Manage by Exception is a cornerstone of the PRINCE2 methodology, emphasizing effective delegation and control within project management. This principle seeks to empower project boards and managers by defining clear tolerances for time, cost, scope, quality, benefits, and risks. By establishing thes…Manage by Exception is a cornerstone of the PRINCE2 methodology, emphasizing effective delegation and control within project management. This principle seeks to empower project boards and managers by defining clear tolerances for time, cost, scope, quality, benefits, and risks. By establishing these boundaries, the team can operate autonomously within set parameters, focusing on delivering project objectives without constant oversight. This delegation not only enhances efficiency but also fosters accountability among team members, as they are responsible for managing their areas within the defined tolerances.
In the context of PRINCE2 7 Practitioner and the PRINCE2 Principles in Context, Manage by Exception aligns with the principle of 'Continued Business Justification.' By setting tolerances, the project ensures that any deviations that threaten the business case are escalated appropriately. This creates a structured framework for decision-making, where only significant issues that exceed tolerances require intervention from higher authority levels. It streamlines communication, reduces unnecessary reporting, and allows project managers to focus on delivering value rather than micromanaging every aspect of the project.
Moreover, Manage by Exception supports the principle of 'Defined Roles and Responsibilities' by clearly outlining what decisions can be made at different levels of the project hierarchy. This clarity prevents overlap of duties and ensures that each team member understands their scope of authority. It also enhances risk management by providing a mechanism to identify and address issues before they escalate, maintaining project stability and alignment with strategic objectives.
Overall, Manage by Exception in PRINCE2 promotes a balance between control and flexibility, enabling projects to adapt to changes while maintaining alignment with predetermined goals. It fosters a proactive management style, where potential problems are identified early, and corrective actions are taken promptly, ensuring the successful delivery of projects within the set tolerances.
Manage by Exception Principle in PRINCE2: A Comprehensive Guide
What is the Manage by Exception Principle?
The Manage by Exception principle is one of the seven fundamental principles in PRINCE2 methodology. It establishes a framework where project management layers have defined tolerances (time, cost, quality, scope, risk, and benefit) within which they can operate autonomously. Only when these tolerances are forecast to be exceeded does decision-making escalate to the next management layer.
Why is the Manage by Exception Principle Important?
This principle is crucial because it: - Enables efficient use of senior management time - Empowers team members with appropriate authority - Maintains control while minimizing micromanagement - Creates clear escalation paths when issues arise - Focuses management attention on areas truly needing intervention - Supports effective delegation throughout the project hierarchy
2. Delegation Mechanism The principle functions through a clear chain of delegation: - Corporate/Programme Management sets tolerances for the Project Board - Project Board sets tolerances for the Project Manager - Project Manager sets tolerances for Team Managers
3. Exception Reporting When a tolerance is forecast to be exceeded, an exception report is created and escalated to the next management tier for decision-making.
4. Exception Planning Following an exception, a recovery plan (Exception Plan) is typically created to address the issue.
Real-World Implementation Example
The Project Board approves a work package with a budget of £50,000 and a ±10% cost tolerance. The Project Manager can therefore manage costs between £45,000 and £55,000. If projections show costs will reach £56,000, the Project Manager must escalate this as an exception to the Project Board for a decision.
Exam Tips: Answering Questions on Manage by Exception
1. Recognize Key Terminology Look for terms like "tolerances," "escalation," "exception report," and "management layers" in questions about this principle.
2. Understand the Hierarchy Questions often test your understanding of which management level sets tolerances for which other level. Remember the chain: Corporate/Programme → Project Board → Project Manager → Team Manager.
3. Know the Six Tolerance Types Be prepared to identify all six types of tolerances (time, cost, quality, scope, risk, benefits) and give examples of each.
4. Connect to Other PRINCE2 Elements Be able to explain how Manage by Exception relates to: - The Organization theme (management levels) - Progress theme (monitoring and reporting) - Plans theme (creating baselines for measurement) - Business Case theme (benefit tolerances)
5. Practical Application Questions Expect scenario-based questions asking you to determine: - Whether an exception should be raised - Who should be notified of an exception - What actions follow an exception
6. Common Exam Traps Watch for questions that: - Confuse tolerances with specifications - Suggest micromanagement as a benefit - Imply all issues need senior management attention - Propose reporting routinely instead of by exception
Remember that Manage by Exception is about enabling decision-making at the right level while maintaining appropriate control through clearly defined parameters.