PMP · Question #880
A bank has decided to initiate a project to transition from serving small businesses and entrepreneurs to mid- and large-scale businesses. The country's economy is struggling, and some stakeholders ca
The correct answer is A. Escalate the issue to the sponsor and ask for stakeholder engagement.. When facing stakeholder disagreement on a major strategic transformation due to external factors like a struggling economy, the project manager should escalate the issue to the project sponsor for guidance and intervention. The sponsor has the authority to resolve such high-level
Question
A bank has decided to initiate a project to transition from serving small businesses and entrepreneurs to mid- and large-scale businesses. The country's economy is struggling, and some stakeholders cannot agree on this transformation need. What should the project manager do?
Options
- AEscalate the issue to the sponsor and ask for stakeholder engagement.
- BReview the project business case and update it periodically.
- CImplement a communications management plan.
- DPlan for strategic program management.
How the community answered
(52 responses)- A62% (32)
- B21% (11)
- C6% (3)
- D12% (6)
Why each option
When facing stakeholder disagreement on a major strategic transformation due to external factors like a struggling economy, the project manager should escalate the issue to the project sponsor for guidance and intervention. The sponsor has the authority to resolve such high-level strategic conflicts and ensure alignment.
When there is significant disagreement among stakeholders regarding the fundamental strategic direction or need for a project (especially one of this scale, like a business model transformation), and this disagreement is influenced by external factors like the economy, the project manager's most effective action is to escalate the issue to the project sponsor. The sponsor has the authority and responsibility to resolve high-level strategic conflicts, realign stakeholders, or decide on the project's future course. This ensures executive-level guidance and reinforcement of the project's mandate.
Reviewing and updating the business case might be a subsequent step, but it won't resolve the fundamental disagreement among stakeholders about the *need* for the transformation.
Implementing a communications management plan is for ongoing information sharing; it does not resolve fundamental disagreements on strategic direction.
Planning for strategic program management is a broader organizational activity, not an immediate action for a project manager to resolve stakeholder disagreement on a current project's core purpose.
Concept tested: Stakeholder conflict resolution and sponsor escalation
Topics
Community Discussion
6
Wesley A.Nov 7, 2025Confirmed A on exam last week. When stakeholders disagree on the transformation need itself, that is a fundamental conflict that needs to be escalated to the sponsor, not something a comms plan or business case review can resolve. I almost picked C the first time around because it sounds proactive, but you cannot communicate your way out of stakeholders questioning whether the project should even exist.
Nina C.Nov 9, 2025That distinction clicked for me, but quick question: does the sponsor escalation happen before or after the business case is formally approved, since I would think the business case is where that fundamental disagreement would surface in the first place?
Dervla O.Nov 19, 2025Agree with A. When stakeholders disagree on the fundamental need for the project, that is a conflict the PM cannot resolve alone, so escalating to the sponsor is the right move. The sponsor authored the business case and owns the strategic decision, making them the proper authority to drive stakeholder alignment.
Nina C.Oct 26, 2025I first leaned toward B but stakeholders disagreeing on the need itself means escalate to sponsor.
Grace U.Nov 17, 2025Picking C. If stakeholders cant agree, communications plan is the right move.
Nina C.Nov 17, 2025Just to double check, are you thinking of the stakeholder engagement plan rather than the communications plan? The engagement plan is where you document strategies for dealing with conflicting expectations and getting stakeholders aligned, which is why A is the correct answer here, not C.