One of your components within the portfolio has been struggling and has undertaken a lot of issues. A recent measurement has shown that its CPI is 0.4 and SPI is 0.3. What is the best course of action

Escalating directly to the Portfolio Steering Committee skips the component-level governance structure; the component governance board should conduct its review and act first before any escalation proceeds further up the hierarchy.

Immediate termination is a unilateral action that exceeds the portfolio manager's authority and bypasses the required governance decision-making processes that must precede such a significant action.

The portfolio manager's role is governance oversight and escalation, not direct management of component-level execution decisions. A CPI of 0.4 and SPI of 0.3 represent severe cost and schedule overruns that require a formal governance review - such as replanning, restructuring, or termination - which falls within the component governance board's decision-making authority.

Notifying the sponsor alone is insufficient given the severity of the performance data - a formal governance board review and decision is required, and the sponsor notification should accompany that process, not replace it.