PGMP · Question #478
A company initiates a program to reorganize its sales and production departments. Three production departments are located at the three production plants next to the company's headquarters. Five…
The correct answer is B. Identify and quantify business benefits of the program. At the earliest stage of a program, the first step is to identify and quantify the business benefits that justify the program's existence before any planning or structuring begins.
Question
A company initiates a program to reorganize its sales and production departments. Three production departments are located at the three production plants next to the company's headquarters. Five regional sales departments are located at different locations around the world. At this stage of the program, what is the first step?
Options
- ADevelop a program work breakdown structure
- BIdentify and quantify business benefits of the program
- CDetermine and prioritize the various components of the program
- DPrepare a program organization chart covering both sales and production
How the community answered
(31 responses)- A6% (2)
- B81% (25)
- C10% (3)
- D3% (1)
Why each option
At the earliest stage of a program, the first step is to identify and quantify the business benefits that justify the program's existence before any planning or structuring begins.
Developing a program WBS is a planning activity that occurs after benefits and scope have been defined, not at the earliest program stage.
Identifying and quantifying business benefits is the foundational first step in program management because the program's entire justification, funding, and strategic alignment depend on defining what benefits it will deliver. All subsequent planning activities - including WBS development, component identification, and organizational structuring - are based on the benefits the program is designed to achieve.
Determining and prioritizing program components depends on first understanding the benefits the program must deliver.
Preparing an organizational chart is an administrative structuring activity that follows the definition of program goals and benefits.
Concept tested: Benefits identification as the first step in program initiation
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-program-management
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