prince2 project management methodology example

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• Project management |
• 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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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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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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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

Free project management software

Tailor your workflow to suit your needs—let the tool work for you. Try Plaky.

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.

Keep your work transparent. Monitor and review projects with ease. Try Plaky.

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.

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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 Project Management Method Explained

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What is PRINCE2®?

PRINCE2® is a project management method. It’s structured, and experience-based, created from the lived experience of thousands of project managers and successful projects.

PRINCE2® stands for Projects IN a Controlled Environment (Version 2). And it’s not spelled PRINCE TWO!

It’s a customizable way of managing and controlling the work. It’s tailorable and suitable for projects of all sizes, large and small.

I took my first Practitioner course in 2004.

Who is PRINCE2® for?

PRINCE2® works in a huge number of industries and domains. As a project manager , I have used it in financial services, and to a lesser degree, a modified version in a healthcare setting. It’s a predictive methodology, although PRINCE2 Agile ® allows for agile frameworks.

Because PRINCE2® is a broad-brush approach, it doesn’t cover technical processes or specific techniques, but it will fit alongside them.

The History of PRINCE2®

PRINCE2® is part of the best practice guidance that came out of the UK Office of Government Commerce.

It started life as the PROMPT methodology, created in a private UK company back in the 1970s. A British government agency, the Central Computer and Telecommunications Agency, licensed it for use in government IT projects back in 1979.

It was renamed PRINCE.

PRINCE2® was released in 1996 and had major updates in 2009 and 2017. The most recent major update came in 2023.

I was asked to be one of the reviewers of the PRINCE2 7 manual, so I am very familiar with the content and changes since the last edition.

The PRINCE2 method is something that was used mainly in public sector UK projects, but quickly got picked up by the private sector and spread throughout Europe and the rest of the world. Because it works. Today, it is used by thousands of practitioners in hundreds of countries.

PRINCE2 Agile ® came along in 2018 to enable PRINCE2® to work with agile concepts like timeboxing and Kanban .

The 5 elements of PRINCE2

There are 5 integrated elements of PRINCE2. These are:

• People (new for the 7th edition, there is a whole new chapter which is long overdue in my view)
• Practices (this section used to be called Themes, if you are familiar with the 6th edition)
• Project context (which is where we talk about the business environment and tailoring).

PRINCE2 core principles

The 7 core principles in PRINCE2® project management are the ‘guiding obligations’ to ensure that critical areas for success are constantly front of mind. They are:

• Ensure continued business justification
• Learn from experience
• Define roles, responsibilities and relationships
• Manage by exception
• Manage by stages
• Focus on products
• Tailor to suit the project.

Let’s have a quick look at these best practices.

1. Ensure continued business justification

A PRINCE2® project needs a business case. There should be a point to doing any new project: there should be some business driver to doing the work.

And that business justification needs to last throughout the project. You should keep checking in, for example at the end of each stage of the project, to make sure that the work is still viable. Ideally, you’ll be able to achieve the benefits but sometimes things happen to make that difficult. In those cases, you might want to recommend the project is stopped.

2. Learn from experience

There is a focus in PRINCE2® on learning from experience. You should look at what happened on past projects because that helps mitigate risk on your current project.

Lessons learned isn’t something you do once. PRINCE2® encourages you to dig into lessons learned all through the project life cycle to help you make better choices. Document lessons learned for future projects.

3. Define roles, responsibilities and relationships

There are defined roles and responsibilities in PRINCE2® projects. There are 3 main stakeholders :

• Sponsor : the business sponsor who make sure the project delivers the right thing
• Users: people who use the end result and/or receive the benefit
• Suppliers: people or companies that provide the resources to get the project done.

The default roles are:

• The project board , made up of the executive (sponsor), senior user (user rep) and senior supplier (supplier rep)
• Project manager
• Project support
• Project assurance
• Change authority
• Team manager

That’s it. All the team members fit into one of those roles, although it is possible to tailor the structure to suit your environment.

The relationships part of this principle’s title is all about the project ecosystem and how soft power and networks influence the way work gets done.

4. Manage by exception

I love this principle. It means you have boundaries and tolerances set for your role as the PRINCE2® project manager, and you can operate within those boundaries. If you go out of those, there is an exception, and you escalate or get management input as necessary.

Management by exception works at every level and relies on the project team being trusted to do their job. When that happens, the sponsor and project board only need a regular report at the prescribed times.

This avoids micromanaging and builds trust in the team.

5. Manage by stages

PRINCE2® delivers the work in stages. The project manager and team break down the work into chunks called management stages.

There’s a process to guide work through the stages so there is adequate control at every point.

At the end of a stage, the project board decides whether the project is still viable and whether it should move on.

6. Focus on products

The method has a focus on products, which means you create a product description so that everyone knows what the project is creating. It’s a way to ensure expectations are managed and all stakeholders are on the same page.

Products can be defined in work packages. There’s normally some documentation that lists out what the products are so everyone understands what is being delivered.

7. Tailor to suit the project

The final principle is that PRINCE2® should be tailored to the environment. You can tailor to fit the project’s:

• Environment
• Team culture
• Complexity.

Tweak project controls to make the whole thing work for your situation.

What’s missing from PRINCE2® (thankfully) is the detailed guidance on ‘how’. For example, it talks about creating a schedule, but doesn’t mandate how to do that. You can use critical path scheduling, a Gantt chart, full on earned value management for schedule control, or some sticky notes on the wall. PRINCE2® won’t beat you up for choosing the right scheduling approach for your environment.

PRINCE2® practices

There are 7 practices in PRINCE2®. Let’s look at these.

1. Business case

The business case shows up in the principles as well – that’s how it important it is. It’s probably the most important one of the management products (that’s my view anyway: in the manual, they all have the same importance).

The business case ensures that the project is worthwhile and aligns to business goals. It also links back to performance targets. There is a new performance target of sustainability in the 2023 7th edition, which requires having a sustainability management approach in place for the project.

Finally, the business case empowers the project manager to recommend the project is stopped if the business benefits won’t be realized.

2. Organizing

This relates to the project organization: roles and responsibilities, the team, and the management set up for the project.

It’s the practice that enables the project leadership, effective communication, and team empowerment. It also covers organizational design and development.

PRINCE2® guides you towards creating plans that answer the questions stakeholders want to know: What are we doing?

• How are we doing it?
• How much will it cost?
• When will it be ready?

The plans involved in PRINCE2® are:

• The project plan
• The stage plan
• The exception plan
• The team plan.

PRINCE2® talks a lot about quality . It sets out how to define product quality, how to measure it and the process for controlling it. This section also covers the idea of having a product register to track what is being created.

When I did my PRINCE2® course, this section was really valuable because quality is theoretically understood, but not always acted on at work. This practice helped me understand how to create a quality focus that wasn’t all about simply writing a quality plan .

Risk management is a core practice across many project management methods, and PRINCE2® gives you a practical approach to putting it front and center.

PRINCE2® fits in with the Management of Risk® guidance, also from Axelos. The risk method draws on that so the whole family of methods work together. It provides an approach to do risk assessment and then plan management actions to ensure the risk is adequately addressed. You’ll record your risks is a risk log.

This used to be the theme of Change, but PRINCE2 uses the terminology of ‘issue’ to mean anything that affects the project, and that could be a problem (i.e. an issue), an ‘off-specification’ defect or a change. Often issues lead to changes anyway and there is a similar process of analyzing and decision-making that we follow for both.

That said, change management is a big thing in project management. This relates to the authorization of change requests, not organizational change management (user adoption, training, etc).

There’s a whole process to follow that allows changes to be proposed, analyzed and acted on as necessary. And of course we have to push issues through a process that allows the project team to address them as well.

7. Progress

What’s the point of a project if not to make progress towards delivering the solution? You manage the project’s progress actively to ensure everything goes to plan.

The progress practice helps you control the project. This practice talks about having decent project reporting, tracking and monitoring performance, tolerances , issues, changes and risks, knowing when to escalate and being able to deal with deviations.

PRINCE2® Processes

People tend to think of PRINCE2® as quite a process-heavy method, and when I first did my exam, I felt the same. However, there is a lot of emphasis on tailoring, and the latest version is very flexible.

The processes are really not that complicated to understand or to do, and they are simply about having enough governance to make sure the project is properly under control. You will find them very intuitive once you get going and understand the jargon .

The core processes in PRINCE2® cover the whole life cycle and are:

Starting up a project

Directing a project, initiating a project, controlling a stage, managing product delivery, managing a stage boundary.

• Closing a project.

This process looks at whether the project is worthwhile and viable. The project brief gets created and the project board decide whether to go ahead.

Directing a project had a whole separate PRINCE2® book in the 6th edition, and I wonder whether there will be a new guide for project sponsors released in due course. Directing gets a process of its own. It’s the process that the sponsor and project board go through to make decisions and provide that governance layer.

It’s the activities that provide the parallel management and steering level that run alongside the work the project manager is leading.

Once the project passes through the Start up phase, you move into initiating. This is where you dig into the work that needs to be done and you start planning.

There’s quite a lot of documentation that PRINCE2® suggests you create during this stage because the plan is created and you decide how to do risk management, communications, project controls, change control, quality and more.

This process helps you monitor and control the work throughout the stage. It’s the day-to-day effective project management that falls into this process.

You review progress, monitor that against the baseline you set and correct any deviations.

This process is what you use when you are ready to complete a product delivery. As you can imagine, these processes often overlap and happen in parallel, so PRINCE2® doesn’t exactly offer you a start-to-finish step-by-step approach. It’s far more flexible than that.

You might use this process several times throughout the life cycle as you need to get stakeholders to accept products as you go.

Stage boundaries are the points at which you move the project on. This is the process you use moving between project stages. It’s basically the approval for moving on to the next chunk of the work.

The project board review progress so far, look at the business justification and make the call as to whether the work continues.

Closing a project

Finally, there is a process around closing a project . It covers how to wrap up the work and ensure the loose ends are tidied away, making sure the products are delivered to the required standard and handed over effectively to the users.

It covers verification of the product, making sure the required support is in place and ensuring open actions and issues are addressed. You’ll also review the project’s performance and assess the benefits.

Becoming PRINCE2® certified

There are two levels of PRINCE2® certification: Foundation and Practitioner.

There is the ‘ordinary’ flavor of PRINCE2® and then there is also Agile Foundation and Agile Practitioner.

You’ll need to choose a training course and study with an accredited provider. I recommend studying with a PRINCE2® exam simulator because taking practice questions are key to not flaking out in the exam. I did loads of past papers when I took it, and they really helped. Once you re ready, take the exam(s).

Typically, the full Foundation/Practitioner certification course is 5 days, including both exams. There are no prerequisites for enrolling for the Foundation course. You can also take the course online with plenty of different format options.

However, I would say that some project management experience will make it easier for you to do the training and get through the exam, because it is intensive.

The course I took (and the format most in-person courses take) is to do the knowledge-led content over 2.5 days and then take the Foundation certificate exam on the Wednesday afternoon. Then spend Thursday and Friday morning on Practitioner content and exam prep, with the Practitioner exam on the Friday afternoon.

In other words, you can get PRINCE2® certified in a week with no prerequisites, which makes it a good option for people who don’t have years of experience.

You will need to maintain your certificate with a subscription service or take the exam again when it expires.

Ready to get certified? Check out the AXELOS-accredited PRINCE2® Practitioner course led by Frank Turley offered by Management Plaza.

A comprehensive and accredited PRINCE2® Practitioner online course, including exam voucher and simulator access.

PRINCE2® is one of the project management methodologies open to you. It’s a flexible, effective method for leading an entire project. Where will PRINCE2® take you?

Project manager, author, mentor

Elizabeth Harrin is a Fellow of the Association for Project Management in the UK. She holds degrees from the University of York and Roehampton University, and several project management certifications including APM PMQ. She first took her PRINCE2 Practitioner exam in 2004 and has worked extensively in project delivery for over 20 years. Elizabeth is also the founder of the Project Management Rebels community, a mentoring group for professionals. She's written several books for project managers including Managing Multiple Projects .

What Is PRINCE2 Methodology?

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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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Bring your bright ideas to life.

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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.

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