any qualified seller lists, bidder conferences and advertising.	Neutral. Not covered.
Source Selection	This covers from the receipt of bids and the application of the evaluation criteria to the selection of a provider, including contract negotiation	Neutral. Not covered
Contract Administration	This is the process of ensuring that the seller's performance meets contractual requirements.	Added Value. PRINCE2 covers all aspects of this via the Work Package mechanism and related reporting processes, except for the payment system, although payments can be linked to product approval or end stage assessments.
Contract Closeout	This is similar to administrative closure, described earlier. It involves both product verification and the updating of records and their archiving.	Neutral. Not covered.

Section III Appendices

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
A. The Project Management Institute Standards Setting Process. B. Evolution of PMI's “A Guide to the Project Management Body of Knowledge”. C. Contributors and Reviewers of PMBOK Guide 2000 Edition. D. Notes. E. Application Area Extensions. F. Additional Sources of Information on PMBOK. G. Summary of Project Management Knowledge Areas.	These are PMBOK-specific, to do with the PMBOK manual rather than project management per se.	Neutral. PRINCE2 has little relevance or input into these aspects.

Glossary

PMBOK Section	Summary of PMBOK Contents	PRINCE2 Compatibility
	This holds a description of the glossary inclusions and exclusions; A list of common acronyms; Definitions of project management terms.	Some limited Contention as itemized above, where PMBOK and PRINCE2 use different terms, or the same term to mean different things.

Reprinted from the from pm4success.com web site.
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