An Exception Plan is created when a plan is forecast to exceed its tolerances, requiring an alternative approach to complete the remaining work. In PRINCE2, when a Team Manager or Project Manager forecasts that a plan will exceed its tolerances, they must inform the next level of management. This t…An Exception Plan is created when a plan is forecast to exceed its tolerances, requiring an alternative approach to complete the remaining work. In PRINCE2, when a Team Manager or Project Manager forecasts that a plan will exceed its tolerances, they must inform the next level of management. This triggers an exception report, and if approved, an Exception Plan is created. The Exception Plan replaces the current plan for the remaining work, with new baselines established for the remaining duration. It outlines corrective actions, revised timelines, resource allocations, and cost projections to bring the project back within acceptable parameters. The Exception Plan must be reviewed and approved by the appropriate management level (typically the Project Board for the Project Plan or the Project Manager for Stage or Team Plans). Once approved, the Exception Plan becomes the authorized plan against which progress is measured. Exception Plans prevent "muddling through" when projects deviate significantly from their targets and ensure proper governance by requiring formal approval for significant changes. They exemplify PRINCE2's 'Manage by Exception' principle, allowing senior management to focus on strategic decisions while operational managers handle day-to-day activities within agreed boundaries. Exception Plans help maintain control, transparency, and accountability in projects experiencing significant deviations from their approved parameters.
Exception Plan: A Comprehensive Guide
An Exception Plan is a crucial concept within the Plans Theme of PRINCE2 methodology. This guide will help you understand what an Exception Plan is, why it matters, how it works, and how to answer exam questions about it.
What is an Exception Plan?
An Exception Plan is a special type of plan created when a Stage Plan or Project Plan is forecast to exceed its tolerance levels. It replaces the current plan and provides a new baseline for the project or stage going forward.
Exception Plans are created when: - Current forecasts indicate that tolerances will be exceeded - A formal request has been made to replace the current plan - The Project Board requires a revised plan before making a decision
Why Exception Plans are Important
Exception Plans are vital because they: - Provide a formal mechanism to handle significant deviations from approved plans - Enable controlled management of exceptional situations - Allow the Project Board to make informed decisions about project continuation - Maintain the management-by-exception principle of PRINCE2 - Ensure proper governance when plans are no longer viable
How Exception Plans Work
The Exception Plan process typically follows these steps:
1. Forecasting an exception: The Project Manager identifies that tolerances are forecast to be exceeded
2. Escalation: The Project Manager notifies the Project Board via an Exception Report
3. Creation: At the Project Board's request, the Project Manager creates an Exception Plan
4. Approval: The Project Board reviews and approves the Exception Plan
5. Implementation: The Exception Plan replaces the current plan as the baseline
Exception Plans have the same format as the plan they are replacing (Stage Plan or Project Plan) but focus on the remaining work. They must include the reason for the exception and revised forecasts.
Key Characteristics of Exception Plans
- Created only when tolerances are forecast to be exceeded - Replace rather than modify the existing plan - Require Project Board approval - Follow the same structure as regular PRINCE2 plans - Cover remaining work from the point of exception to completion - Include justification for the exception
Exam Tips: Answering Questions on Exception Plans
1. Know when Exception Plans are needed: Understand that they are only required when tolerances are forecast to be exceeded, not for every change or issue.
2. Clarify the approval authority: Remember that Exception Plans must be approved by the Project Board, not the Project Manager.
3. Understand the relationship to tolerances: Be clear that Exception Plans relate to tolerance breaches, which can involve time, cost, quality, scope, risk, or benefits.
4. Differentiate from other plan types: Know how Exception Plans differ from Stage Plans, Project Plans, and Team Plans.
5. Connect with other processes: Understand how Exception Plans relate to the Controlling a Stage process and Managing Stage Boundaries process.
6. Remember the format: Exception Plans have the same format as the plan they replace.
7. Focus on remaining work: Exception Plans address remaining work, not what has already been completed.
8. Link to Exception Reports: Understand that Exception Reports often precede Exception Plans.
When answering exam questions, watch for scenario-based questions where you need to identify whether an Exception Plan is the appropriate response to a given situation. Pay attention to whether tolerances are being exceeded or if another response might be more appropriate.