Principles: Definition

The guiding obligations and good practices which determine whether the project is genuinely being
managed using PRINCE2. If a project does not apply all seven principles, it is not a PRINCE2
project. The principles are:

Principles: The Seven Principles

1. Continued business justification (i.e. a PRINCE2 project has continued business

justification)
2. Learn from experience (PRINCE2 project teams learn from previous experience. Lessons
are sought, recorded and acted upon throughout the life of the project)
3. Defined roles and responsibilities (A PRINCE2 project has defined and agreed roles and
responsibilities within an organization structure that engages the business, user and
supplier stakeholder interests)
4. Manage by stages (A PRINCE2 project is planned, monitored and controlled on a stage-
by-stage basis)
5. Manage by exception (A PRINCE2 project has defined tolerances for each project
objective to establish limits of delegated authority). The project objectives are:
a. Time
b. Cost
c. Quality
d. Scope
e. Risk
f. Benefit
6. Focus on products (A PRINCE2 project focuses on the definition and delivery of products,
in particular their quality requirements)
7. Tailor to suit the project environment (PRINCE2 is tailored to suit the project’s
environment, size, complexity, importance, capability and risk)
Theme: Definition

Aspects of project management that must be addressed continually and in parallel throughout the
project. They explain the specific treatment required by PRINCE2 for various project management
disciplines and why they are necessary. Any project manager who gives thorough attention to these
themes will fulfill the role in a professional manner. The themes are:

Theme: The Seven Themes

1. Business Case (Answers ‘Why?’)

2. Organization (Answers ‘Who?’)
3. Quality (Answers ‘What?’)
4. Plans (Answers ‘How?’, ‘How much?’ and ‘When?’)
5. Risk (Answers ‘What if?’)
6. Change (Answers ‘What is the impact?’)
7. Progress (Answers ‘Where are we now?’, ‘Where are we going?’, ‘Should we carry on?’)

Theme: Purpose of the seven themes

1. Business Case (Answers ‘Why?’)

a. Purpose: To establish mechanisms for judging whether the project is (and remains)
desirable, viable and achievable as a means to support decision making in its
(continued) investment.
2. Organization (Answers ‘Who?’)
a. Purpose: To define and establish the project’s structure of accountability and
responsibilities.
3. Quality (Answers ‘What?’)
a. Purpose: To define and implement the means by which the project will create and
verify products that are fit for purpose.
4. Plans (Answers ‘How?’, ‘How much?’ and ‘When?’)
a. Purpose: To facilitate communication and control by defining the means of
delivering the products
5. Risk (Answers ‘What if?’)
a. Purpose: To identify, assess and control uncertainty and, as a result, improve the
ability of the project to succeed.
6. Change (Answers ‘What is the impact?’)
a. Purpose: To identify, assess and control any potential and approved changes to the
baseline.
7. Progress (Answers ‘Where are we now?’, ‘Where are we going?’, ‘Should we carry on?’)
a. Purpose: To establish mechanisms to monitor and compare actual achievements
against those planned, to provide a forecast for the project objects and the project’s
continued viability, and to control any unacceptable deviations.

All 7 themes must be applied in a project but they should be tailored according to the scale,
nature and complexity of the project concerned.
Processes: Definition

Describe a step-wise progression through the project lifecycle, from getting started to project
closure. Each process provides checklists of recommended activities, products and related
responsibilities.

A process is a structured set of activities designed to accomplish a specific objective.

A process takes one or more defined inputs and turns them into defined outputs.

A process provides the set of activities required to direct, manage and deliver a project
successfully.
Processes: The Seven Processes

1. Starting up a project
2. Directing a project
3. Initiating a project
4. Controlling a Stage
5. Managing Product Delivery
6. Managing a Stage Boundary
7. Closing a Project

Processes: The Purpose of the Seven Processes

1. Starting up a project
a. Purpose:
i. To ensure that the prerequisites for initiating a project are in place by
answering: do we have a viable and worthwhile project?
ii. To verify that the project is worthwhile and viable.
2. Directing a project
a. Purpose: To enable the Project Board to be accountable for the project’s success by
making key decisions and exercising overall control while delegating day-to-day
management of the project to the Project Manager.
3. Initiating a project
a. Purpose: To establish solid foundations for the project, enabling the organization
to understand the work that needs to be done to deliver the project’s products before
committing to a significant spend.

4. Controlling a Stage
a. Purpose: To assign work to be done, monitor such work, deal with issues, report
progress to the Project Board, and take corrective actions to ensure that the stage
remains within tolerance.
5. Managing Product Delivery
a. Purpose: To control the link between the Project Manager and the Team
Manager(s), by placing formal requirements on accepting, executing and delivering
project work.
6. Managing a Stage Boundary
a. Purpose: To enable the Project Board to be provided with sufficient information by
the Project Manager so that it can review the success of the current stage, approve
the next Stage Plan, and confirm continued business justification and acceptability
of the risks.
7. Closing a Project
a. To provide a fixed point at which acceptance for the project product is confirmed,
and to recognize that objectives set out in the original Project Initiation
Documentation have been achieved (or approved changes to the objectives have
been achieved), or that the project has nothing more to contribute.
Process 1: Starting up a Project

Purpose:
1. To ensure that the prerequisites for initiating a project are in place by answering: do we
have a viable and worthwhile project?
2. To verify that the project is worthwhile and viable.

Stage: Pre-Project

Level: Directing, Managing

Activities: The 6 activities

1. Appoint the Executive and the Project Manager

2. Capture Previous Lessons
3. Design and Appoint the Project Management Team
4. Prepare the Outline Business Case
5. Select the Project Approach and assemble the Project Brief
6. Plan the Initiation Stage

Activities: Outputs

1. Appoint the Executive and the Project Manager

a. Outputs:
i. Executive role description
ii. Project Manager Role Description
iii. Appointed Executive
iv. Appointed Project Manager
v. Daily Log
2. Capture Previous Lessons
a. Output: Lessons Log
3. Design and Appoint the Project Management Team
a. Output
i. Daily Log Update
ii. Project Management Team role descriptions
iii. Project Management Team Structure
iv. Appointed Project Management Team
4. Prepare the Outline Business Case
a. Output
i. Outline Business Case
ii. Project Product Description
iii. Daily Log Update
5. Select the Project Approach and assemble the Project Brief
a. Output
i. Project Brief
ii. Project Approach
iii. Additional Role Descriptions
iv. Daily Log Updates
6. Plan the Initiation Stage
a. Output
i. Stage Plan
ii. Daily Log Update
iii. Request to initiate a project.
Process 2: Directing a Project

Purpose:
1. To enable the Project Board to be accountable for the project’s success by making key
decisions and exercising overall control while delegating day-to-day management of the
project to the Project Manager

Stage: Pre-Project, Initiation, Subsequent Delivery, Final Delivery

Level: Directing

Activities: The 5 activities

1. Authorize Initiation
2. Authorize the project
3. Authorize a Stage or Exception Plan
4. Give ad hoc direction
5. Authorize project closure

Activities: Inputs and Outputs

1. Authorize Initiation
a. Inputs
i. Request to initiate a project
ii. Project Brief
iii. Initiation Stage Plan
b. Outputs
i. Approved project brief
ii. Approved Stage Plan (Initiation)
iii. Authority to initiate a project
iv. Initiation notification
2. Authorize the project
a. Inputs
i. Request to deliver a project
ii. Lessons Log
iii. Project Initiation Documentation
iv. Benefits Review Plan
b. Outputs
i. Approved Project Initiation Documentation
ii. Approved Benefits Review Plan
iii. Project Authorization Notification
iv. Premature Close
3. Authorize a Stage or Exception Plan
a. Input
i. Request to approve Exception Plan
ii. Request to approve Next Stage Plan
iii. End Stage Report for Current Stage
iv. Stage Plan for Next Stage
v. Exception Plan
vi. Benefits Review Plan
vii. Project Initiation Documentation
b. Outputs
i. Approved updated Project Initiation Documentation
ii. Approved End Stage Report for current stage
iii. Approved Stage Plan for next stage
iv. Approved updated Benefits Review Plan
v. Stage Authorization
vi. Premature Close
vii. Exception Plan Authorization
4. Give ad hoc direction
a. Input
i. Project Manager Request for advice
ii. Exception raised
iii. Corporate advice and decisions
iv. Highlight Report
v. Exception Report
vi. Issue Report
b. Output
i. Project Board request for advice
ii. Project Board Advice
iii. Exception Plan request
iv. Premature close
v. Raise New Issue
5. Authorize project closure
a. Input
i. Closure recommendation
ii. Updated Business Case
iii. Project Initiation Documentation
iv. End Project Report
v. Benefits Review Plan
b. Outputs
i. Approved End Project Report
ii. Approve updated Business Case
iii. Approve updated Benefits Review Plan
iv. Closure Notification
Process 3: Initiating a Project

Purpose:
1. To establish solid foundations for the project, enabling the organization to understand the
work that needs to be done to deliver the project’s products before committing to a
significant spend.

Stage: Initiation

Level: Managing

Activities: The 8 Activities

1. Prepare the Risk Management Strategy

2. Prepare the Configuration Management Strategy
3. Prepare the Quality Management Strategy
4. Prepare the Communication Management Strategy
5. Set up the project controls
6. Create the Project Plan
7. Refine the Business Case
8. Assemble the Project Initiation Documentation

Activities: Outputs

1. Prepare the Risk Management Strategy

a. Output
i. Risk Management Strategy as part of Project Initiation Documentation
ii. Risk Register
2. Prepare the Configuration Management Strategy
a. Output
i. Configuration Management Strategy as part of Project Initiation
Documentation
ii. Configuration Item Records
iii. Issue Register
3. Prepare the Quality Management Strategy
a. Outputs
i. Quality Management Strategy as part of Project Initiation Documentation
ii. Quality Register
4. Prepare the Communication Management Strategy
a. Outputs
i. Communication Management Strategy as part of Project Initiation
Documentation
5. Set up the project controls
a. Output
i. Project Controls as part of Project Initiation Documentation
6. Create the Project Plan
a. Output
i. Project Plan as part of Project Initiation Documentation
7. Refine the Business Case
a. Output
i. Benefits Review Plan
ii. Detailed Business Case as part of Project Initiation Documentation
8. Assemble the Project Initiation Documentation
a. Output
i. Project Initiation Documentation
ii. Request to deliver a project
iii. Stage boundary approaching.
Process 4: Controlling a Stage

Purpose:
1. To assign work to be done, monitor such work, deal with issues, report progress to the
Project Board, and take corrective actions to ensure that the stage remains within tolerance.

Stage: Subsequent Delivery Stages, Final Delivery Stage

Level: Managing

Activities: The 8 Activities

1. Work Packages
a. Authorize a Work Package
b. Review Work Package Status
c. Receive Completed Work Packages
2. Monitoring and reporting
a. Review the Stage Status
b. Report Highlights
3. Issues
a. Capture and examine issues and risks
b. Escalate issues and risks
c. Take Corrective Action

Activities: Outputs

1. Work Packages
a. Authorize a Work Package
i. Output:
1. Work Packages
2. Updated current stage plan
3. Updated Configuration Item Records
4. Updated Quality Register
5. Updated Risk Register
6. Updated Issue Register
7. Authority to deliver a work package
b. Review Work Package Status
i. Output
1. updated Stage Plan
2. Updated Configuration Item Records
3. Updated Risk Register
4. Updated Issue Register
5. Updated Work Package
c. Receive Completed Work Packages
i. Output
1. Updated configuration item records
2. Updated Stage Plan
2. Monitoring and reporting
a. Review the Stage Status
i. Stage boundary approaching
ii. Project end approaching
iii. Request for advice
iv. Updated Risk Register
v. Updated Issue Register
vi. Updated Stage Plan
vii. Updated Lessons Log
viii. Updated Issue Report
b. Report Highlights
i. Highlight Report
3. Issues
a. Capture and examine issues and risks
i. Output:
1. Issue Report
2. Updated Daily Log
3. Updated Issue Register
4. Updated Risk Register
5. Request for advice
b. Escalate issues and risks
i. Output:
1. Exception Report
2. updated Issue Register
3. Updated Risk Register
4. Updated Issue Report
5. Exception Raised
c. Take Corrective Action
i. Updated Daily Log
ii. updated Issue Register
iii. Updated Risk Register
iv. Updated Issue Report
v. Updated Stage Plan
vi. Updated Configuration Item Records
vii. Corrective Action
Process 5: Managing Product Delivery

Purpose:
1. To control the link between the Project Manager and the Team Managers, by placing
formal requirements on accepting, executing and delivering project work.

Stage: Subsequent Delivery Stages, Final Delivery Stage

Level: Delivering

Activities: The 3 Activities

1. Accept a Work Package

2. Execute a Work Package
3. Deliver a Work Package

Activities: Outputs

1. Accept a Work Package

a. Outputs:
i. Team Plan
ii. Updated Quality Register
iii. Approved Work Package
iv. Raise New Risk
2. Execute a Work Package
a. Outputs:
i. Specialist Products
ii. Checkpoint Reports
iii. Updated Quality Register
iv. updated Configuration Item Records
v. Updated Team Plan
vi. Raised new risk
vii. Raise new issue
3. Deliver a Work Package
a. Output
i. Update Work Package
ii. Update Team Plan
iii. completed work package
Process 6: Managing a Stage Boundary

Purpose:
1. To enable the Project Board to be provided with sufficient information by the Project
Manager so that it can review the success of the current stage, approve the next Stage Plan,
review the updated project plan, and confirm continued business justification and
acceptability of the risks.

Stage: Initiating Stage, Subsequent Delivery Stages

Level: Managing

The 5 Activities:

1. Plan the next stage

2. Update the Project Plan
3. Update the Business Case
4. Report stage end
5. Produce an exception plan

Activities: Outputs

1. Plan the next stage

a. Output:
i. Next Stage Plan
ii. Next Stage Product Description
iii. Update Configuration Item Records
iv. Update Risk Register
v. Update Issue Register
vi. Update Quality Register
2. Update the Project Plan
a. Output
i. Updated Project Plan
ii. Updated Issue Register
iii. Updated Risk Register
3. Update the Business Case
a. Output
i. Updated Business Case
ii. Updated Benefits Review Plan
iii. Updated Risk Register
iv. Updated Issue Register
4. Report stage end
a. Output
i. End Stage Report
ii. Lessons Report
iii. Request to approve next stage plan
iv. Request to approve Exception Plan
5. Produce an exception plan
a. Output
i. Exception Plan
ii. Exception Plan Product Descriptions
iii. Updated Issue Register
iv. Updated Project Initiation Documentation
v. Updated Configuration Item Records
vi. Updated Quality Register
vii. Updated Risk Register
Process 7: Closing a Project

Purpose:
1. To provide a fixed point at which acceptance for the project product is confirmed, and to
recognize that objectives set out in the original Project Initiation Documentation have been
achieved, or that the project has nothing more to contribute.

Stage: Initiating Stage, Subsequent Delivery Stages

Level: Managing

Activities: The 5 activities

1. Prepare planned closure

2. Prepare premature closure
3. Hand over products
4. Evaluate the project
5. Recommend project closure

Activities: Outputs

1. Prepare planned closure

a. Updated Project Plan
2. Prepare premature closure
a. updated Issue Register
b. Updates to Project Plan
c. Create Additional Work Estimates
3. Hand over products
a. Create Follow-on action recommendations
b. Updated Configuration Item Records
c. Updated Benefits Review Plan
4. Evaluate the project
a. End Project Report
b. Lessons Report
5. Recommend project closure
a. Closed Issue Register
b. closed Risk Register
c. Closed Quality Register
d. Closed Daily Log
e. Closed Lessons Log
f. Closure Recommendation
Tailoring: The need to tailor PRINCE2 to the specific context of the project.