Prince 2 Foundation Flash Cards

What is a project in PRINCE2?

A temporary organization created to deliver one or more business products according to an agreed business case.

• Why: The temporary organization exists to deliver agreed business products rather than carry out ongoing operations.

What are the five characteristics of a project?

1. Change

2. Temporary

3. Cross-functional

4. Unique

5. Uncertainty.

• Why: These distinguish project work from business as usual.

What does 'temporary' mean for a project?

It has a defined end once the desired change has been implemented.

• Why: Business as usual then continues in its changed form.

Why is a project cross-functional?

People with different skills work together to introduce change.

• Why: The change can affect people beyond the temporary project team.

Why is every project unique?

Each differs in some way, such as people, location, product, or timeframe.

• Why: Similar projects can follow familiar patterns without being identical.

What does uncertainty mean for project work?

Projects bring threats and opportunities beyond those of normal operations.

• Why: Change and uniqueness introduce uncertainty.

What are the seven project performance aspects?

1. Benefits;

2. Costs;

3. Time;

4. Quality;

5. Scope;

6. Sustainability;

7. Risk.

• Why: PRINCE2 manages performance against all seven aspects.

Which performance aspect concerns whether deliverables are fit for purpose?

Quality.

• Why: Meeting time and cost targets is insufficient if the product fails requirements.

Which performance aspect considers environmental targets?

Sustainability.

• Why: Targets concern both project work and its products.

Which performance aspect concerns the permitted boundaries of what is included?

Scope.

• Why: Scope describes what the project includes and is subject to control.

What are the five integrated elements of PRINCE2?

1. Principles

2. People

3. Practices

4. Processes

5. Project context.

• Why: They interact to make the method fit the project.

How many principles are there in PRINCE2?

Seven.

1. Continued business justification

2. Learn from experience

3. Defined roles, responsibilities, and relationships

4. Manage by stages

5. Manage by exception

6. Focus on products

7. Tailor to suit the project

• Why: All seven must be applied for a project to be managed using PRINCE2.

How many practices are there in PRINCE2?

Seven

1. Business case

2. Organizing (formerly Organization)

3. Plans

4. Quality

5. Risk

6. Issues

7. Progres

• Why: Practices cover essential aspects of management throughout the lifecycle.

How many processes are there in PRINCE2?

Seven.

1. Starting up a project

2. Directing a project

3. Initiating a project

4. Controlling a stage

5. Managing product delivery

6. Managing a stage boundary

7. Closing a project

• Why: Processes provide activities to direct, manage, and deliver the project.

What is the purpose of project context in PRINCE2?

To tailor the application of principles, people, practices, and processes to the project.

• Why: Context includes scale, delivery method, commercial arrangements, and sustainability.

What does 'ensure continued business justification' require?

Sufficient justification at initiation and throughout the project.

• Why: A project should stop if continued investment is no longer justified.

When should lessons be sought in a PRINCE2 project?

From prior projects and throughout the current project.

• Why: Lessons are recorded (logged), applied, and shared for future use.

What is required by 'define roles, responsibilities and relationships'?

Agreed responsibilities and relationships representing business, user, and supplier interests.

• Why: Clear accountability and engagement support effective decisions.

What does 'manage by stages' mean?

Plan, monitor, and control the project one management stage at a time.

• Why: Stage boundaries allow decisions about continued investment.

What does 'manage by exception' mean?

Delegate authority within agreed performance tolerances.

• Why: Escalation is needed when a tolerance breach is forecast.

What does 'focus on products' emphasize?

Define and deliver products against user quality expectations and requirements.

• Why: A product focus clarifies what must be delivered before planning activities.

What does 'tailor to suit the project' mean?

Adapt PRINCE2 to project size, complexity, risk, delivery method, and environment.

• Why: Tailoring makes the method proportionate without dropping principles.

Is any PRINCE2 principle optional?

No.

• Why: All seven principles determine whether a project is genuinely using PRINCE2.

What should happen if a project's business justification disappears?

The project should be stopped.

• Why: Continued business justification is required through completion.

What is the relationship between tolerances and escalation?

Tolerances set delegated limits; forecast breaches are escalated.

• Why: This is the basis of managing by exception.

Why are stage boundaries important?

They allow progress and ongoing justification to be reviewed before authorizing further work.

• Why: The project is controlled through staged investment decisions.

What is the difference between tailoring and ignoring PRINCE2?

Tailoring adapts how the method is used; ignoring required principles undermines PRINCE2.

• Why: All principles still apply to a tailored project.

Who counts as 'people' in PRINCE2?

Those working on the project and those affected by it.

• Why: PRINCE2 treats relationships and change impacts as central.

Why are people central to PRINCE2?

Projects deliver change that affects people's work and responsibilities.

• Why: Success depends on team capability and stakeholder relationships.

What is change management?

Helping an organization transition from its current state to a target state. Why: The project needs to consider how people adopt the change.

What is a stakeholder?

A person, group, or organization that can affect or be affected by the project, or perceives that it can.

• Why: Stakeholders can sit inside or outside the formal project team.

What are the three principal project stakeholder interests?

1. Business (executive, can only be on)

2. Users (senior user)

3. Suppliers (senior supplier)

Why: The interests are reflected in project governance.

Why can leading a temporary project team be challenging?

Team members may cross organizational boundaries and lack established reporting relationships.

• Why: Leadership must build alignment and trust.

What is cultural intelligence in project teamwork?

The ability to relate and work across cultures in the project ecosystem.

• Why: It supports cooperation among diverse participants.

Why is team building important?

It builds trust and compatible ways of working.

• Why: Temporary teams need to establish effective relationships quickly.

What is the purpose of a communication management approach?

To define how and how often information and feedback flow across the project ecosystem.

• Why: Communication should support stakeholder engagement and alignment.

Why should project communication be two-way?

Feedback helps shape and align the project with stakeholder needs.

• Why: Communication is not just one-way reporting.

What is the purpose of the business case practice?

To judge whether the project is and remains desirable, viable, and achievable.

• Why: It supports decisions about continued investment.

What is an output?

A tangible or intangible deliverable of an activity.

• Why: An output is produced by work, not necessarily a realized benefit.

What is a capability?

The completed set of project outputs required to deliver an outcome.

• Why: Outputs together enable changed operations.

What is an outcome?

A result of change affecting real-world behaviour or circumstances.

• Why: Outcomes follow when capabilities are embedded in use.

What is a benefit?

A measurable improvement from an outcome that contributes to business objectives.

• Why: A benefit must be perceived as an advantage by the investing organization.

What is a dis-benefit?

A measurable decline from an outcome perceived as negative by the investing organization.

• Why: It detracts from business objectives.

What is a business objective?

A measurable outcome demonstrating progress against organizational strategy.

• Why: Projects should contribute to relevant objectives.

What does the business case document?

The justification for the project, considering estimated costs, benefits, and risks.

• Why: It is used to assess whether investment remains justified.

What does the benefits management approach define?

Actions to achieve outcomes and confirm that benefits are realized.

• Why: Benefits may need to be reviewed after the project closes.

What is the difference between an output and an outcome?

An output is delivered by an activity; an outcome is the resulting change.

• Why: Producing a deliverable alone does not guarantee changed behaviour.

How do outputs relate to benefits?

Outputs enable capabilities, which produce outcomes that can lead to benefits.

• Why: The relationship explains how project investment creates value.

Why should the business case be reviewed during a project?

Costs, risks, and expected benefits may change.

• Why: Review supports decisions on continued investment.

What is the purpose of the organization practice?

To establish the project's accountability and responsibility structure.

• Why: It defines who is responsible for project management and governance.

Which role represents the business interest on the project board?

Executive.

• Why: The Executive represents the investment and business justification perspective.

Which role represents the user interest on the project board?

Senior User.

• Why: The Senior User represents those who will use or benefit from the products.

Which role represents the supplier interest on the project board?

Senior Supplier.

• Why: The Senior Supplier represents those providing skills and resources to deliver products.

What are the three project board interests?

1. Business

2. User

3. Supplier

• Why: They are represented by Executive, Senior User, and Senior Supplier.

What is the purpose of the project board?

To direct the project and make key authorization decisions.

• Why: It provides governance rather than day-to-day management.

Who manages the project day to day?

Project Manager.

Why: The Project Manager operates within authority delegated by the project board.

Who manages delivery of an assigned work package?

Team Manager or assigned team member.

• Why: Responsibility is passed through the work-package description.

Why are defined project responsibilities important?

They clarify accountability, decision-making, and interfaces.

• Why: Unclear responsibilities create gaps and duplication.

Can suppliers be external to the business?

Yes.

• Why: The supplier interest includes internal or external contributors.

Can users be outside the investing business?

Yes.

• Why: Users can be external end users or other people impacted by products.

What does the business stakeholder interest focus on?

Ensuring investment provides value and remains justified.

• Why: Business justification must be maintained throughout the project.

What is the purpose of the plans practice?

To facilitate communication and control by defining the means of delivering products.

• Why: Plans describe what, how, when, by whom, and at what cost products will be delivered.

What is a project plan used for?

To provide a high-level view of the whole project.

• Why: It supports project-level monitoring and decisions.

What is a stage plan used for?

To provide the basis for managing a management stage.

• Why: It contains the detail needed for stage-level control.

What is a team plan used for?

To support delivery of one or more work packages.

• Why: Its use and detail depend on project needs.

What is an exception plan?

A plan prepared to replace an existing plan when tolerances are forecast to be exceeded.

• Why: It is submitted for approval at the appropriate management level.

What is product-based planning?

A planning approach that identifies and analyses products before scheduling delivery work.

• Why: It keeps planning focused on required outputs.

What is a project product description?

A description of the overall project product, including user quality expectations and acceptance criteria.

• Why: It helps define what the project must deliver for acceptance.

What is a product breakdown structure?

A hierarchy of products to be produced within a plan.

• Why: It shows the deliverables, not the sequence of activities.

What are acceptance criteria?

Prioritized conditions the project product must meet for user acceptance.

• Why: They provide the basis for confirming acceptance.

Why is defining products before activities useful?

It helps ensure that work is planned around agreed deliverables.

• Why: This supports the focus on products principle.

What does a plan support besides scheduling?

Communication, monitoring, and control.

• Why: It provides a baseline against which progress is assessed.

What is the distinction between a project plan and stage plan?

The project plan covers the whole project; a stage plan details one stage.

• Why: Different management levels need different planning detail.

What is the purpose of the quality practice?

To document user requirements and establish how they will be met.

• Why: Quality is planned and controlled against agreed requirements.

What is quality in PRINCE2?

The degree to which inherent characteristics fulfil requirements.

• Why: Quality is about meeting defined requirements, not simply adding features.

What are user's quality expectations?

A statement of the quality expected from the project product.

• Why: They are captured in the project product description.

What is a requirement?

A need or expectation documented in an approved management product.

• Why: Requirements provide a basis for specifying and assessing products.

What are quality specifications?

Measures used for quality control and levels a finished product must meet.

• Why: They turn requirements into testable conditions.

What is the difference between acceptance criteria and quality specifications?

Acceptance criteria apply to accepting the overall project product; specifications describe quality measures for products.

• Why: Both support determining whether products meet expectations.

What does the quality management approach describe?

Quality techniques, standards, and responsibilities for meeting specifications and acceptance criteria.

• Why: It explains how quality will be managed.

What is quality control?

Activities used to check whether products meet defined quality specifications.

• Why: It provides evidence of product conformity.

What is quality assurance?

Independent confidence that appropriate quality management arrangements are in place.

• Why: It is typically managed independently of the project team.

Why are quality expectations established early?

They guide product definitions, planning, and acceptance.

• Why: Late agreement can cause rework and disputes.

What is the purpose of the risk practice?

To identify, assess, and control uncertainty affecting project objectives.

• Why: Effective risk management improves the likelihood of success.

What is a risk?

An uncertain event or set of events that would affect objectives if it occurred.

• Why: A risk can be a threat or an opportunity.

How is a risk measured?

By probability and magnitude of impact on objectives.

• Why: Both likelihood and consequence matter.

What is a risk owner?

The person responsible for responding to a risk.

• Why: Ownership provides accountability for the overall response.

What is a risk action owner?

The person assigned agreed actions to respond to a risk.

• Why: Also called a risk actionee.

What is risk probability?

The estimated chance that a risk will occur.

• Why: It may be assessed using likelihood or frequency.

What is risk impact?

The estimated effect on objectives if the risk occurs.

• Why: Impact considers the consequence rather than likelihood.

What is risk proximity?

How near in time a risk might occur.

• Why: A risk may need attention because it is imminent.

What is risk velocity?

How quickly a risk would affect objectives if it occurred.

• Why: Fast-impacting risks can require rapid responses.

What is risk exposure?

The degree to which an objective is at risk.

• Why: Exposure can be positive or negative.

What is risk appetite?

The amount and type of risk the business is willing to take.

• Why: It reflects willingness to pursue objectives under uncertainty.

What is risk tolerance?

A measurable threshold for acceptable outcomes for an objective at risk.

• Why: It uses the same units as the performance objective.

What is a risk budget?

Money allocated to specific risk management responses.

• Why: It may fund contingent actions.

What is recorded in the risk register?

Identified project risks, including their status and history.

• Why: It supports tracking and managing uncertainty.

What does the risk management approach define?

Procedures, techniques, standards, and responsibilities for risk management.

• Why: It provides a consistent way to manage risks.

What are the five elements of the risk management technique?

1. Identify;

2. Assess

3. Plan

4. Implement

5. Communicate.

• Why: Communication supports all the risk activities.

What is the purpose of the issues practice?

To collect and assess issues and control changes to the project baseline.

• Why: It manages events that have occurred and proposed changes.