Project Stages are fundamental time-based divisions within a PRINCE2 project that provide essential control points for management and governance. Each stage represents a distinct period during which specific work is completed, resources are committed, and progress is monitored against defined targe…Project Stages are fundamental time-based divisions within a PRINCE2 project that provide essential control points for management and governance. Each stage represents a distinct period during which specific work is completed, resources are committed, and progress is monitored against defined targets.
In PRINCE2 7, there are two types of stages: Management Stages and Technical Stages. Management Stages are mandatory and represent the primary control mechanism for the Project Board. They define points where the Project Board reviews progress, assesses continued viability, and authorizes commitment of resources for the next period. Technical Stages relate to the specialist work being undertaken and may overlap or run in parallel.
The number of management stages depends on project complexity, risk levels, and how far ahead planning can reasonably extend. At minimum, a PRINCE2 project has two management stages: the Initiation Stage and at least one subsequent delivery stage. Larger projects typically have multiple stages to maintain appropriate control.
At the end of each management stage, the Project Manager prepares an End Stage Report and presents the Stage Plan for the upcoming stage to the Project Board for approval. This stage boundary process enables informed decision-making about whether to proceed, provides natural breakpoints for reviewing business justification, and allows adjustment of plans based on experience gained.
Stages support the management by exception principle by establishing tolerances for time, cost, scope, quality, benefits, and risk. The Project Manager operates within these tolerances, only escalating to the Project Board when forecasts indicate tolerances will be exceeded.
Effective stage planning ensures resources are allocated appropriately, risks are managed at suitable intervals, and the project remains aligned with organizational objectives throughout its lifecycle. This structured approach provides confidence to stakeholders while maintaining flexibility to respond to changing circumstances.
Project Stages in PRINCE2 Foundation v7
Why Project Stages Are Important
Project stages are fundamental to PRINCE2's approach to project management. They provide essential management control points that allow the Project Board to maintain oversight of the project. By dividing a project into stages, organizations can make informed decisions about whether to continue, modify, or terminate a project at defined points. This approach reduces risk by limiting commitment to one stage at a time and ensures that lessons learned can be applied throughout the project lifecycle.
What Are Project Stages?
A project stage is a collection of activities and products whose delivery is managed as a unit. In PRINCE2, there are two types of stages:
Management Stages: These are partitions of the project with decision points for the Project Board. Every PRINCE2 project has a minimum of two management stages - the initiation stage and at least one further stage. The Project Board authorizes one stage at a time.
Technical Stages: These are groupings of work based on the techniques or skills required. Technical stages may overlap with management stages but are separate concepts.
How Project Stages Work
1. Initiation Stage: The first management stage where the Project Initiation Documentation (PID) is created and the project is planned in detail.
2. Subsequent Delivery Stages: Following stages where the specialist products are created. Each stage is authorized through a Stage Gate review.
3. Stage Boundaries: At the end of each stage, the Managing a Stage Boundary process occurs. The Project Manager prepares an End Stage Report and the next Stage Plan for Project Board approval.
4. Stage Authorization: The Project Board reviews progress, assesses the Business Case viability, and decides whether to authorize the next stage.
Determining the Number of Stages
Several factors influence how many stages a project should have: - How far ahead it is sensible to plan - Key decision points in the project - The level of risk - The confidence level of the Project Board - The need for formal reviews or audits
Exam Tips: Answering Questions on Project Stages
Tip 1: Remember that every PRINCE2 project must have at least two management stages. This is a frequently tested fact.
Tip 2: Understand the difference between management stages and technical stages. Management stages are for governance and control; technical stages relate to the type of work being done.
Tip 3: Know that the Project Board authorizes work one stage at a time. This is a key control mechanism in PRINCE2.
Tip 4: Be clear that stage boundaries provide decision points where the Project Board can assess continued viability of the project.
Tip 5: When questions mention 'Managing a Stage Boundary,' remember this process happens at the end of each stage except the final one.
Tip 6: Questions may ask about factors affecting the number of stages - think about planning horizon, risk, and control needs.
Tip 7: The initiation stage is always the first management stage, and its purpose is to establish solid foundations for the project.
Tip 8: Remember that shorter stages give more control but increase management overhead, while longer stages reduce overhead but decrease control frequency.
Common Exam Question Types
- Minimum number of stages required - Who authorizes stages (Project Board) - Purpose of stage boundaries - Factors determining number of stages - Difference between management and technical stages - What happens at a stage boundary