Manage by exception    

No single project proceeds as planned. When no arrangements have been made about the handling of deviations from planning, the management of the project will become unworkable. In a PRINCE2 environment there will be three levels (Project Board, Project Manager, and the performers of the actual work) where authority on handling deviations will be determined. Authority to decide and act will be determined through:

  • Delegation between the various levels of management within the project. For each level the tolerance for deviation from the established plan will be determined. Tolerance for deviation can be established for each of the six parametersthat need to be controlled. For the parameter cost for instance it could be determined that the Project Manager can over- or underspend 10% without the need for escalation;
  • Establish a procedure for escalation that is activated as soon as one of the established tolerances is threatened;
  • A mechanism to assure that the project manager "plays by the rules" so the higher level of management in the project (the Project Board) can rest assured that the established procedures will be adhered to.
 
exception

"What, 1 euro over budget?!"

By using this form of management the call on the time of senior management is reduced considerably, while keeping them well positioned to govern the project.