PRINCE2 Agile is an extension to PRINCE2, combining the flexibility and responsiveness of agile delivery with the established and proven best practice framework of project management. Launched by AXELOS in June 2015, it provides official guidance for organisations that want to run PRINCE2-governed projects using Agile methods for delivery.
Core Strengths
The combination works because the two approaches have complementary strengths:
- PRINCE2's strength: Project direction and management — governance, business justification, staged delivery, and stakeholder reporting
- Agile's strength: Product delivery focus — iterative development, team empowerment, frequent value delivery, and adaptability to change
PRINCE2 Agile covers multiple agile frameworks including Scrum, Kanban, Lean Start-up, and the Cynefin complexity model.
The Agilometer
PRINCE2 Agile introduces an "Agilometer" — a tool that indicates the appropriate level of flexibility for a given project context. Organisations use it to calibrate how agile the approach should be, based on factors such as:
- How much flexibility exists on scope
- How easily the team and stakeholders can collaborate
- How well-understood the requirements are upfront
Performance Indicators Strategy
A key principle in PRINCE2 Agile is how tolerances are applied across the seven project performance targets:
- Fix (tight tolerances near zero): Time and cost — the stage finishes on time and within budget
- Moderate flexibility: Benefits and risks — managed but with some latitude
- High flexibility: Scope and quality criteria — using MoSCoW prioritisation (Must have / Should have / Could have / Won't have this time) to manage what gets delivered within the fixed time and cost
- Actively managed: Sustainability — environmental and social impact targets are tracked and reported throughout delivery
This inversion — fixing time and cost, flexing scope — is the fundamental shift from traditional project management thinking, and the key to making PRINCE2 and Agile work together effectively.
See also: PRINCE2 Agile — Stage vs Sprint and The PRINCE2 Agile Organisation.