management by exception (MBE)



Practice whereby only the information that indicates a significant deviation of actual results from the budgeted or planned results is brought to the management's notice. Its objective is to facilitate management's focus on really important tactical and strategic tasks. In MBE, the decision that cannot be made at one level of management is passed on to the next higher level.

Use this term in a sentence

  • My company operates by management by exception; as the CEO, I make all the decisions that the managers beneath me are unable to make.

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  • The company's management by exception policy insured was effective because it was time effective, it focused on those things which needed to be addressed because they were detrimental to the company and this practice kept the company focused.

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  • Since the business was run by a management by exception philosophy, only the mistakes were brought to the owner's attention.

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