Exception Report in PRINCE2 Practitioner 7th Edition (Progress Practice)
What is an Exception Report?
An
Exception Report is a management product created by the Project Manager. It is an output of the 'Controlling a Stage' process (and sometimes 'Managing a Stage Boundary'). Its primary purpose is to inform the Project Board that a stage or the project is
forecast to exceed the agreed tolerances for Time, Cost, Quality, Scope, Benefits, or Risk.
Why is it Important?
The Exception Report is the engine of the
'Management by Exception' principle. It ensures that the Project Board is not bogged down in daily details but is immediately notified when the project faces a significant deviation that the Project Manager cannot resolve within their delegated authority. It shifts control from the Project Manager back to the Project Board.
How it Works
The process typically follows these steps:
1. Forecast: The Project Manager reviews progress or issues and determines that a tolerance level is predicted to be breached.
2. Create Report: The Project Manager drafts the Exception Report. Crucially, this is not just a notification of failure; it must analyze the
impact and present
options for the way forward.
3. Recommend: The report must include a recommended option for the Project Board to consider.
4. Decision: The Project Board reviews the report (often via an Exception Assessment) and instructs the Project Manager on the next steps (usually requesting an
Exception Plan to replace the current plan).
Exam Tips: Answering Questions on Exception Report
When answering Practitioner scenario questions regarding this document, keep these rules in mind:
1. Look for the 'Forecast':Exam questions often trick you with timing. An Exception Report is raised when a tolerance breach is
forecast, not necessarily after it has already happened. The goal is early warning.
2. Exception Report vs. Issue Report:This is a common source of confusion. If an issue (like a Request for Change) can be handled
within the existing stage tolerances, the Project Manager handles it using an
Issue Report. If the issue causes a tolerance breach, an
Exception Report is required to escalate it to the Board.
3. Focus on 'Options':If a question asks what information is missing from a draft Exception Report, look for
options. The Board cannot make a decision if the PM only states the problem without proposing solutions and their impacts.
4. The Connection to Exception Plans:Remember that the Exception Report describes the
situation; the Exception Plan describes the
recovery actions. The Report is the request; the Plan is the detailed proposal produced
after the Board reviews the Report.