PRINCE2 Stages Demystified

The art and science of PRINCE2 management stages

Brought to You by Dave Litten

Management stages

PRINCE2 breaks the project down into discrete, sequential sections, called management stages. A PRINCE2 project is planned, monitored and controlled on a stage-by-stage basis.

Definition: Management stage
The section of a project that the project manager is managing on behalf of the project board at any one time, at the end of which the project board will wish to review progress to date, the state of the project plan, the business case and risks and the next stage plan, in order to decide whether to continue with the project.

The choice of appropriate management stages for a project will depend on a number of factors, including:

the size and complexity of the project (e.g. shorter management stages offer more control, whereas longer management stages reduce the burden on senior management)
significant decisions and control points required during the project's lifecycle; these will often be linked to key investment, business or technical decisions
organizational policies and standards
In PRINCE2, a project must have at least two management stages:
an initiation stage
at least one further management stage. The more complex and risky a project is, the more management stages will be required
The focus on managing by stages ensures that the project is properly initiated before work starts on delivery of the project's outputs. It also:
provides review and decision points, giving the project board the opportunity to assess the project's viability at defined intervals, rather than let it run on in an uncontrolled manner
gives the ability to ensure that key decisions are made prior to the detailed work needed to implement them
allows clarification of what the impact will be of an identified external influence, such as the corporate budget-setting process or the finalization of legislation
facilitates the manage by exception principle by delegating authority to the project manager at each management stage.

The project board authorizes one management stage of the project at a time.

Towards the end of each management stage (other than the final one) the project manager will review the business case and project plan, update the project documentation with the results of the stage, and create an end stage report and stage plan to request authorization to commence the next management stage.

The end stage report, together with the stage plan for the next management stage, should contain all the information necessary to enable the project board to conduct an end stage assessment and make a decision as to whether to proceed.

The project board only authorizes the next management stage if there is sufficient business justification to continue. If the project no longer has a valid business case, and the project board has been delegated the appropriate authority, it will prematurely close the project.

Without this authority, the project board will escalate its recommendation for closure to the corporate, programme management or customer decision makers.

The project board delegates the authority for day-to-day control of a management stage, within agreed tolerances, to the project manager.

As long as the management stage is forecast to remain within tolerance, the project manager has discretion to make adjustments as required.

This allows the project board to manage by exception, retaining the level of control it requires while reducing the administrative overhead of being involved.

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