Delegation of Authority is a fundamental concept within the Organization Theme of PRINCE2, establishing how decision-making powers flow through the project management structure. PRINCE2 operates on the principle of 'management by exception,' where each management level delegates authority to the le…Delegation of Authority is a fundamental concept within the Organization Theme of PRINCE2, establishing how decision-making powers flow through the project management structure. PRINCE2 operates on the principle of 'management by exception,' where each management level delegates authority to the level below, setting tolerance boundaries within which that level can operate without reference upward. Corporate or Programme Management delegates authority to the Project Board, which in turn delegates day-to-day management to the Project Manager. The Project Manager may further delegate to Team Managers. This cascading delegation creates clear lines of authority and accountability while promoting efficient decision-making. Each delegation includes explicit tolerances for time, cost, quality, scope, risk, and benefit performance. These tolerances define the constraints within which each management level can make decisions autonomously. When a tolerance is forecast to be exceeded, it triggers an exception that must be escalated to the next management level. This approach ensures senior management attention is focused only where needed, avoiding micromanagement while maintaining appropriate oversight. Effective delegation requires clear documentation of tolerances, decision-making rights, and escalation procedures. The delegated authority must be commensurate with the responsibility assigned, and those receiving delegated authority must have the capability and resources to exercise it effectively. PRINCE2 emphasizes that delegation is not abdication—the delegator remains accountable for the outcomes even as responsibility for actions is transferred.
Delegation of Authority in PRINCE2: A Comprehensive Guide
Understanding Delegation of Authority in PRINCE2
Delegation of authority is a fundamental aspect of the Organization Theme in PRINCE2. It establishes clear responsibilities and decision-making powers within a project structure.
What is Delegation of Authority?
Delegation of authority in PRINCE2 refers to the formal process of distributing decision-making powers and responsibilities from higher management levels to lower levels in the project management team. This creates a clear chain of command where each role knows exactly what decisions they can make.
The Project Board delegates authority to the Project Manager through a series of tolerances (time, cost, quality, scope, risk, and benefit) within which the Project Manager can operate independently. Similarly, the Project Manager can delegate authority to Team Managers through team-level tolerances.
Why is Delegation of Authority Important?
1. Efficient Decision-Making: Enables decisions to be made at the appropriate level, preventing bottlenecks
2. Clear Accountability: Establishes who is responsible for what aspects of the project
3. Empowerment: Motivates team members by giving them appropriate authority
4. Management by Exception: Supports this key PRINCE2 principle by allowing day-to-day management to happen at the right level
5. Scalability: Makes the PRINCE2 methodology adaptable to projects of various sizes
How Delegation of Authority Works in PRINCE2
The delegation mechanism in PRINCE2 operates through:
1. Tolerances: Defined limits within which a management level can operate
2. Exception Reporting: When a tolerance is forecast to be exceeded, it must be escalated to the next management level
3. Project Controls: Regular checkpoints to ensure the project remains within tolerances
4. Role Descriptions: Clearly defined responsibilities for each role in the project
5. Management Stages: Breaking the project into manageable phases with defined tolerances
The Delegation Chain
- Corporate/Programme Management sets project tolerances for the Project Board
- Project Board sets stage tolerances for the Project Manager
- Project Manager sets work package tolerances for Team Managers
- Team Managers manage their teams within these tolerances
Exam Tips: Answering Questions on Delegation of Authority
1. Understand the Hierarchy: Be clear about which level delegates to which in PRINCE2
2. Know Your Tolerances: Memorize the six types of tolerances (time, cost, quality, scope, risk, benefit)
3. Focus on Exception Processes: Many questions focus on what happens when tolerances are forecast to be exceeded
4. Connect to Management by Exception: Relate delegation of authority to this principle
5. Project Board Authority: Remember that while the Project Board delegates day-to-day management, they remain accountable for project success
6. Distinguish Roles: Be clear about what authority each role has (Executive, Senior User, Senior Supplier, Project Manager, Team Manager)
7. Tolerance Examples: Be able to give examples of specific tolerances for different project scenarios
8. Escalation Paths: Know how exceptions are escalated from Team Manager → Project Manager → Project Board → Corporate/Programme Management
Common Exam Question Types
1. Scenario-based questions asking who has authority to make specific decisions
2. Questions about what happens when tolerances are forecast to be exceeded
3. Questions asking which role delegates to which other role
4. Questions testing understanding of the differences between authority at different management levels
When taking your PRINCE2 Foundation exam, remember that questions on delegation of authority often test your understanding of project structure, roles and responsibilities, and the management by exception principle. Focus on these relationships to successfully answer questions in this area.