Masaryk University Faculty of Economics and Administration Field of Study: Business Management IMPLEMENTING THE PRINCE2 PROJECT MANAGEMENT METHOD IN AN EXISTING PROJECT ENVIRONMENT Master's Thesis Supervisor: Author: Tuck Lloyd Crawford Macrae, M. B.A. Liliia Demianchuk Brno, 2020 MASARYKOVA UNIVERZITA Faculty of Economics and Administration MUNI Lipová 41a, 602 00 Brno IČ: 00216224 ECON DIČ: CZ00216224 Master's thesis description Academic year: 2019/2020 Student: Liliia Demianchuk Programme: Economy and Management Field of Study: Business Management (Eng.) Title of the thesis/dissertation: Implementing the PRINCE2 Project Management Method in an Existing Project Environment Title of the thesis in English: Implementing the PRINCE2 Project Management Method in an Existing Project Environment Thesis objective, procedure and methods used: This is a case study based thesis. It is the responsibility of the student to find a selection of appropriate companies on which to base the case study. The final selection must be appro- ved by the supervisor. Approach and methods used: 1. Bac- kground research which, at a minimum, addresses what is pro- ject management, what standard methods are available to or- ganisations, comparisons of the methods, waterfall and agile delivery methods and their impact on method implementation; 2. A thorough analysis of the project management policies, procedures, processes, and methods used by the company under study; 3. A comparison between the PRINCE2 method and the company’s policies, procedures, processes, and me- thods. 4. Findings and Recommendations covering, at a mini- mum, how PRINCE2 can be embedded into the organisation including actions required, timelines and costs, a complete ex- planation of the potential financial and non-financial benefits, and an analysis of the potential risks and possible risk miti- gation. Self-study and extensive research is required. The stu- dent is expected to expand well beyond the literature listed and demonstrate substantial additional learning. Extent of graphics-related work: According to thesis supervisor’s instructions Extent of thesis without supplements: 60 – 80 pages Literature: Agile contractscreating and managing successful projects with Scrum. Edited by Andreas Opelt. Hoboken, N.J.: Wiley, 2013. xiv, 282 p. ISBN 9781118640128. Directing Successful Projects with PRINCE2®. : Axelos, 2009. 166 s. ISBN 978-0-11-331060-9. Managing successful projects with Prince2. Sixth edition. Norwich: Axelos, 2017. 327 s. ISBN 978-0-11-331533-8. PRINCE2 Agile® Guidance. : Axelos, 2015. 360 s. ISBN 978-0-11-331467-6. Thesis supervisor: Tuck Lloyd Crawford MacRae, M. B.A. Thesis supervisor’s department: Department of Corporate Economy Faculty of Economics and Administration Page 1 of 2 Thesis assignment date: 2019/05/15 The deadline for the submission of Master’s thesis and uploading it into IS can be found in the academic year calendar. In Brno, date: 2020/05/09 Page 2 of 2 Name and surname of the author: Liliia Demianchuk Master's thesis title: Implementing the PRINCE2 Project Management method in an existing project environment Department: Business Management Master's thesis supervisor: Professor Tuck Lloyd Crawford Macrae M. B.A. Master's thesis date: 2020 Abstract This research is qualitative, empirical research, based on the case study of XYZ company, in particular, one of XYZ's development teams - the FI-CA team. The primary goal of the thesis is to test the hypothesis that PRINCE2 methodology can be tailored to the project environment of the analyzed company and combined with agile concepts, that positively affects existing procedures, policies, and processes, techniques of the FI-CA team. The tailoring of PRINCE2 methodology is considered in combination with Agile philosophy which is the foundation of XYZ's development and delivery concept, and partially implemented in the FI-CA team. The theoretical part of the thesis provides a comprehensive literature overview, particularly PRINCE2 and its integrated elements as well as the Agile framework, to form the theoretical foundation for the study. The practical part of the study comprises the analysis of XYZ as a whole and the process of project handling in the FI-CA team specifically. Thereafter, recommendations are comprehended based on the results of the PRINCE2 Agile Health Check with the summary of identified inconsistencies and flaws of the existing methodology used by the FI-CA team. Recommendations include improvement and deployment of existing agile practices that are compliant with the XYZ's transformation strategy, and tailoring the PRINCE2 framework to the unique environment and conditions of the FI-CA team. The last part with the evaluation of the performance of the FI-CA team and key benefits attained while using PRINCE2 Agile methodology proves the formulated hypothesis. Keywords: Project Management, PRINCE2 Methodology, Agile, Scrum, PRINCE2 Agile Methodology, the FI-CA team, development, software solutions. Declaration “I certify that I have written the Master’s Thesis “Implementing the PRINCE2 PM method in an existing project environment” by myself under the supervision of Tuck Lloyd Crawford Macrae, M. B.A.and I have listed all the literary and other specialist sources in accordance with legal regulations, Masaryk University internal regulations, and the internal procedural deeds of Masaryk University and the Faculty of Economics and Administration.” Brno, Liliia Demianchuk Acknowledgments Above all things, I would like to express my gratitude to my supervisor and mentor, professor Tuck Macrae, for guiding, supporting and encouraging me throughout the study. Also, I am grateful for the chance to work on the topic directly linked to my work, which helped me to turn the theoretical research into a practice-oriented case study. Besides this, I am grateful for the opportunity to join the XYZ company, in particular the FI-CA team. I am thankful for the support, openness and professionalism of my colleagues. Last but not the least, I express my gratitude to my family and boyfriend that walked this whole way by my side and believed in me unconditionally. Table of Contents Introduction ................................................................................................................................ 9 Theoretical overview................................................................................................................. 11 Project Management Methodology: emergence, evolution and current phase ..................... 11 Project Management Methodology: definition and comparison of the most recognized methodologies ....................................................................................................................... 17 PRINCE2 Agile Approach: complex solution suitable for the IT industry .......................... 30 Research Methodology ............................................................................................................. 36 Research Process ................................................................................................................... 36 Research object and research questions ................................................................................ 36 Literature Review .................................................................................................................. 37 Practice-oriented case-study .................................................................................................. 37 Research Hypothesis ............................................................................................................. 38 Data Collection...................................................................................................................... 38 Data Analysis ........................................................................................................................ 40 Industry and Company Overview ............................................................................................. 41 Enterprise Software Industry Overview and Growth ............................................................ 41 Software Industry Trends .................................................................................................. 43 XYZ Company: Overview .................................................................................................... 44 XYZ's Overview and Financials ........................................................................................ 44 Organizational Landscape and Corporate Culture ............................................................ 47 GS FI and FI-CA Team: Overview and Structure ............................................................. 49 Project Management Overview ......................................................................................... 51 Analysis of the XYZ PM Approach ........................................................................................... 59 Health check – PRINCE2 Agile version ............................................................................... 59 Agile Behaviors ................................................................................................................. 60 Agile Environment ............................................................................................................ 61 Agile Process ..................................................................................................................... 62 Agile Techniques ..............................................................................................................