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) 6 Key Aspects of a PRINCE2 Project

4) Seven Principles of PRINCE2

5) Seven Work Phases of PRINCE2 Process

6) Benefits of PRINCE2 Project Management

7) PRINCE2 Certification

8) PRINCE2 vs. PMP

9) Become an Effective Project Manager with PRINCE2 Certification Training

10) What is PRINCE2 Used for?

11) 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.

6 Key Aspects of a PRINCE2 Project

PRINCE2 (Projects IN Controlled Environments) is a structured and flexible Project Management methodology that emphasises organisation, control, and communication throughout the project lifecycle. 

It is based on six key aspects essential for successful Project Management:

a) Business Case: A clear and compelling business case is crucial for every PRINCE2 project. It outlines the project's justification, objectives, and expected benefits. The business case is continuously reviewed to ensure the project remains viable and aligned with organisational goals, ensuring ongoing investment and stakeholder support.

b) Organisation: The project structure must clearly define roles and responsibilities for all stakeholders, ensuring everyone understands their contributions. This includes the Project Board, Project Manager, Project Team, and External Stakeholders. Clear roles facilitate decision-making and communication, ensuring accountability throughout the project.

c) Quality: PRINCE2 emphasises delivering quality products that meet stakeholder requirements. This involves defining quality criteria upfront, managing quality throughout the project lifecycle, and implementing quality control measures to verify that deliverables meet expected standards.

d) Plans: PRINCE2 requires comprehensive planning at various stages of the project. This includes high-level planning at the outset, detailed planning for each stage, and continuous progress monitoring. Plans are regularly updated to reflect changes, instructing the team towards the project’s objectives while managing risks and resources effectively.

e) Risk: Managing risks is a critical component of a PRINCE2 project. Identifying, assessing, and managing risks is a continuous process. PRINCE2 encourages proactive risk management by anticipating potential issues and planning risk mitigation strategies to minimise their impact on the project's success.

f) Change: Projects often encounter changes in scope, resources, or deliverables. PRINCE2 includes a structured approach to managing these changes. The project’s progress, changes, and exceptions are carefully controlled to ensure they align with the project objectives, and any deviations from the original plan are managed effectively.

By focusing on these six key aspects, PRINCE2 ensures that projects are well-managed, risks are controlled, and deliverables meet quality standards, resulting in successful outcomes that align with business goals.

Seven Principles of PRINCE2

PRINCE2 (Projects IN Controlled Environments) is a structured Project Management methodology that is widely used across various industries. It is based on seven key principles that instruct project success:

a) Continued Business Justification:

Every project must have a clear, ongoing business justification. The project should remain viable and aligned with organisational goals throughout its life cycle. If the justification no longer holds, the project should be reevaluated or closed.

b) Learn from Experience:

PRINCE2 encourages capturing lessons from previous projects and applying them to current projects. Teams should continuously assess past successes and failures to improve project processes and avoid repeating mistakes.

c) Defined Roles and Responsibilities:

A PRINCE2 project must have clearly defined roles and responsibilities for all team members and stakeholders. This ensures that everyone understands their tasks, expectations, and how they contribute to the project’s success.

d) Manage by Stages:

Projects should be planned, monitored, and controlled in stages. This principle ensures that progress is assessed regularly, and projects are divided into manageable chunks, with checkpoints at the end of each stage to review progress and decide the next steps.

e) Manage by Exception:

PRINCE2 allows for project boards to delegate authority for day-to-day management to the Project Manager, but exceptions to the plan are escalated when tolerances are exceeded. This reduces unnecessary oversight and empowers Project Managers to make decisions within set boundaries.

f) Focus on Products:

The focus of the project should be on the delivery of clearly defined products. This principle ensures that the project scope is well understood and that the project outcomes meet the agreed-upon quality standards and stakeholder expectations.

g) Tailor to Suit the Project Environment:

PRINCE2 is scalable and should be tailored to fit the specific needs of the project. It should be adapted based on the size, complexity, and risk level of the project, ensuring that the processes are efficient and appropriate for the context in which the project operates.

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

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  with the Project Manager. The board then assesses whether the outcomes are acceptable or  calls 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!  

Benefits of PRINCE2 Project Management

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:

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.

What is PRINCE2 Used For?

PRINCE2 is employed in managing projects in any industry through acting as a framework for project planning, project control and executing the project. It simplifies roles, justifications of the business, risk, and quality responsibility. PRINCE2 can be used for nearly any project at any scale and help organisations efficiently.

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!