Prince2

Project management methodology focusing on organization, management and control. Explanation of Prince2 of CCTA. ('89)

What is the Prince2 Methodology? Description

The Prince2 project management method focuses on organization, management and control. Originally developed in 1989 by the Central Computer and Telecommunications Agency (CCTA) in the UK as a standard for IT project management, it is now widely used and is the "de facto" standard in the UK for project management. The latest version of the method, "PRINCE2", is a generic approach of project management, which is used for both IT and non IT projects.
 

PRINCE2 (PRojects IN Controlled Environments) is process-based, providing tailoring and scaleable changes towards effective management of projects. Each process is defined with: key inputs and outputs, objectives to be achieved, and activities to be carried out.

 
The method divides projects into manageable stages to encourage efficient control of resources and regular progress monitoring. PRINCE2 is "product-based", meaning the project plans are focused on delivering results, and not simply planning when activities are done. It is driven by the project's business case which should describe the justification, commitment and rationale for the deliverables or outcome. The business case should be reviewed to ensure the objectives are appropriate and are realized. It also provides a common language across a project and provides breakpoints within a contractual framework.
 

Origin of Prince2. History

Originally developed in 1989 by the Central Computer and Telecommunications Agency (CCTA) in the UK as a standard for IT project management.  CCTA was renamed to OGC (the Office of Government Commerce). The method was originally based on PROMPT, a project management method created by Simpact Systems Ltd in 1975. PROMPT was adopted by CCTA in 1979 as the standard to be used for all Government information system projects. When PRINCE was launched in 1989, it effectively superseded PROMPT within Government projects.

Usage of the Prince2 method. Applications

• All sorts of project management
• Both IT and non IT based projects

Steps in the Prince2 framework. Process

1. Directing a Project. Steps that Project Board members should take to provide effective support and steerage without excessive time commitment.
2. Starting Up a Project. How to qualify initial ideas and appoint a Project Board representing User, Supplier and Business interests.
3. Initiating a Project. How to fully qualify a project to ensure it is likely to meet its ultimate objectives, ensuring organizational buy in before major commitment of resources.
4. Controlling a Stage. The day to day steps a project manager should take to manage work, react to events and escalate major issues.
5. Managing Product Delivery. The steps teams should take to agree work packages, report on their progress, and deliver completed work.
6. Managing Stage Boundaries. How to prepare for Project Board reviews when progress and future plans are discussed, and out of tolerance conditions handled.
7. Closure. How to close down a project, how to handle follow on actions, how to handle post project benefit reviews.
8. Planning. How to plan, irrespective of when the planning is done.

Strengths of the Prince2 methodology. Benefits

• Structured method providing a standard approach to the management of projects, embodying proven and established good practices in project management.
• Being widely recognized and understood it provides a common language for project participants.
• Provides control in use of resources and to manage risk.
• Enables projects to have:
  • Controlled and organized start, middle and end;
  • Regular reviews of progress to plan and to Business Case;
  • Flexible decision points;
  • Automatic managerial control of any deviations from plan;
  • Involvement of management and stakeholders at appropriate points;
  • Encourages communication channels between the project, project management, and stakeholders.
• Brings benefits to individual projects, including:
  • Definition of roles and responsibilities at each level;
  • Reduced meetings and bureaucracy, through management by exception;
  • Appropriate levels of planning from high level long-term to low-level immediate term;
  • Separation of management activities from technical activities;
  • A better appreciation of project risks by all concerned;
  • Ways of managing changes, to reduce risk.

Limitations of Prince2. Disadvantages

• Prince2 does not cover contract management or people management. These are however covered by the bodies of knowledge from both PMI (the USA professional body) and APM (in the UK)

Assumptions of the Prince2 methodology. Conditions

• Projects are more successful when managed using a methodology.

Book: Managing Successful Projects with PRINCE2 - 2005 Edition -

Prince2 Special Interest Group

Visit the Special Interest Group

Prince2 Forum

- United Kingdom

PRINCE2 2009

"We have produced a video briefing covering the changes to PRINCE2 with the release of the new manual last week (16th June 09). Follow the link here to view: youtube.comwatch?v=OXRlfstrfwe "

3

- UK

Free PRINCE2 software

"Community Edition is the world's favourite PRINCE2 software and it is completely free to download and use for as long as you wish. It comes prepopulated with the Authentic PRINCE2 method, navigation diagrams, processes, templates and links through to loads more resources. You can also configuration manage your files and add more content including links, emails and files as your project progresses. Used by well over 30,000 users in 150+ countries, why not find out why it is so popular. Download today at projectinabox.org.uk/community.asp"

1

Tom Fitzpatrick - CANADA

PRINCE2 in North America

"I am a Consultant in Canada who has recently become Foundation and Practitioner certified and I am preparing a presentation for my company regarding the growth of PRINCE2 in North America. I am having a hard time finding any material with a North American focus and was hoping someone might be able to help me out. Thanks"

0

Charlie - UK

Other strengths of PRINCE2

"I think PRINCE2 also defines a clear goverance structure which is missing from PMI and APM. Governance removes the natural conflict of interest a PM may have to persist with projects, even though they will not deliver benefits in the business case - business environmental factors may have changed. (They may still be delivering to planned time cost quality). PM success is assumed to be measured on delivering projects. Governance removes this conflict of interest, and clearly designates ownership of the project to the governance, delegating responsibility for delivery to the PM."

0

René - NL

Prince2 Health Check

"I recently developed a new website with an automated Prince2 health check on it. The health check is based upon appendix D of the OGC's 2005 book. In this appendix D of the OGC's Prince2 (Managing Sucessful Projects) there is a wonderful health check which I have used for years to check the state of my projects. As programme manager I have used it to check my project managers and help them perform better. Every time I switched jobs I was surprised that I was the only one who had an automated Prince2 checklist. With this website I found an easy way to share my automated checklist with the world. I'm wondering if people like the healthcheck or not, so check it out at: healthcheck-online.com I'm really interested in your comments so leave a message in the guestbook or use the on site contact form."

0

Comment on this Page

Prince2 Education & Events

Compare with Prince2: OPM3  |  MSP  |  PMMM  |  IPMA Competence Baseline (ICB)  |  Gantt Chart

Return to Management Hub: Change & Organization  |  Program & Project Management

More Management Methods, Models and Theory