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CHAPTER 4
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INTRODUCTION TO
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PRINCE2 PRACTICES
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 Managing Successful Projects with PRINCE2

CHAPTER 4
INTRODUCTION TO
PRINCE2 PRACTICES

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4.1

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Chapter 4 - Introduction to PRINCE2 Practices

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The PRINCE2 practices

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Definition: Practice
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An aspect of project management that must be applied consistently and throughout the
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project lifecycle. The practices require specific treatment of that aspect of project
management for the PRINCE2 processes to be effective.
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The PRINCE2 practices describe aspects of project management that must be continually addressed as
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the project progresses through its lifecycle. For example, the business case for the project must be
updated and revalidated throughout the project lifecycle as issues will occur, and risks need to be
managed. The strength of PRINCE2 is the way in which the seven practices are integrated, both in how
they link together and are used across all the PRINCE2 processes.
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The PRINCE2 processes (see Chapters 12 to 19) address the progressive flow of the project (the
lifecycle), describing actions relating to each of the practices when they are needed. In the following
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practices chapters (see Chapters 5 to 11) more detailed guidance is provided for those actions.
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Table 4.1 The seven PRINCE2 practices

Practice Description Answers the Chapter
question
Business case The project starts with an idea that is considered to have Why? 5
potential value for the organization concerned. This practice
addresses how the idea is developed into a viable investment
proposition and how success is defined and verified.
It provides the basis for how project management maintains the
focus throughout the project on the project’s benefits, purpose
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and alignment with the objectives and priorities of the business

and other organizations involved.
Organizing Project work needs to be directed by those accountable, Who? 6
delegated to those responsible to manage it, and allocated to
those who will deliver the products required of the project.
Projects are cross-functional, so the normal line management
structures are not suitable.
This practice describes the roles, responsibilities, and
relationships in the temporary PRINCE2 project management
team required to initiate and complete the project effectively. It
describes how the business, user, and supplier interests are
represented in project activities and decision-making.
Table continues
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 Introduction to PRINCE2 Practices

Practice Description Answers the Chapter

question
Plans PRINCE2 projects are delivered in stages based on a series of How? 7
approved plans. This practice complements the quality practice How much?
by describing how plans are designed and developed. In
When?
PRINCE2, the plans are matched to the needs of the people
through the project management layers (directing, managing,
and delivering), and they are the focus for communication and
control throughout.
Quality The initial project idea will only be understood as a broad What? 8
outline. This practice explains how the outline is developed so

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all stakeholders understand the quality attributes of the
products to be delivered and then how project management will

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ensure that these requirements are subsequently delivered.

Chapter 4 - Introduction to PRINCE2 Practices

Risk Due to the unique nature of projects, which use new and What if? 9

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different products, suppliers, and/or procedures, there is more
uncertainty which will result in more risk. This practice
addresses how the project team manages uncertainty.

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Issues This practice describes how project management assesses and What now? 10
responds to issues that have a potential impact on any aspect of
the project (including its objectives, plans, and products). Issues

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may be unanticipated general problems, requests for change, or
instances of a product not meeting its specification.
Progressig or op This practice addresses the ongoing achievability of the plans. It
explains the monitoring of performance and the escalation
process if events do not go according to plan, through a mixture
Where are we now?
Where are we going?
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Should we carry on?
of event and time-based controls. Ultimately, this practice
determines whether and how the project should proceed.

4.2
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Applying the practices

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It is expected that the PRINCE2 method will be applied and tailored to ensure it is fit for purpose for the
project’s context. This will include the way the PRINCE2 practices are applied. This may range from the
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business providing standards or prescriptive guidelines to allowing the project management team a
large degree of freedom as to how they apply each practice to the project.
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The PRINCE2 practices are designed to help the project management team apply and tailor the method,
principally through a suite of management approaches (such as the benefits management approach).
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Each management approach defines the procedures, techniques, and standards to be applied and the
responsibilities for that aspect of project management to be effective.
PRINCE2 does not prescribe how procedures, techniques, and standards should be documented, the
level of detail required, or how they are published and shared. The level of detail could vary from a few
paragraphs to a comprehensive instruction manual. The level and type of documentation is established
by the Project Board who will consider what they need to manage and document their decisions within
agreed business policies.
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Contextual factors such as importance, risk, and urgency of the project will influence the level of control
required, which will determine the degree of formality and frequency of monitoring, reviewing,
reporting, and decision-making. The organizations involved and the relationship between them (for
example, customer and supplier) will also influence the controls that will be established. Whether the
project is part of a wider programme or portfolio will influence how the project management team
interacts with the business and incorporates their management requirements. When applying the
PRINCE2 practices, project management teams should also reflect any tailoring of the roles, processes,
and terminology.

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 Managing Successful Projects with PRINCE2

All seven practices should be applied in a project. However, they vary according to the scale, risk, the
people and organizations involved, and the complexity or simplicity of the project concerned. This will
always ensure that the method remains consistent with the seven PRINCE2 principles.
This book contains suggestions for how each practice can be applied to the project’s context based on
some common factors, such as a project in a programme or a project using an agile delivery method.

4.3 Management products

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PRINCE2 management products describe the information that will be required to manage the project.

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Chapter 4 - Introduction to PRINCE2 Practices

This information can be maintained in a variety of ways, possibly as documents or part of a

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management information system. Appendix A contains suggested outlines of each PRINCE2

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management product and further details about how the management products can be tailored.

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There are two management products that are relevant to the majority of the PRINCE2 practices that are
described in this chapter: the project initiation documentation and project log.

4.3.1
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Project initiation documentation
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The project initiation documentation comprises the package of information developed and compiled
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during initiation to gain authorization to proceed with the project. It provides the basis for its ongoing
management. It contains a wide range of information that could be captured in separate documents or
systems. Alternatively, all the information could be gathered to form a single reference document.
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Management product: Project initiation documentation

Purpose
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The project initiation documentation gives the direction and scope of the project and (along
with the stage plan) forms the ‘contract’ between the project manager and the project board.
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The three primary uses of the project initiation documentation are to:
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● ensure that the project has a sound basis before asking the project board to make any
major commitment to the project
● act as a base document against which the project board and project manager can assess
progress, issues, and ongoing viability questions
● provide a single source of reference about the project so that people joining the
‘temporary organization’ can quickly and easily discover what the project is about and how
it is being managed.
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High-Level content
● Project definition explains what the project needs to achieve and should include:
background context, project objectives and desired outcomes, project scope (inclusions
and exclusions), constraints and assumptions, the user(s) and any other interested parties,
and interfaces

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 Introduction to PRINCE2 Practices

● Project approach defines the choice of solution and delivery method that will be used in
the project to deliver the business option selected from the business case, considering the
operational environment into which the solution must fit
● Business case describes the justification for the project and the selected business option
based on estimated costs, risks, and benefits
● Project management team structure a chart showing who will be involved with the project
● Role descriptions describe the roles of those in the project management team

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● Management approaches the procedures, techniques, and standards to be applied and
the responsibilities for: change management, benefits management, commercial

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Chapter 4 - Introduction to PRINCE2 Practices
management, communication management, data management, issue management,

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quality management, risk management, and sustainability management

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● Project plan describes how and when the project’s objectives are to be achieved by

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showing the major products, activities, resources, and people required on the project;
provides a baseline against which to monitor the project’s progress

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● Tailoring of PRINCE2 a summary of how PRINCE2 is tailored for the project; for example,
any changes of terminology.
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The project initiation documentation is a living product in that it should always reflect the current
status, plans, and controls of the project. Its component products will need to be updated and re-
baselined, as necessary, at the end of each stage to reflect the current status of its constituent parts.
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The version of the project initiation documentation that was used to gain authorization for the project
is preserved as the basis against which performance will later be assessed when closing the project.
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The components of the project initiation documentation are described in more detail throughout the
practice chapters (Chapters 5 to 11). However, at the end of every stage, each component of this
documentation is reviewed for currency, and if required structured changes should be made. The
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baseline version is always preserved.

4.3.2 Project log

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The project log maintains a live record of project activities and progress. The project log captures a wide
range of project activities and progress information, such as issues and risks.

Management product: Project log

Purpose
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The purpose of the project log is to capture the continually changing records of issues,
lessons, products, quality, risk, and other formal/informal actions or events. The project log is
dynamic in that it contains the current and historic record of project activities and progress.
High-level content
● Project logs and registers:

● issue register
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 Managing Successful Projects with PRINCE2

● lessons log
● product register
● quality register
● risk register
● daily log of other information actions and events.
● Common data for each log entry:

● unique identifier

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● date logged

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● logged by

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● date updated
● status

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● classification (where needed)
● details.

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The project log may be a single document or, more commonly, a collection of separate logs. Each log/register
within the project log is described in further detail throughout the practice chapters (Chapters 5 to 11).
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4.4 Format of the practice chapters
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Each practice chapter is structured as follows:

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● purpose of the practice

● guidance for effective use and management of the practice
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● techniques that support the practice

● for each practice there are two types of techniques: those that are specific to PRINCE2 (for
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example, product-based planning) and additional techniques that are useful depending on
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project context. The additional techniques can be omitted or substituted without any need to
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change how PRINCE2 is applied. Omitting or substituting PRINCE2 techniques would require the
method to be tailored

● applying the practice

● management products to support the practice
● focus of key roles for the practice
● key relationships with the PRINCE2 principles.
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