From PRINCE2 Revealed: Including How to use PRINCE2 for Small Projects


The organization for any project should be based on a customer/ supplier relationship. The customer is the person or group who wants the end product, specifies what it should be and, usually, pays for the development of that product. The supplier is whoever provides the resources to build or procure the end product. This is true even if the customer and supplier work for the same company. If this is the case they may still, for example, report to different lines of management, have different budgets and, therefore, have a different view of the finances of the project. The customer will be asking, Will the end product save me money or bring in a profit? The supplier will be asking if the providing of appropriate resources will earn a profit.

Establishing an effective organizational structure for the project is crucial to its success. Every project needs direction, management, control and communication. Before you start any project you should establish what the project organization is to be. You need to ask the questions even if it is a very small project. Answers to these questions will separate the real decision-makers from those who have opinions, identify responsibilities and accountability, and establish a structure for communication. Examples of the questions to ask are:

  • Who is providing the funds?

  • Who has the authority to say what is needed?

  • Who is providing the development resources?

  • Who will manage the project on a day-to-day basis?

  • How many different sets of specialist skills are...

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