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PRINCE2 2009 - Directing Projects with PRINCE2 part 44

Authorize a Stage or Exception Plan

Context – part 2

authorize a stage context 2 smallauthorize a stage context 2
Exceptions

Nevertheless, even in a well-managed project, it has to be accepted that project work is inherently risky and things will not always go to plan.
PRINCE2® accommodates this by including a simple process for managing ‘exceptions’.

An exception occurs when, for whatever reason, it is forecast that a stage is unlikely to be completed within agreed tolerances (see the diagram) or that the project overall will not complete within the tolerances approved by corporate or programme management.

In the course of their regular progress monitoring, Project Managers continually update forecasts for the cost and duration of a stage (and the project).
Potential exceptions are often identified as a result of this monitoring.
Other sources of exceptions may be problems or concerns, important change requests, off-specifications or a combination of increasing risks.

Moreover, an impending exception may become apparent to Project Board members before it is recognized by the Project Manager, e.g. as a result of board members’ wider awareness of the business environment surrounding the project.

Normally, the first step in the exception process is for the Project Manager to prepare an Exception Report outlining the nature of the exception, any options for responding to it and a recommendation.

The section covering ‘Give ad hoc direction’ describes the ways in which the Project Board can respond to an Exception Report (see ‘Exception Reports’ under ‘Respond to reports’ within the section covering ‘Give ad hoc direction’), one of which is to request an Exception Plan.

Project Board meetings

PRINCE2 does not mandate a particular level of formality for documentation or meetings.
However, granting an ‘approval to proceed’ is an important (‘go/no go’) decision that should be made collectively by the Project Board members - the Executive is ultimately accountable but the principle holds that all three interests (business, user and supplier) must be satisfied to achieve success.
In most circumstances, this implies a meeting of some sort.
Telephone or video conferences are valid options if it is difficult to convene physically.

Deciding whether and how to meet - and the level of formality - should be based on the amount of business risk the project involves.
Remember, also, that this is an opportunity to demonstrate commitment, both to the project management team and to the wider organization.

If some form of meeting is convened, Project Board members should attend with the Project Manager.
Administrative support may be supplied by someone from the Project Support function, and personnel with Project Assurance responsibilities may also attend.

Other personnel can be invited - whether to observe or to provide expert advice - but it is the Project Board members who make the decisions.
A suggested outline agenda is given in ‘Suggested Project Board agenda’ within the section covering ‘Authorize a Stage or Exception Plan’.

It is important that Project Board reviews focus on plans - reviewing progress in relation to plans and approving the implementation of plans.
PRINCE2 employs plans as notional contracts between the Project Board and the Project Manager.
Project Board meetings are not talking shops.
It can quickly be apparent when a project is beginning to run out of control - the Project Board meetings tend to turn into ‘issue reviews’, focusing on fire-fighting the latest problems.
If this persists, and the meetings lose the necessary focus on plans, the project is no longer using PRINCE2 - it is out of control.

The Project Board’s approach and decision making for stage boundaries (authorizing a Stage Plan) and exceptions (authorizing an Exception Plan) are remarkably similar, and the decisions themselves are essentially the same.

All references above are in Directing Successful Projects with PRINCE2 unless stated otherwise.

PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.

This product contains EVERYTHING in the publications:

Managing Successful Projects with PRINCE2 - 2005 edition
Managing successful Projects with PRINCE2 – 2009 edition
Directing Projects with PRINCE2.
plus:
The Complete Project Management package.

And much more besides - at a fantastic price.