The principle of 'Manage by Exception' essentially translates as 'when you delegate authority to someone, be very clear on the limits of that authority'. In PRINCE2, limits of authority are set by means of 'tolerances' (on time, cost, risk and so on). Predictions by managers that they will exceed their tolerance are flagged up as an 'exception', of Management by Exception fame. Exceptions trigger pre-programmed PRINCE2 responses in the project management team or in corporate or programme management, dependent on where in the fchain of command the exception occurs.
This is a great idea, which should be welcomed by every manager in the project management team.
