Chapter 3: Principles

1. 3.5 Principles: Manage By Stages

1.1. A PRINCE2 Project is planned, monitored and controlled on a stage-by-stage basis.

1.2. These stages are referred to as Management Stages, as they are separated by Decision Points (also known as “Control Points”) by the Project Board.

1.3. At the end of each stage, the Project Board assesses the performance of the last stage, the Business Case, the plan for next stage, and decides whether to proceed with the next stage.

2. 3.6 Principles: Manage by Exception

2.1. Manage by Exception is used by each level in the Project Organization to manage the level below.

2.2. The layer below should only notify the above management layer if there is a big issue that is outside their tolerance.

2.3. PRINCE2 lists 6 tolerances that can be set. These are Time, Cost, Quality, Scope, Risk and Benefit.

3. 3.7 Principles: Focus on Products

3.1. A PRINCE2 project focuses on the definition and delivery of products, in particular, their quality requirements.

3.2. Good Product Descriptions provides clarity, as it defines the product’s purpose, composition, derivation, format, quality criteria and quality method.

4. 3.8 Principles: Tailoring or Tailor to suit the Project Environment

4.1. A PRINCE2 project should be tailored to suit the project’s size, environment, complexity, importance, capability and risk.

4.2. The Project Initiation document should describe how the PRINCE2 method is tailored for that particular project.

5. 3.1 Introduction to principles

5.1. From a PRINCE2 point of view, a Principle is a core value that must always exist in a PRINCE2 project.

5.2. There are seven principles

6. 3.2 Principles: Continued Business Justification

6.1. A PRINCE2 project must have continued business justification.

7. 3.3 Principles: Learn from Experience

7.1. PRINCE2 project teams should learn from previous projects.

7.2. “Learn from experience” covers the full lifetime of the project, from Starting Up a Project, as the project progresses until the Project Closes. Any lesson learned during the project should be documented.

8. 3.4 Principles: Defined Roles and Responsibilities

8.1. PRINCE2 states that a project should have defined and agreed roles and responsibilities within an organization structure that engages the Business, User and Supplier Stakeholder interests.

8.2. A good Project Management structure answers the question “What is expected of me and what can I expect from others?