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PRINCE2

PRINCE2 (PRojects IN Controlled Environments) is a structured, process-based project management method — widely used in the UK, Europe and government — organised around seven principles, seven themes and seven processes.

PRINCE2 is a scalable, process-driven project management methodology that describes how to organise, manage and control a project from start to finish. It is built on seven principles (such as continued business justification and manage by exception), seven themes (business case, organisation, quality, plans, risk, change, progress) that must be addressed throughout, and seven processes that map to the project lifecycle. PRINCE2 is deliberately method-agnostic about delivery technique — it can wrap Agile or plan-driven work — and emphasises governance, defined roles and business justification at every stage.

PRINCE2 at a glance

Category
Methodologies & Frameworks
Type
Methodology / framework
Appears in
1 section
Related
Lean Six Sigma, PRINCE2 Agile, Six Sigma

Why it matters

PRINCE2 provides a common, teachable governance framework that scales from small to very large projects and is method-neutral about how the work itself is done. Its stage-gate structure and "manage by exception" model give senior management control without micromanagement: they set tolerances and are only pulled in when those are breached. Its clear roles and mandatory business case keep projects justified and accountable.

When to use it

PRINCE2 suits organisations that need consistent governance across a portfolio of projects, and environments — especially UK/EU public sector — where it is a de facto standard. It fits projects that benefit from formal stages and defined roles. Very small or highly informal efforts may find its full apparatus heavy, though it is designed to be tailored down.

How to use it

  1. Apply the seven principles as non-negotiable checks (e.g. continued business justification).
  2. Address the seven themes continuously — business case, organisation, quality, plans, risk, change, progress.
  3. Run the seven processes: starting up, directing, initiating, controlling a stage, managing product delivery, managing stage boundaries, closing.
  4. Manage by exception: set tolerances for each stage and escalate only when they are threatened.
  5. Tailor the method to the project’s size and context rather than applying it wholesale.

Example

A government department runs a records-digitisation project under PRINCE2. The project board (executive, senior user, senior supplier) sets stage tolerances; the project manager runs each stage and reports by exception. At each stage boundary the business case is re-checked before the board authorises the next stage — so funding is committed one stage at a time.

Template

PRINCE2 uses defined management products: a Project Initiation Documentation (PID), business case, risk register, quality register and highlight/exception reports.

Browse templates →

Tools

Microsoft ProjectSmartsheetConfluencePRINCE2-aligned PPM tools

FAQs

What is the difference between PRINCE2 and PMP?
PRINCE2 is a prescriptive method (how to run a project, with defined processes and roles); PMP/PMBOK is a broad body of knowledge and a certification of competence. Many practitioners hold both — they complement rather than compete.
What does "manage by exception" mean?
Senior management sets tolerances (for time, cost, scope, etc.) and delegates day-to-day control to the project manager. They are only involved when a tolerance is forecast to be exceeded — efficient governance without micromanagement.
Can PRINCE2 be used with Agile?
Yes — PRINCE2 Agile combines PRINCE2 governance with Agile delivery, keeping the stages and business case while using Agile methods to do the work.

Alternatives

  • PMBOK / PMP — knowledge-based standard rather than a method
  • PRINCE2 Agile — the Agile-integrated variant
  • ISO 21502 — international project management guidance