When issues are identified in PRINCE2 projects, the next step in the issue management process involves conducting an impact analysis. This means assessing both the severity and priority of the issue so it can be responded to appropriately. Structured rating scales help make these assessments consistent and comparable across projects.
Severity Scale
Severity measures the impact of the issue on the project's ability to achieve its objectives. A 5-level scale works well:
| Level | Description |
|---|---|
| Severe | One or more critical project objectives will not be achieved |
| Significant | Stated objectives will fall below acceptable thresholds |
| Moderate | Objectives fall below goals but remain above minimum acceptable levels |
| Minor | Objectives fall below goals but well above minimum acceptable levels |
| Negligible | Little or no impact on achieving project objectives |
Priority Scale
Priority measures how urgently the issue needs to be addressed. A 5-level scale:
| Level | Meaning |
|---|---|
| Very High | Requires immediate escalation and response |
| High | Must be addressed in the current reporting period |
| Medium | Should be addressed in the near term |
| Low | Can be addressed when resources allow |
| Very Low | Monitor but no immediate action required |
Impact Analysis Considerations
The impact evaluation should encompass all six tolerance areas:
- Time — Does this issue impact the stage or project schedule?
- Cost — Does this issue impact the budget?
- Quality — Does this issue affect the quality of any products?
- Scope — Does this issue change what the project will deliver?
- Business Case — Does this issue affect the viability of the business case?
- Risk profile — Does this issue change the overall risk exposure?
The 5×5 Matrix
Combining severity and priority ratings into a 5×5 matrix — with colour-coded zones (green, amber, red) — gives an instant visual indicator of which issues require escalation to the Project Board. Issues in the red zone should be treated as potential exceptions.
See also: Risk Assessment Scales for the equivalent framework applied to risks.