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 "#$%&'( !*+,-./01+-! )
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"#$%&'!()%!*+,,!-./0"123!2456!7#+89:(;#8!<=,,:>+'!

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PRINCE2 2017 Foundation Training Manual ii

PRINCE2® Foundation Training Manual

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PRINCE2 2017 Foundation Training Manual iii

Colophon
®
Title: PRINCE2 Foundation Training Manual

Authors: Frank Turley

Expert reviewers: Nader K. Rad, Eralp Tezcan, Rouzbeh Kotobzadeh

Publisher: Van Haren Publishing, Zaltbommel, [Link]

ISBN Hard copy: 978 94 018 0260 4

ISBN eBook: 978 94 018 0261 1

Edition: First edition, first impression, November 2017

Copyright: © Van Haren Publishing, 2017

ITIL®, PRINCE2®, PRINCE2 Agile®, MSP®, M_o_R®, P3O®, MoP® and MoV® are registered
trademarks of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.
The Swirl logo is a trade mark of AXELOS Limited, used under permission of AXELOS Limited.
All rights reserved.

For any further inquiries about Van Haren Publishing, please send an email to:
info@[Link]

Although this publication has been composed with most care, neither Author nor
Editor nor Publisher can accept any liability for damage caused by possible errors and/or
incompleteness in this publication.

No part of this publication may be reproduced in any form by print, photo print,
microfilm or any other means without written permission by the Publisher.

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PRINCE2 2017 Foundation Training Manual iv

Thank you for reading this PRINCE2 Foundation Training Manual. The main objective of this book
®
is to provide an easy-to-read and easy-to-understand PRINCE2 Foundation training manual.
The official PRINCE2 manual, “Managing Successful Projects with PRINCE2,” is an excellent
reference manual, but it is not a training manual and should not be used as one, as it is very
difficult to comprehend and understand if you are new to project management.
The official PRINCE2 manual also covers the complete Practitioner Syllabus, and it’s impossible
to know which parts relate to the PRINCE2 Foundation syllabus, so you have to read everything.
Henceforth, this book is meant to be (and is) an easy introduction to PRINCE2 based on the
Foundation syllabus.

Comments
• There are some sections labeled #NR – Not Required, meaning this section is not
required to pass the foundation exam but provides useful background information.

Acknowledgments
Author Frank Turley LinkedIn
Expert reviewer Nader K. Rad LinkedIn

ITIL, PRINCE2, PRINCE2 Agile, MSP, MoP, MoV, and M_o_R are registered trade marks
of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.
Copyright © 2017 Frank Turley. No part of this document can be reproduced in any format without express
permission of the author.

About the author

Frank Turley (The PRINCE2 Coach) has been a project manager for
more than 16 years and a PRINCE2 Practitioner.

You can contact Frank at:

E-mail: [Link]@[Link]
LinkedIn: [Link]/in/frankturley
Twitter: @prince2_coach

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PRINCE2 2017 Foundation Training Manual v

Table of Contents
Acknowledgments ........................................................................................................................ iv
About the author ........................................................................................................................... iv
1 Introduction – PRINCE2 ...................................................................................................... 1
1.1 The PRINCE2 Foundation Training Manual ............................................................ 1
1.2 What are projects? ................................................................................................... 1
1.3 Why a project management method? ...................................................................... 2
1.4 What is PRINCE2? .................................................................................................. 2
1.5 Benefits of using PRINCE2 ...................................................................................... 3
1.6 PRINCE2 structure (elements) ................................................................................ 3
1.7 What makes a project a PRINCE2 project? ............................................................. 4
1.8 What you need to know for the foundation exam ..................................................... 4
2 PRINCE2 and project management .................................................................................... 5
2.1 Five characteristics of a project ............................................................................... 5
2.2 Variables to control in a PRINCE2 project ............................................................... 5
2.3 Projects in context .................................................................................................... 6
2.4 Projects in a commercial environment ..................................................................... 7
2.5 What does a project manager do? #NR ................................................................. 8
2.6 PRINCE2 Foundation exam and syllabus ................................................................ 9
2.7 What you need to know for the foundation exam ..................................................... 9
3 Example project: “U2 Driving School” ................................................................................ 10
4 The PRINCE2 project timeline and tailoring ...................................................................... 12
4.1 Project timeline overview ....................................................................................... 12
4.1.1 Starting up a project .......................................................................................... 12
4.1.2 Initiating a project process / initiation stage ...................................................... 13
4.1.3 Controlling a stage (1 delivery stage) .............................................................. 14
st

4.1.4 Next delivery stages .......................................................................................... 16

4.1.5 Last delivery stage and closing a project .......................................................... 16
4.1.6 Timeline summary ............................................................................................. 17
4.2 Tailoring PRINCE2 to suit different projects .......................................................... 18
4.2.1 What can be tailored? ....................................................................................... 18
4.2.2 Sample PRINCE2 projects ................................................................................ 19
5 Principles ........................................................................................................................... 20
5.1 Introduction to principles ........................................................................................ 20
5.2 Principles: Continued business justification ........................................................... 20
5.3 Principles: Learn from experience ......................................................................... 21

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5.4 Principles: Defined roles and responsibilities ......................................................... 21

5.5 Principles: Manage by stages ................................................................................ 21
5.6 Principles: Manage by exception ........................................................................... 22
5.7 Principles: Focus on products ................................................................................ 23
5.8 Principles: Tailoring or tailor to suit the project environment ................................. 23
5.9 What you need to know for the foundation exam ................................................... 23
6 Themes introduction .......................................................................................................... 24
6.1 Introduction to themes ........................................................................................... 24
6.2 List of themes ......................................................................................................... 24
6.2.1 Theme: Business case ...................................................................................... 25
6.2.2 Theme: Organization ........................................................................................ 25
6.2.3 Theme: Quality .................................................................................................. 25
6.2.4 Theme: Plans .................................................................................................... 26
6.2.5 Theme: Risk ...................................................................................................... 26
6.2.6 Theme: Change ................................................................................................ 27
6.2.7 Theme: Progress .............................................................................................. 27
6.3 Tailoring the themes (#NR) .................................................................................... 28
6.4 What you need to know for the foundation exam ................................................... 28
7 Business case theme ......................................................................................................... 29
7.1 Introduction ............................................................................................................ 29
7.2 What happens in the real world? ........................................................................... 29
7.3 The business case knowledge provided by PRINCE2 ........................................... 29
7.4 Output, outcomes, and benefits ............................................................................. 29
7.5 Minimum requirements for the business case ....................................................... 31
7.5.1 The business case document ........................................................................... 31
7.5.2 The benefits management approach document ............................................... 32
7.5.3 Business case: develop, maintain, and verify ................................................... 32
7.5.4 Confirm benefits ................................................................................................ 32
7.6 The business case story ........................................................................................ 33
7.7 Business case example: (#NR) .............................................................................. 35
7.8 Roles and responsibilities ...................................................................................... 35
7.9 What you need to know for the foundation exam ................................................... 36
8 Organization ...................................................................................................................... 37
8.1 Introduction ............................................................................................................ 37
8.2 What happens in the real world? ........................................................................... 37
8.3 The organization knowledge provided by PRINCE2 .............................................. 37
8.4 Definitions .............................................................................................................. 38

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8.5 Three project interests / three stakeholder categories ........................................... 38

8.6 The four levels of a project organization ................................................................ 39
8.7 PRINCE2 requirements for organization ................................................................ 41
8.8 Project roles and responsibilities ........................................................................... 41
8.8.1 Project board ..................................................................................................... 41
8.8.2 The project board roles ..................................................................................... 41
8.8.3 Project assurance: user, business, and supplier .............................................. 42
8.8.4 The change authority role ................................................................................. 43
8.8.5 The project manager role .................................................................................. 44
8.8.6 Team manager and project support .................................................................. 44
8.8.7 Combining PRINCE2 project roles .................................................................... 45
8.8.8 Stakeholder engagement .................................................................................. 45
8.9 The communication management approach document ......................................... 46
8.10 Roles and responsibilities ...................................................................................... 46
8.11 What you need to know for the foundation exam ................................................... 47
9 Quality ................................................................................................................................ 48
9.1 Introduction to quality knowledge ........................................................................... 48
9.2 What happens in the real world? ........................................................................... 48
9.3 The quality knowledge provided by PRINCE2 ....................................................... 48
9.4 Quality definitions ................................................................................................... 49
9.5 Introduction to the PRINCE2 approach to quality .................................................. 50
9.6 Part 1: Quality planning introduction ...................................................................... 50
9.7 Part 2: Quality control ............................................................................................ 52
9.8 Customer’s quality expectations and acceptance criteria ...................................... 52
9.8.1 Customer’s quality expectations ....................................................................... 52
9.8.2 List acceptance criteria ..................................................................................... 53
9.9 Quality documents ................................................................................................. 54
9.9.1 Project product description ............................................................................... 54
9.9.2 The quality management approach .................................................................. 54
9.9.3 Product descriptions ......................................................................................... 54
9.9.4 Quality register .................................................................................................. 55
9.10 PRINCE2 minimum requirements for quality ......................................................... 56
9.11 Project assurance vs quality assurance ................................................................. 56
9.12 Roles and responsibilities ...................................................................................... 57
9.13 What you need to know for the foundation exam ................................................... 57
10 Plans .................................................................................................................................. 58
10.1 Introduction to plans ............................................................................................... 58

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10.2 What happens in the real world? ........................................................................... 58

10.3 How does the plans theme support the project? .................................................... 59
10.4 Plans definitions ..................................................................................................... 59
10.5 Three levels of a plan ............................................................................................. 60
10.6 Planning overview .................................................................................................. 61
10.7 The project plan, stage plan, and team plan .......................................................... 62
10.8 The exception plan – out of tolerance .................................................................... 63
10.9 Product-based planning steps ............................................................................... 63
10.10 Product-based planning steps 1 to 7 ..................................................................... 64
10.10.1 Step 1: Design the plan ..................................................................................... 64
10.10.2 Step 2: Define and analyze products ................................................................ 64
10.10.3 Step3: Identify activities and dependencies (#NR) ........................................... 69
10.10.4 Step 4: Prepare estimates (#NR) ...................................................................... 70
10.10.5 Step 5: Prepare the schedule (#NR) ................................................................. 70
10.10.6 Step 6: Document the plan (#NR) ..................................................................... 70
10.11 Number and length of management stages ........................................................... 71
10.12 Delivery steps vs management stages? ................................................................ 71
10.13 PRINCE2’s requirements for the plans theme ....................................................... 72
10.14 Roles and responsibilities ...................................................................................... 73
10.15 What you need to know for the foundation exam ................................................... 74
11 Risk Theme ........................................................................................................................ 75
11.1 Introduction to the risk knowledge ......................................................................... 75
11.2 What happens in the real world? ........................................................................... 75
11.3 Purpose of the risk theme ...................................................................................... 75
11.4 Risk definitions ....................................................................................................... 76
11.5 The management of risk method and risk context (#NR) ...................................... 76
11.6 Risk management products ................................................................................... 77
11.6.1 The risk management approach ....................................................................... 77
11.6.2 The risk register ................................................................................................ 78
11.7 The recommended PRINCE2 risk management procedure .................................. 78
11.8 Step 1: Identify ....................................................................................................... 79
11.8.1 How to express risk ........................................................................................... 80
11.8.2 Techniques to identify risk ...................................................................................... 80
11.9 Step 2: Assess risk ................................................................................................ 81
11.9.1 Estimate ............................................................................................................ 81
11.9.2 Evaluate (combined effect) ............................................................................... 82
11.10 Step 3: Plan the responses .................................................................................... 83

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11.11 Step 4: Implement the responses .......................................................................... 85

11.12 Step 5: Communicate ............................................................................................ 85
11.13 What is a risk budget? ........................................................................................... 86
11.14 PRINCE2 requirements for risk management ........................................................ 86
11.15 Roles and responsibilities ...................................................................................... 86
11.16 What you need to know for the foundation exam ................................................... 87
12 Change .............................................................................................................................. 88
12.1 Introduction to change knowledge ......................................................................... 88
12.2 What happens in the real world? (#NR) ................................................................. 88
12.3 Purpose of the change theme ................................................................................ 88
12.4 Change definitions ................................................................................................. 89
12.5 Types of issues ...................................................................................................... 89
12.6 The PRINCE2 approach to change ....................................................................... 90
12.7 How to prioritize issues and track severity (#NR) .................................................. 90
12.8 Change authority and change budget .................................................................... 91
12.9 Management products used by the change theme ................................................ 92
12.9.1 Change control approach .................................................................................. 92
12.9.2 Product status account ..................................................................................... 92
12.9.3 Configuration item records (CIR) ...................................................................... 92
12.9.4 Daily log ............................................................................................................ 93
12.9.5 Issue register .................................................................................................... 94
12.9.6 Issue reports ..................................................................................................... 94
12.10 Issue and change control procedure ...................................................................... 94
12.10.1 Step 1: Capture ................................................................................................. 95
12.10.2 Step 2: Assess .................................................................................................. 96
12.10.3 Step 3: Propose ................................................................................................ 96
12.10.4 Step 4: Decide .................................................................................................. 96
12.10.5 Step 5: Implement ............................................................................................. 97
12.11 PRINCE2 minimum requirements for change control ............................................ 97
12.12 Roles and responsibilities ...................................................................................... 97
12.13 What you need to know for the foundation exam ................................................... 98
13 Progress ............................................................................................................................ 99
13.1 Introduction ............................................................................................................ 99
13.2 What happens in the real world? (#NR) ................................................................. 99
13.3 Purpose of the progress theme .............................................................................. 99
13.4 Progress definitions ............................................................................................. 100
13.5 PRINCE2 requirements for approach to progress ............................................... 100

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13.5.1 Defining tolerances for different levels ............................................................ 101

13.6 Types of control ................................................................................................... 102
13.6.1 Event-driven and time-driven controls ............................................................ 102
13.6.2 Baseline for progress control (plans) .............................................................. 102
13.7 How does the project manager review progress? ................................................ 103
13.7.1 Monitoring work packages and teams ............................................................ 104
13.7.2 How the project manager uses the issue register ........................................... 104
13.7.3 How the project manager uses the quality register ......................................... 104
13.7.4 How the project manager uses reports ........................................................... 104
13.7.5 Capturing and reporting lessons ..................................................................... 105
13.8 Raising exceptions ............................................................................................... 106
13.9 Use of management stages for control ................................................................ 106
13.10 Roles and responsibilities .................................................................................... 106
13.11 What you need to know for the foundation exam ................................................. 107
14 Introduction to processes ................................................................................................. 108
14.1 Introduction to processes ..................................................................................... 108
14.2 The PRINCE2 processes ..................................................................................... 108
14.3 Two process diagrams ......................................................................................... 108
14.4 Pre-project ........................................................................................................... 110
14.5 Initiation stage ...................................................................................................... 110
14.6 Next stage after the initiation stage ...................................................................... 110
14.7 Introduction to the seven processes .................................................................... 111
15 Starting up a project ......................................................................................................... 113
15.1 Introduction .......................................................................................................... 113
15.2 Purpose of the SU process .................................................................................. 113
15.3 Objectives of the SU process ............................................................................... 113
15.4 Context ................................................................................................................. 113
15.5 SU activities ......................................................................................................... 114
15.6 SU input / output diagram .................................................................................... 115
15.7 How themes are applied in the SU process (#NR) .............................................. 117
15.8 Roles and responsibilities .................................................................................... 117
15.9 What you need to know for the foundation exam ................................................. 117
16 Initiating a project ............................................................................................................. 119
16.1 Introduction .......................................................................................................... 119
16.2 Purpose of the IP process .................................................................................... 119
16.3 Objectives of the IP process ................................................................................ 119
16.4 IP context ............................................................................................................. 119

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16.5 IP activities ........................................................................................................... 120

16.6 IP inputs and outputs ........................................................................................... 121
16.7 Roles and responsibilities .................................................................................... 122
16.8 How themes are applied in the IP process (#NR) ................................................ 122
16.9 What you need to know for the foundation exam ................................................. 123
17 Directing a project ............................................................................................................ 124
17.1 Introduction .......................................................................................................... 124
17.2 Purpose and objectives of directing a project ...................................................... 124
17.3 Context of directing a project ............................................................................... 124
17.4 DP activities ......................................................................................................... 125
17.5 DP inputs and outputs (#NR) ............................................................................... 125
17.6 Roles and responsibilities .................................................................................... 126
17.7 What you need to know for the foundation exam ................................................. 126
18 Controlling a stage ........................................................................................................... 127
18.1 Introduction .......................................................................................................... 127
18.2 Purpose and objectives of controlling a stage ..................................................... 127
18.3 Context of controlling a stage .............................................................................. 127
18.4 CP activities ......................................................................................................... 127
18.5 CS inputs and outputs (#NR) ............................................................................... 129
18.6 Roles and responsibilities .................................................................................... 129
18.7 How themes are applied in the CS process (#NR) .............................................. 130
18.8 What you need to know for the foundation exam ................................................. 130
19 Managing product delivery ............................................................................................... 131
19.1 Introduction .......................................................................................................... 131
19.2 Purpose and objectives of the MP process .......................................................... 131
19.3 Context of the MP process ................................................................................... 131
19.4 MP activities ......................................................................................................... 131
19.5 MP inputs / outputs (#NR) .................................................................................... 132
19.6 Roles and responsibilities .................................................................................... 133
19.7 How themes are applied in the MP process (#NR) .............................................. 133
19.8 What you need to know for the foundation exam ................................................. 133
20 Managing a stage boundary ............................................................................................ 134
20.1 Introduction .......................................................................................................... 134
20.2 Purpose and objectives ........................................................................................ 134
20.3 Context ................................................................................................................. 134
20.4 SB activities ......................................................................................................... 134
20.5 SB inputs and outputs .......................................................................................... 135

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20.6 Roles and responsibilities .................................................................................... 136

20.7 How themes are applied in the SB process (#NR) .............................................. 136
20.8 What you need to know for the foundation exam ................................................. 136
21 Closing a project .............................................................................................................. 137
21.1 Introduction .......................................................................................................... 137
21.2 Purpose and objectives ........................................................................................ 137
21.3 Context ................................................................................................................. 137
21.4 CP activities ......................................................................................................... 138
21.5 CP inputs and outputs .......................................................................................... 138
21.6 Roles and responsibilities .................................................................................... 139
21.7 How themes are applied in the CP process (#NR) .............................................. 140
21.8 What you need to know for the foundation exam ................................................. 140
22 Appendix A ...................................................................................................................... 141
Simple Glossary by Frank Turley ......................................................................................... 141

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PRINCE2® 2017 Foundation Training Manual 1

1 Introduction – PRINCE2
1.1 The PRINCE2 Foundation Training Manual
The official PRINCE2 manual is Managing Successful Projects with PRINCE2, and it is an
excellent reference manual but not easy to learn from. It is for:
• Experienced project managers who want to learn PRINCE2
• Project managers who want to have a reference manual for PRINCE2

This PRINCE2 Foundation Training Manual is different from the official PRINCE2 manual in the
following ways:
• It is focused on the foundation exam syllabus.
• It is a training manual and therefore easy to learn from.
• PRINCE2 terms are explained with examples, which make them easier to understand.
• The manual is written in plain English so that you understand it the first time you read it.
• It provides many sample PRINCE2 documents.
• A project timeline overview is provided to help you understand how a project is divided up.
• Questions at the end of each chapter provide a good way to test your PRINCE2 foundation
syllabus knowledge.

To summarize, if you want to learn PRINCE2 and prepare for the PRINCE2 Foundation exam, then
use this PRINCE2 Foundation Training Manual. If you want a very good reference manual, then
use the official PRINCE2 manual “Managing Successful Projects with PRINCE2”

1.2 What are projects?

Projects are seen as a way to introduce change, hence they are unique by nature, i.e., two identical
projects are never done. Now some of you may be thinking that in your company the same projects
keep repeating. Well, if they are exactly the same, then these are referred to as processes; and
processes that repeat are referred to as “business as usual” or daily operations.
Let us start with a more general definition of a project. I got this from Wikipedia:
A project is a unique series of actions designed to accomplish a unique goal within specific
time and cost limitations.

I like this definition, as it is concise and easy to understand. It mentions terms like “series of
actions,” “unique goal,” and “within specific time and cost limitations.”

Another definition of a project is from the PMBoK® and is as follows:

A project is a temporary endeavour undertaken to create a unique product or service.

Now let us hear what PRINCE2 says a project is. This is a quote from the manual:
A project is a temporary organization that is created for the purpose of delivering one or more
business products according to an agreed business case.

You may not have understood this, as you need to know a little more about PRINCE2 first. It should
start to make more sense in a few minutes after I explain what is meant by words such as temporary
organization and business case, which appear in the definition.

Based on AXELOS PRINCE2® material. Reproduced under licence from AXELOS. All rights reserved. Some material in this document has been sourced
from Managing Successful Projects with PRINCE2® 2017 Edition. No part of this document may be reproduced in any form without the written permission of
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The word organization refers to the project team, the persons involved in the project, and how they
relate to each other. Each project has a definite start and end, so it is temporary. At the end of the
project, the people involved in the project will perhaps move on to a new project.

The business case is one of the documents that exist in a PRINCE2 project. It includes information
such as the reasons for the project, the expected benefits, costs and time information, and ROI
(Return On Investment) calculation.

Now read the above PRINCE2 definition again.

1.3 Why a project management method?

Project Management deals with planning, delegating, monitoring, and controlling the project; in other
words, the administration of the project. The role of the project manager is to achieve project
objectives within the targets set mainly for time and cost.

Let us look at some typical things that can go wrong in a project:

• Sample project: A new house
o Individual subcontractor firms are used to do the different specialist work (heating,
electricity, fittings, etc.).
o As you can imagine, these subcontractors may need to be managed.

• Scenario 1:
o You find out just one week before the plumbers are due to arrive that they may be
delayed for one month.
• Result of this scenario:
o Most of the planned work will be affected.
o It will be difficult to reschedule other contractors.
o You may still have to pay part of their costs for the other contractors.

• Scenario 2:
o During the installation of the new window frames, you may find that the allocated
space is too small.
• Result of this scenario:
o Again, this may affect the rest of the project and throw it off track.

Here you can see that a person (i.e., a project manager) is needed to plan the work, monitor the
work, do numerous checks and signoffs, deal with risk, deal with issues as they arise, identify areas
to cut costs, and so on.

Some other common project failures are:

• Insufficient product definitions at the start, resulting in the wrong product being developed
• Lack of communication, which may cause a black cloud over the project
• Poor estimation of time and cost, which may cause the project to run out of money

And, so, I hope you see there is a need for a good Project Management method.

1.4 What is PRINCE2?

PRINCE2 is a generic method for project management, so it can be used for any project, from running
a 1 to 2-day project, to a company acquisition or even to the construction of a hyper loop between
Paris and Berlin.

Based on AXELOS PRINCE2® material. Reproduced under licence from AXELOS. All rights reserved. Some material in this document has been sourced
from Managing Successful Projects with PRINCE2® 2017 Edition. No part of this document may be reproduced in any form without the written permission of
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PRINCE2® 2017 Foundation Training Manual 3

PRINCE2 separates the management layer from the work to create the required products that the
project has to produce (specialist work). This means that the same management layer can be used
for different types of projects. The Management Layer refers to the organization of the project, such
as project board, project manager, and Teams. You will see this more clearly when we discuss the
process model and the PRINCE2 timeline later.

1.5 Benefits of using PRINCE2

As you might possibly imagine, there are many advantages to using a project management method;
this also applies to PRINCE2. I will list a few of them below. You don’t need to remember these, but
it is good to be aware of them. I will also include some examples where necessary.

Benefit 1: Best practice: PRINCE2 has been used for more than 35 years in many thousands of
projects, and PRINCE2 keeps learning from these projects. So all the feedback, suggestions,
learning from other methods, and discussions have helped PRINCE2 become a best practice.

Benefit 2: PRINCE2 can be applied to any kind of project. This means that PRINCE2 can be used
for projects as small as organizing a meeting to huge projects the size of running an election,
organizing a conference, constructing a bridge, or developing an IT System.

Benefit 3: PRINCE2 provides a structure for roles and accountability (also referred to as “Roles and
Responsibility”). All persons on the project team should know what is expected of them. This is
even more important for the project managers, as they have the duty to check that tasks are
completed as agreed.

Benefit 4: PRINCE2 is product-focused, meaning that the product is well-defined at the start of the
project and is made known to all stakeholders. As a result, everybody has the same idea of what
they are working on and the expected end-product.

Benefit 5: PRINCE2 uses Management by Exception. This allows the project manager to handle
certain project issues, but once an issue goes beyond a certain tolerance, it is escalated to the next
higher management layer. Another example: A junior claims person at an insurance company could
handle all claims up to the value of €500. If the claim is higher than €500, then it is escalated to their
boss; and if higher than €10,000, it can be escalated to the next management level.

Benefit 6: PRINCE2 continues to assess the viability of the project from a business case point of
view, and this happens throughout the project lifecycle. If, for example, the expected return on
investment is no longer probable at any point in the project, then the project should be stopped.
You will see other benefits as you continue with this book.

1.6 PRINCE2 structure (elements)

The PRINCE2 manual says that the PRINCE2 method consists of 4 main parts, and PRINCE2 has
chosen the word Elements (or Integrated Elements) to represent these 4 parts. These elements
are: Principles, Themes, Processes, and Tailoring. You can use the structure of this manual to help
you remember. First, you have the Principles, then the Themes, then the Processes, and finally, the
last chapter, which is Tailoring.

• Principles: PRINCE2 says that each project should consist of all 7 PRINCE2 principles (in
other words, “best practices” or good project characteristics). You learn to see these
principles as common sense and that they should be included in all projects.
• Themes: The 7 themes answer the question regarding which items must continually be
addressed during each project, e.g., business case, organization, quality, and change.

Based on AXELOS PRINCE2® material. Reproduced under licence from AXELOS. All rights reserved. Some material in this document has been sourced
from Managing Successful Projects with PRINCE2® 2017 Edition. No part of this document may be reproduced in any form without the written permission of
Copyright
both Frank Turley and AXELOS Limited. protected.
Permission can beUse is for at
requested Single Users only via and
[Link]@[Link] a VHP Approved License.
licensing@[Link].
For information and printed versions please see [Link]
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For information and printed versions please see [Link]
PRINCE2® 2017 Foundation Training Manual 5

2 PRINCE2 and project management

2.1 Five characteristics of a project
Projects have a number of characteristics, which is how projects differ from business as usual or a
repeating process.

Change: Projects are a way to introduce change.

Example: A new sales website will change how clients will purchase items.

Temporary: There should always be a definite start and end to a project, and it should
stop once the required products are created. Ongoing maintenance of a
product occurs after the project and is not considered part of the project.
Cross- A project involves people from different business departments and seniority
Functional: that work together for the duration of the project.

Unique: Every project is unique, as there is always something different in each

project. Example: Building a fourth house may be different in the following
ways: the location is different, there’s a slight difference in the design, there
are different owners, and owners want to change some fittings.

Uncertainty: As parts of the project are unique, this brings uncertainty, as you are not
100% sure how it is going to work out. Using the above example, the owners
might keep changing their minds, some of the chosen house fittings may not
arrive in time, temperatures may fall to below zero, etc.

These are the 5 characteristics of the project, and you can see these in all sizes of projects.

2.2 Variables to control in a PRINCE2 project

Most people think of the two most common variables to control which are time and cost. In PRINCE2,
there are 6 variables (performance targets) to control in a project and these are: Timescales, Costs,
Quality, Scope, Benefits, and Risk. You could also say that these are the 6 aspects of project
performance to be managed during a project.
An easy way to remember them is to use the words TeCQuila SoBeR. This will give you Timescales,
Costs, Quality, Scope, Benefits, and Risk. Or you can use the memory aid “BC QRST.”

Project Manager Dashboard

Scope Benefits Risk

Time Quality
Cost

Stage Plan – Products

Plan
Actual
Time

Fig 2.1: PM Dashboard Example

Based on AXELOS PRINCE2® material. Reproduced under licence from AXELOS. All rights reserved. Some material in this document has been sourced
from Managing Successful Projects with PRINCE2® 2017 Edition. No part of this document may be reproduced in any form without the written permission of
Copyright
both Frank Turley and AXELOS Limited. protected.
Permission can beUse is for at
requested Single Users only via and
[Link]@[Link] a VHP Approved License.
licensing@[Link].
For information and printed versions please see [Link]
PRINCE2® 2017 Foundation Training Manual 6

See Figure 2.1 project manager dashboard example. It shows a dial for each of the 6 performance
targets, and the project manager will keep monitoring these during the project. In fact, if any person
asks the PM how the project is going, they could just show this project dashboard and nothing else.

Variable Description
Timescales The question to ask for timescales is, “When will the project be finished?”
Cost Projects have to give a return on investment; therefore, the questions to ask are:
Are the costs being controlled? and are we within budget?
Quality Will the product be usable at the end of the project (in other words, fit for purpose)
and are products passing their quality checks?
Scope Is the scope well-defined and clear to all stakeholders? Care must be taken by
the project manager to avoid scope creep, which is to allow new low-value
requirements to be added during the project.
Benefits Why are we doing this project and what are the benefits? Benefits must be
known, clear, and measurable, and the benefits need to be delivered.
Risk All projects are unique and therefore have risk. How much risk can we take on
and how can risk be managed? For example, in a project concerned with building
a house, what happens if one of the subcontractors does not show up?

Timescales Scope

Cost Benefits

Quality Risk

Fig 2.2 The 6 project variables / 6 performance targets

PRINCE2 deals with the planning, delegation, monitoring, and controlling of all 6 project variables
(performance targets). The PMBoK uses the term “6 competing project constraints.”

2.3 Projects in context

PRINCE2 assumes that there will be a customer and a supplier in each project.
- The customer will specify the desired result and perhaps pay for and use the products
delivered by the project.
- The supplier will provide the resources and skills to deliver the desired products. This can
be a person, group, or even a group of groups (e.g., a group of contractor companies).

The requests for projects have to come from somewhere outside the project (level above the project),
and they can come from: 1) a programme, 2) upper management (corporate), or 3) a customer.
PRINCE2 refers to the organization that commissions a project as “corporate, programme
management, or the customer.”

Based on AXELOS PRINCE2® material. Reproduced under licence from AXELOS. All rights reserved. Some material in this document has been sourced
from Managing Successful Projects with PRINCE2® 2017 Edition. No part of this document may be reproduced in any form without the written permission of
Copyright
both Frank Turley and AXELOS Limited. protected.
Permission can beUse is for at
requested Single Users only via and
[Link]@[Link] a VHP Approved License.
licensing@[Link].
For information and printed versions please see [Link]
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