Managing by exception is one of the most efficient ways to run a business. It is, in its most basic form, a method of management where you only deal with situations that aren’t defined as “normal”. Businesses all over the world use this method of management to be less proactive about how they are run. If you have a company in which it makes more sense, financially, to have reactive management, this is for you. You gain a host of advantages when managing by exception. These include the ability to improve employee performance and that of your business. Here are some of the major ways in which MBE helps improve performance throughout your company.