PRINCE2F People: organizations, teams, and leadership Practice Test 3 — 15 Questions

Question 1

The project board decides to use majority voting for all decisions. What is a potential issue with this decision-making process?

Accepted Answer

Using majority vote may undermine the principle of unified direction. PRINCE2's principle of 'continued business justification' and the requirement for unified direction mandate that the project board make decisions by consensus, not by majority vote. The project board represents business, user, and supplier interests as a single cohesive unit; majority voting would risk dividing the board and undermining the principle of unified direction, as it could allow one interest to override others without full agreement.

Answer

Progress reports are too frequent, causing information overload

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The Senior Supplier is represented by an individual rather than the organization

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The roles are filled by three individuals, but there should be only two

Question 2

A project manager notices that team members are frequently bypassing the project's defined escalation paths and going directly to senior stakeholders with issues. This is causing confusion and undermining the project's governance. Which PRINCE2 principle is being violated?

Accepted Answer

Manage by stages. 'Manage by stages,' because the PRINCE2 principle of managing by stages requires that each stage be planned, monitored, and controlled with defined escalation paths for issues. When team members bypass these paths and go directly to senior stakeholders, they undermine the stage-by-stage control and governance, violating the principle that decisions and escalations should follow the established stage boundaries and management levels.

Answer

Defined roles and responsibilities

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Learn from experience

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Continued business justification

Question 3

In a PRINCE2 project, the project board is concerned that the project manager is not effectively communicating with key stakeholders. The project manager recently presented a detailed risk report to the board, but several board members were unaware of the critical risks identified. Which communication management activity should the project manager have performed to ensure the board was properly informed?

Accepted Answer

Agreed on the communication management strategy with the board. The PRINCE2 communication management strategy defines how, when, and to whom information should be communicated. The project manager should have agreed on this strategy with the board upfront, ensuring that critical risks are reported in a format and frequency that meets the board's needs. Without this agreement, the board was not properly informed despite the detailed risk report being presented.

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Included the critical risks in the project plan

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Prepared a highlight report instead of a detailed risk report

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Updated the risk register and sent it to the board

Question 4

Which TWO of the following are responsibilities of the Project Manager in PRINCE2?

Accepted Answer

Producing the Project Plan. The Project Manager is responsible for producing the Project Plan, which includes the detailed schedule, resource allocation, and cost estimates. This is a core PRINCE2 responsibility, as the Project Manager owns the planning process and ensures the plan aligns with the project's business case and stage tolerances.

Answer

Ensuring the project meets user needs

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Providing business assurance

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Authorizing stage boundaries

Question 5

Refer to the exhibit. According to PRINCE2, to whom should the Team Manager report the potential delay?

Accepted Answer

The Project Manager, Sarah Lee. In PRINCE2, the Team Manager is responsible for delivering the work package and reports to the Project Manager on progress, issues, and risks. The Project Manager (Sarah Lee) is the single point of contact for the Team Manager within the project management team. Therefore, any potential delay must be reported to the Project Manager, who will then escalate to the Project Board if necessary.

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The Executive, John Smith

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The Project Assurance, Peter Black

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The Senior User, Mary Johnson

Question 6

A large IT project is implementing a new customer relationship management (CRM) system for a multinational corporation. The project is organized with a Project Board comprising the Executive (VP of Sales), Senior User (Regional Sales Director), and Senior Supplier (IT Director). The Project Manager is an experienced PMP-certified professional. The team includes several business analysts and developers from an external supplier. The project has just completed the Initiating a Project process and received authorization to proceed to the next stage. However, during the first week of the Delivery Stage, the Project Manager notices that the business analysts are not collaborating effectively with the developers, leading to misunderstandings about requirements. The Project Manager holds a meeting and discovers that the business analysts feel excluded from decision-making and the developers complain about unclear specifications. The Project Manager wants to resolve this using PRINCE2 principles and practices. Which of the following is the BEST course of action?

Accepted Answer

Revisit the Communication Management Strategy and clarify roles and responsibilities in the team.. PRINCE2's Communication Management Strategy is the formal mechanism for defining roles, responsibilities, and information flows. By revisiting it, the Project Manager can clarify the business analysts' and developers' roles in decision-making and requirements specification, directly addressing the root cause of misunderstandings. This aligns with the 'Manage by Stages' and 'Defined Roles and Responsibilities' principles, ensuring the team collaborates effectively without unnecessary escalation or personnel changes.

Answer

Ignore the issue as it is a normal part of team dynamics and will resolve itself over time.

Answer

Replace the business analysts with more experienced ones who can work better with developers.

Answer

Escalate the issue to the Project Board for a decision on how to restructure the team.

Question 7

Drag and drop the steps to close a project in PRINCE2 into the correct order.

Accepted Answer

Prepare closure, Hand over products, Evaluate the project, Recommend project closure, Close the project. Closing a Project involves preparing closure, handing over products, evaluating, recommending closure, and then formally closing.

Answer

Evaluate the project, Prepare closure, Hand over products, Recommend project closure, Close the project

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Hand over products, Prepare closure, Evaluate the project, Close the project, Recommend project closure

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Prepare closure, Evaluate the project, Hand over products, Close the project, Recommend project closure

Question 8

Match each PRINCE2 role to its responsibility.

Accepted Answer

Executive: Responsible for the business case and ensuring the project delivers value.. The Executive owns the business case, the Senior User represents users, the Senior Supplier provides resources, and the Project Manager runs day-to-day operations. Common confusions include swapping the Executive's accountability with the Project Manager's authority, or mixing the Senior User's focus on requirements with the Senior Supplier's resource provision.

Answer

Executive: Manages the project on behalf of the Project Board.

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Senior User: Ensures the project has sufficient resources.

Question 9

Which role is responsible for maintaining the Business Case throughout the project?

Accepted Answer

Executive (Senior Responsible Owner). The Executive (Senior Responsible Owner) is accountable for the Business Case and its maintenance throughout the project. The Project Manager develops and maintains the Business Case on behalf of the Executive, but accountability rests with the Executive.

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Project Manager

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Senior User

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Project Assurance

Question 10

A project is forecast to exceed its stage cost tolerance. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await direction. PRINCE2 dictates that when a project manager forecasts a deviation beyond the stage's cost tolerance, they must raise an Exception Report to the Project Board. The Project Board then decides on corrective action, such as approving a revised plan or closing the project. This ensures governance and control over the project's financial limits.

Answer

Increase the stage budget and continue with the current plan

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Continue with the plan and report the overrun in the next Highlight Report

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Close the project immediately as the Business Case is no longer viable

Question 11

What is the key difference between Project Assurance and a quality review?

Accepted Answer

Project Assurance is an ongoing role, while a quality review is a specific event to evaluate a product. Project Assurance is an ongoing, independent oversight role that ensures the project remains aligned with its business justification and adheres to standards throughout the project lifecycle. In contrast, a quality review is a specific, time-boxed event (e.g., a PRINCE2 quality review technique) used to evaluate a completed product against its quality criteria. The key difference is that Project Assurance is a continuous role, while a quality review is a discrete event.

Answer

There is no difference; they are different terms for the same activity

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Project Assurance is performed by the Project Manager, while quality reviews are performed by team members

Answer

Project Assurance focuses on financial aspects only, while quality reviews focus on technical aspects

Question 12

Which role manages the day-to-day execution of a Work Package?

Accepted Answer

Team Manager. The Team Manager is the role responsible for the day-to-day management of a Work Package within a PRINCE2 project. They report to the Project Manager and ensure that the work is completed according to the agreed tolerances, quality criteria, and schedule. This is defined in the PRINCE2 manual under the 'Organizing' theme, where the Team Manager is specifically tasked with coordinating the team's work and reporting progress.

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Project Support

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Senior User

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Project Manager

Question 13

The Project Board has not met for several months. According to PRINCE2, when should the Project Board meet?

Accepted Answer

At stage boundaries and when an Exception Report is raised. PRINCE2 recommends that Project Boards meet at the end of each management stage (Stage Boundary) and when an Exception Report is raised. They should not meet on a fixed monthly basis; meetings are exception-driven.

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Weekly

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Monthly

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Only at the end of the project

Question 14

Who is responsible for ensuring that Project Assurance is performed?

Accepted Answer

Project Board. The Project Board is accountable for the project and must ensure that independent assurance is in place. The Executive (SRO) often appoints assurance roles, but ultimate responsibility lies with the Project Board.

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Project Manager

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Senior Supplier

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Team Manager

Question 15

In PRINCE2, what is the recommended leadership style for a Project Manager when dealing with a team that has high competence and low commitment?

Accepted Answer

Supporting. In PRINCE2, the recommended leadership style for a Project Manager when the team has high competence but low commitment is Supporting (S3). This is because the team already possesses the necessary skills and knowledge (high competence) but lacks motivation or confidence (low commitment), so the PM should focus on encouraging, praising, and involving them in decision-making rather than providing technical direction or close supervision.

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Coaching

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Delegating

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Directing