PRINCE2 defines a project as "a temporary organisation created to deliver business products per an agreed Business Case." But in practice, the boundary between a project and business-as-usual (BAU) is often blurry. Getting this classification right matters — it determines whether PRINCE2 governance is appropriate and necessary.
Four Characteristics That Define a Project
Temporary Nature
Projects have a defined start and end point. Once the objectives are achieved and the products are delivered, the project closes and the temporary organisation disbands. Ongoing operational work with no defined end is BAU, not a project.
Team Created for Purpose
The project team is assembled specifically for this initiative, drawing together people and skills that may not normally work together. When the same permanent team simply handles ongoing work, that is BAU.
Difficulty Level
Projects typically involve a challenging scope that requires specialist approaches, cross-functional coordination, or work that stretches beyond normal operational capability. Routine work within normal competency is BAU.
Uncertainty
Projects carry a degree of uncertainty — about scope, approach, stakeholders, or outcomes — that requires active management. Highly predictable, repeatable work is better managed as BAU.
Project vs. BAU in Practice
Consider software maintenance: if the same permanent team handles ongoing releases with stable funding and predictable delivery, that is BAU. If a major new platform is being built with a newly assembled team, significant uncertainty, and a defined go-live date, that is a project.
Hosting the Olympics is clearly a project. Processing monthly payroll is clearly BAU. Most real-world work sits somewhere between these extremes — use the four characteristics above to make a reasoned judgement.
The #NoProjects Movement
There is a growing argument that organisations should eliminate project thinking in favour of continuous product delivery. This works well when teams can deliver continuously based on prioritised value, with stable funding and no fixed end date. But for many organisational initiatives — regulatory compliance, major technology migrations, facility build-outs — project governance remains the most appropriate model. PRINCE2's flexibility allows it to be tailored to this reality.