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

A project plan is a document that explains what a project will deliver and how that delivery will be managed from start to finish. In PRINCE2® Project Management, the project plan provides a high-level view of the whole project, showing the major products and the resources and activities needed to deliver them. It forms the baseline the project board uses to monitor progress. PRINCE2 plans also work as a hierarchy, with project plans, stage plans, team plans and exception plans providing different levels of detail for different purposes.

What is a project plan?

A project plan describes how a project will be delivered from beginning to end. While many organisations use project plans, PRINCE2 Project Management formalises the plan as a management product that supports decision-making throughout the project.

A PRINCE2 project plan typically includes the project's products, major activities, schedule, resource requirements, tolerances and control arrangements. It is owned by the project manager and approved by the project board, who use it as the baseline against which overall progress is measured.

The PRINCE2 Project Management plan hierarchy

PRINCE2 Project Management uses four levels of plan: the project plan, stage plans, team plans and exception plans. Each serves a different purpose while supporting effective control throughout the project.

The project plan

The project plan provides the overall view of the project. It outlines what will be delivered across the entire lifecycle and supports decisions made by the project board. It is reviewed at stage boundaries to confirm that the project remains achievable and aligned with the business case.

Stage plans

Stage plans provide more detailed information for the current management stage. Produced shortly before work begins, they allow the project manager to control delivery without attempting to predict every activity months in advance.

Team plans

Team plans are optional and are created by team managers when additional detail is needed to deliver work packages. They support day-to-day delivery while remaining aligned with the approved stage plan.

Exception plans

An exception plan is produced when forecasts show that agreed tolerances will be exceeded. Rather than adjusting the existing plan, the exception plan replaces the one that can no longer be achieved and becomes the new baseline once approved.

How to create a project plan in PRINCE2 Project Management

Creating a PRINCE2 project plan follows a product-based planning approach:

1. Write the project product description
2. Create the product breakdown structure
3. Develop product descriptions
4. Sequence the products
5. Estimate the work, prepare the schedule and review the risks

The process begins by defining the final product the project is expected to deliver. This establishes a shared understanding of the project's purpose before any planning takes place.

Next, break that product into the individual outputs needed to achieve it. The resulting product breakdown structure provides a clear picture of the project's scope.

Each product should then be described so everyone understands the required quality, completion criteria and ownership.

Once the products have been identified, decide the order in which they need to be created. This makes it easier to identify dependencies before building the schedule.

Finally, estimate the effort required before developing a realistic schedule that takes potential risks into account. The completed plan becomes the foundation for monitoring progress throughout the project.

Where planning fits in the project lifecycle

Planning is not a one-off activity within PRINCE2 Project Management. The project plan is created during initiation and supports the project throughout its lifecycle. Stage plans are prepared as each management stage approaches, while team plans are developed when they add value to delivery. If an agreed tolerance is forecast to be exceeded, an exception plan replaces the affected plan after approval.

This approach supports the PRINCE2 Project Management principle of managing by stages, allowing planning to remain realistic as the project progresses.

Project plan templates: What to include

A PRINCE2-aligned project plan template should include a description of the plan, any prerequisites, assumptions and external dependencies. It should also record lessons incorporated from previous work, explain how progress will be monitored and controlled, define budgets and tolerances, include appropriate product descriptions and present the overall schedule.

Rather than building that structure from scratch, you can start from a PRINCE2 project plan template that already sets out these components against the correct headings.

If you're looking for broader planning guidance, our project planning 101 guide explains the fundamentals of creating an effective project plan. This article focuses specifically on how PRINCE2 structures and governs project planning.

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 for the current management stage, allowing the project manager to control day-to-day delivery.

Is a Gantt chart a project plan?

No. A Gantt chart is a scheduling tool that may form part of a project plan, but it does not replace the wider information needed to manage a project, such as tolerances, assumptions, controls and product information.

Who owns the project plan in PRINCE2 Project Management?

The project manager is responsible for creating and maintaining the project plan. The project board reviews and approves it before using it as the baseline for monitoring project performance.

When is an exception plan used?

An exception plan is created when forecasts show that an approved plan can no longer be delivered within its agreed tolerances. Once approved, it replaces the previous plan and provides a new basis for control.

Understanding how PRINCE2 Project Management approaches planning makes it easier to produce realistic plans and maintain control throughout delivery. If you'd like to develop these skills further, explore our PRINCE2 Project Management Foundation and Practitioner training.

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