The purpose of the Organization theme is to define and extablish the project's structure of accountability and responsibilities.
PRINCE2 is based on a customer/suppler environment. it assumes that there will be a customer who will specify the desired result and probably pay for the project. And a supplier who will provide the resources and skills to deliver said result.
Every project needs effective direction, management, control and communication. Establishing an effective project management team structure and strategy for communication at the beginning of the project's life are essential elements of a project's success.
One of the principles of PRINCE2 is that all projects must have a defined organizational structure to unite (not untie) the various parties in the common aims of the project and to enable effective project governance and decision making.
A successful project management team should;
PRINCE2 defines a project as "a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case". It needs to be flexible and it likely to require a broad base of skills for a comparatively short time.
A project can be run as a stand-alone entity or can be part of a programme of related projects. A programme is a temporary flexible organizational structure created to coordinate, direct and oversee the implementation of a set of related projects and activities, in order to deliver outcomes and benefits related to the organzation's strategic objectives. It is likely to have a longer life than a single project. A project which forms part of a programme may be impacted by the programme structure and reporting requirements.
A project may or may not form part of a programme. We will, however, exist within the wider context of a corporate organization. Corporate organizational structures can vary from "traditional" functional structures, where staff are organized by type of work (Marketing, finance, sales etc.) to project focused corporate organizations, which work with project teams as a norm, to variations in between.
In order to be flexible and meet the needs of different environments and different project sizes, PRINCE2 does not defien management jobs to be assigned. It defines roles, each of which is defined by is defined by an associated set of responsibilities. Roles might be shared or combined accordign to the project's needs but the responsibilites must always be allocated. When combining roles, consideration should be given to any conflicts in responsibilities, and whether and bottlenecks might be created as a result.
The PRINCE2 principle of defined roles and responsibilites states that a PRINCE2 project will always have three primary categories of stakeholder, and the interests of all three must be satisfied if the project is to be successful. The three primary interests that make up the project board are from the Business, the User and the Supplier.
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