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Question 212

When reviewing the draft project plans, the executive has identified that it will be necessary to receive corporate investment approval during stage 3. The executive has asked the project manager to split stage 3 into two management stages (3A and 3B), with the key investment decision taking place at the end of stage 3A.

Is this an appropriate application of the 'manage by stages' principle, and why?

    Correct Answer: B

    This is an appropriate application of the 'manage by stages' principle because the key investment decision will now be linked to a project control point. By splitting stage 3 into two management stages (3A and 3B), it allows the project to have a clear point for the executive to review and decide on further investment before proceeding. This ensures that critical decisions are made at structured intervals, which is a key tenant of the 'manage by stages' principle.

Discussion
ravi_awsOption: B

While stage length is ideally based on products, it is appropriate here to split a stage to properly align governance. This also does not inherently increase complexity. Therefore, B is correct - this approach applies 'manage by stages' well by linking the key investment decision to a project control point between stages.

MortenCOption: B

B: 3.4