A Project Management Framework For Small-And Medium-Sized Entities: Accounting Software Implementation
A Project Management Framework For Small-And Medium-Sized Entities: Accounting Software Implementation
A Project Management Framework For Small-And Medium-Sized Entities: Accounting Software Implementation
Author: Small- and medium-sized entities (SMEs) continuously face the challenge of proper
William A. Bishop1
implementation of accounting packages. Not managing the package installation and
Affiliation: configuration processes properly will result in the accounting software not working properly
1
School of Accountancy, and not achieving the strategic goals of the SME. The purpose of this study was to examine, by
Stellenbosch University, means of an extensive literature review, the potential of PRINCE2 (Projects in Controlled
South Africa
Environments) as a project-management framework for application by SMEs during the
Corresponding author: implementation of new accounting software. The potential of scaling down PRINCE2 to a
William Bishop, version usable to SMEs was investigated. PRINCE2 was found to be a suitable framework for
[email protected] use by SMEs in the implementation of accounting software packages, but only if tailored
properly to incorporate the specific needs of the SME and adjusted to specifically address
Dates:
Received: 31 Mar. 2017 strategic alignment issues. Recommendations by other researchers on the weaknesses and
Accepted: 12 Nov. 2017 shortcomings of the PRINCE2 framework were also investigated and included in the
Published: 18 Apr. 2018 development of a new model for SMEs. This article contributes to the academic literature by
providing it with a standard tailored version of PRINCE2 that can be used by SMEs in the
How to cite this article:
Bishop, W.A., 2018, ‘A project implementation of new accounting software.
management framework for
small- and medium-sized
entities: Accounting software
implementation’, Journal of
Introduction
Economic and Financial During the implementation of new accounting software packages, proper project management
Sciences 11(1), a183. http://
tools are very important in order for the accounting package to be properly installed and for it to
dx.doi.org/10.4102/jef.
v11i1.183 operate as a business system for small- and medium-sized entities (SMEs). Olugbode et al. (2008)
describe a business system as all the tools, techniques and procedures that have to be used by the
Copyright: entity for data processing. It was found that project management tools are rarely used by smaller
© 2018. The Authors.
Licensee: AOSIS. This work
companies on smaller projects (Marcelino-Sádaba et al. 2014; Turner, Ledwith & Kelly 2009).
is licensed under the A lack of control over the implementation of accounting packages is another reason why small
Creative Commons accounting packages fail to manage and deliver the required outputs for the business. Kruger and
Attribution License. Rudman (2013) addressed how a framework such as Projects in Controlled Environments
(PRINCE2) can be used to align the implementation of an accounting software package with a
business’s strategies, addressing what is commonly known as the information technology (IT)
gap. PRINCE2 is a framework suitable for project management, but it focuses mainly on large
implementation projects (Marcelino-Sádaba et al. 2014). The need therefore arose for a framework
for smaller projects that can be used by SMEs during the implementation of small accounting
packages to ensure alignment of business imperatives or strategies with the accounting package
functionalities (Kruger 2012).
One of the main problems entities face when implementing new accounting software is failure to
follow a controlled implementation approach (Kruger & Rudman 2013). Many publications focus
on the consequent failure of information systems (ISs) if proper project management principles
are not followed (Kruger 2012; Umble, Haft & Umble 2003). Reasons for failure include risks that
are not identified and addressed during the implementation phase (Verner & Evanco 2005),
software not working as desired and strategic alignment not reached. This further leads to the
accounting package not being configured properly and not operating in a way that enables the
business to successfully manage its business system (Kruger 2012).
Read online:
Scan this QR Many project management frameworks are available, and research has shown that following
code with your
smart phone or project management frameworks in the implementation of ISs contributes to strategic alignment
mobile device (Kruger & Rudman 2013) and addressing project risk (Marcelino-Sádaba et al. 2014). Little
to read online.
research is, however, available on specifically addressing additional challenges faced by SMEs
when it comes to project management. Most frameworks that software implementation lies in the correct identification of
are available for project management are suitable for project risk at the start of the project (Verner & Evanco
application by larger entities, but not suitable for use by 2005). Marcelino-Sádaba et al. (2014) concluded in one of
SMEs (Turner et al. 2009), and a tailored version of PRINCE2, their studies on small firm projects that project risks often
suitable for use by SMEs, is currently not available in the tend to play out during the initial and final stages of the
market. Reasons include additional challenges such as the projects. They found it to be because of a lack of oversight
complexity of frameworks, their generic nature and time in these two stages. Identifying strategic business objectives
constraints with regard to tailoring of models. A non- and incorporating them into the management of software
empirical approach in the form of an extended literature implementation projects for SMEs are critical for successful
review was followed in this study and identified the options software implementation, especially because most SMEs
available to SMEs to overcome these additional challenges find themselves in a competitive environment in which, to
when selecting a project management framework. This study survive, they need to reduce costs as far as possible (Dasari
also develops a standard tailored version of PRINCE2, et al. 2015). Increased competition between companies
incorporating recommendations by other authors on adds pressure on businesses to have a well-functioning,
addressing PRINCE2 shortcomings and weaknesses (Kruger competitive IT system but at the same time lowering costs
& Rudman 2013), which can be used by SMEs during on all possible levels (Umble et al. 2003), and financial
accounting software implementation. resources of SMEs are already lower than larger entities
(Falkner & Hiebl 2015). Small- and medium-sized entities
Related literature often also do not invest in larger projects with higher risk
because of the cost implication, resulting in missed
Small- and medium-sized entities are a very important part
opportunities (Gama & Geraldes 2012).
of economies worldwide (Burgstaller & Wagner 2015). In
Europe, they are seen as the key sources of jobs, almost two-
Little has, however, been published on strategic alignment
thirds of jobs are produced by SMEs (Gama & Geraldes 2012).
and project management within SMEs (O’Sheedy 2012). The
Small- and medium-sized entities also develop the innovative
need arises to address this and to identify reasons why SMEs
entrepreneurial spirit of markets (Marcelino-Sádaba et al.
tend to not generally use proper project management
2014; Matejun 2014). Globally, SMEs are seen to be the
frameworks during the implementation of new software
foundation of economic growth and as a result find
(Marcelino-Sádaba et al. 2014). It is widely argued that by
themselves in a competitive environment as they need to
following proper project management techniques for projects
directly compete with larger entities in the same markets
like these, it leads to better quality, reduced time and lower
(Dasari, Jigeesh & Prabhukumar 2015).
costs (Dasari et al. 2015; Hermida, De la Fuente & García
2016; Kruger & Rudman 2013).
For SMEs to successfully compete and prevent their business
systems from failing (Dwivedi et al. 2015), proper alignment
Various project management frameworks are available to
of business strategies with IT strategies is key. Non-alignment
entities to assist in IS project management (i.e. PMBoK –
of SMEs business strategies with IT strategies limits growth
Project Management Body of Knowledge, PRINCE2, ICB –
and ultimately survival (Li et al. 2016). Good project
IPMA Competence Baseline) (Marcelino-Sádaba et al. 2014).
management principles should be followed (Dasari et al.
These frameworks are, however, often more suitable for
2015) to successfully manage strategic alignment of an
implementation by larger entities because of their complexity
entity’s business strategies with its newly installed accounting
software to prevent failure (Dwivedi et al. 2015) and to assist (Marcelino-Sádaba et al. 2014) and do not specifically address
in the implementation of new ISs. methods that can be used by SMEs. Small- and medium-
sized entities also often do not have access to project managers
In a recent study, it was found that SMEs are often in a position with the required technical skills required for software
where the standard accounting package implemented does implementation (Li et al. 2016; O’Sheedy 2012).
not meet their requirements. Accounting software packages
should only be purchased if the functionalities that they To obtain a workable project management framework for
provide meet the needs of the SME, but is still affordable SMEs, it is important to identify the characteristics of the
(Bishop 2017); otherwise, if a generic software accounting projects that need to be managed. According to Marcelino-
package is installed that does not provide the required Sádaba et al. (2014), projects of SMEs have some of the
outputs for that SME, it will result in software failure following common features and needs to be managed:
(Dwivedi et al. 2015). The misalignment between generic • The project and the project team are small.
software and strategic business imperatives is also commonly • It is mainly internally managed.
referred to as the IT gap (Kruger 2011). • The objectives are clearly identified.
• It is mostly related to day-to-day activities of the SME.
Some authors argue that project management principles
should include aspects of clear objectives, resource and PRINCE2, initially developed as a UK government
work plans and progress monitoring (Umble et al. 2003). standard, is a methodology that is designed to assist project
Other authors also mention that the greatest success of managers in the effective management of projects and
resource management (Kruger & Rudman 2013). PRINCE2 This should be clearly laid out by the project manager to
is an example of a framework that is more suitable for use prevent unnecessary costs and missed deadlines (Saad
by medium to large entities, rather than for smaller projects et al. 2013).
because of its bureaucratic nature (Marcelino-Sádaba et al. • Quality: It is essential that software packages
2014; Turner et al. 2009). Reasons that have been provided implemented by SMEs should have sufficient
for this include limited or unskilled staff usually employed functionalities to successfully drive the business system
by SMEs, limited resources available to SMEs and the and attain the business imperatives of the SME (Kruger
complexity of the framework (Marcelino-Sádaba et al. 2012). Therefore, the installed software program should
2014). However, both the PRINCE2 framework and authors, work for the purposes for which it was installed (Saad et
such as Hanney and Savin-Baden (2013), state that the al. 2013).
framework is fully scalable and, if done correctly, can be • Risks: All projects come with risk and it is essential that
used on smaller projects as well. This can, however, be a the risk an SME is willing to take in the implementation
very timely and costly exercise, as there are almost 40 of software packages is clearly understood and addressed
different activities that will need to be looked into and by the implementation plan (Saad et al. 2013).
adjusted to suit the implementation requirements of the • Benefits: Lastly, the software package installed by
SME (O’Sheedy 2012). Small- and medium-sized entities the SME must benefit the SME in all possible ways.
often follow a low-cost strategy (Lee, Shin & Park 2012) that The package should drive the business imperatives of
will result in them finding the scaling down of a framework the SME (Kruger 2012).
such as PRINCE2 too costly and not beneficial. Wynn et al.
(2009) indicate that some authors are of the view that the Projects in Controlled Environments is categorised as a
time spent on tailoring PRINCE2 will not add sufficient generic framework built on the above-mentioned areas of
value. However, SMEs might find an already scaled-down importance (Saad et al. 2013). The framework assists project
version that requires minor or no tailoring more appealing. managers in project management, but needs to be tailored to
Although some authors argue that the PRINCE2 suit individual projects (Viergever 2014). The framework was
methodology is not suitable for SMEs because of its developed over some years from insights into many projects
bureaucratic nature (Turner et al. 2009), others are of the (Kruger & Rudman 2013).
opinion that if scaled down correctly, PRINCE2 can be
valuable to SMEs in project management by using only the The PRINCE2 methodology is built on seven principles
processes that are applicable and required in the relevant and consists of seven themes and seven processes (Figure 1)
situation (Wynn et al. 2009). that are aimed at addressing the above-mentioned six areas
of project management (Siegelaub 2004). Details of the
The purpose of this study is to look into the tailoring of seven principles, themes and processes are attached as
PRINCE2 into a scaled-down version that can be used by
Appendix 1.
SMEs specifically during the implementation of new
accounting software. A tailored version of the model was
Figure 1 is an illustration of the PRINCE2 processes.
consequently developed. An overview of the PRINCE2
methodology, on which this tailoring was based, follows:
Tailoring potential of Projects in Controlled
Environments
An overview of the Projects in Controlled
Environments methodology In a study conducted by Wynn et al. (2009), certain processes
of PRINCE2 were tailored for a specific project on the
Saad et al. (2013) explain that there are normally six areas of
replacement of software of a small- and medium-sized
project management: costs, timescales, scope, quality, risks
financial service company, Allpay.net. It is important to note
and benefits:
that in their study, the PRINCE2 model was not tailored in
• Costs: Small- and medium-sized entities often find such a way that other companies will be able to use it, but
themselves in a competitive environment in which, to
survive, they need to reduce costs as far as possible (Umble
et al. 2003). The cost of the software implementation Pre- Iniaon Subsequent Final
project stage delivery delivery
project will therefore also play a role in software
implementation by SMEs. Direcng
SU
Direcng a project
• Timescales: It is important for all projects to be managed SB SB CP
within a specified timeline. The moment that the project Managing IP Controlling a Controlling a
exceeds the original timeline, costs, scope, quality and stage stage
project risk are directly affected (Saad et al. 2013). Delivering Managing product Managing product
• Scope: It is essential to define the scope of the software delivery delivery
implementation project accurately. The project manager
should firstly have a clear understanding of what should Source: Siegelaub, J.M., 2004, How PRINCE2 can complement PMBOK ® guide and your PMP ®,
APMG-International, viewed 30 October 2017, from http://ebooks.franciscomedina.net/
be included in the project, in other words packages, taller_pmbok_prince2/prince2-complement-pmbok-pmp.pdf
functionalities, customisation requirements and so forth. FIGURE 1: Projects in Controlled Environments process model.
that it was rather adjusted to fit the needs of Allpay.net • Make use of highlight, checkpoint and exception reports
and recommendations were merely provided. The biggest to address issues during the course of the project lifecycle.
challenge for Allpay.net was to integrate and maintain • Selectively use the activities included in the process of
different in-house-developed software packages. The project closing a project. Ensure that project closure approval by
team, consisting of only three staff members, adjusted some the project board and a final project closure report are
of the PRINCE2 processes in a way that addressed the scope included.
and scale of the proposed project. This entailed using only a
selection of the PRINCE2 proposed processes (Wynn et al. One of the PRINCE2 principles is that the methodology be
2009). Recommendations made from their conclusions tailored to suit the needs of the specific project. Tailoring for
included the following (Wynn et al. 2009): the purposes of PRINCE2 is defined as those measures taken
• Selectively use the main PRINCE2 processes to only during the tailoring of the framework that ensure a sufficient
include processes that address the required outcomes of level of governance, planning and control (Murray 2011:6).
the individual project.
• Combine certain activities from the starting up, initiating Table 1 illustrates the focus areas of an entity during the
and directing processes into one brief document. adoption and tailoring of PRINCE2. Embedding refers to the
adoption of PRINCE2 by the entity as a whole (Murray 2011:6).
Activities include the business case, brief, approach and
quality plan.
The above literature study shows that the tailoring of
• Minimise all other logs to only keep crucial logs, such as
PRINCE2 for SMEs is possible. Both Wynn et al. (2009) and
a risk log.
the book, Tailoring PRINCE2 (Office of Government
• Make use of Microsoft Project for purposes of planning
Commerce 2004), highlighted how different processes of
the project.
PRINCE2 can be tailored for specific projects, but an actual
• Where possible, only make use of one stage rather than
standard tailored version of PRINCE2 for the implementation
various stages. This enables a project team to exclude the
of accounting software was never developed by neither
managing stage boundaries process from the entire
authors, but rather recommendations made on how tailoring
project.
can be done for each project. As the tailoring process might be
• Only include the process of managing project delivery if
timely and costly for SMEs, the need arises for a standard
really necessary.
tailored version of PRINCE2 that can be used by SMEs, with
• Make use of highlight, checkpoint and exception reports
the possibility of further minor tailoring if needed.
to address issues during the course of the project
lifecycle.
In our study, the findings from both the book and Wynn et
• Selectively use the activities included in the process of
al. (2009) were used to develop a standard tailored version
closing a project. Ensure that project closure approval by
of the PRINCE2 model that can be followed by SMEs.
the project board and a final project closure report are Further to this, our new model also includes additional
included. steps to address the shortcomings and weaknesses of the
PRINCE2 framework identified by Kruger and Rudman
In the book, Tailoring PRINCE2 (Office of Government (2013). Their study specifically addressed issues regarding
Commerce 2004), it is also discussed how PRINCE2 can be the alignment of business processes with application
tailored to suit smaller projects where a limited number of software functionality that will be of great value for SMEs if
staff is involved. An example was provided of a project built into the model.
for a small company with limited staff. The book does not
provide a tailored version of PRINCE2, but rather
provides the reader with notes and recommendations on
Research methodology
how it can be tailored. Conclusions reached from the A non-empirical approach in the form of an extended
small project included the following (Office of Government literature review was followed in this study. Extended
Commerce 2004): literature reviews were conducted by inspecting peer-
• Selectively use the main PRINCE2 processes to only
TABLE 1: Areas of focus during both Projects in Controlled Environments
include processes that address the required outcomes of adoption and tailoring.
the individual project. Embedding (conducted by the Tailoring (conducted by the project
organisation to adopt PRINCE2) management team to adapt the method
• Combine certain activities from the starting up, initiating to the context of a specific project)
and directing processes into one brief document. Focus on
Activities include the business case, brief, approach and •• Process responsibilities •• Adapting the themes (through
•• Scaling rules or guidance (e.g. strategies and controls)
quality plan. scorecard) •• Incorporating specific terms or language
• Where possible, only make use of one stage rather than •• Standards (templates, definitions) •• Revising product descriptions for
•• Training and development management products
various stages. This enables a project team to exclude the •• Integration with business processes •• Revising role descriptions for PRINCE2
•• Tools project roles
managing stage boundaries process from the entire •• Process assurance •• Adjusting processes to match the above
project. Source: Murray, A., 2011, White paper on PRINCE2 in one thousand words, vol. 2, The
Stationery Office, viewed 30 October 2017, from http://www.best-management-practice.
• Only include the process of managing project delivery if com/gempdf/PRINCE2_in_One_Thousand_Words.pdf
really necessary. PRINCE2, Projects in Controlled Environments.
TABLE 2: Recommendations for small- and medium-sized entities considering approving the project and making high-level decisions on
using Projects in Controlled Environments.
Process Activity Recommendation
the project. The project board member should, however,
(key) be independent of the project manager in order to review
Starting up a project 1. Appoint the project board and the (A) work and make high-level decisions. Roles and
(SU) project manager
responsibilities of the board, manager and other team
2. Capture previous lessons learnt (B)
3. Design and appoint the project (A)
members should be clearly laid out. It is important to
management team have a team member with sufficient IT knowledge, either
4. Prepare the outline business case (C) an external supplier or internal employee with IT
5. Select the project approach and (C) knowledge, as part of the project team.
assemble the project brief
6. Plan the initiation stage (D) B These activities will also be important activities to
Directing a project 1. Authorise initiation (E) consider for small and medium projects.
(DP)
2. Authorise the project (E) C It is recommended that these activities be combined into
3. Authorise a stage or exception plan (E) one initiating stage as far as possible, rather than having
4. Give ad hoc direction (E) a separate starting up and initiating stage. It is also
5. Authorise project closure (I) recommended by Ferguson and Consulting (2011) to
Initiating a project 1. Prepare the risk management (C)
(IP) strategy combine these two processes for smaller projects. It is
2. Prepare the configuration (C) further recommended to assemble one project brief
management strategy document that outlines the business case, decide on the
3. Prepare the communication (C)
management strategy project approach, set out the frequency of communications
4. Set up the project controls (C) that will take place between the project manager and the
5. Create the project plan (C) project board, set controls for project review and risk
6. Refine the business case (C) identification, and document the required product
7. Assemble the project initiation (D) quality.
documentation
Controlling a stage 1. Authorise a work package (G)
D These activities fall away because of the initiating stage
(CS)
2. Review a work package status (G) and the starting up stage being combined into one
3. Receive completed work packages (G) initiating stage and the project plan being combined with
4. Review the stage status (G) the project initiation document in one project brief
5. Report highlights (G) document.
6. Capture and examine issues and (G) E Authorisation and decision-making are done throughout
risks
the project lifecycle by the project board member(s).
7. Escalate issues and risks (G)
8. Take corrective action (G)
F Based on the literature review reported on in the
Managing product 1. Accept a work package (G) ‘Tailoring potential of Projects in Controlled
delivery (MP) Environments’ section, it is recommended that smaller
2. Execute a work package (G)
3. Deliver a work package (G) (I) projects, as far as possible, only include one main stage.
Managing stage 1. Plan the next stage (F) This will enable all managing stage boundaries to be
boundary (MS)
2. Update the project plan (F) excluded by SMEs implementing small accounting
3. Update the business case (F) packages. This should, however, only be done if it is
4. Report stage end (F) (H)
possible and feasible for the specific project.
5. Produce an exception plan (F)
G Because of the recommendation of only having one main
Closing a project 1. Prepare planned closure (I)
(CP) stage, it is recommended that activities from the managing
2. Prepare premature closure (I)
3. Hand over products (I)
product delivery and controlling a stage processes be
4. Evaluate the project (I) combined into one controlling and delivering a project
5. Recommend project closure (I) stage. Ferguson and Consulting (2011) also recommend
Source: Office of Government Commerce, 2005, Managing successful projects with PRINCE2, this.
The Stationery Office, UK
H Include this activity in the completing of a project stage.
I Combine this activity with the completing of a project
different processes are combined, certain processes are stage.
simplified and unnecessary activities are removed.
Implementing additional recommendations
Table 2 was developed from the literature review findings in because of shortcomings and weaknesses
the ‘Related literature’ section and best management practices. identified within Projects in Controlled
It lists recommendations for SMEs considering using Environments by previous authors
PRINCE2 during the implementation of accounting software.
As a tailored PRINCE2 is recommended for project-
management purposes by SMEs, it is also important to
Recommendations include recommendations for shortcomings in the framework
Key Recommendation: that have already been identified by previous authors. The
A The project board could consist of one person, but should study conducted by Kruger and Rudman (2013) concluded in
have the highest level of authority and will ultimately be a list of recommendations to address shortcomings and
Communication
objectives of the project.
Communication structures should be in place between
Conclusion
team members, the project manager and the project For SMEs to successfully compete and prevent its
board member to ensure that issues identified during
the course of the project are immediately business system from failure, proper alignment of
communicated and acted upon through the correct
channels. business strategies with IT strategies is necessary during the
Effective tailoring of the It is important to note that the methodology should still software implementation process. Not following a structured
PRINCE2 methodology be tailored during the project planning stage to ensure
during the planning stage that it addresses the specific requirements of the entity, methodology to manage the software implementation
more specifically, that it is in line with the required process was identified as a reason for software failure
business imperatives that the entity strives towards. The
project brief and planning documentation should (Dwivedi et al. 2015).
specifically address and include these business
imperatives and the functionalities required to achieve it.
People skills Team members and project managers should have good This study highlighted the importance of making use of a
people skills in order for them to successfully work
together. Although SMEs might have limited staff, it is structured framework for project management and indicated
still important to use individuals with good people skills that PRINCE2, if scaled down, can be a valuable framework
to form part of the project team.
Source: Based on Kruger, W. & Rudman, R., 2013, ‘Strategic alignment of application software
for use by SMEs during the implementation of small
packages and business processes using PRINCE2’, The International Business & Economics accounting software packages.
Research Journal 12(10), 1239–1260, viewed 02 October 2015, from https://scholar.sun.
ac.za/handle/10019.1/85449
IT, information technology; PRINCE2, Projects in Controlled Environments; SMEs, small- and Projects in Controlled Environments as a project-management
medium-sized entities.
framework was researched for its suitability for SMEs to use
TABLE 4: Basis of Projects in Controlled Environments for small- and medium- during software implementation. In this study, case studies
sized entities. of small projects where some tailoring were done on PRINCE2
Principles Themes processes were reviewed and used to develop a shortened,
Planning Objectives Organisation Quality Risk Changes
of project management standard version of PRINCE2 that can be used by SMEs
Continued X X X X during software implementation projects. Recommendations
alignment for improvement of weaknesses and shortcomings in the
(objectives
and PRINCE2 framework were also obtained from relevant
deliverables)
literature, filtered and included in this shortened version of
Learn from X X
experience PRINCE2 for SMEs.
Defined X X
roles and
responsibilities From the literature review and development of a shortened
Authorisation X X X X version of PRINCE2, it was found that PRINCE2 as a
by board
member(s) framework is currently too bureaucratic for use by SMEs. It
Note: The new PRINCE2 for SMEs model are detailed in Figure 2. was further identified that the framework lacked sufficient
PRINCE2, Projects in Controlled Environments; SMEs, small- and medium-sized entities. activities to specifically address strategic alignment issues. It
was concluded that if PRINCE2 is tailored properly and
weaknesses in the PRINCE2 framework. It specifically adjusted with certain recommended improvements, it can be
addresses issues regarding the alignment of business a valuable framework for use by SMEs.
processes with application software functionality (Kruger &
Rudman 2013). These recommendations were investigated Other than examples of how some of the PRINCE2 processes
and are summarised in Table 3 and filtered for were tailored for specific projects, this study contributes to
recommendations that will also apply to SMEs for smaller the literature by providing SMEs with a general shortened
software implementation projects. version of PRINCE2 that also addresses shortcomings and
Decision to
implement Project
Direcng a project closed
new
soware
Acvies
Connued guidance:
Approval:
- Project board member(s) provide guidance throughout
- Authorisaon of project by project board the project controlling, managing and closing phase
member(s)
FIGURE 2: Projects in Controlled Environments for small- and medium-sized entities (accounting software implementation) – tailored process model.
weaknesses in the PRINCE2 model. This model can be used Falkner, E.M. & Hiebl, M.R.W., 2015, ‘Risk management in SMEs: A systematic review
of available evidence’, The Journal of Risk Finance 16(2), 122–144. https://doi.
by SMEs in the implementation of new accounting software. org/10.1108/JRF-06-2014-0079
This shortened version, as shown in Figure 2, will save SMEs Ferguson, C. & Consulting, N., 2011, White paper on PRINCE2 ® for small-scale
projects, vol. 2, The Stationery Office, viewed 30 October 2017, from https://shop.
time and cost as the tailoring of PRINCE2 is often not done axelos.com/gempdf/PRINCE2_Small_Scale_Projects_White_Paper.pdf
by SMEs because of the time and cost it entails. Further Gama, A.P.M. & Geraldes, H.S.A., 2012, ‘Credit risk assessment and the impact of the
New Basel Capital Accord on small and medium-sized enterprises: An empirical
empirical research can be conducted in which the model is analysis’, Management Research Review 35(8), 727–749. https://doi.org/
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Goosen, R. & Rudman, R., 2013, ‘An integrated framework to implement IT governance
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innovative technique of project management growing progressively across the https://doi.org/10.5367/000000009788146629
Managing product delivery • compiling and planning the next stage or execution
plan by comparing it to the actual progress of the
This process ensures that the planned product and
project
deliverables are completed and handed over. It includes the
• revising the original project plan and updating the
following (Kruger 2011:56; Office of Government Commerce
business case
2005:16):
• updating the risk logs and considering the viability of
• accepting the work being done and detailing what is continuation of the project
required to be delivered. The team manager negotiates • compiling an exception report for consideration and
the details of the work packages with the project manager approval by the project board.
• ensuring that the work is done as required
• ensuring that the work being conducted was conducted at
the desired quality and delivering it to the project manager.
Closing a project (CP)
This process defines an organised closure of the project. The
project manager compiles finalised information on the project
Managing stage boundaries for presentation to the board in order to obtain approval that
This process provides information to the project board on the project may close (Office of Government Commerce
whether the deliverables were completed as planned during 2005:16). Activities include the following (Kruger 2011:59–60;
the stages. It also provides the board with information on Office of Government Commerce 2005:17):
whether it is viable to continue with the project. This process
• ensuring that the aims and objectives as set out in the
is there to assist the project board in authorising the
project-initiation document have been met
completion of a stage and starting of the following stage • determining whether deliverables have been delivered
(Office of Government Commerce 2005:15). and accepted by the customer
• ensuring that arrangements were made for maintenance,
Activities within this process include the following (Kruger operation and training of the delivered product
2011:58; Office of Government Commerce 2005:15): • compiling recommendations for future projects
• assuring that all planned activities in the current stage • compiling an end project report and archiving all project
have been completed successfully files.