Frameworks and standards

PRINCE2: a structured method for managing projects

PRINCE2 is one of the world’s most widely used project management methods, and it is especially popular in the UK. Here is what it is, how it works and why it matters for service improvement.

In brief

What is PRINCE2?

PRINCE2 (PRojects IN Controlled Environments) is a process-based method for managing projects. It gives a clear structure for starting, directing, managing and closing a project, whatever its size or type.

PRINCE2 focuses on why a project is being done (the business case), who is responsible for what (a defined organisation of roles), and how it will be controlled (stages, tolerances and regular decision points).

It is designed to be tailored. A small internal improvement project might use a light version with a few simple documents, while a large programme might use it in full.

The current version, PRINCE2 7th edition, was published in 2023. It added a stronger focus on people and on sustainability, and introduced digital and data management guidance.

Key facts

Type: Project management method
Owner: PeopleCert
Current version: PRINCE2 7th edition (2023)
Certification for people: Yes, Foundation and Practitioner
Certification for organisations: No
Official site: peoplecert.org

Core ideas

The key ideas in PRINCE2

Seven principlesIncluding continued business justification, learning from experience, defined roles, managing by stages, managing by exception, focusing on products and tailoring.

Seven practicesBusiness case, organising, plans, quality, risk, issues and progress: the aspects of a project that must be managed throughout.

Seven processesFrom starting up and initiating a project, through directing and controlling stages, to closing it in a controlled way.

PeopleThe 7th edition puts people at the centre, covering leadership, teams, communication and managing change.

Management by exceptionAgreed tolerances for time, cost, scope and other factors let managers get on with the work and escalate only when needed.

SustainabilityProjects consider environmental, social and economic sustainability as part of performance, not as an afterthought.

Ownership and history

Who owns PRINCE2, and where did it come from?

PRINCE2 has its roots in the UK government. Its predecessor, PRINCE, was introduced in 1989 by the Central Computer and Telecommunications Agency (CCTA), the same body that created ITIL. PRINCE2 followed in 1996 as a generic method suitable for all types of project.

Like ITIL, PRINCE2 passed to AXELOS and, since 2021, has been owned by PeopleCert, which also runs its certification scheme. Major updates were published in 2009, 2017 and, most recently, the 7th edition in 2023.

Certifications

PRINCE2 certifications for individuals

PRINCE2 certifications are awarded by PeopleCert and delivered through accredited training organisations and online exams.

Entry levelPRINCE2 FoundationCovers the principles, practices, processes and terminology. The 7th edition exam is 60 minutes, closed book, with 60 multiple-choice questions and a 60% pass mark. No prerequisites.

AppliedPRINCE2 PractitionerTests the ability to apply and tailor PRINCE2 in realistic scenarios. It is an open-book exam and requires Foundation or an accepted alternative, such as PMP or an IPMA certification.

RelatedPRINCE2 AgileCombines PRINCE2’s governance and control with agile delivery approaches such as Scrum and Kanban, for projects that need both.

Please check PeopleCert’s website for current exam formats, prerequisites and renewal options before booking.

Benefits

Why organisations adopt PRINCE2

Projects stay justifiedThe business case is checked throughout, so projects that no longer make sense can be stopped early.

Clear rolesEveryone knows who sponsors, directs, manages and delivers the project, and who makes which decisions.

Better controlStages, tolerances and regular reporting give sponsors control without micromanagement.

A common languagePRINCE2 is widely known in the UK, particularly in the public sector, so teams and suppliers can work together quickly.

Lessons are learnedLearning from experience is built in, so each project benefits from the last.

Works with agileIts tailoring and PRINCE2 Agile guidance make it compatible with iterative delivery.

Who it is for

Who should use PRINCE2?

PRINCE2 can be used for any project in any sector, from IT system implementations and office moves to service improvement programmes. It is particularly common in the UK public sector and in organisations that work with it.

For service management, PRINCE2 is especially useful when introducing a new ITSM tool, running an ITIL adoption programme or preparing for ISO certification, all of which need clear scope, milestones and benefits tracking.

Roles that benefit most

Project and programme managers
Project sponsors and board members
Team managers and team members
Project support and PMO staff
Service managers leading improvement work

How it fits

How PRINCE2 works with other frameworks

ITIL describes how services are run and improved day to day; PRINCE2 manages the projects that create or change them.
COBIT includes objectives for managing programmes and projects, which PRINCE2 can help to meet.
DevOps and Agile can be combined with PRINCE2 governance, with PRINCE2 Agile providing detailed guidance.

How Northera helps

Improvement programmes under control

We plan and lead service improvement programmes using PRINCE2 and Agile methods, with defined scope, milestones and benefits tracking. Every Northera engagement runs with PRINCE2-based project controls, so you always know where things stand. See our services page for more.

Planning a service improvement programme?

Book a free scoping call and we will help you shape a programme with clear scope, milestones and benefits.

Book a free scoping call