PRINCE2 Glossary

A

Acceptance

Formal confirmation that a product or project result meets agreed requirements and can be received by its intended user or customer.

Acceptance Criteria

The measurable conditions a project product must satisfy before it can be accepted.

Accountability

Being answerable for a decision, activity or result, even where work has been delegated to others.

Activity

A piece of work performed as part of creating a product or managing the project.

Agile

A family of approaches that emphasise collaboration, iterative delivery, feedback and adaptation to change.

Approach

A documented way of handling a particular aspect of project management, such as quality, communication, change or sustainability.

Approval

Formal authorisation to proceed with a decision, product, stage or project.

Assumption

Something treated as true for planning purposes even though it has not yet been fully confirmed.

Assurance

Independent or delegated checking that the project is being conducted correctly and remains aligned with stakeholder interests.

Authority

The formally granted power to make decisions, approve work or commit resources within defined limits.

B

Baseline

An approved version of a management product or plan that provides a reference point for controlling future change.

Benefit

A measurable improvement resulting from an outcome and perceived as advantageous by one or more stakeholders.

Benefits Management Approach

The description of how and when project benefits will be measured, reviewed and confirmed.

Business Case

The justification for undertaking and continuing a project, based on expected benefits, costs, risks and other relevant considerations.

Business Case Practice

The PRINCE2 practice concerned with establishing and maintaining a sound justification for the project.

Business Justification

The rationale for investing in a project and continuing to invest while it remains worthwhile.

Business Layer

The organisational level that commissions projects, sets strategic direction and is ultimately interested in the value they create.

Business Objective

A desired organisational result that a project may help to achieve.

Business Opportunity

A circumstance in which change may create value or help an organisation achieve strategic goals.

Business Risk

Uncertainty that could affect the organisation's wider objectives or the value expected from the project.

C

Change

An alteration to an approved product, baseline, requirement or project environment.

Change Budget

A sum of money reserved for authorised changes to products or scope.

Change Control

The process of assessing, approving, rejecting and tracking proposed changes to baselined project products.

Change Management

The activities that help people and organisations adopt new ways of working created by a project.

Change Management Approach

The description of how organisational change and adoption will be prepared for and supported.

Checkpoint Report

A regular report from a team manager to the project manager summarising the status of a work package.

Closing a Project

The PRINCE2 process used to confirm acceptance, evaluate performance and bring a project to a controlled end.

Closure Recommendation

A recommendation to the project board that the project is ready to close.

Co-creation

Working collaboratively with stakeholders to shape products, solutions or ways of working rather than designing them in isolation.

Collaboration

People working together across roles and organisational boundaries to achieve shared project objectives.

Commercial Management Approach

The description of how commercial relationships, procurement and supplier arrangements will be managed.

Communication

The exchange of information needed to support decisions, coordination, engagement and successful delivery.

Communication Management Approach

The description of how project information will be created, shared, stored and communicated to stakeholders.

Constraint

A restriction or limitation within which the project must operate, such as time, cost, regulation or technology.

Controlling a Stage

The PRINCE2 process through which the project manager authorises work, monitors progress, manages issues and reports during a management stage.

Corrective Action

An action taken to address a deviation while keeping the work within agreed tolerances.

Cost

The financial resources required to deliver or operate the project's products and activities.

Cost Tolerance

The permitted variation above or below an approved cost target before escalation is required.

Culture

The shared behaviours, values and assumptions that influence how people work together on and around a project.

Customer

The person or organisation commissioning the project and expecting value from its outputs and outcomes.

D

Daily Log

An informal record used by the project manager for information, reminders and issues that do not yet require formal management.

Data Management Approach

The description of how project data will be created, maintained, secured, shared and governed.

Decision

A choice made by an authorised role after considering available information and project objectives.

Delegation

Assigning authority for work or decisions while retaining appropriate accountability.

Deliverable

A tangible or intangible result produced by project work, often described in PRINCE2 as a product.

Delivery Approach

The way project products will be developed, such as sequential, iterative, incremental, agile or a hybrid combination.

Dependency

A relationship in which one activity, product or decision relies on another.

Dis-benefit

A measurable negative consequence of an outcome that is accepted as part of pursuing the project's overall value.

Directing a Project

The PRINCE2 process through which the project board makes key decisions and exercises overall control without managing day-to-day work.

Document

Recorded project information used to communicate, control or provide evidence of decisions and work.

E

End Project Report

A report prepared at closure summarising project performance, achievements, outstanding matters and lessons.

End Stage Assessment

The project board's review of a completed management stage and the plans for the next stage before authorising continuation.

End Stage Report

A report from the project manager summarising the performance and status of the current management stage.

Ensure Continued Business Justification

The PRINCE2 principle requiring a project to remain desirable, viable and worthwhile throughout its life.

Escalation

Raising a forecast or issue to a higher level of authority because it cannot be resolved within delegated limits.

Estimate

An informed forecast of the time, effort, cost or resources required for future work.

Exception

A forecast that an agreed tolerance is likely to be exceeded, requiring escalation to the next management level.

Exception Assessment

A project board review of an exception situation and any resulting exception plan.

Exception Plan

A plan produced to replace the part of an approved plan that can no longer be achieved within tolerance.

Executive

The project board role ultimately accountable for the project, representing the business interest and ensuring value for money.

External Dependency

A dependency on something outside the direct control of the project team.

External Product

A product required by the project but created or supplied outside the project's own work.

F

Fallback

An alternative action prepared for use if a particular risk materialises or a preferred option fails.

Feasibility

The degree to which a proposed project or solution is practical and achievable.

Focus on Products

The PRINCE2 principle that planning and control should centre on defining and delivering products that meet agreed quality expectations.

Forecast

A prediction of future project performance based on current information and trends.

Foundation

The entry certification level for PRINCE2 Project Management, assessing understanding of the method's terminology, principles, practices and processes.

Funding

The financial resources authorised to pay for the project and its activities.

G

Governance

The framework of authority, accountability, decision-making and oversight used to direct and control a project.

Governance Framework

The structure of roles, policies, controls and decision rights within which a project operates.

Governance Requirement

An organisational, contractual, legal or regulatory expectation that influences how the project must be controlled.

Goal

A desired high-level result towards which project objectives and activities contribute.

Group Decision

A decision reached through consultation or agreement among several project stakeholders or governance roles.

H

Handover

The controlled transfer of a completed product to the people responsible for using, operating or maintaining it.

Highlight Report

A regular report from the project manager to the project board summarising progress, forecasts, issues and overall stage status.

Hybrid Delivery

A delivery approach that combines predictive and agile or iterative techniques according to the needs of the project.

Human Factor

The influence of people, behaviour, capability, communication and relationships on project performance.

Hypothesis

An assumption or proposed explanation that can be tested through project research, prototypes or iterative delivery.

I

Impact

The effect that an issue, risk, change or project outcome could have on objectives, products or stakeholders.

Initiating a Project

The PRINCE2 process that establishes solid foundations for the project before significant resources are committed.

Initiation Stage

The management stage in which the project's detailed foundations, controls and management approaches are developed.

Investment Appraisal

Analysis of the costs, benefits, risks and financial implications of investing in a project.

Issue

An event or situation requiring management consideration because it could affect project objectives or approved baselines.

Issue Register

The record used to capture and track formally managed project issues.

Issue Report

A detailed record created when an issue requires more information and structured analysis than the issue register alone provides.

Issues Practice

The PRINCE2 practice concerned with identifying, assessing and controlling changes, problems and concerns that arise during the project.

Iterative Delivery

An approach where a product is developed through repeated cycles of refinement and feedback.

Information

Processed or organised data that supports understanding, communication and decision-making.

Information Need

The specific information a stakeholder or management role requires to perform responsibilities or make a decision.

Internal Dependency

A dependency between activities or products within the same project or programme.

J

Justification

The reason why a project or proposed action is worthwhile when benefits, costs, risks and strategic fit are considered.

Joint Decision

A decision made collaboratively by two or more roles where authority or expertise is shared.

Journey

An informal way of describing the progression of a project from idea and initiation through delivery, transition and closure.

K

Kanban

An agile method for visualising workflow, limiting work in progress and improving the flow of work.

Key Decision

A significant project choice that materially affects scope, value, cost, risk, timing or direction.

Key Performance Indicator (KPI)

A measurable indicator used to assess performance against an important objective or expected result.

Key Stakeholder

A stakeholder whose influence, interest or impact makes active engagement particularly important to project success.

Knowledge

Understanding gained from information, experience and lessons that can improve project decisions and delivery.

Knowledge Transfer

The deliberate sharing of skills, information and experience between project participants, users or operational teams.

L

Leadership

The ability to create direction, influence people and build commitment towards project objectives.

Learn from Experience

The PRINCE2 principle requiring projects to seek, record and apply lessons from previous and current experience.

Lesson

Knowledge gained from experience that could improve current or future project work.

Lessons Log

A record used throughout the project to capture useful lessons and observations as they arise.

Lessons Report

A formal summary of lessons that can be passed to the organisation or future projects.

Lifecycle

The sequence of phases or stages through which a project, product or benefit progresses.

Limit

A boundary on delegated authority or performance, such as an agreed tolerance.

Log

A project record that is updated over time, such as the daily log, issue register or risk register.

Long-Term Benefit

A benefit expected to emerge or continue after the project itself has closed.

M

Management

The coordination of people, resources, plans and controls to achieve project objectives.

Management Approach

A documented description of how a particular area of the project will be managed.

Management by Exception

A PRINCE2 principle that delegates authority within agreed tolerances and escalates only when those limits are forecast to be exceeded.

Management by Stages

A PRINCE2 principle that divides a project into manageable sections, with the project board authorising one management stage at a time.

Management Level

A layer of project authority, such as corporate or business management, project board, project manager or team manager.

Management Product

A PRINCE2 document or record used to manage and control the project rather than form part of the final specialist output.

Management Stage

A section of the project that the project manager manages on behalf of the project board and which ends with a formal review or decision point.

Managing Product Delivery

The PRINCE2 process governing the relationship between the project manager and team managers as work packages are accepted, delivered and reported.

Managing a Stage Boundary

The PRINCE2 process used to review the current stage, prepare the next stage plan and provide the project board with information for its continuation decision.

Mandate

The trigger or initial instruction that provides enough information to begin Starting up a Project.

Milestone

A significant point or event in a plan used to mark progress or a key achievement.

Minimum Viable Product (MVP)

A product with enough capability to deliver learning or value while allowing further development based on feedback.

Monitoring

Regularly observing actual progress and performance so deviations can be identified and managed.

MoSCoW Prioritisation

An agile technique that classifies requirements as Must have, Should have, Could have or Won't have for the relevant time period.

N

Need

A problem, opportunity or requirement that creates a reason for organisational change or project investment.

Next Stage Plan

The detailed plan for the management stage proposed to follow the current one.

Nonconformity

A situation where a product, process or result fails to meet an agreed requirement or quality criterion.

Notification

A communication informing stakeholders that an event, decision, issue or required action has occurred.

Objective

A specific result the project or a project activity is intended to achieve.

O

Objective Testing

An examination format using structured question types to assess whether a candidate can apply the method to a scenario.

Opportunity

An uncertain event that could have a positive effect on project objectives if it occurs.

Organising Practice

The PRINCE2 practice concerned with establishing an effective project organisation, roles, responsibilities and relationships.

Organisational Ecosystem

The wider network of people, teams, suppliers, culture, systems and structures that influences and is influenced by the project.

Organisational Change

The transition in behaviours, processes, roles, technology or ways of working needed to realise project outcomes and benefits.

Outcome

The result of using project outputs, often representing a change in capability, behaviour or performance.

Output

A specialist product created and delivered by a project.

Owner

A person assigned accountability for a risk, issue, benefit, action or product.

P

People

The individuals and groups who work on, influence, use or are affected by a project. Version 7 gives explicit attention to this human element.

Performance Target

An agreed expectation for project performance such as time, cost, scope, quality, benefits, risk or sustainability.

Plan

A proposal describing what will be done, by whom, when and with what resources to achieve defined objectives.

Planning

The activity of determining products, activities, resources, sequence, timescales and controls needed to achieve objectives.

Plans Practice

The PRINCE2 practice concerned with defining how, when and by whom products will be delivered.

Planning Horizon

The period into the future for which it is sensible and useful to plan at a particular level of detail.

Portfolio

The total collection of investments, programmes and projects selected and managed to support strategic objectives.

Practice

One of the seven recurring areas of PRINCE2 project management that should be addressed throughout the project.

Prerequisite

A condition or qualification that must be satisfied before an activity, decision or certification can proceed.

Principle

One of the seven guiding obligations that determine whether a project is genuinely being managed using PRINCE2.

PRINCE2

A structured and tailorable project management method owned by PeopleCert and used internationally across many project types.

PRINCE2 Project Management (Version 7)

The current version of the PRINCE2 Project Management method, with strengthened attention to people, sustainability, digital and data alongside the established principles, practices and processes.

PRINCE2 Agile

A related PeopleCert method that combines PRINCE2 governance with agile behaviours, frameworks and delivery techniques.

PRINCE2 Foundation

The certification level that confirms understanding of PRINCE2 terminology and the structure of the method.

PRINCE2 Practitioner

The certification level that assesses the ability to apply and tailor PRINCE2 in realistic project situations.

Process

One of the seven PRINCE2 sequences of activities used to manage the project from preparation through closure.

Product

An input or output, tangible or intangible, that can be described in advance, created and tested against defined quality criteria.

Product Breakdown Structure

A hierarchical representation showing the products that must be created to deliver a plan.

Product Description

A description of a product's purpose, composition, quality expectations, quality criteria and responsibilities.

Product Flow Diagram

A diagram showing the sequence and dependencies in which products are developed or made available.

Product Focus

An emphasis on clearly defining what must be delivered before deciding the activities required to create it.

Product Register

A record used to track products, their status and relevant quality information.

Product-Based Planning

A planning technique that starts by identifying and describing required products before deriving the activities needed to create them.

Progress

The comparison of actual performance against approved plans and targets.

Progress Practice

The PRINCE2 practice concerned with monitoring actual achievement, forecasting future performance and escalating exceptions.

Programme

A temporary organisational structure created to coordinate related projects and other work to achieve outcomes and benefits.

Project

A temporary organisation created to deliver one or more business products according to an agreed business case.

Project Assurance

The project board responsibility for independently checking that business, user and supplier interests are being protected.

Project Board

The directing body accountable for project success, normally representing business, user and supplier interests.

Project Brief

An early management product that provides a firm basis for deciding whether project initiation should be authorised.

Project Executive

The individual who chairs the project board and is ultimately accountable for ensuring the project remains worthwhile.

Project Initiation Documentation (PID)

The set of information defining how the project will be managed, controlled and delivered and forming a baseline for project governance.

Project Log

A collection of dynamic project records maintained throughout delivery, such as registers and logs.

Project Manager

The person given authority and responsibility for day-to-day management of the project within limits set by the project board.

Project Plan

The high-level plan covering the entire project and providing a basis for project board monitoring and control.

Project Product Description

The description of the project's overall final product, including purpose, composition, quality expectations and acceptance criteria.

Project Support

Administrative, planning, configuration, reporting or specialist support provided to the project manager and team.

Project Team

The people collectively responsible for managing and delivering the project and its products.

Q

Quality

The degree to which a product's characteristics meet stated requirements and expectations.

Quality Assurance

Independent checking that suitable quality methods, standards and processes are being applied.

Quality Control

The activities used to inspect, test or review products and determine whether they satisfy defined criteria.

Quality Criteria

The measurable characteristics against which a product is assessed.

Quality Management Approach

The description of standards, responsibilities, methods and controls that will be used to manage quality.

Quality Practice

The PRINCE2 practice concerned with specifying, developing and verifying products that meet requirements.

Quality Register

The record of planned and completed quality activities for project products.

Quality Review

A structured assessment of a product by appropriate reviewers against agreed criteria.

Quality Specification

The documented expectations and criteria defining what acceptable quality means for a product.

R

Recommendation

Advice presented to an authorised decision-maker after analysis of information or options.

Register

A structured project record used to track a category of information such as risks, issues, products or quality activities.

Requirement

A documented need or expectation that a project product should satisfy.

Resource

People, equipment, facilities, funds, information or other assets needed to perform project work.

Responsibility

A duty assigned to a person or role for completing work or performing a project-management function.

Review

A structured examination of progress, products, decisions or project viability.

Risk

An uncertain event or set of events that, if it occurs, will affect achievement of objectives.

Risk Actionee

The person assigned to carry out a specific risk response action on behalf of the risk owner.

Risk Appetite

The amount and type of risk an organisation is willing to pursue or retain in pursuit of objectives.

Risk Budget

A sum of money reserved for implementing agreed responses to project risks.

Risk Exposure

An assessment of the significance of a risk based on factors such as probability and impact.

Risk Management Approach

The description of how risks will be identified, assessed, controlled, communicated and reviewed.

Risk Owner

The person accountable for monitoring and managing a particular risk.

Risk Practice

The PRINCE2 practice concerned with identifying and controlling uncertainty that could affect objectives.

Risk Register

The record used to capture and track identified project risks and their responses.

Risk Response

An action or strategy chosen to alter the probability, impact or consequences of a risk.

Role

A defined set of responsibilities and authorities assigned to one person or shared among people.

Roles, Responsibilities and Relationships

The PRINCE2 principle requiring a clear organisational structure in which people understand what they are accountable for and how they work together.

S

Schedule

A time-based representation of activities, dependencies, milestones and planned completion dates.

Scope

The total set of products, work and boundaries included within the project.

Scope Tolerance

The permitted variation in what the project is expected to deliver before escalation is required.

Senior Supplier

The project board role representing those who design, build or provide the specialist resources needed by the project.

Senior User

The project board role representing the people who will use the project's products and expect benefits from them.

Specialist Product

A product created as part of the project's technical or business delivery rather than for project management purposes.

Sponsor

A senior individual who champions and supports a project; in PRINCE2 many sponsorship responsibilities align closely with the Executive role.

Stage

A section of a project used for management control or technical delivery.

Stage Boundary

The point at which one management stage ends and the project board reviews performance and decides whether to authorise the next stage.

Stage Plan

A detailed plan used by the project manager to manage and control a particular management stage.

Stage Tolerance

The delegated limits within which the project manager may manage a stage without escalating to the project board.

Stakeholder

Any individual, group or organisation that can affect, be affected by or perceive itself to be affected by the project.

Stakeholder Engagement

The deliberate process of understanding stakeholders and building appropriate communication, participation and support.

Starting up a Project

The pre-project PRINCE2 process that checks whether the project idea is viable enough to justify detailed initiation.

Status

The current condition of a product, activity, issue, risk, stage or project at a particular point in time.

Supplier

The person or organisation providing specialist skills, products or services needed to create project outputs.

Sustainability

Consideration of environmental, social and economic effects over time when making project decisions and assessing performance.

Sustainability Management Approach

The description of how sustainability objectives, measures and responsibilities will be managed during the project.

Sustainability Tolerance

The permitted variation from agreed sustainability targets before escalation is needed.

T

Tailor to Suit the Project

The PRINCE2 principle requiring the method's application to be adapted to the project's context, size, complexity, importance and delivery environment.

Tailoring

The deliberate adaptation of PRINCE2 controls, roles, management products and techniques to suit a particular project.

Team

A group of people working together to deliver one or more products or project-management responsibilities.

Team Manager

The person responsible for managing creation of products within an agreed work package and reporting to the project manager.

Team Plan

An optional detailed plan used by a team manager to organise delivery of a work package.

Technical Stage

A section of specialist work defined by the technical or delivery lifecycle rather than by project-management control needs.

Theme

The term used in earlier PRINCE2 editions for recurring project-management areas that Version 7 now calls practices.

Threat

An uncertain event that could have a negative effect on project objectives.

Time Tolerance

The permitted variation around a planned completion date before escalation is required.

Tolerance

The permitted deviation from a target without requiring escalation to the next management level.

Transition

The movement from the current operating state to the new state enabled by project outputs.

Trigger

An event or condition that causes a process, activity, decision or risk response to begin.

U

Uncertainty

A lack of complete knowledge about events or conditions that may affect project objectives.

Update

A change made to a dynamic project record, forecast, plan or report so it reflects current information.

User

A person or group that will use or operate the project's products and help realise the intended benefits.

User Acceptance

Confirmation from appropriate users that a product is suitable for its intended use.

User Requirement

A need or expectation expressed from the perspective of people who will use the product or service.

V

Validation

Confirmation that a product or solution satisfies its intended use and stakeholder needs.

Value

The overall benefit or usefulness created when outcomes are considered in relation to investment, risk and stakeholder needs.

Value for Money

The extent to which the project's expected or realised benefits justify the resources and costs invested.

Variance

The difference between planned and actual or forecast performance.

Version 7

The current version designation for PRINCE2 Project Management certification and guidance.

Viability

The degree to which a project remains practical, affordable and capable of achieving the intended outcomes.

Vision

A clear description of a desired future state that helps align people around the purpose of change.

W

Work

The activities undertaken to create project products and perform project-management responsibilities.

Work Breakdown Structure

A hierarchical decomposition of project work into smaller manageable components, commonly used outside PRINCE2 and compatible with its planning approach.

Work Package

The agreement between a project manager and team manager or team describing products to be created, constraints, reporting and authorised work.

Work in Progress

Work that has started but is not yet complete, an important flow measure in agile delivery.

Working Relationship

The practical interaction between project roles, teams and stakeholders needed for effective collaboration.

Workshop

A facilitated collaborative session used to develop plans, products, decisions, requirements or shared understanding.

X

XP (Extreme Programming)

An agile software-development approach emphasising short feedback cycles, technical discipline, frequent releases and close collaboration.

X-Factor Risk

An informal term sometimes used for an unusual or hard-to-predict factor that could materially affect a project and should be considered during risk analysis.

Y

YAGNI

“You Aren't Gonna Need It”, an agile development principle that discourages building functionality before there is a genuine requirement for it.

Year-End Constraint

A financial or organisational deadline that can influence project budgets, approvals, scheduling and resource availability.

Z

Zero-Based Estimate

An estimate developed from the work and resources currently required rather than simply adjusting a previous budget or forecast.

Zero Tolerance

A control position in which no deviation from a specified requirement is permitted, often used for mandatory safety, legal or compliance conditions.

Zone of Authority

An informal description of the area within which a project role can make decisions without further approval.