Agile Foundation guidance, aligned with PRINCE2 and PRINCE2 Agile, explains that the project management team structure defines how the project will be managed and delivered, including clarity around roles, responsibilities, and ways of working. A key element that should be included within this structure is a description of how products are to be produced, making option D the correct answer.
The project management team structure is not just a list of roles; it provides context on how delivery will operate in practice. This includes how teams are organized, how responsibilities are allocated, and how products will move from concept to completion. Describing how products are to be produced ensures there is shared understanding of the delivery approach, whether it is Agile, iterative, hybrid, or otherwise. This clarity supports coordination, accountability, and effective governance throughout the project lifecycle.
Option A, procurement and contract needs, belongs more appropriately to commercial or procurement management considerations rather than the team structure itself. Option B, a full and firm foundation for initiation, describes the purpose of the initiation stage rather than the contents of the team structure. Option C, arrangements for co-location or remote teams, relates to communication and working practices, which may support delivery but do not define the management structure.
Agile Foundation documents emphasize transparency and alignment between governance and delivery. Including a description of how products are to be produced within the project management team structure helps bridge management expectations with Agile delivery practices. It ensures that all stakeholders understand how work will be organized, how decisions will be made, and how value will be delivered. This supports Agile principles such as collaboration, empowerment, and adaptability while maintaining clear project-level control and accountability.