PRINCE2_for_Fed_Gov_Projects

White Paper
September 2009
Using PRINCE2™
to Manage US Federal
Government IT Projects
Applying the PRINCE2 project management method to support
Capital Planning and Investment Control (CPIC)
Richard Tucker, PMP
For Portfolio, Programme, Project,
Risk and Service Management

2 Using PRINCE2 to Manage US Federal Government IT Projects
Abstract
This paper shows how the PRINCE2 project
management method supports US Federal
government project managers as they
deliver IT investments while satisfying
requirements of the Clinger-Cohen Act and
Capital Planning and Investment Control.
Since enactment of the Clinger-Cohen Act
(CCA) in 1996, the US Federal government
requires its agencies to improve their
management, oversight and control of
investments in information technology.
Central to the CCA is an obligation for
agencies to select, control, and evaluate
their portfolio of IT projects in accordance
with the principles of Capital Planning and
Investment Control (CPIC), an approach to
IT investment management referenced in
the CCA.
In the same year the CCA was signed into
effect, the UK government released
PRINCE2™, a principles and themes based
project management method designed to
provide direction and oversight of
government/contractor projects. Project
managers can find it difficult to meet the
requirements of CPIC while running a project.
Industry leading project management
guides suggest one approach, contractors
have another, while investment oversight
groups within the agency reinforce the
additional requirements of CCA onto the
project team.
Capital Planning
and Investment
Control
The Information Technology Management
Reform Act of 1996, commonly referred to
as the CCA, requires US Federal agencies
to “identify and collect information
regarding best practices” for managing IT
related projects. The CCA identifies the
government’s approach to information
technology investment management as
Capital Planning and Investment Control
(CPIC). Specifically, the CCA, through
oversight from the President’s Office of
Management and Budget (OMB), requires
each agency to institute effective and
efficient capital planning processes for
selecting, controlling, and evaluating their
investments in IT projects. These projects
represent the strategic investment in IT
capital assets that define an agency’s
IT portfolio.
OMB requires each agency to institute
effective capital planning.
The CCA references use of a three-phase
cycle for capital asset management to
provide oversight of investment budgeting
and spending. First, by selecting IT capital
asset investments that will support core
mission functions performed by the Federal
Government; Next, through controlling
their projects effectively through the
application of best practices in project and
performance management; And then, by
evaluating investment results through a
demonstration that the return on
investment is supporting initial business
case objectives. CPIC links the strategic
planning of mission attainment to the
tactical performance of project delivery
and IT systems operations. The three
phases of CCA’s IT Investment
Management process are performed
annually, and applied to IT investments
continuously, throughout the life of an
asset’s existence within the agency’s
IT portfolio.
Select, Control
and Evaluate
During the Select phase, the agency
determines investment priorities according
to their mission needs, and makes decisions
about which technology initiatives (new
and ongoing) they will fund for the next
fiscal year. The Select Phase determines
which projects are to be included in the
agency’s IT portfolio for the coming year.
Projects identified as significant to the
mission (a major investment) must include
a comprehensive business case that
supports the IT portfolio selection process.
The Control phase is an ongoing
investment management process designed
to monitor the progress of IT projects
against budgeted cost, schedule,
performance goals, and expected mission
benefits. The Control Phase helps to ensure
that each investment is properly managed
toward the intended objectives defined by
the investment’s business case. However,
the Control process does not manage the
investment project. The responsibility to
define a project management governance
model is left to the agency and the project
manager. It is not defined by CPIC.
In the Evaluate phase, project outcomes
are measured, and systems are determined
to be fit for purpose. Performance results
are assessed to: (1) identify needed
changes to products or systems to maintain
optimal business operations; (2) measure
the project’s effect on mission and strategic
goals; and (3) continuously improve the
agency’s investment management
processes based on lessons learned,
self-assessments and benchmarking.
The Challenges
of CPIC
Interpretation of the CCA and CPIC has
led to conflicting and competing solutions
to satisfy its many requirements. OMB
continues to amend their supporting
Circular A-11, which keeps agencies’
reporting requirements a moving target.
Evaluate
Select Control
IT Investment Management Cycle

Using PRINCE2 to Manage US Federal Government IT Projects 3
Agency responses to these changes are
often seen as adjustments in the project
management processes and tools used to
control the investment. Such a response
weakens an agency’s ability to mature their
project management practices. Instead,
agencies should continue to develop and
mature their project methods and tools,
while adjusting reporting output to match
the OMB A-11 annual requirements.
Practitioners often confuse the cyclical phases
of the CCA’s Select–Control–Evaluate as a
project management lifecycle, for example,
thinking that a project is in development
activities only during the Control phase.
This is inaccurate. The three phases of the
CPIC IT Investment Management lifecycle
define the sequence of when budget and
investment management activities occur to
plan, monitor and report the progress of IT
investment dollars. The “project” lifecycle
of CPIC has a linear progression, from
Planning and Acquisition, to Management
In-Use and Disposition. It starts when a
business need is first defined and IT systems
planning activities warrant a new project
initiative, then continues to product
acquisition/development, systems operation
(production), and then asset retirement. In
response to this, agencies should define
and operate an enterprise lifecycle
management framework that integrates
governance, processes and information into
a decision model that includes the
requirements of investment and acquisition
management, enterprise architecture
planning, project management office
(PMO), IT systems operations and
maintenance, and capital asset control.
CPIC defines the activities of budget
and investment management.
Project managers react to the oversight
and governance of CPIC as a set of tasks
and requirements that are in addition to
their effort to running the project. This has
led to frustration while project mangers
work to deliver their projects. Project
managers sometimes view CPIC reporting
as a “check the box” activity. Maintaining
compliance to CPIC reporting can take
considerable effort if it is not integrated to
the project governance approach. However,
when CPIC reporting is a pre-defined
output designed into the project method,
CPIC becomes integral with the other daily
management and decision-making
activities of project management.
Additional challenges face government
project managers. The goals of CPIC are
focused on budget management, not
project management, which creates conflict
in tactical management objectives. IT
Investment Management support offices
within the agencies are tasked with collecting
and reporting financial information from
the agency’s projects, while project
managers focus on performance to cost
and schedule milestones, earned value
management, risk and issue status, and
baseline change control logs. Too often,
the data and information that reports
project status is gathered using tools and
techniques that are in contrast with the
investment management reporting
requirements of the CCA, CPIC and OMB.
Finding a Solution
to CPIC
Project managers are searching for a
governance model that can support both
the day-to-day needs of project delivery
and the requirements of CPIC investment
management reporting. While the PMI’s
Guide to the Project Management Body
of Knowledge® is clear in identifying
tools and techniques for performing
project management activities, it is by its
own admission “a guide rather than a
methodology”, and it is not designed to
address compliance requirements, such
as those defined by CCA. To operate
a project in a way that will achieve the
needs of CPIC, project managers must
utilize a method that supports sustainment
of an investment business case, clearly
identifies a governance process, and lends
itself to regular reviews for “Go/No-Go”
decisions, as required by US government IT
investment management budget cycles.
Satisfying the requirements and objectives
of CPIC is not easy. However, with the right
project management method the project
manager can easily achieve the requirements
of CPIC while controlling and delivering the
project. You must use a method that defines
how and when to apply project management
processes and techniques. The method
must be scalable to the size of the
investment, and it must define governance,
tools and techniques that can balance the
pulling forces that may exist between
government and contractor. PRINCE2 is a
de facto standard project management
method from the UK government. It is
public domain, available for anyone to use
to manage a project, it can support the
many requirements of CCA and CPIC, and
it can be tailored to fit most any size project.
What is PRINCE2?
PRINCE2 is a structured project
management method recommended for
use on all projects commissioned by the UK
government. In 1989, the Central Computer
and Telecommunications Agency (CCTA) of
the UK government first established PRINCE
(PRojects IN Controlled Environments) for
controlling information systems projects,
but the method soon realized a greater
following. The UK Office of Government
Commerce (OGC), continued development
of the method into what is now PRINCE2
(2009). Improvements include greater
clarity of seven principles that guide
behavior of the project team as they perform,
streamlining of the processes defined
within the method, and instruction on how
to tailor PRINCE2 to suit most any project’s
needs. PRINCE2 has gained wide acceptance
throughout Europe and Africa, and is
quickly gaining popularity in North America.
™

Principles of PRINCE2
PRINCE2 is a scalable method that you
can apply to projects of varying sizes and
types. The seven principles of PRINCE2 are
universal in nature, they are self-validating
due to the many thousands of projects that
have used the method, and they empower
the project management practitioner by
providing a confident approach to directing
a project.
Business Justification
PRINCE2 projects perform continuous
justification of the investment’s objectives.
Project goals are tied to the requirements
within the business case to validate that
the project continues to serve the needs
of the organization. This guides a project
team through the decision-making process
throughout the life of the project, which
keeps progress moving toward defined
business objectives. Even compulsory
projects driven by legislative mandate
require justification of the alternative
selected. PRINCE2 provides a governance
model for guiding an organization toward
an effective solution.
The continued business justification of
high-risk UK Government projects is
scrutinized by the OGC using a peer
review Gateway™ process that is
aligned to the way PRINCE2 supports
the development and management of
the business case.
Roles and Responsibilities
PRINCE2 defines the roles and
responsibilities of all stakeholders at all
stages and processes of the method.
Participation from investment oversight
board members, executive sponsors, the
project board (team), the project manager,
team managers, suppliers, and change
control authority is clearly identified
throughout the PRINCE2 method. The
activities necessary for sponsoring,
directing and managing the project are
not left to chance.
Manage by Stages
A PRINCE2 project is managed in stages,
providing control points throughout the
project lifecycle. The project manager
plans, controls and progresses the project
using a stage-gate approach. A high-level
project plan is supported by detailed stage
plans. Tranches that extend beyond the
horizon remain at a high level until
near-term work is completed to a degree
of certainty that improves likelihood of the
investment achieving its goals and objectives.
Management by Exception
Deviations experienced during a PRINCE2
project are managed by exception by
developing plans to identify variance from
baseline. Tolerances for cost, schedule,
quality, scope, risk and benefit are delegated
to the project management team, providing
an efficient use of resources to deliver with
fewer interruptions. Decisions are made at
the right level, while issues outside of
tolerance are escalated only when necessary.
Product Focused
A project exists to produce output, not
to perform activities. PRINCE2 focuses on
defining and delivering only those products
that are within the scope of the project
mandate (charter). PRINCE2 uses a product
breakdown structure to clarify the purpose,
composition, source, type, and quality
expectations of a final solution that will
fulfill the business case, defined to satisfy
the organization’s mission.
Learn from Experience
PRINCE2 is an experiential process.
Performing regular lessons learned reviews
is a key activity to success with PRINCE2.
While a project is, by definition, a unique
endeavor, the approach to running a
project is based on repeatable themes,
processes, and reusable tools. When
starting a project, the project manager
leverages the experiences of past projects,
including reuse of approaches, performance
data for benchmarking metrics and targets,
defining work plans, and estimating cost
and schedule milestones.
Tailored to fit, PRINCE2 can best serve
and support a project regardless of size,
type, organization or culture. Adapting the
PRINCE2 project management approach
to the situation ensures alignment of
processes, tools and techniques, to best
support and govern the project, while
avoiding success through heroics or forced
compliance to process. PRINCE2 can be
right-sized to the complexity and nature of
the project environment.
PRINCE2’s use of principles based
project management directs the decision
making process.
The PRINCE2 Stages
and Process Areas
PRINCE2 is a process-based method
designed to direct, manage and deliver a
project to plan. The project team performs
across seven defined process areas to
perform the many activities for delivering
the objectives of the business case. PRINCE2’s
seven processes integrate with one another
by following a stage-gate lifecycle framework.
Subsequent
Delivery
Stage(s)
Final
Delivery
Stage
Initiation
Stage
Pre Project
PRINCE2 Stage-Gates for Controlling Project Delivery
© Crown copyright 2007. Reproduced under licence from OGC. Figure 4.2 The development path of the business case – Section 4

This provides cadence to project
management activities, directing results
toward pre-defined goals, and success.
In the Pre-project Stage, the investment’s
business objectives are determined by
performing the activities in the Starting up
a Project (SU) process. The business
justifications for the investment are determined,
scope is defined, and alternatives are
analyzed. Through performance of the SU
process, the business case is established,
readying the project team to obtain
authority to proceed with the investment.
In the Directing a Project (DP) process,
the project is reviewed and approved by
an executive review board to place the
investment in the IT portfolio. DP processes
manage the business case for the duration
of the project lifecycle by providing senior-
level oversight of the investment’s progress.
The Initiation Stage continues the DP
process to provide regular oversight and ad
hoc direction of project activities. Upon
approval to proceed with the investment, the
Initiating a Project (IP) process establishes a
solid foundation for achieving project
success through the identification of project
objectives and business benefits. IP also
instructs the team to tailor project plans
and invoke governance over project
activities. Plans to control communications,
scope, cost and schedule, risks and issues,
quality, and product configuration
management are all supported by PRINCE2.
Techniques from other industry-popular
project management guides easily integrate
with the processes of PRINCE2 to monitor
and control the investment.
As the Initiation Stage completes, the
Managing a Stage Boundary (SB) process
calls for the project manager to plan the
next stage of the project. The project
manager performs a business case review,
updates the project plan, and reports
status of the investment to the project
board.
Subsequent Delivery Stages follow
the Controlling a Stage (CS) process. CS
provides guidance to the project manager
to authorize work to the project resources,
monitor and report progress, manage risks
and issues, then take corrective action on
variances to the plan. The project board
delegates day-to-day team activities and
decisions to progress the project on a
stage-by-stage basis. Activities of the CS
process assigns work to team members
to ensure that they remain focused on
delivering the products and goals of the
project plan. The Managing Product (MP)
Delivery process provides direction to the
team members. As products are delivered,
achievement to design specification is
assured; the business case is reviewed
for relevance to mission, and then the
stage plan is completed. The SB process is
again used to report and close the stage,
and then subsequent Delivery Stages in
the project plan repeat the CS and MP
processes to continue solution fulfillment.
The Final Delivery Stage completes
activities from the CS and MP processes
during this last phase of the project. Then,
using the Closing a Project (CP) process,
the project manager performs final product
acceptance testing, resolves or retires open
risks and issues, reviews the investment’s
performance to baseline, conducts a
benefits realization review, and then
recommends the project for closure to the
executive investment review board.
Seven Themes of
PRINCE2
Project management provides little value
unless it is performed with predefined
intent. PRINCE2 identifies seven themes
that are linked to project management.
Each of the seven themes in the PRINCE2
method remains in effect during the entire
project lifecycle. They are referenced
according to a predetermined workflow
of the method to minimize risk, and to
heighten the quality of team performance
and results.
Directing
Managing
Delivering
Subsequent
Delivery
Stage(s)
Final
Delivery
Stage
Pre Project Initiation
Stage
DP
SU
IP CS CS
MP MP
SB SB CP
The PRINCE2 Stage-Gate Management Model
© Crown copyright 2007. Reproduced under licence from OGC. Figure 11.1 The PRINCE2 Processes – Section 11

Business Case
A project initiates with a need to drive
transformation through an organization
to fulfill new or evolving mission
requirements. The business case defines
why a project exists. PRINCE2 uses the
business case to carry requirements
through to fulfillment, while maintaining
the project team’s focus on objectives.
Organization
The PRINCE2 method defines roles and
responsibilities at multiple levels for
directing, managing and delivering a
project. A PRINCE2 project’s organization
structure includes the executive oversight,
project board, program sponsorship, senior
users, suppliers, team managers, support
staff, and project assurance personnel.
Projects must often share resources with
other parts of an organization. Clear
identification of the extended project
team reduces confusion and minimizes
conflicting demands on staff as they serve
multiple requirements across the business.
Quality
The criteria under which project products
are verified and accepted must be
established early in the project lifecycle.
PRINCE2 applies the tenets of quality
management at the start, where they
are central to project delivery, making
the final product fit for purpose. This
supports achievement of desired benefits
defined by the business case. A robust
quality management approach reduces
the likelihood of discovering product
performance issues when it is too late.
Plans
A plan is not just a schedule, but also a
holistic approach to governance. PRINCE2
projects follow defined and approved
plans that integrate requirements, cost,
schedule, quality, risk, roles, resources,
and communications. Performance to plan
is measured in each stage of the project.
Exception Plans define deviation from
baseline, which are integrated into the
master plan to steer performance back
toward cost, schedule and quality goals.
Risk
Risk management is a key tenet of
PRINCE2. It identifies, assesses, and
controls uncertainty that may affect project
outcome. Risk planning starts early in the
PRINCE2 method, where it is first used to
mitigate project threats while initiating the
project. Where other project management
standards offer a model for managing risk,
PRINCE2 defines the procedures, tools, and
techniques for performing the risk process.
Change
Since change is inevitable for almost any
project, controlling variance to plan must
be included in the management approach
for maintaining the project baseline.
PRINCE2 identifies an approach to change
control that addresses issues that enter
the project plan. PRINCE2 integrates
change control of the project lifecycle
phase to configuration management of the
operations and maintenance phase.
Progress
The PRINCE2 method establishes
mechanisms to monitor, compare, review,
and report actual performance to baseline
objectives. Risks are mitigated, while
quality issues and problems are addressed
and corrected. Upon successful completion
of scheduled goals, the next stage plan is
authorized, progressing the project toward
completion. Numerous reporting templates
are defined by PRINCE2, that include
definitions of each report’s contents and
use, all supported by the various processes
within the method.
The Capital
Planning Lifecycle
of CPIC
So, let’s go back. The Clinger-Cohen Act
directs agencies to manage their IT budgets
by measuring the return on investment
using a Select-Control-Evaluate process.
CCA also directs OMB to perform oversight
of agency IT spending. In response to CCA,
OMB recommends that agencies apply
planning, acquisition, management, and
disposition lifecycle controls to their major
Business
Case
Risk Plans
Change Quality
Progress Organization
PRINCE2
Processes
The PRINCE2 Themes Support Performance

IT projects. Simply put, each agency must
have a defined plan for buying, building,
operating and retiring their IT assets, and
they are accountable to report project
status timely and accurately.
OMB annually releases Circular A-11,
a budget management directive that
requires agencies to report their annual
IT budget (using the Exhibit 53 form) and
report progress toward goals within the
business case of each major IT project
(using the Exhibit 300 form). However,
A-11 does not define, nor prescribe,
a project management method or
approach for tactically controlling and
delivering the project. Circular A-11 is
only a process for reporting status of the
budgeted and funded investments.
OMB provides agencies additional
direction in their A-11, Part 7 Supplement:
Capital Programming Guide (CPG). The
objective of the CPG is to show agencies
how project management activities relate
to IT investment management. It helps to
answer the question, “Will this
investment drive transformation of the
business toward the agency’s mission?”
The CPG defines a Capital Planning
Lifecycle: a four-phased approach to IT
investment management. The lifecycle
identifies strategies to achieve greater
service delivery and move program
effectiveness toward mission goals. The
CPG recommends use of risk management,
earned value management, quality
assurance and control, and other project
management techniques. However, these
are only broad brushstrokes of guidance for
the project manager. The CPG does not
define a project management method that
must exist beneath these phases. So then,
how can project managers lead their
projects toward success while meeting the
requirements of CPIC?
The CPG’s objectives of the Planning
and Budgeting phase are designed to
support IT investment decision-making.
Alignment of strategic planning to
project performance goals is determined
by utilizing an agency-level enterprise
architecture plan. An Integrated Project
Team (IPT) is established to manage
the project. The IPT formulates a
clear definition of system functional
requirements, performs an analysis of
alternatives to select the best technology
solution, and establishes operating and
reporting baselines. They must apply
risk management techniques to reduce
the chance for incurring costs associated
with delivery failure, and integrate earned
value management (EVM) into the
contract acquisition strategies. The agency
implements an executive review process
to oversee investment performance and
adjust the investment as the needs of the
mission change over time.
Upon completion of a comprehensive
planning effort to define an integrated
project plan, the agency presents its
proposed budget to OMB during the Select
phase. Approved through the President’s
budget, the initiative receives funding from
Congress to become a sanctioned project
ready for acquisition.
Quality and risk management are central to
PRINCE2, initiated during the Starting up a
Project and the Directing a Project
processes of the Pre-project stage. The
PRINCE2 method supports the CPIC
Planning and Budgeting phase through
development of the project business case.
The project manager justifies the business
case to ensure that the investment is
planning to build the right product, is
fulfilling the right business need, and that the
final products will serve the organization’s
mission. Once the business case is reviewed
and accepted by the investment board, the
project is authorized to proceed to the
Initiation Stage.
PRINCE2 keeps a focus on the business
case to maintain IT business value.
CPIC’s requirement for EVM necessitates
a “deliverables-based” work breakdown
structure to define project scope. During
the PRINCE2 Initiation stage, the product
breakdown structure becomes the
framework for managing solution delivery.
Activities of the PRINCE2 Directing a
Project process establish oversight and
governance to lead investment plans
toward mission goals.
Business
Requirement
Planning
& Budgeting
Acquisition Management
In-use
Disposition
IT System
Requirement
Integrated Project Plan
Select Control Evaluate
The Capital Planning Lifecycle

In the Acquisition phase of the Capital
Planning Lifecycle, the project team
validates decisions and objectives from the
Planning and Budgeting phase. The team
re-examines the mission needs to affirm
investment justifications in the business
case to determine a “build versus buy”
acquisition strategy. The IPT addresses
acquisition risks, and then the project is
initiated. Teams are established, contract
support secured, and then development
activities of the Acquisition phase commence.
An Executive Review Committee (ERC)
assesses the project team’s plan for
solution delivery. Following a successful
procurement, the IPT operates project
governance that integrates scope, cost,
schedule and quality into a comprehensive
project management approach. EVM
is used to monitor and control planned
and actual results of both government
and contractor resources applied toward
development activities. Once the integrated
project plan is approved by the ERC, a
baseline is recorded as the project plan.
The Control phase of CPIC is used to measure
and improve investment performance. It
instructs project managers to perform
regular monitoring of product development
progress, cost, schedule and performance
variance, review of scope within the work
breakdown structure, and assessment of
risk to the investment. Change control must
be applied to maintain progress toward
contractual scope. Investment control and
oversight is in the hands of the project
manager during the Control phase. Periodic
status reports are brought to the ERC.
As part of the CPIC Evaluate Phase, the
IPT and ERC conduct reviews of project
progress to reaffirm the acquisition
decision. The ERC recommends corrective
action plans where necessary to keep
the project moving toward its strategic
and mission goals. Solution acceptance
activities of the Acquisition phase include
a complete review of delivered products
to affirm that they meet all requirements
and objectives defined by the business
case. Product quality reviews, system
testing, and recording IT assets into a
configuration management baseline also
happen. Any product deviations discovered
during solution acceptance are addressed
through rework or an accepted variance to
plan. Additionally, contract performance
requirements are assessed to determine the
contractor’s success to the cost, schedule
and performance goals of the contract.
PRINCE2 uses a stage-gated approach to
controlling project progress.
PRINCE2 Project Management for CPIC
PRINCE2 Stage-Gate Project Management
Subsequent
Delivery
Stage(s)
Final
Delivery
Stage
Stage
Subsequent
Delivery
Stage(s)
Final
Delivery
Stage
Stage
Integrated Project Team
Planning
& Budgeting
Acquisition DispositionManagement
In-use
Select Control Evaluate

The PRINCE2 Controlling a Stage process
continues to provide justification of
Acquisition phase activities performed
during Subsequent Delivery Stages. The
PRINCE2 processes provide oversight of
product development activities, guiding
the project team as they fulfill business
case requirements. The project manager
conducts a review of the investment’s
status to the detailed business case. Impact
assessments are performed on any new
or existing risks and issues. The project
manager assesses progress towards cost,
time, quality and benefit goals. Exception
plans are introduced to address and correct
variances to baselines. The project manager
reviews completed work packages against
defined specifications. Configuration
records and stage plans are updated upon
acceptance. Then, following the Managing
a Stage Boundary process at the end of
each Delivery Stage, the Project Board
authorizes continuation to the next stage
plan for the project.
Management In Use
and Disposition
Once the IT system goes into production,
the Evaluate Phase of CPIC prescribes that
the project manager performs regular
Operational Analysis (OA) to measure
investment performance to predefined
goals, and to determine, measure and
report on the return on investment.
Operational Analysis requires regular
monitoring of achievement toward original
business objectives. Performance goal
baselines are defined, thresholds set and
measurements taken to improve service over
time while driving operational costs down.
This continues until the asset is taken out of
service (retired) during the Disposition Phase.
Management in Use involves post project
operations of the IT system. To enter this
phase of the Capital Planning lifecycle, the
delivered IT solution must meet the defined
requirements of PRINCE2’s Product
Descriptions. The IT solution must also
perform to the objectives of the business
case. The PRINCE2 Managing Product
Delivery (MP) and Closing a Project (CP)
processes ensure that the project has met
its requirements and is ready to enter the
final phases of the Capital Planning lifecycle.
In Summary
Since introduction of the Clinger-Cohen
Act in 1996, agency CIOs and project
managers across the US Federal
government have been working to improve
their IT investment management practices.
The OMB A-11, Part 7 Supplement: Capital
Programming Guide provides project
managers guidance on the four phases of
the Capital Planning Lifecycle, while
oversight performed using Capital Planning
and Investment Control monitors the value
returned from the dollars invested in IT
assets. However, without a project delivery
method that supports the control and
reporting requirements of CCA and CPIC,
teams continue to struggle to operate
projects that exhibit best practices that
produce the right measures required by OMB.
Best practices defined in commercially
driven project management guides fail to
provide an approach that connects project
management methods to the IT portfolio
results defined by CPIC business cases.
In contrast PRINCE2 is a scalable and proven
project management method, having
supported government and commercial
projects for more than two decades. It
supports continuous justification of the IT
investment by focusing on sustainment of
the business case, driving results to the
organization’s mission.
PRINCE2 is scalable to the enterprise, has no
cost to use and supports US government
IT Investment Management controls.
The processes of PRINCE2 are scalable to
suit various sized projects, ranging from
only thousands of dollars to those that are
tens of millions in scope. Project team
performance is governed through stage-
gated project plans, measuring progress of
product delivery, not activities. Most
important, PRINCE2 defines the roles of
stakeholders, the project board and
delivery teams. It establishes governance,
process and controls to bring the
investment from concept to fulfillment of
the mission objectives, all the while
improving the project management
practices of the agency.
Trademarks and
Acknowledgements
PRINCE2™ is a Trade Mark of the Office•
of Government Commerce.
The swirl logo™ is a Trade Mark of the•
Office of Government Commerce.
PRINCE2 content, diagrams and logo’s•
are correct at time of going to press but
may be subject to change without notice.
PRINCE® is a Registered Trade Mark of•
the Office of Government Commerce in
the United Kingdom and other countries
For Further Information:
www.ogc.gov.uk
www.best-management-practice.com
www.usergroup.org.uk
www.apmgroup.co.uk
Our White Paper series should not be taken
as constituting advice of any sort and no
liability is accepted for any loss resulting
from use of or reliance on its content.
While every effort is made to ensure the
accuracy and reliability of the information,
TSO cannot accept responsibility for errors,
omissions or inaccuracies.
Content, diagrams, logos and jackets are
correct at time of going to press but may
be subject to change without notice.
Author
Richard Tucker is a management
consultant with more than 20 years of
experience in IT project management
and Federal capital investment
management. He provides practical
knowledge and advice to US Federal
agencies and departments. He is a
certified PRINCE2 Practitioner and
a Project Management Professional
(PMP). He is an active member of the
Federal CPIC Forum and contributor to
numerous online communities where
he shares his interest and experiences in
project management methodology and
tools implementation.
White Paper
August 2009
Richard Tucker, PMP
Certified PRINCE2 Practitioner

PRINCE2_for_Fed_Gov_Projects

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