Editing PRINCE2 (section)

===Seven aspects of project performance===

These aspects are also called '''tolerances''' or '''performance goals'''. Tolerances define the delegated levels of authority which are set by a higher level of management to a lower level. The management level responsible must manage within the tolerances provided only as long as they are not forecast to be exceeded. Otherwise they are deemed to be an exception which requires escalating to the management level which delegated them. This way of managing is known as 'management by exception' and is one of the principles of PRINCE2. By managing in this way, it saves the time of senior management. In some organisations tolerances can be [[Performance indicator|key performance indicators]] (KPIs). In the following table project level tolerances are summarised:<ref name="PRINCE2 handbook 2017 Edition">{{cite web |title=Managing Successful Projects with PRINCE2, 2017 Edition |url=https://www.axelos.com/store/book/managing-successful-projects-with-prince2-2017 |website=Axelos}}</ref>
{| class="wikitable"
|-
! Tolerance type !! Defined in management product !! Example
|-
| Scope || Project/stage plan, work package description || The printer must print documents in black/white, and should also print in colour. 
|-
| Timescale || Project/stage plan, work package description || The work must be delivered within 2-3 months.
|-
| Risk || Business case, stage plan, work package description || Printer might not work if it is exposed to water.
|-
| Quality || [[Product description|Project product description, product description]] || Printer should not suffer mechanical failure when printing between 2,000 and 10,000 pages. 
|-
| Benefits || [[Business case]], stage plan || Sales should enable a net profit of between £200,000 to £400,000. 
|-
| Cost || Project/stage plan, work package description || The cost of the project should be between £100,000 and £150,000.
|-
|Sustainability
|Business case, stage plan, work package description, product description
|Toner for the printer must be carbon neutral.
|}

{| class="wikitable"
|-
! Management level !! Delegated tolerance level !! Escalated issue/exception
|-
| Business layer || Project tolerance || {{N/A}}
|-
| Project board || Stage tolerance || Project exception
|-
| Project manager || Work package tolerance || Stage exception
|-
| Team manager || {{N/A}} || Issue
|}