PRINCE2: From Origins to Obsolescence

For decades, PRINCE2 was considered the gold standard in project management. Developed by the UK government in the late 20th century, it offered a structured, systematic approach to managing projects, promising clarity and control even in complex environments.

It gained widespread adoption and became a staple for project managers across industries worldwide.

Fast-forward to today, and PRINCE2 feels increasingly outdated. Once a leading example of project governance, it now struggles to stay relevant in a world that demands flexibility, innovation, and real-world results.

Critics argue that its rigid processes, heavy documentation requirements, and theoretical focus have left it trailing behind modern, flexible approaches to project management..

So, what happened to PRINCE2? How did a framework once hailed as the future of project management fall out of favor? This post explores its origins, the impact of its commercialization, and the shortcomings that have diminished its appeal in today’s fast-paced project environments.

Finally, we’ll look at how practical, skills-based certifications like those from the Center for Project Innovation (CPI) provide a modern alternative that overcomes PRINCE2’s shortcomings while meeting the demands of contemporary project managers.

The Origins of PRINCE2

PRINCE2, or PRojects IN Controlled Environments, was first developed in 1989 by the UK government’s Central Computer and Telecommunications Agency (CCTA). Originally designed as a methodology for managing IT projects, it was called PRINCE and aimed to bring consistency and order to large, complex technology initiatives in the public sector.

By 1996, PRINCE had evolved into PRINCE2, a more generic framework designed to be industry-agnostic and applicable to all types of projects. This update made PRINCE2 accessible to private sector organizations and smaller projects while retaining its structured, process-driven approach.

The framework quickly gained traction for its ability to define roles, responsibilities, and processes, which helped teams standardize project delivery and reduce risks.

One of the key features that distinguished PRINCE2 was its governance-focused approach. The methodology emphasized project accountability, clear decision-making structures, and robust documentation.

These principles were particularly appealing to public sector organizations managing taxpayer-funded initiatives, where transparency and control were paramount.

As PRINCE2 spread globally, it became synonymous with effective project management. Organizations across industries - from IT to construction to healthcare - adopted the framework, and the PRINCE2 certification became a sought-after credential for project managers seeking to validate their expertise in delivering controlled, predictable outcomes.

However, this early success set the stage for PRINCE2's later struggles. As industries evolved and project management methodologies diversified, the framework’s rigidity and reliance on process-heavy governance began to feel less like a solution and more like a limitation, especially in fast-paced and innovation-driven environments.

In the years that followed, PRINCE2 would face both opportunities and challenges as it transitioned from a publicly developed tool to a commercial product managed by private interests - a shift that would shape its trajectory and spark debates about its relevance in modern project management.

The Commercialization of PRINCE2

PRINCE2's transformation from a government-developed framework to a commercial product began in 2013, when the UK government partnered with the outsourcing firm Capita plc to create Axelos, a joint venture tasked with managing and monetizing PRINCE2, ITIL, and other intellectual property.

This marked a significant shift in PRINCE2’s purpose: from a publicly available tool designed to improve project delivery to a profit-driven certification industry.

Under Axelos, PRINCE2 became a global product with a focus on generating revenue through training, exams, and licensing. While this shift allowed for wider international adoption and better marketing, it also introduced several issues:

• Skyrocketing Costs: The privatization of PRINCE2 led to increased certification fees. Training courses, exam costs, and supplementary materials became significant expenses, making the framework less accessible to smaller organizations and individuals without corporate sponsorship.
• Profit Over Purpose: Critics argued that Axelos was more interested in promoting PRINCE2 as a certification brand than evolving the methodology to meet modern needs. This led to a perception of PRINCE2 as a "cash grab" rather than a valuable tool for improving project outcomes.
• Minimal Innovation: Despite global expansion, updates to PRINCE2 have been sporadic. While the 2017 update emphasized tailoring the methodology to different projects, it failed to address deeper issues like agility and real-world adaptability.

The commercialization also created a disconnect between the framework’s original intent and its current application.

What was once a tool for improving governance and efficiency in public projects became, for many, a box-ticking exercise: passing exams to add a line to one’s resume, often without any practical application of the methodology.

Axelos’s profit-driven model amplified criticism of PRINCE2’s shortcomings. Many professionals began to question whether the framework was being updated to serve the needs of modern project management or simply to sustain its status as a certification machine.

This skepticism would grow as PRINCE2 struggled to compete with more dynamic and flexible alternatives, such as Agile and hybrid methodologies.

While the commercialization of PRINCE2 expanded its reach, it also diluted its value as a practical tool, leaving it vulnerable to criticisms of being outdated, rigid, and increasingly irrelevant in fast-changing industries.

PRINCE2's Real-World Shortcomings

Despite its widespread adoption and global reputation, PRINCE2 has faced significant criticism in real-world project environments. While the framework provides a structured approach to project management, its shortcomings often outweigh its benefits in today’s dynamic industries.

Here are some of the issues that have led to its decline in relevance:

1. Rigid and Bureaucratic

PRINCE2’s heavy reliance on process, governance, and documentation often leads to inefficiency. While these elements are designed to provide clarity and control, they can bog down projects with excessive bureaucracy, especially in smaller or fast-moving teams.

• The Impact: Projects become overly focused on "ticking boxes" rather than delivering outcomes. This rigidity makes it difficult to adapt to changing project requirements or innovative approaches.
• Criticism: Many professionals argue that PRINCE2 is a poor fit for industries that prioritize agility and rapid iteration, such as software development.

2. Outdated for Modern Needs

PRINCE2 was developed in an era when traditional, waterfall-style project management was dominant. In contrast, modern industries increasingly favor Agile, hybrid, and Lean methodologies that prioritize collaboration, flexibility, and iterative progress.

• The Gap: PRINCE2's rigid stages and linear structure clash with the dynamic, adaptive nature of Agile frameworks. Even the introduction of PRINCE2 Agile has been criticized for feeling like a retrofit rather than a seamless integration.

3. Theoretical Over Practical

PRINCE2 certifications are earned through exams that test theoretical knowledge of the framework. However, they do not require candidates to demonstrate practical project management skills or experience.

• The Result: A PRINCE2 certificate may indicate that someone understands the principles, but it does not guarantee they can apply them effectively in real-world scenarios. This lack of focus on practical competency undermines the value of the certification in the eyes of employers.

4. Neglect of Interpersonal Skills

PRINCE2 heavily emphasizes processes, roles, and governance but pays little attention to the interpersonal and leadership skills necessary for managing people.

In practice, successful project managers must navigate team dynamics, resolve conflicts, and communicate effectively—areas where PRINCE2 provides little guidance.

• The Criticism: Projects are ultimately driven by people, not processes. PRINCE2's failure to address this reality makes it incomplete as a modern project management tool.

5. High Costs, Questionable ROI

The cost of PRINCE2 certification, which includes training, exams, and official materials, is a barrier for many aspiring project managers. While some companies subsidize these costs, individuals often face significant financial burdens.

• The Question: Given PRINCE2's declining relevance, is the investment worth it? For many, the return on investment (ROI) feels increasingly uncertain compared to more practical, modern certifications like PMI’s PMP or CPI certifications.

6. Reputation and Perception

High-profile failures by organizations that claim to use PRINCE2 (notably its majority owner, Capita plc – see below) have damaged the methodology’s reputation. Whether due to poor implementation or inherent weaknesses in the framework, these failures have led to skepticism about PRINCE2’s real-world effectiveness.

The Bigger Picture

PRINCE2’s shortcomings stem largely from its inability to evolve with the changing needs of project environments. While its structured approach may still hold value for certain large-scale, public-sector projects, it often feels like a relic of an earlier era in project management.

For many industries, its rigid processes, lack of practical application, and focus on governance over results make it less relevant in today’s dynamic, fast-paced world. This has opened the door for more flexible, skills-based alternatives to take its place.

A Modern Alternative: CPI Certifications

As PRINCE2’s relevance continues to decline, project managers and organizations are turning to more practical, adaptable, and skill-focused alternatives.

Among these, certifications from the Center for Project Innovation (CPI) stand out as a forward-thinking solution that addresses many of PRINCE2’s inherent shortcomings.

By prioritizing real-world competency over theoretical knowledge, CPI certifications offer a modern approach that aligns with the demands of today’s dynamic project environments.

1. Practical, Skills-Based Focus

Unlike PRINCE2, which emphasizes process and documentation, CPI certifications focus on the practical application of project management skills. Candidates are not assessed solely through exams but are also evaluated through interviews and challenges that test their creative and critical thinking, problem-solving abilities, and how they apply these skills within the context of their projects.

This comprehensive approach ensures that certified professionals are not only knowledgeable but also capable of delivering measurable results in real-world projects.

2. Adaptability to Modern Needs

Unlike PRINCE2, the CPI Knowledge Base (OPEN) does not mandate a one-size-fits-all methodology. Instead, it offers a series of best practices that have been tested across various industries.

By incorporating a mix of predictive, Agile, and hybrid approaches, it strikes a balance between project rigor and flexibility.

This adaptability makes CPI certifications particularly well-suited for fast-paced environments where project and stakeholder requirements often evolve rapidly.

3. Accessible and Cost-Effective

One of the most significant barriers to PRINCE2 certification is its cost, which includes training, exams, and supplementary materials.

In contrast, CPI certifications are typically more affordable and accessible, particularly for individuals and organizations with limited budgets.

Additionally, CPI offers lifetime certification, eliminating the need for costly continuing professional development (CPD) and renewal requirements.

CPI’s emphasis on demonstrated competency rather than expensive training programs ensures that professionals from diverse backgrounds can achieve certification without facing excessive financial barriers.

4. Emphasis on Real-World Impact

CPI certifications measure success not by how well a candidate can memorize frameworks but by their ability to achieve tangible results.

This is especially appealing to employers who value demonstrated outcomes over theoretical credentials.

Where PRINCE2-certified individuals may lack practical experience, CPI-certified professionals bring proven skills to the table.

A New Standard for Project Management

CPI certifications represent the next evolution in project management training and validation.

By addressing PRINCE2’s failings and emphasizing practical skills, adaptability, and real-world results, CPI provides a certification model that meets the needs of modern project managers and organizations alike.

As PRINCE2 struggles to stay relevant, CPI stands out as a practical, forward-thinking alternative ready to define the future of project management.

A Framework for the Future

PRINCE2 was once a groundbreaking solution in project management, offering a structured framework to deliver clarity and control.

However, as industries have evolved, its rigid processes, theoretical focus, and high costs have left it struggling to stay relevant.

While it still finds use in certain bureaucratic sectors, PRINCE2’s shortcomings make it an increasingly limited tool in today’s fast-paced and innovation-driven world.

In contrast, certifications from the Center for Project Innovation (CPI) represent a forward-thinking alternative. CPI’s emphasis on practical skills, adaptability, and accessibility directly addresses the failings of PRINCE2:

• Real-World Competency: CPI ensures certified professionals can deliver results, not just pass exams.
• Flexibility: A mix of predictive, Agile, and hybrid approaches makes it suitable for diverse industries and fast-changing environments.
• Cost-Effectiveness: Lifetime certification and reduced financial barriers make CPI an inclusive option for professionals at all levels.

As project management continues to shift toward dynamic, results-driven methodologies, frameworks like CPI are better positioned to meet modern demands.

For organizations and professionals seeking a certification that aligns with current industry needs, CPI offers a practical, relevant, and future-proof solution.

The question is no longer just “What happened to PRINCE2?” but “What’s next for project management?”

With its focus on real-world impact, CPI certifications may very well be the answer.