The project context is one of the five integrated elements of PRINCE2. It influences how "the principles, practices and processes are applied by the people involved to ensure the method is fit for the project context." Ref 1.2

"Every project is unique… But each one will differ in a certain way. This can mean a different team, customer, supplier, location, or timeframe. All these factors combine to make every project unique. Ref 1.3

Organizations that lack rigour in business justification may find that projects proceed even when there are few real benefits or when a project has only tentative associations with the business strategy. "The business justification drives decision-making to ensure that the project remains aligned with the benefits being sought and contributes to business objectives." This is the 'ensure continued business justification' principle. Ref 2.1

Supplier stakeholders can be external to the organization. "Stakeholders can be individuals or groups within or external to the business… stakeholders outside the business could be trade unions, customers, suppliers, communities, interest groups, banks, or the media." Ref 2.3

Setting tolerances against the seven aspects of performance relates to the 'manage by exception' principle. "Delegating authority from one management level to the next by setting tolerances against seven aspects of performance for the respective level of the plan." Ref 2.4

PRINCE2 requires "there must be a justifiable reason for starting the project, and the justification must remain valid... throughout the lifecycle of the project." This is the 'ensure continued business justification' principle. Ref 2.1

The principles guide how PRINCE2 can be tailored to best fit a project and its context. “To enable PRINCE2 to be used for such a wide range of projects, the method is flexible in how it can be used for any given project. Rather than prescribing what to do to align the method to the specific project, PRINCE2 offers guidance through principles.” Ref 2

Leadership "on projects this is best done through collaboration across the project ecosystem." Ref. 3.3

The definition of co-creation is "A specific form of collaboration involving users and key influencers in the design of products and agreed ways of working to ensure they are adopted by the project and organizational ecosystems." Ref 3.3

This is not an aspect of leadership. The definition of management is "instructing the execution of tasks in line with agreed ways of working." Ref 3.3

"… people within the business who are affected by the project, but do not work within the defined project team" may contribute by "integrating new products into their area of the organization." Ref 3.3.1

"In determining the level of detail to capture in the change management approach, it is worth considering; the skills and capabilities required during and after the transition from current to target state; which areas of the organizational ecosystem are likely to be impacted by the project; the key relationships to be considered; the evolving culture, how best to transition." Ref 3.2.1

"Even when people technically have the same capabilities and competencies, they are likely to perform the same role differently. Sometimes, the same person may perform differently depending on who they are working with." Ref3.3.2

The purpose of the change management approach is "to establish the target organizational state required for the project to meet its objectives together with the means by which the business will shift from the current state and through any interim states." Ref 3.2.1

The learn from experience principle is applied by the 'people' element by recognizing that "there is valuable knowledge hidden within a project ecosystem. This requires a collaborative environment that encourages knowledge sharing throughout the lifetime of a project." “In particular, people factor such as behaviors, culture, and relationships are difficult to document and are best learned through social learning.”Ref 3.5.1

“The project initiation documentation gives the direction and scope of the project and (along with the stage plan) forms the ‘contract’ between the project manager and the project board.” Ref 4.3.1

“The purpose of the business case practice is to establish mechanisms to judge whether the project is (and remains) desirable, viable and achievable as a means to support decision-making in its continued investment.” Ref 5.1

"The purpose of the project brief is used to provide a full and firm foundation for the initiation of the project" and the business case is used "to document the business justification for undertaking a project." And, hence, justify progressing a project further. Ref 5.5

A business objective is "the measurable outcomes that demonstrate progress in relation to the organization’s strategy and to which the project should contribute." Ref 5.1

As part of the 'aligning products to business objectives and tolerances 'element, sustainability targets should be set. "Ultimately, the outcomes and benefits to be achieved from the project need to align with and contribute to the business objectives. These may include environmental, social and governance (ESG) goals set by the organization. The sustainability performance targets and tolerances for the project, documented in the sustainability management approach, which supports the business case, should reference and contribute to the ESG goals of the organization."Ref 5.2.2

During the 'check' step of the business case management technique, "the business case may undergo further refinement and will be updated across stages as project costs, timescale, products, and risks are further understood... The project manager will also check the business case: when assessing progress, risks and issues, to determine their impact on business justification." Ref 5.3.1.2

The 'learn from experience' principle is applied by the 'organizing' practice by “using lessons to inform the project management team structure, work breakdown structure, and a healthy project ecosystem.” This results in “the right people are in the right roles at the right time to deliver the project.” Ref 6.7 tab 6.5

Role descriptions describe "the roles of those in the project management team and their specific responsibilities." This should include specify accountability for sustainability targets. Ref 6.5

The project board is defined as “Accountable to the business for the success of the project and has the authority to direct the project within the remit set by the business.” Ref 6.2.1

“The senior user must ensure sufficient ongoing commitment from people in the user community to support these activities, in particular where there is a longer-term commitment beyond the lifespan of the project such, as the realization of benefits.” Ref Appendix B – senior user - overview

During the 'develop the project ecosystem' step, "the project ecosystem will need ongoing development in response to changing project needs, team members and their emerging relationships, ensuring the project is set up to deliver its objectives and to continuously improve. The development activities may include: onboarding people to the project, for example, a site visit, induction, certification." Ref6.3.1.3

“The purpose of the plans practice is to facilitate communication and control by defining the products to be delivered (the ‘what’) and the means to deliver them (the ‘who’, the ‘how’, the ‘where’, and estimates of the ‘when’ and for how much) to satisfy the project business case (the ‘why’).” Ref 7.1

"When a project or stage exceeds (or is anticipated to exceed) an agreed tolerance, a project manager will raise an exception report to the project board. If the project board decides to address the exception within the stage, the project management team will prepare an exception plan that covers how directed actions will be performed." Ref 7.2.2.4

It is dependency. "A dependency means that one product is dependent on another. There are at least two types of dependency relevant to a project: internal and external." Ref 7.3.1.2

As part of defining ‘the number of stages, "For an iterative-incremental project, the project plan may provide multiple delivery stages in which the quality and acceptance criteria are refined in parallel with development of the required products through the use of a product backlog." Ref 7.2.3.1

"In the process of starting up a project, the major products or outcomes, along with key quality requirements, are documented in the project product description." This happens when writing the project product description in the 'defining and analyzing products' step. Ref 7.3.1.1.1

"The purpose of the quality practice is to document the user’s requirements of the project’s products and to establish the means by which they will be met". In addition, “quality is concerned with ensuring that the project’s products meet the user’s requirements and expectations and enable the desired benefits to be realized.” Ref 8.1

The quality register is used "to summarize all quality management activities that are planned or have occurred. The quality register is used by the project manager and project assurance as part of reviewing progress." Ref 8.5

"Project assurance is independent of the project manager but not the project." Ref 8.2.3

"Changes to the baseline project initiation documentation arising from lower-level planning should be addressed using the issue management approach. "Ref 8.2.1.6

"Acceptance of a project product typically transfers ownership or responsibility for the product from the project or supplier to the project board on behalf of the user." Ref 8.3.1.3

“The purpose of the risk practice is to identify, assess and control uncertainties that would affect the project’s objectives, and, as a result, improve the ability of the project to succeed.” In addition, "A risk is measured by a combination of the likelihood of a perceived threat or opportunity occurring and the magnitude of its impact on objectives." Ref 9.1

The project initiation documentation: risk management approach describes "how risk will be managed on the project. This includes the specific procedures, techniques standards, and responsibilities to be applied." Ref 9.5

A risk owner is "The person who is assigned to take responsibility for responding to a risk." Ref 9.2

As part of risk culture "decision bias is natural and largely positive, allowing the brain to efficiently make rapid decisions every day However, sometimes decision bias can result in less effective decision-making. There are many types of bias, for example: loss aversion a mindset that values the avoidance of loss rather than making a gain." Ref 9.2.4

The 'identify - define context and objectives' sub-step "obtaining information about the project to ensure there is a common understanding of the specific objectives that are at risk and to formulate an appropriate risk management approach. The following will have an influence on the project’s risk management approach: ... the business' own environment, business policies, standards, processes and procedures." Ref 9.3.1.1

“The purpose of the issues practice is to collect and assess issues and control changes to the project’s baseline.” In addition, the project baseline is defined as "The current approved versions of the management products and project products that are subject to change control." Ref 10.1

The issue management approach should "describe how issues will be captured and reported and explain how changes to the project baseline will be assessed and controlled." In addition, the project baseline is defined as "The current approved versions of the management products and project products that are subject to change control." Ref 10.5, 10.1

An issue is "an event relevant to the project that requires project management consideration." Ref 10.1

As part of the 'change budget' element of the effective guidance, "the project manager should ensure that delegated authority is accompanied by an appropriate change budget from which approved changes can be delivered. The change budget is usually an amount of money earmarked specifically to fund changes. However, it can also be defined as a set of authorized constraints within which trade-offs can be made." It is by applying the change budget that approved changes can be funded and therefore implemented. Ref 10.2.5

As part of the 'assessing issues' step, "when reviewing issues, the aim is to answer two questions: Does this issue affect the project? If so, how?" Ref 10.3.1.2

“The purpose of the progress practice is to: establish mechanisms to monitor and compare actual achievements against those planned [and] provide a forecast for the project’s objectives and continued viability.” Ref 11.1

The end stage report is used "to give a summary of progress to date, the overall project situation, and sufficient information to ask for a project board decision on what to do next with the project." Ref 11.5

An exception is "A situation where it can be forecast that there will be a deviation beyond the tolerance levels agreed between the project manager and the project board (or between the project board and business layer)." Ref 11.1

As part of 'use of data and systems in progress management', "data and technology help manage projects more accurately by supporting progress tracking and decision-making." In addition, “Progress reviews are not confined to looking backwards. After having secured and stored the data through systems, past performance can be used to predict future performance. Ref 11.2.7

As part of the exception management procedure, "issues are often encountered in the delivering level of the project that will take the stage outside one of the stage tolerances. It may also occur during the managing level for those issues that are not driven from delivery problems." Ref 11.3.1

“The purpose of the process of starting up a project is to ensure that the prerequisites for initiating a project established by answering the question, 'do we have a viable and worthwhile project?' The decision to start the project must be explicit; the activities within the process of starting up a project happen before this decision.” Ref 13.1

“The purpose of the process of starting up a project is as much about preventing poorly conceived ideas from ever being initiated as it is about approving viable projects. As such, starting up a project is a lighter process compared to the more detailed and thorough process of initiating a project. The aim is to do the minimum necessary to decide whether it is worthwhile to even initiate the project.” Ref13.1

“The purpose of the process of directing a project is to enable the project board to be accountable for the project’s success by making key decisions and exercising overall control while delegating day-to-day management of the project to the project manager.” Ref 14.1

4.“The objectives of the process of controlling a stage are to ensure that: … theagreed products for the stage meet the agreed quality expectations and areaccepted.” Ref 16.2
1.“The objectives of the process of controlling a stage are to ensure that: … the project management team focus on delivery within the established tolerances.” Ref16.2

1.“The objectives of the directing a project process are to ensure that: … there is authority to close the project.” Ref 14.22.“The objectives of the directing a project process are to ensure that: … plans for realizing the post-project benefits are managed and reviewed.” Ref 14.2

3.“The objectives of the process of initiating a project are to ensure that there is a common understanding of: … how baselines will be established and controlled.” Ref15.24. “The objectives of the process of initiating a project are to ensure that there is a common understanding of: … how and when the products will be delivered and at what cost.” Ref 15.2

"The process of managing a stage boundary provides a means by which an exception procedure can be implemented.” "For exceptions, the objectives of the process of managing a stage boundary are similar to those listed above but include preparing an exception plan and seeking approval to replace the project or current stage plan with the exception plan." Ref 18.3, 18.2

“The process of managing a stage boundary is based on dividing the project into stages.” Ref 18.3

“It is also possible that the project board may wish to trigger a premature closure of the project under some circumstances; for example, if the business case is no longer valid. If the project is being brought to a premature close, this process will still need to be executed." Ref 19.3