Principles & Method

The PRINCE2 method is public domain, not connected to a certain organization in consultancy, training or support. PRINCE2 is a process-based approach for project management. The entire method, as you can see in the figure below, is based on 7 principles, 7 themes and 7 processes in which each process is defined by main input and output, together with specific objectives to be reached and activities to be done.

All this will form within the Project Environment the PRINCE2 methodology.

Principles

The PRINCE2 process-based approach to project management is based on several principles (7 to be exact). These form the basis for the characteristic PRINCE2 method.

The seven principles are as follows:

1. Business justification
   A PRINCE2 project must at any time have continued business justification
2. Learn from experience
   Within a PRINCE2 project, time and moments need to be created for the acquisition, recording and transmission of experiences (lessons are sought, recorded and acted upon throughout the life of the project)
3. Roles and Responsibilities
   A PRINCE2 project has defined and agreed roles and responsibilities with an organization structure that engages the business, user and supplier stakeholder interests.
4. Manage by Stages
   A PRINCE2 project must be, for each stage, planned, monitored and controlled.
5. Manage by exception
   A PRINCE2 project has defined tolerances for each project objective as also established ground rules on delegated authority.
6. Focus on products
   A PRINCE2 project must address proper definition and delivery of products and in particular its quality.
7. Tailor to suit the environment
   The PRINCE2 methodology should be tailored to suit the project’s size, environment, complexity, importance, capability and risks.

An important new item is tailoring PRINCE2 to suit the project environment, the seventh principle.

This is done by the project team to adapt the method to the context of a specific project.

The project team will focus on:

• Adapting the themes (through the strategies and controls)
• Incorporating specific terms/language
• Revising the Product Descriptions for the management products
• Revising the role descriptions for the PRINCE2 project roles
• Adjusting the processes to match the above.

Guidance in how to do this and how to document and implement these changes can now be found in the method.

Method

The 7 Principles of PRINCE2 are followed by the 7 Themes

The seven themes are:

1. Business Case
   A theme that always has been the heart of each PRINCE2 project. The objective of a Business Case is to establish mechanisms to judge whether the project is (and remains) desirable, viable and achievable as a means to support decision-making in its continued investment. The “WHY”.
   
   
2. Organization
   The objective of this theme is to define and establish the project’s structure of accountability and responsibilities. The “WHO” theme.
3. Quality (including quality review technique)
   The objective of this theme is to define and implement the means by which the project will create and verify products that are fit-for-purpose. The “WHAT”.
4. Risk
   The purpose of the theme Risk management is to Identify, assess and control uncertainty, and as a result improve the ability of the project to succeed. The “WHAT IF”
   
   
5. Plans (incl. planning and product based planning)
   This theme is about facilitating communication and control by defining the means of delivering the products Where and how by whom, and estimating the when and how much?
6. Change (incl. configuration management, change control and change control technique)
   The objective of this theme is to identify, assess and control any potential and approved changes to the base-lined objectives. The ONLY IF?
7. Progress
   An important theme. Objective is to establish mechanisms to monitor and evaluate actual achievements with the planned achievements in order to provide a forecast for the project objectives, including its continued viability. The “Where are we now? Where are we going? Should we carry on?”

Processes

The last element of the method are the 7 processes. It would be to much to provide a description on these processes here. To see where they fit in the method, look at the picture.

The seven processes are:

1. Starting Up a Project (SU)
2. Initiating a Project (IP)
3. Directing a Project (DP)
4. Controlling a Stage (CS)
5. Managing Product Delivery (MP) (
6. Managing Stage Boundaries (SB)
7. Closing a Project (CP)

All diagrams used © Crown Copyright 2009. Reproduced under Licence from OGC.