A PRINCE2® project is characterised by:

• The project has a business case that shows benefits, costs, and primary risks. The business case justifies why the project should be carried out.
  
  
• The project has a defined lifecycle, meaning it is a temporary organisation.
  
  
• The project has a defined set of products or deliverables.
  
  
• The project's processes all consist of a set of activities to produce the products or deliverables.
  
  
• The project has its own organisational structure with established roles and responsibilities to manage the project.
  
  
• The project has a defined amount of resources available to carry out the activities.

• Time
  
  
• Costs
  
  
• Quality – the products must be fit for purpose
  
  
• Scope – the project's deliverables must be defined, as well as its boundaries – that is, what lies outside the project's scope.
  
  
• Risks – the project's risks must be identified, analysed, proactively managed, monitored, and controlled throughout the project.
  
  
• Benefits – it must be clarified why the project is being carried out, even if the benefits are only realised after the project's completion.

The PRINCE2® method consists of four integrated elements:

• Principles
  
  
• Themes
  
  
• Processes
  
  
• Project Environment

PRINCE2® is based on seven principles that help the project manager to structure and manage the project.

The seven PRINCE2® principles are:

• Universal, as they apply to all projects.
  
  
• Documented and proven, as they have been used in practice for many years.
  
  
• Empowering, as they give users of the method greater confidence and ability to influence how the project is managed.

The 7 PRINCE2® Principles:

1. Continued business justification
   
   
2. Learn from experience
   
   
3. Defined roles and responsibilities
   
   
4. Manage by stages
   
   
5. Manage by exception
   
   
6. Focus on products
   
   
7. Tailor to suit the project environment

The second of the four integrated elements in PRINCE2® are the themes. There are seven themes in PRINCE2®, which are described as aspects of project management that must be addressed throughout the project.

The seven themes are:

1. Business Case
   
   
2. Organisation
   
   
3. Quality
   
   
4. Planning
   
   
5. Risk
   
   
6. Change
   
   
7. Progress

Each of the above themes is designed to address a range of key questions:

• Business Case – why?
  
  
• Organisation – who?
  
  
• Quality – what?
  
  
• Planning – how, how much, and when?
  
  
• Risk – what if?
  
  
• Change – what is the impact?
  
  
• Progress – where are we now, where are we heading, and should we continue?

The third of the integrated elements is the PRINCE2® processes. A process is a series of structured activities designed to achieve a specific goal. A process takes one or more defined inputs and transforms them into defined outputs.

PRINCE2® has seven processes:

1. Starting up a project
   
   
2. Directing a project
   
   
3. Initiating a project
   
   
4. Controlling a stage
   
   
5. Managing product delivery
   
   
6. Managing a stage boundary
   
   
7. Closing a Project