PRINCE2 5 principle - Establish governance

This principle is about appropriate project governance. Other name of this principle - manage by exception. It means that relevant level of management must have different involvement approach in the project as it is critical for efficient project governance and management. This principle require for each project to establish A) project and stage objectives using these 6 KPI (time, cost, scope, quality, risk, benefit) with B) tolerances and C) apply those to establish limited authority & exception management.

PRINCE2 require to use exceptions🔴. Exception management is key item in governance as by using exceptions🔴 managers are able to save their management time and react only when really needed.

PRINCE2 require to set tolerances that initiate exceptions🔴 for 1) project 2) stages. Team level may be used in bigger projects but in general it is optional.

PRINCE2 require to set 6 objective KPI for project and stages ( project objective KPI are provided below as example):

Benefit KPI - Earn 138500 EUR profit from project during next 3 year period with tolerance +- 5%.

Scope KPI - Deliver products A) .... B) ... and C... with key quality acceptance criterias... and MoSCoW prio....

Time KPI - Deliver project products A), B), C) by deadline yyyy.mm.dd with tolerance of 2 weeks.

Cost KPI - Project total budget is 785000 EUR with tolerance +15000 EUR

Quality KPI - A) & C) product acceptable noise level should be 70 dB with tolerance of +- 5 dB. Product B) should work post project for 10 years with tolerance of +- 1 year.

Risk KPI - Overall mitigated risk level should be 50% or less (monetary value) compared to expected project profit with tolerance +10%

This principle can be implemented efficiently only by establishing these roles 1) Project owner/executive, 2) Project steering comittee, 3) Project manager, and 4) sometimes when needed we should involve for help Project assurance.

Other PRINCE2 principles:

• 1 Principle - Continued business justification
• 2 Principle - Roles & responsabilities
• 3 Principle - Focus to product
• 4 Principle - Learning organization
• 6 Principle - Manage by stages
• 7 Principle - Tailor to suit project

Recommended solutions for Jira cloud:

• Advanced T Risk Manager🔺 (that is based on PRINCE2 practices) Video here & DOWNLOAD here
• Free T Risk lite app
• Free T Progress lite app