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What is Management By Exception?

 , updated on December 17, 2016
Management by exception is a technique that involves automating core processes and empowering teams to handle expected business conditions. Managers step in to handle exceptions such as errors, performance issues and unusual circumstances.
Management by exception is based on the observation that most core businesses processes can be automated or handled by well trained employees. It's also founded on the experience that it isn't economical or advisable to automate every possible business scenario, that human intervention by someone with authority to solve problems is often the best solution in exceptional circumstances.
Overview: Management by Exception
Function
Management strategy
Value
Customer Service
Employee Engagement
Performance Management
Financial Management
Operations
Common Pitfalls
At its best, Management by Exception is a way of empowering employees to handle most situations. At its worst, it becomes a system of bottlenecks where managers are required to handle everyday exceptions.
Management by Exception can become an excuse to become reactive to problems.
Mature processes and training capabilities are required to implement Management by Exception. As a rule of thumb, at least 90% of situations typically flow without manager intervention.

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