Manage by Stages

PRINCE2 Principle: Manage by Stages

What is Manage by Stages?

Manage by Stages is one of the seven fundamental principles of PRINCE2 methodology. This principle advocates breaking down a project into distinct, manageable stages to enhance control and reduce risk. Instead of viewing a project as one massive undertaking, PRINCE2 recommends dividing it into separate phases with clear boundaries and decision points.

Why is Manage by Stages Important?

The Manage by Stages principle is crucial because it:

- Provides structured control points throughout the project lifecycle
- Enables more focused planning for immediate work while maintaining high-level planning for future stages
- Facilitates regular evaluation of project viability and business justification
- Creates natural points for senior management review and decision-making
- Limits risk exposure by containing commitment to the current stage only
- Allows for adaptation between stages based on lessons learned

How Manage by Stages Works

In practice, the Manage by Stages principle operates through:

1. Management Stages: These are discrete sections of the project with their own planning, monitoring and control requirements. Each stage concludes with a stage boundary and a decision point.

2. Stage Plans: Detailed plans created for the current stage with higher-level plans for future stages.

3. Stage Boundaries: Formal transition points between stages where the Project Board reviews progress, approves stage plans, and decides whether to proceed.

4. Exception Management: If a stage is forecasted to exceed tolerances, an Exception Report is created, potentially leading to an Exception Plan.

5. Starting Up a Project (SU) and Initiating a Project (IP) processes occur before the delivery stages begin.

6. Managing Stage Boundaries (SB) process is used to transition between stages.

Exam Tips: Answering Questions on Manage by Stages

1. Understand the basics: Remember that Manage by Stages is a principle, not a theme or process.

2. Know the benefits: Be clear on why breaking a project into stages is beneficial - control, risk reduction, decision-making opportunities, and focus on current work.

3. Recognize stage types: Differentiate between the initiation stage (planning the project), delivery stages (producing products), and final stage (closing the project).

4. Connect to other elements: Link Manage by Stages to other PRINCE2 components:
- Processes: Managing Stage Boundaries, Controlling a Stage
- Themes: Plans (stage plans), Progress (stage reporting)
- Roles: Project Board makes stage-gate decisions

5. Focus on key terminology: Be familiar with terms like management stages, technical stages, stage boundaries, exception plans, and tolerances.

6. Understand decision points: Know that at each stage boundary, the Project Board decides whether to:
- Approve the next Stage Plan
- Request changes to the Stage Plan
- Cancel the project

7. Remember minimum requirements: A PRINCE2 project must have at least two stages: an Initiation Stage and at least one more stage.

8. Application questions: For scenario-based questions, look for opportunities to apply stage-based management to solve problems or improve control.

9. Stage boundary activities: Be clear on what happens at stage boundaries (reviewing current stage, planning next stage, updating project documentation, seeking authorization).

10. Common pitfalls: Watch out for answers that suggest merging stages to save time or continuing despite exceeding tolerances—these violate the principle.

Remember that Manage by Stages is about control rather than technical delivery. Its primary purpose is to provide assurance and decision points for the Project Board while keeping detailed planning focused on immediate work.