ABC Company's corporate management has decided that the Health and Safety Training Project must achieve within -2% or +10% of the predicted sales defined in the business case for the training course.
Is this an appropriate application of the 'manage by exception' principle, and why?
It is appropriate for corporate management to set overall project tolerances, which is an application of the 'manage by exception' principle. This principle allows higher management to set limits within which the project should be managed. If the project stays within these tolerance limits, it is considered to be within acceptable bounds, enabling efficient governance without constant intervention from senior management. The tolerances defined in the question (-2% or +10% of predicted sales) reflect this approach.
. Yes, because it is appropriate for corporate management to set overall project tolerances