Tolerances for Authority and Accountability

C.

The correct answer is C. Manage by exception.

PRINCE2 (Projects IN Controlled Environments) is a widely recognized project management methodology that defines a set of principles, themes, and processes to ensure successful project delivery. PRINCE2 is based on the principle of managing projects by stages, with each stage having defined objectives, deliverables, and tolerances.

Tolerances are the permissible deviations or variations from the planned objectives, such as time, cost, quality, and scope. They are used to establish limits of authority and accountability and provide a basis for monitoring and control. In PRINCE2, tolerances are set at each level of the project, including project, stage, and product levels.

The Manage by Exception principle is a key principle of PRINCE2 that defines the levels of management and control required for successful project delivery. It recognizes that senior management should only be involved in the project when it is necessary to make key decisions, and that most of the day-to-day management and control should be delegated to the project manager.

Manage by Exception works by establishing tolerances for each project objective, such as time, cost, quality, and scope. Tolerances are set at each level of the project, including project, stage, and product levels. When a deviation from the tolerance is detected, the project manager must escalate the issue to the next level of management for a decision.

By setting tolerances and delegating day-to-day management and control to the project manager, the Manage by Exception principle allows senior management to focus on strategic decision-making and ensures that the project stays on track within the defined tolerances.