A PRINCE2 project has defined and agreed roles and responsibilities with an organization structure that engages the business, user and supplier stakeholder interests.

PRINCE2 is based on a customer/supplier environment. It assumes that there will be a customer who will specify the desired result and probably pay for the project, and a supplier who will provide the resources and skills to deliver that result. Every project needs effective direction, management, control and communication.

Establishing an effective project management team structure and strategy for communication at the beginning of a project, and maintaining these throughout the project’s life, are essential elements of a project’s success.

One of the principles of PRINCE2 is that all projects must have a defined organizational structure to unite the various parties in the common aims of the project and to enable effective project governance and decision making.

A successful project management team should:
a) Have business, user and supplier stakeholder representation
b) Ensure appropriate governance by defining responsibilities for directing, managing and delivering the project and clearly defining accountability at each level
c) Have reviews of the project roles throughout the project to ensure that they continue to be effective
d) Have an effective strategy to manage communication flows to and from stakeholders.