What is a project plan in PRINCE2® Project Management and how do you build one?

A project plan grounded in the PRINCE2 methodology provides the project board with a high-level view of what the project will deliver and how that delivery is expected to progress. It is one part of a hierarchy rather than a single document containing every level of planning detail: PRINCE2 also uses stage plans and, where appropriate, team plans or exception plans. Together, these allow decisions to be made using the level of information needed at each point in the project.

What is a project plan in PRINCE2® Project Management?

The project plan covers the project from initiation through to completion. It establishes the overall basis for delivery and provides a baseline against which the project board monitors progress.

A project plan based on PRINCE2 principles includes the major products to be delivered and the activities needed to create them. It also sets out the schedule and required resources, alongside the controls that will be used to manage delivery. Agreed tolerances establish the limits within which the project operates before an exception needs to be escalated.

The project plan is not intended to contain the detailed information needed to manage every piece of work. That belongs at lower levels of the planning hierarchy, where it can be developed closer to the point of delivery. Keeping this detail within stage and team plans allows planning to become more specific as better information becomes available.

Its primary audience is therefore the project board rather than the delivery team. The board needs enough information to judge whether the project remains viable and whether progress is consistent with the approved business case. For broader guidance on planning outside the PRINCE2 framework, see our guide to how to create an effective project plan.

The four levels of planning with PRINCE2

The methodology uses different plans because the people directing a project need a different level of information from those managing its current stage or delivering individual products.

Project plan

The project manager creates and maintains the project plan, while the project board approves it and uses it as the baseline for monitoring the project's overall progress.

It is reviewed at stage boundaries as better information becomes available. This keeps the high-level view current without requiring the entire project to be replanned in detail every time circumstances change.

Stage plan

A stage plan covers one management stage in greater detail. It gives the project manager the information needed to control the work currently being undertaken and is prepared towards the end of the preceding stage.

The project board approves each stage plan before authorising the next management stage. This creates a natural decision point where continued investment can be considered against current information rather than relying solely on assumptions made during initiation.

Team plan

A team plan supports the delivery of one or more work packages. It is optional, because some projects are simple enough for the work package itself to provide sufficient direction.

Where a team plan adds value, the team manager develops it for agreement with the project manager. Its focus is practical delivery, so it should contain substantially more detail than the project or stage plan.

Exception plan

An exception plan is required when forecasts show that an approved plan will no longer remain within its agreed tolerances and the relevant management level requests a replacement plan.

It does not simply record the problem. Once approved, the exception plan replaces the unachievable one and becomes the new baseline for the remaining work covered by it.

PRINCE2® Project Management Foundation training covers the principles, practices and processes that underpin this structured approach to project planning and control.

How to build a project plan using product-based planning

When considering how to create a project plan, the PRINCE2 Project Management guidance starts with what the project must produce. This product-based planning approach establishes the required outputs before the activities needed to create them are planned in detail.

The project product description provides the starting point. It defines the project's final output and establishes the expectations against which that output will eventually be accepted.

From there, the project team creates a product breakdown structure. This breaks the final output into the products required to deliver it. Product descriptions then define what each product must contain and the quality expectations it needs to meet.

The products are subsequently arranged in a product flow diagram, showing the sequence in which they need to be created and highlighting dependencies between them. Only once the required products are understood does the team move into identifying the activities needed to produce them and developing the schedule.

Consider a project to launch a new company website. The project product description defines the completed website and its acceptance criteria. The product breakdown structure then identifies outputs such as the approved design and completed website content, with further products added according to the project's needs.

Product descriptions establish what those outputs need to achieve. The design, for example, might need formal approval before development begins. The product flow diagram captures that dependency, making it clear that the relevant design work has to be completed before the dependent development activity is able to proceed.

With that sequence established, the project manager can estimate the work involved and determine what resources will be needed. The resulting schedule is therefore built around delivering defined products rather than starting with an arbitrary collection of tasks.

If plans need to change, the team can return to the product an activity is intended to create and consider whether there is another way to deliver the required result.

Planning pitfalls to avoid in a PRINCE2 project

Trying to plan the entire project at stage-level detail during initiation can create unnecessary detail based on information that is still uncertain. PRINCE2 Project Management uses progressive planning to add detail as each management stage approaches. The project plan retains the overall view while stage plans provide the detail needed for current delivery.

A Gantt chart should not be treated as the project plan itself. A schedule is an important part of planning, but it does not capture the full management information needed to control a project. The plan has a wider purpose than showing activities against dates.

Tolerances are equally important. Without defined limits, a project manager has no objective point at which a forecast deviation becomes an exception requiring escalation. Agreeing tolerances establishes how much authority remains at each management level.

Moving directly from the project objective to a task list can also weaken the product-based planning approach. Defining products first creates a clearer connection between the work being performed and what the project is actually expected to deliver.

FAQs

What is the difference between a project plan and a stage plan?

A project plan provides a high-level view of the entire project and is used by the project board to monitor overall progress. A stage plan contains more detailed information about a single management stage, giving the project manager the basis for controlling the work currently being delivered.

Who approves the project plan?

The project board approves the project plan. The project manager is responsible for preparing and maintaining it, but the board uses the plan as a baseline for directing the project and monitoring whether delivery remains consistent with the approved business case.

What is an exception plan and when is it used?

An exception plan replaces an approved plan that is forecast to exceed its agreed tolerances. It is prepared when requested by the appropriate management level following an exception and, once approved, provides a new baseline for the work that was covered by the original plan.

Understanding the PRINCE2 planning hierarchy makes it possible to plan at an appropriate level of detail without trying to predict the entire project at the outset. PRINCE2® Project Management Foundation and Practitioner training develops this understanding further, including how product-based planning supports effective project control.

Explore our PRINCE2® Project Management courses and book training.