PRINCE2

A process-based method for effective project management.

Practices Employed

• Approvals: PRINCE2 uses stages and explicit sign-offs for continued business justification. Referred to as:
  • Stage Gate Reviews
• Change Management: A formal change control process is central to PRINCE2 to manage scope.
• Estimating: Planning in PRINCE2 involves detailed estimation of time and cost for each stage.
• Issue Management: Issues are captured in an Issue Register and managed through formal procedures.
• Requirements Capture: Requirements are defined in the Project Brief and Product Descriptions.
• Stakeholder Management: The Project Board ensures representation of business, user, and supplier interests.
• Terms Of Reference: The Project Initiation Documentation (PID) defines the project's parameters and governance.

Addresses / Mitigates

Risk	Practices
Agency Risk	Estimating: Helps in planning and managing staff usage effectively. Stakeholder Management: Aligns the goals and expectations of various stakeholders, reducing conflicts.
Communication Risk	Approvals: Provides formal communication of acceptance and readiness. Issue Management: Facilitates communication about issues and their status among team members. Requirements Capture: Helps in explaining exactly what should be built. Stakeholder Management: Facilitates clear and consistent communication between stakeholders. Terms Of Reference: Ensures that the project scope is clearly communicated to all parties.
Coordination Risk	Change Management: Specifically addresses coordinating change in a structured way. Requirements Capture: Reduces coordination risks around deciding what should be built. Stakeholder Management: Allows stakeholders to coordinate on their demands. Terms Of Reference: Provides a clear framework for coordination among team members and stakeholders.
Deadline Risk	Estimating: Provides realistic timelines helps hit important deadlines.
Feature Fit Risk	Requirements Capture: Ensures that features align with client needs and expectations.
Funding Risk	Estimating: Accurate estimation helps in securing and managing funding.
Implementation Risk	Approvals: Ensures that work meets the required standards and specifications before progressing. Change Management: Avoid bugs from creeping into the system. Issue Management: Tracks and manages defects and issues, ensuring they are resolved.
Internal Model Risk	Stakeholder Management: Talking to stakeholders helps to share and socialise Internal Models.
Operational Risk	Change Management: Ensures changes are implemented smoothly and systematically. Issue Management: Provides a systematic approach to managing and addressing operational issues.
Reputational Risk	Issue Management: Tracking and fixing bugs improves software reputation.
Security Risk	Issue Management: Track and Prioritise Security Issues and Incidents.

Attendant Risks

Attendant Risk	Practices
Agency Risk	Estimating: Can put unnecessary pressure on staff to hit deadlines.
Communication Risk	Stakeholder Management: Misaligned communication strategies can lead to misunderstandings and conflicts.
Complexity Risk	Issue Management: Managing an excessive number of logged issues can add complexity.
Coordination Risk	Approvals: Requires coordination among stakeholders to provide timely sign-off. Terms Of Reference: Requires alignment and coordination among all parties to agree to the terms.
Deadline Risk	Estimating: Can create dependencies on estimated timelines and resources.
Process Risk	Approvals: Adding approvals to a process increases the number of stakeholders involved and can impact process performance. Change Management: Change control is a process, and therefore is a source of process risk. Issue Management: The issue lifecycle from creation to resolution is a process, therefore a source of process risk.
Schedule Risk	Approvals: Waiting for approvals can introduce delays in the project timeline. Change Management: Managing changes systematically can introduce delays. Estimating: Inaccurate estimates can lead to schedule overruns. Issue Management: Managing and resolving logged issues can impact project timelines. Requirements Capture: Thorough requirements capture can be time-consuming. Terms Of Reference: Can take time from the schedule to build.

Description

"PRINCE2 (Projects IN Controlled Environments) is a structured project management method and practitioner certification programme. PRINCE2 emphasises dividing projects into manageable and controllable stages." - PRINCE2, Wikipedia

PRINCE2 is widely used in the public sector and industries requiring high levels of governance and control. It provides a clear framework for roles and responsibilities, as well as a standardized set of processes for starting, directing, and closing projects. It is designed to be adaptable to the specific needs of different projects while maintaining a consistent approach to management.

See Also