The 7 principles of PRINCE2 are: Continued Business Justification, Tailored to Suit the Project Environment, Learn from Experience, Defined Roles and Responsibilities, Manage by Stages, Manage by Exception, and Focus on Products. The principles provide guidance for running a project successfully and are applied to any project no matter the size or context.

1. PRINCIPLES
PRINCE2® Foundation Course Principles 1

2. What are Principles?
• Basis of What defines a PRINCE2® Project
• There are 7 Principles in PRINCE2®
• Applies to any project
• Universal & Empowering
• Based on Lessons Learned
• Framework of Good Practice
• Examples & Further Explanation:
– Certifications such as ISO, CMMI, XX requires an organisation to comply with their
standards and clauses and only than the organisation is awarded with the certification.
Organisation, depending on the nature of their business, may have their own way of
implementing the clause, however, as long as each clause is implemented.
– Similarly for the project to be certified as following PRINCE2 methodology, it has to
implement each of the seven principles.
– PRINCE2 offers Themes, Processes, Templates and Roles & Responsibilities to describe
When, How and Who will carry out various activities to help
PRINCE2® Foundation Course Principles 2

3. The Seven Principles of PRINCE2®
Continued
Business
Justification
Tailor to suit
Learn from
the Project
Experience
Environment
Defined Roles
Focus on
&
Products
Responsibilities
Manage by Manage by
Exception Stages
PRINCE2® Foundation Course Principles 3

4. Continued Business Justification
• “A PRINCE2® Project has Continued Business Justification”
• There is a justifiable Reason to start it
• The justification remains valid throughout
• Justification is documented in the Business Case
• Drives the Decision making process
• Project should be Stopped if no longer viable
• Justification is verified at:-
– Start of the Project
– End of Initiating the Project
– End of each Stage of the Project
– For major Risks / Issues / Changes
PRINCE2® Foundation Course Principles 4

5. Learn from Experience
• “PRINCE2® Project team learn from previous experience: lessons are
Sought, Recorded & Acted upon throughout the life of the Project”
• Refer to Previous Similar Project when Starting Up
• Consult Experts when first for the Organization
• Improve using Lessons Learned during the Progress
• Broadcast Lessons to others in the Organization
PRINCE2® Foundation Course Principles 5

6. Defined Roles & Responsibilities
• “A PRINCE2® Project has Defined and Agreed Roles and Responsibilities
within an Organization Structure that engages the Business, User and
Supplier Stakeholder interests”
• What is expected of Me / others?
• Three Stakeholder interests represented on the team:-
• Business – Value for money
• Users – Use products to deliver the benefits
• Suppliers – Provide the resources and expertise
PRINCE2® Foundation Course Principles 6

7. Manage By Stages
• “A PRINCE2® Project is Planned, Monitored and Controlled on a Stage-by-
Stage basis
• Divide the project into number of Management Stages
• Decision whether to proceed at the end of each Stage
• Plan, Delegate, Monitor & Control on a Stage-by-Stage basis
• Planning can only be done to a level of detail that is manageable and
foreseeable
• A great deal of effort can be wasted on attempts to plan beyond a sensible
horizon
Initiation
1
2
3
4
5
PRINCE2® Foundation Course Principles 7

8. Manage By Exception
• “A PRINCE2® Project has defined Tolerances for each Project Objective to
establish limits of delegated Authority”
• Efficient use of Senior Management time
• Distinct responsibilities and clear accountabilities for Directing,
Managing and Delivering a project
• Tolerances are set for delegating authority from one management level
to the next
• Next level of management is referred if tolerances are forecasted to be
Exceeded
• Tolerances are set for Time, Cost, Quality, Scope, Risk and Benefit
PRINCE2® Foundation Course Principles 8

9. Focus on Products
• “A PRINCE2® Project focuses on the Definition and Delivery of Products, in
particular their Quality requirements”
• Projects are Output oriented, Not Activity oriented
• Agreed Products defines the Scope of the Project
• Products provide the Basis for Planning and Control
• PRINCE2® uses Product Description to define Product
• Product Description provides level of quality required from a product
PRINCE2® Foundation Course Principles 9

10. Tailor to suit the Project Environment
• “PRINCE2® is Tailored to suit the project’s Environment, Size,
Complexity, Importance, Capability and Risk”
• Ensures the Method is Appropriate for the Project
• Ensures that Project Controls are based on Project’s Need
• Project Manager & Project Board decides How the Method will be Applied
• The Project Initiation Document shows how the Method is being Tailored
to suit the Project
PRINCE2® Foundation Course Principles 10