PFMP · Question #656
Assume you are the corporate portfolio manager for your global organization. There is one portfolio at the corporate level, but other portfolios supporting business units and core areas of the…
The correct answer is B. Extensive training will be needed after the program is complete, and an infrastructure does not. For a high-priority ERP implementation, the key portfolio-level concern being reported is that extensive post-implementation training is needed and the required infrastructure does not yet exist.
Question
Assume you are the corporate portfolio manager for your global organization. There is one portfolio at the corporate level, but other portfolios supporting business units and core areas of the company. One of these portfolios involves manufacturing, and its number one program in terms of priorities is to implement an enterprise resource planning system. Since it is the number one ranked program in this portfolio, it is of interest at the corporate level, and you and your team provide reports on its progress monthly. You can see that:
Options
- ASince earned value is being used, at this point you report the ERP system will not meet its cost
- BExtensive training will be needed after the program is complete, and an infrastructure does not
- CUse of the ERP vendor has been underestimated, and a business case will be needed for
- DInadequate, up-front financial planning was done when the business case was approved
How the community answered
(35 responses)- A3% (1)
- B74% (26)
- C9% (3)
- D14% (5)
Why each option
For a high-priority ERP implementation, the key portfolio-level concern being reported is that extensive post-implementation training is needed and the required infrastructure does not yet exist.
The question does not provide earned value data showing a cost overrun; this answer introduces a specific conclusion not supported by the scenario.
ERP implementations are well-known for requiring substantial organizational change management, including end-user training and supporting infrastructure such as hardware, network capacity, and support processes. Identifying that these are not in place at the program level is a critical risk and issue that warrants escalation to corporate portfolio management. Reporting this at the corporate level ensures resources and decisions can be directed before the gap becomes a program failure.
Underestimating vendor usage requiring a new business case is a plausible issue but is not the scenario described or implied by the question.
Inadequate up-front financial planning is a retrospective finding and does not represent a forward-looking portfolio management action item at the reporting stage.
Concept tested: Portfolio reporting on ERP program risks and infrastructure gaps
Source: https://www.pmi.org/pmbok-guide-standards/foundational/portfolio-management
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