Eight components of PRINCE2 Project Management Method

1. Business Case
PRINCE2 is based on the premise that a viable Business Case should drive a project. The essential contents are defined and linked with the moments in the processes when the Business Case should be updated or consulted.

2. Organisation
The structure of a project management team. A definition of the roles, responsibilities and relationships of all staff involved in the project. PRINCE2 describes roles. According to the size and complexity of a project, these roles can be combined or shared.

3. Plans
PRINCE2 offers a series of plan levels that can be tailored to the size and needs of a project, and an approach to planning based on products rather than activities.

4. Controls
A set of controls that facilitate the provision of key decision-making information, allowing the organisation to pre-empt problems and make decisions on problem resolution. For senior management PRINCE2 controls are based on the concept of ‘management by exception’, i.e. if we agree a plan, let the Project Manager get on with it unless something is forecast to go wrong.

5. Risk
Risk is a major factor to be considered during the life of a project. PRINCE2 defines the key moments when risks should be reviewed, outlines an approach to the analysis and management of risk, and tracks these through all the processes.

6. Quality
PRINCE2 recognises the importance of quality and incorporates a quality approach to the management and technical processes. It begins by establishing the Customer’s Quality Expectations and follows these up by laying down standards and quality inspection methods to be used, and checking that these are being used.

7. Configuration Management
Tracking the components of a final product and their versions for release is called configuration management. There are many methods of configuration management available. PRINCE2 does not attempt to invent a new one, but defines the essential facilities and information requirements for a configuration management method and how it should link with other PRINCE2 components and techniques.

8. Change Control
PRINCE2 emphasises the need for change control and this is enforced with a change control technique plus identification of the processes that apply the change control.