What is PRINCE2® 7 Project Management?

Initially developed by the British Government and later administered by AXELOS Limited, PRINCE2 (Projects IN Controlled Environments, version 2) is a globally recognised, process-based project management methodology.

It provides a highly structured, scalable, and adaptable framework for governance, risk management, and most importantly, benefits realisation. Today, it is widely regarded as the de facto standard in project management.

In September 2023, PeopleCert, the official PRINCE2 accreditation body, released the much-anticipated update to PRINCE2 6. PRINCE2 7 now stands as the defining standard for this industry-leading and globally accredited methodology.

This latest version was launched six years after the introduction of version 6, appropriately reflecting the evolving needs of modern project environments.

How PRINCE2® 7 Became a Global Standard in Project Management

Officially recognised as the de facto project management standard, PRINCE2 has undergone a remarkable evolution. With its roots in the 1980s, it was originally developed to address common project management challenges, such as meeting deadlines, staying within budget, and ensuring deliverables met quality standards.

Derived from an earlier IT-focused system called PROMPTII, PRINCE2 began as a government-developed methodology tailored for IT project management. Over time, it expanded well beyond its original scope.

From its first version to the latest release, PRINCE2 7, it has matured into a framework used to manage projects of all types across industries.

The PRINCE2® 7 Methodology Explained

For many, this might feel like venturing into uncharted territory. According to PeopleCert, the following offers a concise overview of the PRINCE2 project lifecycle.

Imagine this: you’re in a business role and find it challenging to navigate specific tasks or meet deadlines and budget constraints. This scenario often gives rise to an idea or identified need, documented as a project mandate. This marks the start-up phase, whose primary goal is to determine project management roles and whether the project is worth pursuing. Essentially, this process allows decision-makers to assess whether the project merits initiation.
Once approved, the project enters the initiation stage. The objective here is to define key aspects such as scope, quality, timelines, costs, risks, expected benefits and resource needs. All of this information is consolidated into the Project Initiation Documentation (PID), which is then reviewed by the project board to authorise the formal start of the project.
Following initiation, the project manager takes responsibility for managing the project on a stage-by-stage basis, reporting progress to the project board. During each stage, the project manager ensures that work progresses in alignment with the agreed plan. This involves a continuous cycle of assigning tasks, monitoring risks, gathering team updates, reviewing progress, reporting to stakeholders, and implementing corrective actions as needed.
As the project moves into product delivery, the focus shifts to ensuring that planned deliverables are completed by team members in accordance with the work packages. These outputs must meet defined quality standards and secure the necessary approvals.
At the end of each stage, the stage boundary management process enables the project board to evaluate whether the project should continue. The goal is to confirm that all agreed deliverables for the stage have been completed and to provide the board with updated information such as revised plans and a current business case to support the decision on whether to proceed. Importantly, any lessons learned should be documented to benefit future project stages or other initiatives.
The final phase is project closure, carried out in a controlled and deliberate manner. The purpose of closing a project is to assess whether the objectives outlined in the PID have been achieved, confirms that the end user is satisfied with the outcome, and formally closes the project. An End Project Report is produced, lessons learned are finalised, and project resources are reassigned.

PRINCE2® 7 Upgrades: How It Improves on Version 6

While still retaining the core structure (principles, practices, and processes), Version 7 now integrates a fourth ‘people element’. Compelling key updates include:

An enhanced focus on people, emphasising the importance of individuals as a resource and the role they play in influencing a project’s success.
The incorporation of sustainability as a performance target. In line with the United Nations’ Sustainable Development Goals, PRINCE2 now recognises the importance of the SDGs in determining project management outcomes.
In terms of digital and data management, Version 7 now incorporates a more tech-forward approach to address the increasing reliance on data-driven decision-making and digital transformation.
Improved flexibility and adaptability, recognising that project management frameworks are not one-size-fits-all and can be tailored to various project types and delivery approaches.

Future-Proof Your Career with PRINCE2® 7

With over two million PRINCE2 certified professionals worldwide, this framework is both tried and tested. While projects may operate within varying contexts, the PRINCE2 framework, particularly Version 7, is designed to adapt to diverse project environments.

At HiLogic, an accredited PRINCE2 Training Organisation, we deliver public training programs in Melbourne and Perth, alongside flexible online learning options.

Our learning options include self-paced, Foundation, and Practitioner online courses to suit different learning needs and career stages.

What is PRINCE2® 7 Project Management?