PRINCE2

PRINCE2 (an acronym for PRojects IN a Con-trolled Environment, version 2) is a project manage-ment methodology. The methodology encompasses thehigh level management, control and organisation of aproject, but not lower level activities such as scheduling.PRINCE2 is also used to refer to the training and accredi-tation of authorised practitioners of the methodology whomust undertake accredited qualifications to obtain certi-fication.

1 History

PRINCE2 derives from an earlier method calledPROMPT II (Project Resource Organisation Manage-ment Planning Techniques.) In 1989 the Central Com-puter and Telecommunications Agency (CCTA) adopteda version of PROMPT II as a UK Government stan-dard for information systems (IT) project management.They gave it the name 'PRINCE', which originally stoodfor 'PR(OMPT II )IN( the )C(CTA )E(nvironment).PRINCE was renamed in a Civil service competitionas an acronym for “PRojects IN Controlled Environ-ments”. However, it soon became regularly applied out-side the purely IT environment, both in UK governmentand in the private sector around the world.[1] PRINCE2was released in 1996 as a generic project managementmethod.[2] PRINCE2 has become increasingly popularand is now a de facto standard for project management inmany UK government departments and across the UnitedNations system.[3] In the 2009 revision, the acronym waschanged to mean 'Projects IN a Controlled Environment'.In July 2013, ownership of the rights to PRINCE2 wastransferred from HM Cabinet Office to AXELOS Ltd, ajoint venture between the Cabinet Office and Capita plc.Since 2006, the method has been revised. It launchedas "PRINCE2:2009 Refresh” in 2009. The name“PRINCE2” (instead of “PRINCE3” or similar) remainsto indicate that the method remains faithful to its prin-ciples. Nevertheless, it is a fundamental revision of themethod from 1996 to adapt it to the changed businessenvironment, to make the method simpler and lighter, toaddress current weaknesses or misunderstandings, and tobetter integrate it with other AXELOS Global Best Prac-tice methods (ITIL, P3O, P3M3, MSP, M_o_R etc.).PRINCE2 is part of a set of Best Practice products and isclosely aligned with a sister product for the managementof programmes

1. 'Managing Successful Projects with PRINCE2 -2009 Edition',[4]

2. 'Managing Successful Programmes’ 1999, fourthedition in 2011.

Both the Foundation and Practitioner Examinationsare based on the 2009 revision 'Managing SuccessfulProjects’ manual

2 Overview of the method

PRINCE2 is a process-driven project managementmethodology.[5] PRINCE2 is based on seven principles,seven themes and seven processes.The seven principles are: Continued business justifica-tion, learn from experience, defined roles and responsi-bilities, manage by stages, manage by exception, focuson products and tailored to suit the project environment;The seven themes are: business case, organization, qual-ity, plans, risk, change and progress;The principles and themes come into play in the sevenprocesses:

2.1 Starting up a project (SU)

In this process the project team is appointed and a projectbrief is produced.

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2 2 OVERVIEW OF THE METHOD

In addition the overall approach to be taken is decided andthe next stage (initiation) of the project is planned. Oncethis work is done, the project board is asked to authorizethat stage.Key activities include: Forming the project board; ap-pointing an executive and a project manager; designingand appointing a project management team; preparing aproject brief; defining the project approach; preparing anoutline business case, consulting the Lessons Logs of pre-vious projects; and planning the next stage (initiation).

2.2 Initiating a project (IP)

This process builds on the work of the start up process,and the project brief is used to prepare other managementdocuments that will be needed during the project. Forexample, the approach taken to ensure quality throughoutthe project is agreed together with the overall approachto controlling the project itself (project controls). Projectfiles are also created, as is an overall plan for the project.The business case is completed. A plan for the next stageof the project is also created. The resultant informationcan be put before the project board for them to authorizethe project itself.Key activities include: planning quality; planning aproject; refining the business case and risks; setting upproject controls; setting up project files; and assembling aProject Initiation Documentation.

2.3 Directing a project (DP)

This process dictates how the Project Board (which com-prises such roles as the executive or sponsor) should con-trol the overall project. As mentioned above, the projectboard must authorise the initiation stage and also autho-rize the project. Directing a Project also dictates how theproject board should authorize a stage plan, including anyexception plan that replaces an existing stage plan due toslippage or other unforeseen circumstances. Also cov-ered is the way in which the board can give ad hoc direc-tion to a project and the way in which the project shouldbe closed down.Key activities include: authorising initiation; authorisinga project; authorising a stage or exception plan; giving adhoc direction; and confirming project closure.

2.4 Controlling a stage (CS)

PRINCE2 suggests that projects should be broken downinto stages and this process dictates how each individ-ual stage should be controlled. Most fundamentally thisincludes the way in which work packages are autho-rised and received. It also specifies the way in whichprogress should be monitored and how the highlights ofthe progress should be reported to the project board. A

means for capturing and assessing project issues is sug-gested together with the way in which corrective actionshould be taken. It also lays down the method by whichcertain project issues should be escalated to the projectboard.Key activities include: authorising work packages; as-sessing progress; capturing and examining project issues;monitoring and controlling risks; reviewing stage status;reporting highlights; taking corrective action; escalatingproject issues; and receiving completed work packages.

2.5 Managing stage boundaries (SB)

Main article: Managing stage boundaries

Whereas the Controlling a Stage process dictates whatshould be done within a stage, Managing Stage Bound-aries (SB) dictates what should be done towards the end ofa stage. Most obviously, the next stage should be plannedand the overall project plan, risk register and businesscase amended as necessary. The process also covers whatshould be done for a stage that has gone outside its toler-ance levels. Finally, the process dictates how the end ofthe stage should be reported.Key activities include: planning a stage; updating aproject plan; updating a project business case; updatingthe risk register; reporting stage end; and producing anexception plan.Best practice includes the project board, including users,reviewing progress and approving any changes to theproject plan at the boundary. This review does not in-clude team managers or team workers because it wastestheir time; and the project manager should be competentenough to present their work directly to the board.

2.6 Managing product delivery (MP)

The Managing product delivery process has the purposeof controlling the link between the Project Manager andthe Team Manager(s) by placing formal requirements onaccepting, executing and delivering project work.[6] TheObjectives of theManaging Product Delivery process are:

• To ensure that work on products allocated to theteam is authorised and agreed,

• Team Manager(s), team members and suppliers areclear as to what is to be produced and what is theexpected effort, cost, timescales and quality,

• The planned products are delivered to expectationsand within tolerance,

• Accurate progress information is provided to theProject Manager at an agreed frequency to ensurethat expectations are managed.

3.4 Issues register 3

The key activities are: Accept a work package, execute awork package and deliver a work package.

2.7 Closing a project (CP)

This covers the things that should be done at the end of aproject. The project should be formally de-commissioned(and resources freed up for allocation to other activities),follow-on actions should be identified and the project it-self be formally evaluated.Key activities include: decommissioning a project; iden-tifying follow-on actions; preparing a benefits review planand project evaluation review. The benefits review planindicates a time when the benefits of the end product maybe measured, how and what resources will be required.

3 Management products

PRINCE2 maintains several management productsthroughout the projects, which may be formal paperdocuments, word processor files, data in specialisedPRINCE2 software, informal notes by managers, or evencommunicated orally. “Registers” are intended to bemore formal than “logs”. The following are examples ofthe PRINCE2 management products.

3.1 Project brief

A short explanation of the need for the project, the man-agement team, the structure and goals.

3.2 Risk register

See also: Risk register

The risk register is a table which contains the risks thatmay threaten the goal of the project. Risks are catego-rized, named and assigned a risk number. Then, each riskgets a probability score and an impact score. The multi-plication of these two results in the risk score. The risksare sorted on descending risk score in order to show thepriority of a risk. Each risk is also assigned an owner, aprecaution and a response-action in case the risk occurs.

3.3 Quality register

See also: Quality control

This register contains details of all planned quality activ-ities, dates and personnel involved. It will be updated toshow the current status of all quality checking activities.It shows whether the delivered products are complete,

have met their quality criteria and the agreed processeshave been observed.

3.4 Issues register

A set of notes about change requests, problems, com-plaints and concerns sent by all project members.

3.5 Lessons log

A set of notes of lessons learned (often the hard way)which may be useful to future projects.

3.6 Daily log

A diary about the project written by the project manager,like a ship’s log.

4 Core principles

Much of the methods above are derived from seven coreprinciples:

4.1 Continued business justification

The Business Case is the most important document, andis updated at every Stage of the project to ensure that theproject is still viable. Early termination can occur if thisceases to be the case. At lower levels, use of time andresources should be justified, such as the need to haveexpensive meetings. (e.g. it is good practice to begin eachmeeting with a sentence about what its goal is—and ifsuch a statement is hard to find then the meeting may notbe necessary.)

4.2 Manage by exception

Regular meetings, especially the dreaded “weekly teammeetings” are considered inefficient and unnecessary. In-stead, work packages are assigned by Team Managersto Team Members including deliverables with time andquality tolerances. If work progresses smoothly then theworkers have no need to interfere with the Team Man-ager’s time. Only if something deviated from the planis communication and management required from them.Some Team Managers may request short status updatessuch as weekly emails or informal chats, to monitor forany exceptions, but no formal management is requiredunless an exception occurs.

4 6 CERTIFICATIONS

4.3 Learn from experience

Each project maintains a Lessons Log and projects shouldcontinually refer to their own and to previous and concur-rent projects’ Lessons Logs to avoid reinventing wheels.

4.4 Defined roles and responsibilities

Roles are separated from individuals, who may take onmultiple roles or share a role. By naming and definingroles in the PRINCE2 standard it becomes clear exactlywho has what responsibility and decision making pow-ers, avoiding arguments. Roles in PRINCE2 are struc-tured in four levels (Corporate or programme manage-ment, Project Board, Project Manager level and Teamlevel). The project manager level includes the projectmanager but can also include some optional roles like thequality assurance authority.

4.5 Manage by stages

The project is planned and controlled on a stage by stagebasis. This includes updating the Business Case, risks,overall plan, and detailed next-stage plan after each stagein the light of new evidence.

4.6 Focus on products

Each work package is defined by one or more deliverableproducts, preferably with tolerances to time, cost, scopeand quality quantified in advance. Even management ac-tivities such as stage planning are defined by their finaloutput, such as a physical report containing the new stageplan. This allows all parties to clearly specify what is re-quired, and to allocate responsibility for delivering andcontrolling it.

4.7 Tailoring

PRINCE2 should not be applied blindly in a dogmatic,bureaucratic form. (This would lead to wasted time onpaperwork and create false senses of security). Rather itis defined to be a method in need of tailoring to specificprojects. Typical adjustments include the replacementof deliverable reports and project documents by informal(verbal or email) equivalents, alterations to the structuresof the project board and management team to reflect thegoals of the project (e.g. replace majority board voting bysole Executive decisions in cases where the project’s goalis to serve only the Executive’s interest rather than usersor suppliers); assignment of multiple roles to individualson smaller projects; and increased emphasis on stage re-planning for research-intensive projects which may needto change directions as new findings are delivered. A typi-cal criticism of PRINCE2 is that the deliverable structure

can lead to focus on producing deliverables for their ownsake, to “tick the boxes” rather than do more useful work.If this is occurring, it demonstrates a failure of manage-ment to apply PRINCE2 and tailoring correctly.

5 Integration with other tech-niques

PRINCE2 describes only high-level aspects of projectmanagement and leaves the choice of management toolsand frameworks within its tasks to the task managers. Itspecifically mentions the following:

• Product based planning

• Change control

• Quality review technique

and in passing mentions as possible tools,

• Gantt charts

• PERT charts

• critical path analysis

A version of PRINCE2 is being developed to man-age projects that use Agile software developmenttechniques.[7]

5.1 Quality review technique

See also: Quality assurance

The quality review technique ensures a project’s productsare of the required standard (i.e. meet defined qualitycriteria). This takes place in a quality review meeting,which identifies errors in the product. The quality reviewmeeting will not attempt to solve the problems it iden-tifies. The meeting brings together people who have aninterest in the project’s outputs (or products) and peopleon the project team able to address issues identified.There are defined roles including a Chair, Presenter, Re-viewer(s) and Scribe.

6 Certifications

PRINCE2 certification requires passing the requisite ex-aminations or assessment.[8]

6.5 Examinations and training 5

6.1 PRINCE2 Foundation

The lower level Foundation exam is a one-hour, multi-ple choice exam which tests candidate’s knowledge of themethod. The exam consists of 75 questions, 5 of whichare trial questions which do not carry a mark. Of theremaining 70 questions which do carry a mark, the can-didate needs to score 50% or more (i.e. 35 or more) topass.

6.2 PRINCE2 Practitioner

The higher level Practitioner exam lasts for 2.5 hours, andis a more complex multiple choice exam which tests can-didate’s ability to apply the method to a simple projectscenario. The paper consists of 8 topics, with 10 ques-tions per topic making a total of 80marks. The pass markis 55%, which is 44 marks or more. Passing the Foun-dation exam is a pre-requisite for sitting the Practitionerexam.Candidates who have passed the PRINCE2 Practitionerexam may call themselves a Registered PRINCE2 Prac-titioner for 5 years after which they must pass a Re-registration examination every 5 years to maintain theirRegistered Practitioner status. The Re-registration examis a one-hour examwith 3 topics each containing 10 ques-tions. The pass mark is 55%, which means candidatesmust score 17 marks or more to pass.

6.3 PRINCE2 Professional

In 2012 the APM Group, accreditation body at thetime, introduced a higher level qualification known as thePRINCE2 Professional qualification which is awardedfollowing successful completion of a 2.5 day residentialassessment involving group exercises and activities. Theassessment criteria involve more general capabilities suchas team working, which is not a specific PRINCE2 capa-bility. Passing the Practitioner exam is a pre-requisite forsitting the Professional assessment.

6.4 PRINCE2 Agile Practitioner

Main article: PRINCE2 Agile

This certification is based on a new form of PRINCE2that is tailored to be used in Agile environments and ex-plained in the official PRINCE2 Agile manual. BeingPRINCE2 Practitioner certified is a prerequisite for thisexamination.The exam is 2.5 hours, open book, and with 50 multiplechoice, objective questions. The passing score is 60%.

6.5 Examinations and training

Examinations can be sat by candidates who attend anaccredited training course, take accredited elearningcourses, and those who self-study. The exam vouch-ers are usually bought from the accredited training or-ganizations, while it’s also possible to buy them directlyfrom some of the examination institutes. For those takingclassroom courses, usually a paper-based exam is taken atthe last day of the course. Others can take the exam on-line, through a proctored system, or schedule it in a testcenter.

6.6 Register

The APM Group publishes a successful candidate reg-ister which can be searched on the web.[9] The registerrecords the details of candidates who have sat PRINCE2examinations.

6.7 Trainers

Trainers must be re-accredited every 3 years and undergoa surveillance check (either in the form of a visit by an as-sessor to a training course or a telephone interview whichassesses their professional knowledge and training capa-bility) every 12 months.[10]

6.8 Exemptions

Qualified PRINCE2 Practitioners who go on to study forthe APMP qualification of the Association for ProjectManagement are exempt from certain topics of the syl-labus that are covered in the PRINCE2 Practitionerqualification.[11]

7 Scalability

Project management is a complex discipline and it wouldbe wrong to assume that blind application of PRINCE2will result in a successful project. By the same token, itwould be wrong to assume that every aspect of PRINCE2will be applicable to every project. For this reason ev-ery process has a note on scalability. This provides guid-ance to the project manager (and others involved in theproject) as to how much of the process to apply. The pos-itive aspect of this is that PRINCE2 can be tailored tothe needs of a particular project. The negative aspect isthat many of the essential elements of PRINCE2 can beomitted sometimes resulting in a PINO project – Princein Name Only. In order to counter this, APMGroup havedefined the concept of a PRINCE2 Maturity Model.[12]

6 12 EXTERNAL LINKS

8 Adoption

PRINCE2, as a method and a certification, is adoptedin many countries worldwide, including the UK, westernEuropean countries, and Australia.[13]

The PMI and its certification, the PMP, is popular in theUK, USA and the rest of the world.[14] Since the PMI’sPMBOK (Project Management Body of Knowledge) is acollection of recognized good practices[15] and PRINCE2is a methodology, these two certifications are suggested tocomplement each other, as pointed out by the PRINCE2official website.[16]

9 Advantages and pitfalls

PRINCE2 is a structured approach to project manage-ment. It provides a method for managing projects withina clearly defined framework. PRINCE2 describes pro-cedures to coordinate people and activities in a project,how to design and supervise the project, and what to doif the project has to be adjusted if it doesn’t develop asplanned. In the method each process is specified with itskey inputs and outputs and with specific goals and activ-ities to be carried out, which gives an automatic controlof any deviations from the plan.Divided into manageable stages, the method enables anefficient control of resources. On the basis of close mon-itoring the project can be carried out in a controlled andorganised way. The various management roles and re-sponsibilities involved in a project are fully described andare adaptable to suit the complexity of the project andskills of the organisation.PRINCE2 is sometimes considered inappropriate forsmall projects or where requirements are expected tochange, due to the work required in creating and main-taining documents, logs and lists. However, AXELOSclaims that the methodology is scalable and can be tai-lored to suit the specific requirements and constraints ofthe project and the environment.[17]

10 See also• Comparison of project-management software

• Gantt chart

• List of project management topics

• Agile software development

• Other qualification-awarding bodies in project man-agement:

• APM (Association for Project Management)• IPMA (International Project Management As-sociation)

• PMI (Project Management Institute)

11 References[1] OGC - PRINCE2 - News

[2] “OGC brings its shining quartet back into the limelight”(Press release). Office of Government Commerce. 2005-12-14.

[3] Official PRINCE2 website

[4] OGC (Office of Government Commerce) (2009). Man-aging Successful Projects with PRINCE2 (2009 ed.). TSO(The Stationery Office). ISBN 978-0-11-331059-3.

[5] About PRINCE2

[6] PRINCE2 manual

[7] “PRINCE2® Agile”. www.axelos.com. Axelos. Re-trieved 6 March 2015.

[8] - PRINCE2 certification

[9] - PRINCE2 successful candidate register

[10] - PRINCE2 accreditation scheme

[11] - APMP for PRINCE2 Practitioners

[12] PRINCE2 Maturity Model

[13] PRINCE2® - PRojects IN Controlled Environments -Consulting Organisations List

[14] PMI Annual Report | Project Management Institute

[15] “PMBOK® Guide and Standards”. Project ManagementInstitute. Retrieved 13 April 2015.

[16] PRINCE2 - PRojects IN Controlled Environments -PRINCE2 in Comparison - PRINCE2 Advantages

[17] OGC Best Management Practice - PRINCE2

12 External links• Official website

• Guidelines for Managing Projects (fully consistentwith PRINCE2) from the UK Department for Busi-ness, Enterprise and Regulatory Reform (BERR)

• PRINCE2 wiki

• PRINCE2 Agile wiki

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13 Text and image sources, contributors, and licenses

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