PROJ6000 – PRINCIPLES OF PROJECT MANAGEMENT

PMBoK versus Prince2 in

contemporary projects

Leandro Luna
Introduction
The competition in a globalized world is increasing every day; thus, more organizations are
becoming projectized. Nowadays, Project management is an ever-growing profession.
Project management methodology provides a guideline for managing the projects. The two
best-known project management publications are Project Management Body of Knowledge
(PMBOK) and PRojects IN Controlled Environment version 2 (PRINCE2). Both
publications are asserted to incorporate best practices in project management (Ledoux,
2014). The purpose of this report is to compare PMBOK and PRINCE2 to identify the
characteristics of these best practices.

PMBOK
The PMBOK was created by the PMI (Project Management Institute). PMI itself was
approved by the American National Standards Institute (ANSI) to be a standards developer
in 1998. It is quite popular in countries part of the Americas. The PMBOK documents a set
of standard terminology, knowledge, and guidelines for project management. It describes
project management techniques, the inputs and outputs to processes, and knowledge areas
(Buehring, 2015). In 1981, PMI's direction authorized the development of A Guide to the
Project Management Body of Knowledge (PMBOK Guide). The PMBOK is divided into
ten knowledge areas, broken down into activities across five process groups of the project
life cycle. In total, there are 49 processes around the Process Groups and Knowledge Areas.
Thus, there are 132 tools and techniques referenced (PMI, 2017).

PRINCE2

The PRINCE2 manual was first released by the UK government in 1996. PRINCE2 is
widely used in UK and European Countries. PRINCE2 is a structured, process-based
project management method. It also extracts and focuses on critical elements crucial to the
successful assessment and completion of projects (Ledoux, 2014). PRINCE2 intends to
organize and supplement project management knowledge. According to Buehring (2015),
PRINCE2 comprises four integrated elements: principles, themes, processes, and tailoring.
There are seven principles, which are the building blocks upon which everything is based.
Moreover, it has seven themes, which are aspects of project management. There are also
seven processes, which describe who is responsible and accountable for what and when.
Furthermore, PRINCE2 guides how to tailor the method to different projects, depending on
their complexity, level of risk, size, and other factors. Also, this method is composed of 41
activities and 40 tools & techniques referenced.
 According to Siegelaub (2004), the eight elements of PRINCE2 are Business Case,
Organization, Plans, Controls, Management of Risk, Quality in a Project Environment,
Configuration Management, and Change Control. All components and processes in
PRINCE2 are integrated into a single flow, which explains the relationships among all of
them.

Differences between PMBOK & PRINCE2

Firstly, PMBOK is recognized as a standard, which defines a project as a temporary

endeavor undertaken to create a product, service or result singular. On the contrary,
PRINCE2 is a structured method, which represents a project as a management
environment created for the intention of delivering one or more business products
according to a specified business case (Matos & Lopes, 2013).

Secondly, both use distinct methodology or techniques. PMBOK is a descriptive

methodology; it explains in details the techniques for project management. On the other
hand, PRINCE2 is a prescriptive methodology (Matos & Lopes, 2013).

Thirdly, PMBOK adopts the orientation toward the processes used in developing the
project, while PRINCE2 has a directrix the final product, focusing on successful delivery
and quality (Matos & Lopes, 2013).

Lastly, both approaches consider the project manager differently in terms of relevance.
PMBOK sees a project manager as a person responsible for meeting the goals; in contrast,
in PRINCE2, the project manager is always subordinated to the project board (Matos &
Lopes, 2013).

Similarities between PMBOK & PRINCE2

According to Jaziri (2018), the synergies between PRINCE2 and the PMBOK are many.
First, in terms of enterprise environmental factors, both methodologies identify the
organizational culture and the portfolio context, thus, the human resources and their
availabilities are considered, they are included within the different processes and stages.
Second, in organizational process assets, both identify a variety of organizational process
assets to be used by the Project Manager. Third, in terms of knowledge areas, both
recognize risk and quality as the chief knowledge areas; moreover, they identify that the
main project criteria are connected and could be traded off against each other; furthermore,
both emphasize the importance of updating the project plans. Fourth, in the process groups
feature, PMBOK and PRINCE2 acknowledge the importance that some projects would
include adapting the set of processes with the special phases; thus, both delegate a certain
authority to the client to make special decisions inter-phases. Last, talking about roles and
responsibilities, they highlight the importance of project governance as a framework
including processes, structure, decision-making models and tools for managing the project.

Risk management in PRINCE2

PRINCE2 defines risk as an unpredictable event or set of events that will affect the
accomplishment of project objectives (Shinde, 2019). In PRINCE2, Project risk consists of
a combination of the probability of a perceived threat or opportunity occurring and the
intensity of its impact on the project objectives (Shinde, 2019).

PRINCE2 recommends a risk management procedure in five steps:

 Identify
 Assess
 Plan
 Implement
 Communicate

In the first step, 'Identify,' the primary goal is to recognize the threats and opportunities
that may affect the project's objectives. In the second step, 'Asses,' one goal is to estimate
threats and opportunities to the project regarding their probability and impact. Another one
is to evaluate the effect of all the identified threats and opportunities on a project when
aggregated together. In the third step, 'Plan,' the primary goal is to prepare specific
management responses to the threats and opportunities identified. The fourth step's primary
goal,' Implement,' is to guarantee that the planned risk responses are actioned, their
effectiveness monitored, and corrective action is taken where responses do not match
expectations. In the last step, 'Communicate,' the goal is to guarantee that information
related to the threats and opportunities is communicated both within the project and
externally to stakeholders.

Risk management in PMBOK

The PMBOK’s Project Risk Management knowledge area contains 7 processes:

 Plan Risk Management

 Identify Risks
 Perform Qualitative Risk Analysis
 Perform Quantitative Risk Analysis
 Plan Risk Responses
 Implement Risk Responses
 Monitor Risks
 The first step ‘Plan Risk Management’ involves the production of a risk management
plan, a component of the overall project management plan. In Identify Risks, a list of
potential risks to a project’s cost, schedule, or any other critical success factor is created.
The Perform Qualitative Risk Analysis step involves prioritization of risks. Each risk on
the risk register is analyzed and a ranking assigned. Then an overall risk priority ranking is
found. In Perform Quantitative Risk Analysis, each task is assigned a probability estimate
for various scenarios, and then the probability of meeting the overall cost and schedule is
calculated. In the Plan Risk Responses step, after be defined the most important risks to the
project, an action plan is created. The Implement Risk Responses step happens during the
project execution phase. The issue log, risk register, and lessons learned register are
updated. In the last step, Monitor Risks, the risk register is monitored to ensure the analysis
remains current.

PRINCE2 and PMBOK comparison about project characteristics and

project management frameworks
 Both practices are tailorable. However, PRINCE2 is a methodology, and it has a
more practical approach for small-size projects.

 PMBOK provides a better mechanism for high client commitment projects, which
means that it is customer requirements-focused.

 Because PMBOK has a more robust communication management mechanism and

covers interpersonal skills, it can be useful to apply the PMBOK approach for large-
sized projects and newly created teams.

 The projects with a high level of outsourcing and comprehensive contracts are more
indicated to apply the management knowledge area of PMBOK.

 For the projects with a high level of stakeholder engagement, it is useful to apply
stakeholder management and stakeholder engagement techniques of PMBOK.

Conclusion
In summary, PMBOK is a highly descriptive comprehension of the PM Processes,
Tools, and Techniques. At the same time, PRINCE2 takes a prescriptive approach for
Project Management, complete with Templates, Roles, and Responsibilities of multiple
Stakeholders. PMBOK defines the collection of knowledge, which a project manager
should know. On the contrary, PRINCE2 is a method, which describes what the project
manager and other major stakeholders should know and should do in projects.
 Reference List

Buehring, S. (2015). PRINCE2 And PMBOK Guide | Comparison.

https://www.knowledgetrain.co.uk/resources/qualifications/prince2-and-pmbok-
guide-comparison

Jaziri, R., El-Mahjoub, O., & Boussaffa, A. (2018). Proposition of a hybrid methodology of
project management. American Journal of Engineering Research, 7(4), 113-127.
https://www.researchgate.net/publication/324517405_Proposition_of_A_Hybrid_M
ethodology_of_Project_Management

Karaman, E., & Murat, K. (2015). Comparison of project management methodologies. Int.

Journal of Applied Sciences and Engineering Research, 572–579.
https://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.695.1164&rep=rep1&type=pdf

Ledoux, J. (2014). Prince2 & PMBOK comparison demystified.

https://es.slideshare.net/CTESolutions/prince2-pmbok-comparison-demystified-
29846454

Matos, S., & Lopes, E. (2013). Prince2 or PMBOK – A question of choice. Elsevier
Enhanced Reader. https://doi.org/10.1016/j.protcy.2013.12.087

Project Management Institute. (2017). A guide to the project management body of

knowledge (pmbok guide) (Sixth, Ser. Pmbok guide). Project Management Institute.
https://ebookcentral-proquest-com.ezproxy.laureate.net.au/lib/think/detail.action?
docID=5180849

Roseke, B. (2018). Project risk management according to the PMBOK. ProjectEngineer.

https://www.projectengineer.net/project-risk-management-according-to-the-pmbok/

Shinde, A. (2019). What is risk as per PRINCE2 and how to manage it? World of Agile.
https://worldofagile.com/blog/what-is-risk-as-per-prince2-and-how-to-manage-it/
Siegelaub, J. M. (2004). How PRINCE2 can compliment PMBOK® guide and your
PMP®. Paper presented at PMI® Global Congress 2004—North America,
Anaheim, CA. Newtown Square, PA: Project Management Institute.
https://www.pmi.org/learning/library/project-management-methodology-
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