Glossary

This glossary only includes terms mentioned in the handbook. Management products and roles are described in Appendices A and C and their definitions are not included here. For the full set of PRINCE2 glossary definitions, see Managing Successful Projects with PRINCE2.

accept (risk response)

A risk response that means that the organization takes the chance that the risk will occur, with full impact on objectives if it does.

acceptance

The formal act of acknowledging that the project has met agreed acceptance criteria and thereby met the requirements of its stakeholders.

acceptance criteria

A prioritized list of criteria that the project product must meet before the customer will accept it (i.e. measurable definitions of the attributes required for the set of products to be acceptable to key stakeholders).

activity

A process, function or task that occurs over time, has recognizable results and is managed. It is usually defined as part of a process or plan.

agile and agile methods

A broad term for a collection of behaviours, frameworks, concepts and techniques that go together to enable teams and individuals to work in an agile way that is typified by collaboration, prioritization, iterative and incremental delivery, and timeboxing. There are several specific methods (or frameworks) that are classed as agile, such as Scrum and Kanban. PRINCE2 is completely compatible with working in an agile way.

approval

The formal confirmation that a product is complete and meets its requirements (less any concessions) as defined by its product description.

assurance

All the systematic actions necessary to provide confidence that the target (e.g. system, process, organization, programme, project, outcome, benefit, capability, product output or deliverable) is appropriate. Appropriateness might be defined subjectively or objectively in different circumstances. The implication is that assurance will have a level of independence from that which is being assured.

authority

The right to allocate resources and make decisions (applies to project, management stage and team levels).

avoid (risk response)

A risk response to a threat where the threat either can no longer have an impact or can no longer happen.

baseline

Reference levels against which an entity is monitored and controlled.

baseline management product

A type of management product that defines aspects of the project and, when approved, is subject to change control.

benefit

The measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders.

change control

The procedure that ensures that all changes that may affect the project’s agreed objectives are identified, assessed and then approved, rejected or deferred.

checkpoint

A team-level, time-driven review of progress.

configuration item

An entity that is subject to change control. The entity may be a component of a product, a product or a set of products in a release.

configuration management

Technical and administrative activities concerned with the controlled change of a product.

constraints

The restrictions or limitations by which the project is bound.

contingent plan

A plan intended for use only if required (e.g. if a risk response is not successful). Often called a fallback plan.

corrective action

A set of actions to resolve a threat to a plan’s tolerances or a defect in a product.

customer

The person or group who commissioned the work and will benefit from the end results.

customer’s quality expectations

A statement about the quality expected from the project product, captured in the project product description.

deliverable

See output.

dis-benefit

A measurable decline resulting from an outcome perceived as negative by one or more stakeholders, which reduces one or more organizational objective(s).

embedding (PRINCE2)

The act of making something an integral part of a bigger whole.

Embedding is what an organization needs to do to adopt PRINCE2 as its corporate project management method and encourage its widespread use.

enhance (risk response)

A risk response to an opportunity where proactive actions are taken to enhance both the probability of the event occurring and the impact of the event should it occur.

event-driven control

A control that takes place when a specific event occurs. This could be, for example, the end of a management stage, the completion of the PID, or the creation of an exception report. It could also include organizational events that may affect the project, such as the end of the financial year.

exception

A situation where it can be forecast that there will be a deviation beyond the tolerance levels agreed between the project manager and the project board (or between the project board and corporate, programme management or the customer).

exception plan

A plan that often follows an exception report. For a stage plan exception, it covers the period from the present to the end of the current management stage. If the exception were at project level, the project plan would be replaced.

exploit (risk response)

A risk response to an opportunity. It means seizing the opportunity to ensure that it will happen and that the impact will be realized.

governance (corporate)

The ongoing activity of maintaining a sound system of internal control by which the directors and officers of an organization ensure that effective management systems, including financial monitoring and control systems, have been put in place to protect assets, earning capacity and the reputation of the organization.

governance (project)

Those areas of corporate governance that are specifically related to project activities. Effective governance of project management ensures that an organization’s project portfolio is aligned with the organization’s objectives, is delivered efficiently and is sustainable.

impact (of risk)

The result of a particular threat or opportunity actually occurring, or the anticipation of such a result.

initiation stage

The period from when the project board authorizes initiation to when it authorizes the project (or decides not to go ahead with it). The detailed planning and establishment of the project management infrastructure is covered by the initiating a project process.

issue

A relevant event that has happened, was not planned, and requires management action. It can be any concern, query, request for change, suggestion or off-specification raised during a project. Project issues can be about anything to do with the project.

log

An informal repository managed by the project manager that does not require any agreement by the project board on its format and composition. PRINCE2 has two logs: the daily log and the lessons log.

management product

A product that will be required as part of managing the project, and establishing and maintaining quality (e.g. highlight report, end stage report). The management products are constant, whatever the type of project, and can be used as described, or with any relevant modifications, for all projects. There are three types of management product: baselines, records and reports.

management stage

The section of a project that the project manager is managing on behalf of the project board at any one time, at the end of which the project board will wish to review progress to date, the state of the project plan, the business case and risks and the next stage plan, in order to decide whether to continue with the project.

maturity

A measure of the reliability, efficiency and effectiveness of a process, function, organization, etc. The most mature processes and functions are formally aligned with business objectives and strategy, and are supported by a framework for continual improvement.

maturity model

A method of assessing organizational capability in a given area of skill.

milestone

A significant event in a plan’s schedule, such as completion of key work packages, a development step or a management stage.

off-specification

Something that should be provided by the project, but currently is not (or is forecast not to be). It might be a missing product or a product not meeting its specifications. It is one type of issue.

outcome

The result of change, normally affecting real-world behaviour and/or circumstances. Outcomes are desired when a change is conceived. They are achieved as a result of the activities undertaken to effect the change.

output

A specialist product that is handed over to a user (or users). Note that management products are not outputs but are created solely for the purpose of managing the project.

performance targets

A plan’s goals for time, cost, quality, scope, benefits and risk.

planning horizon

The period of time for which it is possible to plan accurately.

portfolio

The totality of an organization’s investment (or segment thereof) in the changes required to achieve its strategic objectives.

PRINCE2 principles

The guiding obligations for good project management practice that form the basis of a project being managed using PRINCE2.

PRINCE2 project

A project that applies the PRINCE2 principles.

probability

This is the evaluated likelihood of a particular threat or opportunity actually happening, including a consideration of the frequency with which this may arise.

problem

A type of issue (other than a request for change or off-specification) that the project manager needs to resolve or escalate. Also known as a concern.

procedure

A series of actions for a particular aspect of project management established specifically for the project (e.g. a risk management procedure).

process

A structured set of activities designed to accomplish a specific objective. A process takes one or more defined inputs and turns them into defined outputs.

product

An input or output, whether tangible or intangible, that can be described in advance, created and tested. PRINCE2 has two types of products: management products and specialist products.

product breakdown structure

A hierarchy of all the products to be produced during a plan.

programme

A temporary, flexible organization structure created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organization’s strategic objectives. A programme is likely to have a life that spans several years.

project

A temporary organization that is created for the purpose of delivering one or more business products according to an agreed business case.

project lifecycle

The period from initiation of a project to the acceptance of the project product.

project management

The planning, delegating, monitoring and control of all aspects of the project, and the motivation of those involved, to achieve the project objectives within the expected performance targets for time, cost, quality, scope, benefits and risk.

project management team

The entire management structure of the project board, and the project manager, plus any team manager, project assurance and project support roles.

project management team structure

An organization chart showing the people assigned to the project management team roles to be used, and their delegation and reporting relationships.

project mandate

An external product generated by the authority commissioning the project that forms the trigger for starting up a project.

project office

A temporary office set up to support the delivery of a specific change initiative being delivered as a project. If used, the project office undertakes the responsibility of the project support role.

project plan

A high-level plan showing the major products of the project, when they will be delivered and at what cost. An initial project plan is presented as part of the PID. This is revised as information on actual progress appears. It is a major control document for the project board to measure actual progress against expectations.

project product

What the project must deliver in order to gain acceptance.

proximity (of risk)

The time factor of risk (i.e. when the risk may occur). The impact of a risk may vary in severity depending on when the risk occurs.

quality

The degree to which a set of inherent characteristics of a product, service, process, person, organization, system or resource fulfils requirements.

quality control

The process of monitoring specific project results to determine whether they comply with relevant standards and of identifying ways to eliminate causes of unsatisfactory performance.

quality criteria

A description of the quality specification that the product must meet, and the quality measurements that will be applied by those inspecting the finished product.

quality management

The coordinated activities to direct and control an organization with regard to quality.

quality records

Evidence kept to demonstrate that the required quality assurance and quality control activities have been carried out.

records

Dynamic management products that maintain information regarding project progress.

reduce (risk response)

A response to a risk where proactive actions are taken to reduce the probability of the event occurring by performing some form of control, and/or to reduce the impact of the event should it occur.

registers

Formal repositories managed by the project manager that require agreement by the project board on their format, composition and use. PRINCE2 has three registers: issue register, risk register and quality register.

reports

Management products providing a snapshot of the status of certain aspects of the project.

request for change

A proposal for a change to a baseline. It is a type of issue.

risk

An uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives. A risk is measured by a combination of the probability of a perceived threat or opportunity occurring, and the magnitude of its impact on objectives.

risk appetite

An organization’s unique attitude towards risk-taking that in turn dictates the amount of risk that it considers acceptable.

risk exposure

The extent of risk borne by the organization at the time.

risk management

The systematic application of principles, approaches and processes to the tasks of identifying and assessing risks, planning and implementing risk responses and communicating risk management activities with stakeholders.

risk response

Actions that may be taken to bring a situation to a level where exposure to risk is acceptable to the organization. These responses fall into a number of risk response categories.

risk tolerance

The threshold levels of risk exposure that, with appropriate approvals, can be exceeded, but which when exceeded will trigger some form of response (e.g. reporting the situation to senior management for action).

scope

For a plan, the sum total of its products and the extent of their requirements. It is described by the product breakdown structure for the plan and associated product descriptions.

share (risk response)

A risk response to either a threat or an opportunity through the application of a pain/gain formula: both parties share the gain (within pre-agreed limits) if the cost is less than the cost plan, and both share the pain (again within pre-agreed limits) if the cost plan is exceeded.

specialist product

A product whose development is the subject of the plan. The specialist products are specific to an individual project (e.g. an advertising campaign, a car park ticketing system, foundations for a building or a new business process). Also known as a deliverable. See also output.

sponsor

The main driving force behind a programme or project. PRINCE2 does not define a role for the sponsor, but the sponsor is most likely to be the executive on the project board, or the person who has appointed the executive.

stage

See management stage.

stage plan

A detailed plan used as the basis for project management control throughout a management stage.

stakeholder

Any individual, group or organization that can affect, be affected by or perceive itself to be affected by, an initiative (i.e. a programme, project, activity or risk).

supplier

The person, group or groups responsible for the supply of the project’s specialist products.

tailoring

Adapting a method or process to suit the situation in which it will be used.

team plan

An optional level of plan used as the basis for team management control when executing work packages.

theme

An aspect of project management that needs to be continually addressed, and that requires specific treatment for the PRINCE2 processes to be effective.

threat

An uncertain event that could have a negative impact on objectives or benefits.

time-driven control

A management control that is periodic in nature, to enable the next higher authority to monitor progress (e.g. a control that takes place every 2 weeks). PRINCE2 offers two key time-driven progress reports: checkpoint report and highlight report.

tolerance

The permissible deviation above and below a plan’s target for time and cost without escalating the deviation to the next level of management. There may also be tolerance levels for quality, scope, benefits and risk. Tolerance is applied at project, management stage and team levels.

transfer (risk response)

A response to a threat where a third party takes on responsibility for some of the financial impact of the threat (e.g. through insurance or by means of appropriate clauses in a contract).

user

The person or group who will use one or more of the project’s products.

variant

A variation of a baselined product. For example, an operations manual may have English and Spanish variants.

version

A specific baseline of a product. Versions typically use naming conventions that enable the sequence or date of the baseline to be identified. For example, project plan version 2 is the baseline after project plan version 1.