prince2 project management methodology characteristics

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• What is the PRINCE2 project management ...

What is the PRINCE2 project management methodology?

PRINCE2 is a project management methodology that's extremely focused on organization and control. PRINCE stands for "PRojects IN Controlled Environments." Learn about how the seven key principles of PRINCE2 can help your team keep projects organized and achieve your goals.

Did you know there’s a project management methodology that’s practiced in over 150 countries? With over a million certified practitioners, PRINCE2 is one of the most well-known and widely recognized forms of project management.

What is PRINCE2?

The history of prince2.

This project management methodology was first established in 1989 by the Central Computer and Telecommunications Agency (CCTA) . It was originally based on a methodology used by the United Kingdom’s government, known as Project Resource Organization Management Planning Technique (PROMPT). The UK government used PROMPT primarily for information system projects. 

PRINCE2 started out as just PRINCE, and this first iteration focused on managing IT projects. During the 1990s, managers realized that PRINCE’s techniques could be applied to any type of project, not just IT. After a rewrite to remove any mention of IT-specific jargon, PRINCE2 was launched in 1996.

Benefits of PRINCE2 project management

There's a reason why the PRINCE2 methodology is one of the most popular forms of project management in the world. Here’s why so many teams choose PRINCE2 to run successful projects.

PRINCE2 is a highly recognized form of project management

There are millions of PRINCE2 practitioners all over the world. The PRINCE2 method is recognized by the Project Management Institute (PMI) as a compatible methodology with the Project Management Body of Knowledge (PMBOK®) and the Project Management Professional (PMP®) certification . 

There are several training courses and different PRINCE2 certifications you can take to learn about the PRINCE2 project management method. If you're specifically looking to become a project manager, learning the PRINCE2 process and receiving a certification can help your career long-term.

PRINCE2 is a good beginner methodology

If your team has never used any sort of project management methodology before, PRINCE2 is a good place to start. Because there’s a simple yet defined process, your team has clear steps to follow even if they’ve never implemented a project management process before.

PRINCE2 is also a great way to teach your team members. Its clear principles and phases can help guide your team through essential project management skills such as project planning, time management, and communication skills. These skills are not unique to PRINCE2—they’re universal across all project management methodologies. So if your team ever decides PRINCE2 isn’t right for them, your team members will still have learned useful skills they can apply to any project.

If your team is thinking about using a form of Agile, PRINCE2 Agile is a great place to start. PRINCE2 Agile builds upon the basics established in the standard PRINCE2 process, and applies them with the Agile methodology .

PRINCE2 is extremely flexible

While the original PRINCE technique was built with IT in mind, PRINCE2 was built to accommodate any kind of project in any industry. One of the foundational principles of PRINCE2 is to use it as a framework, and not hard set rules. It's intended for you to bend it to your project's needs.

The PRINCE2 methodology works extremely well with work management software . The process driven structure paired with software makes it easy for your team to create clear tasks with specific dates an owners. Team members, stakeholders, and the project board can quickly jump in and track project progress asynchronously . By using a collaborative workspace, your team will consistently have up-to-date information about your project status and any important updates.

PRINCE2 project roles

One of the major benefits of using the PRINCE2 methodology is clarity. Some project management methodologies have looser guidelines, but each team member using PRINCE2 has a clear and designated role. These roles have their own specific set of expectations and responsibilities. Here are some key roles you will see in a PRINCE2 project.

Project manager : The main individual responsible for project planning, executing the project, and moving the project along. 

Team manager: If your team is very large, there may be a team manager to assist the project manager. A team manager helps supervise the production of items and also manages the time and workload of each team member.

Customer: The customer is the person who receives the final project deliverable. This can be an external customer, contractor, or internal team. For example, your IT team may be working to create a better onboarding process. The end customers in this case are hiring managers and new hires.

Team members: These are the individuals who are responsible for creating the final deliverable. Because PRINCE2 is such a process-driven methodology, assigning specific roles for each team member is important. How you delegate tasks is up to the project manager or team manager.

Project board : A group of people who make high-level decisions for your project. Typically, the project board is made up of business executives, and in some cases, end customers.

6 key aspects of a PRINCE2 project

Every PRINCE2 project has these six characteristics, which the project manager tracks as the project progresses. Some of them link directly to key PRINCE2 principles (which we explain in the next section), while others are just important information for your team to know as they progress through the project. Here are six aspects that you'll find in every PRINCE2 project.

Project scope: This clearly outlines what goals, deadlines, and project deliverables your project is working towards.

Costs: This is how much money your project will cost. The goal is to calculate this as close as you can to prevent going over your project budget . 

Timescales: This is the amount of time your project will take to complete. PRINCE2 projects typically have a set deadline created by the project board. Timescales help team members by giving them an estimated timeline to complete each task. 

Risk: There’s inherent risk with every project because we can’t control everything. Part of PRINCE2 includes establishing a risk management process to proactively identify what risks your team may encounter and mitigate any issues.

Quality: In PRINCE2, it's necessary to create a quality register, or something that clearly defines the standards of production for all deliverables. This ensures that the final deliverable meets your team’s highest standards and satisfies customer expectations.

Benefits: PRINCE2 requires that every project has a clear business justification. This is similar to a project charter , but the requirements all depend on what your project board wants to see before approving the project.

The 7 phases of a PRINCE2 project

In addition to the seven principles of PRINCE2, there are also seven phases that guide your team from project initiation to project closure . 

Starting up a project: The project team submits a project plan using a project mandate, which is a rough outline of what the project entails. This provides a general idea of the project and clearly defines the business case . Once approved (often by the project board) the project team creates a more detailed project brief .

Directing: The project board reviews the project briefs and decides what’s required for the team to move forward. This could mean altering some aspects of the project brief to accommodate for resources or time.

Initiating a project: The project board chooses a project manager to lead and create an even more detailed project plan. This includes the baselines for time, cost, quality, scope, risk, and benefits. The project can officially begin once the project board fully approves the project plan the manager creates. 

Controlling: During this phase, the project manager breaks down parts of the project to make them more manageable. They then delegate these smaller portions to individual team members to work on and complete.

Managing product delivery: The project manager ensures the project is progressing smoothly and that deliverables meet the quality set by the quality register. The project board then reviews the deliverables and decides whether to approve the work, or request any changes or additional work for the project.

Managing stage boundaries: At the end of each stage, the project board holds a review to decide if the project should continue moving forward, or if the team should abandon the project. 

Closing : The project manager completes any final documentation, outcomes, and reporting before completely ending the lifecycle of this project.

PRINCE2 practitioner certifications

You don’t have to have a project management certification to use PRINCE2 on your team. That said, there are a few training courses and exam options that can help improve and demonstrate your proficiency with the methodology. 

PRINCE2 foundation exam: Measures foundation-level skills to demonstrate if you can act as an informed member of a PRINCE2 project management team. 

PRINCE2 practitioner exam: Measures whether you can apply PRINCE2 to running and managing a basic project. 

PRINCE2 Agile foundation exam: Measures whether you can act as an informed member of a project management team and understand how PRINCE2 works with Agile concepts like Scrum and Kanban. 

PRINCE2 Agile practitioner exam: Measures whether you can apply Agile methods to managing your own PRINCE2 projects. 

When choosing PRINCE2 training or a PRINCE2 foundation and practitioner exam, be sure to check that it’s offered by an accredited training organization. In addition, check that your professional certification training focuses on the most recent version of PRINCE2—for example, the PRINCE2 6th edition.

Organize your PRINCE2 project with work management software

If you're thinking about organizing your team's project with the PRINCE2 methodology, using work management software can help. With a work management tool like Asana , your team can easily establish clear roles, create templates to guide projects through each PRINCE2 stage, and delegate tasks to other team members.

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What Is PRINCE2? Principles, Aspects, Roles & Processes

Table of Contents

What is prince2, seven principles of prince2, six aspects of prince2.

• PRINCE2 Roles & Responsibilities

Seven PRINCE2 Processes

Prince2 certification, prince2 vs. pmp, prince2 and projectmanager.

Different methodologies like PRINCE2 work for different projects, industries, tools and teams. These project management methodologies can be approached rigidly, or can be mixed, where a hybrid project management methodology of two or more are used to respond to the unique aspects of a project environment.

Project managers who aren’t based in the United Kingdom might not be intimate with the PRINCE2 methodology of managing a project, which is the UK government standard. Although foreign to some outside of the United Kingdom, there’s still much to be gained from the PRINCE2 project management method, even if it isn’t adopted in its entirety.

We’ll go over the main components of the PRINCE2 project management methodology, which are:

• PRINCE2 Principles
• PRINCE2 Aspects
• PRINCE2 Roles and Responsibilities
• PRINCE2 Processes

But before we dive into that, let’s define what PRINCE2 is.

PRINCE2 is a project management methodology that is mostly used in the UK, Australia and European countries. “PRINCE2” stands for Projects IN Controlled Environments, because this method focuses on managing resources and risks by dividing projects into smaller stages, defining clear roles & responsibilities and using seven processes to manage the project life cycle.

By organizing the project into logical steps, PRINCE2 demands a project management framework that has an organized and controlled project plan before starting, one that maintains its organization through the project life cycle.

The control is achieved by seven PRINCE2 processes that compose a project, from start to finish. That involves planning and scheduling. ProjectManager is award-winning project management software with online Gantt charts that are a perfect fit for the PRINCE2 methodology. Our powerful Gantt charts break project phases into milestones and link all four types of task dependencies to manage your schedule. Once you have a plan in place, set the baseline to capture your progress. Get started today for free.

History of PRINCE2

Now that we have an idea of what PRINCE2 is, let’s take a quick look at its origins. First established in 1989 by the Central Computer and Telecommunications Agency (CCTA) , the PRINCE2 method was originally based on PROMPT, another acronym that stands for Project Resource Organization Management Planning Technique, which was created in 1975 and used by the United Kingdom government for its information system projects. PRINCE2 was finally published as a project management methodology in 1996, and surprisingly, it is in the public domain.

There are seven principles that are the basis for PRINCE2 methodology. All must be followed for the project management methodology to be considered PRINCE2. These seven principles are a framework for a PRINCE2 mindset and they are as follows.

1. Continued Business Justification

The most important document in PRINCE2 is the business case , which is reviewed and revised throughout the life cycle of the project. This is done to make sure the project remains viable. If not, the project ends.

2. Learn From Experience

There is a lesson log attached to every project that acts as a repository for lessons learned in previous projects to avoid repeating past mistakes. The lesson log is referred to throughout the project. You can get started with our free lessons learned template.

3. Roles and Responsibilities Are Defined

Project members can take on multiple roles or share a role. There are four levels that make up the structure of people in a project: corporate, project board, project manager and team .

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4. Manage by Stages

PRINCE2 is planned ahead and follows a stage-by-stage process. When transitioning between stages the business cast, risk and project plan are all updated.

5. Manage by Exception

There are what are called tolerances for each project objective. This creates limits and defines how authority is delegated. If the tolerance is exceeded the management team must decide if that tolerance is redefined.

6. Focus on Products

The quality requirements of deliverables are of paramount concern.

7. Tailor to Suit Project Environment

The size, complexity, importance, time, risk, etc., or the project environment , is used to tailor the project in the initiation phase and throughout each stage of the project.

The PRINCE2 methodology identifies six aspects or areas that need to be managed in every project. Project managers need to use KPIs to measure performance goals and project tolerances.

What’s the work needed to complete the project? The details of the project scope should be explained in the project plan.

How much does your project cost? The project costs are detailed in the project plan as well.

How long will it take to complete your project? Each project phase is explained in the project plan, as well as the project duration.

Related: Free Gantt Chart Template for Excel

What are your project risks ? You’ll need a risk management approach to determine the mitigation strategies that will be used.

What are the quality requirements of your clients or stakeholders? You’ll need to have quality control and assurance procedures in place to meet quality standards.

What are the expected benefits of your project? Every project needs a business case and a cost-benefit analysis to explain its purpose and financial or strategic benefits.

PRINCE2 Roles & Responsibilities

To create a controlled project environment, roles and responsibilities are clearly defined in the PRINCE2 project management methodology. Here are the main roles that make up a PRINCE2 project management team.

Project Manager

The project manager is the one who is responsible for managing the project planning, execution, controlling and closure phases.

Project Manager Key Responsibilities

• Assemble a project team and monitor its performance
• Create a project plan that includes a schedule and budget
• Communicate with the with the project board and customers

Team Manager

Depending on the size of your project, you might need a team manager to closely supervise team members and report to the project manager.

There’s also a customer, user or supplier involved in the project. This is the person or organization that is paying for the project and will be impacted somehow by its outcome.

Customer Key Responsibilities

• Understand important project management documents such as a project plan, project brief , risk register or business case
• Provide enough funds to cover the project’s resource requirements

Project Board

Finally, there’s a project board, which is made up of the customer and business executives, such as a person who represents the user side and another representing the suppliers or specialists involved in the project.

Project Board Key Responsibilities

• The project board members are in charge of the high-level decision-making process.
• Communicate with the project manager on a regular basis and approve or reject his initiatives

The PRINCE2 project management methodology uses seven processes to manage projects. As PRINCE2 is a controlled environment method, the role of the project manager, project board and customer are defined so everyone’s on the same page.

1. Start Up the Project

This is where it’s determined whether the project is viable. To do so, a project brief, business case and a detailed stage plan must be created.

You should also create a project initiation document , another important PRINCE2 document that summarizes the key aspects of your project. Also, it’s important to do due diligence before the project is executed to save time and money once the project has started.

2. Initiate the Project

During this process, you’ll need to define the project aspects that we mentioned above; scope, costs, timescales, risk, quality and benefits. A project initiation document template can help.

3. Direct the Project

This process is to help the project board be accountable to the project through their decision-making. They have the authority on initiating the project, deliver its product and close the project. They also offer direction and control during the project. Additionally, they work with corporate entities or program management and review post-project benefits.

Activities related to this process include authorizing the initiation, the project itself and the stages of the project. Another direction is offered as needed until project closure is authorized.

4. Control Stages

This is where the project manager assigns tasks, monitors that work deals with whatever issues arise and reports on its progress to the project board.

Activities in this process include authorizing a work package with the team, reviewing its status and progress, and checking on its quality when complete. One must also review and compare progress to the project plan, capture any issues and risks and act to resolve them.

5. Manage Product Delivery

This process manages the delivery of the project product, controlling the work between the project manager and the team.

Activities associated with this process include accepting the work package , executing the work package and delivering the work package to make sure it’s complete.

6. Manage Stage Boundary

There are two parts to this process: firstly, the project manager provides the project board with an overview of performance, updates the project plan and business case, and creates a plan for the next stage. Secondly, the information provided by the project manager will help the project board review the current stage, approve the next and review the updated plan.

Activities include planning the next stage and reporting on the stage end.

7. Close the Project

This process is about making sure the project achieved its goals and objectives by the deadline. Sometimes project managers prepare the planned closure and the premature closure, but that’s not required.

Mandatory activities include handing over the product, evaluating the project and recommending its closure to the project board to officially close it out.

PRINCE2 has a course of study that leads to a certification in the methodology. The course requires the user to take the training with an accredited training organization and then pass an exam. It can be done in person or online.

There are four levels of certification in the PRINCE2 project management methodology:

• PRINCE2 2017 Foundation
• PRINCE2 2017 Practitioner
• PRINCE2 Agile Foundation
• PRINCE2 Agile Practitioner

Prices for the certification course and exam range from $550 to around $1,000 USD, depending on which level and certified training organization you choose.

There are as many project management certification programs and it can be difficult to decide which ones you need as a professional project manager. Without a doubt, one of the most popular project management certifications it’s the project management professional (PMP) title awarded by the project management institute (PMI) .

So which project management certification it’s best for you? Basically, these certifications differ in that they offer two different project management frameworks. PMP requires proficiency in the PMBOK Guide to Project Management Book of Knowledge , published by the Project Management Institute (PMI), while PRINCE2 requires knowledge of all the principles, aspects and processes.

Therefore, research both project management methodologies and see which is the best fit for you. Some industries prefer one framework over the other. PRINCE2 is more used in the United Kingdom, Europe and Australia, while PMP is used more in the United States, Canada and the Middle East.

PRINCE2 is a project management methodology to manage projects and bring them in on time, within budget and with a quality deliverable. Whether you use PRINCE2 or a more agile framework to run your project, the goals are the same. It doesn’t matter how you do it, using ProjectManager helps you do it better.

Real-Time Updates for Better Tracking

Our project management software is cloud-based, which means that when statuses are updated that information is instantly reflected across the project management tool. Project managers can make data-driven decisions. There is a high-level view on the dashboard for tracking progress, and reporting features drill down into the data for a more granular look.

Multiple Project Views

What if your team isn’t working in PRINCE2? Our software acts like a bridge linking traditional project management methodologies to more agile frameworks. For example, our kanban board view visualizes workflow and allows teams to build backlogs and manage sprints, even as project managers control the overall project by using PRINCE2.

Control your project no matter how you manage it. ProjectManager has the flexibility to work with PRINCE2 or any method you prefer to run your project.

Whether you use PRINCE2 or another methodology to manage your project, you’ll need tools to control the work through all of its stages. ProjectManager is a cloud-based project management software that works with multiple project management methodologies. From its real-time dashboard to online Gantt charts, you hold the reins. See how it can help you by taking this free 30-day trial today!

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PRINCE2 Project Management Methodology

PRINCE2 focuses on dividing projects into manageable stages, each with its own set of processes and deliverables. These stages include starting up a project, initiating a project, directing a project, controlling a stage, managing product delivery, managing stage boundaries, and closing a project . This staged approach helps ensure that projects are well-planned, controlled, and monitored throughout their lifecycle.

Table of Content

What is PRINCE2?

The history of prince2.

Benefits of PRINCE2 Project Management

PRINCE2 Project Roles

6 Key Aspects of a PRINCE2 Project

The 7 phases of a prince2 project, prince2 practitioner certifications, conclusion: prince2 project management methodology, faqs: prince2 project management methodology.

PRINCE2, which stands for Projects IN Controlled Environments, is a structured project management methodology that provides a systematic approach to managing projects. It originated in the UK government sector in the late 1980s as a response to the need for a standardized project management framework to improve the success rate of government projects. Since then, it has evolved into a widely recognized and adopted methodology used across industries and sectors globally.

• PRINCE2 Roots: The origins of PRINCE2 can be traced back to the UK government’s imperative for consistent and standardized project management practices. Facing challenges in overseeing diverse projects efficiently, the government sought a structured approach to enhance project success rates and accountability.
• Initial Development- PROMPT: PROMPT (Project Resource Organization Management Planning Technique) marked the initial step towards structured project management within the UK government. It laid the foundation for systematic project planning and control, aiming to streamline project execution and resource allocation.
• Evolution: From PROMPT emerged PRINCE (Projects IN Controlled Environments) in 1989, signifying a significant evolution in project management methodologies. PRINCE introduced a more structured and controlled approach to project management, emphasizing defined processes and clear responsibilities.
• Official Establishment- PRINCE2: In 1996, PRINCE2 was formally established as the successor to PRINCE, consolidating years of refinement and feedback from project management practitioners. This official recognition solidified PRINCE2’s status as a leading project management methodology, both within the UK government and across industries worldwide.
• Purpose: PRINCE2 serves the purpose of providing a comprehensive and adaptable framework for managing projects of varying sizes and complexities. Its structured approach, coupled with flexibility for customization, equips project managers with the tools needed to navigate through project lifecycles effectively, ensuring timely delivery, budget control, and quality assurance.

• Consistency and Standards: PRINCE2’s global recognition stems from its ability to establish consistent standards in project management practices. Its widespread adoption across industries and sectors ensures that project managers trained in PRINCE2 possess a common understanding of project management principles and terminology, fostering collaboration and coherence in project teams.
• Career Advancement: For project managers, certification in PRINCE2 serves as a badge of proficiency and competence. Employers often prioritize candidates with PRINCE2 certification, recognizing it as evidence of a solid understanding of project management best practices.
• Structured Learning Pathway: Training courses and study materials are readily available, catering to individuals with varying levels of experience in project management. This accessibility enables beginners to embark on their journey of mastering PRINCE2 with confidence, supported by comprehensive guidance and support.
• Adoption Across Industries: From IT and construction to healthcare and finance, PRINCE2 has been successfully applied across diverse sectors, demonstrating its adaptability and relevance in addressing a wide range of project management challenges.
• Tailoring for Success: Project managers can adapt PRINCE2 principles and processes to accommodate unique project constraints, such as budgetary constraints, regulatory compliance, or stakeholder preferences. This tailoring ensures that PRINCE2 remains applicable and effective in addressing the distinct needs of each project, maximizing the chances of success.

In a PRINCE2 project, roles are clearly defined to ensure accountability and effective communication. Some key roles include:

• Project Manager : Leads project delivery, including planning, execution, and monitoring, while serving as the primary liaison with stakeholders.
• Team Manager: Oversees daily team activities, ensuring tasks are completed efficiently and to the required standard.
• Project Board: Provides strategic direction, approves major decisions, and resolves escalated issues to ensure project alignment with organizational objectives.
• Project Assurance: Ensures adherence to standards, methodologies, and quality criteria throughout the project lifecycle.
• Change Authority: Responsible for evaluating and approving changes to project scope, objectives, or requirements based on their impact and alignment with project goals.

Key Aspects of a PRINCE2 Project

1. Business Case

The business case serves as the foundation for the project, providing a comprehensive rationale for its initiation and investment. It outlines the project’s objectives, anticipated benefits, estimated costs, and associated risks. By establishing clear goals and expected outcomes, the business case guides decision-making and ensures alignment with organizational priorities.

2. Organization

Effective project governance relies on a well-defined organizational structure that delineates roles, responsibilities, and reporting lines. This clarity ensures accountability and facilitates communication within the project team. By assigning specific responsibilities to individuals or teams, the organization structure streamlines decision-making processes and promotes efficient project execution.

Detailed planning is essential for guiding project activities and managing resources effectively. Project plans encompass various aspects such as time, cost, quality, risk, and benefits. They provide a roadmap for project execution, outlining tasks, milestones, and dependencies. By anticipating potential challenges and defining mitigation strategies, plans enable project managers to proactively manage project constraints and uncertainties.

4. Controls

Project controls are mechanisms for monitoring and regulating the project’s progress against predefined objectives and performance criteria. This includes establishing regular checkpoints and reviews to assess project status, identify deviations from the plan, and take corrective actions as necessary. By implementing robust control mechanisms, project managers can maintain visibility into project activities and ensure alignment with project goals.

5. Management of Risk

Effective risk management involves identifying, assessing, and mitigating potential threats to project success. This proactive approach helps minimize the impact of risks on project outcomes by implementing strategies to avoid, transfer, or mitigate them. By systematically addressing risks throughout the project lifecycle, project managers can enhance resilience and increase the likelihood of achieving project objectives.

6. Quality Management

Quality management processes are essential for ensuring that project deliverables meet specified standards and satisfy customer requirements. This includes establishing quality criteria, conducting inspections and reviews, and implementing corrective actions to address any deviations from the expected quality levels. By prioritizing quality assurance and continuous improvement, project teams can enhance customer satisfaction and deliver value-added outcomes.

7 Phases of a PRINCE2 Project

A PRINCE2 project is typically divided into seven sequential phases:

• Starting Up a Project (SU): The initial phase where the project’s feasibility is assessed, and key stakeholders are identified.
• Initiating a Project (IP): Detailed planning takes place, including the creation of a comprehensive Project Initiation Document (PID).
• Directing a Project (DP): The Project Board provides ongoing direction and guidance, ensuring that the project remains on track.
• Controlling a Stage (CS) : Each stage of the project is managed and controlled, with regular checkpoints to assess progress and address any issues.
• Managing Product Delivery (MP) : The focus shifts to delivering the project’s products or outputs according to the agreed specifications.
• Managing a Stage Boundary (SB): Occurs at the end of each stage, where the Project Board reviews progress and decides whether to proceed to the next stage.
• Closing a Project (CP): The final phase involves formally closing the project, evaluating its success, and capturing lessons learned for future reference.

For those looking to enhance their project management credentials, PRINCE2 offers a range of certifications:

• PRINCE2 Foundation: An entry-level certification that provides a basic understanding of PRINCE2 principles and terminology.
• PRINCE2 Practitioner : Builds upon the Foundation level, focusing on the practical application of PRINCE2 principles in real-world scenarios.
• PRINCE2 Agile: Combines PRINCE2 with agile methodologies , catering to projects that require flexibility and adaptability.

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• What is Project Management?

In the dynamic world of project management, having a reliable methodology can mean the difference between success and failure. PRINCE2 offers a structured yet adaptable approach that empowers project managers to navigate even the most complex challenges with confidence. By understanding its principles, embracing its flexibility, and leveraging its proven practices, you can unlock the full potential of PRINCE2 and propel your projects towards greater success.

Is PRINCE2 suitable for all types of projects?

While PRINCE2 is versatile, it may not be the best fit for every project. Its structured approach is particularly well-suited to projects with defined objectives and deliverables.

How can I learn more about PRINCE2?

There are numerous training providers offering PRINCE2 certification courses, both online and in-person. Additionally, there are plenty of books, articles, and resources available to help you deepen your understanding of PRINCE2 principles and practices.

Can PRINCE2 be combined with other methodologies?

Absolutely! PRINCE2 is compatible with various project management methodologies, including agile, waterfall, and hybrid approaches. This flexibility allows organizations to tailor their project management approach to suit their unique requirements.

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A guide to PRINCE2: Principles, themes, and processes

In the world of product management, millions of projects fail every day. On the other hand, tons of other projects succeed. So, what sets a successful project apart from failed ones?

Successful projects require strategic planning and systematic execution. To accomplish these goals, project management methodologies have emerged that help streamline processes and maintain consistency. The two most used methodologies are the project management methodology (PMM) by PMI and PRojects In Controlled Environments (PRINCE2) by Axelos .

In this article, you will learn what PRINCE2 is, when and how to use it, and strategies for maximizing its effectiveness within your team.

What is PRINCE2?

PRINCE2 is a product-focused project management methodology. PRINCE2 built its own principles and processes on product-based planning. Instead of emphasizing managing a project, PRINCE2 concentrates on identifying, defining, and managing products.

In the eyes of PRINCE2, products can be any tangible deliverable, such as new zero-to-one products, features, enhancements, or even services. PRINCE2 also makes sure that these produced products generate tangible and intangible business outcomes that align with the company’s mission, vision, and objectives.

When to use PRINCE2

PRINCE2 takes a systemic approach to project management. It is not suitable for all types of projects. PRINCE2 works best for:

Defined requirement projects

Standard projects, projects with external stakeholders.

The PRINCE2 methodology emphasizes starting with clearly defined deliverables. Throughout the process, PRINCE2 helps the project team define the deliverables and the outcomes of each stage before the start of the project.

Projects for governments and major corporations need some degree of formality and clear governance structure. PRINCE2 offers projects with a shared language, process, and defined roles and responsibilities. These components can be beneficial to establish the project management ecosystem for such projects.

Whether it’s API integration or even an outsourcing-based project, Prince2 provides a clear process to deal with vendors in an effective manner. The process includes all aspects like communication methods, expectations management, and a collaboration structure.

PRINCE2 components

PRINCE2 has three major components:

For a project to be called a PRINCE2 project, it should utilize the seven principles specified by PRINCE2. These principles ensure alignment between the project and the business goals. These principles are:

Continued business justification

Learn from experience, defined roles and responsibilities, manage by stages, manage by exception, focus on products, tailor to suit the project environment.

This principle encourages the project team and board to revisit the business feasibility of the project. For example, if a company is building a SaaS platform for restaurants, it must reassess the market demand, the need, financial viability, and the competition in fixed and planned times throughout the project lifecycle to ensure that the project will still generate positive business results for the company.

Project teams should record all lessons learned from past organizational projects, reflect on the learning, and apply the lessons to improve the performance of the project. For example, If a company is building a B2B e-commerce solution, it should have a lessons learned log or registry to log all lessons learned throughout the project (think of it as the results of an agile retrospective). This way, if the company builds a similar project later on, they can go back and learn from all recorded lessons.

The project manager leading the project team should establish clear roles and responsibilities among the team members.

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Instead of managing projects as one major milestone, PRINCE2 suggests breaking the project down into manageable and agreed on stages. For example, a project can be broken down based on deliverables (e.g., build feature X before feature Y), or by activities (milestone X: Design the feature, milestone Y: Implement the feature).

The project board should delegate some decision-making authority to the project manager within a defined threshold. This can also apply to the project managers who can set tolerance for the decision-making process, granting authority to some of the team members to make daily decisions.

Project managers and boards should always start by defining the outcomes (products) rather than entirely focusing on the process. Focusing on tangible outcomes ensures harmony and alignment among the project team.

Have PMs study their environment well before applying PRINCE2. PRINCE2 should be tailored to fit the organizational and project needs. For example, a small marketing project might work well with PRINCE2, but not every single procedure can add value to the project team. Some processes will only add unnecessary waste.

PRINCE2 themes are the areas that must be addressed throughout the lifecycle of the project. In other words, a theme is a key part of the project that needs specific and dedicated consideration and planning. PRINCE2 themes provide project managers with a structured approach to overseeing and managing their projects. These themes are:

• Business case — Focus on establishing clear business goals and solving the right problems
• Change — Establish clear guidelines and procedures to manage the project’s change requests
• Organization — Build the right project team structure to execute flawlessly
• Plans — Come up with a complete project plan that contains elements like the project approach, required resources, timelines, and deliverables
• Progress — Procedures to monitor and control the project’s progress in terms of execution and in terms of generating the required outcome
• Quality — Define quality standards for organizational projects while delivering project deliverables that meet these standards
• Risk — Identify, assess, manage, and mitigate project risks. Collaborate with other stakeholders to come up with strategies to eliminate those risks

PRINCE2 defines a set of sequenced activities that are compatible with its seven principles to guide the project team throughout the project lifecycle . The exact steps inside each of the processes change according to the project and company nature. These processes are:

• Starting up a project
• Initiating a project
• Directing a project
• Managing a stage boundary
• Controlling a stage
• Managing product delivery
• Closing a project

How to master PRINCE2

Individuals interested in working in a PRINCE2 environment or leading projects using the PRINCE2 methodology often opt for one of two certificates: the PRINCE2 foundation certificate or the PRINCE2 practitioner certificate . The second is suited more for professionals who want to prove their credibility.

To become a PRINCE2 practitioner, you must pass an open-book proctored exam consisting of 68 questions with a mark of 55 percent or more. Before earning the certificate, you should submit proof of earning one of the other project management certificates or the PRINCE2 foundation certificate (the full list is available on the attached link).

Axelos doesn’t offer official training. However, it partners with multiple worldwide training providers to help professionals prepare for the exam. I would recommend the mplaza course package that comes with a 48-hours course, two practice projects, four sample exams, and the exam voucher to be redeemed at Axelos.

Final thoughts

PRINCE2 is a system-oriented and effective project management methodology that doubles down on the traditional success pillars of clear communication, continuous business justification, cross-functional collaboration, and systematic project monitoring and control. However, following PRINCE2 doesn’t guarantee your project will succeed. It’s only a way to minimize the risk of failure.

Implementing PRINCE2 is not a straightforward task. It requires a huge investment from your organization. To apply it successfully to projects, you must be committed to the process and undergo extensive training.

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What Is PRINCE2 Project Management Methodology?

April 8, 2019

by Grace Pinegar

“Someday my prince will come,” was a big phrase throughout my Disney-filled childhood.

And while I’m optimistic I could still have a Meghan Markle-like romance, I don’t foresee any princes in my future. So myself, along with many other project management professionals, will have to settle for the PRINCE2 method.

PRINCE2 is a popular project management methodology. It’s an acronym that stands for projects in controlled environments. Bit of a stretch, but we got there.

What is PRINCE2?

PRINCE2 is a project management methodology that is centered around structured processes and organization. Although it's most popular in the UK, the PRINCE2 method and its seven processes, principles and themes can be utilized for a project of any scope or objective. 

While PRINCE2 is commonly deployed by companies within the UK, it’s an excellent methodology for any business hoping to have a detailed and defined organization structure within their project management team.

Read on to learn more about this methodology and how it can improve your project management strategy.

What is PRINCE2 methodology

PRINCE2 is made up of seven themes, principles and processes that guide its users through the management of a project. One accolade of the PRINCE2 method is that it’s a reasonable solution for a project of any scope or genre. 

The image below has labeled the seven themes that make up the PRINCE2 process.

Let’s dive into the specifics of these seven principles first, followed by themes and processes. 

PRINCE2 principles

The following are the seven principles of the PRINCE2 method.

Continued business justification

In order for a project to either be approved or continue on, there needs to be a clear, professional justification for this project’s execution. Managers and stakeholders should constantly evaluate and understand a project’s value to the company at that particular time.

Learn from experience

Project management is all about recording information for our future selves, and the PRINCE2 method is no different. In this method, managers keep a “lessons log” that helps them understand their successes and/or failures for the purpose of learning from them.

Defined roles and responsibilities

Part of the PRINCE2 methodology is clearly labeling who does what, when, and how. This method does not leave room for ambiguity regarding responsibilities.

Manage by stages

Instead of trying to accomplish everything at once, the PRINCE2 methodology requires project managers to split the project up into smaller groupings of tasks.

Manage by exceptions

This principle essentially says “if it ain’t broke, don’t fix it.” Project managers are only to seek help from higher-ups if there’s a problem. If things are otherwise running smoothly, there’s no need to contact stakeholders.

Focus on products

Make sure everyone is on the same page in regards to the project’s goals and deliverables. Everyone should have their sights set on the same end result.

Tailor to suit the project environment

Make sure to customize the PRINCE2 strategy to cater to the particular project’s needs such as scope and cost.

PRINCE2 themes

The following are the seven themes of the PRINCE2 method. These themes are determined prior to a project’s start.

Business case

A business case helps justify a project and prove to stakeholders that the endeavor is worthwhile.

Organization

Again, this theme emphasizes the importance of having all the tasks within a project doled out ahead of time. Project managers should have a clear understanding of who is going to accomplish what tasks.

Define what standards you’re going to judge your work on, and stick to those standards.

A project plan defines the specifics. What’s your timeline, budget, constraints? How are you going to take your team from the starting line to the finish line?

Before beginning any project, it’s important to understand all that could possibly go wrong. Take this time to determine risks, as well as determine how you would hypothetically overcome them. Additionally, consider what your risk management plan will be.

Project managers have to constantly handle feedback regarding the project, as well as their strategies. This part of the PRINCE2 method encourages managers to be agile and open to improvements.

Project managers should always be aware of whether they are meeting their deadlines and hitting their project milestones as intended. Recording and assessing progress throughout a project will increase the chances of closing the project on time. 

PRINCE2 processes

Lastly, let’s discuss the processes associated with PRINCE2. This is how a project’s actual execution is structured.

1. Starting up a project

Also referred to as SU, the project start-up is the period of time in which managers create the project mandate. This is similar to a project charter , and outlines the details about how the project will be executed and why it’s important. 

Project charter template courtesy of Template Archive

After the mandate is created, a project brief can be drafted. The brief is then handed to those responsible for carrying the project out, who can then start their initial steps.

2. Initiating a project

Also referred to as IP, this is the stage in which a project manager will clarify how varying project elements will be managed. Those elements are: project schedule, budget, product quality, scope or reach, benefits, and risk.

3. Directing a project

Also known as DP, this is the stage that stakeholders or executives oversee. They are in charge of a project’s initiation, ensuring the team remains within its confines, providing counsel when necessary, and closing the project at the end.

4. Controlling a stage

Instead of doing things all at once, the PRINCE2 method breaks work down into work packages so steps can be completed in stages. The project manager is in charge of monitoring progress on work packages and providing support when needed.

Managers of individual teams are responsible for overseeing day-to-day progress, and providing their team with support when needed.

5. Managing product delivery

Also known as MP, this is the stage of accepting, executing, and delivering on a work package. The project managers and team managers communicate the progress of the aforementioned steps.

6. Managing stage boundaries

Also known as SB, this stage is where project managers reflect with the board on progress thus far to determine whether the project should continue.

The project manager also updates the lessons log in this stage in order to help them plan for the future, update any related documents, and report the stage’s completion.

7. Closing a project

Also known as CP, this is the final step in a project abiding by the PRINCE2 method. During this step, project managers complete the project, write up reviews based on lessons learned, and turn in the project’s final result to the client or whichever manager called for it. 

After this step, a project is considered completed and managers can decide how to disperse remaining resources.

Happily ever after

As you can see, there’s a lot that goes into the PRINCE2 method! So much so that certifications have cropped up for project managers to become further trained in this management style.

If the basics of this method have appealed to you, consider further pursuing a certification in PRINCE2 to really drive home the success of your upcoming projects.

Wondering if a project is even possible? Try a feasibility study and save yourself the trouble of finding out the hard way!  

Grace Pinegar is a lifelong storyteller with an extensive background in various forms such as acting, journalism, improv, research, and content marketing. She was raised in Texas, educated in Missouri, worked in Chicago, and is now a proud New Yorker. (she/her/hers)

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PRINCE2 Project Management Methodology Explained

PRINCE2 is a popular project management (PM) methodology that originates from the UK. 

Thanks to its generic and principle-based nature, PRINCE2 can be applied to projects of any size and complexity, regardless of industry or location. 

Instead of prescribing how everything is done, PRINCE2 focuses on describing what needs to be done, following the overall structure of:

• Principles, 
• Themes, and 

In this guide, we’ll go through the PRINCE2 structure in detail and compare the PRINCE2 exam to the widely popular PMP (Project Management Professional) exam.

You’ll also read about how the University of Western Australia Library improved its performance with PRINCE2, and find some interesting expert insights on the topic.

So, keep reading.

Table of Contents

What is PRINCE2 project management?

PRINCE2 is a project management methodology , and its name is the acronym for PR ojects IN C ontrolled E nvironment (Version 2).

The PRINCE2 method originates from a 1970s private sector framework called PROMPT. 

Back then, a British government agency licensed PROMPT for use in government IT projects. 

Not long after, the agency fully implemented the adjusted PROMPT II module and named it PRINCE.

In 1996, a more generic version came out. It was also applicable to both non-IT and small-size projects, and it was called PRINCE2.

Today, PRINCE2 and PRINCE2 Agile are registered trademarks of AXELOS.

As explained in one of the official PRINCE2 manuals, Managing Successful Projects with PRINCE2 (2017 Edition) , PRINCE2 is an integrated method of principles, themes, and processes that addresses the planning, delegation, monitoring, and control of all 6 aspects of project performance, including:

• Cost, 
• Quality, 
• Scope, 
• Benefits, and

The manual also highlights that in order to keep control over the project, there should be a project manager who plans out the entire project using PRINCE2, so as “to make the right information available at the right time for the right people to make the right decisions about the project.”

Benefits of PRINCE2 project management

As outlined in AXELOS’s white paper PRINCE2 in 1000 Words by Andy Murray, some of the PRINCE2 advantages are that it:

• Applies to any type of project,
• Easily integrates with industry-specific models, 
• Saves valuable senior management time with its manage by exception principle,
• Makes sure that the project remains viable throughout the project life cycle, and
• Clearly specifies roles and responsibilities in a project so everyone knows what’s expected of them.

Furthermore, AXELOS’s Effective Project Management whitepaper outlines that PRINCE2 benefits individuals by:

• Providing step-by-step guidance regarding team structure, project planning, and project stages, and 
• Providing an easy way to boost their resume.

In search of more PRINCE2 benefits examples, we consulted Pranav Radhakrishnan , Operations, Standards, and Strategy Director at a global pharmaceutical company, Novartis . 

As an expert with the Six Sigma Black Belt and Lean Six Sigma Master Black Belt, Pranav believes that PRINCE2 facilitates the selection of innovative ideas that are in line with organizational goals and available resources:

“PRINCE2 captures the essence for analyzing various innovative ideas and approving them based on organizational goals and available resources… What PRINCE2 embodies at its core is that it encourages new ideas to come forth and rewards the best idea with approval.”

Pranav also highlights the benefit of PRINCE2 work packages (i.e. the set of information relevant to the creation of one or more products):

“In the modern day world, where teams are decentralized due to hybrid and remote work, PRINCE2 offers guardrails where a comprehensive plan is broken down into smaller work packages.”

PRINCE2 roles and responsibilities

As we’ve already mentioned, with PRINCE2’s clear organizational structure, there’s no confusion about who’s doing what at any time during the project.

Now, let’s take a closer look at each of the PRINCE2 roles and responsibilities. 

Corporate, program management, or the customer appoints the executive and possibly the project manager. This body is responsible for:

• The provision of a project mandate (i.e. the trigger for the project),
• Governing the project, and 
• Realizing any benefits that the project might deliver.

The project board is responsible for the project’s success and serves as a communication channel between the project team and external stakeholders. The project board is made up of: 

• The executive — who is responsible for making ultimate decisions, and the development of a business case,
• Senior user(s) — who supports the executive by providing user resources, and
• Senior supplier(s) — who supports the executive by providing supplier resources.

Project assurance covers the primary stakeholder interests (business, user, and supplier). The role must be independent of the project manager.

Change authority is an optional role and is responsible for reviewing and approving or rejecting all change requests.

The project manager takes direction from the project board and the executive. They have the authority to run the project on a day-to-day basis and ensure that the project produces the desired results within the specified tolerances.

The team manager manages project team members and reports to the project manager.

Project support — sometimes referred to as the project management office (PMO) — serves as administrative support to the project team, e.g. in helping with project management software, guidance, and administrative services. Its formal implementation is optional, depending on the project size and environment. 

7 PRINCE2 principles

The PRINCE2 methodology is built on several universal principles that help PRINCE2 practitioners shape the project they’re managing. 

Here are the 7 PRINCE2 project management principles as listed in Managing Successful Projects with PRINCE2 :

• Continued business justification,
• Learn from experience,
• Defined roles and responsibilities,
• Manage by stages,
• Manage by exception,
• Focus on products, and
• Tailor to suit the project.

Let’s take a closer look at each of these principles.

Principle #1: Continued business justification

In PRINCE2, the first principle outlines there needs to be a justified reason for starting a project in the first place. 

Also, the justification in some form of a business case needs to be recorded and approved. That justification should be reviewed repeatedly throughout the project.

Principle #2: Learn from experience

According to Managing Successful Projects with PRINCE2 , learning should be a continuous process that happens in 3 phases:

• At the beginning of the project — by applying lessons from previous projects,
• During the project — by including lessons in relevant reports and reviews, and
• After the project closes — by passing on lessons for future projects.

Keep in mind that the lessons learned are the ones that drive change, otherwise, they remain merely the lessons identified.

Principle #3: Defined roles and responsibilities

A clear project management team structure is one of the prerequisites for project success. 

This implies that all people involved in the project have defined roles and responsibilities and that there’s an effective communication flow among them.

Further, all stakeholder interests need to have a representation within the project management team, which includes the 3 primary stakeholders:

• Business sponsors — those who make sure there’s a justified business need,
• Users — those who will use the project’s output, and
• Suppliers — those who provide the necessary project resources to produce the project’s product. 

Principle #4: Manage by stages

PRINCE2 projects are broken down into project sections called management stages. 

The number of stages depends on the project’s complexity, but all projects must have at least 2 stages, including:

• An initiation stage, and
• At least one further management stage.

Managing by stages allows better control over the project’s progress.

Principle #5: Manage by exception

To understand this principle, we’ll first need to clarify the term exception in PRINCE2.  

An exception is a situation that goes beyond the tolerance levels that the project manager and the project board have previously agreed upon, in terms of: 

• Time, 

So, if there’s no deviation from the previously agreed-upon tolerance levels, the project manager won’t need to notify the project board. 

In cases of exceptions, one management level must immediately notify the next management level. 

This practice helps establish clear management authorities and boundaries and prevents burdening senior management with lesser issues that would needlessly take up their time.

Principle #6: Focus on products

In PRINCE2, project outputs, or deliverables , are referred to as products , and the focus should be on the quality requirement of these products. 

The focus on product principle has the following purposes:

• Ensuring that the project delivers only what’s been agreed upon,
• Preventing scope creep , and
• Reducing the risks of user dissatisfaction.

Principle #7: Tailor to suit the project environment

Being a universal project management approach, PRINCE2 aims at tailoring to fit each project’s specific needs based on the following factors: 

• Project environment ,
• Size, 
• Complexity,
• Importance, 
• Team capability, and
• Risk. 

The tailoring principle allows PRINCE2 to be used in any project, regardless of its:

• Geography, or

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7 PRINCE2 themes

Themes in PRINCE2 represent the 7 aspects of project management that you should continually address throughout the project lifecycle.

All themes are interrelated, and each answers certain questions regarding the project:

Now, let’s analyze each theme in more detail.

Theme #1: Business case

As explained in Managing Successful Projects with PRINCE2 , a business case is an essential theme in a PRINCE2 project as it confirms whether a project is:

• Desirable, 
• Viable, and 

Developing the business case takes place at the beginning of the project and is documented in one of the following formats: 

• A document, 
• A spreadsheet,
• Presentations slides, or
• An entry in a project management tool.

A business case should answer the question of why you’re carrying out the project in the first place and justify the value of the money that’s being invested in the project.

Here are the basic components of a business case: 

• Executive summary,
• Reasons for undertaking the project,
• Business options,
• Expected benefits,
• Expected dis-benefits,
• Investment appraisal, and
• Major risks summary.

You should review and update the business case regularly throughout the project to ensure the investment remains worthwhile.

Theme #2: Organization

The organization theme aims to determine the project’s roles and responsibilities, as success often depends on effective communication . 

To meet project stakeholders ’ interests and ensure project success, a clear 4-level project management structure should be established: 

• Corporate, program management, or the customer — that is external to the project team, 
• Directing — the project board,
• Managing — the project manager, and
• Delivering — the team manager and team members.

Theme #3: Quality

The quality theme ensures that the project’s product:

• Meets business expectations, and 
• Enables desired benefits realization.

To fulfill PRINCE2 quality requirements, a project needs to:

• Define the quality management approach, i.e. how you’ll manage the quality of the project,
• Specify quality criteria,
• Use a quality register to keep track of all quality activities,
• Specify the customer’s quality expectations and acceptance criteria, and 
• Use lessons as a valuable source of information for analysis.

Theme #4: Plans

The plan theme serves to control the project and follow its progress.

In PRINCE2, there are 4 types of plans:

• Project plan — with key information on timescales, project milestones, cost, and resources, 
• Stage plan — with management phases that make up the project lifecycle,
• Team plan — which is an optional plan used as the basis for team management control, and
• Exception plan — which replaces an existing project, or a stage plan.

Theme #5: Risk

The risk theme aims to identify and control any uncertainties that may occur throughout a project.

In PRINCE2, there are 2 types of project risks : 

• Threats — uncertain events that could have negative impacts, and
• Opportunities — uncertain events that could have positive impacts on project objectives.

To fulfill PRINCE2 risk management requirements, a project needs to:

• Define a risk management approach,
• Maintain some form of risk register,
• Have its risks identified and managed throughout the entire lifecycle, and

Theme #6: Change

Change deals with all potential and approved changes to the project baselines . In PRINCE2, all changes are called issues you need to:

• Identify, 
• Assess, and 

To achieve this, you’ll need to have:

• Issue register, and
• Change control approach.

Theme #7: Progress

The progress theme aims to determine mechanisms for tracking progress against performance targets, including: 

Here are some techniques for progress evaluation, as listed in Managing Successful Projects with PRINCE2 :

• Milestone chart — a visual representation of your milestones,
• S-curve — a graph showing cumulative project-related data,
• Earned value management — a project performance measuring technique,
• Burn charts — graphical representations of a project’s progress, and
• Kanban board — a signboard (physical or virtual) for tracking project progress.

Here’s an example of how you can track progress with the Kanban view, one of the Plaky project management tool features :

7 PRINCE2 processes

As the Managing Successful Projects with PRINCE2 guidebook defines them, processes are structured sets of activities designed to accomplish a specific objective.

In PRINCE2, there are 7 processes, including:

• Starting up a project,
• Directing a project,
• Initiating a project,
• Controlling a stage,
• Managing product delivery,
• Managing a stage boundary, and
• Closing a project.

Let’s analyze these processes in more detail.

Process #1: Starting up a project

According to Managing Successful Projects with PRINCE2 , before making the final decision on whether the project is viable and worthwhile, there are certain activities you need to consider: 

• Appoint the executive and the project manager,
• Capture previous lessons,
• Design and appoint the project management team,
• Prepare the outline business case,
• Select the project approach and assemble the project brief , and
• Plan the initiation stage.

Process #2: Directing a project 

Directing a project process empowers the project board with the authority to make key decisions and control the project in general. On the other hand, day-to-day management of project activities is left to the project manager.

Within this process, the project board:

• Authorizes initiation,
• Authorizes the project,
• Authorizes a stage or exception plan,
• Gives ad hoc direction, and
• Authorizes project closure.

Process #3: Initiating a project

Establishing solid foundations for your project prevents spending considerable financial resources on a project that ends up being unsuccessful.

To fully understand the project, project managers should answer several questions such as:

• What the reasons are for doing this project,
• What the expected benefits are,
• What the risks are,
• How, when, and at what cost they will deliver the project,
• Who makes key decisions about the project,
• How they will control and monitor the project, and
• Who needs to be informed on all project information.

During this process, a project manager conducts several activities, such as to:

• Agree on the tailoring requirements,
• Prepare the risk management approach, 
• Prepare the change control approach,
• Prepare the quality management approach,
• Prepare the communication management approach,
• Set up the project controls ,
• Create the project plan ,
• Refine the business case, and
• Assemble the project initiation documentation. 

Process #4: Controlling a stage

As the name already suggests, the purpose of controlling a stage process is to ensure that the work to be done (also called work packages) is assigned and kept under control.

To be more precise, project managers conduct the following activities: 

• Authorizing and reviewing work packages,
• Monitoring and reporting the management stage status and highlights, and
• Assessing and managing issues and risks.

After all, the day-to-day control of the work being done is key to a successful project.

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Process #5: Managing product delivery

While controlling a stage process views the project from the project manager’s perspective, managing the product delivery process views it from the team manager’s perspective. 

Team managers conduct the following activities within the managing product delivery process:

• Accept a work package — by clarifying what is to be delivered,
• Execute a work package — by following authorized requirements, and
• Deliver a work package — by notifying the project manager of its completion.

Process #6: Managing a stage boundary

At the end of each management stage, project managers conduct the managing a stage boundary process activities, including:

• Planning the next management stage,
• Updating the project plan,
• Updating the business case,
• Reporting management stage end, and
• Producing an exception plan.

The purpose of this process is to provide the project board with enough information to:

• Review the success of the current management stage,
• Approve the next stage plan,
• Review the updated project plan, and 
• Confirm if there’s a continued business justification and risk acceptability.

Process #7: Closing a project

During this process, project managers do the following activities:

• Prepare planned closure,
• Prepare premature closure if requested so,
• Hand over products,
• Evaluate the project, and
• Recommend project closure.

A clear end to a project implies that you’ve met the original goals and you can transfer the ownership of products to the customer.

To track all activities throughout a PRINCE2 project, you can use PRINCE2 project management software such as Plaky :

PRINCE2 certifications

At the moment, AXELOS offers PRINCE2 and PRINCE2 Agile certifications at 2 levels — Foundation and Practitioner:

• PRINCE2 Foundation,
• PRINCE2 Practitioner,
• PRINCE2 Agile Foundation, and
• PRINCE2 Agile Practitioner.

Foundation is suitable for beginners, while Practitioner is intended for advanced project practitioners.

If you decide to get PRINCE2-certified, you can choose the training style that suits you, as it comes in 3 formats:

• Self-studying, without attending an accredited training course,
• Online training, or
• Classroom training.

In case you opt for a training course, you should look for one of AXELOS’s Accredited Training Organizations in your country. Course prices will vary depending on the organization and certification type.

Starting from 2023, you’ll be able to renew PRINCE2 certifications after 3 years by:

• Re-taking your original exam,
• Taking further courses and certifications, or
• Through collecting and logging CPD (Continuous Professional Development) points.

PRINCE2 Foundation

PRINCE2 Foundation certification confirms that you possess theoretical knowledge on how to plan, manage, and deliver projects. Also, it confirms that you can work in a project management team in a PRINCE2 environment.

PRINCE2 Foundation is suitable for those who already work on PRINCE2 projects. But, it’s also great for those at the onset of their project management careers, as PRINCE2 Foundation doesn’t require previous experience in project management.

As for the exam format, the PRINCE2 Foundation exam is a 60-minute exam with 60 multiple-choice questions.

PRINCE2 Practitioner

The PRINCE2 Practitioner qualification is intended for anyone who manages projects on a day-to-day basis. It confirms that you can apply PRINCE2 and tailor it to suit various project environments.

As outlined in AXELOS’s PRINCE2 Prerequisites guide , to be eligible to take the PRINCE2 Practitioner exam, you need one of the following project management certifications :

• PRINCE2 (Foundation),
• Project Management Qualification (PMQ),
• Project Professional Qualification (PPQ),
• Project Management Professional (PMP),
• Certified Associate in Project Management (CAPM),
• IPMA Level A, B, C, or D. 

The PRINCE2 Practitioner is a 150-minute long exam. As it’s an open-book exam, candidates are allowed to use the official printed hard copy of the Managing Successful Projects with PRINCE2® 2017 Edition during the exam.

PRINCE2 Agile Foundation

The PRINCE2 Agile Foundation certificate is intended for project management professionals working on agile projects. It helps them tailor PRINCE2 to suit agile project management concepts, such as:

• Scrum , 
• Kanban , or 

PRINCE2 Agile Foundation has no prerequisites, so you can attend the course and exam even if you have no pre-existing knowledge of PRINCE2. 

The exam is a 1-hour-long multiple-choice paper with 50 questions.

PRINCE2 Agile Practitioner

With PRINCE2 Practitioner, you’ll apply the knowledge acquired at the Agile Foundation level to the workplace, using real-world management examples.

However, to take the PRINCE2 Agile Practitioner examination, you need one of the following certifications:

• PRINCE2 Agile Foundation, 
• Any PRINCE2 certification.
• Project Management Professional (PMP), 
• Certified Associate in Project Management (CAPM), or
• IMPA Levels A, B, C, or D.

The exam lasts for 2.5 hours, and it’s open book, which means candidates are allowed to use the official printed hard copy of PRINCE2 Agile .

PMP vs. PRINCE2 — which is better?

While the PRINCE2 certification is a registered mark of AXELOS, the PMP certification is PMI’s trademark. 

PMBOK Guide is a fundamental resource for the PMP certification, while Managing Successful Projects with PRINCE2 and PRINCE2 Agile are original guidance books for PRINCE2.

According to the latest project management statistics , most project managers have the PRINCE2 certification, possibly due to the PRINCE2 test having a national average pass rate of 97% in the UK. 

PMI, on the other hand, hasn’t published any official exam pass rates or passing scores since 2005, when the exam pass rate was 61%.

Allegedly, almost 2 million people have earned their PRINCE2 certifications to this day. PMI, on the other hand, reports there are more than 1,200,000 PMP certification holders worldwide.

PMP is objectively more difficult to get, as, unlike PRINCE2, it requires you to already have:

• A 4-year degree along with 3 years of experience and 35 hours of PM training, or 
• A secondary education diploma along with 5 years of experience and 35 hours of PM education.

While both certifications are well-respected in the project management community, PRINCE2 and PMP aren’t equivalent. 

PMP is harder to acquire, and can’t be owned without having years of documented experience in project management.

Here’s the summary of PMP and PRINCE2 differences:

Expert opinion on which is better – PMP or PRINCE2?

We’ve asked our contributor, Pranav, to share his opinion and tell us which is better, PMP or PRINCE2. 

Pranav believes that the answer depends on the specific industry you’re in.

“A PMP or PRINCE2 certification should be chosen depending upon the individual’s industry to create value.”

Pranav elaborates through an example that PMP, in some cases, lacks agility:

“Let’s talk about PMP first, PMP has been widely accepted for some time now as the gold standard in project management. A manager with exposure to both Lean Six Sigma and PMP will quickly recognize that the PMP structure works well for capital-intensive commercial construction projects. When applied to a different facet of industries in services and operations, one might feel the methodology lacks agility.” 

On the other hand, Pranav believes that PRINCE2 embodies the necessary agility:

“PRINCE2 certifications, which are now well recognized and growing quickly in acceptance, capture not just project management principles but also embody agility at the heart of it.”

Here’s Pranav’s explanation of how PRINCE2 is beneficial in specific industries, such as in the example of large pharmaceutical companies:  

“Large pharmaceutical companies, which represent the top 5 in global revenue with many manufacturing plants, have been rolling out standardization programs to identify, track, resolve, and report issues locally and be monitored globally. This requires a unique global project management office to manage the rollout of such programs.

These programs are staggered across many years and across many geographies to reach many factories which manufacture many types of medicines. PRINCE2 is extremely well suited to project manage the rollout of such programs because of its work package and stage gate philosophies which enables it to deliver a unique set of outcomes for every factory with agility.”

PRINCE2 example — The University of Western Australia Library case study

As outlined in a case study regarding project management and cultural change , inadequate management of the majority of the Library’s projects resulted in poor project performance back in 2005. 

It was mainly due to factors, such as: 

• Poorly defined project scope , 
• Lack of clear direction,
• Running out of resources while the implementation was due,
• Unplanned and ad hoc transfer of projects to the operational stage,
• Poor project reporting, and
• Lack of clarity about projects’ status.

To fix poor results, the management implemented the PRINCE2 project methodology and delivered training sessions to the Library staff. 

Soon, the new PRINCE2 method implementation transformed the organization from the core and brought many positive outcomes, such as:

• Better project planning and implementation,
• Better resource allocation ,
• A better understanding of project roles and responsibilities, 
• Improved cooperation and cross-team collaboration, and
• Improved project reporting.

Many cultural changes came along with the PRINCE2 implementation, including the spread of awareness about:

• Breaking down the silos,
• Building trust, 
• Encouraging flexibility, and
• Developing leadership skills.

As we can see, PRINCE2 can be effectively applied in various industries and projects. This flexibility and applicability make PRINCE2 such a popular method in all corners of the world.

Create a bulletproof workflow and take control of your projects, with Plaky.

Conclusion: All project managers should get acquainted with PRINCE2 basics

PRINCE2’s universality makes it a universal PM method for all project managers around the world. 

So, regardless of where you are or the industry you’re in — ranging from the public sector and IT, all the way to the pharmaceutical industry — PRINCE2 speaks the language common to all projects. 

Moreover, if you want to get PRINCE2 certified, it doesn’t matter if you’re an aspiring or an experienced project manager, as PRINCE2 offers 2 levels of certification suitable for both.

In the end, whether you opt for PRINCE2 or not, getting acquainted with its core principles and ideas can do nothing but good, as you’ll probably find at least something worth applying in your future projects.

📖 You think PRINCE2 is the methodology for you, but would still like to expand your knowledge on project management? Visit our Project Management Glossary of Terms and dive into basic and advanced project management terminology.

• Allan Thompson. (n.d.). Effective Project Management: Why the PRINCE2 method is more relevant than ever . Retrieved April 24, 2023, from https://eu-assets.contentstack.com/v3/assets/blt637b065823946b12/blt944d5e1859716f4c/616d9911d9af1b266598a4cb/PRINCE2_whitepaper_Effective_Project_Management.pdf
• Andy Murray. (n.d.). PRINCE2 in one thousand words . Retrieved April 24, 2023, from https://eu-assets.contentstack.com/v3/assets/blt637b065823946b12/bltcd8b93b81c401a62/623481520f42676ee083d1f5/PRINCE2_in_1000_words.pdf
• AXELOS. (2017). Managing Successful Projects with PRINCE2 2017 Edition . The Stationery Office Ltd.
• AXELOS.com. PRINCE2 Prerequisites . AXELOS Limited. Retrieved April 24, 2023, from https://eu-assets.contentstack.com/v3/assets/blt637b065823946b12/blt305391567d3df119/PRINCE-pre-recognition.pdf
• ILX Marketing Team. (2017, February 6). The history of PRINCE2. PRINCE2 USA. Retrieved April 24, 2023, from https://www.prince2.com/eur/blog/the-history-of-prince2
• Kiel, Ralph. (2007). “Project Management and Cultural Change: a case study at the University of Western Australia Library. April 2007. Retrieved April 24, 2023, from https://www.library.uwa.edu.au/__data/assets/pdf_file/0004/524785/Kiel-137.pdf
• PRINCE2 Certification | Qualifications and Exams . AXELOS. (n.d.). Retrieved April 24, 2023, from https://www.axelos.com/certifications/propath/prince2-project-management
• PRINCE2 Foundation and practitioner training courses: Instructor-led classroom: UK: United Kingdom . Knowledge Train. (2023, April 20). Retrieved April 24, 2023, from https://www.knowledgetrain.co.uk/project-management/prince2/prince2-course
• What’s a good prince2 pass mark? Knowledge Train. Retrieved April 25, 2023, from https://www.knowledgetrain.co.uk/project-management/prince2/prince2-exams/what-is-a-good-prince2-pass-mark

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PRINCE2: The Reigning Project Management Methodology

May 6, 2022 - 10 min read

Projects in Controlled Environments (more commonly known as PRINCE2) is the most widely practiced project management methodology worldwide, used by teams in over 150 countries.

But what is PRINCE2 project management and why is it so popular? And more importantly, is it the right approach for your projects ? These are tricky questions to answer without sifting through endless articles and vague definitions, so we've saved you some Googling by collecting the essentials of PRINCE2 project management in one convenient place.

The fundamentals of PRINCE2

PRINCE2 project management is a process-based approach that focuses on organization and control over the entire project, from start to finish. That means projects are thoroughly planned before kickoff, each stage of the process is clearly structured, and any loose ends are neatly tied up after the project concludes.

You may be wondering: What's with the 2? The PRINCE methodology was initially developed in the late 1980s as a way for the U.K. government to manage IT projects . In 1996, the approach was reviewed and updated by a team of project management specialists and a review panel of 150 public and private organizations to make it more widely applicable to a variety of industries. Thus, the new and improved PRINCE2 was born.

For a summary of how PRINCE2 works, check out our video:

The seven principles of PRINCE2

The PRINCE2 method is built on the following seven principles:

1. Projects must have business justification.

Each client project must have a clear need , a defined customer, realistic benefits, and a detailed cost assessment.

2. Teams should learn from every stage.

Lessons are sought and recorded at every step in the PRINCE2 process and then used to improve future work .

3. Roles and responsibilities are clearly defined.

Everyone should know exactly what they’re responsible for — and what their teammates are responsible for.

4. Work is planned in stages.

PRINCE2 projects are broken up into individual work phases , with periodic reviews to record lessons learned and confirm the project is still on track to meet requirements.

5. Project boards "manage by exception."

Since board members are typically senior executives who don’t have time to manage a project's daily activities, they establish baseline requirements for things like time, cost, risk, and scope, and then delegate daily oversight to the project manager. The project manager has the authority to get the project back on track if it's running late or going over budget . But if issues arise that will impact the established requirements, that’s an “exception,” and the project board decides the best way to proceed.

6. Teams keep a constant focus on quality.

Deliverables are continually checked against requirements through the use of a quality register .

7. The approach is tailored for each project.

The PRINCE2 method itself should be adjusted to suit the needs of each client project, changing the amount of oversight and planning to fit the size of the project, number of people involved, work package delegation, etc.

The seven roles in PRINCE2

There are three principal roles for PRINCE2: the project board , the project manager , and the project team . But there are many supplemental roles that help ensure requirements and standards are met and that work runs smoothly.

• The customer is the person paying for the project to be completed.
• The user will either use the project deliverables or will be impacted by the project's outcome. (For some projects, the customer and user may be the same person.)
• The supplier is a subject matter expert who provides the knowledge needed to complete the project by designing or building the end result.
• The project manager is responsible for organizing, planning, and overseeing work on the project. They select and manage the people who complete project tasks, and they’re responsible for making sure work is done correctly and on time.
• The project team and team manager actually roll up their sleeves and get project tasks done. Team managers oversee the detailed aspects of daily work and report directly to the project manager.
• The administrator sets up meetings, keeps everyone updated, tracks documentation, etc. On small projects, project managers will often take over this responsibility, but if there are multiple projects running at once or the project is large/complex, a project support office is typically set up to manage these duties.

One of the three main roles, the project board typically includes multiple people: the customer (typically a senior executive), the end-user (or a representative), and the supplier . It checks for project assurance from three unique perspectives:

• The customer ensures the project is still viable financially, typically through cost-benefit analysis .
• The user ensures user needs are being met.
• The supplier checks whether the project is working towards a realistic, practical solution.

On some projects, PRINCE2 assurance is done by an unbiased, third-party team.

The seven phase process of PRINCE2

The PRINCE2 process is broken up into seven (surprise!) phases:

1. Starting up a project

• Someone submits a request for a new project , called the project mandate . The project mandate is very brief, covering only why the project is necessary and what it will ideally accomplish.
• Someone assesses every project mandate to make sure the company is capable of taking on the project.
• If approved, the person who initiated the project then submits a more detailed project brief, which covers the actions, resources, manpower, etc. needed to execute the project.

2. Directing a project

• The project board reviews and evaluates project briefs based on business justification and viability for another round of approval/disapproval.
• The project board decides what it needs to do in order to organize and execute each approved project, and what/how they’re going to delegate to the project manager.

3. Initiating a project

• The project manager creates the Project Initiation Documentation , including a comprehensive project plan and baselines for 6 performance targets: time, cost, quality, scope , risk , and benefits.
• Initiation documents are sent to the project board for approval. Once the board is confident in the project plan, they give their approval once again and work begins .

4. Controlling a stage

• The project manager breaks down the project into smaller “ work packages " and passes them off to team managers and teams to complete.
• The project manager oversees the progress of work packages during each stage and steps in to help overcome roadblocks or correct any mistakes, if necessary.
• Team managers coordinate detailed daily work and act as the link between the project manager and individual team members, helping to make sure everything goes according to plan .

5. Managing product delivery

• The project manager checks progress against the project brief and makes sure deliverables meet PRINCE2 quality expectations.
• The project board evaluates completed work packages and either approves them or requests revisions/changes.

6. Managing stage boundaries

• The project manager and project board review each stage to make sure the project is progressing according to plan and meeting project assurance requirements .
• At each review, the project board decides whether to continue with the next stage or to abandon the project completely.
• Project managers hold a retrospective with the project team to record any lessons learned and improve the next stage.

7. Closing the project

• When the project is complete, the project manager wraps up any loose threads, including PRINCE2 documentation, outcomes, and reporting.

Types of PRINCE2 documentation

Throughout the seven stages of PRINCE2, records are kept so the project stays organized and on track. These records are also used to report to the project board, check deliverables against quality requirements, and improve future work processes.

• Business case: Detailed description of why the project is needed and its expected benefits to users and the business.
• Risk register: Lists the probability and potential impacts of risks and opportunities.
• Quality register: A running log of quality checks that ensure deliverables meet expectations.
• Issues register: A list of problems and concerns from project team members.
• Lessons log: Notes on lessons learned to apply to the next work stage and/or future projects.
• Daily log: A daily diary written by the project manager that reports activity and progress.

How Wrike can help manage your PRINCE2 project

Because PRINCE2 is a highly customizable and adaptable project management methodology , you can mold it to suit any project — you just need an adaptable project management software to help. Wrike's features include customizable Kanban boards, Gantt charts, automated request forms, and over 400 app integrations, to help your team stick to the seven PRINCE2 principles and plan a perfect project every time. Try it now with a free, two-week trial .

PRINCE2 in project management

Now you know the essentials of PRINCE2! So how does it compare to other popular project management methodologies ? What are the benefits of this approach and the potential pitfalls? Check out our PRINCE2 FAQ for more.

Interested in learning more about project management? Check out our Project Management Guide , your ultimate introduction to the fundamentals of project management, curated best practices, a detailed outline of the project management framework , and resources for beginners, all in one place.

Andrew Slate

Andrew Slate is a Content Marketing Associate at Wrike. He graduated from the University of California, Santa Cruz with a degree in Business Management Economics and a minor in Technology and Information Management.

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What Is PRINCE2 Methodology?

Lucid Content

Reading time: about 5 min

Colin Bentley, in his book PRINCE2: A Practical Handbook , asks a perfectly reasonable question: “Why do so many professionals say they are project managing, when what they are actually doing is firefighting?”

PRINCE2 is an acronym which stands for PR ojects IN C ontrolled E nvironments. (The original PRINCE methodology was updated in 1996, hence the “2.”) Its framework requires projects to have organized and controlled starts, middles, and ends.

7 principles of PRINCE2 methodology

You’ll quickly see that seven is the magic number in this methodology. PRINCE2 follows seven basic principles:

1. Projects must have a continued business justification

Throughout the project (not just at the beginning), you should think about the project’s return on investment. Determine whether the benefits outweigh the cost and risk and how likely it is that the project will result in those benefits.

2. Teams should learn from experience

Teams keep a lessons log, where they report lessons learned from their projects and avoid repeated mistakes.

3. Roles and responsibilities need to be clearly defined

Everyone involved in the project should understand their responsibilities and the responsibilities of others. We’ll talk more about roles within PRINCE2 methodology in a moment.

4. Work is planned and managed in stages

PRINCE2 breaks a project up into more manageable stages. At the end of each stage, teams can record lessons learned and evaluate whether the project is on track.

5. Manage the team by exception

The project board (senior managers) initially determines time, cost, and other project requirements and then leaves day-to-day management to the project manager. If issues arise that impact the requirements, the project manager would inform the board.

6. Stay focused on the products

The team should always focus on meeting project requirements and keeping the quality high.

7. Tailor this approach to meet project requirements

You don’t have to live PRINCE2 to the letter. Adapt the method based on the size of the project, the size of your team, etc.

The PRINCE2 method allows for better control of resources and better business and project risk management. PRINCE2 identifies who should be involved in the project and in what capacity. If a project does not adhere to these basic principles, then PRINCE2 is not the right way to manage the project.

PRINCE2 processes

In keeping with the seven steps, there are seven different stages of a PRINCE2 project.

1. Starting up a project

Create a project mandate that includes a brief explanation of achievable goals and the necessity of the project. Have the mandate assessed. If approved, create a more detailed project brief.

2. Directing a project

The project board discusses the expanded project brief. If it's approved, they then identify all needed resources and delegate to the project manager.

3. Initiating a project

The project manager creates a plan and timeline for the project. They include checkpoints for six targets: time, cost, quality, scope, risk, and benefits.

4. Controlling a project

Divide the project into smaller tasks and assign them to the team manager and project team. The project manager will monitor progress and make changes as needed.

5. Managing product delivery

Compare the project’s progress to the original project brief. Review completed project tasks. The project board will then give approval.

6. Managing stage boundaries

The project board and manager review every stage of the project for quality and adherence to the plan. The review is a chance for the project board to decide to move to the next stage of the project or pause progress altogether.

7. Closing a project

The project board will give final approval once deliverables are met. The project manager will complete any remaining documentation and reporting.

7 roles of PRINCE2 methodology

There are three primary roles within a PRINCE2 method project: the project manager, the project team, and the project board. The project board consists of the customer, the end user, and the supplier.

In addition to these principal roles, support roles are an integral part of project completion:

• The customer: Whoever is paying for the project.
• The user: Anyone who will use deliverables or will become impacted by the project’s outcome. In some instances, the user and the customer could be the same individual.
• The supplier: An expert whose knowledge and skills are needed to create the final product.
• The project manager: The individual who organizes the projects, delegates work/assignments, and keeps the project on schedule.
• The project team: The group that does the actual work and completes project tasks.
• The team manager: The leader of the project team and reports to the project manager.
• The administrator: Owns all documentation, meeting schedules, and overall project facilitation. Depending on the size of the project, the admin role could be assumed by the project manager.

Use our swimlane process map template in Lucidchart to help your team understand roles and responsibilities.

Types of PRINCE2 method documentation

Keep detailed records throughout the life of a project. Use them to check deliverables, report/communicate to the project board, and serve as a roadmap for when and where to make changes.

• Business case: A document that explains why the project is necessary and what benefits end users can anticipate.
• Risk register: A stock of potential risks, their probability to occur, and anticipated impact.
• Quality register: A record of quality assurance checks performed during the project.
• Issues register: A running log of concerns and/or problems observed by project team members.
• Lessons log: An account of lessons learned from the project that could be applied to future projects.
• Daily log: A daily record kept by the project manager detailing project progress and activity.

Applying PRINCE2

The best way to fully understand PRINCE2 methodology is to apply the steps to a project of your own. Various PRINCE2 training, qualification, and certificates are available. Frequent process review throughout the life of a project leads to stronger results.

Lucidchart has customizable templates that relate to PRINCE2. Use them to help your team understand the PRINCE2 project management process.

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

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What is PRINCE2? PRINCE2 Methodology, 7 Principles, Processes & Themes

PRINCE2 is a globally recognized methodology in Project Management that provides a structured and scalable approach to managing projects. Developed by the UK government, PRINCE2 offers a comprehensive framework that emphasizes controlled project execution, effective risk management, and clear communication channels. It has become a global standard for project management and is widely adopted across various industries and sectors. 

In this blog post, we will explore the key components of PRINCE2, including PRINCE2 methodology, 7 principles of PRINCE2, processes, and themes. Understanding these elements will give you valuable insights into how PRINCE2 can enhance project success and improve overall project management practices.

Following are the topics which will be covered in this article:

Introduction, what is prince2.

• History and Evolution of PRINCE2
• Why is PRINCE2 Important

Elements of PRINCE2 Methodology

Six aspects of prince2, various roles defined in prince2, what is prince2 project management.

• Prince2 Methodologies vs. Alternative Methodologies

Project management methods frequently vary by industry, project, or even team within an organization. You can employ a single approach or combine two or more to achieve the best outcomes. The goal is to make it work for your organization and its demands. But you need to understand the method to use it correctly. Therefore, those involved in project management need to continue learning about new methodologies.

You must have the appropriate credentials and certification to operate in a field that employs project management methodologies. PRINCE2 is one of a small number of essential qualifications.

PRINCE2, which stands for Projects In Controlled Environments, is a well known methodology in project management in over 150 countries. It is a process-based approach that emphasizes structure and management throughout the project. Every project begins with a comprehensive plan, each phase is structured, and any loose ends are resolved after completion. 

PRINCE2 is a project management approach mostly utilized in the United Kingdom, Australia, and Europe. The PRINCE2 Methodology is a strategy which focuses on managing resources and risks by splitting projects into smaller phases, defining roles and duties, and employing seven procedures to manage the project life cycle.

History & Evolution of PRINCE2

The history and evolution of PRINCE2 showcase the development and refinement of this renowned methodology in project management. Initially developed by the UK government in the 1980s as PRINCE, it aimed to establish standardized project management practices. Over time, PRINCE2 emerged as an enhanced version, incorporating feedback and practical experiences from project management professionals worldwide.

With its emphasis on flexibility, adaptability, and scalability, PRINCE2 has evolved into a globally recognized and widely adopted methodology, empowering organizations to manage projects of varying sizes and complexities effectively. Understanding the historical context and evolutionary journey of PRINCE2 provides valuable insights into its robust framework and sets the stage for comprehending its practical implementation and benefits.

Origins of PRINCE2

In 1989, the Computer and Telecommunications Agency (CCTA) was established. In April 1989, the CCTA renamed the framework from PROMPT II IN THE CCTA Environment to PRINCE and implemented it as an IT standard for project management. Civil Servants, therefore, chose to modify the framework’s name to the abbreviation PRINCE, which still stands for PRojects IN Controlled Environments. However, the framework was rarely used due to its rigidity and lack of adaptable characteristics for minor projects.

Evolution of PRINCE2

After several talks with project management experts and 150 European organizations, PRINCE2 was formed in 1996 as a best practice framework and an updated, more flexible framework than its predecessor. The PRINCE2 methodology significantly changed in 2009 when the seven core principles were developed. In 2013, ownership was transferred from HM Cabinet to AXELOS Ltd.

AXELOS has recently published the 2017 Update to PRINCE2. Beginning in 2017, it was decided that the PRINCE2 syllabus would be revised in response to feedback from world-renowned PRINCE2 Practitioners, who recommended a greater emphasis on the link between the themes and guidance and the application of the framework to real-world business scenarios. There are still the same ideas, procedures, and themes; however, the PRINCE2 tests and training techniques have been reorganized.

Recognition of PRINCE2 Globally

PRINCE2 has gained widespread recognition and acceptance on a global scale, making it one of the most sought-after project management methodologies. Its global recognition stems from its comprehensive framework, adaptability to different industries, and alignment with international project management standards. 

Numerous public and private organizations across various sectors have embraced PRINCE2 as their preferred approach to project management. Additionally, the availability of PRINCE2 certifications further solidifies its global recognition, as professionals worldwide seek to enhance their project management skills and validate their expertise in PRINCE2 methodology. The international recognition of PRINCE2 demonstrates its effectiveness in driving project success and establishing a common language and approach for project teams worldwide.

Why is PRINCE2 Important?

PRINCE2 benefits project managers, directors, and an organization by allowing for more control over resources and managing business and project risk more effectively. Therefore, PRINCE2 represents well-established and tested best practices in project management. Following, we have listed a few of the advantages of PRINCE2.

Helps to Get Into the Project Management Domain

PRINCE2 is the industry standard for project management . It teaches you the skills you need to be confident in managing projects successfully. This is because PRINCE2 employs a common language, systems, and procedures. As a result, this gives you more control over your resources and risks.

Enhances Your Knowledge Flexibility

PRINCE2 is a best practice method custom-made to the specific needs of different organizations for all projects, including agile delivery. Hence, whatever your typical projects entail, PRINCE2 can handle them. In addition, you can gradually create a more bespoke and subjectively appropriate approach to project management for your organization by learning as you apply and tailor the framework.

Improves Employment Prospects

A PRINCE2 certification is an excellent addition to your resume. PRINCE2 is a world-class international product and the industry standard for project management. PRINCE2 certification is held by more than half of those who responded to Arras People’s 2011 survey . So it’s no surprise that many companies worldwide require PRINCE2 certification for their employees.

Looking for an option to improve efficiency of your project? Checkout this PRINCE2 Certification course now!

A Best Practice Framework

PRINCE2 is more than just a theory. The methodology is founded on practitioners’ expertise and practical knowledge from numerous industries and sectors. It also has a track record of success, with plenty of case studies to back up the efficacy of PRINCE2 best practices.

Acts as a Common Language

PRINCE2 is an organized and controlled start, ensuring a valid reason for the project and all people and resources are organized. Therefore, they are ready for the project with good communication among the project management team, stakeholders, and the rest of the organization.

PRINCE2 has now been in use for several decades. Therefore, it has gained widespread recognition and acceptance, with a global community of practitioners familiar with the framework’s common terminology and methods.

The PRINCE2 methodology comprises several essential elements that work together to provide a structured and controlled approach to project management. By integrating these elements,

PRINCE2 enables organizations to establish a powerful foundation for successful project delivery, ensuring transparency, accountability, and adapting to evolving project requirements.

7 Principles of PRINCE2

PRINCE2 consists of 7 principles and completes a project when applied to all of them and tailored to suit the type and size of the project.

The most practiced methodology, the PRINCE2 principles, are composed to add to the success of a project without involving it with any trouble along with the management. The subjects, procedures, and product descriptions depict what completes the project.

Continued Business Justification

Which necessitates a justifiable reason for initiating the project? This justification is reevaluated throughout the project’s lifecycle. This confirms that there is a justifiable reason to begin the project, which, though it may evolve, should be valid throughout its life.

Learn from Experience

Lessons from the past should be applied in ongoing projects. Lessons from ongoing projects should be documented for future use. It is a common practice for companies to recruit a project manager based on his or her experience in a similar project.

Defined Roles and Responsibilities

The roles and responsibilities of the different levels of the project team are to be defined so as to satisfy the interests of primary stakeholders.

For instance, some of the common roles assigned in a project are project manager, project sponsor, project board, project team members, project administrator, and so on.

Manage by Stages

According to PRINCE2 best practice guidance, a project should be broken into at least two stages for better management and control. It is said that planning the number of stages needs to take into account risk and cost.

Manage by Exception

A PRINCE2 project has defined tolerances for every variable (cost, time, quality, scope, benefits, and risk) to establish the limits of delegated authority. The project board delegates to the project manager the authority to manage a management stage daily (within agreed tolerances). 

The project manager can make necessary adjustments if the management phase is anticipated to remain within tolerance. In addition, it permits the project management team to manage by exception. Implementing “manage by exception” efficiently uses senior management’s time because it reduces their time burden without removing their control by ensuring that decisions are made at the appropriate organizational level.

Focus on Products

PRINCE2 advocates an output-oriented approach to a project, and to that end, product definitions, quality, and other criteria are integral to achieving successful outcomes. Some experts suggest integrating PRINCE2 with Six Sigma for process improvement projects.

According to a template made available by AXELOS, the product description should cover the following points: purpose, composition, derivation, format, presentation, development skills required, quality criteria, quality tolerance, quality method, quality skills required, and quality responsibilities.

Tailor to Suit the Project Environment

PRINCE2 is a universal project management method that can be adapted to any project type, geography, or culture, considering the project’s environment, size, complexity, importance, team capability, and risk. It is also suitable for use in any project context, regardless of size, complexity, importance, or team competence. Moreover, the method is flexible enough to be applied to any project because it is designed to be adapted to the project context.

7 Processes of PRINCE2

PRINCE2 processes describe the evolution from the pre-project activity of getting started throughout the project life-cycle until the end of the project. Each process has agendas of suggested activities, products, and related duties. The project manager supervises the seven techniques and confirms them by the task board. Here is a breakdown of each stage.

PRINCE2 processes describe the evolution from the pre-project activity of getting started throughout the project lifecycle until the end of the project. 

Each process has agendas of suggested activities, products, and related duties. The processes describe a progression from the pre-project activity of getting started to the project lifecycle stages and the final act of project closure . Therefore, each process includes a suggested activities, products, and responsibilities checklist. Following are the procedures of PRINCE2:

Starting Up a Project

Before the project begins, the very first procedure of the project is the Pre-Project Process. First, the project’s goals are defined, forming a project management team. Moreover, project managers and executives are responsible for creating the project brief and stage plan for the pre-project stage.

Directing a Project

Authorizing project stages and administering the project from start to finish (by Exception) are the main functions of this particular PRINCE2 process. Consequently, the Board of Directors for the Project is responsible for functioning in this domain.

Initiating a Project

The project has officially started in this “Initiating a Project” process. The project’s products are defined (including quality, time, cost, risk, and resources.) Moreover, roles responsible for Project Initiation Documentation (including Project Plan & Business Case) include project manager and executive.

C ontrolling a Stage

Each stage monitors and controls the project status with corrective actions/exception escalations. In addition, roles are responsible for communicating project-related information to stakeholders: Manager of the Project.

Manage Product Delivery

Checkpoint reports are used to report on the execution of work packages and the creation of scheduled project products to the project manager. Again, the team leader is the responsible person here.

Managing a Stage Boundary

The End-Stage Report and Stage Plan report on the current stage’s performance and plan the following stage (and whether to continue the project.) So, the board of directors for the project is responsible for looking after the managing stage.

Closing a Project

Responsibilities are accountable for completing the project with an end project report and a lessons learned report. Consequently, the Board of Directors is responsible for the project.

7 Themes of PRINCE2

PRINCE2 themes describe the aspects of project management that must be addressed continually and in parallel throughout the project. Seven themes explain the specific treatment required by Prince2 Training Classes for various project management disciplines. They are set up towards the start of the project and then monitored until the end. Projects are kept on a track that continuously addresses these topics.

Business Case Theme 

The Business case theme associated with the continued business justification principle gives information about whether a task is advantageous and achievable.

Organization Theme 

The organization theme defines the roles and responsibilities that involve project managers to have everybody’s jobs and obligations on record.

Quality Theme 

The quality theme is identified with an emphasis on the principles of the products. Quality can be a conceptual idea, so defining it towards the start of a project is imperative to keeping the work on track.

Plans Theme 

The Plans theme describes the proficiency of the targets. It focuses on the products, timescale, cost, quality, and advantages.

Risk Theme 

The risk theme is the reason to distinguish, access, and control uncertain events during a project. This theme gets recorded in a risk log. Adverse risks are called threats, and positive ones are called opportunities.

Change Theme 

The change theme concerns the progress on demand and issues that emerge amid the project. However, the thought isn’t to avoid changes to get them conceded to before execution.

Progress Theme

The progress theme establishes the tools to monitor and compare actual accomplishments against those planned. It forecasts the project objectives and continued viability and controls any unacceptable deviations.

The PRINCE2 methodology identifies six aspects that each project must manage. First, project managers must utilize KPIs to evaluate performance objectives and project constraints. Following are the six aspects of PRINCE2:

PRINCE2 is one of the most widely used project management methodologies today. It is based on the concept of project roles. Therefore, the method specifies nine filled roles, even if the same person fills multiple roles. The following are the roles under the PRINCE2 methodology:

The executive secures project funding and maintains the project’s business case and justification. However, they accept the project’s deliverables and focus on the project’s benefits to the organization or the program or portfolio that the project is a part of, similar to a “project sponsor” in other methodologies. So, the executive appoints the project board and project management team.

The Senior Use

This represents the organization or people who will use the PRINCE2 project’s product or service. Those who will be affected by it directly. The customer and the user may be the same. In addition, the senior user ensures that the Project Board respects the user’s needs and that these are specified in the project.

Senior Supplier

The suppliers are all individuals and organizations who carry out the project work, i.e., those who create the project’s deliverables. It consists of internal (the project team) and external (suppliers). It may also include those who will support and maintain the products after the completion of the project.

Firstly, the senior supplier represents the suppliers’ interests. Secondly, suppliers typically want to be fairly compensated for their efforts and receive a positive reference for future work. In addition, work satisfaction ranks high on the list as well.

Project Manager

The project manager oversees the project’s planning, execution, controlling, and closure phases. So, project managers form a project team and keep track of its progress. In addition, they make a project plan that includes a timeline and a budget and communicate with the project team and customers.

Team Manager

The Team Manager is a lower-level manager in charge of the project’s deliverables daily. They are responsible to the project manager. They may have a large project team supporting them or do all of the work themselves, but they are the technical experts.

The team manager creates work packages, which are then assigned to project team members for completion. A series of work packages is transformed into a management stage.

Project Assurance

At predetermined intervals, Project Assurance provides an independent assessment of project progress. The Project Board commonly fills this role, which must be independent of the Project Manager. The Project Board may, however, appoint an independent project assurance team. Moreover, this team is responsible for keeping the project on track with business assurance, user assurance, and supplier assurance.

PRINCE2 plays a crucial role in project management by effectively providing a structured and standardized approach to managing projects of varying scales and complexities. With its emphasis on clear governance, risk management, and stakeholder engagement, PRINCE2 enables project managers to maintain control, mitigate risks, and deliver projects within defined timeframes and budgets. 

By implementing PRINCE2 principles, processes, and themes, organizations can enhance project success rates, improve communication and collaboration among project teams, and ensure alignment with business objectives. PRINCE2’s systematic approach empowers project managers to navigate challenges, make informed decisions, and achieve desired project outcomes, making it a valuable methodology in project management.

PRINCE2 Methodology vs. Alternative Methodologies

As a project manager, you devote most of your attention to selecting your team’s appropriate project management approach. A methodology often provides a framework consisting of procedures, practices, principles, and aspirations to direct the progress of a project. PRINCE2 has demonstrated its effectiveness and is now a well-known project management method. Considering the above mentioned considerations, you may determine if PRINCE2 is suitable for their projects and teams.

If you believe this is not the appropriate framework, numerous more prevalent alternatives exist. The following are popular project management methodologies:

• Agile project Management Methodology
• Scrum Methodology
• Kanban Methodology
• Lean Methods

It is up to the project manager to choose an approach. The best way to make this decision is by analyzing the project’s needs, the available resources, and the project team’s capacity to adhere to the methodology.

PRINCE2 is a highly regarded project management methodology providing a structured and scalable framework. With its focus on controlled project execution, effective risk management, and clear communication channels, PRINCE2 has become a global standard in project management. 

By understanding the methodology, principles, processes, and themes of PRINCE2, professionals can enhance their project management skills, improve project success rates, and effectively align projects with organizational objectives. Whether new to PRINCE2 or looking to expand your knowledge, embracing this methodology can lead to more efficient project delivery, increased stakeholder satisfaction, and overall project success. 

With its proven track record and wide adoption across industries, PRINCE2 offers a robust and adaptable approach to project management that can drive positive outcomes and propel organizations toward success in their project endeavors.

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What Is PRINCE2? Methodology, Principles, Roles & Processes

Among various project management methodologies, PRINCE2 has proven to be very useful and effective in project management .

If you want to use a methodology that allows you to manage projects in a controlled environment, the PRINCE2 method is perfect for you. With this methodology, carrying out an entire project is easy.

This article covers everything you need about PRINCE2, including the PRINCE2 techniques and certifications.

Let’s get started.

What is PRINCE2?

PRINCE2 is an effective project management methodology widely used in most of the world and by teams in over 150 countries. The full form of PRINCE is “Projects In Controlled Environments.”

In 1989, a UK government support agency called the CCTA (the Central Computer and Telecommunications Agency) developed PRINCE2.

Before PRINCE2 (the second edition of the PRINCE method), there was an earlier PRINCE method (the first edition). Project management specialists initially developed it.

PRINCE2 was originally a derivative of the United Kingdom government's methodology for information system projects called Project Resource Organization Management Planning Technique (PROMPT).

This project management methodology aims to improve organization and manage your project lifecycle from start to finish. It supports organizing a project into seven processes covering all the activities within a comprehensive project plan .

Among all the project management processes, PRINCE2 is an effective and beginner-friendly methodology that is easy to use for project managers. With its seven principles, project managers can deliver project deliverables successfully when due.

Benefits of the PRINCE2 Methodology for Project Management

The PRINCE2 methodology has many benefits in project management, which is why project managers subscribe to it. Here are some of the benefits of the PRINCE2 methodology that makes it attractive.

1. A Highly Recognized Form of Project Management

PRINCE2 is so valuable that it is recognized by the Project Management Institute (PMI). The PRINCE2 method is consistent with the project management knowledge areas and the Project Management Professional (PMP) certification.

2. A Good Beginner Methodology for Project Managers

PRINCE2 has simple steps which project managers can follow to implement the method. These processes are basic and clear to understand, making it possible for your project team to implement these steps and get the desired results easily.

You can effectively train your teams with basic project management skills such as project planning, time management, and communication skills with the PRINCE2 method.

These project management skills are important for every project team, and you can apply them when executing future projects.

3. Extremely Flexible

The design of the PRINCE2 method is to be flexible, implying that project managers can make the necessary changes to fit in with the project environment and meet the project objective.

PRINCE2 can accommodate various kinds of projects in different industries. There are no hard or fast rules applied to the PRINCE2 method.

7 Basic Principles of PRINCE2 Methodology

The PRINC2 methodology approach involves managing projects in a well-controlled environment. There are seven principles that provide the core frameworks for a PRINCE2 mindset.

1. Continued Business Justification

The business case is a vital document in PRINCE2. It is important to review the business case throughout the project lifecycle. Do this to ensure the project remains viable and does to come to an unwanted end.

2. Learn From Experience

PRINCE2 values continuous learning for team members. Keeping a lesson log is essential to avoid making the same errors you made in the previous project .

You can document the lessons learned from the previous project with the lessons log and use the information within the lesson log to guide your action in the current project.

3. Define Roles and Responsibilities

Project managers can take on more than one role or have shared roles. Everyone involved in the project should know their roles and what other project team members are responsible for.

Four levels make up the structure of people in a project: corporate, project board, project manager, and team.

4. Manage by Stages

The project manager breaks down tough tasks into stages or project phases to ensure efficiency while carrying them out. After each phase, document the lesson learned and the project’s outcome to guide further activities and track the project’s direction.

5. Manage by Exception

Since the project is running well, the manager does not need to intervene much in the project management process. The board needs only to be informed when a problem arises with the project.

6. Focus on Product Quality

Take the quality of project deliverables and project requirements seriously. The project manager must ensure that the teams regularly check and measure their quality.

7. Tailor to Suit Project Environment

You can use certain factors like size, risk, complexity, and importance to tailor the project in the initiation phase and throughout each stage to suit the project environment.

Key Roles in a PRINCE2 Project

Three main roles exist in PRINCE2. These roles are the project board, the project manager, the customer, and the team manager.

1. Project Manager

The project manager manages all the project management lifecycle phases, such as project planning, initiation, execution , controlling, and closure.

Here are the project manager’s key responsibilities:

• The project manager tracks project progress
• Organize a project team and monitor its performance
• Create a comprehensive project plan that includes a schedule and budget
• Communicate with the project board and customers

When many projects run simultaneously, the project manager sets up a project support office to help manage multiple projects successfully .

2. Team Manager

The role of a team manager largely depends on the team size. Team managers are expected to supervise the team member and report closely to a project manager.

3. Customer

A customer may be a person, a group, or an organization paying for the project. Customers are the chief beneficiaries of the project outcome.

Here are some key responsibilities played by customers.

• Provide adequate funds and resources needed to meet the project’s requirements
• Understand important project management documents such as the project plan, business case, risk register, or project brief

4. Project Board

The project board consists of customers and business executives. Within the board, there are two categories. One category represents the user side, and another represents the suppliers or specialists involved in the project.

Here are the key responsibilities of the project board.

• Project board members are responsible for the high-level decision-making process.
• The manager and project board review the project progress
• Communicate with the project head regularly and approve or reject his initiatives

Key Aspects of a PRINCE2 Project

The PRINCE2 methodology has six key aspects for managing projects. Project managers use KPIs to measure performance goals.

There are six major aspects of the PRINCE2 project.

• Scope: The project scope contains a detailed outline of everything required to complete the project. It outlines the goals, deadline, and project deliverables.
• Costs: The project cost is how much resources, especially money, are required to execute the project. Knowing the cost prevents spending over the budget.
• Timescale: The time scale shows how long it will take to complete the project.
• Risk: Every project always has risk attached to it. PRINCE2 enforces risk assessment and management to help the team rise above the project’s risks .
• Quality: You need to know the quality requirements of your project stakeholders or clients. Ensure you have quality control and assurance procedures to meet quality standards.
• Benefits: PRINCE2 requires that each project has a clear business justification. The project also requires a business case and a cost-benefit analysis to explain the project's purpose and financial or strategic benefits.

The 7 Processes of a PRINCE2 Project

This project management framework or methodology uses seven unique processes to manage projects effectively. Since PRINCE2 is a controlled environment method, the project manager, project board, and customers have their roles defined for synergy among them.

1. Set Up the Project

At this point, your team determines if the project is viable. To determine the project's viability, the team has to submit the project plan using a project mandate, which gives a general idea of what the project is about and defines the project case.

After getting approval for the project plan, project members create a more detailed project brief.

2. Directing

At this point, the project board reviews the briefs and determines what more is needed for the team to move forward. There could be a need to make basic adjustments to project briefs.

3. Initiation

A project manager is chosen to lead the team and create an even more detailed project plan. You consider important factors like time, cost, quality, scope, risk, and benefits/

The project can officially begin when the project board approves the project plan that the project manager creates.

4. Controlling

Control stages are when project managers break down certain parts to manage them effectively. Then the manager delegates the smaller chunk of the project to individual team members to execute.

5. Managing Product Delivery

The project manager makes sure you manage the project effectively to meet quality expectations. Access the deliverables to ensure that it meets the quality set by the quality register.

This next stage is when the project board reviews project deliverables. They can either approve the deliverables or request changes to the project.

6. Managing Stage Boundaries

The board reviews the project's progress at the end of each stage to determine if there is a need to proceed with the project or if it should be abandoned.

7. Close the Project

This stage is when the project manager completes any outstanding work, records project outcomes and concludes the final documentation before the end of the project lifecycle.

Types of PRINCE2 Documentation

The success of every project is largely based on how effective the documentation process is. Documentation helps to keep projects on track and submit reports to the board.

Here are some of the documents used in the PRINCE2 project management methodology.

• Business Case : The business case explains the importance and need for the project, plus the benefits it brings to the company and users.
• Risk Register: The risk register contains a list of potential risks affecting the project and perceived opportunities.
• Quality Register : This log ensures no gaps between expectations and deliverables.
• Issues Register: The issues register highlights all the issues and problems mentioned or reported by the team members. The project manager can use this log to inform the board if issues arise.
• Lessons Log: This log contains recorded lessons learned from previous stages. The log includes both mistakes and the right decisions.
• Daily Log: The information in this log includes all the reports on the performance and outcomes of the project every single day. The project manager writes the log.

PRINCE2 Project Management Techniques

There are two PRINCE2 techniques: Project Scope and Project Assurance.

• Project Assurance: This PRINCE2 project management technique provides a clear individual view of the project process and if it is making progress or not. These views include the business view, user view, and specialist view.
• Project Scope: You can describe it as a detailed outline of all the main activities during the project execution phase. Project scope management is essential for managing projects successfully.

PRINCE2 Certification

The PRINCE2 Certification process involves taking a course of study in the PRINCE2 project management methodology. Project management specialists take the PRINCE2 certification to acquire practical knowledge for implementing PRINCE2 for project tasks.

You must take the course with an accredited training organization, either online or onsite. To be certified, the user must pass the exams.

PRINCE2 project management methodology has four levels of certification.

• PRINCE2 2017 Foundation
• PRINCE2 Agile Foundation
• PRINCE2 2017 Practitioner
• PRINCE2 Agile Practitioner

The cost of the certification course and exam depends on the PRINCE2 certification level and the certified training body you pick. PRINCE2 certification costs range from $550 to $1,000.

How Project Management Software Can Help You Run Your PRINCE2 Projects

The PRINCE2 methodology is a great fit for many projects run by public and private organizations. Without the right software tool, you will struggle to deliver your PRINCE2 projects successfully and at the right time.

Use project management software to manage your PRINCE2 projects effectively. You can use the various automation features to save valuable time and increase your team’s productivity.

• Monday.com is a project management solution that offers high-quality process-visualizations of your PRINCE2 projects from one location.
• ClickUp is a team collaboration software that helps you break down your PRINCE2 projects into simple workflows.
• Wrike is a powerful project planning software for managing complex PRINCE2 projects.

You can choose any of the above software tools to help run your PRINCE2 projects. Try out the free plan or free trial on its premium plans to start managing your PRINCE2 projects effectively.

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• Project Management

What Is PRINCE2? 2024 Guide to Projects in Controlled Environments

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Project managers are familiar with Scrum, Kanban, and Scrumban methodologies, but many are puzzled when PRINCE2 is mentioned. In this guide, we'll look at this project management methodology and will help you answer the question: What is PRINCE2?

Last Updated: 24 Feb'24 2024-02-24T11:25:26+00:00

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Key Takeaways: What Is PRINCE2?

• PRINCE2 is a highly structured project management methodology that’s ideal for large organizations and complex projects.
• While PRINCE2 is historically a Linear methodology, it has evolved and can now be used with Agile methods.
• PRINCE2 is not suitable for small teams managing simple projects due to its complex structure.

Don’t worry if you’re not familiar with the PRINCE2 method. In fact, most working professionals are bewildered when asked, what is PRINCE2? PRINCE2, which stands for PR ojects IN C ontrolled E nvironments, is a highly structured approach to project management that’s mainly used by enormous organizations and government agencies.

We briefly covered PRINCE2 in our project management methodology roundup , and it garnered enough attention that we decided to create this guide. If you have a hankering for all things PRINCE2 — which is predominantly a linear project management framework — and want to see if this method is for you, you’re in the right place.

In the following sections, we will cover everything from the history of PRINCE2 to its six aspects, seven principles, and even the exams and certifications that are available for those who want to learn more.

History of PRINCE2

A project management method known as PROMPT (project resource organization management planning technique) was designed by Simpact Systems in 1975. The U.K. government licensed this method, and it was quickly adjusted to create a new project management standard for IT projects. The new standard was called PRINCE.

When officials found that PRINCE methods could be used to manage numerous types of projects — not just IT-based ones — guides and training methods were updated to remove any mention of uses in IT fields. The next version, launched in 1996 by Her Majesty’s (HM) Cabinet Office, was called PRINCE2.

The 6 Aspects of PRINCE2

Our team of experts has used many project management methodologies, and we can tell you that PRINCE2 is not for the faint of heart. PRINCE2 has many moving parts and multiple scopes, principles and phases. However, this level of structure makes the methodology appeal to companies that want total control over projects.

In the following section, we will cover the six phases of PRINCE2. Each aspect is a phase of the project that must be managed. The idea of PRINCE2 is to ensure that every part of a project is accounted for and that the project is worth pursuing. Below, we’ll go over the six phases.

1. Project Scope

When defining the project scope, team members list and explain the project’s overall goal, establish deadlines, and explain the project deliverables. By setting these boundaries up front, project managers know what to expect before the project begins.

As you can imagine, cost control was a huge part of project design for government agencies. Every penny had to be accounted for. When using PRINCE2, all finances and budgets are discussed in detail and planned so that the project comes in at or under budget.

3. Timescales

Every project has a deadline, and projects in PRINCE2 are no different. The project board sets a deadline for the overall project and assigns deadlines and timescales for each task within the project. Before the project begins, the project manager and team know how the timeline looks.

Risk is something that everyone has to deal with, including project managers. The risk aspect of PRINCE2 helps project leaders recognize and plan for issues that might arise during the project. With a risk plan in place, dealing with problems should be easier.

The quality aspect of PRINCE2 is designed to ensure that every part of the project and the deliverables to the client meet the highest standards possible. By sitting down with your client and listening to their needs and expectations, setting quality goals is easy to do.

6. Benefits

One of the main points of using PRINCE2 is to ensure that every project has a valid reason and that work isn’t just being done for the sake of it. The “benefit” aspect of PRINCE2 helps managers build a business case that explains the project’s purpose, highlights its strategic benefits and shows the financial gains it may bring.

7 Principles of PRINCE2 Project Management

PRINCE2 is based on seven key principles that help set the project framework and participants’ mindsets. Every principle must be followed if you want your way of working to be considered PRINCE2. We’ll go over the seven principles below.

1. Continued Business Justification

During the planning stage, the project management team develops a business case document. This document is referred to and refined while the project remains viable. Should the project’s viability vanish, the project board will cancel the project.

2. Learn From Experience

PRINCE2 mandates that project members use lesson logs. The lesson logs document successes and failures so that future project managers can see what worked and what didn’t. Fortunately, many project management tools that made our roundup of the best project management software have wikis and tools that can be used as lesson logs.

3. Define Roles and Responsibilities

Every role and the responsibilities of each role are defined so that all project team members know what they are doing and what everyone else is responsible for. This helps with communication as team members know who to approach for different issues. You’ll find that RACI charts that help define rolls are often used alongside PRINCE2 methods.

4. Manage by Stages

The project manager breaks down projects into stages with due dates and milestones so that complex portions of the project are less demanding. As each stage is completed, the risk and lesson logs and the business case documents are updated.

5. Manage by Exception

Project managers work within a range of tolerances. Should a problem arise, the project manager can shift course — within the set tolerances — to try and fix the situation. Should the problem become worse, the project manager must notify the project board so that action can be taken.

6. Focus on Products

Quality control is a key aspect of the PRINCE2 method. The project team must always keep their eyes on the project deliverables. The quality requirements listed in the quality register must dictate the work performed and not vice versa.

7. Tailor to the Environment

Every project is different. The good news is that the PRINCE2 method is flexible enough to adapt to your project environment. You can adjust the team size, timelines and planning, risk management, and more to suit your clients’ needs.

7 Phases of PRINCE2 Project Management

The PRINCE2 method uses seven phases to manage projects effectively. The seven phases can help the project team stay the course from project initiation to completion. Below, we’ll explain the seven phases of PRINCE2.

1. Starting Up a Project

Starting up a project is when all parties come together to create a project brief, a stage plan and the business case. The idea is to determine whether the project is viable. If the project gets the go-ahead, a project mandate is created.

2. Initiating a Project

During the initiation phase, the project board chooses their project manager, who then works on project initiation documentation. This includes defining the project’s scope, costs, timelines, risks, product quality and benefits.

3. Directing a Project

The project board directs the project from start to finish. The project board is responsible for initiating the project, setting stage boundaries, ad hoc direction, delivering the product and closing the project.

4. Controlling a Stage

The project and team manager control the project stages. The project manager breaks up stages into bite-sized chunks that are easy to manage. They assign tasks and handle problems. The team manager organizes daily tasks focused on risk management and change control and acts as a liaison between the project team and the project manager.

5. Managing Product Delivery

Managing product delivery is the act of accepting and executing work, ensuring the quality of the deliverable and communicating among the team, the manager and the board. In this phase, the board also decides if the product needs to be revised or is approved for delivery.

6. Managing Stage Boundaries

At the end of every stage, the project manager and the project board meet to review the project’s progress. Should all be going well, the board will approve the next project stage, and the business case and project plan will be updated. The project manager also meets with the team to update the lesson and risk logs.

7. Closing a Project

The last phase is closing the project. Everyone ensures that the deliverables meet the set standards and that all tasks have been fully completed. The deliverable is handed over to the client, the project is evaluated, and the project manager submits a request to close the project to the project board.

PRINCE2 Project Roles

The PRINCE2 method requires a controlled project environment. Because of this, all roles are set before the project starts. In this section, we’ll look at the key roles in PRINCE2.

• Project Manager — Creates, plans, executes and controls all project stages
• Team Manager — Supervises the team and ensures good communication
• Project Team — The team that executes the work on the deliverables
• Project Board — High-level executives who make critical project decisions
• Customer — Who you’re working for and who pays for the deliverable

This is a quick breakdown of the key roles in PRINCE2. Many more positions exist. Some of the other critical roles include the senior supplier who provides resources and expertise to the project. Business sponsors ensure that the project provides value for the money, and users who receive and use the created products.

We would be remiss not to mention that the project board consists of three people: an executive whose shoulders carry the weight of the project, a senior user who represents the users’ requirements and a senior supplier who represents the supplier’s interests.

On top of this, there are also project support roles that help the project manager handle administration duties, and project assurance specialists who protect the interests of the board members by providing independent views.

PRINCE2 Certifications

While project management certification is not required to use PRINCE2, getting a certification is highly recommended. Below, we’ll quickly cover the currently available PRINCE2 certifications. 

• PRINCE2 Foundation — Provides an introduction to PRINCE2’s management methods, principles, phases, themes and terminology.
• PRINCE2 Practitioner — Readies you to incorporate PRINCE2 methods into many project management scenarios.
• PRINCE2 Agile Foundation — Suitable for project managers who want to understand PRINCE2 governance with Agile concepts.
• PRINCE2 Agile Practitioner — Teaches students how to combine Agile methods within the framework of PRINCE2.

It’s worth noting that there are prerequisites for the PRINCE2 Practitioner and PRINCE2 Agile exams. To sit for either test, you must show proof of one of the following certifications:

• PRINCE2 Foundation certificate
• Project Management Qualification (PMQ)
• Project Professional Qualification (PPQ)
• Project Management Professional (PMP)
• Certified Associate in Project Management (CAPM)
• IPMA Level A, B, C or D

The exams are available through various online organizations. Just be sure they offer courses for the newest edition of PRINCE2 and that they’re accredited.

Alternatives to PRINCE2

If you have decided that PRINCE2 isn’t for you but still want a project management certification, you have options. PMP (project management professional) is a universally recognized certification that the Project Management Institute offers. You’ll learn about the five stages of projects and various methodologies like Hybrid , Agile and Linear . You’ll also learn how to become efficient.

CAPM ( Certified Associate in Project Management ) is another sought-after certification that PMI offers. CAPM is a globally recognized certification that shows prospective employers that you have a sound knowledge of project management fundamentals, scopes, schedules, cost control, resource and risk management, and more.

PRINCE2 vs PMP vs Agile

There are differences between PRINCE2, PMP and Agile methods. PMP (project management professional) certification is taught by the PMI (Project Management Institute) and is based on the PMBOK (project management body of knowledge). This certification is common in the U.S. PRINCE2 is owned by Axelos and is more popular in the U.K. and Europe.

Agile is a way of working rather than a certification. However, certifications are available for Agile methods such as kanban and Scrum , Scrumban, XP and more.

Final Thoughts: PRINCE2 for Managing Projects

The PRINCE2 method offers a fascinating way to manage projects. PRINCE2 forces everyone involved to ask questions, track every metric, double down on standards and work efficiently to minimize risk and cost and maximize time. PRINCE2 is versatile and can be used with linear project management methods like Waterfall and Agile methods like kanban.

If you’re looking for a highly structured project management methodology that won’t let your company and project management team leave any stone unturned, you might want to take a closer look at the PRINCE2 method. Are you interested in PRINCE2? Have you used it, or do you use the method now? Let us know in the comments, and as always, thanks for reading.

FAQ: Complete Guide to PRINCE2

They are not the same. PRINCE2 and PMP are different project management certifications.

The purpose of the PRINCE2 methodology is to set companies and agencies up for success by making those involved ask the who, what, when, where, how and why questions of every project.

PRINCE2 is a project management methodology that makes project leaders and stakeholders organize, plan, execute and revisit every part of every task multiple times to ensure that quality products are delivered to the customer.

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PRINCE2 Project Management

Of the many approaches to project management, the PRojects IN Controlled Environments (PRINCE2) methodology is one of the most versatile and widely implemented. This article provides an overview of PRINCE2 roles, principles, and methods, and describes how to apply them in different industries.

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What is PRINCE2?

PRINCE2 is a process-based project management methodology that involves dividing a project into manageable stages and tackling each stage with thorough planning, organization, and control. PRINCE2 is flexible enough for organizations to adapt it to various project types and sizes.

PRINCE2’s flexibility is one of its biggest benefits. It’s adaptable and integrates easily with other frameworks, such as Agile . Because of its global adoption over the last few decades, its terminology and methods are familiar and easily recognized across many industries.

A large group of collaborators developed PRINCE2 based on considerable practical knowledge and a proven track record of effectiveness. When implementing PRINCE2, clearly defined roles, careful planning, and strict viability standards improve risk management .

PRINCE2: Origins and principles.

The Central Computer and Telecommunications Agency (CCTA) in the United Kingdom developed PRINCE2’s predecessor, PRINCE, in 1989 to manage IT projects by the British government. In 1996, project management experts reviewed and modified the methodology for various industries and released it to the public as PRINCE2.

The following seven key principles lay the foundation for the methodology:

• Continually justify business : Projects must be viable. This means performing a cost assessment and clearly defining all benefits to justify the project’s viability. Organizations should discontinue nonviable projects and periodically reevaluate viable projects for continued justification.
• Learn from lessons : At the beginning of the project, gather and examine the information from previous project outcomes for lessons learned. As the project moves through the various stages, continue this examination as you learn new lessons.
• Define the organizational structure : Clearly define the organizational structure so everyone involved can see and understand their roles and responsibilities.
• Break down into stages : Break down the project into clearly defined stages, with each stage carefully planned and monitored. How stages break down may vary, but specific deliverables may indicate natural breaking points.
• Have an exception plan : The project manager generally does not intervene unless project metrics (cost, time, etc.) deviate outside of pre-established guidelines. This allows the team to operate autonomously and efficiently.
• Focus on quality : Emphasize the quality of deliverables or products instead of focusing on the process at the expense of the outcomes.
• Tailor to suit project needs : Because each project varies in scope and size, tailor the methodology to meet each project’s specific needs.

Major roles in PRINCE2 project management.

Implementing PRINCE2 successfully requires clearly defining roles and responsibilities. There are three major roles: the project board, the project manager, and the project team. Each tier plays a different part in the overall process:

Project board.

The representatives from three primary groups typically comprise the project board:

• Customer or executive : This role represents the person or company paying for the project and is typically the chair of the project board.
• Senior user : This is a representative of users of the project’s products and ensures that the users’ needs are clearly defined and met by the project.
• Senior supplier : This person acts as the expert who can advise what resources are needed to complete the project.

The project board collectively makes decisions about the initiation and implementation of the project, including selecting project managers. They are often responsible for project assurance and final decisions about how to resolve major issues.

Project manager.

The project manager is responsible for the overall project planning and overseeing the implementation of various project stages. They must assemble the teams needed for each stage, define roles within those teams, and work with the teams to set realistic goals and timelines.

Project managers ensure that projects stay within defined cost, time, and other metrics and report progress to the project board. They may also act as a change authority, considering and implementing changes to project plans as needed. However, they generally defer larger changes or decisions that will impact overall project goals to the project board.

Project team.

Individual project teams are responsible for carrying out tasks that generate the end product or deliverables. With the PRINCE2 methodology, teams operate with relative autonomy unless project metrics fall outside predetermined parameters and require manager intervention. Team managers provide regular updates to project managers and ensure assigned team members handle tasks smoothly.

The 7 key processes of PRINCE2.

PRINCE2 project implementation involves seven key processes outlining the work required for project completion. Breaking down the processes like this allows for better organization, planning, and project monitoring to elucidate intermediate goals and enable course correction as needed.

1—Starting the project.

Someone submits a project mandate, requesting the project and indicating project goals. Members of the project board and the project manager may gather information and prepare an initial plan outline.

For example, suppose a company’s IT department needs to replace companywide computers with more updated models. They may submit a project mandate describing why this is needed (to enable more streamlined work, reduce help tickets, and shore up IT security issues) and an initial cost estimate contrasted with costs associated with not performing the upgrade.

2—Directing the project.

The project board convenes to assess project justification. At this point, they may perform a cost-benefit analysis to determine the project’s viability. If deemed viable, the board then develops a more concrete project plan that the project manager further breaks down.

As an example, consider a toy company assessing the project of developing a new toy design. Part of assessing viability would include determining production costs, evaluating how moving resources toward the new product affects other product lines, and assessing potential market interest in the new product.

3—Initiating the project.

The process of project initiation is where the major project planning takes place. A project manager establishes project teams and team leaders, breaks down roles within each team, and specifies budgets and timelines to go along with each task. The project manager also establishes project metrics, procedures, and outcomes, and prepares necessary documentation. At the end of the project initiation, all project stages are well-defined and the project work is ready to begin.

For example, imagine a hospital initiates a project that involves a new streamlined check-in procedure. The project manager will need to determine which hospital departments these changes will affect, specify teams to design any necessary forms or tools for the new procedure, and pick teams to develop a plan for training employees on the new procedure. Indicate a timeline for rollout, considering how to smooth the transition, and specify metrics by which to assess outcomes.

4— Controlling stages.

At each project stage, the project manager assesses progress and intervenes as necessary if the project exceeds the predetermined tolerances. Team leaders may report problems or request changes to plans as needed, and the project manager is responsible for approving adjustments and bringing concerns to the attention of the project board.

Suppose an aerospace manufacturer has taken on the project of developing a new electronic component. Due to supply chain issues, they cannot easily source a part they planned on using in the design, and they have to start over. This gets reported to the project manager, who adjusts the timeline for that stage of development.

5—Managing delivery of the project.

While the project manager focuses on controlling project stages, team managers focus on direct execution of work and quality assurance of final project deliverables . They report results to the project manager, who consolidates information and reports to the project board.

As an example, imagine a food processing plant creates a new frozen vegetable medley as a product. Quality assurance of the product may involve focus group taste-testing and health and safety checks.

6—Managing stage boundaries.

After each stage, the organization assesses outcomes and product quality, extracts lessons learned, and adjusts plans as needed. Reviews occur at the team, project management, and project board levels. The board makes any final decisions about whether to move to the next stage or abandon or revise the project.

Imagine an electric company creating a department focused on setting up solar energy panels in a newly purchased plot of land. After completing a project stage where they evaluated panels from different suppliers, they discover that the overall cost-effectiveness of their venture is not likely to match initial hopes. They may abandon or put the plan on hold as a result.

7— Closing the project.

Once completing the project , the project manager ties up any loose ends. This may include creating documentation, including outcomes assessments or reports to plan and justify future project stages.

Putting PRINCE2 into practice.

The information presented in this article provides an overview of the PRINCE2 project methodology for professionals overseeing deliverables, including project management professionals or members of skillfully managed teams. Putting PRINCE2 into practice may involve an initial investment in training or adapting the overall ideas into your current practices as you see fit.

Value of Teaching PRINCE2 Project Management Methodology

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• Angela Lecomber 2  

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Introduction

As project management evolves as a field of practice, companies are now realizing that their entire business, including most of the routine activities, can be regarded as a series of projects. Simply stated, businesses are managing their transformations by projects.

There are a number of accepted approaches to project management, the Project Management Body of Knowledge (PMBOK) and Projects in Controlled Environments Version 2 (PRINCE2) being two of the most important. Recently there has been considerable interest in Agile Project Management.

Joslin and Muller ( 2015 ) found that there was a positive relationship between the use of project management methodologies such as PMBOK and PRINCE2 and project success. These are described as project management “best practices” by the respective “owners” which are the Project Management Institute (PMI) and AXELOS, respectively.

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Lecomber, A. (2019). Value of Teaching PRINCE2 Project Management Methodology. In: Tatnall, A. (eds) Encyclopedia of Education and Information Technologies. Springer, Cham. https://doi.org/10.1007/978-3-319-60013-0_199-1

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Exploring the different types of projects suitable for PRINCE2 and PRINCE2 Agile®

PRINCE2® is one of the most widely used project management methodologies globally. It is a structured approach that can be adapted to a vast range of project types. As project managers face an endless diversity of projects from complex programmes to research projects, they need to follow a management process that can adapt to various requirements and scenarios.

PRINCE2 works best when implemented on long-term, complex projects with multiple interdependent activities, as it can be used to break the project into manageable stages.

Also, project managers that often manage projects with a high degree of complexity and risk, or deal with multiple stakeholders, will benefit from the methodology which improves team collaboration, provides a mechanism for continuous improvement, ensures focus on key objectives, and encourages continual progress monitoring.

Which projects are better suited to PRINCE2 Agile®?

However, for projects where the scope and requirements are more volatile or require a degree of flexibility, PRINCE2 Agile may be more appropriate. This approach combines the core principles of the PRINCE2 methodology with the flexibility of agile project management. For example, given the constant advancements in technology IT and software management projects demand an agility which is complimented by PRINCE2 Agile.

Agile methodologies are better suited to projects with uncertain elements or where product backlogs are continually changing. This hybrid methodology allows project managers to use an incremental and iterative approach to develop and deliver the project, it promotes flexibility, regular review and improving the project continuously.

Which types of projects would benefit from PRINCE2 and/or PRINCE2 Agile?

The PRINCE2 methodology provides a phased approach to project management that is designed to help deliver projects on time and within budget while maintaining quality.

Projects that can be executed successfully using PRINCE2 include:

• Construction projects
• Marketing campaigns
• Organisational changes
• Product development
• Product launches
• Software and hardware developments
• Digital transformations
• Research and development (R&D) projects
• Business process improvements
• And much more…

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