In the context of PRINCE2 7 and the Directing a Project (DP) process, the activity 'Authorize Stage or Exception Plan' serves as a critical governance gate. It is the moment where the Project Board reviews the detailed plan for the immediate future to decide whether to commit resources to the next ā¦In the context of PRINCE2 7 and the Directing a Project (DP) process, the activity 'Authorize Stage or Exception Plan' serves as a critical governance gate. It is the moment where the Project Board reviews the detailed plan for the immediate future to decide whether to commit resources to the next phase of work. This activity enforces the principle of 'Manage by Stages' and ensures continued business justification.
This activity is triggered in two scenarios: at the end of a standard management stage (where a Next Stage Plan is presented) or when a stage has deviated beyond agreed tolerances (where an Exception Plan is presented to recover the situation).
During this activity, the Project Board must:
1. Validate the Plan: They review the submitted Stage or Exception Plan to ensure it is achievable, realistic, and covers all aspects of the project performance targets (Time, Cost, Quality, Scope, Benefits, and Sustainability).
2. Re-verify the Business Case: The Board checks if the project remains desirable, viable, and achievable based on the updated costs, timescales, and risks outlined in the new plan.
3. Review Risks: They assess the aggregated risk exposure for the upcoming stage to ensure it is within the organization's risk appetite.
4. Set Tolerances: The Board sets the specific monitoring limits for the Project Manager for the next stage.
If the Project Board is satisfied, they formally approve the plan, authorizing the Project Manager to proceed. If an Exception Plan is approved, it replaces the plan that was in exception and becomes the new baseline. This ensures that the project never proceeds without a clear, approved roadmap and executive endorsement.
PRINCE2 Practitioner v7 Guide: Authorize a Stage or Exception Plan
What is it? The activity Authorize a Stage or Exception Plan is a critical decision gate within the Directing a Project (DP) process. It serves as the bridge between the management level (Project Manager) and the direction level (Project Board). It is the specific point where the Project Board reviews the output of the Managing a Stage Boundary process to decide whether the project should proceed.
Why is it Important? This activity is the primary mechanism for the PRINCE2 principle Manage by Stages. It is crucial because: 1. Go/No-Go Decision: It prevents the project from continuing automatically without verifying that it is still desirable, viable, and achievable. 2. Resource Commitment: It allows the Project Board to commit resources one stage at a time, limiting financial risk. 3. Management by Exception: It creates a controlled environment where the Board sets tolerances for the incoming stage and allows the Project Manager to manage within those limits.
How it Works Triggered by the Project Manager submitting an End Stage Report and a plan for the next steps, the Project Board performs the following: 1. Review Past Performance: They examine the End Stage Report to verify the results of the stage just completed. 2. Review the Plan: They assess the Next Stage Plan (for routine progression) or an Exception Plan (if the project deviated beyond tolerance). 3. Validate Business Case: They review the updated Business Case and Benefits Management Approach to ensure the project is still worth doing. 4. Assess Risks: They review the aggregated risk exposure for the next stage. 5. Decision: They formally approve the plan (authorizing the PM to proceed), ask for revisions, or stop the project (premature closure).
How to Answer Questions on Authorize Stage or Exception Plan When answering Practitioner scenario questions: 1. Identify the Context: Is the scenario at the end of a stage, or has a major issue (Exception Report) forced a replan? If it is a replan, you are dealing with an Exception Plan. 2. Verify Roles: Ensure the Project Board is the body making the decision. The Project Manager prepares the plan; the Project Board authorizes it. 3. Check Documents: Look for the End Stage Report (backward-looking) and the Next Stage Plan (forward-looking). Both are required inputs.
Exam Tips: Answering Questions on Authorize Stage or Exception Plan Tip 1: Confusing Initiating with Directing. Do not confuse this with Authorize a Project. Authorize a Project happens only once (after the IP stage). Authorize a Stage happens repeatedly throughout the project lifecycle. Tip 2: The Exception Plan Nuance. Remember that if the Board authorizes an Exception Plan, this plan replaces the plan that was in use for the current stage. It becomes the new baseline. An Exception Plan is not an 'extra' plan; it is a replacement plan. Tip 3: Setting Tolerances. A key action here is setting Stage Tolerances. If a question asks who sets stage tolerances, it is the Project Board during this specific activity. Tip 4: The 'Stop' Option. In the exam, if the scenario implies the Business Case is ruined (e.g., the product is no longer needed or costs exceed benefits), the correct answer is often for the Project Board to reject the plan and instruct the PM to initiate premature closure, rather than trying to fix the plan.