PRINCE2 glossary

This PRINCE2 glossary forms a comprehensive set of definitions for PRINCE2. Please note that the PRINCE2 definitions are based upon PRINCE2 7^th edition.

A B C D E F G H I L M O P Q R S T U W

accept (risk response)

This risk response signifies an organisation’s willingness to take the risk, fully comprehending that if the risk materialises, it will impact the objectives completely.

acceptance

This is the formal recognition that the project has successfully met the agreed acceptance criteria, thereby satisfying the stakeholder requirements.

acceptance criteria

These are a set of prioritised criteria that the final product of the project must fulfil before the customer agrees to accept it. They are measurable definitions of the attributes that make the product set acceptable to key stakeholders.

accountable

A single individual who is ultimately answerable for the activity or decision. Accountability (unlike responsibility) cannot be delegated. This contrasts with responsibility which is the individual(s) who perform the activity.

activity

An activity is a task or series of tasks that unfolds over a period, yields identifiable results, and is managed. Each PRINCE2 process contains a number of activities which comprise of actions designed to achieve a particular result.

agile and agile methods

These are a wide-ranging set of behaviours, frameworks, principles, and techniques that, when combined, enable teams and individuals to work in a manner characteristic of Agile: collaborative, prioritised, iterative, incremental and timeboxed. There are several specific Agile methods, such as Scrum and Kanban. PRINCE2 is entirely compatible with Agile working.

approval

This is the formal affirmation that a product is complete and meets its requirements (with any concessions taken into account), as outlined in its product description.

approver (in quality context)

The individual or group (such as a project board) that is recognised as being qualified and authorised to approve a product (either management or specialist) as complete and fit for purpose.

assumption

A statement accepted as true during planning, often due to certain facts being unknown or undecided. Assumptions are typically reserved for matters of substantial significance, as any potential changes or if they prove to be untrue may necessitate significant replanning efforts.

assurance

These are all the necessary systematic actions that provide confidence that the target (be it a system, process, organisation, programme, project, outcome, benefit, capability, product output, or deliverable) is suitable. Suitability can be subjectively or objectively defined depending on the situation. Assurance is often somewhat independent from what is being assured.

authority

This is the power to assign resources and make decisions, applicable at project, management stage, and team levels.

authorization

This is the moment at which authority is conferred.

avoid (risk response)

This is a risk response to a threat, either removing the potential impact of the threat or ensuring the threat no longer occurs.

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baseline

The reference points against which an entity is monitored and managed.

baseline management product

This refers to a management product defining certain aspects of the project and once approved, is subject to change control. See baseline management products.

benefit

The measurable enhancement arising from an outcome, viewed as an advantage by the investing organization, and contributes towards one or more business objectives.

benefits management approach

A strategy that outlines the management actions and benefits reviews to ensure the project outcomes are achieved, and that the project’s benefits are realised. See benefits management approach.

benefits tolerance

The allowed variation in expected benefits before the deviation needs to be escalated to higher management. This is documented in the business case.

business

The organization providing the project mandate and structure within which the project is governed.

business case

The rationale for a business activity (project), typically including timescales, costs, benefits, and risks, against which ongoing viability is assessed. See business case.

business layer

The governance layer outside the project that sets the overall objectives and tolerance levels for the project and holds the project board accountable for achieving them.

business objective

The measurable outcomes demonstrating progress towards the organization’s strategy and to which the project should contribute.

business opportunity

An issue representing previously unanticipated positive consequences for the project or user organization.

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capability

The completed set of project outputs required to deliver an outcome.

change

A change is a modification to any of the approved management products that forms the project baseline.

change authority

An individual or team entrusted by the project board to evaluate change requests or off-specifications. The change authority may be allocated a specific change budget and has the authority to approve changes that fall within that budget.

change budget

The funds allocated to the change authority, which can be used to implement authorised requests for changes.

change control

The process ensuring that all changes potentially affecting the project’s agreed objectives are identified, evaluated and then approved, rejected, or deferred.

change management

The means by which an organization transitions from its current state to a target state. See change management.

checkpoint

A time-driven review of progress at the team-level.

checkpoint report

A progress report given by a team to the project manager at a checkpoint, providing reporting data as defined in the work package. See checkpoint report.

closure recommendation

A recommendation prepared by the project manager for the project board to issue a project closure notification when they are satisfied that the project can be closed.

co-creation

A collaborative process where multiple stakeholders, often including customers, partners, or users, actively participate in the development, design, or innovation of products and agreed ways of working to ensure they are adopted by the project and organizational ecosystems.

collaboration

The act of working jointly with others across the project ecosystem to achieve shared goals or objectives. It involves the exchange of ideas, resources, and efforts among participants to enhance productivity, creativity, and the overall effectiveness of a project.

communication management approach

A description of how team members will actively engage with and support each other and how relationships will be developed across the project ecosystem. See communication management approach.

concern

An issue whose timeliness and impact must be assessed.

concession

An off-specification that is accepted by the project board without the need for corrective action.

constraints

These are the limitations or restrictions that the project must operate within.

corrective action

A set of measures to resolve a threat to a plan’s tolerances or a defect in a product.

cost tolerance

The permissible variation in a plan’s cost before the deviation needs to be escalated to the next level of management. Cost tolerance is documented in the respective plan.

culture

The collection of shared attitudes, values, goals, and operational approaches that define and characterize a group of individuals or an organization. Culture plays a fundamental role in shaping behaviour and interactions within the project and organizational ecosystems.

customer

The person or group who initiated and commissions the project and will benefit from the end results. ‘Customer’ is only used where there is a commercial relationship between the business and the supplier. Otherwise, it is known as the business.

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daily log

This is a record maintained to keep track of informal issues or concerns that fall under the jurisdiction of the project manager. See PMI PBA® Certification Training Courses Onlinedaily log.

dashboard

data analytics

The process of utilizing and examining data to enhance decision-making effectiveness or to streamline operations by automating tasks. Data analytics involves gathering, processing, and interpreting data to extract valuable insights and drive informed actions.

deliverable

See output.

delivery method

The approach and framework that dictate how the project’s work is to be executed and completed. Projects may employ one or multiple delivery methods to produce the necessary deliverables. Common delivery methods include iterative-incremental, linear-sequential, or hybrid approaches, each tailored to the project’s specific requirements and circumstances.

delivery model

The organizational and commercial considerations that are deployed to fulfil the project’s objectives, taking into account the limitations and capabilities of the user, business, and supplier organizations. This strategy is outlined in the commercial management approach and is reflected in the structure of the project management team.

dependency

A condition where the completion or functionality of one product or task relies on another product or task. In the context of a project, there are at least two types of dependencies: external and internal.

DevOps

This is a synergistic approach that merges development and operations with the objective of producing a product or service where the two spheres of work, and potentially the teams as well, unite as seamlessly as possible. See DevOps.

dis-benefit

A measurable degradation arising from an outcome deemed negative by one or more stakeholders, thereby diminishing one or more organizational objectives.

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early warning indicators

These are used to track critical aspects of the project so that if certain predefined levels are reached, corrective action is triggered. They are selected for their relevance to the project objectives.

embedding (PRINCE2)

The process of integrating something as a core part of a larger entity. An organization needs to do embedding to incorporate PRINCE2 as its company-wide project management method and foster its widespread adoption. See embedding PRINCE2 .

end project report

This is a report presented by the project manager to the project board, confirming the delivery of all products. It updates the business case and evaluates the performance of the project against the original Project Initiation Documentation (PID). See end project report .

end stage assessment

The project board and the project manager review the end stage report to decide on approving the next stage plan. Depending on the project’s size and criticality, the review can be either formal or informal. The decision to proceed should be officially documented.

end stage report

This is a report delivered by the project manager to the project board at the conclusion of each management stage of the project. It informs about the project’s performance during the management stage and the project status at the stage end. See end stage report .

enhance (risk response)

This is a risk response to an opportunity where proactive measures are undertaken to increase both the likelihood of the event happening and the impact of the event if it transpires.

event-driven control

This is a control activated when a specific event takes place. This could be, for instance, the conclusion of a management stage, the completion of the PID, or the generation of an exception report. It can also include organizational events that may influence the project, such as the end of the fiscal year.

exception

This situation arises when it is projected that there will be a deviation beyond the tolerance levels agreed upon between the project manager and the project board (or between the project board and corporate, programme management or the customer).

exception assessment

This is a review by the project board to approve or reject an exception plan.

exception plan

This is a plan that typically follows an exception report. For a stage plan exception, it covers the timeframe from the present to the end of the current management stage. If the exception is at the project level, it would replace the project plan. See plan .

exception report

This report details the exception situation, its impact, available options, recommendation, and the impact of the recommendation. It is prepared by the project manager for the project board. See exception report .

external dependency

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log

An informal repository of information that is managed by the project manager and does not require any agreement by the project board on its format and composition.

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manage by exception

A technique where variances from a plan that surpass a predetermined control limit are escalated for resolution (e.g., when expenditure exceeds the budget by 10%). See ‘management by exception’ principle .

management

The process of directing the execution of tasks in accordance with established and agreed-upon methods of operation. Co-creating these methods of operation with project team members (and stakeholders) significantly enhances their willingness to adhere to and be managed in alignment with these methods.

management approaches

The procedures, techniques, and standards to be applied and the responsibilities for: benefits management, change management, commercial management, communication management, data management, issue management, quality management, risk management, and sustainability management.

management product

A product required for managing the project and maintaining quality (e.g., highlight report, end stage report). These management products remain constant, regardless of the project type, and can be utilized as described, or with relevant modifications, for all projects. There are three types of management products: baselines, records, and reports. See management products .

management stage

A segment of a project that the project manager oversees on behalf of the project board at any given time. At the end of each management stage, the project board reviews the progress to date, the state of the project plan, the business case, risks, and the next stage plan to decide whether to continue with the project. See ‘manage by stages’ principle and management stages .

maturity

A measure of the reliability, efficiency, and effectiveness of a process, function, organization, etc. The most mature processes and functions are formally aligned with business objectives and strategy and are supported by a framework for continual improvement.

maturity model

A method of assessing organizational competence in a specific skill area. See Portfolio, Programme, and Project Management Maturity Model .

milestone

A noteworthy event in a plan’s schedule, like the completion of key work packages, a development step, or a management stage.

minimum viable product

Used in agile development. Describes a product with just enough features to satisfy early customers, who can then provide feedback for future product development. The idea behind it is to achieve the greatest amount of learning in the shortest amount of time.

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off-specification

Something that the project should deliver but currently isn’t (or is forecasted not to be). It might be a missing product or a product not meeting its specifications. It is one type of issue.

operational and maintenance acceptance

A specific type of acceptance by the individual or group who will support the product after it has been handed over into the operational environment.

organizational ecosystem

Those internal parts of an organization (e.g. staff, board, owners, and other stakeholders) along with the organization’s external relationships such as customers, partners, suppliers, regulators, and competitors.

outcome

The result of change, usually impacting real-world behaviour and/or circumstances. Outcomes are desired when a change is initiated. They are achieved as a result of the activities carried out to bring about the change.

outline business case

Reasons why the project is needed and the selected business option.

output

A specialist product that is delivered to a user (or users). Note that management products are not outputs but are created exclusively for managing the project. Can be tangible or intangible.

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performance target

A project’s goals for time, cost, quality, scope, benefits, risk, and sustainability.

plan

A detailed proposition for doing or achieving something that outlines the what, when, how, and by whom it will be accomplished. In PRINCE2, the types of plan are: project plan, stage plan, team plan, and exception plan. See plan .

planning horizon

The timeframe for which accurate planning is possible.

portfolio

practice

An aspect of project management that requires consistent attention and specific treatment for the PRINCE2 processes to be effective. See practices .

premature closure

The PRINCE2 activity to terminate a project before its planned closure. The project manager must ensure that ongoing work is not simply abandoned, but that the project salvages any value created to date and checks that any gaps left by the project’s cancellation are raised to corporate, programme management, or the customer.

prerequisites (plan)

Any fundamental aspects that must be in place, and remain in place, for a plan to succeed.

PRINCE2 principles

The guiding obligations that determine whether the project is genuinely being managed using PRINCE2 and ensure effective application and tailoring of PRINCE2 to any project. See principles .

PRINCE2 project

A project that applies the PRINCE2 principles.

probability

The evaluated chance of a specific threat or opportunity occurring, including a consideration of the frequency with which this may arise.

problem

An issue with a negative and immediate impact.

procedure

A series of actions for a practice established specifically for the project (for example, a risk management procedure).

process

A structured set of activities designed to achieve a specific objective. A process takes one or more defined inputs and transforms them into defined outputs. See processes .

plan.Courses

project productPROJECT MANAGEMENT

The final deliverable that the project must produce for acceptance.PRINCE2

project product description®

A unique type of product description used to agree on the project’s scope and requirements, define the customer’s quality expectations, and establish the acceptance criteria for the project. See Foundation project product descriptionLearn the fundamentals of the PRINCE2 method..Practitioner

project supportIncludes Foundation & Practitioner combined option.

An administrative role within the project management team. Project support can include advice and help with project management tools, guidance, administrative services such as filing, and the collection of actual data. See Association for Project Management (APM)

A record containing summary details of all planned and completed quality activities. It is used by the project manager and project assurance as part of reviewing progress. See Practitioner quality registerIncludes Foundation & Practitioner combined option..Better Business Cases

quality review™

An assessment of whether a product is complete, adheres to standards, and meets its quality specifications. It may be conducted at multiple points in the development of a complex product.Foundation

quality specificationsLearn the fundamentals of Better Business cases.

These are the standards or specifications that a product must meet, along with the measurements that will be used to evaluate the final product.Practitioner

quality toleranceIncludes Foundation & Practitioner combined option.

The range of acceptable values for a product’s quality criterion, documented in the project product description and each product’s description.P3O

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recordsFoundation

Dynamic documents that keep track of project progress. Collectively known as the project log and includes the daily log, issue register, lessons log, product register, quality register, and risk register. See Learn the fundamentals of the P3O project management office.recordsPractitioner .Includes Foundation & Practitioner combined option.

reduce (risk response)Workshops

A proactive risk management strategy that aims to decrease the probability or impact of a risk event.Introduction to Project Management

reports1-day workshop to learn the basics of project management.

Documents that provide a status update on certain aspects of the project. See Project Management Essentials reports2-day workshop to learn how to manage projects without getting certified..Writing Business Cases

request for changeHalf-day workshop to learn to write robust business cases.

A proposal for a change to an established baseline. It is a type of issue.AI in Project Management

requirementLearn how to use AI tools in everyday project work.

A description of what a user needs or expects, and documented in an approved management product.ARTIFICIAL INTELLIGENCE (AI)

residual riskBCS AI

The risk remaining after a risk response has been applied.Foundation

resourceLearn the fundamentals of artificial intellegence.

The goods, services, equipment, materials, facilities, and funding required to complete a plan.AI Project Governance Framework (AIPGF)

responsibleFoundation

The person(s) who has the authority and is expected to perform a task. Responsibility can be delegated.Learn the fundamentals of the governance framework.

reviewer (in quality context)Practitioner

A person or group independent of the producer who assesses whether a product meets its requirements as defined in its product description.Includes Foundation & Practitioner combined option.

riskWorkshops

An uncertain event or set of events that, if they occur, will influence the achievement of objectives. Risks are measured by the combination of the probability of occurrence and the magnitude of their impact. See AI in Project Management risk practiceLearn how to use AI tools in everyday project work..AGILE

risk action ownerAgilePM

An assigned individual responsible for executing an action to address a risk. They are required to keep the risk owner updated on the situation. Also known as risk actionee.®

risk appetite – Agile Project Management

An organization’s unique stance towards risk-taking, which determines the level of risk it deems acceptable.Foundation

risk budgetLearn the key principles of Agile Project Management.

A sum of money to fund specific management responses to the project’s threats and opportunities (for example, to cover the costs of any contingent plans should a risk materialize).Practitioner

risk evaluationIncludes Foundation & Practitioner combined option.

The process of understanding the cumulative effect of identified threats and opportunities on a project.PRINCE2

risk exposure®

The current level of risk that an organization is subject to. Agile

risk impactFoundation

The estimated effect on project objectives should a risk occur.Learn the fundamentals of the PRINCE2 Agile method.

risk managementPractitioner

A systematic approach that involves identifying and assessing risks, planning and implementing risk responses, and communicating risk management activities to stakeholders.Includes Foundation & Practitioner combined option.

risk management approachScrum

An approach that describes the goals of risk management, the procedure to be followed, the roles and responsibilities, risk tolerances, the timing of risk management interventions, the tools and techniques to be used, and the reporting requirements. See Scrum Essentials risk management approachSelf-paced training course to learn the essentials of Scrum..Scrum Master

risk ownerChoose Scrum Alliance or Scrum.org Scrum Master training courses.

A designated individual who is responsible for managing, monitoring, and controlling all aspects of a specific risk, including the implementation of chosen responses.Scrum Product Owner

risk probabilityChoose Scrum Alliance or Scrum.org Product Owner training courses.

The estimated likelihood that a risk will occur.AgileBA

risk profile®

A summary of the types of risk an organization faces and its level of exposure to these risks. – Agile Business Analysis

risk registerFoundation

A log of identified risks associated with a project, including their current status, and history. See Learn the fundamentals of Agile Business Analysis.risk registerPractitioner .4-day course including Foundation.

risk responseLean Six Sigma

Actions taken to bring a situation to a level where risk exposure is acceptable to the organization.Yellow Belt

risk toleranceSelf-paced training course to gain LSS Yellow Belt.

The risk exposure levels that can be exceeded with proper approvals, but which will trigger a response (such as reporting to senior management) if exceeded.PMI

risk velocity®

How quickly a risk would have an impact on objectives if it occurs.PMI-ACP

roleSelf-paced course to prepare you for the exam (exam not included).

The function assigned to a group or individual in a project. It is not the same as the job title of a person outside of that project.Kanban

role descriptionsEstimating for Agile Foundation

A description of a role from the project management team and its specific responsibilities.Agile Learning Library (ALL)™

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scheduleBCS Business Analysis

A visual layout, such as a Gantt chart, illustrating a plan consisting of a sequence of tasks, resource allocations, and so on. In PRINCE2, schedules are included in project, stage, or team plans. Daily actions are recorded in relevant project logs.Business Analysis Foundation

scopeLearn the fundamentals of business analysis.

For a plan, it encompasses all its products and their detailed requirements. It’s illustrated by the product breakdown structure for the plan and associated product descriptions.Modelling Business Processes

scope toleranceGain practitioner certificate in modelling business processes.

The permissible variance in a plan’s scope before it necessitates escalation to the next level of management.Business Analysis Practices

senior supplier

A role within the project board that provides expertise related to the primary discipline(s) involved in the production of the project’s output(s). The senior supplier represents supplier interests within the project and offers supplier resources. See Gain practitioner certificate in business analysis practices.senior supplierRequirements Engineering .Gain practitioner certificate in requirements engineering.

senior userBusiness Analysis International Diploma

A project board role responsible for ensuring that user needs are accurately specified, and that the final solution satisfies those needs. See All 4 courses bundled into this Diploma certification package.senior userAgileBA.®

share (risk response) – Agile Business Analysis

A risk response that involves applying a win/lose formula to both a threat or opportunity: both parties share the reward if costs are less than the planned cost, and both share the cost if the planned cost is exceeded.Foundation training

specialist productLearn the fundamentals of Agile Business Analysis.

A product that is the focus of the plan. It is project-specific (e.g., an advertising campaign, a car park ticketing system, etc.). Also known as a deliverable.Practitioner

sponsor4-day course including Foundation.

The primary driving force behind a program or project. In PRINCE2, the sponsor is likely to be the project executive on the project board, or the individual who appointed the executive.PMI

sprint®

A pre-set period (usually 2-4 weeks) designated for creating selected features from the product backlog.PMI-PBA

stageSelf-paced course to prepare you for the exam (exam not included).

See management stage.Business Analysis Learning Library (BALL)™

stage planCHANGE MANAGEMENT

A detailed plan that serves as a basis for project management control throughout a management stage. See APMG Change Managementplan

A technique for writing a requirement in the form of who, what, and why.Select your preferred training course below:

user’s quality expectations

A statement about the quality expected from the project product, captured in the project product description.PRINCE2 AGILE COURSES

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work breakdown structure

A hierarchy of all work done during a project that forms a link between the product breakdown structure and the work packages.BETTER BUSINESS CASES COURSES

work packageSelect your preferred training course below:

The work assigned to a team manager encompassing the delivery of one or more products.

work package descriptionP3O COURSES

A set of information necessary for the creation of one or more products. It includes a description of the work, product descriptions, any production constraints, and confirmation of agreement between the project manager and the person or team manager implementing the work package. See Select your preferred training course below:work package description .WORKSHOPS

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