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PGMP · Question #136

Josh is the program manager for his organization and he's leading the analysis for a new program that may be initiated by his company. The analysis is a focus on the return on investment for new…

The correct answer is A. Business case. A business case is the document that analyzes the justification for initiating a program, including the return on investment analysis Josh is conducting. It is created during the pre-program preparation phase to support the decision of whether to proceed.

Strategic Program Management

Question

Josh is the program manager for his organization and he's leading the analysis for a new program that may be initiated by his company. The analysis is a focus on the return on investment for new software that may be created if the program is initiated. What type of a document is Josh likely creating for his company?

Options

  • ABusiness case
  • BProgram charter
  • CProgram scope statement
  • DStatement of work

How the community answered

(40 responses)
  • A
    88% (35)
  • B
    8% (3)
  • C
    3% (1)
  • D
    3% (1)

Why each option

A business case is the document that analyzes the justification for initiating a program, including the return on investment analysis Josh is conducting. It is created during the pre-program preparation phase to support the decision of whether to proceed.

ABusiness caseCorrect

The business case documents the organizational need, expected benefits, feasibility, and return on investment for a proposed program, providing the financial and strategic justification that decision-makers use to approve or reject program initiation - directly matching the ROI analysis Josh is performing.

BProgram charter

The program charter formally authorizes an already-approved program and names the program manager; it does not contain the ROI analysis used to decide whether to initiate the program.

CProgram scope statement

The program scope statement defines the boundaries and major deliverables of a program that has already been approved; it is not an analytical document used to evaluate investment returns.

DStatement of work

A statement of work describes the work to be performed under a contract or agreement; it is not used to analyze return on investment for a potential program.

Concept tested: Business case and ROI analysis for program justification

Source: https://www.pmi.org/pmbok-guide-standards/foundational/program-management

Topics

#Program Initiation#Business Case#ROI Analysis#Program Justification

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