Authorize Stage or Exception Plan is a critical activity within the Directing a Project Process in PRINCE2 7. This activity empowers the Project Board to make informed decisions about whether the project should proceed to its next stage or follow an exception plan when tolerances have been exceeded…Authorize Stage or Exception Plan is a critical activity within the Directing a Project Process in PRINCE2 7. This activity empowers the Project Board to make informed decisions about whether the project should proceed to its next stage or follow an exception plan when tolerances have been exceeded.
When a Stage Boundary is reached, the Project Manager prepares an End Stage Report and a Stage Plan for the upcoming stage. The Project Board then reviews these documents to assess project performance and viability before authorizing continuation. This review ensures that the business case remains valid, risks are acceptable, and the project continues to align with organizational objectives.
The authorization process involves the Project Board evaluating several key elements: the current stage performance against planned targets, updated business case viability, risk exposure and mitigation strategies, resource availability for the next stage, and any lessons learned that should influence future work. The Board must be satisfied that continuing the project represents good value and remains strategically important.
When an Exception Plan is submitted, it indicates that stage or project tolerances have been breached or are forecast to be breached. The Exception Plan replaces the remaining portion of the current Stage Plan and requires Project Board approval before implementation. This mechanism ensures that significant deviations from agreed parameters receive appropriate executive attention and decision-making.
The Project Board has several options when reviewing these plans: they may approve the plan as submitted, request modifications, put the project on hold pending further information, or recommend project closure if continuation is no longer justified. This decision-making authority represents a key governance control within PRINCE2, ensuring that management by exception operates effectively while maintaining appropriate oversight of project investments and strategic alignment throughout the project lifecycle.
Authorize Stage or Exception Plan - Complete Guide
What is Authorize Stage or Exception Plan?
Authorize Stage or Exception Plan is a key activity within the Directing a Project process in PRINCE2. This activity enables the Project Board to exercise control over the project by reviewing and approving plans before work can proceed. It occurs at stage boundaries or when an exception situation has arisen that requires board-level decision-making.
The Project Board uses this activity to: • Review the current stage's performance • Approve the next Stage Plan or an Exception Plan • Confirm continued business justification • Authorize the Project Manager to proceed
Why is it Important?
This activity is crucial for several reasons:
1. Management by Exception: It allows the Project Board to maintain strategic control while delegating day-to-day management to the Project Manager. The board only needs to engage at defined decision points.
2. Business Justification: Each authorization point ensures the project remains viable and worthwhile. If circumstances have changed, the board can redirect or stop the project.
3. Resource Commitment: Organizations only commit resources one stage at a time, reducing risk and exposure.
4. Exception Handling: When tolerances are forecast to be exceeded, this activity provides a formal mechanism for the board to assess options and make informed decisions.
How Does it Work?
The activity follows a structured approach:
For Stage Authorization: • The Project Manager prepares an End Stage Report and the next Stage Plan • The Project Board reviews project performance against the current Stage Plan • The board assesses the Business Case for continued viability • If satisfied, the board authorizes the next stage and sets tolerances • The Project Manager receives authority to proceed
For Exception Plan Authorization: • When a stage is forecast to exceed tolerances, the Project Manager raises an Exception Report • If the board requests it, an Exception Plan is prepared • The board reviews the Exception Plan as a replacement for the current Stage Plan • The board decides to approve, request changes, or escalate to corporate management • Upon approval, the Exception Plan replaces the remainder of the current Stage Plan
Key Inputs and Outputs
Inputs: • End Stage Report (for stage boundaries) • Exception Report and Exception Plan (for exceptions) • Updated Business Case • Updated Project Plan • Next Stage Plan • Benefits Management Approach updates
Outputs: • Authorization to proceed (or not) • Updated stage tolerances • Notification to corporate or programme management if required
Exam Tips: Answering Questions on Authorize Stage or Exception Plan
Tip 1: Know the Trigger Points Remember that this activity is triggered at the end of each management stage OR when the Project Manager produces an Exception Plan. Questions often test whether you understand when this activity occurs.
Tip 2: Understand Who Does What The Project Board authorizes; the Project Manager requests authorization. Questions may present scenarios where roles are confused - always identify that authorization is a board responsibility.
Tip 3: Distinguish Between Stage Plans and Exception Plans A Stage Plan is prepared in advance for the next stage. An Exception Plan replaces the current Stage Plan when tolerances will be breached. Exam questions frequently test this distinction.
Tip 4: Remember the Purpose This activity exists to provide a decision point for the Project Board. It supports management by exception and ensures continued business justification.
Tip 5: Link to Other Processes This activity receives information from Managing a Stage Boundary (where plans are prepared) and enables the Controlling a Stage process to begin. Understanding these connections helps with scenario-based questions.
Tip 6: Focus on Decision Options The board can: approve as requested, approve with changes, request more information, or decline to authorize. Some questions test whether you know all available options.
Tip 7: Watch for Exception Scenarios If a question describes a situation where tolerances will be exceeded, look for answers involving Exception Reports and Exception Plans rather than normal stage boundary activities.