Executive Summary
Project management (PM) methodologies are vital since they can determine the success of a project. It is crucial to understand different PM methodologies in terms of their defining aspects. This report will examine two PM methodologies, PRINCE2 and PMBOK. To gain an in-depth understanding of the two methodologies, this report will analyze the processes involved, the hierarchical setup in each methodology, and the key concepts. An evaluation of a project’s merits and demerits can help when deciding on the project methodology best suited for a specific project. The report will also describe the factors that one should consider while selecting the methodology for a project. To achieve these aims, the report will utilize the available scholarly sources by exploring databases containing academic material such as JSTOR, Google Scholar, and Proquest. The report concludes by postulating the integration of the two methodologies by fusing elements within them to develop a project management approach that suits the project.
Glossary
- ICT – Information and Communication Technology.
- IT – Information Technology.
- OGC – Office of Government and Commerce.
- PM – Project Management.
- PMBOK –Project Management Body of Knowledge.
- PMI – Project Management Institute.
- PRINCE2 – PRojects IN Controlled Environments.
- Processes – Stages that a project must undergo for completion.
- Project – A series of tasks carried out sequentially to meet defined outcomes.
- Project management methodology – Principles that guide processes.
Introduction
The efficient application of project management (PM) methodologies contributes greatly to the success of projects. PM methodologies are the principles that project managers use as a framework to guide an undertaking of a project in the planning, management, and execution stages, to ensure the success of the project. Different project methodologies have been designed over time, and each of these methods has its pros and cons. However, PM methodologies aim at the completion of the project within the defined parameters, such as time and cost. A project manager should carefully decide on the PM method to apply to their project since different PM methodologies have different aspects.
PRINCE2
The origins of PRINCE2 can be traced back to the British government. The ICT department of the government’s OGC introduced the PRINCE2 methodology primarily to save costs in ICT projects but it has been continuously evaluated (McGrath and Whitty, 2020). It is product-based and projects that use PRINCE2 are constrained by the elements of time, cost, and quality (Pawar and Mahajan, 2017). Though it was originally in IT projects, PRINCE2 has been universally adopted in projects in fields such as construction, engineering, and finance (McGrath and Whitty, 2020). The updates to the PRINCE2 methodology have made it generic and applicable to diverse fields.
The PRINCE2 PM methodology involves seven key processes. Each key process is based on producing products and the first process is starting a project. The subsequent procedures are directing, initiating, controlling the stages, ensuring product delivery, managing the stage boundary, and closing the project (McGrath and Whitty, 2020). PRINCE2 has seven foundational principles. First, any project undertaken should have continued business justification (Vaníčková, 2017). Over a project’s lifetime, the project’s business value should be constantly evaluated to ensure that the project is feasible from the business perspective. The business case provides the basis for evaluating whether a project is worthwhile and should be continuously updated (Martins, Ribeiro and Duarte, 2018).
Second, PRINCE2 projects are tailored to the environment in which the project is being undertaken. Each project is unique and inherent variables necessitate tweaking PRINCE2 to meet the requirements of the project (Tuttle, 2018). The third principle is management by stages. It involves breaking down the project into stages and identifying the steps involved in those stages (Pawar and Mahajan, 2017). Each stage of the project has measurable deliverables, referred to as products in PRINCE2 (Mugeni, 2019). The project’s progress is evaluated against these deliverables.
Management by exception is the fourth principle in PRINCE2. PRINCE2 establishes several levels of hierarchy and creates roles for each person involved in the project (Pawar and Mahajan, 2017). According to this principle, the top-level executives are only involved in instances where they must provide direction on the way forward, such as the project’s targets (Vaníčková, 2017). Excluding these instances, the project manager is fully empowered to monitor the project’s daily progress.
The project environment in PRINCE2 includes several entities. The project manager creates a team that executes the vision of the project. For efficient project execution, the project manager should develop the project plan, which includes key scheduling and budget information (Mossalam and Arafa, 2016). The project manager is also the intermediary between the project board and the customer (Mossalam and Arafa, 2016). The customer funds the projects and evaluates the documentation in the project to determine if it meets the specific needs. Business executives comprise the project board and this entity makes crucial high-level decisions.
The fifth principle in PRINCE2 is learning from experience. Learning from experience requires an analysis of past projects and the creation of processes that alleviate the mistakes in those projects (Tuttle, 2018). The sixth principle is the establishment of well-defined roles and responsibilities for all individuals in the project, thus creating a harmonious work environment (Pawar and Mahajan, 2017). Each role assigned is crucial in meeting the project’s deliverables.
The final principle is focusing on products. Products are the end goal of each process in PRINCE2 and all activities involved in the project must aim at achieving that end goal. Focusing on products prevents deviation from the requirements of the project (Tuttle, 2018). Figure 1 below illustrates the seven key principles in PRINCE2. In line with the seven key principles, seven key themes arise. These themes are the business case, organization, quality, plans, risk, change, and progress (Pawar and Mahajan, 2017). Efficient PM requires constant evaluation of these themes throughout the project’s lifecycle.
Note: Figure demonstrating PRINCE2 Principles from “Application of PRINCE2 project management methodology” by R. Vaníčková, 2017, Studia Commercialia Bratislavensia.
Advantages of PRINCE2
One of the main advantages that accrue to PRINCE2 is that it is completely scalable. Due to continuous review of the framework, the framework has become easily adapted to different sizes of projects. Vaníčková (2017) notes that small and medium business enterprises have increasingly adopted PRINCE2 in their projects. Tailoring facilitates the scalability of PRINCE2 and the methodology is applicable to projects of all sizes. PRINCE2 focuses on comprehensive management of the project with a strategic approach meant to ensure profitability. Since continued business justification is one of the key elements of the methodology, PRINCE2 is suitable for long-term projects.
Limitations of PRINCE2
Although PRINCE2 is among the most widely applied PM methodologies, it also has its faults. The methodology is often criticized for being burdensome. Pawar and Mahajan (2017) contend that PRINCE2 is a heavyweight due to the intensive planning and documentation involved. These requirements also contribute to the time-intensiveness in PRINCE2 projects. The second key limitation is the lack of a proper framework to navigate risk (Pawar and Mahajan, 2017). PRINCE2 can also be disadvantageous as it does not adequately empower the interpersonal skills required in PM (Ewin et al., 2017). PRINCE2 also lacks the agility and flexibility of other management methodologies, such as Agile PM methodology.
PMBOK
Unlike PRINCE2, PMBOK is a knowledge-based approach to PM. Developed by the USA-based PMI, PMBOK describes the guiding principles for a successful PM. In projects based on the PMBOK framework, the project’s lifecycle involves the process groups of initiation, planning, execution, monitoring, controlling, and closing. The sequence of the process groups is as shown in Figure 2 below. The process groups are also referred to as phases (Kononenko and Lutsenko, 2018). Each of these five process groups has activities describing the project’s progress.
Note: Figure illustrating PMBOK process groups. From Mastering Project, Program, and Portfolio Management: Models for Structuring and Executing the Project Hierarchy, by G. Lister, 2014, FT Press.
The project manager determines the method of carrying out the phases. Unlike PRINCE2, in projects based on the PMBOK, the project manager is the key figure in charge of the project. The phases in PMBOK can be carried out sequentially or by using a hybrid approach (Dzidrov, 2019). In total, there are forty-four activities in the PMBOK guide (Abdullah et al., 2021). Each phase has specific inputs and outputs. Inputs vary depending on the process but they generally include the documents, designs, resources, and plans.
Each process requires adequate knowledge in specific areas. These knowledge areas include integration, time, scope, human resources, communications, cost, quality, risk, stakeholder, and procurement (Kononenko and Lutsenko, 2018). Project integration management relates to the identification of the project’s elements and how the project’s elements coordinate (Takagi and Varajão, 2020). Time management relates to the regulation of time consumption by the activities in the processes. Budgeting, cost estimation, and cost control are elements in the project cost management knowledge area (Dzidrov, 2019). Quality requirements should also be formulated and the quality management knowledge area also encompasses the monitoring and fixing of quality issues (Takagi and Varajão, 2020). Scope management involves breaking down the work and developing the baselines to manage the entirety of the project (Al-Rubaiei, Nifa and Musa, 2018).
The stakeholder knowledge area involves identifying and engaging stakeholders. Stakeholders include all individuals and entities involved in the project as well as those affected by it (Takagi and Varajão, 2020). The project manager identifies, acquires, and manages the necessary resources within the procurement knowledge area (Takagi and Varajão, 2020). Risk management involves planning, assessing, and controlling risks. Human resources management requires planning for the human resources, acquiring the project team, and managing the team to ensure they fulfill their individual roles (Takagi and Varajão, 2020). Communication within the project requires the formulation of a communication strategy to plan, monitor, and manage communication.
Advantages of PMBOK
PMBOK is advantageous over PRINCE2 as it examines the techniques used in PM, while PRINCE2 only references the techniques to use (Ewin et al., 2017). The comprehensive PMBOK guide describes the processes, tools, and techniques that can be applied to projects. PMBOK also provides a crucial framework for aspects that are not addressed in depth in PRINCE2. Such aspects include risk and quality management.
Limitations of PMBOK
PMBOK provides the best management practices that support PM throughout the project’s lifecycle. However, PMBOK lacks criteria for success management (Takagi and Varajão, 2020). PMBOK is also disadvantageous when compared to PRINCE2 as the organizational structure limits the delegation of leadership activities (Mossalam and Arafa, 2016). PMBOK does not identify the project owner’s roles, and the owner’s responsibilities are deemphasized (Cha, Newman and Winch, 2018). This deficiency inhibits the business transformation of a project after its successful completion.
Projects using PMBOK require a project manager who can handle the elements of planning, problem-solving, and decision-making. Since the PMBOK framework does not include project executives, the project manager is in charge of all elements of the projects (Mossalam and Arafa, 2016). PMBOK does not factor in the organizational transformation after the project’s completion (Cha, Newman and Winch, 2018). The setup of the project in terms of the executive sponsor, project beneficiary, and project manager is designed for a fixed project’s lifecycle. Therefore, PMBOK projects are mainly temporary.
Selecting a PM Methodology
PMBOK and PRINCE2 share certain similarities. First, both methodologies recognize the need for documentation at the project’s initiation. The documentation involved is similar, although it is referred to in different terms. In the case of PRINCE2, the business case provides the business justification. In PMBOK, the project charter defines the basis of the project and justifies the project manager’s acquisition of the project’s resources. PMBOK and PRINCE2 differ on the organizational structure and the focus of the methodology.
The choice of PM methodology to apply in a particular project depends on several factors. First, different projects have different goals. Thus, the PM methodology chosen should align with the project’s goals. PMBOK focuses on work breakdown, while PRINCE2 focuses on the products of the processes. PM methodologies are also selected according to the industry. Over the years, experts in various industries have developed their unique PM methodologies according to the unique needs of their industries. However, the generic nature and scalability of PRINCE2 make it suitable for most industries. The third factor to consider is the decision-making process involved. To avoid complicated hierarchical decision-making processes, the project manager can hold all the functional authority. Therefore, PMBOK is used.
PMBOK can be regarded as the fundamental knowledge necessary for a successful PM. The adaptability of PRINCE2 with different projects means that the methodology can be used concurrently with PMBOK (Elhameed, 2018). The knowledge areas in PMBOK can be used to strengthen the processes involved in PRINCE2, thereby meeting the product objectives. The strengths of PMBOK, such as the comprehensive guides on scope and risk management, can be integrated with the organizational structure of PRINCE2 to create a hybrid approach. PM aims at meeting the deliverables and the objective may require the project manager to be flexible and creative to integrate both methodologies in a project.
Pursuant to the criteria for selecting the PM methodology, one of the most common applications of PRINCE2 methodologies is in the construction industry. The scalability of PRINCE2 makes it applicable to construction projects regardless of size while maintaining efficient resource utilization and maintaining costs within financial constraints. PRINCE2 also finds application in operations management and management of IT projects. PMBOK creates a framework for managing programs in diverse fields. PMBOK can be used in the management of projects in the manufacturing industry and in marketing. The varying nature of requirements in these industries may necessitate project management with a reduced hierarchical structure and, consequently, faster decision-making.
Conclusion
Depending on whether the project manager is flexible or rigid, elements of different PM methodologies can be mixed and used concurrently. A skilled project manager can incorporate elements of different PM methodologies into their projects to ensure they achieve the desired outcome. Methodologies such as PRINCE2 Agile have come about from the combination of two separate methodologies. Similarly, PRINCE2 and PMBOK are not mutually exclusive and they can both be incorporated into the project. As shown in this report, the adoption of different elements in a particular project speeds it up and increases its efficiency. Through the comparison of PRICE2 and PMBOK, it has been shown that the integration of different methodologies on a project helps to develop a holistic framework. Such a framework needs to be well adapted to the particular needs of a project.
Reference List
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