Executive Summary
The aim of this report is to compare two project management methodologies, Scrum and PRINCE2, where the key similarities and differences are summarized. The methodology used in the report is a review of the literature. Therefore, past studies and scholarly publications are explored as the key sources of data. The literature has been searched in the major project management databases where recent literature on the two methodologies colt be found. In terms of content, the report begins by presenting a summary of the two methodologies. The next two sections discuss each of the methodologies independently, which is followed by an evaluation of both. The basic conclusion is that both methodologies have their origins in the IT sector, which is also the key area in which the two approaches are deployed. Additionally, their applicability in certain sectors differs due to the differences in their characteristics.
Introduction
Project management is an increasingly evolving field that necessitates developing and applying tools and methodologies. By definition, the term ‘project management methodology’ implies the system of techniques, procedures, and principles that help people working in projects accomplish their tasks seamlessly. An efficient methodology will allow project managers to manage projects effectively from start to close. A range of methodologies is available for selection, where each of them differs in terms of structural organization, deliverables, software, and workflows. The focus of this paper is to compare the PRINCE2 (PRojects IN Control Environment) methodology with Scrum. A summary of each is given, which is followed by a critical evaluation of both methodologies. Examples will also be used to complete a critical evaluation of PRINCE2 and Scrum, paying attention to such aspects as differences in principles and project deliveries.
Project Management Methodology
Summary of Characteristics
PRINCE2 stands for PRojects IN Control Environment, which is considered a standard approach to project management. The key characteristics of this methodology include that it is process-oriented and is based on three components: principles, themes, and processes (Vaníčková, 2017; Esteki, Gandomani and Farsani, 2020). Additionally, it is universally recognizable and more widespread across Europe, the United Kingdom, and Australia (Jamali and Oveisi, 2016). As a process-based approach, PRINCE2 comprises seven key processes, which include activities designed for the control, management, and delivery of the projects (Mousaei and Gandomani, 2018). PRINCE2 was developed in an IT setting in a British government office, from which it evolved to become a generic methodology applicable to all types, scales, cultures, organizations, and geographies (McGrath and Whitty, 2020; Jovanovic and Beric, 2018; Perrier, Benbrahim and Pellerin, 2018). Lastly, PRINCE2 works by dividing projects into several stages, where each phase comprises its own plans and processes, as well as inputs and outputs.
Scrum can be described as a project management methodology that suggests processes and principles to help improve the delivery of projects. Scrum is people-oriented and one of the most common approaches to agile projects (Chantit and Essebaa, 2021; Vaid and Ghose, 2020). Projects are broken down into smaller tasks that can be accomplished within fixed periods called ‘sprints’ (Hildago, 2019). Project teams are also created, which are often regarded as agile teams (Chaouch, Mejri and Ghannouchi, 2019). This methodology also requires effective communication and coordination between the stakeholders (Prasetya, Suharjito and Pratama, 2021). Other characteristics of Scrum, as summarised by McLellan et al. (2021), include that management does not interrupt teams during a work cycle, teams measure their own performance, and teams estimate the times that work takes. The main components are product backlog and sprint backlog, which define user product stories lists and items completed in each sprint, respectively (Jiménez, Afonso and Fernandes, 2020; Streule et al., 2016). Therefore, Scrum involves small cross-functional and self-managing teams that help improve the speed of development.
PRINCE2
PRINCE2 is a project management methodology first developed in the United Kingdom to help manage IT projects. It was later expanded to cover most other projects across multiple industries (Jovanovic and Beric, 2018). This methodology presents projects with seven key principles to follow. These are continued business justification, defining roles and responsibilities, learning from experience, managing by stages, focusing on products, managing by exception, and tailoring to suit specific projects (McGrath and Whitty, 2020). These principles can be described as universal because they apply to all projects. Additionally, they are also self-validating since they are proven through practice over time. Lastly, they are empowering in that they offer practitioners more confidence and the ability to dictate and shape project management. It is also important to acknowledge that PRINCE2 principles can be regarded as best practices for all those involved in the projects. Those using PRINCE2 are obligated to adhere to and apply all these principles.
As one of the most popular methodologies, PRINCE2 is based on seven key processes of a project: starting, directing, initiating, controlling, managing product delivery, managing stage boundary, and closing a project. Esteli, Gandomani and Farsani (2020) state that processes describe the lifecycle of the project from initiation to closure, as well as assess the project benefits. Additionally, PRINCE2 processes highlight the recommended activities and responsibilities and offer a guide on how to adapt the project to a particular environment. PRINCE2’s flexible process-oriented approach can have up to 40 activities throughout the different processes (Perrier, Benbrahim and Pellerin, 2018, p. 698). Among the most important process is project control, which also applies to most other methodologies. Control plays a key role in the assignment of work, monitoring tasks, dealing with emerging issues, making corrections where necessary, and reporting project progress to the board (Perrier, Benbrahim and Pellerin, 2018). Therefore, it is apparent that PRINCE2 focuses on ensuring the effective performance of all project activities.
From the process of project control, it can also be argued that PRINCE2 can be used as an effective tool for risk management. According to Perrier, Benbrahim and Pellerin (2018), eight activities are involved in the controlling process, all of which touch on the themes of project inputs and outputs. Authorizing a work package involves assigning and agreeing on the work with the team leader. The package then will need to be reviewed to check progress and received to check quality and configuration. Other activities are reviewing stage status, reporting highlights, assessing issues and risks, reporting the issues and risks, and taking corrective actions.
PRINCE2 themes explain those project management aspects that need to be managed consecutively with the project itself. Figure 1 below has been used by Esteki, Gandomani and Farsani (2020) to highlight the key themes in a project environment. The seven themes are the business case, risk, plans, progress, change, quality, and organisation. According to Takagi and Varajão (2019), each of these themes comprises a specific approach that is characterized by well-defined responsibilities and roles. The themes are also supported by the best practices encompassed by the seven principles of the PRINCE2 methodology. Overall, the themes help the project managers determine which activities to undertake in each of the project activities. In other words, all activities have to consider such aspects as risks, quality, change, and progress. It is also important to highlight that the themes are performed by the processes over the whole lifecycle of the project.
Scrum Methodology
Scrum is another project management methodology widely used across multiple projects despite stemming from an IT setting. The methodology has been described as a process that adds life to teams in agile projects (Vaid and Ghose, 2020). The argument for this position is that Scrum offers energy, accuracy, transparency, and focus to the project development teams. Many of the scholarly works on Scrum have attempted to establish the effectiveness of this methodology in agile projects. Scrum depicts special properties and features that make it possible for agile projects. Examples include flexibility, self-organization, autonomy, and adaptivity (Hildago, 2019). Many projects take place in complex and rapidly changing environments. The flexibility of Scrum offers the most appropriate solution to this challenge because it allows improved communication and teamwork. The self-organization in Scrum projects means that interaction and feedback among the functional teams are made possible, which also makes it one of the best methodologies. Adaptivity means that the Scrum methodology can be applied to different types of projects.
Regardless of the context or type of project, Scrum methodology evaluates and improves the outcomes of product development by adapting the processes to make them more effective. Initially, Scrum was developed for use by teams within an organization, which explains why most people believe that it is the only context of the application. With many companies outsourcing certain projects, Scrum has also proven to be effective when applied across multiple firms (Prasetya, Suharjito and Pratama, 2021). However, it is important to understand that implementing Scrum necessitates intense communication and coordination between the product development teams and the owner.
Scrum methodology comprises three core elements: roles, artifacts, and events. Scrum roles describe the stakeholders and their roles in project management. For example, the Scrum team comprises all those involved in a project, including the owner, development team, and Scrum master. The product owner represents the client and is responsible for pursuing maximum value from the project. The scrum master can be described as the leader in project management because the key role played is to ensure the Scrum team members understand how the framework works. It is important to emphasize that the key decisions are made by the cross-functional and self-organizing teams in all critical matters, including project activities, time, and outputs. The main focus of the team is ensuring an improved delivery of the project.
Scrum artifacts comprise elements that make up the framework, in this case, the product backlog, the sprint backlog, and the product increment. A product backlog lists all items within a project, where each item is subdivided into tasks. As mentioned earlier, Scrum methodology works by breaking down projects into smaller tasks that can be handled autonomously by a self-organizing team. The product backlog can be described as the basis by which the teams are formed and activities for each are outlined. Sprint backlog comprises a list of items that the project teams commit to achieving in any given sprint. It is important to highlight that a sprint backlog is forecasted by the project team based on the next increment and the work needed to achieve it. The product increment is delivered by the team at the end of every sprint and has to meet the pre-agreed deliverable elements. In other words, product increment is the sum of all product backlog items completed in a sprint. Lastly, Scrum events describe the various actions where the Scrum team can apply the key Scrum factors, namely adaptation, inspection, and transparency (Streule et al., 2016). Sprint planning is a critical aspect of Scrum archives, where the team determines the work and items to be accomplished by the teams. The term ‘sprint’ entails fixed timeframes of incremental and iterative work cycles.
From the description of Scrum methodology, it is apparent that the key principles and tools revolve around facilitation roles, development sprints, and incremental development. For example, Scrum masters can be described as coordinators whose focus is on aligning or streamlining the interactions between the Scrum teams. Additionally, the methodology largely involved dividing large projects into smaller, easily manageable activities that can be performed in incremental and iterative sequences. However, it is important to highlight that incremental and iterative sprints are not synonymous with the waterfall methodology, which has often been criticized for its lack of responsiveness (Hildago, 2019). In this case, adaptability and flexibility are among the key reasons why Scrum is widely applied in agile projects.
Evaluation
PRINCE2 and Scrum methodologies trace their evolution from IT, meaning that product development projects in this field will most commonly deploy either of the two methodologies. However, the literature explored indicates that the two methodologies can be replicated across all types of projects, cultures, and organizations. In this case, the evaluation considers the applicability of PRINCE2 and Scrum in engineering infrastructure projects. The case of PRINCE2 in engineering projects has been presented by McGrath and Whitty (2020), which contradicts earlier claims that PRINCE2 does not work well with these types of projects. However, the 17 features examined indicate that 15 experienced difficulties while the other two showed inconsistencies that did not pose significant difficulties. However, the applicability of PRINCE2 methodologies in these projects does not appear to be as smooth as it would be in IT projects.
One of the main engineering infrastructure projects involves the design and construction of structures. The applicability of Scrum methodologies in the construction industry has been examined by such scholars like Streule et al. (2016), whose focus was on establishing whether Scrum can help improve the design phase. Unlike PRINCE2, Scrum was found to have great potential in supporting the design of a construction project, especially where several departments are involved. In Scrum, the project phases appeared to be more elaborate and clearer, which could help explain why it was easier to establish sprints and scrum events. The sequential nature of the project also seemed to favor Scrum more than PRINCE2, which often focuses on the people and the entire project. Therefore, it can be argued that regardless of the claims that PRINCE2 and Scrum can be replicated across all types of projects, the ease and suitability will differ significantly. The principles and major tools and approaches involved in each mean that different projects are best suited for certain methodologies.
Conclusion
PRINCE2 and Scrum are some of the most common project management methodologies deployed across the world. Both of them have their origins in the IT sector, which means that this is one area where these methodologies are most used. PRINCE2 operates based on seven principles serving as best practices, which support seven themes that are deployed across seven major processes. Scrum involves breaking projects into smaller workable units where each is handled by a functional and self-managing team. The tasks are incremental and iterative, and this methodology is flexible and adaptable enough to make it a favorite in agile projects. Even though both methodologies should be easily applicable in all projects, it appears that the features of each methodology make it more appropriate in some than others. The case explored is the engineering infrastructure projects where some difficulties were experienced with PRINCE2 while Scrum proved more effective.
Reference List
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