Managing a Stage Boundary

• Purpose
• Objective
• Objective 2
• Activities
  • Overview
  • Plan the next stage
  • Update the Project Plan
  • Update the Business Case
  • Report stage end
  • Produce an Exception Plan

Key sections

• Introduction
• Business case
• Organization
• Quality
• Plans
• Risk
• Change
• Progress
• Introduction to processes
• Starting up a projectDirecting a project
• Initiating a project
• Controlling a stage
• Managing Product Delivery
• Managing a Stage Boundary
• Closing a Project
• Tailoring PRINCE2 to the project environment
• Directing Projects with PRINCE2

Activities

Update the Business Case

It is a PRINCE2® principle that projects have continued business justification.

The Project Board is ordinarily only authorized to continue while the project remains viable (that is, the benefits will be realized within the cost, time, quality, scope and risk parameters set out in the currently agreed Business Case).

Projects, however, do not take place in a static environment.
The environment external to the project changes, as do the nature and timing of the project’s products.
The Business Case needs to reflect these changes and must be reviewed and amended to keep it relevant to the project.

As the Executive is responsible for the Business Case, the Project Manager should consult with the Executive when reviewing and updating the Business Case in preparation for Project Board approval.

For further details on business justification, see the section covering ‘Business Case’.

Diagram 1 shows the inputs to, and outputs from, this activity.

© Crown copyright 2005 Reproduced under licence from OGC

Diagram 1

PRINCE2 recommends the following actions:

• Check whether there have been any changes to the risk appetite and risk capacity of the organizations involved and whether risk tolerances need to be redefined. Assess the project’s risks using the Risk Register to ascertain the aggregated risk exposure for the project and identify the current key risks that affect the Business Case. This should include an assessment that the aggregated risk exposure remains within risk tolerances
• Update the Benefits Review Plan with the results from any benefits reviews undertaken during the stage
• Examine and review:
• The Benefits Review Plan for the results of any benefits reviews undertaken during the stage compared with the expected results
• The impact of approved changes as these may affect the projected benefits
• The project risk profile and key risks
• The Issue Register for any issues that may affect the Business Case
• The Project Plan to see whether the final implementation date of the project has changed (for better or worse), which might affect some or all of the projected benefits
• The Project Plan to see whether the cost of delivering the project’s products has changed, which may affect the cost/benefit analysis
• The corporate or programme environment into which the project’s products will be delivered, as it may have changed
• Whether any benefits reviews are required in the next management stage
• Revise the Business Case and, if necessary, the Benefits Review Plan, ready for Project Board approval
• Update the Risk Register and Issue Register as necessary

Diagram 2 shows the responsibilities for this activity.

© Crown copyright 2005 Reproduced under licence from OGC

Diagram 2

PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.