Manage by Stages

Prince2 Manage by Stages Principle - Complete Guide

What is the Manage by Stages Principle?

The Manage by Stages principle is one of the seven fundamental principles of PRINCE2 methodology. It advocates breaking down a project into distinct, manageable phases or stages, each with clear objectives and boundaries. Instead of trying to plan and execute an entire project at once, PRINCE2 recommends dividing it into smaller, more controllable chunks.

Why is the Manage by Stages Principle Important?

The Manage by Stages principle is crucial because it:

• Provides control points for project governance
• Enables regular reviews and decision-making
• Limits commitment of resources to one stage at a time
• Allows for adjustments based on experience and lessons learned
• Reduces complexity by breaking down the project
• Facilitates risk management through periodic assessment
• Enhances project visibility and control

How the Manage by Stages Principle Works

Stage Planning
Each stage requires detailed planning. The current stage is planned in detail, while future stages are planned at a higher level. This approach is known as "rolling wave planning" and allows for progressive elaboration as more information becomes available.

Stage Boundaries
At the end of each stage, there's a formal stage boundary where the project board reviews progress, approves the next stage plan, and makes a decision to continue, adjust, or terminate the project. This is a key control point in PRINCE2.

Management Stages vs. Technical Stages
It's important to distinguish between management stages (used for project control) and technical stages (used for product delivery). Management stages may encompass multiple technical stages, but they always align with key decision points.

Minimum Requirements
PRINCE2 requires at least two management stages: an initiation stage and at least one more stage. The number of stages should be proportionate to the project's scale, risk, and complexity.

Implementing the Manage by Stages Principle

To effectively implement this principle:

• Break down the project based on major decision points
• Consider risk levels when determining stage boundaries
• Balance the need for control against administrative overhead
• Ensure each stage has clear objectives and deliverables
• Use stage boundaries for thorough reviews and decision-making
• Adjust future stage plans based on lessons from completed stages

Exam Tips: Answering Questions on Manage by Stages

Key Concepts to Remember:

• Understand the difference between management stages and technical stages
• Remember that stages are primarily about control, not just work breakdown
• Know that each stage must be authorized by the Project Board
• Recognize that detailed planning is only required for the current stage
• Be familiar with end-stage assessment and its purpose

Common Question Types:

1. Scenario-based questions - These may ask you to identify appropriate stage boundaries in a given project scenario.

2. True/False statements - You might need to identify correct or incorrect statements about the Manage by Stages principle.

3. Application questions - These test your ability to apply the principle to practical situations.

4. Integration questions - Questions that ask how this principle relates to other PRINCE2 elements.

Strategies for Answering:

• Look for key words related to control, decision points, and authorization
• Pay attention to the scale and complexity of the project described
• Consider risk levels when evaluating stage planning scenarios
• Remember that stage boundaries are control points, not just schedule milestones
• Focus on how stages enhance management control and decision-making

Common Mistakes to Avoid:

• Confusing management stages with technical stages or work packages
• Assuming that more stages always means better control
• Focusing only on product delivery rather than management control
• Forgetting that each stage requires Project Board authorization
• Thinking stage planning is a one-time activity rather than progressive

Remember that the Manage by Stages principle is fundamentally about providing control, establishing decision points, and limiting commitments to manageable portions of the project. Questions will often test whether you understand how this principle helps manage risk and uncertainty while providing management oversight.