A project manager should not need permission for every routine adjustment. Equally, a project board should not discover a serious deviation only after it has happened. Managing by exception helps define the boundary between delegated work and decisions that need escalation.

Agree the limits of authority

PRINCE2 uses tolerances to support delegation. These need to be clear enough for the person receiving authority to understand what they can manage and when they must escalate. Relevant performance aspects include time, cost, quality, scope, benefits, risk and sustainability.

A tolerance is not a general invitation to use all available margin. It is a limit within which management can operate. The team should still aim to deliver the agreed plan and monitor the effect of its decisions.

Escalate a forecast, not just a missed target

If evidence indicates that an agreed tolerance will be exceeded, raise the exception through the appropriate route. Waiting for the breach to occur removes options and gives decision-makers less time to act.

For example, a fictional project manager may learn that a required component will arrive late enough to threaten the stage’s agreed time tolerance. That forecast matters even if today’s progress report still looks acceptable.

Give decision-makers usable information

Explain the cause, expected consequences and practical options. State which decision is required and by when. Avoid burying the exception inside a long report of routine activity.

Delegation also depends on trust and capability. Check that people have the information and resources needed to use their authority responsibly. Managing by exception works when expectations are explicit and escalation is treated as responsible management rather than as an admission of failure.