The 'Manage by Stages' principle is a core requirement of PRINCE2 7, dictating that a project must be planned, monitored, and controlled on a stage-by-stage basis. This approach prevents the pitfalls of planning too far ahead in detail, acknowledging that uncertainty increases over time. Instead, P…The 'Manage by Stages' principle is a core requirement of PRINCE2 7, dictating that a project must be planned, monitored, and controlled on a stage-by-stage basis. This approach prevents the pitfalls of planning too far ahead in detail, acknowledging that uncertainty increases over time. Instead, PRINCE2 advocates for 'rolling wave planning,' where the project possesses a high-level Project Plan for the overall duration, but detailed planning occurs only for the immediate next management stage.
Technically, a PRINCE2 project requires a minimum of two management stages: the initiation stage (to define the project) and at least one further stage to execute the work. The transition between these stages functions as a critical control point or 'firebreak' for the Project Board. At the end of each stage, the Board reviews the 'End Stage Report' to assess progress and the 'Next Stage Plan' to approve future resources. This ensures that the organization only commits resources to a plan that is accurate and achievable, rather than authorizing the entire budget upfront based on potentially flawed initial assumptions.
From a Practitioner perspective, applying this principle requires tailoring. The number and duration of stages should depend on the project's scale, risk profile, and complexity. High-risk projects require shorter stages to provide frequent decision points, while lower-risk projects may benefit from longer stages to minimize administrative overhead. Crucially, this principle ensures that the project's Business Case is verified at every stage boundary. If the project is no longer viable, desirable, or achievable, the Project Board has the formal opportunity to stop the project, thereby protecting the organization from wasted investment.
Applying the Principle: Manage by Stages - Prince2 Practitioner v7 Guide
What is Manage by Stages? The 'Manage by Stages' principle dictates that a PRINCE2 project must be planned, monitored, and controlled on a stage-by-stage basis. It breaks the project down into discrete, manageable chunks called management stages. This approach provides the Project Board with formal control points at specific intervals throughout the project lifecycle, ensuring the project does not proceed blindly without re-validating its viability.
Why is it Important? This principle is crucial for risk management and resource control. By planning and authorizing work one stage at a time: - It prevents the organization from committing vast resources to a project that may no longer be viable. - It allows the Project Board to delegate day-to-day management to the Project Manager within the boundaries of a stage, termed 'Management by Exception'. - It resolves the problem of the 'planning horizon'—the concept that it is often impossible to plan in high detail for the distant future.
How it Works in Practice To apply this principle correctly, a project must adhere to specific rules: 1. Minimum Stages: There must be at least two management stages: the Initiation Stage (planning the project) and at least one further execution stage. 2. End of Stage Assessment: At the end of every stage, a 'Go/No-Go' decision is made by the Project Board. They review the End Stage Report (what happened) and the Next Stage Plan (what is coming). 3. Planning Granularity: The Project Plan is high-level, while the Stage Plan is detailed. A detailed plan for the next stage is created near the end of the current stage.
Exam Tips: Answering Questions on Manage by Stages In the Practitioner exam, questions focus on whether the principle is being applied correctly or incorrectly based on a scenario. Use these tips to analyze the situation:
1. Look for the 'Planning Horizon' Violation If a scenario describes a Project Manager creating a detailed Gantt chart for a 2-year project on day one, this is a violation. The justification for Manage by Stages is that you should only plan in detail as far as you can reasonably foresee.
2. Analyze Stage Duration Factors Exam questions may ask how to decide stage lengths. Correct answers usually involve: - Risk: Higher risk requires shorter stages (more frequent reviews). - Key Decision Points: Stages often end when a major strategic decision is needed. - Technical Phases: While management stages and technical phases are different, it is often convenient to align them (e.g., ending a stage when the 'Design' phase completes).
3. Check for the 'Rolling Wave' Approach Correct application involves 'rolling wave' planning. If the scenario suggests that the Stage Plan for stage 3 is being written during stage 1, this is incorrect. The Stage Plan for stage 3 should be written towards the end of stage 2.
4. Identify Missing Control Points If a team transitions immediately from design to build without Project Board authorization, the principle is broken. Look for evidence that the Project Board is reviewing viability before authorizing the next tranche of work.