a PRINCE2 Overview

2 BAT Russia Geography

BAT RussiaCentral Office in Moscow

3 Production factories in Moscow, Saratov and St. Petersbourg6 Business Units

150 cities from Kaliningrad to Vladivostok

SaratovTobacco Factory

St. Petersbourg Tobacco Factory

YAVATobacco Factory

Central Office

Moscow

I

TM

S

3

73.3bn +12%

2005 BAT Russia Sales Volume

47.1 50.3

58.765.6

73.3

0

10

20

30

40

50

60

70

2001 2002 2003 2004 2005

+56%

2001-2005

4

20.5% +1.1pp

2005 BAT Russia Volume Share

15.316

17.8

19.4

20.5

14

15

16

17

18

19

20

21

2001 2002 2003 2004 2005

+5.2pp

2001-2005

year exit

5 BAT Geography

BAT Community is world-wide:

� Common Marketing practices

� Common Standards & Policies

� International projects

6 whoops!

Most project problems are well known

Most project problems are preventable

What works and doesn’t work is well known

7 PRINCE

30 years

best practice

private &

public sector

projects in controlled environments

PRINCE

a lot of project failures are preventable

– so let’s prevent them!

8 the project lifecycle

management stages

SU

Initiation

Stage 2

Stage 3

Stage 4

Stage 5

PRINCE covers the project lifecycle plus some pre-project

preparation in ‘Start up’

PRINCE includes plans for measuring benefits in

‘Post Project Review’ PPR

9 Stopping the snowball!

The project will stop at astage end unless there is

specific “authority to proceed”from the Project Board

10

SU

Initiation

Stage 2

Stage 3

Stage 4

Stage 5

business focus

driven by the Business Case…

outline Business Case“is it a project?”

initial BusinessCase (in the PID)

updated at the end of stages

measured at project closure and

Post Project Review

11 The 3 PRINCE Interests

BusinessBusiness

UserUser SupplierSupplier

Value for money

Fit for purposeRealistic

12 Organisation

Project organisation is temporary, like scaffolding.When the job is done it will be dismantled.

ProjectSupport

ProjectManager

TeamManager(s)

ProjectBoard

ProjectAssurance

13 The Project Board

Executive SeniorSupplier

SeniorUser

� Taking ownership of the project� Giving guidance and direction� Approving plans� Giving authority to proceed with successive stages� Monitoring some risks (usually business related risks)� Ensuring that the project is being run correctly (Project Assurance)� The project’s “voice” to the outside world

May be supplemented by “non-voting” advisers and programme interests

14 the 8 PRINCE processes

DP directing a project

the

“w

he

n”

of

PR

INC

E P

roje

ct M

ana

ge

me

nt

CPclosing

a project

SBmanaging

stageboundaries

IPinitiatinga project

SUstarting

up a project

CScontrolling

a stage

PL planning

MPmanagingproductdelivery

15

BusinessCase

Organisation

Plans

ChangeControl

ConfigurationManagement

Controls

Quality

Risk Management

the 8 PRINCE components

the

“w

ha

t” o

f P

RIN

CE

Pro

ject

Ma

na

ge

me

nt

DP

SB

IPSU CS CP

MPDP

16 an integrated toolkit

projects vary enormously, so…expect to use PRINCE differently

bigsmallcomplexsimplehigh risklow riskbusiness criticalnot business criticallarge teamsmall teammany teamssingle teamsingle sitemultiple siteexperienced staffinexperienced staffmultiple projectstand-alone projectsafety critical‘quick and dirty’inter-departmentalsingle office

PRINCE is highlyadaptable … flexible … scaleable

the list g

oes o

n…

an

d o

n…

and

on

… a

nd

17 benefits of the method

• fits different types of project• fits different sizes of project• more than 30 years of project input• increasingly widely known as a standard

• large scale “standard” documentation• bureaucratic mind sets• “lifebelt” mentality• untrained people (including Project Board members)• defensive and closed implementation – blame culture• PRINCE game playing

�but guard against…

�

18 The Product Breakdown Structure

Sales targetsSales targetswall chartwall chart Staff ManualStaff Manual

New CustomerNew CustomerFormForm

SalesSalesFormForm

New salesNew salesproceduresprocedures

A simplehierarchy

15-30 products

Broken downfurther in

Stage Plans

PhonePhoneinstructionsinstructions

ProcedureProcedureInstructionsInstructions

ProcedureProcedureFlow ChartFlow Chart

Existing Existing Sales formSales form

New formsNew formsgroupinggrouping

MonthlyMonthlySales ReportSales Report

FormatFormat

SalesSalesDocumentsDocumentsgroupinggrouping

19 The Product Description

Product title

Purpose

Composition

Derivation

Format and presentation

Allocated to

Quality criteria

Quality method

Quality tolerance

Quality check skills / people

Short and descriptive

If you can’t fill this in, WORRY!

Description, or sub-products

Sources, products, permissions

Standards, house styles etc

Responsibility for development

What will make the product a good one

How quality will be measured

Any parameters – e.g. no of errors

Testing/checking skills – or lack of skill!

20 The Product Flow Diagram

New salesNew salesproceduresprocedures

The final product isthe sum of the rest

Check all‘danglers’

sequ

ence

Sales targetsSales targetswall chartwall chart

Staff ManualStaff Manual

PhonePhoneinstructionsinstructions

ProcedureProcedureInstructionsInstructions

ProcedureProcedureFlow ChartFlow Chart

ExistingExistingSales formSales form

MonthlyMonthlySales ReportSales Report

formatformat

New CustomerNew CustomerFormForm

SalesSalesFormForm

21 Exception Management

� + 5% - 5%

£ + 5%- 15%

Exception – when the forecast is that tolerance will be exceeded- missing the tolerance box or - going outside the tolerance lines (tolerance “corridor”)

ExceptionException – when the forecast is that tolerance will be exceeded- missing the tolerance box or - going outside the tolerance lines (tolerance “corridor”)

Time

Cost

Quality

Scope

Risk

Benefit

22 Change Control

Warning … a major project killer is on the loose!

PRINCE does not set out to stop change, but to control change.PRINCE does not set out to stop change, but to control change.

You can set a Change Budget, but be consulted on things beyond that.You can set a Change Budget, but be consulted on things beyond that.

ChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChangeChange

ChangeChange

We can’t possibly do a big change like this …

but this is only a small one … isn’t it … and so is this … and this …but this is only a small one … isn’t it … and so is this … and this …

…OH!

23 Assessments

Control “firewalls” in the project – and the project ca n be stopped

ESA

(EA)

• Business Case• Risk Log

• Delivery• Quality• Costs

• Stage Plan• Controls(including tolerance)

End Stage AssessmentException Assessment

24 Post Project Review

• A review after the project

• Primarily to measure benefits

• Can also assess implementation

of the project and initial

experience

• Can be more than one

– geared to delivery of benefits

– might be programme orientedReducedcomplaints

Time saving

Increasedprofits

Reducedcosts

25 a summary

PRINCEprojects in a controlledenvironment

the ‘Hassle’ Graphnovice

quite experienced

very experienced

����

26

Thank you! Questions?