What is PRINCE2®? Project Management Guide

Navigating the world of Project Management can be tricky, with the risk of projects veering off course and budgets ballooning. But fear not, PRINCE2 is here to save the day! It’s a game-changer that brings structure and clarity to your projects. Curious about what is PRINCE2? Let’s unravel its mysteries together and discover how it can transform your Project Management Experience.  

Read this blog to learn What is PRINCE2, its benefits, its key principles, and how it works. Let's dive in deeper to learn more!

Table of Contents

1) What is PRINCE2? 

2) History of PRINCE2 

3) How does PRINCE2 Work? 

4) Seven principles of PRINCE2  

5) Seven work phases of the PRINCE2 process 

6) PRINCE2 Benefits 

7)  PRINCE2 Certification 

8)  PRINCE2 vs PMP 

9)  Become an effective Project Manager with PRINCE2 Certification Training 

10)  Conclusion
 

What is PRINCE2? 

PRINCE2, which stands for “Projects IN Controlled Environments,” is a globally recognised Project Management methodology. It’s not related to royalty but is a framework that emphasises systematic organisation and control. As the second edition of this methodology, PRINCE2 is a linear and process-oriented approach that directs projects through distinct stages, ensuring they are executed in a methodical manner.

The widespread adoption of PRINCE2 in over 150 countries can be attributed to its structured nature and its focus on fundamental Project Management principles. These principles include clearly defining the project’s scope and budget, which are crucial for successful project execution. This makes PRINCE2 particularly suitable for those who are new to Project Management, as it provides a clear roadmap for managing projects effectively.

History of PRINCE2®?  

Now that we are aware of What is PRINCE2, let us quickly examine its history. The Project Resource Organisation Management Planning Technique (also known as PROMPT), which was developed in 1975 and employed by the United Kingdom government for its information system projects. 

The origins of PRINCE2 date back to 1989 when it was developed by the UK’s Central Computer and Telecommunications Agency (CCTA) from the Project Resource Organisation Management Planning Technique (PROMPT), which was used by the UK government for information system projects. Initially, PRINCE2 was tailored for IT projects, but it was later adapted in the 1990s to be applicable to a broader range of projects. The revised version, PRINCE2, was introduced in 1996, removing IT-specific terminology to make it more versatile.

How does PRINCE2 work? 

A PRINCE2 project plan is typically described as having the following: 

1) A project lifecycle that is clearly defined 

2) Quantifiable and defined business products 

3) A matching set of procedures for successfully developing commercial goods  

4) A clear and defined collection of resources  

5) A Project Management organisational structure with clear roles and responsibilities 

Interested to know more about how PRINCE2 works? Join our PRINCE2® Foundation and Practitioner Training now! 

Seven principles of PRINCE2

Seven important principles form the foundation of the PRINCE2 methodology. Let’s explore the Seven Themes of PRINCE2: 

1) Projects must be justified from a business perspective, which includes having a clear need, a specified customer, reasonable benefits, and an in-depth cost analysis.

2) It's crucial to keep learning. At every stage of the procedure, lessons are actively looked after, recorded, and applied to enhance subsequent work.

3) Everyone must be aware of their roles and duties, and they must all be well stated. 

4) The work must be organised in phases. In order to reflect on lessons learned and ensure the project is still on track to reach its objectives, large projects are divided into phases.

5) Project boards assign daily management duties to a Project Manager after establishing baseline standards for necessities, including deadlines, cost, risk, and scope. 

6) To verify that deliveries adhere to specifications, teams use a quality register. 

7) Every project should be customised using the PRINCE2 methodology. The scope, the number of participants involved, etc., can all be taken into account when determining the level of supervision and planning. 

Seven work phases of the PRINCE2® process

The fact that the procedure is divided into seven phases shouldn't come as a surprise! Below are the seven work phases to ease tasks during the project lifecycle: 

1) The Start of a Project- An application for a new project—a project mandate—is made. The company's ability to fulfil this mandate is evaluated. A more thorough project brief is provided to the company if it is accepted. 

2) Directing- The project board reads and assesses project briefs. They choose how to plan and carry out the authorised projects. 

3) Project Initiation- In the Project Initiation Phase, the Project Manager develops the documentation for the project. It contains a strategy and baseline for key objectives like cost, advantages, risk, quality, and scope. The board chooses whether or not everyone approves of this documentation.  

4) Controlling Stage- Now that the project has been broken down into smaller work phases, the Project Manager passes off the project to the rest of the team. The Project Manager oversees each stage and may intervene as needed. The daily tasks are coordinated by the team manager. 

5) Administration of Product Delivery- Before being handed off to the customer, the deliverables must satisfy the quality requirements of PRINCE2. This responsibility lies on the Project Manager. The board then assesses whether the outcomes are acceptable or call for revisions. 

6) Stage Boundary Control- The board and Project Manager assess each stage of the project to make sure that everything is proceeding as expected and that the requirements are being fulfilled. The project's future can be decided by the board. The Project Manager is required to document the lessons learnt at every review for later reference. 

7) Project Completion- The Project Manager must wrap up cleanly after the work on the project is over.

Gain deep insights on the PRINCE2 Process with our PRINCE2® Practitioner Training –sign up now!  

PRINCE2 benefits 

Learning about PRINCE2 can improve Project Management procedures across your entire company. Teams using the PRINCE2 methodology have a clear understanding of their roles within a project as well as when, why, and for whom certain deliverables are to be made. The framework also provides techniques for resource and expense management that have been shown to be effective, leading to more carefully planned projects with significantly higher returns on investment. 

Most importantly, the framework can assist you in keeping the right perspective while working on your projects. Several reviews can be conducted to make sure that the work is moving forward in accordance with the set business goals, and any problems will be addressed and fixed before work can proceed.

 The following are some of the major Benefits of PRINCE2 Project Management:

1) Greater decision-making latitude 

2) Better resource management and project control 

3) Reviewing project progress on a regular basis against business cases and plans 

4) Higher efficiency in risk management 

5) Early detection of potential issues 

6) Ensuring that projects are only continued when they have real, business-related justifications  

7) A clear procedure for handling any project deviations from the established plan 

8) The project team and other PRINCE2 stakeholders communicate effectively. 

9) A defined procedure for documenting lessons learnt that can be applied to future initiatives 

PRINCE2 Certification  

There is a study programme for PRINCE2 that can help individuals gain knowledge  of the PRINCE2 methodology. The candidates must complete the training with an authorised training provider and pass a test before continuing with the course.  

In accordance with the PRINCE2  Project Management technique, there are four levels of Certification: 

1) PRINCE2 2017 Foundation 

2) PRINCE2 2017 Practitioner  

3) PRINCE2 Agile Foundation 

4) PRINCE2 Agile Practitioner 

Based on the Certification level and certified training institution you select, the cost of the certification course and exam ranges from £350 to £2,000. Other than this, there’s also the cost of PRINCE2 Certification Renewal.

PRINCE2 vs. PMP

PRINCE2 and PMP are two popular Project Management methods and certifications that can help you improve your skills and career prospects. However, they have some key differences that you should consider before choosing one over the other. Let's explore the key differences between PRINCE2 and PMP:

1) Origin and popularity: PRINCE2 is a UK-based method that is popular in Europe and Australia. PMP is a US-based method that is popular in North America and Asia. 

2) Purpose and approach: PRINCE2 is a process-based method that provides a prescriptive framework with best practices. It answers the “what, when, and who” questions of Project Management. PMP is a knowledge-based method that provides a descriptive framework with knowledge areas. It answers the how questions of Project Management. 

3) Organisation and structure: PRINCE2 is based on seven principles, themes, and processes. It offers well-defined project roles and responsibilities. It also allows for tailoring and flexibility. PMP is based on the PMBOK, which offers ten knowledge areas and five process groups. It emphasises the role of the project manager as the leader and decision-maker. It also requires alignment with the organisational and environmental factors. 

4) Certification and eligibility: To become a PRINCE2 Practitioner, you must pass the PRINCE2 Foundation exam first. There are no prerequisites for taking the PRINCE2 exams, but some Project Management experience or training is recommended. To become a PMP, you need to meet the eligibility criteria of PMI, which include having a degree or diploma, Project Management experience, and education. You also need to pass the PMP exam and maintain your certification by earning PDUs. 

Overall, PRINCE2 and PMP have different benefits, and the best choice for you depends on your personal and professional goals, preferences, and context. You should compare the costs, benefits, and requirements of each certification and decide which one suits you better. Alternatively, you can also pursue both certifications if you want to gain a comprehensive and versatile Project Management skill set.

Become an effective Project Manager with PRINCE2 Certification Training

Although we addressed What is PRINCE2, there is a lot to be learned from it, hence getting certified as Project Managers is strongly advisable.

Compared to other options like PMP, PRINCE2 operates at a higher level and uses a more defined methodology. It clarifies each team member's responsibilities and adds clarity to the work process. Due to its synchronised focus on the project and the process, PRINCE2 is a useful tool in today's business environment.

Conclusion

We hope you read and understand everything about What is PRINCE2. It is a Project Management method that offers a structured and flexible framework for delivering successful projects. PRINCE2 can help you improve your skills and career prospects as a Project Manager.

Get an understanding of PRINCE2 basics with our PRINCE2® Foundation Course- Sign up today!