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PGMP · Question #517

Company A recently signed a contract with a strategic business partner, Company B, to jointly roll out a new technology. Company B is excited about the joint marketing opportunity. Company A's compone

The correct answer is D. Advise Company B that funding and resources are not available.. When the program manager determines in the meeting that the requested enhancement requires additional funding that has not been approved, the immediate obligation is to communicate that reality to Company B. Securing funds from a cancelled project (A) requires authorization and i

Program Governance

Question

Company A recently signed a contract with a strategic business partner, Company B, to jointly roll out a new technology. Company B is excited about the joint marketing opportunity. Company A's component Quality Assurance team has expressed concerns to you, the program manager, that the product is being rolled out prematurely and has identified potential issues with backend support systems. QA, however, assures you that a manual work around is possible, but not ideal. Company B requests an enhancement to the new product. In a meeting with Company B, you determine that additional funding will be required and resources allocated and scheduled. What is your MOST appropriate next step?

Options

  • ASecure funding from another project that was cancelled.
  • BUse an integrated change control process.
  • CUse the available management reserve.
  • DAdvise Company B that funding and resources are not available.

How the community answered

(54 responses)
  • A
    9% (5)
  • B
    4% (2)
  • C
    17% (9)
  • D
    70% (38)

Explanation

When the program manager determines in the meeting that the requested enhancement requires additional funding that has not been approved, the immediate obligation is to communicate that reality to Company B. Securing funds from a cancelled project (A) requires authorization and is not unilateral. Management reserve (C) is designated for known risks within current scope, not new scope enhancements. Initiating change control (B) is premature when there is no identified funding source. Option D is correct because advising Company B that funding and resources are not currently available is the honest, transparent first step before any formal process can proceed-setting accurate expectations with the business partner.

Topics

#Change Management#Financial Management#Stakeholder Communication#Program Governance

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