Project management

What is the PRINCE2 project management method?

Undoubtedly, you want your company’s projects to be structured and in line with business objectives, while remaining flexible. That’s exactly what the PRINCE2 project management method is designed to do. What is it, why is the number 7 so important, and most importantly, how can you use it in your business? Let’s find out!

In this article, you will learn: What PRINCE2 is and why it balances flexibility with structure. The role of the 7 principles, themes, and processes. Key benefits and challenges of using PRINCE2. How PRINCE2 fits both traditional and Agile projects. Whether PRINCE2 certification is a good investment.

What is PRINCE2?

As is usually the case with project management methods, the name itself can tell us a lot about the most important principles of a specific solution. This also applies to PRINCE2.

PRINCE2 is an acronym for Projects IN Controlled Environments. This project management methodology focuses on clearly defined roles, project implementation stages and documentation that enable full control over the management process. At the same time, however, it emphasizes flexibility. PRINCE2 is based on a structure of principles, processes and themes that help project teams to plan, implement and monitor projects effectively.

The PRINCE2 methodology has a long and interesting history. It originated in the UK, where the Central Computer and Telecommunications Agency developed it as a project management standard for the British government. Its roots go back to the PROMPT II (Project Resource Organization Management Planning Technique) methodology, created in 1975 by Simpact Systems Ltd. for IT project management.

The first version of PRINCE, which was developed in 1989, focused on IT projects, but its limitations led experts to develop a more universal methodology. As a result, PRINCE2 was launched in 1996 as a more flexible solution tailored to projects of all kinds. This project management methodology became the standard in the British public sector, but its numerous advantages were recognized worldwide, making it suitable for use in various areas. Of course, it has continued to evolve. The latest edition of PRINCE2 was published by AXELOS in 2018.

Core principles of the PRINCE2 methodology

What makes this project management methodology so special? Definitely the “three sevens”:

• 7 principles
• 7 themes
• 7 processes

These easy-to-remember principles form the matrix of the entire methodology.

Let’s start with the seven principles. Following them guarantees that the project will be carried out according to the guidelines. Let’s take a closer look at them:

1. Continued business justification: every project must have a business justification that is regularly reviewed. If at any time the project ceases to be commercially viable, it is time for a change.
2. Use experience: project teams should learn from their own experiences, but also analyze the work of others. PRINCE2 encourages to document conclusions and use them in future projects. Yes, documentation is very important!
3. Defined roles and responsibilities: project participants must know exactly what they are responsible for and what their permissions are. The PRINCE2 management structure includes a Project Board, Project Manager, Team Manager and Team Members.
4. Manage by stages: the project is planned, monitored, and controlled in stages. After each stage is completed, progress is verified and decisions about continuation are made.
5. Manage by exception: PRINCE2 assumes flexible delegation of authority from higher to lower management levels. Measurable tolerance limits are defined for time, costs, quality, scope, or risk. If these are not exceeded, there is no reason to escalate the issue to a higher instance.
6. Focus on products: the methodology emphasizes clearly defining project outcomes and the quality standards they must meet. Therefore, a meticulously prepared product description plays an important role.
7. Tailor to the environment: PRINCE2 can and should be adapted to the scale, complexity, risk, and prioritization of a specific project. This makes it suitable for both small tasks and very large and complex projects.

7 Themes in PRINCE2 Methodology

Let’s move on to the “second seven,” or the 7 key themes. Their role is extremely important: they represent aspects that need to be continuously analyzed throughout the project. These are:

1. Business case: this is the most important issue, which can be reduced to the question of why the project is being carried out, what benefits it should bring, and whether investing in it is profitable. The business case should be regularly updated and verified.
2. Organization: defines the structure of the project team, roles, responsibilities of members, and relationships between project participants.
3. Quality: remember that the end product plays the most important role in the entire process. Therefore, one must ask when it will meet quality expectations and requirements, and what needs to be done to ensure and monitor quality.
4. Plans: planning is at the heart of every project. In PRINCE2 methodology, it enables the creation of an effective matrix. It determines how, when, and by whom the project objectives will be achieved at different levels.
5. Risk: risk management is a separate area. This theme describes how to manage uncertainties in plans and the broader project environment. It therefore covers comprehensive issues related to risk management.
6. Change: we mentioned maintaining flexibility at the very beginning. The change theme defines how to manage change, plan variants, and implement them in the project.
7. Progress: an important aspect is controlling results and verifying how well they meet business requirements. This theme determines how to monitor project progress and make decisions about its future based on this.

7 Processes in PRINCE2 Methodology

Now it’s time for the last seven—the processes that cover the entire project lifecycle, from initiation to closure:

1. Starting up a project: naturally, the first step is to answer the basic question: does the project have a reason to exist and business justification? The primary document at this stage is the project mandate. The project’s assumptions are developed, and the project management team is appointed.
2. Initiating a project: it’s time to create solid foundations for the project. This process involves developing initiation documentation, which includes the business case, project plan, description of the approach to risk management, quality, team functioning principles, etc.
3. Controlling a stage: in this process, the Project Manager assigns work, monitors it, responds to problems, reports progress, and takes corrective actions.
4. Managing product delivery: another area is to set rules for product delivery. For this purpose, it is necessary to establish acceptance criteria, product development, and division of implementation into stages.
5. Managing stage boundaries: this is the process of planning subsequent stages and reporting progress to the Project Board.
6. Closing a project: the final process, which includes accepting project products, reporting, and recommendations for the future.
7. Directing a project: this is an extremely important process through which the Project Board makes key decisions and exercises general supervision over the project, approving the most important directions of development and resources.

Pros and cons of the PRINCE2 methodology

Let’s face it: like any project management methodology, PRINCE2 has its pros and cons. It is worth getting to know them so that you can make an informed decision as to whether it is suitable for your organization and the projects you intend to carry out.

The main advantages of PRINCE2 are:

• Structured approach: the methodology is based on clearly defined processes, roles, and responsibilities. Thus, you gain order and transparency in project management.
• Flexibility: PRINCE2 can be adapted to projects of various scales and nature. It also works in many industries, not just IT.
• Emphasis on business viability: continuous verification of the project’s business viability prevents wasting resources. It teaches the difficult art of abandoning non-developmental initiatives.
• Management by exception: the methodology is based on far-reaching decentralization of decisions, thus enabling efficient use of higher-level management time.
• Long history and recognition: PRINCE2 is a project management methodology with a long history that has been used across different industries worldwide for decades. This means teams have access to numerous resources facilitating proper project management and solving potential problems. It’s also worth noting the available courses and training in this area.
• Support for both waterfall and agile approaches: this methodology has long been associated primarily with the waterfall approach, but it can also be adapted to environments that favor agile.

Now, let’s look at the disadvantages of PRINCE2:

• Complexity: full implementation of the methodology can be time-consuming and require certain resources.
• Adaptation problems: sometimes full implementation of this project management methodology’s principles proves so difficult that in practice we encounter the PINO syndrome (Prince In Name Only). In such a case, the organization cannot benefit from PRINCE2, and project management becomes more difficult.
• Excess documentation: as we mentioned, documentation plays an important role in PRINCE2. However, care should be taken that creating it doesn’t become an end in itself, diverting attention from the actual implementation of the project and, most importantly, maintaining business viability.
• Risk of meeting overload: suboptimal implementation can result in a large number of time-consuming meetings. Developing optimal relationships between the project manager and business stakeholders can also be challenging.

PRINCE2 certification – is it worth it?

If you want to apply this project management methodology and boost your skills, it is worth considering obtaining PRINCE2 certification. Certification is carried out at two levels:

• PRINCE2 Foundation: basic level, which confirms knowledge of terminology and basic principles of the methodology.
• PRINCE2 Practitioner: certificate for advanced users, which verifies the ability to apply the methodology in practice in various project contexts.

In addition, there is a certification for PRINCE2 Agile that is aimed for team members who want to combine PRINCE2 with an agile approach to project implementation. This certification is also divided into two levels.

Obtaining a PRINCE2 certificate is an excellent way to enhance project organization. Preparatory courses will help you understand how to implement this project management methodology in the most optimal way for your organization. In short, it is definitely worth giving it a try!