The PRINCE2 Project Management Method is the advanced version of the PRINCE method designed by the CCTA (Central Computer and Telecommunications Agency). The PRINCE Method was further developed with feedback from users and the new version was released as PRINCE2 in 1996.
PRINCE2 was tried and tested for a variety of project environment. Although the name originates from the idea of PRojects IN Controled Environments, experience from various fields is used in creating the method. This makes PRINCE2 strictly related to project management and makes it easily adaptable to different project fields.
With PRINCE2 user experience is analyzed and stripped down to a set of components and management processes. All these components and processes form the minimum requirements to properly run a project. Processes define the management activity to be carried out during the project lifetime and components provide the base for good management.
The Business Case
The PRINCE2 approach uses a Business Case to provide a project with a clear direction. The Business Case justifies the resources and capital to complete the project. The fidelity of the business case is checked throughout the project at key decision points.
Management by Exception
Another major strength of PRINCE2 is the fact that it uses Management by Exception as the management style. In this style, Managers only need to intervene when the person fail to meet the standards set for them. For example, if the project deviates from the project plan and budget, then management get involve.