What is PRINCE2 Project Management?

Project Management is basically a set of principles that are supposed to help the Project Manager to find out and apply the most suitable method to execute, manage, and control the work during every phase of the project. We all know there is always more than one way of doing everything, which is the same with project management. You can choose and use the most appropriate method to manage your project. The goal of every Project Manager is to deliver a successful project on time and within the scope and budget of the project. And to this purpose, a particular Project Management methodology is chosen to manage the project efficiently. No set standard or common Project Management methodology can be used in all types of projects in every industry. 

Different Project Management methodologies work for different projects and industries. Any of these methodologies can be used individually and adhered to rigidly or two or more methodologies can be combined to be used as hybrid Project Management due to the uniqueness of a project or the project environment. But the point here is that unless you know the Project Management methodology, you will not be able to apply or use it. And this is why the people involved in Project Management need to learn different Project Management methodologies. 

And among the different Project Management methodologies being used worldwide, PRINCE2 is one of the more popular methodologies. It is being used in over 150 countries and is one of the most recognized universal project management methods. In this article, we will learn about the PRINCE2 Project Management methodology and its different aspects, including its principles. We will also understand why PRINCE2 is such a widely used and popular Project Management methodology. But first, let us know what is PRINCE2.

Definition of PRINCE2 Project Management

Before understanding the PRINCE2 methodology, let us know what PRINCE2 means. PRINCE2 is an acronym for Project IN Controlled Environment. It is a process-based method of managing projects more effectively, and this process-based approach focuses on organization and control throughout the project lifecycle. The PRINCE2 methodology divides projects into small stages and clearly describes the roles and responsibilities for managing resources and risks while using seven processes to manage the project lifecycle. PRINCE2 is a well-structured Project Management methodology that makes controlling the complete work process a lot easier.

By splitting the entire project into small stages, the PRINCE2 methodology needs a project management framework with a detailed project plan before starting the project and every stage of the project is structured. This methodology helps the Project Manager divide the project into smaller stages so that each stage is more manageable and controllable without any constraints regarding the type or scale of the project. The best part of this methodology is that it is flexible and you can customize it according to your specific needs. 

The PRINCE2 Project Management methodology was first established by the Central Computer and Telecommunications Agency (CCTA) in 1989. Its development was based on another methodology the United Kingdom government applied at that time, the Project Resource Organization Management Planning Technique or PROMPT. It was mainly used for information system projects. Initially, PRINCE2 had started as just PRINCE as its first iteration was focused on managing IT projects but slowly, it was realized that PRINCE techniques could be applied to other types of projects also. So, in 1996, it was rewritten with the removal of IT-specific language and was reintroduced as PRINCE2 in the form of a Project Management methodology. And today, it is being extensively used across the globe.

Now that we know what the Prince2 methodology is, we move on to the principles of PRINCE2. As mentioned earlier, PRINCE2 has seven principles. We will examine each one of these principles on which the PRINCE2 methodology is built.

Also, Check:Advantages of PRINCE2 Methodology

What are the 7 principles of PRINCE2?

The seven principles of PRINCE2 form the basis of this methodology. If a project is to be considered a PRINCE2 project, all these principles must be applied. These seven principles of PRINCE2 are described below:

Business justification:

There should be a business justification for every project, and for this the most important document is the Business Case. To ensure that the project continues to have a business justification, this document is regularly reviewed and revised all throughout the project lifecycle. If it is observed at any stage of the project that it is not viable, it ends. This business justification must include the clear need for the project, a defined customer, practical benefits, and a detailed evaluation of the cost involved. This implies that the project must deliver value to the customer and would bring a good return on investment. All these factors must be considered carefully to ensure the project makes good business sense.

Learning from experience:

Learning continuously from experience is vital and good for achieving success. The same applies to the projects also. New lessons should be learned by the team from every stage of the project and documented so that future improvements can be made in the project work. Every project has a lesson log attached to it. This is used as a depository for the lessons the team has learned during past projects so that the mistakes of those projects are not repeated. It works as a reference book throughout the project lifecycle and the team can refer to it whenever required. So, at every step of the process, lessons are learned and recorded for better work in the future.

Defining roles and responsibilities:

It is essential to clearly define the roles and responsibilities of everyone involved in the project so that everyone knows who is doing what and is responsible for what. This way, everyone would have a clear idea of their place in the project and what they are supposed to do and would know what others in the team are doing so there would be no clash of roles and responsibilities. This would ensure the smooth progress of the project. There could be more than one role for some team members or the roles could be shared. Clearly defining the roles would go a long way in avoiding confusion. The structure of people in a project has four levels - Corporate, Project Board, Project Manager, and team. Clarity about roles and responsibilities at each level is essential so that there is no crossing the line at any level.

Managing by stages:

The work in the project should be planned in stages. The project is split into individual phases. Though planned in advance, the PRINCE2 project works with a stage-to-stage process. The time between the stages is utilized to review the lessons learned until then and ensure the project is on course to achieve its goals. Risk and project plans are reviewed and updated when transitioning from one stage to the other. During these periodic reviews, it is made sure that the deadlines and milestones are being achieved.

Managing by exception:

Here, the Project board has a role to play as it is authorized to manage by exception. Although the board members generally do not have direct involvement in the routine work of the project, they set basic criteria like time, cost, scope, and risk. There are tolerances available for the criteria within which the project has to operate. The board members delegate the actual work to the Project Manager, who is responsible for overseeing the entire project. If issues come up at any project stage that affect the set criteria or requirements, the board members may step in as they have the authority to intervene and manage the project as they deem fit. 

Focus on products:

Quality must be a prime concern in any project. Quality is always of paramount importance if a project is to be successful. So, the project team must constantly focus on the quality of the deliverables throughout the project lifecycle to achieve the best possible outcomes. A quality register is maintained throughout the project to check deliverables against the actual requirements. 

Adjust according to the project environment:

PRINCE2 is flexible. It is not a one-size-fits-all kind of project methodology. Therefore, this method must be adjusted according to the requirements of each individual project. Factors like size, complexity, importance, cost, time, and risk vary for every project and make the project environment. The team's planning and size would also be different for each project. The project is adjusted according to this project environment at the starting stage itself and this adjustment continues at every stage. Therefore, the PRINCE2 methodology must be adjusted according to the specific requirements of every project.

These are the seven principles of PRINCE2 Project Management. In addition to these seven principles, a PRINCE2 project has seven phases. Let's have a look at them.

Also, check:  PRINCE2 Project Board

The 7 phases of a PRINCE2 project

Start up the project:

A new project request detailing the business justification of the project is submitted. It is a rough synopsis of what the project is about. This is called project mandate. This mandate is evaluated to see if the project is viable for the organization and can be delivered. On approval of the mandate, a more detailed brief is submitted to the company.

Directing the project:

The project board reviews and assesses the project brief. It then decides how the project is to be executed and what the team's requirements are to move ahead. The board may alter some requirements to adjust for resources and time. 

Initiating the project:

The project board selects a Project Manager to lead the project and create an even more detailed project plan. The Project Manager, in turn, creates a project initiation document that includes the project plan and basic criteria for factors like cost, benefits, scope, quality, and risk. The project board then decides if the document meets everyone's approval.

Controlling the stages:

In this phase of the PRINCE2 project, the Project Manager breaks the project into smaller manageable tasks. These small parts of the project are then assigned to the individual team members for work and completion. The Project Manager oversees every part of the project and intervenes if and when required. During this phase, the Project Manager regularly reports the project's progress to the board.

Managing product delivery:

In this phase, the quality of the project is managed. The Project Manager monitors and ensures that the work progresses smoothly and the quality of the deliverables is maintained as set in the quality register. The project board then reviews the deliverables, deciding whether to approve them or request changes.

Stage boundary management:

At the end of every stage of the project, the project board and the Project Manager review the progress of the project to see if the project is moving as planned and all the requirements are being fulfilled. Based on that review, the project board decides whether the project should continue to move forward or the team should stop working on it and the project should end.  

Closing:

So, the last phase of the PRINCE2 project is the closing. Once the project is completed, it's time to close it. In this phase, the Project Manager completes all the documentation, results, and reporting and ensures all the goals and objectives have been met within the given timeframe and budget before finally ending the project. Simpliaxis ensures individuals are proficient in implementing PRINCE2 principles and methodologies, empowering them to excel in their Project Management careers. Simpliaxis also offers project management courses tailored to meet the diverse needs of aspiring Project Managers, providing comprehensive training and guidance to help them succeed in the dynamic field of Project Management.

So, we now know what PRINCE2 Project Management is and have learned about its principles and phases. The PRINCE2 methodology provides many benefits and works at a higher level than similar methodologies. It explicitly describes every individual's roles and responsibilities and clarifies the work process. As we have seen from its principle, it is quite a standardized approach to project management that ensures that work is systematic. That is why the PRINCE2 methodology is highly recommended for Project Managers worldwide.