The PRINCE2™ Project Management Method

The following pages explain the scope, structure and benefits of PRINCE2™.

1. Definition of PRINCE2™ 
2. Key features of PRINCE2™
3. Structure of PRINCE2™
4. What is a project?
5. Projects v Products
6. Scope of PRINCE2™
7. Introduction multiple-choice questions

The PRINCE2™ method is owned by the UK Government and can be used free of charge in the public domain.

PRINCE2™ is simply a structured project management method designed for use on a wide range of projects, from a 'programme' of related large projects down to a single, small project.

Although the approach to managing a large, expensive, high-profile, business-critical project will be very different to that of managing a small, low-risk project, the PRINCE2™ method is extremely flexible and can be tailored to suit projects of different size and complexity.

PRINCE2™ adopts good project management principles including:

All interested parties should maintain genuine commitment to the project, and must be clear about:

• Why the project is needed
• What is intended to achieve
• How the outcome is to be achieved
• Individual role responsibility to achieve the desired outcome

The key features of PRINCE2™ are as follows:

Its focus on business justification - known as the Business Case.	A defined Organisation structure for the Project Management Team.
The concept of 'management by exception' - by giving delegated limits of authority to a Project Manager, it enables senior managers to be kept fully informed of the project status without their having to attend regular, time-consuming meetings.
Its focus on WHAT, WHY, WHEN, WHERE and for WHOM a project is to deliver.	Its emphasis on being process-driven in a controlled manner.
Its emphasis on splitting the project into manageable stages.	Its product-based planning technique.
Early identification and management of risk.	Its flexibility to be applied at a level appropriate to the specific project.

The PRINCE2™ structure comprises:

In order to be able to apply the PRINCE2™ method, it is necessary to be clear about the definition of a project.

PRINCE2™ defines a project as:

"a management environment that is created for the purpose of delivering one or more business products according to a specified business case"

(PRINCE2™ text - ©Crown Copyright 2005 Reproduced under licence from OGC)

A PRINCE2™ project, therefore, has the following characteristics:

1. A defined life span and amount of resources.

2. Defined and measurable business products.

3. An organisation to direct and manage the project.

As we have identified, a project is undertaken to create a product(s), so by nature, a project lifecycle is a temporary structure which plans, develops and hands over a product.

During the life of a product, it may be subject to several projects from an initial feasibility study, through to production and possibly many modifications until, after many months or years of its use, the product is scrapped.

For any one project, the PRINCE2™ method starts with some pre-project preparation before work starts on the product.

It is important to re-emphasise that PRINCE® is a method that is entirely flexible and can be tailored to fit different types and size of project.

The PRINCE2™ method fits neatly into a business and project environment. It was not intended to, nor does it, cover all aspects relevant to project management.

Techniques and tools needed will vary according to project type and size.

• Human resource management skills, such as motivation, delegation and team leadership.
• Information Technology individual skills.
• Time management techniques.
• Generic planning techniques (e.g Gantt charts, Activity network, etc.).
• Risk management strategies.
• Creation and management of Quality Management and Assurance System.
• Contract and tendering procedures.
• Budget control and Business Case management procedures.

PRINCE2™ covers the management of the project and the resources required to carry out the activities to create the product(s). It is compataible with in-house procedures and techniques where a company has ISO9001:2000 accreditation for a quality management system and/or a corporate risk management strategy. Fit the PRINCE® method to your project, never the other way around. But remember, the PRINCE2™ method is not a magic recipe for success (working with us at Scoll Methods could be!). Used properly, it will help you to run controlled and successful projects.

Introduction to PRINCE2™ - Multiple-choice questions

To conclude this introduction, we invite you to have a go at answering the following multiple-choice questions to confirm your understanding of the PRINCE® method so far. Note your answers and then select the link to the answers.

Which of the following is a key feature of PRINCE2™?

1. Free of charge
2. Owned by the UK Government
3. Taught by Scoll Methods
4. Invoke Management by Exception

Which one of the following is not specifically part of the PRINCE2™ structure?

1. Components
2. Processes
3. Activities
4. Techniques
5. Templates

Which of the following is not a specific PRINCE2™ technique?

1. Product-based planning
2. Gantt charts
3. Change control
4. Quality Reviews

PRINCE2™ defines a project as "a management environment that is created for the purpose of delivering one or more business products according to..."

1. a specified Business Case
2. the customer's requirement
3. the supplier's ability to deliver
4. an agreed budget and timescale

How well did you do? Here are the answers.

Answers to the Introduction multiple-choice questions

Which of the following is a key feature of PRINCE2™?

1. Free of charge
2. Owned by the UK Government
3. Taught by Scoll Methods
4. Invoke Management by Exception

All are correct - they are all key features of PRINCE2™.

Which one of the following is not specifically part of the PRINCE2™ structure?

1. Components
2. Processes
3. Activities
4. Techniques
5. Templates

3. is correct. The PRINCE® method is very much Component- and Process-driven, and offers various techniques and templates to assist the planning and general management of the project. PRINCE2™ is not particularly concerned about the type of Activities which have to take place, and therefore excludes this from the structure of the method.

Which of the following is not a specific PRINCE2™ technique?

1. Product-based planning
2. Gantt charts
3. Change control
4. Quality Reviews

2. is correct. Gantt charts are a long-established technique, and are concerned with planning Activities which have to take place in order to create the products. As we saw in the previous answer, Activities are not specifically part of the PRINCE® structure.

PRINCE2™ defines a project as "a management environment that is created for the purpose of delivering one or more business products according to..."

1. a specified Business Case
2. the customer's requirement
3. the supplier's ability to deliver
4. an agreed budget and timescale

1. is correct. As we have already seen, it is the Business Case which justifies the setting up and continuation of the project that exists to create products and beneficial change within an organisation.

Move on now to the next section for a brief overview of The PRINCE2™ Components and Processes.