PRINCE2 Fundamentals

PRINCE2 (Projects IN Controlled Environments) is a structured project management methodology widely used across industries worldwide. Originally developed by the UK government, it provides a flexible framework that can be tailored to any project size.

The PRINCE2 Structure

PRINCE2 is built on three integrated elements:

flowchart TB subgraph principles["7 PRINCIPLES"] P1["Guiding obligations"] end subgraph themes["7 THEMES"] T1["Aspects to manage throughout"] end subgraph processes["7 PROCESSES"] PR1["Steps from start to finish"] end principles --- themes --- processes classDef blue fill:#108BB9,stroke:none,color:#fff class P1,T1,PR1 blue

The 7 Principles

These are the guiding obligations that determine whether a project is genuinely using PRINCE2.

1. Continued Business Justification

  • Every project must have a valid business reason
  • Justification is documented in the Business Case
  • Reviewed at each stage gate
  • Project stops if justification no longer exists

2. Learn from Experience

  • Lessons are sought from previous projects at the start
  • Lessons are recorded throughout the project
  • Lessons are passed on at project closure
  • Supports continuous improvement

3. Defined Roles and Responsibilities

  • Clear accountability at all levels
  • Three primary interests: Business, User, Supplier
  • Defined in the Project Management Team structure
  • Everyone knows what they’re responsible for

4. Manage by Stages

  • Project is planned and controlled stage by stage
  • Senior management control at stage boundaries
  • Provides regular review points
  • Limits risk exposure

5. Manage by Exception

  • Tolerances are set for time, cost, scope, quality, risk, benefits
  • Escalation only when tolerances are forecast to be exceeded
  • Empowers project manager within defined limits
  • Efficient use of senior management time

6. Focus on Products

  • Focus on defining and delivering products (outputs)
  • Products must meet quality criteria
  • Clear product descriptions
  • Quality is planned, not inspected in

7. Tailor to the Environment

  • PRINCE2 must be tailored to the project
  • Consider size, complexity, risk, environment
  • Avoid “PRINCE2 in a box” approach
  • Document tailoring decisions

The 7 Themes

Themes are aspects of project management that must be addressed continuously throughout the project.

Theme Purpose Key Question
Business Case Establish viability Why are we doing this?
Organisation Define accountability Who is involved?
Quality Define and verify fitness What do we need to deliver?
Plans Define how, when, by whom How will we achieve it?
Risk Identify and manage uncertainty What if…?
Change Control changes to baseline What’s the impact?
Progress Monitor and compare Where are we now?

Business Case Theme

  • Documents justification for the project
  • Contains costs, benefits, risks, timescales
  • Updated at each stage boundary
  • Owned by the Executive

Organisation Theme

  • Defines the project management team structure
  • Project Board: Executive, Senior User, Senior Supplier
  • Project Manager: Day-to-day management
  • Team Manager: Delivering work packages

Quality Theme

  • Quality planning: what, how, by whom
  • Product Descriptions define acceptance criteria
  • Quality control: inspections, reviews, testing
  • Quality assurance: independent verification

Plans Theme

  • Project Plan: High-level, whole project
  • Stage Plan: Detailed, current stage
  • Team Plan: Optional, work package level
  • Exception Plan: Replaces current plan when tolerances exceeded

Risk Theme

  • Risk identification, assessment, and response
  • Risk Register tracks all identified risks
  • Response types: Avoid, Reduce, Transfer, Accept, Share
  • Continuous activity throughout project

Change Theme

  • Issue Register captures all issues
  • Issue types: Request for Change, Off-specification, Problem/Concern
  • Change Authority may be delegated
  • Configuration management maintains product integrity

Progress Theme

  • Monitoring actual vs planned
  • Checkpoint Reports: Team to PM (regular)
  • Highlight Reports: PM to Board (periodic)
  • Stage boundaries provide control points

The 7 Processes

Processes provide the steps for managing a project from start to finish.

flowchart TD SU[Starting Up a Project\nSU] --> DP[Directing a Project\nDP] DP --> IP[Initiating a Project\nIP] IP --> CS[Controlling a Stage\nCS] CS --> MP[Managing Product Delivery\nMP] MP --> CS CS --> SB[Managing a Stage Boundary\nSB] SB --> DP SB --> CS SB --> CP[Closing a Project\nCP] classDef blue fill:#108BB9,stroke:none,color:#fff class SU,DP,IP,CS,MP,SB,CP blue

Starting Up a Project (SU)

  • Appoint Executive and Project Manager
  • Capture previous lessons
  • Design project management team
  • Prepare outline Business Case
  • Select project approach
  • Plan initiation stage

Directing a Project (DP)

  • Project Board activities throughout
  • Authorise initiation, stages, and closure
  • Give ad hoc direction
  • Final process: Authorise project closure

Initiating a Project (IP)

  • Create Project Initiation Documentation (PID)
  • Refine Business Case
  • Create Project Plan
  • Set up controls
  • Assemble PID for approval

Controlling a Stage (CS)

  • Day-to-day project manager activities
  • Authorise work packages
  • Review work package status
  • Report highlights
  • Capture and examine issues
  • Escalate issues and risks
  • Take corrective action

Managing Product Delivery (MP)

  • Team Manager activities
  • Accept work packages
  • Execute work packages
  • Deliver work packages

Managing a Stage Boundary (SB)

  • Plan next stage
  • Update Project Plan
  • Update Business Case
  • Report stage end
  • Produce Exception Plan (if required)

Closing a Project (CP)

  • Prepare planned or premature closure
  • Hand over products
  • Evaluate the project
  • Recommend project closure

Key PRINCE2 Documents

Document Created Purpose
Project Brief SU Initial project definition
Business Case SU → Throughout Justification for project
PID IP Complete project definition
Project Plan IP High-level plan
Stage Plan IP/SB Detailed stage plan
Work Package CS Authorisation to do work
Checkpoint Report MP Team progress report
Highlight Report CS PM to Board progress report
End Stage Report SB Stage summary
End Project Report CP Project summary
Lessons Report CP Lessons for future

PRINCE2 Certification Path

Level Description Prerequisite
Foundation Understand terminology and method None
Practitioner Apply method to scenarios Foundation
Agile Foundation Understand PRINCE2 Agile None
Agile Practitioner Apply PRINCE2 Agile Foundation or Agile Foundation
Last updated: 13 January 2026