The 7 Principle’s are:

1. Continued Business Justification

  • Explanation: This principle mandates that a valid, justifiable reason must exist for initiating a project, and this justification must remain valid throughout the project’s entire lifecycle. The core of this justification lies in the project being desirable (benefits outweigh costs and risks), viable (capable of being delivered), and achievable. This rationale is formally documented and maintained in the Business Case.

  • Application: The Business Case is not a static document created only at the start. It is actively reviewed and updated at key points, particularly at the end of each management stage (stage boundaries), to ensure the project continues to offer value for money and aligns with organizational objectives. If the justification weakens or disappears, the project should be formally stopped or undergo significant change. This principle is intrinsically linked to, and supported by, the Business Case theme.

2. Learn from Experience

  • Explanation: PRINCE2 emphasizes the importance of continuous learning. Project teams are obligated to actively seek out lessons from previous similar projects and to capture and apply lessons learned as the current project progresses. This fosters a culture of continuous improvement within the organization.

  • Application: Lessons should be sought during the ‘Starting up a Project’ process by reviewing past projects. Throughout the project, experiences (both positive and negative) should be systematically recorded, often in a Lessons Log. These lessons inform decision-making during the project. Formal Lessons Reports are typically produced at the end of stages and the project’s conclusion to benefit future projects. Every individual involved in the project shares the responsibility for identifying, documenting, and applying lessons.

3. Defined Roles and Responsibilities

  • Explanation: A cornerstone of PRINCE2 is the requirement for a clearly defined and agreed-upon organizational structure. This structure must detail all roles within the project management team, their specific responsibilities, and the lines of communication and authority. Crucially, this structure must engage the three primary stakeholder interests: Business (ensuring value for money), User (representing those who will use the product and realize benefits), and Supplier (providing the necessary resources and skills).

  • Application: The PRINCE2 organizational structure typically includes four distinct levels: Corporate or Programme Management (outside the project team), the Directing level (Project Board), the Managing level (Project Manager), and the Delivering level (Team Managers and team members). Specific roles like the Project Board members (Executive, Senior User, Senior Supplier), Project Manager, Team Manager, Project Assurance, and Project Support are defined with explicit responsibilities. This clarity ensures clear accountability, facilitates efficient decision-making, avoids ambiguity or duplication of effort, and supports the Organisation theme. Reflecting modern practices, PRINCE2 7 also places increased emphasis on fostering effective relationships between these roles, recognizing that trust and collaboration are vital for success.

4. Manage by Stages

  • Explanation: PRINCE2 mandates that projects are planned, monitored, and controlled on a stage-by-stage basis. Breaking the project down into discrete, sequential management stages provides key control points for review and decision-making.

  • Application: Each management stage has its own plan and acts as a commitment boundary. At the end of each stage (a ‘Stage Boundary’), the Project Board conducts a formal review of progress against the plan, reassesses the Business Case viability, evaluates risks, and explicitly authorizes progression to the next stage, committing further resources. The number and duration of stages are tailored based on the project’s size, complexity, risk, and the need for control points. Every PRINCE2 project must have a minimum of two stages: the Initiation Stage and at least one subsequent management (delivery) stage.

5. Manage by Exception

  • Explanation: This principle establishes a system of delegated authority. Each level of management delegates authority to the level below it, defining tolerances for key project objectives (time, cost, quality, scope, benefits, risk). The higher management level only needs to be involved in decision-making if these agreed tolerances are forecast to be exceeded – this situation is termed an ’exception’.

  • Application: The Project Board sets overall project tolerances and delegates the authority for the day-to-day management of a stage to the Project Manager, within specific stage tolerances. As long as the stage is forecast to remain within these tolerances, the Project Manager has the discretion to manage and make adjustments as needed. If a forecast indicates a breach of tolerance (an exception), the Project Manager must escalate the issue to the Project Board via an Exception Report, seeking a decision. This principle empowers the Project Manager, ensures senior management time is used efficiently by focusing on major issues rather than routine oversight, and guarantees that decisions are made at the appropriate level within the project structure.

6. Focus on Products

  • Explanation: PRINCE2 projects are fundamentally output-oriented rather than purely activity-oriented. This principle requires a clear focus on defining the project’s deliverables (products) and ensuring they meet their agreed quality requirements.

  • Application: All products, whether they are the specialist outputs delivered to the customer or the management products used to run the project, must be clearly identified and described. This involves creating Product Descriptions that detail the purpose, composition, derivation, format, and, crucially, the quality criteria for each product. Project plans are ‘product-based’, meaning the identification of required products drives the planning of activities, dependencies, and resources needed to create them. This focus ensures everyone understands what needs to be delivered and facilitates effective quality control and management.

7. Tailor to Suit the Project Environment

  • Explanation: Recognizing that no two projects are identical, PRINCE2 insists that the methodology itself must be adapted or ’tailored’ to fit the specific circumstances of the project. This includes considering the project’s environment (e.g., organizational context, regulatory factors), size, complexity, importance, team capability, associated risks, and chosen delivery approach (e.g., waterfall, agile, hybrid).

  • Application: Tailoring involves making conscious decisions about how PRINCE2’s elements – its processes, themes (practices), roles, management products, and even terminology – will be applied to the specific project. The goal is to ensure the project management method and the level of control applied are appropriate: robust enough for governance but not so burdensome as to hinder progress. This requires careful judgment to avoid both overly rigid application and arbitrary omission of necessary controls. Tailoring decisions should be documented, often within the Project Initiation Documentation (PID), to ensure clarity for all involved. While tailoring provides flexibility in how PRINCE2 is applied, the other six principles remain mandatory and must always be adhered to. This principle, though critical for effective use, is often highlighted as one of the least well-understood aspects of PRINCE2.

In closing

The mandatory nature of these seven principles establishes the core identity and defines the essence of a PRINCE2 project. While the practical application details found within the themes and processes can, and indeed must, be adapted through tailoring to fit the unique context of each project , adherence to these fundamental principles is non-negotiable. This structure provides a stable, consistent foundation rooted in proven best practices, while simultaneously empowering project teams with the flexibility needed to navigate diverse project environments effectively. It is this blend of foundational rigor and adaptable execution that underpins the PRINCE2 approach.