In PRINCE2, effective project team development and performance management is critical to project success. This concept encompasses the systematic approach to building high-performing teams through various stages of team evolution. PRINCE2 recognizes that teams typically progress through forming, st…In PRINCE2, effective project team development and performance management is critical to project success. This concept encompasses the systematic approach to building high-performing teams through various stages of team evolution. PRINCE2 recognizes that teams typically progress through forming, storming, norming, and performing stages, and each requires specific management approaches. The Project Manager must identify team development needs and facilitate appropriate training, mentoring, and coaching opportunities to enhance individual and collective capabilities. Performance management within PRINCE2 involves establishing clear expectations aligned with project objectives, regularly reviewing team and individual performance against predefined criteria, and providing constructive feedback. This includes recognizing achievements to maintain motivation and addressing performance gaps promptly through supportive interventions. PRINCE2 emphasizes the importance of creating a positive team environment that fosters collaboration, innovation, and continuous improvement. The methodology encourages Project Managers to understand team dynamics, leverage diverse skills and perspectives, and apply appropriate management styles based on team maturity and project circumstances. By implementing effective team development and performance management practices, PRINCE2 projects benefit from enhanced productivity, improved problem-solving capabilities, increased stakeholder satisfaction, and better project outcomes. Project Managers must balance task-focused and people-focused leadership approaches, adapting their style to the team's needs while maintaining alignment with project governance requirements.