PMI SH - Plan and Manage Project Compliance

During the execution phase of a project, a new director joined the management team and introduced a mandatory compliance requirement impacting all project tasks. 

What should the project manager do first?

• Notify the team of the new requirement and proceed with the project as planned.

• Update the project schedule and budget to reflect the demands of the new requirement.

• Review the new requirement and assess the impact on project tasks and deliverables.

• Update the risk register to reflect the potential risks associated with the new requirement.

Answer explanation

Solution: C. Review the new requirement and assess the impact on project tasks and deliverables.

The project manager should first review the new compliance requirement and assess its impact on project tasks and deliverables. This will help the project manager understand the changes that need to be made to ensure compliance and make effective decisions and plans. 

The other options are incorrect.

It is important to evaluate the impact before making any decisions or updates to the project schedule, budget, or risk register. Proceeding with the project without a thorough evaluation could lead to negative consequences and project failure.

A project manager recently completed a project in which they resolved numerous sub-standard deliverables rejected by the customer. The project manager noticed that when thirty (30) prioritized defects of the one hundred (100) total identified for the project were resolved, this resulted in the customer satisfaction feedback increasing to 100% and all deliverables being accepted.

Which principle does this occurrence demonstrate?

• Pareto

• Monte Carlo

• Kaizen

• Voice of customer

Answer explanation

Solution: A. Pareto

The Pareto principle, also known as the 80/20 rule, suggests that roughly 80% of the effects come from 20% of the causes. In this case, resolving 30 prioritized defects out of the total 100 defects resulted in a significant improvement in customer satisfaction and acceptance of all deliverables. This aligns with the idea that addressing a subset of critical issues can have a significant impact on overall project success. The Pareto principle emphasizes focusing efforts on the vital few factors that contribute the most significant results.

The other answers are incorrect. In the given scenario, the focus is on resolving defects and improving customer satisfaction, which is not directly related to Monte Carlo analysis. While resolving defects and improving customer satisfaction align with the objective of continuous improvement, the specific occurrence described in the scenario does not directly relate to Kaizen. While the occurrence in the scenario involves customer satisfaction feedback, it does not specifically address the systematic collection and analysis of customer input as a guiding principle.

A project manager working in a matrix organization is managing a project that is scheduled to be completed in one month. At today's project meeting, the project manager was informed that errors encountered in the software code are steadily increasing. During discussions with the development team lead, the project manager is told that this is normal when trying to stay on schedule. The development team is pressing to move on so a deadline is not missed, but the project manager is concerned.

What should the project manager do?

• Update the work breakdown structure (WBS) and extend the durations in the project schedule to allow more development time.

• Direct the team to continue development to avoid missing the deadline, noting that the risk has been mitigated.

• Examine the quality metrics to determine if the project is complying with the documented quality requirements.

• Submit a change request through the change control process to extend the deadline, allowing more time for development.

Answer explanation

Solution: C. Examine the quality metrics to determine if the project is complying with the documented quality requirements.

Examine the quality: A Quality metric describes a project or product attribute & how the Control Quality process will verify compliance. The PM checks the metrics to see if the increase in, or the number of errors, is out of compliance. Until the check is done, it is not known if the increase is out compliance.

The other answer choices are incorrect.

Continue development: The project manager may press the team to continue, but until the quality metric is checked, it may result in non-compliance.

Update the WBS: The WBS would only be changed if there was to be a change in scope and there is no indication of that being the case. The schedule would have to be changed if there was an indication that additional time is needed and only after the change is approved

Submit change request: The project manager should not submit a change request until there is something to change. At this stage there is no indication that additional time is needed to warrant such a request.

While planning a global solution delivery in a multinational organization, the project manager and team drafted all work items and defined the priorities and methodologies for implementation. During one of the daily meetings, a team member expresses concern about the compliance of the technology being used and proposes an alternative that is more aligned with the data privacy policies of the country.

What should the project manager do first?

• Ask the architecture owner to assess the team member's proposal and evaluate the compliance concerns.

• Assess the validity of the concern and evaluate the compliance of the current and newly proposed technology.

• Meet with the customer and ask if they would be comfortable implementing the newly proposed technology.

• Get support from the information technology (IT) department regarding the feasibility of the new technology.

Answer explanation

Solution: B.  Assess the validity of the concern and evaluate the compliance of the current and proposed technology.
The project manager should assess the validity of the team member's concern and evaluate the compliance of the current and proposed technology with the data privacy policies of the country. This will ensure that the project is aligned with the organization's goals and objectives and that compliance is maintained. Understanding the validity of the concern and compliance implications allows the project manager to make well-informed decisions and properly determine and plan the appropriate next steps.
The other options are incorrect.
Involving the architecture owner may be necessary after the initial assessment and evaluation, but shifts responsibility to the architecture owner. 
Asking if the customer is comfortable implementing the newly proposed technology is premature.
Involving the IT department focuses solely on technical feasibility, overlooking legal or data privacy compliance.

A company initiated a project to build a new hydropower plant. Analysis was performed to determine regulatory, safety, and security compliance requirements. After the analysis, it was apparent that some elements necessary to achieve compliance may be difficult and expensive to implement. Stakeholders are concerned about the added cost and complexity and have differing opinions on the importance of compliance and its potential implications. 

What should the project manager do?

• Meet with the stakeholders and emphasize the importance of compliance and the costs of non-compliance.

• Review the stakeholder register and determine which stakeholders have the highest authority and influence.

• Escalate the compliance concerns and the disparity between stakeholder opinions to the project sponsor.

• Identify compliance requirements that can be excluded in order to align with stakeholder expectations.

Answer explanation

Solution: A. Meet with the stakeholders and emphasize the importance of compliance and the costs of non-compliance.

Stakeholders must understand the importance of compliance and the risks of non-compliance. Compliance is important because it ensures that an organization is following laws, regulations, and standards that are relevant to its operations. Compliance helps organizations avoid penalties and fines, and maintain their reputation and credibility. Failure to comply with requirements can result in legal and financial consequences and damage to the organization's reputation. Compliance also helps organizations operate more efficiently and effectively by identifying and mitigating risks, improving processes and procedures, and promoting ethical behavior. 

The other options are incorrect.

Stakeholder authority and influence are important but do not directly address the issue of differing opinions and the implications associated with compliance.

Escalating concerns to the sponsor should only be considered if a sufficient understanding of compliance and stakeholder alignment cannot be achieved.

Excluding compliance requirements is unacceptable, and compliance should never be overlooked or ignored.

A project manager for a building project has been informed that a required permit from the local government has not yet been obtained. Applying for the permit will delay project delivery by 21 days at a cost of US$40,000. The fine for not having the permit in place is US$1,900 a day.

What should the project manager do?

• Apply for the permit and delay project delivery by 21 days.

• Ignore the permit requirement and continue with the project.

• Attempt to negotiate with the local government for a pardon.

• Allocate the fine amount as an additional project expense.

Answer explanation

Solution: A. Apply for the permit and delay project delivery by 21 days.

Obtaining the required permit is essential to comply with local regulations and avoid potential legal issues and fines. While it will delay the project, it is the responsible and ethical course of action, as it ensures legal compliance and minimizes the risk of costly fines in the long run.

The other options are incorrect because are not appropriate in this scenario.

Ignoring the permit requirements is incorrect because it is not a responsible or ethical decision for a project manager. The project manager could be fined heavily and have the project shut down. There could also be substantial legal ramifications.

Attempting to negotiate with the local government is incorrect because it may not be feasible. It's unclear whether the local government would grant a pardon, and pursuing this option might waste valuable time. 

Allocating the fine amount as an additional project expense suggests budgeting for fines, which is neither ethical nor cost-effective. The fines could add up to a significant amount of money, and the project manager would still have to deal with the risk of being fined and having the project shut down.

During a project's initiation phase, the project manager reviews the business case and finds that information is incomplete. What should the project manager do?

• Add an information gap to the risk register.

• Review the project statement of work (SOW) to create the project charter.

• Revise the business case to narrow the project scope and create the project charter.

• Review the business case with the sponsoring organization to confirm that the project aligns with business needs.

Answer explanation

Solution: D. Review the business case with the sponsoring organization to confirm that the project aligns with business needs

PMBoK Sixth Edition Chapter 2 states: "INITIATING PROCESS GROUP

The Initiating Process Group consists of those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase. The purpose of the Initiating Process Group is to align the stakeholders’ expectations and the project purpose, inform stakeholders of the scope and objectives, and discuss how their participation in the project and its associated phases can help to ensure their expectations are met. Within the Initiating processes, the initial scope is defined and initial financial resources are committed. Stakeholders who will interact and influence the overall outcome of the project are identified. If not already assigned, the project manager is appointed. This information is captured in the project charter and stakeholder register. When the project charter is approved, the project is officially authorized, and the project manager is authorized to apply organizational resources to project activities.

The key benefits of this Process Group are that only projects that are aligned with the organization's strategic objectives are authorized and that the business case, benefits, and stakeholders are considered from the start of the project. In some organizations, the project manager is involved in developing the business case and defining the benefits. In those organizations, the project manager generally helps write the project charter; in other organizations, the pre-project work is done by the project sponsor, project management office (PMO), portfolio steering committee, or other stakeholder group. This standard assumes the project has been approved by the sponsor or other governing body and they have reviewed the business documents prior to authorizing the project.

Business documents are documents that are generally originated outside of the project, but are used as input to the project. Examples of business documents include the business case, and benefits management plan"

Project Manager finds incomplete information reviewing the Business Case during the Initiation Phase, therefore, the correct response and /or correct answer is: Review the business case with the sponsoring organization so that the project aligns with the business case

The Distractors are valid and accepted

A company in a heavily regulated industry is planning to release a new product not previously available in the market. The CEO has asked the project manager to propose a way to ensure that competitors in the industry do not enter the market of this product before this company.

Which project delivery approach should the project manager use?

• Use a predictive approach as the company has previous experience with it.

• Include adequate resources in the budget to fast track the project.

• Implement iterations early in the product development processes, and schedule predictive tasks to be performed just before the rollout phase.

• Request an agile coach be included on the agile team to increase the speed of the releases.

Answer explanation

Solution: C. Implement iterations early in the product development processes, and schedule predictive tasks to be performed just before the rollout phase.

This approach will allow the company to get the product to market quickly, while still ensuring that it meets all regulatory requirements. By using iterations, the company can get feedback from stakeholders early and often, which will help to identify and address any problems before they become major issues. By implementing iterations early in the product development process, the company can get the product to market quickly, while still ensuring that it meets all regulatory requirements. This is the best way to ensure that the company is first to market with this new product.

The other answer choices are incorrect. Using a predictive approach is not the best way to ensure that the company gets to market first. Including adequate resources in the budget to fast-track the project is not a guarantee that the company will be first to market. Requesting an agile coach be included on the agile team to increase the speed of the releases is a good idea, but it is not enough to ensure that the company gets to market first. 

During a project governance assessment, and after expending 40% of the approved project budget, management approved the auditor's recommendation to have the project terminated.

What should the project manager do next?

• Compute the expected monetary value of the project and document it in lessons learned.

• Engage an independent consultant to justify project continuation.

• Initiate the project closeout process and document lessons learned for future reference.

• Prepare a financial report to recognize the actual costs expended as sunk costs.

Answer explanation

Solution: C. Initiate the project closeout process and document lessons learned for future reference.

The project manager has to comply with the approved recommendations of the auditors, based on the resolution of the stakeholders. The project manager should initiate the closeout process next.

The other answer choices are incorrect. The expected monetary implies that they are starting a new project; an independent consultant cannot be engaged to justify continuing the project when the decision to terminate the project has already been made; and preparing a financial report will be the result of the closeout process.

During the last iteration of planning in an agile project, the team discovers that mandatory regulations were not included in the minimum viable product (MVP). What should the project manager do?

• Ask the team to include this regulatory requirement in the iteration backlog.

• Ask the product owner to review the priority of this regulatory requirement.

• Ask the stakeholders to review the priority of this regulatory requirement.

• Ask the sponsor for approval to include this regulatory requirement in the iteration backlog.

Answer explanation

Solution: B. Ask the product owner to review the priority of this regulatory requirement.

The product owner has the responsibility to align the product backlog with the business needs order by value, even if there are regulatory requirements