Prince2 Methodology

Prince2 illustration

PRINCE2 (PRojects IN Controlled Environments) is a process-based, scalable project management method focused on business justification, defined roles and responsibilities, and managing by stages. It provides governance through controls, management products (documents), and clear decision points led by the Project Board.

Goal: deliver outputs that remain aligned to the business case, with effective control of risk, change, and quality across clearly defined management stages.

Continued Business Justification Defined Roles Manage by Stages Tailor to Context Exception Management

PRINCE2 Processes (Flow)

  1. Starting Up a Project (SU): Confirm the project is viable and worth initiating; appoint key roles, outline the project brief, and plan initiation.
  2. Directing a Project (DP): The Project Board exercises overall control: authorize initiation, stage plans, exceptions, and project closure.
  3. Initiating a Project (IP): Establish solid foundations: create the Project Initiation Documentation (PID), refine the business case, strategies (risk, quality, change, comms), and baselines.
  4. Controlling a Stage (CS): Day-to-day management by the Project Manager: assign work packages, monitor progress, manage issues/risks, and report via highlight reports.
  5. Managing Product Delivery (MP): Team Managers accept, execute, and deliver work packages to the agreed quality criteria and tolerances; provide checkpoint reports.
  6. Managing a Stage Boundary (SB): Review the current stage, update the business case, plan the next stage, and seek Board approval to proceed (or take exception decisions).
  7. Closing a Project (CP): Confirm acceptance, evaluate performance against objectives, capture lessons, and hand over products to operations/support.

Key Governance Activities

  • Business Case & Benefits Management: Maintain continued justification; define benefits and how they’ll be measured post-project.
  • Stage Gate Decisions: Project Board authorizes each stage, exceptions, and project closure.
  • Management Products: PID, stage plans, product descriptions, risk/issue/change registers, quality management approach.
  • Progress Controls: Tolerances, exceptions, highlight and checkpoint reporting.
  • Quality Assurance & Reviews: Quality criteria and reviews aligned to product descriptions.
  • Change Authority: Structured impact assessment and approval for changes to scope/baselines.

Actors (Roles & Responsibilities)

  • Project Board: Provides direction and decision-making. Composed of the Executive (ultimately accountable), Senior User (benefits/user needs), and Senior Supplier (solution feasibility).
  • Executive: Owns the business case and ensures value for money.
  • Project Manager: Manages the project day-to-day within tolerances, reporting to the Board.
  • Team Manager(s): Manage product delivery (work packages) to agreed quality, time, and cost.
  • Project Assurance: Independent assurance for Business, User, and Supplier interests.
  • Project Support: Configuration management, reporting support, and admin services.
  • Change Authority (optional): Handles lower-impact change requests within delegated powers.
  • Stakeholders & Users: Provide requirements, acceptance, and benefit realization input.

Benefits

  • Strong governance & clarity: well-defined roles, controls, and decision points.
  • Business focus: continued justification ensures alignment to measurable benefits.
  • Scalable & tailorable: method can be right-sized for project size and risk.
  • Risk & quality management: structured approaches improve predictability and compliance.
  • Effective stakeholder engagement: clear responsibilities and communication strategies.

Cons

  • Potential bureaucracy: if not tailored, documentation and controls can feel heavy.
  • Slower to change: formal approvals may reduce responsiveness compared with Agile.
  • Role coverage required: needs engaged Board members and capable PM/assurance functions.
  • Training & discipline: teams unfamiliar with PRINCE2 may face a learning curve.

Summary

PRINCE2 provides a robust, scalable governance framework centered on business value, clear roles, and stage-based control. Tailored thoughtfully, it offers transparency and predictability across diverse projects. For fast-changing software efforts, it is often blended with iterative delivery practices to keep responsiveness high while preserving governance and assurance.