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| Section | Objectives |
|---|---|
| Topic 1: Processes | - Closing a project - Managing product delivery - Starting up a project - Managing a stage boundary - Controlling a stage - Initiating a project - Directing a project |
| Topic 2: Practices | - Plans - Risk - Organizing - Business case - Progress - Quality - Issues |
| Topic 3: Principles | - Apply the PRINCE2 principles in context |
| Topic 4: People | - People management and effective collaboration |
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NEW QUESTION # 28
While preparing the project plan during initiation, the project manager proposes that stage 2 should end at the Council's financial year-end. This would allow the decision on funding for stage 3 to coincide with the Council's annual budget process.
Is this an appropriate application of the 'manage by stages' principle, and why?
Answer: B
Explanation:
The correct answer is A . PRINCE2 management stages are governance constructs and do not have to correspond mechanically to technical phases or fixed time intervals. Their boundaries should be positioned where they provide effective control and meaningful decision points for the project board.
Aligning the end of stage 2 with the Council's financial year-end is therefore appropriate because the continuation decision for stage 3 depends on a significant external funding decision. The boundary creates a natural point at which actual progress can be assessed, the business case can be reviewed, future funding confirmed, and the next stage authorized with current information. PRINCE2's management-by-stages approach supports progressive planning and explicit review points rather than committing detailed authority for the entire project at initiation.
Option B is incorrect because completing a single specialist product does not automatically determine the end of a management stage. Stage boundaries are selected to provide appropriate management control. Option C is too restrictive: risk is an important consideration when determining stage length, but it is not the sole factor.
Option D similarly overstates technical complexity as the determining factor. Business decisions, risk, uncertainty, planning horizon, organizational constraints, and external decision points can all influence stage design.
PRINCE2 7 reference topics: Manage by stages; management stage design; planning horizon; stage boundaries; authorization of the next stage.
NEW QUESTION # 29
ISSUES
During stage 1, BuildyBrick was appointed by the procurement team manager as the main contractor for the project. The project is now in stage 3 and BuildyBrick is part way through the site preparation. Following an environmental survey report, BuildyBrick will have to delay the site clearance by several weeks to enable protected amphibians to be relocated. There are two options to deal with this issue. The first is to wait for BuildyBrick to clear the site, but this will take longer. The second is to hire an additional contractor to clear the site more quickly, but this will cost more. Both of these options can be completed within cost and time tolerances, but appointing an additional contractor is beyond the project manager's delegated authority.
Here are three actions related to the resolution of this issue.
Which role (A-E) should be responsible for each action?
Choose only ONE role for each action. Each role can be used once, more than once, or not at all.
Answer: A,C,E
Explanation:
The correct mapping is Action 1 - A; Action 2 - E; Action 3 - C .
For Action 1 , the appointment of an additional contractor exceeds the project manager's delegated authority.
Although both options remain within overall stage cost and time tolerances, the project manager cannot authorize a decision that falls outside their defined authority. The matter must therefore be referred to the appropriate project-board authority, with the project executive responsible for leading the decision.
For Action 2 , maintaining project records is part of the project manager's day-to-day management responsibility. Once a decision has been taken, the project manager should ensure that the issue record is updated with the authorized response and decision so that there is an accurate audit trail.
For Action 3 , the senior supplier represents those providing specialist resources and expertise to create the project's products. Confirming that appropriate supplier resources can be made available for additional site- clearance work consequently aligns with the supplier interest.
This question illustrates that issue management must operate within the project's governance and delegation arrangements. Remaining within tolerance does not automatically permit the project manager to take an action specifically outside their delegated authority.
PRINCE2 7 reference topics: Issues practice; delegated authority; issue report; issue register; project executive; project manager; senior supplier.
NEW QUESTION # 30
The Chief Technology Officer is an influential stakeholder who strongly supports several unproven technologies for the shopping centre. Concerned about delivery risk and reputation, the project executive asks the project manager to limit the CTO's contact with the project team and other stakeholders.
Is this an appropriate approach to leading successful change, and why?
Answer: B
Explanation:
The correct answer is D . PRINCE2 7 recognizes that successful change depends on understanding and actively engaging people who can influence the project, its outputs, and the eventual adoption of those outputs. The Chief Technology Officer is explicitly described as an influential stakeholder. Limiting that person's involvement simply because some preferred technologies are unproven would sacrifice potentially valuable organizational influence instead of managing the disagreement constructively.
The appropriate response is to maintain engagement while separately assessing the technical and delivery risks associated with the proposed technologies. Stakeholder engagement and risk management are complementary activities: an influential stakeholder can remain involved even when particular proposals require challenge, evaluation, or risk responses. Continued engagement also helps the project understand expectations, build support, and facilitate adoption of the eventual solution across the wider organizational ecosystem.
Options A and B treat stakeholder exclusion as a risk-control technique, which is inconsistent with effective change leadership. Option C is too narrow because merely recording technological concerns as risks does not address the people and stakeholder dimension. Risks should be managed, but the stakeholder relationship should also be deliberately maintained.
The scenario therefore distinguishes between managing the uncertainty attached to an idea and excluding the person advocating it . PRINCE2 supports the former, not the latter.
PRINCE2 7 reference topics: People; leading successful change; stakeholder engagement; organizational ecosystem; relationships and communication.
NEW QUESTION # 31
While preparing the project plan during initiation, the project manager proposes that stage 2 should end at the Council's financial year-end. This would allow the decision on funding for stage 3 to coincide with the Council's annual budget process.
Is this an appropriate application of the 'manage by stages' principle, and why?
Answer: B
NEW QUESTION # 32
During stage 2, the project board agrees that the underground car park should contain 15 rapid-charging spaces, with a scope tolerance permitting delivery of no fewer than 10 spaces. The project manager includes this tolerance in the relevant work package agreed with the team manager.
Is this an appropriate application of the 'manage by exception' principle, and why?
Answer: C
Explanation:
The correct answer is A . Manage by exception is based on delegating authority within explicitly agreed tolerances. Higher management sets boundaries within which the lower management level may make decisions without repeatedly seeking approval. Escalation becomes necessary when a tolerance is forecast to be exceeded.
In this scenario, the desired scope is 15 rapid-charging spaces, while the project board has accepted a lower limit of 10. That creates a defined permissible range for the scope of the relevant product or work package.
The project manager can therefore delegate delivery within that range to the team manager. As long as the forecast remains within the agreed scope tolerance, routine design decisions do not need to be referred back upward. PeopleCert summarizes the principle by stating that authority should be delegated within agreed tolerances, avoiding both micromanagement and uncontrolled exceptions.
Option B incorrectly categorizes the tolerance as quality tolerance . The number of charging spaces concerns the extent of what is being delivered and is therefore a scope parameter. Options C and D undermine the fundamental purpose of management by exception by requiring unnecessary precision and escalation where authorized flexibility has deliberately been provided.
PRINCE2 7 reference topics: Manage by exception; tolerances; scope performance target; delegation; work packages; exception escalation.
NEW QUESTION # 33
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