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PMP · Question #1087

During a project status update by the project management office (PMO), the CEO is concerned that the status of all projects suddenly changed from green lo red, without warning. Upper management is…

The correct answer is C. Explore reporting the earned value (EV) key performance indicators (KPIs) using agile progress. To provide better project health reporting that offers early warnings and combines traditional cost/progress information with agile insights, the PMO should explore reporting Earned Value (EV) KPIs using agile progress metrics.

Submitted by ravi_2018· Apr 18, 2026Process

Question

During a project status update by the project management office (PMO), the CEO is concerned that the status of all projects suddenly changed from green lo red, without warning. Upper management is used to reading traditional reports related to progress and cost, and they want to continue viewing this information. How should the PMO implement a better way to report the project's health?

Options

  • ARequest the program managers to be more accurate when presenting status reports.
  • BAsk the project managers to report on their projects using a Kanban board format.
  • CExplore reporting the earned value (EV) key performance indicators (KPIs) using agile progress
  • DPerform a root cause analysis (RCA) to find out why the status of projects is deteriorating so fast.

How the community answered

(16 responses)
  • A
    6% (1)
  • B
    13% (2)
  • C
    75% (12)
  • D
    6% (1)

Why each option

To provide better project health reporting that offers early warnings and combines traditional cost/progress information with agile insights, the PMO should explore reporting Earned Value (EV) KPIs using agile progress metrics.

ARequest the program managers to be more accurate when presenting status reports.

Requesting program managers to be 'more accurate' does not address the systemic issue of the reporting methodology's inability to provide early warnings or the type of information upper management desires.

BAsk the project managers to report on their projects using a Kanban board format.

Asking project managers to report using a Kanban board might be too granular for CEO-level reporting and does not inherently provide the traditional cost and aggregated progress information that upper management is accustomed to.

CExplore reporting the earned value (EV) key performance indicators (KPIs) using agile progressCorrect

Integrating Earned Value Management (EVM) Key Performance Indicators (KPIs) with agile progress reporting offers objective, quantitative data on project performance, fulfilling upper management's desire for traditional cost and progress information while providing continuous, dynamic updates that can alert to issues earlier than static status reports.

DPerform a root cause analysis (RCA) to find out why the status of projects is deteriorating so fast.

Performing a root cause analysis addresses why projects are deteriorating, which is distinct from the immediate need to implement a better, more predictive *reporting method* for project health.

Concept tested: Project performance reporting, Earned Value Management

Source: https://learn.microsoft.com/en-us/azure/devops/report/sql-reports/create-earned-value-report?view=azure-devops

Topics

#Earned Value Management (EVM)#Project performance reporting#Agile metrics#Stakeholder communication

Community Discussion

6
Bao N.Bao N.May 12, 2026

C is the answer here. The stem is basically describing the gap between what executives want, which is traditional cost and progress data, and an agile environment where status can shift fast, so reporting earned value KPIs using agile progress bridges that gap directly. D is the trap because an RCA sounds responsible but it misses the point that the real issue is the reporting format, not necessarily that the projects are actually falling apart.

17
Mateus R.Mateus R.May 15, 2026

Spot on, Bao, and the way I remember it is: executives want a fuel gauge that reads in dollars, agile gives you a trip planner that keeps rerouting, so earned value KPIs are the adapter plug that lets the old dashboard read the new engine.

0
Mateus R.Mateus R.May 8, 2026

Think of it like a car dashboard where the engine light suddenly goes from fine to flashing red with no gauges in between, so you need gauges that translate continuous movement into numbers management already trusts. C bridges that gap by feeding earned value KPIs into an agile progress view so there are no surprise jumps from green to red. One thing I am still fuzzy on: how do you actually reconcile traditional EV math like CPI and SPI with story points or velocity when the underlying work is being delivered in sprints?

3
Orla P.Orla P.May 11, 2026

Good point on C bridging the gap, but in practice you reconcile EV with agile by mapping story points to a planned value baseline at the sprint level so CPI and SPI are computed against completed points, not hours, which is what makes the KPIs actually meaningful to management without forcing a fake waterfall overlay onto the team.

0
Orla P.Orla P.May 4, 2026

I first leaned toward D because a sudden shift from green to red across all projects feels like something went wrong and you'd want to investigate. But the real issue here is the reporting mechanism, not the project performance itself. Upper management is used to traditional cost and progress metrics like earned value, and the PMO needs to bridge that gap by presenting EV KPIs alongside agile progress indicators so leadership gets the familiar numbers they want with more timely updates. That is why C is the right call.

-1
Bao N.Bao N.May 4, 2026

C is correct but the real trap is that B also mentions reporting, so people grab it before noticing C specifically addresses the EV-to-agile translation layer.

0
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