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.

Back to top

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.

Back to top

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.

Back to top

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 daily log.

dashboard

A visual representation of extensive decision-support data that provides a real-time, concise summary, typically presented in a graphical and user-friendly format. Dashboards offer key insights into progress and performance, facilitating quick and informed decision-making.

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.

Back to top

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

This arises when a project’s progress or success is contingent upon factors outside the project’s immediate control, often involving external organizations, stakeholders, or conditions. Managing external dependencies often requires collaboration and coordination beyond the project team’s boundaries.

external products

Products which are developed or provided outside of the project’s control but which the project is dependent on, for example, the publication of a new standard.

exploit (risk response)

This is a risk response to an opportunity. It means seizing the opportunity to guarantee its occurrence and realizing its impact.

Back to top

follow-on action recommendations

These are proposed actions related to unfinished tasks, ongoing issues and risks, and any other tasks needed to move a product to its next life phase. These are summarized and included in the end stage report (for phased handover) and end project report.

forecast

A projection or estimation made by analyzing historical data and patterns from the past. Forecasts are used to predict future trends, outcomes, or events based on the observed patterns and trends from previous data.

Back to top

Gantt chart

This is a widely used technique for scheduling work activities against time using horizontal lines or bars to display when the tasks start and end. This can further be used to schedule dependencies between the tasks.

governance (corporate)

This refers to the continuous activity of maintaining a robust system of internal control whereby the directors and officers of an organization ensure that effective management systems, including financial monitoring and control systems, have been established to protect assets, earning capacity, and the organization’s reputation.

governance (project)

These are aspects of corporate governance that are specifically tied to project activities. Efficient governance of project management guarantees that an organization’s project portfolio aligns with the organization’s goals, is delivered efficiently, and is sustainable.

governing

The continuous process of upholding a robust system within an organization, overseen by its directors and officers, to guarantee the establishment of effective management systems including those for financial monitoring and control and are put in place to safeguard the organization’s assets, its capacity to generate earnings, and its overall reputation.

Back to top

handover

This is the transfer of ownership of a product set to the respective user(s). The set of products is known as a release. A project may experience more than one handover in its lifecycle (phased delivery). The final handover occurs in the closing a project process.

highlight report

This is a periodic report from the project manager to the project board on management stage progress. See highlight report.

Back to top

impact (of risk)

The outcome of a particular threat or opportunity happening, or the anticipation of such an outcome.

initiation stage

The time period from when the project board authorizes initiation to when it authorizes the project (or decides not to proceed with it). Detailed planning and the establishment of the project management infrastructure are covered by the initiating a project process.

Internal dependency

This occurs when one aspect or component within the project is reliant on another aspect or component within the same project. Internal dependencies are typically managed within the project team.

issue

A relevant event that has occurred, wasn’t planned, and requires management action. Project issues can be about anything related to the project.

issue register

A register used to capture and maintain information on all formally managed issues. The issue register should be regularly monitored by the project manager. See issue register.

issue report

A report containing the description, impact assessment, and recommendations for a request for change, off-specification, or a problem/concern. It is only created for issues that need formal handling. See issue report.

Back to top

leadership

The process of inspiring and driving individuals to accomplish a project’s objectives. In project contexts, this is most effectively achieved through collaborative efforts within the project ecosystem. It involves the skills of persuasion, influence, and co-creation, with a primary emphasis on managing crucial relationships and actively seeking regular feedback. This approach ensures that team members remain aligned with the project’s objectives and are committed to shared methods of operation.

lesson

Information intended to support and enhance the future execution of a project or other projects, actively encouraging the process of learning from past experiences. These experiences can be either positive, such as successful tests or outcomes, or negative, such as mishaps or failures.

lessons log

An informal collection of lessons that are relevant to the current project or future projects. See lessons log.

lessons report

A document that records any lessons that could be beneficially applied to other projects. The objective of the report is to incite action so that the positive lessons from a project become integrated into the organization’s standard practices, and the organization can prevent the recurrence of negative lessons in future projects. See lessons report.

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.

Back to top

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.

Back to top

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.

Back to top

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

The totality of an organization’s investment (or a segment thereof) in the changes required to achieve its strategic objectives.

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.

producer (in a quality context)

The person or group responsible for developing a product.

product

An input or output, whether tangible or intangible, that can be predefined, created, and tested. PRINCE2 identifies two types of products: management products and specialist products.

product backlog

A list of new features for a product, and commonly used in agile development approaches. The list may be composed of user stories that are structured so that they describe who wants the feature and why.

product breakdown structure

This term describes a hierarchical division of all the products that a plan is set to produce.

product description

This refers to a detailed depiction of a product, outlining its purpose, composition, derivation, and the criteria for its quality. This description is initially formulated for the major products during the initiation stage, and for other products when planning a subsequent stage. See product description.

product flow diagram

This is a visual representation that illustrates the sequence and dependencies of the products listed in a product breakdown structure.

product register

Part of the project log that identifies the products to be delivered by the project and records their acceptance. See product register.

product-based planning

A technique that leads to a detailed plan, based on the creation and delivery of necessary outputs. It takes into consideration the prerequisite products, quality requirements, and dependencies between products.

programme

This temporary, flexible organizational structure is created to coordinate, oversee, and direct a set of related projects and activities. The purpose is to deliver outcomes and benefits that align with the organization’s strategic objectives. A programme often spans several years. See programmes.

progress

The measure of the achievement of a plan’s objectives.

project

A temporary organization created with the purpose of delivering one or more business products according to a mutually agreed business case. See project.

project approach

A depiction of how the project work is to be undertaken. For instance, whether a product is being built from scratch or an existing product is being purchased.

project assurance

The project board’s responsibility to ensure the project is conducted correctly. Each project board member focuses on a specific area for project assurance, including business assurance for the executive, user assurance for the senior user(s), and supplier assurance for the senior supplier(s). See project assuranceHow PRINCE2 Qualifications Can Help Your Career | Knowledge Train.

project baseline

The current version of those management products and specialist products which are subject to change control.

project board

Accountable to the business for the success of the project and has the authority to direct the project within the remit set by the business. See project board.

project brief

A description of a project’s purpose, cost, time, performance requirements, and constraints. Created before the project begins, it’s used during the initiating process to create the PID and its components. After the PID is created, the project brief is no longer maintained. See project brief.

project closure notification

Advice from the project board that informs all stakeholders and host sites that project resources can be released and support services demobilized. It should indicate a closure date for project-related charges.

project definition

Explains what the project aims to achieve, including: 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.

project ecosystem

Those elements of the business involved in or directly impacted by the project and the associated users and suppliers.

project executive

This is the individual vested with the overall responsibility to ensure that a project achieves its objectives and delivers the projected benefits. They should ensure that the project maintains its business focus, that it has clear authority, and that the work, including risks, is actively managed. The executive chairs the project board, represents the customer, and is responsible for the business case. See project executive .

project initiation documentation (PID)

A logical collection of documents that compile key information required to start a project on solid grounds and communicates this information to all involved parties. See project initiation documentation .

project initiation notification

Advice from the project board to inform all stakeholders and host sites about project initiation and to request logistical support sufficient for the initiation stage.

project lifecycle

The span of time from a project’s initiation to the acceptance of the project product.

project management

The act of planning, delegating, monitoring, and controlling all aspects of a project, along with motivating those involved, to achieve the project’s objectives within the set performance targets for time, cost, quality, scope, benefits, and risk. See project management .

project management team

The comprehensive management structure of a project, including the project board, project manager, team manager, project assurance, and project support roles. See project management team .

project management team structure

An organizational chart displaying the individuals assigned to the project management team roles, showing their delegation and reporting relationships. See project management roles.

project manager

The individual tasked with the authority and responsibility to manage the project on a day-to-day basis, delivering the required products within the agreed-upon constraints with the project board. See project manager .

project mandate

An external product produced by the authority commissioning the project, which triggers the start-up of a project.

project office

A temporary office established to support the delivery of a specific change initiative being delivered as a project. If used, the project office takes on the responsibility of the project support role. See project management office .

project plan

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

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.

scope

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.

scope tolerance

stage plan

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

stakeholder

A finite time period dedicated to achieving a specific goal or objective. The deadline is fixed, with work within it being prioritized. Lower-level timeboxes are days or weeks long (like sprints), while higher-level ones contain multiple lower-level timeboxes (like stages).