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PMI® vs. PRINCE2® - fundamental differences.

Basic approach to the project management - PMI standard versus PRINCE2 methodology. Fundamental differences between PRINCE2 and PMI.

Basic approach to the project management - Standard versus Methodology

PMI is considered the Project Management Standard. Many standardization bodies have even adopted it as the standard for the management of projects. Even ISO 21500 is based in part on a contribution by PMI of Chapter 3 and the Glossary of A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 

PRINCE2 is a complete methodology describing each activity step-by-step. Generally, PMI defines what should be done and what the final approach should contain; PRINCE2 also explains how to do it and provides the templates and role descriptions.

Processes in PMI

PMI defines ten knowledge areas within which 49 processes are identified. Those processes are distributed into five process groups, which are also considered project phases: Initiating, Planning, Executing, Monitoring and Controlling, and finally Closing.

Here are the process groups and processes: 
1) Project Integration Management

  • Develop Project Charter;
  • Develop Project Management Plan;
  • Direct and Manage Project Work;
  • Manage Project Knowledge;
  • Monitor and Control Project Work;
  • Perform Integrated Change Control;
  • Close Project or Phase.

2) Project Scope Management

  • Plan Scope Management;
  • Collect Requirements;
  • Define Scope;
  • Create WBS;
  • Validate Scope;
  • Control Scope.

3) Project Schedule Management

  • Plan Schedule Management;
  • Define Activities;
  • Sequence Activities;
  • Estimate Activity Durations;
  • Develop Schedule;
  • Control Schedule.

4) Project Cost Management

  • Plan Cost Management;
  • Estimate Costs;
  • Determine Budget;
  • Control Costs.

5) Project Quality Management

  • Plan Quality Management;
  • Manage Quality;
  • Control Quality.

6) Project Resource Management

  • Plan Resource Management;
  • Estimate Activity Resources;
  • Acquire Resources;
  • Develop Team;
  • Manage Team;
  • Control Resources.

7) Project Communications Management

  • Plan Communications Management;
  • Manage Communications;
  • Monitor Communications.

8) Project Risk Management

  • Plan Risk Management;
  • Identify Risks;
  • Perform Qualitative Risk Analysis;
  • Perform Quantitative Risk Analysis;
  • Plan Risk Responses;
  • Implement Risk Responses;
  • Monitor Risks.

9) Project Procurement Management

  • Plan Procurement Management;
  • Conduct Procurements;
  • Control Procurements.

10) Project Stakeholder Management

  • Identify Stakeholders;
  • Plan Stakeholder Engagement;
  • Manage Stakeholder Engagement;
  • Monitor Stakeholder Engagement.

Processes in PRINCE2

PRINCE2 defines seven processes, which are further split into activities.

1) Starting up a project

  • Appoint the executive and the project manager
  • Capture previous lessons
  • Design and appoint the project management team
  • Prepare the outline business case
  • Select the project approach and assemble the project brief
  • Plan the initiation stage.

2) Directing a project

  • Authorize initiation
  • Authorize the project
  • Authorize a stage or exception plan
  • Give ad hoc direction
  • Authorize project closure

3) Initiating a project 

  • Agree the tailoring requirements
  • Prepare the risk management approach
  • Prepare the change control approach 
  • Prepare the quality management approach
  • Prepare the communication management approach
  • Set up the project controls
  • Create the project plan
  • Refine the business case
  • Assemble the project initiation documentation.

4) Controlling a stage 

  • Authorize a work package
  • Review work package status
  • Receive completed work packages
  • Review the management stage status
  • Report highlights
  • Capture and examine issues and risks
  • Escalate issues and risks
  • Take corrective action.

5) Managing product delivery 

  • Accept a work package
  • Execute a work package
  • Deliver a work package

6) Managing a stage boundary

  • Plan the next management stage
  • Update the project plan
  • Update the business case
  • Report management stage end
  • Produce an exception plan

7) Closing a project

  • Prepare planned closure
  • Prepare premature closure
  • Hand over products
  • Evaluate the project
  • Recommend project closure.

PRINCE2 themes

Besides processes, PRINCE2 also recognizes themes, which cover areas that should be followed during all processes.

PRINCE2 themes are the following: Business case, Organization, Plans, Risk, Quality, Change, and Progress.

How does it fit together?

Since both PMI and PRINCE2 are complex systems for managing projects, both of them are derived from the best practice, so it is probable, that particular activities will match both.

I will not explain how they are matching for the whole project methodology, just a few examples:

Project phases:

PMI - Initiating should be translated into PRINCE2 as Starting up the project process and partially Initiation.

PMI Planning is in PRINCE2 covered by more areas like: partially Initiation and Managing a Stage boundary and also with the theme Plans.

PMI- Executing should be Controlling a stage and Managing a product delivery

PMI - Monitoring should be Directing the project process and 

PMI - closing is similar to PRINCE2, calling closing a project process.

A similar situation is with other knowledge areas. For example, Project Risk Management is covered in the Risk theme (and Risk management approach), and Project Quality Management is covered in the Quality theme (and Quality management approach).

What is extra and what is missing in PRINCE2?

PRINCE2 is trying to be simple for understanding, and this was the reason why some areas described in PMI are missing in PRINCE2. For example, Project Resources Management and Project Procurement Management are not described in PRINCE2, and Project Stakeholder management is partially dealt with in the Quality theme.

PRINCE2 does not contain soft skills, mainly interpersonal skills, which are described in PRINCE2. 

The big difference is in project techniques, but this is a complex area described in a separate article.

And what is extra in PRINCE2 not covered in PMI?

PRINCE2 introduces pre-project activities as a part of the Starting up a project process, where an Outline Business case is prepared (PMI requires a Business case to be ready before the project).

Conclusion

In-depth knowledge of both systems gives the opportunity to use the most effective project management and deliver a project within the time, cost, scope, and customer satisfaction.