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| Section | Objectives |
|---|---|
| Topic 1: People | - People management and effective collaboration |
| Topic 2: Processes | - Controlling a stage - Managing product delivery - Managing a stage boundary - Closing a project - Starting up a project - Directing a project - Initiating a project |
| Topic 3: Practices | - Business case - Quality - Organizing - Issues - Risk - Progress - Plans |
| Topic 4: Principles | - Apply the PRINCE2 principles in context |
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NEW QUESTION # 16
In stage 4, work is late because the survey and utilities teams have not shared information needed by other teams, and morale is falling. The project manager considers a short weekly coordination forum for questions and information sharing, but rejects it solely because it would take time away from delivery.
Is this an appropriate approach to leading a successful team, and why?
Answer: D
Explanation:
The correct answer is C . PRINCE2 7 treats people, relationships, collaboration, and effective communication as integral to successful project delivery. The project manager is not limited to monitoring work package completion; the role also involves maintaining an environment in which teams can coordinate their work, resolve dependencies, share information, and sustain effective working relationships.
The scenario identifies the underlying cause of delay: the survey and utilities teams are not sharing information required by other teams. Rejecting a short coordination forum solely because it consumes delivery time fails to address that root cause. A concise, structured forum can reduce downstream delay by exposing dependencies, clarifying outstanding information, and enabling team managers to resolve problems before they affect additional products.
Option A incorrectly transfers responsibility for overall project-team coordination entirely to individual team managers. Option B focuses on meeting time without considering the greater cost of continued information failure. Option D is also inappropriate because an exception report is required when a forecast indicates that agreed tolerances will be exceeded, not merely because coordination problems have arisen. The project manager should first use proportionate management action within delegated authority.
PRINCE2 7 reference topics: People element; leading successful teams; communication; collaboration; relationships; managing product delivery.
NEW QUESTION # 17
At the end of the initiation stage, the Regeneration Manager submits the project plan and business case for review. The Portfolio Director releases funding for both stages 2 and 3 and instructs the project manager to provide only a progress report at the end of stage 2, without a project board decision before stage 3 begins.
Is this an appropriate application of the 'manage by stages' principle, and why?
Answer: C
Explanation:
The correct answer is D . Under the manage by stages principle, a PRINCE2 project is divided into management stages that create defined governance and decision points. The project manager manages the current authorized stage, while the project board retains control over whether the project should proceed into the next management stage.
At a stage boundary, the project manager normally provides the information required for the project board to assess performance, review the updated business case and project plan, consider risks and issues, and evaluate the next stage plan. The board can then decide whether continued investment remains justified and whether the next stage should be authorized. PeopleCert guidance describes management stages as controlled segments with review points at which continuation can be approved or stopped.
Releasing funding for stages 2 and 3 does not remove the governance requirement to reassess the project before stage 3 starts. Option A confuses the project manager's delegated day-to-day authority within an authorized stage with authority to proceed automatically across stage boundaries. Option B concerns reporting customization rather than stage authorization. Option C incorrectly focuses on which corporate entity provides funding rather than the PRINCE2 control mechanism being tested.
PRINCE2 7 reference topics: Manage by stages; Managing a stage boundary; Directing a project; continued business justification; authorization of a stage.
NEW QUESTION # 18
During initiation, the project executive asks the project manager to evaluate a credible business option that omits the underground car park. The project manager includes an investment appraisal of that option in the full business case, despite the main contractor's objection.
Is this an appropriate application of the business case practice, and why?
Answer: C
Explanation:
The correct answer is A . The purpose of the business case is to provide the information needed to determine whether the project represents a desirable, viable, and achievable investment. Developing that justification requires the project to evaluate credible alternatives rather than assuming that the initially proposed solution is automatically the optimum investment.
The option without the underground car park is described as credible. It is therefore appropriate for the project manager to include an investment appraisal of that option so that decision-makers can compare its costs, benefits, risks, dis-benefits, and overall value with those of the preferred solution. The main contractor's objection does not remove the project's responsibility to examine legitimate business alternatives; supplier preferences must not determine investment justification.
Option B is incorrect because PRINCE2 does not impose a universal requirement for customer and supplier organizations to maintain completely separate business cases. Option C incorrectly treats initial scope as immutable. During development of the business case, alternative configurations can be evaluated when this helps determine the most appropriate investment. Option D similarly assumes that one anticipated benefit- parking income-precludes examination of other options. A benefit is an input to investment appraisal, not a reason to suppress alternatives.
The scenario therefore demonstrates objective option appraisal as part of sound business justification.
PRINCE2 7 reference topics: Business case practice; business options; investment appraisal; justification; desirability, viability and achievability; initiating a project.
NEW QUESTION # 19
PLANS
Here are three items of information included in the stage 2 plan.
Under which heading (A-F) should each item be recorded?
Choose only ONE heading for each item of information. Each heading may be used once, more than once, or not at all.
Answer: B,E,F
Explanation:
The correct mapping is Item 1 - B; Item 2 - F; Item 3 - C .
Item 1 belongs under planning assumptions and prerequisites. The plan is being constructed on the assumption that limited experience with sustainable technologies increases the possibility of design errors and consequently requires additional quality-control time. This is a planning assumption that affects how the stage is estimated and scheduled.
Item 2 belongs under monitoring, control and reporting arrangements. Sending a design-progress summary to the project board every two weeks defines the frequency and mechanism by which progress information will be communicated and controlled during the stage.
Item 3 belongs under products to be delivered. The architectural visualizations are explicit outputs that stage 2 is expected to create. They are therefore part of the defined product scope of the stage plan.
The other headings address different planning information. Dependencies identify relationships that constrain sequencing; budget records the financial resources authorized for the plan; and tolerances establish permissible deviations from performance targets before escalation becomes necessary.
The question demonstrates that a PRINCE2 plan is not simply a schedule. It integrates products, assumptions, resources, controls, tolerances, dependencies, and reporting arrangements into a coherent management product.
PRINCE2 7 reference topics: Plans practice; stage plan; planning assumptions; products; monitoring and control arrangements; product-based planning.
NEW QUESTION # 20
BuildyBrick's planning specialist suggests that the project manager should prepare stage plans only for stages
2 and 4, while BuildyBrick should prepare the stage plans for stages 3 and 5 because suppliers will deliver most of the work.
Is this an appropriate application of the plans practice, and why?
Answer: C
Explanation:
The correct answer is D . Under PRINCE2, the project manager is responsible for preparing stage plans , irrespective of whether most specialist delivery during a particular stage is undertaken by an external supplier.
A stage plan is a management-level control document used by the project manager and project board to manage and authorize the relevant management stage.
Supplier team managers can and should contribute detailed planning information. They may prepare team plans where appropriate and provide estimates, resource requirements, dependencies, schedules, risks, and detailed information concerning their work packages. Those inputs support preparation of the stage plan but do not transfer ownership of the management-stage plan to the supplier.
Option A incorrectly equates delivery of most stage products with ownership of the stage plan. Option B introduces an unsupported distinction based on the number of suppliers involved. Option C goes even further by asserting that every external supplier should prepare the complete stage plan for the stage in which it operates. That would blur the distinction between project management control and specialist delivery responsibility.
The planning hierarchy remains important: the project manager plans and controls the management stage, while team managers plan and execute the detailed specialist work delegated through work packages.
PRINCE2 7 reference topics: Plans practice; stage plans; team plans; project manager responsibilities; team manager responsibilities; work packages; management versus specialist products.
NEW QUESTION # 21
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