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PRINCE2 is based on seven principles and these cannot be tailored. The PRINCE2 principles can be described as a mindset that keeps the project aligned with the PRINCE2 methodology. If a project does not adhere to these principles, it is not being managed using PRINCE2.
- Continued Business Justification: The business case is the most important document, and is updated at every stage of the project to ensure that the project is still viable. Early termination can occur if this ceases to be the case.
- Learn From Experience: each project maintains a lesson log and projects should continually refer to their own and to previous and concurrent projects’ lesson logs to avoid reinventing wheels. Unless lessons provoke change, they are only lessons identified (not learned).
- Defined Roles and Responsibilities: Roles are separated from individuals, who may take on multiple roles or share a role. Roles in PRINCE2 are structured in four levels (corporate or program management, project board, project manager level, and team level). Project Management Team contains the last three, where all primary stakeholders (business, user, supplier) need to be presented.
- Manage by Stages: the project is planned and controlled on a stage-by-stage basis. Moving between stages includes updating the business case, risks, overall plan, and detailed next-stage plan in the light of new evidence.
- Manage by Exception: A PRINCE2 project has defined tolerances (6 aspects above) for each project objective, to establish limits of delegated authority. If a management level forecasts that these tolerances are exceeded (e.g. time of a management stage will be longer than the estimated time in the current management stage). it is escalated to the next management level for a decision on how to proceed.
- Focus on Products: A PRINCE2 project focuses on the definition and delivery of the products, in particular, their quality requirements.
- Tailor to Suit Project Environment: PRINCE2 is tailored to suit the project environment, size, complexity, importance, time capability, and risk. Tailoring is the first activity in the process of Initiating A Project and reviewed for each stage.
Not every aspect of PRINCE2 will be applicable to every project, thus every process has a note on scalability. This provides guidance to the project manager (and others involved in the project) as to how much of the process to apply. The positive aspect of this is that PRINCE2 can be tailored to the needs of a particular project. The negative aspect is that many of the essential elements of PRINCE2 can be omitted sometimes resulting in a PINO project – Prince in Name Only
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