Which of the following refers to use of the 'management by exception' technique?

Question

Options

• AProviding a Dashboard Report with a transparent chain from strategic intent to benefits realization
• BSpecifying points at which reviews of initiatives are linked to funding release
• CReporting via the documented route and schedule
• DReferring variances from plan that exceed control limits to the portfolio governance body

• A
  94% (66)
• B
  1% (1)
• C
  1% (1)
• D
  3% (2)

Explanation

Important note: The stated correct answer (A) appears to be incorrect. Based on the standard definition used across portfolio and programme management frameworks (MoP, PRINCE2, MSP), D is the correct answer.

Management by exception means only escalating matters to a higher authority when variances exceed predefined tolerance or control limits - otherwise, management is handled at the delegated level without interruption. Option D describes this precisely: variances beyond control limits are referred to the portfolio governance body, which is the textbook definition.

Why the distractors are wrong:

• A (Dashboard with strategic-to-benefits chain) describes benefits realization tracking and strategic transparency - a reporting tool, not an exception-based escalation mechanism.
• B (Reviews linked to funding release) describes stage-gate or decision-point governance, not exception-based management.
• C (Reporting via documented route and schedule) describes routine scheduled reporting, the opposite of exception-based intervention.

Memory tip: Think of "management by exception" as a smoke alarm - it only triggers when something crosses a threshold. If you're reporting on a schedule regardless of performance (C) or showing a strategic chain (A), that's not an exception trigger. The alarm (escalation to governance) only sounds when the variance exceeds the limit - that's D.

You may want to verify the source of this question, as the listed answer key appears to contain an error.

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