Manage by Stages is one of the seven fundamental principles in PRINCE2 7 that ensures projects are planned, monitored, and controlled on a stage-by-stage basis. This principle recognizes that planning an entire project in detail from the outset is often impractical and risky, as uncertainty increas…Manage by Stages is one of the seven fundamental principles in PRINCE2 7 that ensures projects are planned, monitored, and controlled on a stage-by-stage basis. This principle recognizes that planning an entire project in detail from the outset is often impractical and risky, as uncertainty increases the further you look into the future.
Under this principle, a PRINCE2 project is divided into at least two management stages: an initiation stage and at least one further management stage. Each stage represents a distinct section of the project with defined boundaries, allowing the Project Board to maintain control through regular decision points called stage gates.
At the end of each management stage, the Project Board reviews progress, assesses the Business Case viability, and decides whether to authorize the next stage. This approach provides natural breakpoints where senior management can evaluate whether continuing the project remains justified and worthwhile.
The benefits of managing by stages include enhanced control, as detailed planning only extends to the current stage while subsequent stages have outline plans. This enables more accurate planning because near-term activities can be estimated with greater precision. It also allows for regular review points where lessons learned can be incorporated and plans adjusted based on actual performance.
The number and length of stages should be determined based on factors such as project complexity, risk levels, organizational requirements, and how far ahead it is sensible to plan in detail. High-risk projects may benefit from shorter stages with more frequent checkpoints, while lower-risk endeavors might have fewer, longer stages.
This principle supports effective governance by ensuring that commitment of resources and funds occurs incrementally rather than all at once, reducing exposure to risk and enabling better decision-making throughout the project lifecycle.
Manage by Stages - PRINCE2 Foundation V7 Complete Guide
Introduction to Manage by Stages
Manage by Stages is one of the seven PRINCE2 principles that provides essential control mechanisms for both the project board and the project manager. This principle ensures that projects are planned, monitored, and controlled on a stage-by-stage basis, giving senior management regular decision points throughout the project lifecycle.
Why is Manage by Stages Important?
This principle is crucial for several reasons:
• Control Points: It provides the project board with decision points at the end of each stage to assess project viability • Risk Management: Breaking the project into manageable chunks reduces risk by limiting exposure to a single stage at a time • Planning Accuracy: Detailed planning is only done for the current stage, while later stages are planned at a higher level • Resource Commitment: Resources and funding can be committed stage by stage rather than for the entire project upfront • Review Opportunities: Regular reviews allow for lessons to be incorporated and plans adjusted
What is Manage by Stages?
A management stage is a partition of the project where the project board can assess viability, review progress, and authorize commitment to the next stage. Every PRINCE2 project must have at least two management stages:
1. Initiation Stage: Where the project initiation documentation is created 2. One or more subsequent delivery stages: Where the specialist products are created
Management stages are different from technical stages or phases. Technical stages relate to the specialist work and may overlap, while management stages are sequential and provide clear governance boundaries.
How Does Manage by Stages Work?
The principle operates through several key mechanisms:
Stage Boundaries: • At the end of each stage, the project manager prepares an end stage report • The project board reviews progress and decides whether to authorize the next stage • The next stage plan is presented for approval • The business case and project plan are updated as necessary
Stage Planning: • The current stage is planned in detail • Future stages are planned at a higher level within the project plan • This approach is sometimes called the planning horizon
Determining the Number of Stages: • How far ahead it is sensible to plan in detail • Key decision points in the project • The level of risk • The project board's need for control • The availability of resources
Project Board Authority: • The project board delegates day-to-day authority to the project manager for one stage at a time • This is done through stage tolerances set in the stage plan • If tolerances are forecast to be exceeded, the project manager must escalate via an exception report
Exam Tips: Answering Questions on Manage by Stages
Key Facts to Remember:
• Every PRINCE2 project has a minimum of two management stages • The initiation stage is always the first management stage • Management stages are sequential and do not overlap • Technical stages can run across management stage boundaries • The project board authorizes one stage at a time
Common Exam Scenarios:
1. Questions about minimum stages: The answer is always two - initiation plus at least one delivery stage
2. Questions about who authorizes stages: The project board authorizes stages, not the project manager
3. Questions about stage boundaries: Look for answers involving review, authorization, and planning of the next stage
4. Questions comparing management and technical stages: Management stages are about governance and control; technical stages relate to specialist work
Watch Out For:
• Answers suggesting only one stage is acceptable - this violates the principle • Confusion between management stages and technical phases • Options suggesting the project manager can authorize stages • Answers implying all stages must be planned in detail at the start
Typical Question Patterns:
• What is the minimum number of management stages? • Who authorizes progression to the next stage? • What factors influence the number of stages? • What happens at a stage boundary? • What is the difference between management and technical stages?
Remember that this principle supports the theme of Progress and works closely with the Managing a Stage Boundary process in PRINCE2.