PRINCE2 – Foundation Exam Exam

What action should be taken once the Project Board has authorized initiation?

1. Establish project scope

2. Design a team structure

3. Establish who needs information, when, and in what format

4. Finalize project budget

The correct answer is: Establish who needs information, when, and in what format

Once the Project Board has authorized initiation, it is essential to establish who needs information, when, and in what format. This action is critical because effective communication is fundamental to the success of any project. It ensures that all stakeholders are kept informed and engaged throughout the project lifecycle, which helps in managing expectations and facilitating decision-making. Understanding the information needs of stakeholders at different stages of the project allows for a structured communication plan to be developed. This plan outlines how information is disseminated, ensuring that relevant parties receive timely updates tailored to their specific interests and requirements. By doing so, the project can progress smoothly as stakeholders remain aligned and informed, reducing the risk of misunderstandings or misalignments. Other actions like establishing project scope, designing a team structure, and finalizing the project budget are also important, but they follow after identifying the communication requirements. While these elements are crucial for project planning, the priority after authorization is to focus on establishing communication processes to support these later actions effectively.