What Is PRINCE2 in Simple Terms?
PRINCE2 (PRojects IN Controlled Environments) is a structured, process-based project management methodology designed for large organizations, government, and compliance-heavy industries. It focuses on control, governance, and continuous business justification—constantly asking 'Is this project still worth doing?' The framework is built around 7 Principles, 7 Themes, and 7 Processes that provide a comprehensive but adaptable approach to managing projects.
PRINCE2 answers the question: 'How do we maintain control and governance over complex projects while ensuring continued business value?'
The Business Case Focus: PRINCE2's Core Philosophy
Unlike other methodologies that focus primarily on 'getting things done,' PRINCE2 is obsessed with one fundamental question: 'Is this project still worth doing?' The Business Case is the central document that justifies the project's existence, and it must remain valid throughout the project lifecycle. If the Business Case is no longer viable—because circumstances changed, costs escalated, or benefits diminished—PRINCE2 mandates stopping the project. This prevents 'Zombie Projects' that consume resources without delivering value.
PRINCE2 was developed by the UK government's Central Computer and Telecommunications Agency (CCTA, now OGC) in 1989, originally for IT projects. It was updated in 1996, 2009, and 2017 to become a generic project management methodology. Today, it's the de facto standard in the UK, Europe, Australia, and many government agencies worldwide.
The 7 Principles: The Non-Negotiables
PRINCE2's 7 Principles are the guiding obligations that determine whether a project is genuinely being managed using PRINCE2. These are non-negotiable—if you're not following all 7, you're not doing PRINCE2:
1. Continued Business Justification
The project must have a justifiable reason to exist, documented in the Business Case. This justification must remain valid throughout the project. At every stage boundary, the Business Case is reviewed. If it's no longer viable (costs have escalated, benefits have diminished, strategic priorities have shifted), the project should be stopped—not continued out of momentum or sunk cost fallacy.
2. Learn from Experience
PRINCE2 teams should actively seek, record, and apply lessons from previous projects and from the current project. A Lessons Log captures what's learned during the project. This knowledge should inform how the project is managed and be shared with the organization for future projects. Without this, organizations repeat the same mistakes.
3. Defined Roles and Responsibilities
Everyone involved must know exactly what they are accountable for—there should be no ambiguity about who makes which decisions. PRINCE2 defines a clear structure: Project Board (decision-makers), Project Manager (day-to-day management), Team Manager (delivery), and Project Support (administration). This clarity prevents gaps and overlaps.
4. Manage by Stages
The project is planned, monitored, and controlled on a stage-by-stage basis. At the end of each stage, the Project Board reviews progress, assesses the Business Case, and decides whether to continue. This provides decision points where the project can be stopped, redirected, or continued with adjusted plans. Think of stages as checkpoints with formal 'go/no-go' decisions.
5. Manage by Exception
Define tolerances (acceptable variation) for each objective: time, cost, scope, risk, quality, and benefits. The Project Manager manages within these tolerances without escalation. Only when tolerances are forecast to be exceeded does escalation occur. This empowers the Project Manager while giving the Project Board control without micromanagement. It's the 'escalation only when necessary' principle.
6. Focus on Products
A successful project is output-oriented, not activity-oriented. PRINCE2 emphasizes defining the products (deliverables) with clear quality criteria before planning the work to create them. Product Descriptions specify what each deliverable looks like when 'done.' This prevents the trap of being busy but not delivering value—activities must lead to defined products.
7. Tailor to Suit the Project Environment
PRINCE2 must be adapted to the project's size, complexity, importance, and environment. A small internal project doesn't need the same governance as a multi-year government program. Tailoring means applying PRINCE2 appropriately—using more or less formality, combining roles, adjusting documentation—without abandoning the principles. PRINCE2 is a framework, not a rigid prescription.
The 7 Themes: Aspects to Address Continuously
Themes are aspects of project management that must be addressed continuously throughout the project. They answer 'What must be done?' throughout the project lifecycle:
Business Case
Why is this project worth doing? The Business Case captures the justification and is continuously updated and validated.
Organization
Who is involved and what are their responsibilities? Defines the project structure, roles, and accountabilities.
Quality
What quality is expected and how will it be achieved? Quality management ensures products meet their acceptance criteria.
Plans
How will we get there? Plans at multiple levels (project, stage, team) provide the roadmap.
Risk
What could go wrong and how do we handle it? Risk management identifies, assesses, and controls uncertainty.
Change
How do we handle changes to the agreed scope? Change control manages requests for changes, issues, and configuration.
Progress
Where are we now, where are we going, and should we continue? Progress monitoring and reporting enable control.
The 7 Processes: Driving the Project from Start to Close
Processes are the activities that transform inputs into outputs. They describe what must happen when during the project. PRINCE2 has 7 processes that cover the entire project lifecycle:
Starting Up a Project (SU)
The pre-project activities that ensure there's a viable project worth initiating. Produces the Project Brief and determines if the project should proceed to initiation.
Directing a Project (DP)
The Project Board's activities: authorizing initiation, authorizing the project, authorizing stages, giving ad-hoc direction, and authorizing project closure. This is the governance layer.
Initiating a Project (IP)
Establishing solid foundations by creating the Project Initiation Documentation (PID). This includes the detailed Business Case, project approach, and all plans needed to control the project.
Controlling a Stage (CS)
The Project Manager's day-to-day activities: assigning work, monitoring progress, capturing issues and risks, reporting, and taking corrective action. This is where most project management activity occurs.
Managing Product Delivery (MP)
The interface between the Project Manager and the Team Manager. Ensures work packages are properly authorized, executed, and delivered according to quality expectations.
Managing a Stage Boundary (SB)
Activities at the end of each stage: reporting on stage completion, planning the next stage, updating the Business Case and risk register, and preparing for the Project Board's review.
Closing a Project (CP)
Formal project closure: confirming delivery of products, documenting lessons, preparing handover, and getting Project Board authorization to close. No project should just 'fade away.'
Key Roles in PRINCE2
PRINCE2 defines a clear governance structure with distinct roles. The Project Board provides strategic direction while the Project Manager handles day-to-day management:
The Project Board (Strategic Decision-Makers)
Executive
The single accountable decision-maker. Owns the Business Case. Chairs the Project Board. Ensures the project delivers value. This role cannot be shared—one person is ultimately accountable.
Senior User
Represents the users who will use the product or be affected by the outcomes. Responsible for specifying user requirements and confirming the product meets them. May represent multiple user groups.
Senior Supplier
Represents those who will design, develop, and implement the product. Provides resources and expertise. Responsible for the technical integrity of the solution. May represent multiple suppliers.
Delivery Roles
Project Manager
Responsible for day-to-day management within the constraints set by the Project Board. Plans, monitors, controls, and reports. Does not make strategic decisions—escalates when tolerances are threatened.
Team Manager
Responsible for delivering specific products to required quality within time and cost constraints. Manages the team doing the work. Reports to the Project Manager.
Project Assurance
Provides independent oversight for the Project Board. Ensures the project remains on track, follows standards, and maintains business value. Cannot be delegated to the Project Manager.
Pros and Cons of PRINCE2
Advantages
- Strong governance with clear roles and responsibilities
- Continuous business justification prevents wasted investment
- Stage-based approach provides regular control points
- Scalable—can be tailored to any project size
- Widely recognized certification, especially in UK/Europe/Australia
- Comprehensive documentation supports audits and compliance
Challenges
- •Can be documentation-heavy if not properly tailored
- •Perceived as bureaucratic for small, fast-moving projects
- •Requires training to implement correctly
- •Less suited to highly uncertain, exploratory work
- •Can slow decision-making if governance is excessive
- •Less popular in the US market compared to PMI/PMBOK
When to Use PRINCE2
PRINCE2 is particularly well-suited for:
Use PRINCE2 When:
- •Large, complex projects with significant budgets
- •Government and public sector projects
- •Projects requiring strong governance and audit trails
- •Organizations with formal project management offices (PMOs)
- •Multi-stakeholder projects with complex approval requirements
- •UK, Europe, and Australia where PRINCE2 is the standard
When PRINCE2 May Not Be Ideal
- •Small, fast-moving projects where agility is paramount
- •Highly innovative projects with unclear requirements
- •Organizations that haven't invested in PRINCE2 training
- •US-based organizations more familiar with PMBOK
Key Takeaways
- 1PRINCE2 is built on 7 Principles (non-negotiable), 7 Themes (what to address), and 7 Processes (what to do)
- 2Continued Business Justification is central—projects without valid business cases should stop
- 3Clear roles (Executive, Senior User, Senior Supplier) ensure governance without ambiguity
- 4Manage by Stages creates control points; Manage by Exception empowers the Project Manager
- 5Tailoring is required—PRINCE2 must be adapted to fit the project context
- 6PRINCE2 provides structure and control, making it ideal for governance-heavy environments
