PRINCE2 Foundation Guide

Introduction

PRINCE2 stands for PRojets IN Controlled Environments

The "2" denotes the major revision of the method, which was first developed by the Central Computer & Telecommunications Agency (CCTA) in 1989.

Inspired by Prince2 for Beginners : Prince2 Study Guide for certification & project management. By Bryan Mathis.

Benefits

Benefits of using PRINCE2

Benefit	Description
Broad applicability	Appropriate for any type of project.
Common language	Allows practitioners from widely varying environments to use the same vocabulary and methodology.
Product focused	Defines the expected outcome of the product and the quality standards used to evaluate it.
Ease of integration	Industries that use other project management models will find that PRINCE2 integrates easily with methods specific to one industry.
Clearly defined roles	All participants in the project know what is expected of each of them. Continuous monitoring: Project viability is evaluated at every phase of the development process.
Management by exception	Provides a framework for escalating problems, known as "exceptions," to the next level of management when they exceed a pre-defined tolerance.
Worldwide adoption and training	Numerous resources are available for learning and using PRINCE2 under expert tutelage.

Project definition

PRINCE2 project view

Benefit	Description
Change	PRINCE2 views projects as a pathway to change. Thus, if a task will introduce noticeable change within an organization, then it's very likely to be a project.
Temporary	A project has a clearly defined lifespan, beginning with the decision to move forward with it, and ending when the required product or result is created. Maintenance and minor updates are not part of the project. Major updates are separate projects.
Cross-Functional	Because more than one person or department will be affected by a project, it's important to pull together a cross-functional team from many different areas of the company to serve as a task force for the lifespan of the project.
Unique	Each project has its own unique set of characteristics that affect how it will be managed. Repetitive tasks that are done the same way repeatedly are not unique and aren't considered projects.
Uncertainty	In a project, there are just enough variables that it's impossible to predict everything about the outcome with 100 percent certainty. Uniqueness always produces uncertainty, and uncertainty always produces risk.

The 6 variables / performance targets

The 6 PRINCE2 performance targets

Target	Description
Costs	Every project has a budget, but that budget can vary, either up or down. The Project Manager must detect cost overruns as early as possible.
Timescales	Although ideally, every project should be finished before the deadline, that's not always the case. The sooner the Project Manager identifies a delay, the less inconvenient and costly it will be.
Scope	All stakeholders in the project should know what is expected to be delivered in the project, as well as what is not included. The Project Manager's job is to avoid "scope creep," which is the extension of the project's boundaries beyond its defined scope.
Quality	PRINCE2 judges quality by the product's suitability for the purpose it serves. Signs of a potential shortfall in quality should be addressed right away by the Project Manager.
Benefits	This is the overall purpose of the project and its ability to deliver a return on its investment (ROI). The Project Manager must thoroughly understand this purpose and regularly re-evaluate its potential ROI.
Risk	Uncertainty always produces some level of risk, and uncertainty is a characteristic of all projects. The question for the Project Manager is to determine what level of risk is acceptable to the project's stakeholders, and then build in strategies for reducing that risk.

The 4 Elements of PRINCE2

The 7 principles

A set of 7 broad "best practices" or core values designed to ensure that the project is being managed properly under the PRINCE2 method. All 7 principles must be applied if the project is truly being managed according to PRINCE2.

Themes

A set of 7 specific areas of project management that are continuously and simultaneously monitored and updated throughout the project.

Processes

A series of 7 steps that are carried out in chronological order, starting with the beginning of the project and ending with its closure.

Tailoring

Although PRINCE2 is applicable to any project, it must be tailored to fit a project's type and size.