What is PRINCE2?

PRINCE2 (Projects in Controlled Environments) is a popular project-management methodology used in the UK, Europe, and Australia. While it may not be as well-known in North America or the Middle East, its structured approach has gained popularity among professionals globally. 

I first encountered PRINCE2 during my PMP training, where my trainer, certified in both PMP and PRINCE2, shared insights about its value in guiding complex projects.

Many professionals have asked me about PRINCE2, sparking their interest in the certification. Initially, I referred them to external resources, but recurring questions encouraged me to explore the topic further. 

In today’s article, I will comprehensively introduce PRINCE2, offering valuable insights into its methodology and how it can benefit you in managing projects.

What is PRINCE2?

PRINCE2 (which stands for “Projects in Controlled Environments”) is a process-based project-management methodology owned by AXELOS, a joint venture between the UK government and Capita Plc.

It originated from PROMPT (Project Resource Organization Management Planning Techniques), a project-management method created by Simpact Systems Ltd. in 1975. In 1979, the Central Computer and Telecommunications Agency (CCTA) adopted PROMPT for government IT projects. By 1989, PRINCE was formally established by the CCTA, which was later renamed the “Office of Government Commerce (OGC).”

PRINCE2 was introduced in 1996 after consultation with over 150 European organizations, making it more versatile and suitable for non-IT projects. It provides a clear framework for project management, defining the roles of the project manager and team members.

PRINCE2 consists of four key elements:

1. Principles
2. Themes
3. Processes
4. Tailoring to the Project Environment

The seven principles of PRINCE2 are:

1. Continued Business Justification: Ensuring that the project remains aligned with business objectives
2. Learn from Experience: Using lessons from previous projects
3. Defined Roles and Responsibilities: Clarifying roles within the project team
4. Manage by Stages: Breaking projects into manageable phases
5. Manage by Exception: Establishing clear limits for decision-making
6. Focus on Products: Prioritizing product delivery
7. Tailor to the Project Environment: Customizing the approach to the project’s context

The methodology also includes the following seven themes that need to be addressed throughout the project lifecycle:

1. Business Case: Justifying the project
2. Organization: Structuring the project team
3. Quality: Defining quality expectations
4. Plans: Laying out execution steps
5. Risk: Identifying and managing risks
6. Change: Handling changes efficiently
7. Progress: Monitoring and controlling progress

Finally, PRINCE2 outlines seven processes, each corresponding to a distinct stage of the project:

1. Starting a Project
2. Directing a Project
3. Initiating a Project
4. Controlling a Stage
5. Managing Product Delivery
6. Managing Stage Boundaries
7. Closing a Project

PRINCE2 emphasizes that every project is unique, requiring tailoring and adapting its themes and processes to fit the specific needs and environment of the project.

PRINCE2 Benefits

The following are the key benefits of PRINCE2:

Structured Methodology

PRINCE2 offers a comprehensive methodology for project management, combining clear themes and processes that guide why, how, and who within the project. It includes customizable templates for key activities, saving time and effort. Unlike the PMBOK, which provides a framework, PRINCE2 delivers a practical roadmap for implementation.

Universal Principles

The principles of PRINCE2 can be applied to any project—regardless of size or industry. Its core values (e.g., managing by stages and maintaining a business case) are versatile and adaptable. This flexibility makes it a valuable tool across sectors and project types.

Management by Exception

PRINCE2 employs management by exception, allowing project managers to handle issues within defined tolerance limits. Higher management intervenes only when problems exceed those limits, reducing micromanagement and enabling efficient decision-making.

Skill Enhancement

Developed with global input, PRINCE2 improves project management skills by introducing best practices from various industries. It builds confidence, improves project outcomes, and aligns professionals with the latest industry standards.

Employability

PRINCE2 is globally recognized, increasing your marketability and adding value to your resume. It is mandatory for many UK government contracts, offering a competitive edge in the job market.

How to Become PRINCE2 Qualified

The process of becoming PRINCE2 certified differs from the PMP certification. While PMI directly manages PMP certifications, PRINCE2 certification requires candidates to go through accredited training providers registered with AXELOS. These providers offer training and administer the certification exams.

PRINCE2 certification is available at three levels:

1. PRINCE2 Foundation

The Foundation level is the entry-level qualification, in which you learn the basics of the PRINCE2 methodology (e.g., its terminology and principles). No prior experience or educational prerequisites are required. 

The exam consists of 75 multiple-choice questions, 5 of which are not counted toward your final score. The exam lasts 60 minutes, and you must score at least 50% (35 out of 70) to pass. It is a closed-book exam, and the certification does not expire or require re-validation.

2. PRINCE2 Practitioner

The Practitioner level is designed for experienced project managers in a PRINCE2 environment. This certification provides a deeper understanding of PRINCE2 principles and themes, as well as their application to real-world projects. 

To qualify for the Practitioner exam, you must have passed one of the following:

• PRINCE2 Foundation
• Certified Associate in Project Management (CAPM)
• Project Management Professional (PMP)
• IPMA Level A (Certified Projects Director)
• IPMA Level B (Certified Senior Project Manager)
• IPMA Level C (Certified Project Manager)
• IPMA Level D (Certified Project Management Associate)

The exam consists of 8 sets of 10 questions each, totaling 80 marks. You must score 55% (44 correct answers) to pass. The open-book exam allows you to reference the official PRINCE2 manual, “Managing Successful Projects with PRINCE2.” The exam lasts 2.5 hours.

3. PRINCE2 Reregistration

Practitioner certification is valid for three years. You can either retake the Practitioner exam or earn sufficient CPD points through AXELOS’ Continuing Professional Development (CPD) program to maintain your status.

Like the Practitioner exam, this is an open-book test, using the official PRINCE2 manual. Failure to reregister within this timeframe will result in withdrawing your Practitioner status.

PRINCE2 Exam

The PRINCE2 exam is administered by several Accredited Training Organizations (ATOs) in a controlled environment. A training provider must be accredited by AXELOS to become an ATO. A list of Strategic Accredited Training Organizations is available through AXELOS.

You have two options for becoming PRINCE2 certified:

1. Train with an ATO: Attend training with an accredited provider, then take the exam under their supervision.

2. Self-Study: Prepare independently and attempt the exam with an accredited provider.

While training is not mandatory, it is highly recommended to improve your chances of success. The PRINCE2 exam is based on the official manual, “Managing Successful Projects with PRINCE2.” Adequate preparation (e.g., studying the manual and possibly other supplemental materials) is essential to pass the exam.

PRINCE2 Certification Cost

The cost of obtaining PRINCE2 certification varies, depending on several factors, including the level of certification (e.g., Foundation or Practitioner), your location, and whether you choose self-study or training through an Accredited Training Organization (ATO).

1. PRINCE2 Foundation: The exam typically costs between 300 and 400 USD. If you opt for an ATO-provided course, training fees (e.g., study materials and exam fees) may range from $600 to 1,200 USD.

2. PRINCE2 Practitioner: The exam fee usually ranges from 400 to 600 USD. Training courses can cost anywhere from 1,000 to 2,000 USD, depending on the provider and the format (e.g., online or in-person).

Self-study options may be less expensive, but training through an ATO will ensure better exam preparation. You may also incur additional costs for study materials (e.g., the “Managing Successful Projects with PRINCE2” manual, which costs around 70 USD). Discounts or bundled packages for both exams are sometimes available through ATOs.

FAQ

1. Will there be a PRINCE3?

PRINCE was first launched in 1989, initially focusing on IT projects. As it gained popularity across various industries, PRINCE2 was introduced in 1996 with a broader, universal approach to project management. While PRINCE2 has seen updates, the latest in 2017, it continues to be known as PRINCE2. There are no plans to release a PRINCE3, as the PRINCE2 methodology has been refined to serve IT and non-IT sectors effectively.

2. Should I get a PRINCE2 qualification?

Yes. Even if you live in a region where PRINCE2 is not widely recognized, obtaining at least the PRINCE2 Foundation certification can be valuable. PRINCE2 is a globally recognized qualification that offers distinct advantages (e.g., comprehensive guidance for each stage of the project lifecycle, and access to useful templates). It can complement other project-management certifications (e.g., PMP) by enhancing your skills and employability.

3. Is PRINCE2 only for large projects?

No, PRINCE2 is highly adaptable and can be tailored to suit projects of any size, industry, or complexity. Its flexibility allows it to be applied to small, medium, and large-scale projects, which makes it a versatile project-management methodology for various organizational needs.

4. Is PRINCE2 better than PMP?

Whether PRINCE2 is better than PMP depends on your career goals and project context. PRINCE2 offers a structured methodology with detailed processes and templates, which is ideal for governance-focused projects, especially in the UK and Europe. PMP, recognized globally, emphasizes a broader framework of best practices, making it advantageous for various industries, particularly in North America, the Middle East, and India.

Conclusion

PRINCE2 is one of the world’s most recognized qualifications for project professionals. It offers a flexible and structured approach to managing projects of any size or industry. Its universal principles and methodologies equip project managers with the tools, templates, and frameworks to ensure better control and project success. 

By clearly defining team roles and responsibilities, PRINCE2 enhances collaboration and accountability. Whether you are new to project management or want to complement a PMP certification, PRINCE2 provides valuable skills that improve project outcomes and career opportunities.

Further Readings:

• PRINCE2 Vs PMP
• What is the PMP Certification?

References:

• PRINCE2 Project Management Certification
• What is the PRINCE2® methodology?