PRINCE2 for Small Businesses and Projects

In recent years, the fast paced world of business has gained even more dynamism and speed. Now, decisions are being made every moment and any sort of delay leads to the loss of opportunities. In addition, there exists a greater challenge – that of change. To mitigate all negative effects and smartly adapt to the many convulsions of the environment in which they operate, businesses have to initiate
small-scale undertakings and
large-scale projects, in line with the gravity of change.

In other words, they are finding it important to tailor certain project requirements to suit particular business needs—especially with a view of catering to these ‘disruptions’.

Application of
PRINCE2 in Small Businesses

PRINCE2 (PRojects IN Controlled Environments)--commonly believed to be highly bureaucratic and applicable to projects that are larger in scale, can be adapted to serve as a valuable resource for project managers and business owners operating in a small PRINCE2 environment. In this scenario, there are numerous tailor-made methods that are designed to suit small businesses and act as key drivers for the simplification of processes and methods for managing change—the effective way

PRINCE2 is typically a structured methodology comprising of many logical processes that gives rise to enhanced efficiency and better results in a project, if followed accordingly. Though modest in scale, small-scale projects offer several challenges in the application of
PRINCE2 methodology and include its seven principles:

PRINCE2 Themes for Small Business Success:

While tailoring PRINCE2 to suit the immediate requirements of small businesses, it is essential to incorporate these seven themes, which may vary because of the depth at which they are applied and the levels of detail needed.

The Business Case

The business case refers to the usefulness of a specific project with regards to why it is being initiated. It’s generally used as a tracking mechanism for determining whether it is worthy of efforts or not.

Organization

The responsibilities and roles are outlined in a manner that all involved have and know their defined functions.

Quality

The standards of quality are defined in accordance to the purpose of business.

Plan

The underlying plan of the small business has to offer details regarding the allocation of resources, costs, products, assumptions, and timelines.

Risk

PRINCE2 processes go a long way in identifying those elements that may prove to be
risky for the profitability of the business or success of a small-scale project. These risks are closely identified, assessed and analyzed for limiting/ preventing their impact on business operations.

Change

The changes taking place in the business have to be monitored and controlled appropriately by identifying, assessing as well as understanding their
impact on all stakeholders.

Progress

Tailored mechanisms need to be implemented to measure actual developments against previously planned objectives; so as to monitor and forecast the progress of business operations and the overall project.

Benefits of Adapting PRINCE2 to Small Businesses

In most cases,
project managers (taking care of small-scale projects) as well as inexperienced business owners, end up adopting the PINO (PRINCE2 In Name Only) approach. They usually opt for the easier and more accessible principles and aspects of PRINCE2 and apply them on a superficial basis. Though this approach may work at times, the drawback is that some important elements that are essential for the success of a business / project may be left out completely.

This in turn makes it important for owners and managers to understand relevant PRINCE2 concepts and use their many aspects to their advantage. The benefits of adapting PRINCE2 to small-scale businesses include pronounced lucidity, superior effectiveness and efficiency, quality project outcomes and ease of application of processes.

Way Forward

In conclusion, it will suffice to say that in the competitive scenario, PRINCE2 is fast becoming an indispensible tool for small businesses looking towards integrating proven methods of successful large-scale projects in their operations.