Project Management guide · Project management fundamentals
What Is PRINCE2? Principles, Practices and Processes
PRINCE2 (PRojects IN Controlled Environments) is a structured, process-based project management method. Originating with the UK government and now owned by PeopleCert, it is widely used in the UK, Europe, Australia and the public sector worldwide.
Key takeaways
- PRINCE2 is a stage-based method focused on governance.
- It has seven principles, seven practices and seven processes.
- Management by exception keeps the board focused on key decisions.
Seven principles
- Ensure continued business justification: the project must remain worthwhile.
- Learn from experience.
- Define roles, responsibilities and relationships.
- Manage by stages: plan, monitor and control stage by stage.
- Manage by exception: set tolerances and escalate only when they will be exceeded.
- Focus on products: define and deliver products that meet quality criteria.
- Tailor to suit the project.
Seven practices
Called themes in earlier editions, these are aspects to manage continually: business case, organising, plans, quality, risk, issues and progress.
Seven processes
| Process | Purpose |
|---|---|
| Starting up a project | Check the project is viable and worthwhile |
| Directing a project | Project board makes key decisions |
| Initiating a project | Establish solid foundations and plans |
| Controlling a stage | Day-to-day management by the project manager |
| Managing product delivery | Team managers deliver work packages |
| Managing a stage boundary | Review the stage and plan the next |
| Closing a project | Confirm acceptance and close |
Key roles
- Project board: executive, senior user and senior supplier; accountable for success.
- Project manager: runs the project day to day within tolerances.
- Team manager: leads delivery of specialist products.
- Project assurance and project support.
Certifications
PeopleCert offers PRINCE2 Foundation and Practitioner certifications, and PRINCE2 Agile for combining PRINCE2 with Agile delivery. See PRINCE2 vs Agile.
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Frequently asked questions
Is PRINCE2 better than PMP?
They are different: PRINCE2 is a methodology; PMP certifies knowledge of PMI's standard and broader practice. Choice depends on your region and industry.
What is management by exception in PRINCE2?
The project board sets tolerances; the project manager handles everything within them and escalates only when a tolerance is forecast to be exceeded.
What does PRINCE2 stand for?
PRojects IN Controlled Environments.
Who owns PRINCE2?
PRINCE2 originated with the UK government and is now owned by PeopleCert, which runs its certifications.
What are the seven processes of PRINCE2?
Starting up a project, directing a project, initiating a project, controlling a stage, managing product delivery, managing a stage boundary and closing a project.
What are the PRINCE2 practices?
Business case, organising, plans, quality, risk, issues and progress. Earlier editions called them themes.
What is a PRINCE2 project board?
The group accountable for the project's success, made up of the executive, senior user and senior supplier.
What is the difference between PRINCE2 Foundation and Practitioner?
Foundation tests knowledge of the method; Practitioner tests the ability to apply and tailor it to a project scenario.
Is PRINCE2 Agile?
Classic PRINCE2 is not Agile, but PRINCE2 Agile shows how to run Agile delivery within PRINCE2 governance. See PRINCE2 vs Agile.
What is a PRINCE2 stage?
A section of the project with its own plan, approved by the project board before it starts. The project is managed stage by stage.
Where is PRINCE2 most used?
In the UK, Europe, Australia and the public sector, where clear governance and accountability are valued.