PRINCE2 Processes · Topic 4 of 4
Managing a Stage Boundary and Closing a Project
PRINCE2 7 managing a stage boundary and closing a project: purpose, objectives, context, exception plans, end stage and end project reports, early closure.
- 6 min
- Managing a stage boundary runs near the end of every stage except the last.
- It also prepares exception plans when the board asks for one.
- Outputs: end stage report, next stage plan, updated project plan and business case.
What it is
Managing a stage boundary gives the project board the information it needs to decide whether the project should continue to the next stage. Closing a project provides a fixed point to confirm that the project product has been accepted and that the project can be closed.
Both are carried out by the project manager, and both end with a decision by the project board in directing a project.
How it works
Managing a stage boundary: purpose
The purpose of managing a stage boundary is to enable the project board to be provided with sufficient information by the project manager so that it can review the success of the current stage, approve the next stage plan, review the updated project plan, and confirm continued business justification and acceptability of the risks.
The process is also used to prepare an exception plan when a stage or the project is in exception.
Managing a stage boundary: objectives
| Objective | In plain words |
|---|---|
| Assure the board that all products in the current stage plan have been completed and approved | The stage is really finished |
| Prepare the stage plan for the next stage | Detailed planning within the planning horizon |
| Review and, if necessary, update the PID | Approaches, controls and team still fit |
| Provide the information the board needs to assess continuing viability | Updated business case and risks |
| Record lessons that can help later stages or other projects | Lessons log and, if needed, a lessons report |
| Request authorisation to start the next stage | The board decides |
When in exception, the objective becomes preparing an exception plan and requesting the board's approval to replace the current plan.
Managing a stage boundary: context
The process happens near the end of each stage, except the final stage, and after an exception report when the board asks for an exception plan.
Its main outputs are the end stage report, the next stage plan (or exception plan), an updated project plan and business case, and possibly a lessons report. The board may decide to continue, change direction or close the project early.
Closing a project: purpose
The purpose of closing a project is to provide a fixed point at which acceptance of the project product is confirmed, and to recognise that objectives set out in the original PID have been achieved, or approved changes to them have been achieved, or that the project has nothing more to contribute.
Closing a project: objectives
| Objective | In plain words |
|---|---|
| Verify user acceptance of the project's products | Acceptance criteria met and signed off |
| Ensure the host site can support the products when the project is disbanded | Operations and maintenance ready |
| Review the project's performance against its baselines | Compare with the PID |
| Assess any benefits already realised, update the forecast of remaining benefits and plan reviews of benefits not yet realised | Benefits management approach updated |
| Ensure provision has been made for open issues and risks, with follow-on action recommendations | Nothing is left unowned |
Closing a project: context
Closing a project happens near the end of the final stage. The project manager prepares for closure, hands over products, evaluates the project and then recommends closure to the board. The board authorises closure in directing a project, and the project management team is disbanded.
| Planned closure | Premature closure |
|---|---|
| All products delivered and accepted | The board instructs the project manager to close early |
| End project report compares results with the PID | Products already finished are handed over or made safe |
| Follow-on actions for open items | Gaps are recorded and follow-on actions recommended |
A project closed early because it no longer has a business justification is a sign that PRINCE2 is working, not failing.
A worked example
A charity's fundraising platform project has four stages. Near the end of stage two, the project manager prepares the end stage report and the stage three plan, updates the business case for a higher hosting cost, and records a lesson about early supplier testing. The board authorises stage three.
In stage four, the platform passes its acceptance criteria. The project manager hands the platform to the charity's digital team with a support contract, writes the end project report and a lessons report, and lists follow-on actions for two open minor issues. The board authorises closure, and a benefits review is planned for six months later.
How the exam asks about this
- "Which process enables the project board to approve the next stage plan and confirm continued business justification?" Managing a stage boundary.
- "Which is an objective of closing a project?" To verify user acceptance of the project's products (or to review performance against baselines).
- "When is managing a stage boundary NOT used?" At the end of the final stage, where closing a project is used instead.
What to remember for the exam
- Managing a stage boundary runs near the end of every stage except the last.
- It also prepares exception plans when the board asks for one.
- Outputs: end stage report, next stage plan, updated project plan and business case.
- Closing a project gives a fixed point to confirm acceptance of the project product.
- A project can be closed prematurely; that is a legitimate outcome.
Closing a project does not confirm all benefits. Many benefits are measured after closure, through reviews planned in the benefits management approach.
Common mistakes
Running managing a stage boundary at the end of the final stage. The final stage leads into closing a project.
Letting the project manager close the project alone. The project manager recommends closure; the project board authorises it.
Forgetting operations. Closure must confirm the products can be supported after the project team is disbanded.
Check yourself
What does the project board decide after managing a stage boundary?
Whether to authorise the next stage (or an exception plan), change direction or close the project early.
Why is closing a project described as a fixed point?
It is the point at which acceptance of the project product is confirmed and the project's objectives are recognised as achieved or no longer worth pursuing.
What happens to open issues and risks at closure?
They are passed on as follow-on action recommendations so that nothing is left unowned.
Topic 4 of 4 in PRINCE2 Processes
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