PRINCE2 Glossary: A Complete Guide to Project Management Terminology
- Michelle M
- Sep 5
- 6 min read
PRINCE2 (Projects IN Controlled Environments) is one of the most popular project management methodologies across the globe. It provides a structured approach that emphasizes governance, accountability, and quality in project delivery. Whether you are preparing for PRINCE2 certification, leading a project team, or simply looking to expand your knowledge, understanding the vocabulary is critical.
This PRINCE2 Glossary compiles over 100 key PRINCE2 terms, each explained in depth to help you grasp not just their definitions, but also their importance in practice. By mastering this language, project managers and stakeholders can collaborate more effectively, ensuring projects run smoothly and deliver the expected benefits.
1. PRINCE2
A process-driven project management methodology that provides a structured approach, built on seven principles, seven themes, and seven processes. It emphasizes control and governance.
2. Project
A temporary endeavor undertaken to deliver a product, service, or result with defined objectives, timelines, and scope.
3. Business Case
The justification for the project, explaining costs, benefits, risks, and strategic alignment. It underpins project viability.
4. Benefits
The measurable improvements or advantages delivered by the project. Benefits must be clear, tracked, and realized.
5. Benefits Review Plan
A plan detailing how and when project benefits will be measured and confirmed, often extending beyond project closure.
6. Stakeholder
Any individual, group, or organization impacted by the project or able to influence it. Stakeholder engagement is key in PRINCE2.
7. Project Board
The governance body consisting of the Executive, Senior User, and Senior Supplier. They provide direction and decision-making.
8. Executive
Represents the business interests, ensuring the project remains aligned with organizational goals.
9. Senior User
Ensures the project delivers outputs that meet user needs and realize expected benefits.
10. Senior Supplier
Represents supplier interests, ensuring resources and expertise are provided for quality delivery.
11. Project Manager
Responsible for the day-to-day management of the project, within boundaries set by the Project Board.
12. Team Manager
Manages a specific team or work package, reporting progress to the Project Manager.
13. Project Assurance
Monitors project performance independently, ensuring the project is managed correctly and aligns with business needs.
14. Project Support
Provides administrative and logistical support, including documentation and reporting.
15. Product
Any deliverable (final or intermediate) produced during the project lifecycle.
16. Product Description
Defines a product’s purpose, composition, quality criteria, and method of verification.
17. Product Breakdown Structure
A hierarchical structure decomposing project deliverables into smaller components.
18. Product Flow Diagram
Maps the sequence and dependencies of products in development.
19. Quality
The degree to which project deliverables meet requirements and expectations.
20. Quality Management Strategy
Outlines how quality requirements will be met, including standards and responsibilities.
21. Quality Criteria
The conditions a product must satisfy to be accepted.
22. Quality Tolerance
Acceptable variation from defined quality criteria without compromising viability.
23. Quality Assurance
Independent monitoring to confirm adherence to quality standards and processes.
24. Risk
An uncertain event that could positively or negatively affect project objectives.
25. Risk Register
A dynamic record of identified risks, their analysis, ownership, and mitigation actions.
26. Risk Management Strategy
Defines how risks will be identified, assessed, and managed throughout the project.
27. Issue
An event or concern that requires management action, such as problems or change requests.
28. Issue Register
Captures and tracks all project issues with details on resolution status.
29. Change
Any alteration to baseline scope, deliverables, or project documentation.
30. Change Authority
Delegated authority responsible for reviewing and deciding on change requests.
31. Configuration Management
Processes ensuring products are correctly identified, tracked, and controlled.
32. Configuration Item Record
Details about a configuration item, including status, version, and location.
33. Baseline
A formally approved version of a document, product, or plan, serving as a reference.
34. Tolerance
Defined limits of variation for time, cost, quality, scope, risk, and benefits.
35. Exception
Occurs when tolerances are forecasted to be exceeded, requiring escalation.
36. Exception Plan
A plan prepared when a stage or project is forecast to exceed tolerances.
37. Exception Report
Provides details on the cause, impact, and options when an exception occurs.
38. Project Brief
An early outline of project objectives, scope, and approach, developed before initiation.
39. Project Initiation Documentation (PID)
Comprehensive baseline document containing the Business Case, plans, and controls.
40. Project Plan
A high-level plan covering the entire project, used by the Project Board for monitoring.
41. Stage Plan
Detailed plan for a single management stage, forming the basis for day-to-day control.
42. Team Plan
Optional, detailed plan used by Team Managers to organize assigned work.
43. Daily Log
Informal record for capturing observations, actions, and project notes.
44. Lessons Log
Captures lessons from ongoing activities to improve performance during the project.
45. Lessons Report
Formal report summarizing lessons learned at project closure or stage end.
46. End Stage Report
Provides the Project Board with performance details at the end of a stage.
47. End Project Report
Summarizes overall performance, benefits achieved, and lessons at project closure.
48. Work Package
A defined set of work assigned by the Project Manager to a Team Manager.
49. Highlight Report
Regular report from the Project Manager to the Project Board, summarizing progress.
50. Checkpoint Report
Team Manager’s report to the Project Manager on work package progress.
51. Activity
A unit of work performed to produce a deliverable.
52. Dependency
A relationship showing that one task relies on another.
53. Milestone
A significant event marking the completion of a major deliverable.
54. Baseline Plan
The approved plan used as the basis for project tracking and control.
55. Tailoring
Adapting PRINCE2 processes and terminology to suit the project environment.
56. Principle
One of the seven guiding requirements ensuring PRINCE2 is properly applied.
57. Theme
Thematic areas of PRINCE2 that must be continually addressed, such as Risk or Quality.
58. Process
Defined sets of activities within PRINCE2, like Initiating or Controlling a Stage.
59. Starting Up a Project
The initial process of assessing viability and preparing the Project Brief.
60. Directing a Project
The process performed by the Project Board to provide oversight and decisions.
61. Initiating a Project
Process of creating the PID and establishing controls for delivery.
62. Controlling a Stage
Day-to-day management activities performed by the Project Manager.
63. Managing Product Delivery
Ensures work packages are delivered as planned and meet quality criteria.
64. Managing a Stage Boundary
Involves reviewing stage performance and planning the next stage.
65. Closing a Project
Formal process of confirming completion, handover, and capturing lessons.
66. Project Lifecycle
The series of stages from project conception to closure.
67. Stage
A distinct management phase within a project, typically several per project.
68. Tailored PRINCE2
Customized application of PRINCE2 suited to specific project context.
69. Assurance Roles
Independent roles that verify project health for business, user, and supplier interests.
70. Project Mandate
The initial trigger for a project, containing the outline business justification.
71. User Requirement
Specific needs of the end-user that the project aims to satisfy.
72. Supplier
An external or internal party responsible for providing resources or expertise.
73. Governance
The framework of accountability and decision-making overseeing the project.
74. Communication Management Strategy
Plan for managing information flows and stakeholder communications.
75. Risk Appetite
The organization’s tolerance for risk exposure in projects.
76. Opportunity
A positive form of risk that may enhance project outcomes if realized.
77. Threat
A negative form of risk that may harm project objectives if realized.
78. Escalation
The act of referring an issue beyond authority levels for resolution.
79. Delegation
Assigning authority for tasks or responsibilities within defined limits.
80. Dependency Network
A graphical representation of task dependencies.
81. Time Tolerance
Acceptable variation in project schedule.
82. Cost Tolerance
Permitted deviation in project budget.
83. Scope Tolerance
The extent to which deliverables can vary without impact.
84. Risk Tolerance
Acceptable levels of risk exposure for the project.
85. Benefit Tolerance
The minimum benefit threshold required for viability.
86. Audit Trail
Evidence showing decisions, approvals, and project actions.
87. Configuration Management Strategy
Approach to managing product baselines and changes.
88. Change Request
Formal proposal to alter a baseline product or plan.
89. Off-Specification
A product that cannot be delivered as originally agreed.
90. Problem Report
A report documenting a technical issue needing resolution.
91. Issue Report
Formal report capturing an issue’s impact and resolution.
92. Exception Level
The limit beyond which an exception must be escalated.
93. Exception Handling
Steps for managing breaches of tolerance.
94. Project Health Check
An independent review of project performance and compliance.
95. Assurance Check
Ongoing review ensuring standards and governance are applied.
96. Lessons Learned
Knowledge captured from successes and failures for future projects.
97. Management Stage Boundary
The division point where one stage ends, and the next begins.
98. Product Lifecycle
The entire lifecycle of a deliverable from creation to disposal.
99. Business Justification
Ongoing validation that a project remains aligned with business needs.
100. Continuous Business Justification
PRINCE2’s principle that a project must remain viable at all times.
Conclusion - PRINCE2 Glossary
PRINCE2 thrives on clarity, governance, and structured processes, making terminology a vital part of effective project management. This glossary of 100+ terms is designed to help project managers, team members, and stakeholders communicate clearly and confidently, ensuring alignment across all stages of a project. By mastering these definitions, you equip yourself to apply PRINCE2 more effectively and deliver measurable value to your organization.
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