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PMP · Question #1063

A project is in the middle of the fifth iteration. Due to a sudden slump in the economy, the company recorded a drastic reduction in revenue. The strategic direction was to Implement cost- reduction…

The correct answer is D. Schedule a meeting with the product owner, discuss priorities and decide if anything from the. Given a sudden need for immediate cost-reduction in an agile project, the project manager should meet with the product owner to re-evaluate and adjust current sprint priorities.

Submitted by noor.lb· Apr 18, 2026Business Environment

Question

A project is in the middle of the fifth iteration. Due to a sudden slump in the economy, the company recorded a drastic reduction in revenue. The strategic direction was to Implement cost- reduction measures immediately. What should the project manager do next?

Options

  • AContinue the current sprint without interruption and address priorities in the upcoming product
  • BMeet with the sponsor for guidance on the best path forward before executing sprints.
  • CAllow the project team to decide on the best path forward for the current sprint.
  • DSchedule a meeting with the product owner, discuss priorities and decide if anything from the

How the community answered

(21 responses)
  • A
    5% (1)
  • B
    5% (1)
  • C
    10% (2)
  • D
    81% (17)

Why each option

Given a sudden need for immediate cost-reduction in an agile project, the project manager should meet with the product owner to re-evaluate and adjust current sprint priorities.

AContinue the current sprint without interruption and address priorities in the upcoming product

Continuing the current sprint without interruption despite a critical strategic change like immediate cost-reduction demonstrates a lack of agility and responsiveness to business needs.

BMeet with the sponsor for guidance on the best path forward before executing sprints.

While sponsor guidance is important for strategic alignment, the immediate tactical action in an agile project for priority adjustment typically involves the product owner, who manages the product backlog and sprint content.

CAllow the project team to decide on the best path forward for the current sprint.

Allowing the project team to unilaterally decide on the best path forward for the current sprint, especially with significant external strategic pressure, bypasses the product owner's role in value optimization and could lead to misalignment.

DSchedule a meeting with the product owner, discuss priorities and decide if anything from theCorrect

When a company-wide strategic change like immediate cost-reduction impacts a project mid-iteration, the project manager must immediately engage the product owner. The product owner is responsible for managing the product backlog and sprint content, enabling them to reassess current sprint priorities, potentially reprioritizing or removing items to align with the new strategic directive for cost reduction.

Concept tested: Agile sprint reprioritization due to strategic change

Source: https://www.scrum.org/resources/what-is-scrum

Topics

#Agile Principles#Change Management#Product Owner Role#Strategic Alignment

Community Discussion

4
Viktor S.Viktor S.Apr 16, 2026

D is correct. In an agile project the product owner owns priority and the backlog, so when strategic direction shifts mid-sprint you go straight to the PO to reassess what still matters. You do not let the team self-organize around a business decision, and you do not freeze the sprint and pretend nothing happened. Meet with the PO, replan priorities, and figure out whether the current sprint goal still makes sense or needs to change.

14
Orla P.Orla P.Apr 18, 2026

Agreed on D, and to add the logistics angle: if the PO decides the sprint goal is dead, know that most online proctors will not pause your timer while you flag and revisit those backlog scenario questions, so bank your time early on the straightforward items before you hit these longer stakeholder-realignment stems.

0
Olusegun A.Olusegun A.Apr 28, 2026

D. Product owner owns priorities when business value shifts mid-sprint. Does the PO have authority to cancel or just reprioritize items?

0
Orla P.Orla P.May 8, 2026

D on exam. B is tempting but the PO owns priorities, not the sponsor.

-2
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