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)

A conscious decision to proceed with a project, acknowledging the presence of risk and understanding that it could fully impact project objectives if it materialises.

acceptance

Official acknowledgement by relevant stakeholders that the project has met all predefined acceptance criteria to their satisfaction.

acceptance criteria

A prioritised list of measurable standards the project’s final product must satisfy for the customer to accept the product, reflecting what is critically important to the stakeholders.

accountable

Refers to the singular person with ultimate ownership and liability for an action or decision; accountability is non-transferable, unlike the allocation of responsibilities.

activity

A defined task or sequence of tasks executed over time, yielding specific outcomes and managed within the frameworks of PRINCE2 processes.

agile and agile methods

Encompasses a variety of practices, frameworks, and techniques fostering a collaborative, prioritised, iterative and incremental approach to work, such as Scrum and Kanban, compatible with PRINCE2 principles.

approval

The formal consent given when a product meets its defined requirements and quality standards, taking into account any agreed deviations.

approver (in quality context)

An entity, such as an individual or board, officially empowered to sanction a product as complete and fit for its intended purpose.

assumption

Planning premise taken to be true in the absence of complete knowledge, generally reserved for elements of significant impact that could necessitate a re-plan if they change or are inaccurate.

assurance

A set of activities designed to instil confidence that a target, such as a project or its outputs, meets the defined suitability criteria, whether subjective or objective.

authority

The granted power to commit resources and make decisions within the project, at different organisational levels.

authorisation

The act of granting the power or right to carry out certain actions within the project’s framework.

avoid (risk response)

A pre-emptive approach to either eliminate the potential effect of a threat or ensure the threat does not happen.

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baseline

Defined reference points that serve as the basis for monitoring and managing an entity.

baseline management product

A management product that specifies aspects of the project, subject to change control mechanisms post-approval to manage any alterations.

benefit

An outcome of the project resulting in a measurable improvement, regarded as advantageous by the investing organisation, aiding in achieving one or multiple business goals.

benefits management approach

A comprehensive plan detailing the actions and reviews required to ensure the project’s intended outcomes and overall benefits are realised.

benefits tolerance

The permissible deviation in the expected benefits which, if exceeded, necessitates escalation to higher management, as documented within the business case.

business

The organisation that provides the project’s mandate and framework for governance.

business case

A justification for a proposed project or task, weighing timescales, cost, benefits, and risks against the continued viability of the project.

business layer

The governance structure external to the project that establishes objectives and tolerances for the project, holding the project board to account for their realisation.

business objective

The measurable results that indicate progress towards the organisation’s strategy, to which the project should contribute.

business opportunity

Unanticipated positive outcomes that provide advantages to the project or user organisation.

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capability

A complete set of project outputs needed to bring about a specific outcome.

change

Any alteration to pre-approved project management products or project baselines.

change authority

A designated individual or team empowered by the project board to assess change requests and approve changes within a specific budgetary limit.

change budget

Fiscal resources earmarked for the change authority for the execution of approved change requests.

change control

A procedural framework for identifying, evaluating, and authorising alterations that impact the project’s agreed objectives.

change management

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

checkpoint

A scheduled review of progress at the team level within the project.

checkpoint report

A team-level progress update provided to the project manager, containing information as defined by the work package.

closure recommendation

A suggestion prepared by the project manager for the project board to signal that project closure procedures may commence.

co-creation

A collective effort where stakeholders, such as customers or partners, actively partake in the creation and innovation process to ensure widespread adoption within project and organisational settings.

collaboration

The act of engaging jointly with others to reach common project objectives, sharing ideas, resources, and efforts to enhance overall project effectiveness and productivity.

communication management approach

A strategy that details how project participants will communicate and support one another to develop relationships throughout the project.

concern

An emerging issue that requires prompt evaluation of its timing and potential impact.

concession

A deviation from a product’s specifications that is accepted by the project board without requiring remedial action.

constraints

Boundaries and limitations within which the project must be delivered.

corrective action

Interventions devised to address threats to the project’s tolerances or product defects.

cost tolerance

The allowable range of variance in a plan’s cost before deviations must be escalated to higher management, as detailed in the respective plan.

culture

The collective mindsets, values, objectives, and practices that characterise and guide interactions within a group or organisation, shaping project behaviours and outcomes.

customer

The entity commissioning the project and benefiting from its results, termed ‘business’ unless there is a significant commercial relationship between the business and supplier.

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daily log

A diary maintained by the project manager to record informal issues or concerns within their remit.

dashboard

A graphical interface presenting key decision-support data in real-time, to offer swift and informed insights into progress and performance.

data analytics

The practice of examining data to improve decision-making or streamline operations, typically through the collection, processing, and analysis of data to derive actionable insights.

deliverable

See output.

delivery method

The prescribed framework and methods guiding the execution and completion of the project’s work items. Methods include iterative-incremental, linear-sequential, or hybrid approaches.

delivery model

Strategic organisational and commercial considerations employed to achieve the project’s goals within the constraints of the user, business, and supplier.

dependency

A relationship wherein the completion or functionality of one task or product relies on the completion of another within or outside the project.

DevOps

A collaborative approach blending development and operations aims to produce a unified service with minimal distinction between these spheres.

dis-benefit

A measurable negative outcome from a project, perceived as detrimental by stakeholders, diminishing organisational objectives.

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early warning indicators

Measures set to monitor critical project facets, triggering corrective actions when predefined thresholds are met.

embedding (PRINCE2)

The process of integrating the PRINCE2 methodology as a fundamental component of an organisation’s standard project management practices. See embedding PRINCE2.

end project report

A summary provided by the project manager to the project board, detailing product delivery, updating the business case, and assessing the project against its initial Project Initiation Documentation (PID).

end stage assessment

A review conducted by the project board and project manager of the end stage report to decide on the approval for the subsequent stage plan, with formal documentation of the decision to proceed.

end stage report

A document produced at the end of each management stage, providing insights into the project’s performance and status at that point.

enhance (risk response)

A response to an opportunity that involves taking action to increase the probability of occurrence and the beneficial impact if the event occurs.

event-driven control

A control mechanism activated upon the occurrence of specific events, such as the completion of a management stage or the creation of an exception report, potentially influencing the project.

exception

A scenario where a deviation is anticipated to exceed the agreed tolerances between the project manager and project board or between the project board and the business.

exception assessment

A review by the project board to evaluate and make a decision regarding an exception plan.

exception plan

A plan developed subsequent to an exception report, detailing the remaining period of a current management stage or replacing the project plan at the project level.

exception report

A documentation of the exception occurrence, its impacts, possible options, and recommendations for the project board, created by the project manager.

external dependency

A dependency where a project’s success is subject to external factors, necessitating coordination beyond the project team’s control.

external products

Products developed or supplied externally that the project requires but does not control, such as industry standards.

exploit (risk response)

A proactive strategy to maximise the likelihood and impact of positive events, reinforcing their potential benefits.

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follow-on action recommendations

Suggestions related to incomplete tasks, persistent issues and risks, or any action required for transitioning a product to its following life phase, included in the end stage or project report.

forecast

An estimate derived from historical patterns and trends, utilised to predict future events or outcomes.

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Gantt chart

A graphical tool that schedules activities against time, displaying the start and finish of tasks, often used to plan dependencies between tasks.

governance (corporate)

The ongoing process of establishing robust internal controls, ensuring directors and officers implement efficient management systems to protect assets and the organisation’s reputation.

governance (project)

The facets of corporate governance tailored specifically to project activities, ensuring alignment with organisational goals and sustainable, efficient delivery.

governing

The act of maintaining a robust system within an organisation to assure the establishment of efficient management systems, preserving the organisation’s assets and reputation.

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handover

The transfer of the completed product set, known as a release, to the designated user or users. Can occur multiple times throughout the project lifecycle, culminating in the final handover during closure.

highlight report

A periodic status report from the project manager to the project board detailing the progress of the management stage.

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impact (of risk)

The potential consequence or anticipation of an outcome resulting from the occurrence of a threat or opportunity.

initiation stage

A phase commencing with the project board’s authorisation to initiate, concluding with authorisation to proceed with the project or a decision not to continue. It includes detailed planning and infrastructure establishment.

Internal dependency

A scenario where one project element or task is reliant upon the completion of another within the same project, managed within the team.

issue

An unplanned, relevant event that has occurred and requires management attention.

issue register

A record of all captured issues that are formally managed, regularly monitored by the project manager.

issue report

A document detailing the description, impact analysis, and recommendations for a request for change or problem that necessitates formal handling.

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leadership

The act of steering and motivating individuals to achieve project objectives through collaborative actions and relational management, emphasising feedback and alignment to shared methodologies.

lesson

A learned knowledge piece intended to improve future project executions, derived from positive or negative project experiences.

lessons log

A record of observations pertinent to the current project or future projects that may prove beneficial.

lessons report

A document recording insights gained during a project that could advantageously apply to subsequent projects, designed to prompt action to integrate positive lessons and avert negative repetitions.

log

An informal repository managed by the project manager for various pieces of information, not subject to formal agreement on format or content by the project board.

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manage by exception

A management method where deviations from a plan exceeding established tolerances are escalated for management decision-making, such as spending surpassing the budget by a predefined percentage.

management

The coordination of task execution in line with agreed operating methods, encouraging co-creation of these methods with project team members for their adoption and adherence.

management approaches

The designated procedures, techniques, and standards for various management aspects, including benefits and change management, communication, data and digital management, issues, quality, risk, and sustainability management.

management product

Documentation required for the administration of the project and upholding quality, such as reports or plans, consistent across projects regardless of type and modifiable for specific project needs. See PRINCE2 management products.

management stage

A controlled portion of a project overseen by the project manager on the project board’s behalf, concluding with a review to decide on project continuation based on performance and plans.

maturity

A measurement denoting the sophistication and effectiveness of processes or organisations, with the most mature being those aligned with business aims and supported by continual improvement frameworks.

maturity model

A tool used to assess an organisation’s capability in a certain skill area. See Portfolio, Programme, and Project Management Maturity Model.

milestone

A significant event within the project schedule, such as completing key work packages or achieving a development step.

minimum viable product

In agile development, a product with just the necessary features to garner user feedback and guide future enhancements, focused on maximising learning in minimal time.

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off-specification

An unmet requirement—either a product that has not been delivered or one that does not meet its specified criteria. It is a type of issue.

operational and maintenance acceptance

Official approval by those responsible for the product’s operational support post-handover into the active environment.

organisational ecosystem

The internal components of an organisation, like staff and stakeholders, and external relations with customers, suppliers, and others that shape its operations.

outcome

The change impact resulting from project activities, often modifying real-world behaviors and circumstances, and sought after when initiating changes.

outline business case

A document stating the necessity of the project and the preferred business solution.

output

A specialist product delivered for use by the customer. Note that management products are created for project management purposes, not as outputs, and can be tangible or intangible.

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performance target

The project’s objectives concerning time, cost, quality, scope, benefits, risk, and sustainability.

plan

A detailed proposal for action outlining the objectives, schedule, methodologies, and responsibilities. PRINCE2 identifies several types of plans, including project, stage, team, and exception plans.

planning horizon

The period within which planning can be accurately carried out with available information.

portfolio

The entirety of investments an organisation commits to for achieving strategic objectives, encompassing the changes required by these investments.

practice

A facet of project management needing continuous focus and bespoke measures to ensure effective PRINCE2 process application. See PRINCE2 practices.

premature closure

Termination of a project before its scheduled end, guaranteeing that any value generated is not lost, and emphasising the need for communication with the organisation or customer regarding the project’s closure.

prerequisites (plan)

Essential elements that must be in place for a plan to succeed and should remain so throughout its execution.

PRINCE2 principles

Key requirements determining whether a project is truly utilising PRINCE2 methodologies and ensuring their appropriate application and adaptation to project circumstances. See PRINCE2 principles.

PRINCE2 project

A project that employs the PRINCE2 method throughout its execution.

probability

The assessed likelihood of a particular risk event occurring, including the consideration of how often it may happen.

problem

An immediate negative issue requiring resolution.</dd

procedure

An established series of actions for a specific project practice, like a risk management procedure.

process

A structured set of activities aimed at accomplishing a particular goal, which systematically transforms inputs into defined outputs.

producer (in quality context)

The entity, either an individual or a collective, tasked with developing a given product to its specified standards.

product

Any item, tangible or intangible, that can be predefined, created, and assessed. PRINCE2 categorises products as either management or specialist products.

product backlog

An ordered collection of new features awaiting development in a product, often described through user stories that articulate the user’s need and rationale.

product breakdown structure

A hierarchical outline of all products a plan aims to deliver, breaking down larger products into smaller components.

product description

A detailed specification of a product’s characteristics, including its purpose, components, source, and quality criteria, established during the project’s initiation or at the start of a stage for subsequent products.

product flow diagram

A diagram illustrating the sequence and dependencies of products outlined in a product breakdown structure.

product register

A section of the project records that lists all products the project is expected to deliver and tracks their acceptance status.

product-based planning

A planning approach focussed on the production and delivery of required outputs, considering the necessary inputs, quality expectations, and product interdependencies.

programme

An organisational structure designed to oversee a set of related projects and activities to deliver strategic outcomes and benefits over several years.

progress

An evaluation of the extent to which planned objectives are being or have been achieved within a management plan.

project

A temporary organisation established with a clear mandate to deliver business products, based on an agreed business case and within defined parameters. See project.

project approach

A description of the means by which the project’s work will be undertaken, such as building from scratch or buying an existing product.

project assurance

An oversight function exercisable by the project board to verify that a project is managed correctly, focusing on business, user, and supplier assurance roles.

project baseline

The latest version of project documentation and deliverables that are under change control.

project board

The entity with accountability to the business for the project’s success, authorised to give directions within the framework established by the business.

project brief

Initial documentation outlining the project’s goals, costs, timeframes, performance requirements, and constraints, used as a foundation for creating the PID.

project closure notification

A formal notice from the project board indicating that the project has been completed and resources can be released, with a specified date for cessation of project-related expenses.

project definition

An explanation of a project’s goals and the desired outcomes, including context, objectives, scope, constraints, user and stakeholder identification, and external interfaces.

project ecosystem

The internal and external entities involved in or affected by a project, including users, suppliers, and the overall business environment.

project executive

The individual responsible for ensuring that the project meets its objectives and delivers the anticipated benefits, accountable for overall project direction and management.

project initiation documentation (PID)

The set of documents that collectively define the necessary information to launch a project effectively and communicate it to all stakeholders.

project initiation notification

Advice issued by the project board to inform stakeholders of the initiation of a project and to secure sufficient logistical support for the initiation stage.

project lifecycle

The duration from the initial conception of a project to the formal acceptance of its product.

project management

The process of planning, organising, overseeing, and controlling all aspects of a project, and motivating all involved to achieve project objectives within defined constraints.

project management team

The composite of roles including the project board, project manager, team manager, project assurance, and project support responsible for managing a project.

project management team structure

A visual representation of the project management team and its members, illustrating reporting lines and division of responsibilities. See project management roles.

project manager

The individual endowed with the responsibility of managing the project on a day-to-day basis within the parameters laid down by the project board.

project mandate

An external directive produced by the commissioning authority to trigger the start of a project.

project office

A dedicated facility established to support the delivery of a specific project, assuming responsibilities categorised under the project support function. See project management office.

project plan

An overarching plan detailing the major deliverables, their timelines, and resource requirements for the project, revised to reflect actual progress.

project product

The final output that the project is commissioned to produce and deliver for acceptance.

project product description

A unique specification that defines the scope, requirements, and user quality expectations of the project product, used to set acceptance criteria.

project support

A role that provides organisational assistance within the project management team, offering administrative services and data collection.

proximity (of risk)

Concerning a risk, this refers to the potential timeframe of its occurrence, influencing the severity of its impact.

project team

All individuals contributing time and expertise towards the achievement of the project’s objectives.

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quality

The degree to which a set of inherent characteristics fulfils requirements, including those for products, services, processes, people, organisations, systems, or resources.

quality assurance

The function carried out by an independent entity to confirm that the quality commitments for a product or service will be fulfilled upon quality control testing.

quality control

Monitoring project outputs to guarantee they meet established standards and identifying methods to correct any substandard performance.

quality management approach

The approach that delineates the quality techniques and standards to be utilised, and the responsibilities for adherence and achievement of the defined quality levels throughout the project.

quality planning

The process of defining quality requirements for the project outcomes and the creation of specific product descriptions and quality management strategies.

quality register

A log that encapsulates the summary information of all planned and executed quality activities, utilised by the project manager and project assurance for progress review.

quality review

An evaluation process to verify whether a product is complete, compliant with standards, and meets its defined quality criteria, undertaken at various stages during product development.

quality specifications

The defined criteria and standards a product needs to satisfy, along with the measures utilised to evaluate the final product against these specifications.

quality tolerance

The permissible limits for variation from established quality criteria, documented for each product and the overall project product.

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records

Documentation that dynamically reflects project progression, collectively referred to as the project log and comprising various logs like the daily log, issue register, lessons log, and others.

reduce (risk response)

A proactive strategy to decrease either the likelihood or the impact of a risk event occurring.

reports

Documents that present a status update on specific aspects of the project’s progress and health.

request for change

A formal suggestion to make alterations to a previously established baseline, categorised as an issue.

requirement

A stipulated necessity or expectation that is articulated and approved within a management product.

residual risk

The level of risk that persists after planned risk responses have been executed.

resource

The total goods, services, equipment, materials, facilities, and financing required to execute a plan successfully.

responsible

The designated person(s) with the authority and expectation to carry out a given task. Responsibility is assignable.

reviewer (in quality context)

An individual or body independent of the producer assigned to assess if a product adheres to its predefined requirements.

risk

An uncertain event or set of events which, should they occur, will have an effect on the achievement of objectives. Risks are quantifiable by the probability of occurrence and the scale of their potential impact.

risk action owner

The individual tasked with executing actions to mitigate a risk and responsible for keeping the risk owner informed on the status. Also referred to as risk actionee.

risk appetite

The degree of risk that an organisation is prepared to accept in pursuit of its objectives, defining the scope of risks it is willing to take.

risk budget

A defined amount of funds allocated for managing the responses to the project’s identified risks.

risk evaluation

The process of comprehending the combined effect of identified threats and opportunities on a project.

risk exposure

The degree of risk that an organisation currently faces.

risk impact

The estimated effect on the project’s objectives should a particular risk transpire.

risk management

A systematic approach to risk identification and assessment, followed by the planning and implementation of risk responses, and the communication of risk-related activities to stakeholders.

risk management approach

An approach describing the objectives of risk management, the process to follow, roles and responsibilities, risk tolerances, the timing of interventions, tools and techniques to be used, and the reporting requirements.

risk owner

The person tasked with overseeing all aspects of a particular risk, including the application of risk responses.

risk probability

The likelihood or chance of a risk event taking place.

risk profile

A synopsis of the various types of risks that an organisation encounters, along with its vulnerability and exposure levels.

risk register

A log that lists identified risks related to the project, documenting their status and history.

risk response

Actions executed to adjust a situation to a level where risk exposure becomes tolerable for the organisation.

risk tolerance

The threshold levels of risk exposure that, if exceeded, necessitate management action, such as reporting to senior management.

risk velocity

The rate at which a risk can potentially impact objectives upon occurrence.

role

The specific function assigned to an individual or group within a project; distinct from a person’s job title outside the project context.

role descriptions

A detailed account of a role within the project management team, outlining its respective responsibilities.

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schedule

A layout that depicts a plan through a sequence of tasks and resource allocations, often visually represented in PRINCE2 plans and logs for daily actions.

scope

The entirety of a plan’s products and their detailed requirements, depicted by the product breakdown structure and accompanying product descriptions.

scope tolerance

The allowable variation in a plan’s scope before a deviation necessitates escalation to higher management levels.

senior supplier

A project board role providing knowledge regarding the main disciplines involved in producing project outputs, representing the suppliers and contributing supplier resources.

senior user

A role on the project board tasked with ensuring user requirements are accurately defined and the solution meets those needs satisfactorily.

share (risk response)

A risk response approach utilising a win/lose formula for both parties involved, whether the actual costs fall below or exceed the planned costs.

specialist product

A product that is the focal point of a plan, specific to the project (e.g., an advertising campaign, a ticketing system) and also known as a deliverable.

sponsor

The main proponent for a program or project. In PRINCE2, the sponsor is usually the project executive or the person appointing the executive.

sprint

A fixed-duration period, generally spanning 2-4 weeks, dedicated to developing predetermined features from a product backlog.

stage

See management stage.

stage plan

A comprehensive plan that provides the basis for project management control within a management stage.

stakeholder

A person, group, or organisation that can be positively or negatively impacted by, or perceive itself to be affected by, a project or initiative.

start-up

Pre-project activities by the project executive and manager to prepare the outline business case, project brief, and initiation stage plan.

supplier

The party responsible for producing the project’s specialist products, usually an external vendor or internal department.

sustainability management approach

The approach that outlines actions, reviews, and controls for ensuring the project’s sustainability targets are met.

sustainability tolerance

The permissible deviation in the project’s sustainability targets that triggers escalation to the next level of management if exceeded. Sustainability tolerance is documented within the business case. See tolerance.

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tailoring

The act of customising a method or process to suit the specific context in which it will be applied.

team manager

An individual responsible for producing products as directed by the project manager, reporting to the latter. In the absence of a team manager, the project manager assumes these duties.

team plan

An optional detailed strategy used for the control of team-level management during the completion of work packages.

threat

An uncertain event that could have a detrimental impact on the project’s objectives or benefits.

timebox

A fixed period of time dedicated to achieving a specific set of goals, with prioritised work within this duration. Timeboxes are scalable from a few days to encompassing multiple lower-level timeboxes within a stage.

time-driven control

A management control based on predetermined scheduling, facilitating oversight by higher-level authorities to monitor progress.

time tolerance

The permissible variance in a plan’s timeline before it necessitates escalation to a higher level of management. See tolerance.

tolerance

The allowable range of deviation from a plan’s targets for parameters such as time, cost, quality, scope, benefits, and risk before escalation is needed.

transfer (risk response)

A risk management strategy that involves passing some or all of the financial impact of a threat to a third party, for example, through insurance or contract stipulations.

transformation

A significant alteration in the way an organisation functions, either partially or wholly.

trigger

An occurrence or decision that prompts the commencement of a PRINCE2 process.

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user

Any individual or collective that utilises one or multiple products delivered by the project.

user acceptance

Formal consent provided by the users who will operate the product once it is transitioned to the active environment.

user story

A method of capturing a requirement in a format that specifies the user, the need, and the reason.

user’s quality expectations

A statement describing the anticipated quality of the final project product, as recorded in the project product description.

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work breakdown structure

A hierarchical decomposition of all work required during a project, which serves as the foundation between the product breakdown structure and the individual work packages.

work package

A set of tasks assigned to a team manager or team, involving the delivery of one or more products, and defined by parameters set by the project manager.

work package description

Essential information for the production of one or more products, detailing the work, product requirements, constraints, and agreements between the project manager and the entity executing the work package.

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