In the context of PRINCE2 7, an Exception Plan is a specific type of plan used to recover from a situation where agreed tolerances are forecast to be exceeded. It is essentially a revised plan that replaces a Stage Plan (or occasionally a Project Plan) that is no longer viable. When a Project Manag…In the context of PRINCE2 7, an Exception Plan is a specific type of plan used to recover from a situation where agreed tolerances are forecast to be exceeded. It is essentially a revised plan that replaces a Stage Plan (or occasionally a Project Plan) that is no longer viable. When a Project Manager forecasts that a stage will breach its tolerances for time, cost, quality, scope, benefits, or sustainability, they must escalate the issue to the Project Board via an Exception Report. If the Board wishes the project to proceed, they will request an Exception Plan.
Structurally, an Exception Plan follows the same format and level of detail as the plan it replaces. It includes prerequisites, external dependencies, planning assumptions, schedules, and budgets. However, its specific purpose is to show the actions required to recover from the exception and complete the work of the stage (or project) effectively. It covers the period from the point where the current plan is abandoned to the end of the stage.
Crucially, the Exception Plan is not an add-on; it is a replacement. Once the Project Board approves it during an Exception Assessment, the Exception Plan becomes the new baselined plan. The original Stage Plan is no longer used for measuring progress. This mechanism ensures that the project remains under control even when significant issues arise. It allows the Project Board to reassess the project's viability (business case) in light of the new data and costs required to fix the issue, ensuring that resources are not wasted on a project that can no longer deliver its intended value.
Exception Plan - Prince2 Practitioner v7
What is an Exception Plan? In Prince2 v7, an Exception Plan is a plan tailored to recover from a deviation in tolerances. It is created only when a Stage Plan or the Project Plan is no longer viable because agreed limits (tolerances) regarding time, cost, quality, scope, benefits, or risk are forecast to be breached. It effectively replaces the plan that is no longer valid.
Why is it Important? This artifact is crucial for the principle of Manage by Exception. It ensures that the Project Manager does not simply continue working blindly when the project parameters have shifted significantly. It forces a pause and a re-authorization by the Project Board, ensuring that the project remains desirable, viable, and achievable under the new circumstances before resources are committed further.
How it Works The lifecycle of an Exception Plan follows this logic: 1. Forecast: The Project Manager forecasts that a tolerance is going to be breached (an Exception). 2. Report: The PM submits an Exception Report to the Project Board explaining the situation and offering options. 3. Request: If the Project Board decides the project or stage should continue, they formally request an Exception Plan. 4. Creation: The PM creates the Exception Plan to replace the current faulty plan. This activity usually takes place within the Managing a Stage Boundary process. 5. Approval: The Project Board reviews and authorizes the Exception Plan during the Directing a Project process. 6. Baseline: Once approved, this becomes the new baselined plan for the remainder of the stage (or project).
Exam Tips: Answering Questions on Exception Plan To succeed in the Practitioner exam, apply these concepts to the scenario:
1. Identify the Trigger: Look for keywords like 'forecast to exceed' or 'tolerance breach.' If the scenario states the Project Manager is just fixing a small issue within tolerance, an Exception Plan is not required. 2. It Replaces, Not Adds: Remember that an Exception Plan replaces the current plan. It is not a supplementary document; it becomes the new working plan. 3. Level of Detail: A common trap is to think an Exception Plan is a high-level summary. It must contain the same level of detail as the plan it replaces. If it replaces a Stage Plan, it must have the detailed product descriptions and schedule of a Stage Plan. 4. Authority: Always check who is making the decision. The Project Manager creates the plan, but the Project Board must authorize it. If Project Tolerances are breached, the Board must seek approval from Corporate/Programme management. 5. Distinction: Distinguish clearly between the Exception Report (the alarm bell and options) and the Exception Plan (the agreed route forward).