Comparing the Differences and

Complementary features of PRINCE2®

and the PMI PMBOK® Guide
PRINCE2 is the UK Government’s structured project management method. PMI stands for the Project
Management Institute producing guidance on project management documented in the ‘Guide to the
Project Management Body of Knowledge’ hence the PMI PMBOK® Guide.

PRINCE2® PMI PMBOK®

Origins
PRINCE stands for Projects IN Controlled Environments and is a UK Govt The Project Management Institute (PMI) continues to develop the Guide
sponsored initiative to improve the quality of UK project management. to the Project Management Body of Knowledge (PMBOK) to document
the practices, tools and techniques describing the generally accepted
PRINCE2 was launched in 1996 to provide guidance on all types of
sum of knowledge within the profession of project management.
project, not just information systems, as the original PRINCE was.
With its substantial membership, the American founded, but now very
PRINCE2 is a standard used extensively by the UK government and
much world-wide organisation, has the most globally recognised project
public sector, but is also widely used in the private sector, both in the
management qualifications in the world.
UK and internationally

Chronology
1979 Central Computing and Telecommunications Agency (CCTA now 1969 PMI founded in recognition of the management practices common
part of Office of Government Commerce - OGC) adopts PROMPTII, to running projects in diverse industries.
which was created by Simpact Systems Ltd in 1975, for all government
1981 Ethics, Standards and Accreditation (ESA) Management Group set
information systems projects
up to develop standards focussing on these areas
1989 Release of PRINCE, to supersede PROMPTII, again focusing on
guidance for IT project management 1983 Results of ESA project published consisting of
- Code of Ethics
1996 Release of first edition of PRINCE2 which covers all types of projects. - Standards covering the six areas of Scope Management, Cost Mgt,
Produced by consortium of Duhig Berry (now Xansa), WS Atkins (now Time Mgt, Quality Mgt, Human Resources Mgt and Communications
Atkins), and Penzer Allen with assistance from Parity Consulting under Mgt
contract from CCTA - Guidelines for accreditation of educational institutes and certification
Further revisions of PRINCE2 produced with significant updates in 2002 of individuals
and 2005. 1984-1987 Development of ‘The Project Management Body of Knowledge’
In June 2009 most significant update to date was published. 1991-1996 Development of ‘A Guide to the Project Management Body of
Key changes – simplification of the method, and the language used – as Knowledge’ (PMBOK® Guide)
evidenced by the new manual being 120 pages shorter! 1997-2000 Development of the 2000 edition of the PMBOK® Guide
Less proscriptive use of techniques such as Product Based Planning and
2001-2004 Development of the Third Edition (2004) of the PMBOK® Guide
the Quality Review Technique which have been embedded in Plans and
Quality themes respectively. For instance we no longer have a rhomboid 2005- 2008 Development of the Fourth Edition (2008) of the PMBOK®
to represent a collective grouping.
The changes to the Fourth Edition have focused on clarity and ease of
The introduction of seven basic principles which guide decision making understanding. All processes were changed to verb noun format for
throughout the life of the project. instance - instead of “Scope Verification” we now have “Verify Scope”.
PRINCE2® is a Trade Mark of the Office of Government Commerce The overall number of processes has been reduced from 44 to 42
The principles are guiding obligations and good practices which whether with Project Procurement Management being significantly simplified
the project is genuinely being managed using PRINCE2. in its structure.

The principles are listed below:- Specific process changes are as follows-
- Continued business justification Develop Preliminary Project Scope Statement and Scope Planning were
- Learn from experience deleted from 3rd edition
- Defined roles and responsibilities
- Manage by stages Collect Requirements and Identify Stakeholders were added and the six
- Manage by exception processes making up Project Procurement Management were simplified
- Focus on Products into four.
- Tailor to suit the project environment The process interactions have been clarified with process flow
The eight components have been replaced by seven themes and the diagrams at the beginning of chapters 4-12 being replaced with data
eight processes have been reduced to seven. flow diagrams.

Finally the terminology has been aligned with other OGC publications An entirely new appendix was added that addresses project
such as Managing Successful Programmes (MSP), Management of Risk management people skills has been added – further differentiating
(MoR) and the OGC Gateway Review process. the PMBOK from PRINCE2

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 PRINCE2® PMI PMBOK®
Style of Document
The publication - Managing Successful Projects with PRINCE2 - The PMBOK is a more generalist document in that it recognises that life
gives clear guidance as to how a project should be run under PRINCE2. cycles and organisation structures can vary massively by industry sector
and organisational culture.
This means that although there is a strong emphasis that the PRINCE2
approach should be tuned appropriately to a given project and It therefore provides more general guidance and covers more techniques
organisation, there are clear guidelines to be followed. For instance than PRINCE2 particularly in the areas of costs and cost control, human
it assumes very clear roles and responsibilities for each member of resources, team development, procurement and solicitation.
the project management team, along with guidance as to which
It must be stressed that as it is ‘A Guide to the PMBOK’ it also references
appointments are made first, how the team is designed and appointed
further external publications and sources of information.
and so on.

Structure
The PRINCE2 main reference is ‘Managing Successful Projects with The PMBOK Guide is now 459 pages long (from 390) and is divided into
PRINCE2’ This 327 page reference book has been considerably slimmed the following sections
down from its previous 458 pages. It is divided into the following sections - Section I - The Project Management Framework
- Introduction - Section II - The Standard for Project Management of a Project -
- Principles covering project management process groups (5)
- Introduction to themes - Section III - The Project Management Knowledge areas (9)
- Themes (7) - Section IV - Appendices (7)
- Introduction to Processes - Glossary consisting of Inclusions and Exclusions, Common Acronyms
- Processes (7) and Definitions followed by the Index
- Tailoring PRINCE2
Each knowledge area or chapter is divided into separate processes and
- Appendices (5)
defines each process in terms of its inputs, tools and techniques and outputs
- Further Information
- Project Integration Management
- Glossary and Index
- Project Scope Management
The seven themes, which were previously referred to as components, - Project Time Management
consist of - Project Cost Management
- Business Case - Project Quality Management
- Organisation - Project Human Resource Management
- Quality - Project Communications Management
- Plans (Incorporating the Planning process and product based - Project Risk Management
planning from the previous manual) - Project Procurement Management
- Risk (Brought more into line with the Management of Risk MoR
Project Integration Management covers the processes and activities
guidance)
needed to identify, define, combine, unify and coordinate the processes
- Change (combining Configuration Management, Change Control
and project management activities within the Project Management
and the Change Control Technique for the previous manual)
Process Groups
- Progress (previously referred to as Controls)
Project Scope Management includes the processes needed to identify
The seven management processes consist of
all the work required and only the work required to complete the project
- Starting up a Project
successfully, consisting of
- Directing a Project
- Collect Requirements
- Initiating a Project
- Define Scope
- Controlling a Stage
- Create WBS (Work Breakdown Structure)
- Managing Product Delivery
- Verify Scope
- Managing a Stage Boundaries
- Control Scope
- Closing a Project
Project Time Management includes the processes required to manage
Planning, which was previously the eighth process, has been incorporated
timely completion of the project.
into the Plans theme
- Define Activities
The processes give guidance on the detailed steps to go through in order - Sequence Activities
to carry out structured project management within a PRINCE2 framework. - Estimate Activity Resources
Each process is divided into between three and eight activities (replacing - Estimate Activity Durations
the term sub-processes) each of which is described in terms of - Develop Schedule
- Purpose - Control Schedule
- Objective
Project Cost Management includes the processes involved in estimating,
- Context
budgeting, and controlling costs so that the project can be completed
- An overview of the activities in each process showing the
within the approved budget
diagrammatic information flow and relationship of each activity with
- Estimate Costs
other activities and processes
- Determine Budgeting
- Each activity is described in terms of the recommended actions
- Control Costs
which make it up, the activity summary showing the documents
referred to, created and updated , along with a responsibility table Project Quality Management, covering the processes to ensure the
for each activity project satisfies the required needs
- Plan Quality
For instance the first process Starting up a Project covers the initial steps
- Perform Quality Assurance
to be carried out prior to the work being officially recognised as a project.
- Perform Quality Control
There is new focus on ensuring that lessons are properly captured from
previous projects to benefit the project that is imminent.

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 PRINCE2® PMI PMBOK®
Structure
Initiating a Project takes you through the detailed steps to firstly define Project Human Resource Management includes the processes that
the Management Strategies which will be required for Risk, Quality, organise, manage, and lead the project team
Configuration Management and Communication. - Develop Human Resource Plan
- Acquire Project Team
This leads into setting up appropriate controls, developing the Project
- Develop Project Team
Plan, updating the Business Case before assembling all the information in
- Manage Project Team
a Project Initiation Document (PID) and preparing for the next stage
Project Communications Management covers the processes required
Directing a Project covers the key decision making steps made by the
to ensure timely and appropriate generation, collection, distribution,
Project Board who act as the Sponsor / Steering Committee for a
storage, retrieval, and ultimate disposition of project information
PRINCE2 project
- Identify Stakeholders
Controlling a Stage covers the day to day management of a project by the - Plan Communications
Project Manager including authorising work, handling issues, monitoring - Distribute Information
and controlling the project, as well as communicating progress. - Manage Stakeholder Expectations
- Report Performance
Managing Product Delivery covers the detailed planning, delegation,
monitoring and control of work packages and reporting of progress Project Risk Management is focused on increasing the probability and
impact of positive events, and decreasing the probability and impact of
Managing a Stage Boundary covers the activities to prepare for the next events adverse to the project and consists of
stage of the project as well as handling Exception planning. - Plan Risk Management
Closing a Project provides guidance on ensuring the project comes to - Identify Risks
an orderly close along with capturing and sharing lessons, preparing the - Perform Qualitative Risk Analysis
Benefits Review Plan to evaluate benefits and passing on any follow on - Perform Quantitative Risk Analysis
actions appropriately. - Plan Risk Responses
- Monitor and Control Risks
Tailoring PRINCE2 to the project environment takes all the guidance that
was spread out in the previous manual and consolidates it into a single Project Procurement Management covering the processes to purchase or
chapter. It gives guidance both in how best an organisation can embed acquire the products, services, or results needed from outside the project
PRINCE2 throughout the organisation along with how to tailor PRINCE2 team to perform the project
to the needs of an individual project. - Plan Procurements
- Conduct Procurements
The five appendices are as follows - Administer
A. Product Description 0utlines – providing outlines for 26 standard - Close Procurements
management documents used within PRINCE2 from Benefits
Review Plan to Work Package The six appendices
B. Governance – compares how well PRINCE2 addresses corporate A. Fourth Edition Changes
governance requirements of project management B. Evolution of PMI’s A Guide to the Project Management Body
C. Roles and Responsibilities – providing detailed role descriptions of Knowledge
and decision making and assurance responsibilities for each of the C. Contributors and Reviewers of PMBOK® Guide - Fourth Edition
individual and group roles within PRINCE2 D. Application Area Extensions
D. Product-based planning example – previously the manual had a E. Additional Sources of Information on Project Management
chapter entitled Product Based Planning Technique where product F. Summary of Project Management Knowledge Areas
is used as an alternative term for deliverable. The technique is now G. Interpersonal Skills
part of the Plans theme and we have an example of applying the
technique in a project scenario
E. Health check – provides a series of process-oriented checklists to
assess how well PRINCE2 is being applied to your project

PMBOK areas supporting the PRINCE2 approach

There are several key project management areas that are not covered by the PRINCE2 approach. Generally this is covered by the PRINCE2 view that,
despite the importance of these topics, they are specialist areas of knowledge and are covered elsewhere and can be managed using the method as an
overall framework.
However, for a project manager to be confident and competent in carrying out their work, then ESI can assist them in developing these competencies.
1. PRINCE2 Planning process has a structured approach which takes you through sound planning steps, however, when identifying dependencies
it proposes a list of activities accompanied by dependencies is produced. In the PMBOK far greater guidance is given on the use of Precedence
Diagramming Method (PDM), Arrow diagramming Method (ADM), Conditional diagramming methods and Network templates in order to generate
an effective network diagram. A network diagram is illustrated within PRINCE2, however, carrying out the calculations are not part of any current or
proposed PRINCE2 examination.
2. In the previous version of PRINCE2, estimating techniques were not covered other than referring to ‘top-down’ and ‘bottom-up’ estimating done
for Project and Stage plans respectively. This has been largely addressed in the revised Plans theme where more estimating techniques are
outlined, with a single paragraph explanation of each given technique. The tools within the PMBoK Project Time Management and Project Cost
Management sections are still more comprehensive than in the PRINCE2 manual, including such techniques as Programme Analysis and Review
Technique (PERT) and Reserve Analysis and Cost of Quality (COQ) analysis along with indicating confidence ranges of possible results, would all be
useful additional techniques.
3. Scheduling within PRINCE2 does not give guidance of how to improve the schedule if overall timescales are unacceptable.
The PMBOK techniques of fast-tracking and crashing projects focus on how to improve project timescales in a cost effective manner.

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PMBOK areas supporting the PRINCE2 approach
4. Costing and cost control are handled lightly within PRINCE2. The main technique being the plotting of a cumulative cost curve (S-curve) with
tolerance margins illustrated, and recording the actual costs of the project with a second line.
The powerful performance measurement techniques such as Earned value management, as given in the PMBOK are missing from PRINCE2. In
fact this is a prime selling point for PMI training as PRINCE2 relies heavily on the concepts of management by exception and use of tolerances, but
without the use of Earned value management you cannot readily determine the progress of your project and how healthily it is performing.
5. The generation of cost estimates is extensively supported in the PMBOK guide, giving great support to project managers with financial
responsibilities, with techniques such as vendor bid analysis and use of cost management plans.
All the above points are supported by ESI’s Scheduling and Cost Control - the majority (1-4) are covered by Managing Projects and Managing IT
Projects
6. Quality is a major topic within each of the approaches. Key PMBOK techniques which are not covered in PRINCE2 include benefit/cost analysis,
benchmarking, flowcharting techniques such as Ishikawa or cause-and-effect diagrams, design of experiments, and cost of quality. The specific
area of quality control is again supported by additional techniques such as control charts, Pareto diagrams, sampling and trend analysis
The above is supported by ESI’s Quality for Project Managers
7. PRINCE2 agrees that Team work and communications are important facets of the Project Manager role but gives no guidance other than suitable
document outlines to use when communicating progress or escalating concerns
The ESI Project Leadership, Management and Communications course covers such areas as setting direction, aligning people, motivating and
inspiring, leading teams, communicating, building relationships, facilitating ethical conduct, negotiating, and leading change, ensuring project
managers are rounded out with the second half of their required skill-set.
8. Project Human Resource Management within PMBOK also covers staff acquisition, performance appraisal and health and safety regulations, none
of which is mentioned in PRINCE2.
9. PRINCE2 covers communications primarily through the development of a Communications Management Strategy outlining the overall approach
to engaging stakeholders. However, it goes little further than listing headings in the Communication Management Strategy product outline and
providing a six step approach to stakeholder engagement derived from OGC’s Managing Successful Programmes (MSP) guidance.
The PMBOK explores use of differing technologies, communication skills, retrieval systems and distribution methods, providing the project
manager with additional tools.
The ESI Project Leadership, Management and Communications course covers point 9 and partially covers point 8 above
10. Risk is again a topic which both approaches explore in some detail. The main additional elements in the PMBOK approach cover the advantages
and disadvantages of linear and nonlinear numeric probability and impact scales, project assumptions testing, data precision ranking and
quantitative risk analysis techniques. Techniques such as Monte Carlo and decision tree analysis (referred to as probability trees in PRINCE2) are
briefly described in the PRINCE2 manual; however, it lacks the technical detail provided in the PMBOK which enables a more analytical approach to
be taken.
ESI’s Risk Management covers the above point
11. Perhaps the largest single section of project management which is not covered in the PRINCE2 approach is Project Procurement Management.
ESI’s Contracting for Project Managers course is aligned with this PMBOK chapter and equips the project manager with the skills and knowledge
to handle procurement and solicitation namely determining what to procure and when along with handling the entire contract process from
planning, obtaining quotations/proposals, selection, contract administration and completion and settlement of the contract.
ESI’s Managing Projects event assists several of the points above particularly in the areas of planning and costing, but not to the same degree of
detail as the Scheduling and Cost Control event
ESI’s Project Management Applications covers many of the above items in a rigorous week long case study

Competency Areas supported by the ESI range of courses

The first two competency areas of Project Integration Management and Project Scope Management are adequately covered by the PRINCE2 approach
Project Time Management
PRINCE2 does not cover mathematical analysis techniques such as CPM and PERT analysis duration compression techniques such as crashing and fast
tracking to improve the project schedule. Similarly performance measuring techniques such as Earned Value and Variance Analysis are not covered
ESI’s Scheduling and Cost Control and to a lesser extent Managing Projects and Project Management Applications support the above.
Project Cost Management
The PMI model provides far greater guidance on cost estimating, including use of cost accounts, different estimating techniques, budgeting and cost
control techniques such as Earned Value Management
ESI’s Scheduling and Cost Control and to a lesser extent Managing Projects and Project Management Applications support the above.
Project Quality Management
The PMI model covers significant additional techniques such as Benefit/Cost Analysis, Benchmarking, Flowcharting, Cost of Quality concepts,
Operational Definitions. It also covers technical quality control techniques such as Inspection, Control Charts, Pareto diagrams, Statistical Sampling
concepts and Trend Analysis.

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Competency Areas supported by the ESI range of courses
ESI’s Quality for Project Managers supports the above areas
Project Human Resource Management
PRINCE2 is lacking in guidance for Staff Acquisition, Team Building and Team Development, Reward and Recognition systems and all the people areas
of project management such as Negotiation skills, handling conflict and motivating people.
The ESI Project Leadership, Management and Communications covers the above points
Project Communications Management
This area is handled quite lightly within PRINCE2 primarily focussing on the development of a Communications Plan and use of specific documents and
review meetings.
The PMI approach gives insight into communication concepts such as Sender / Receiver models and cultural communication issues, choice of
presentation techniques and content to communicate with different people, meeting management techniques such as dealing with conflict and
communication skills. Finally, tools and techniques for assisting performance reporting and analysis such as Earned Value Analysis.
The ESI Project Leadership, Management and Communications covers the above points with Earned Value in Scheduling and Cost Control and to a
lesser extent Managing Projects
Project Risk Management
PRINCE2 does not cover areas such as Quantitative Risk Analysis along with Risk Identification techniques such as Delphi, Interviewing, SWOT Analysis,
Assumptions Analysis, Diagramming Techniques, Data Precision, use of ordinal vs. cardinal values, Sensitivity Analysis, Decision Tree Analysis and
simulation techniques such as Monte Carlo
ESI’s Risk Management covers the above
Project Procurement Management
PRINCE2 does not cover this competency.
The PMI approach can provide the project manager with a range of vital skills to assist the entire Procurement and Solicitation process. Procurement
& Solicitation Planning, the Solicitation process, Source Selection, Contract Administration and Contract Closeout. It also includes such tools and
techniques as make or buy analysis, contract type selection, bidder conferences, handling of proposals, contract administration and payment systems.
ESI’s Scheduling and Cost Control covers the above areas

In Summary
PRINCE2 and the PMI PMBOK are different types of publication but have many complementary elements.
The PRINCE2 reference often guides you to what you should be doing but sometimes falls short of providing you with the knowledge of how to
carry out the activity. For instance ‘Investment Appraisal’ is a heading within the Business Case but PRINCE2 does not explain any of the techniques or
methods such as Net Present Value (NPV), Internal Rate of Return (IRR) etc. whereas, the PMI PMBOK attempts to point you to specific tools to actually
help you carry out the required steps.
Several key areas of project management, such as the people side of projects, procurement, contract administration and cost control in general are not
adequately covered within PRINCE2 and can be very strongly complemented by the PMI approach.
Similarly in areas of project planning and control the PMI approach gives you practical guidance in not only preparing good quality plans, but how to
interpret them and make use of them to control your project to deliver your projects more successfully in the future.

Derek Bell, Senior Instructor, ESI International

August 2009

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PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.