7 Principles of PRINCE2

The 7 Principles of PRINCE2 are the overarching obligations that must be applied for a project to be PRINCE2-compliant. If a project does not adhere to these principles, it is not being managed using PRINCE2. The principles are universal — they apply to every project regardless of type, size, or complexity. However, how they are applied will vary — this is tailoring.

Principles are derived from lessons learned from both successful and unsuccessful projects. They form the rationale for PRINCE2's guidance and practices. The principles are interdependent — continuous business justification requires defined roles to own that justification, managing by stages provides control points for re-validating justification, and so on.

Key Points

• Principles are the ONLY non-negotiable part of PRINCE2 — everything else is tailorable
• Continued Business Justification: the Business Case must remain valid
• Learn from Experience: lessons are actively sought, recorded, and acted upon
• Defined Roles: Business, User, and Supplier interests must be represented
• Manage by Stages: clear division into management stages with decision points
• Manage by Exception: tolerances define the boundaries of delegated authority
• Focus on Products: scope is defined by products, not activities
• Tailor to Suit: adapt the method — do not apply it blindly

Key Terms & Definitions

Business Case

The justification for undertaking a project, including the reasons, costs, benefits, timescales, and risks.

Management Stage

A division of the project controlled by the Project Manager, bounded by an End Stage Assessment.

Tolerance

The permissible deviation above and below the plan's target for time, cost, quality, scope, risk, and benefits.

Exception

A situation where it can be forecast that there will be a deviation beyond the agreed tolerance levels.

Product Description

A document that defines the purpose, composition, derivation, format, quality criteria, and quality method for a product.

Tailoring

Adapting the PRINCE2 method appropriately to the size, nature, and complexity of the project.