What is PRINCE2?

Discover how PRINCE2 can help you achieve your goals and manage projects effectively. Use the quick links to scroll to a relevant section.

PRINCE2 Definition

PRINCE2 (an acronym for PRojects IN Controlled Environments) is a de facto process-based method for effective project management. Used extensively by the UK Government, PRINCE2 is also widely recognised and used in the private sector, both in the UK and internationally. The PRINCE2 method is in the public domain, and offers non-proprietorial best practice guidance on project management.

Key features of PRINCE2:

• Focus on business justification
• Defined organisation structure for the project management team
• Product-based planning approach
• Emphasis on dividing the project into manageable and controllable stages
• Flexibility that can be applied at a level appropriate to the project.

PRINCE2 History

PRINCE was established in 1989 by CCTA (the Central Computer and Telecommunications Agency), since renamed the OGC (the Office of Government Commerce). In June 2010, the Office of Government Commerce Best Practice Management functions moved into the Cabinet Office.

PRINCE was originally based on PROMPT, a project management method created by Simpact Systems Ltd in 1975, and adopted by CCTA in 1979 as the standard to be used for all Government information system projects.

When PRINCE was launched in 1989, it effectively superseded PROMPT within Government projects. PRINCE remains in the public domain and copyright is retained by the Crown. PRINCE2 was published in 1996, having been contributed to by a consortium of some 150 European organisations.

How Can PRINCE2 Benefit You?

Using PRINCE2 provides you with greater control of resources, and the ability to manage business and project risk more effectively. This will benefit:

• Individuals seeking leading project management skills and greater employment prospects
• Project managers
• Directors/executives (senior responsible owners) of projects, and
• Organisations.

For individuals, PRINCE2 certification is an invaluable asset to your career as it increases employment prospects and helps you do your job more effectively. This is true for any job function. A 2016 AXELOS survey questioned individuals in project management and other roles, such as IT, senior management and operations. They reported that "regardless of function, candidates do find that PRINCE2 is valuable to their career".

How Can PRINCE2 Benefit Your Organisation?

For organisations, PRINCE2's formal recognition of responsibilities within a project, together with its focus on what a project is to deliver (the why, when and for whom) provides your organisation's projects with:

• A common, consistent approach
• A controlled and organised start, middle and end
• Regular reviews of progress against plan
• Assurance that the project continues to have a business justification
• For further benefits, visit "Why PRINCE2?"

PricewaterhouseCoopers, in a 2007 survey, found that "higher-performing projects are significantly more likely to be staffed with certified project managers". Out of all the certificates that enable higher-performing projects, Arras People's 2011 survey named PRINCE2 the most popular.

The 2016 PRINCE2 report by AXELOS studied the level of PRINCE2 adoption by different organisations. They found an even size split in the level of PRINCE2 adoption, regardless of the organisation's size. PRINCE2 is useful for small or large companies, especially because it's so adaptable and compatible with the likes of agile.

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The History of PRINCE2

PRINCE2 today is the de facto project management standard. The UK government in the 1980s demanded a solution to common project problems. They were struggling to deliver on time, under budget, within scope and up to quality. Like many private companies, they wanted a method focused on deliverables.

1975 – PROMPT and the Origins of PRINCE2

While PRINCE2 was formalised by the UK government, it was inspired by a private sector framework. Simpact Systems Ltd developed PROMPT, which contained a system development module called PROMPT II. PROMPT stood for Project Resource Organisation Management and Planning Techniques. Simpact developed PROMPT in response to computer projects overrunning on time and budget.

To make IT projects more manageable, the PROMPT lifecycle broke them into phases:

• Initiation
• Specification
• Design
• Development
• Installation
• Operation

1989 – PRINCE, Laying the Groundwork for PRINCE2

The UK government, looking for an IT project management method, licensed the use of PROMPT from Simpact. The Central Computer and Telecommunications Agency only fully implemented the PROMPT II module, and adjusted it to create a new standard. Like PROMPT II, it was meant for IT project management.

Their variation of PROMPT II was named ‘PRINCE’ in April 1989. Originally, it stood for ‘PROMPT II IN the CCTA Environment’. Civil servants later changed the acronym to ‘PRojects IN Controlled Environments’. Changes from PROMPT II introduced Critical Path Analysis and project managers.

PRINCE was released into the public domain in 1990, where it was more widely adopted. The UK government used it for major non-IT projects and it was taking hold in the private sector. However, the method had a reputation for being too rigid and unsuited to smaller projects.

1996 – PRINCE2 Is Published

PRINCE2 was developed in consultation with about 150 European organisations. This virtual committee agreed on what they considered best practice. Along with the general framework of PRINCE, this advice formed PRINCE2.

PRINCE2 is a generic project management framework, unlike PRINCE, which was designed for IT projects and adopted by other industries. To be suitable for every project, PRINCE2 has to be scaled down from PRINCE. For example, PRINCE demanded separate Business Assurance, Technical Assurance and User Assurance Coordinators. PRINCE2 doesn’t call for this because it’s too demanding for smaller projects.

The global market responded well to this new framework. PRINCE2 retains its focus on the final product, but is more tailorable to different project environments. Because of this, PRINCE2 has become the de facto project management standard.

2009 – A major revision

PRINCE2 went through a number of revisions starting in 1998. In 2002, the international user community started consulting on PRINCE2 updates. The biggest revision, in 2009, made PRINCE2 more simple and customisable. The 2009 version also introduced the seven principles. PRINCE2’s 2013 ownership change to AXELOS Ltd led to PRINCE2 Agile. It’s thanks to the 2009 revision that PRINCE2 is now simple and light enough to make this newer course not just possible, but intuitive.

2017 – The second major revision

AXELOS published its next major update in 2017. The new guidance focuses on scalability and flexibility. PRINCE2 from the beginning supported and encouraged tailoring. The 2017 update clarifies the bare minimum for a project to qualify as PRINCE2. It then shows examples, hints and tips about how to adjust these core principles to your project.

Despite being major revisions, the name PRINCE2 hasn’t changed. Instead of referring to PRINCE3, ‘PRINCE2:2009 Refresh’ and ‘PRINCE2 2017 Update’ were chosen because the core principles behind PRINCE2 remain the same.

PRINCE2, time-tested but updated, has proven its value over the decades. See the list of PRINCE2 courses we have on offer and you can be qualified in the de facto project management standard. For any questions or queries, please visit our contact page.

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