PMI PMP - Execute Evaluate and Deliver Benefits and Value L5

A development project's earned value is US$640,000, and the planned value is US$800,000. What should the project manager do to control this variance?

• Calculate the earned value and change the project baseline to reflect the latest project status.

• Reallocate US$160,000 to project tasks that are behind schedule.

• Use project performance measurement and decide on corrective actions.

• 1. Release US$160,000 to the supplier to fast-track the project so that it is completed on time and within budget.

Answer explanation

C. Use project performance measurement and decide on corrective actions

Since the project's earned value is less than the planned value, the Project Manager should decide on the corrective actions to bring the project back on track. Hence this option is the correct option.

The Project Manager cannot change the project baseline without going through the change control process. Hence this option is incorrect.

Reallocation of project funds or using contingency fund to project tasks is done at the discretion of the Project sponsor or the senior management based on the importance of the tasks to the project objective and not based on any other factor like project is behind schedule or releasing project funds to the supplier to fast track the project. Hence these two options are incorrect.

In the middle of a three-year-long project, the company committee overseeing the project becomes uncertain about whether the final outcome will meet their expectations and provide the anticipated value. As the project manager, what proactive step can you take to address the committee's concerns and ensure that the project delivers the expected value?

• Extend the project timeline to allow for more thorough testing.

• Develop a prototype to present to the committee.

• Increase the project budget to accommodate potential changes.

• Update the project schedule with detailed milestones. 

Answer explanation

B. Develop a prototype to present to the committee.

Developing a prototype to present to the committee is an effective way to anticipate and demonstrate the value delivery of the final project result. A prototype provides a tangible representation of the product or project, allowing the committee, to visualize how it will work and look. This can help them understand its functionality, user experience, and alignment with their expectations. Prototypes also allow for early feedback, which can be invaluable in addressing concerns and making necessary adjustments before the project progresses too far. It's a proactive approach to ensure that the final result meets expectations.

The other options are incorrect because they do not actively address the committee's concerns about value delivery.

Extending the project timeline may provide more time for testing, but it may not be necessary and does not directly address the committee's concerns. 

Increasing the project budget to accommodate potential changes may provide more financial flexibility, but it focuses on budget management rather than demonstrating value to the committee.

Updating the project schedule with detailed milestones does not actively address the committee's concerns about value delivery.

A project team meeting is focused on examining if the business value and vision for a project are being delivered by all parties. During the meeting, it was discovered that a few team members were unaware of the project's vision and business value.
What should the project manager do to ensure everyone is aware of the vision and business value the project is expected to bring moving forward?

• Schedule regular meetings between the team and senior management to remind them what the vision and business value are.

• Tell the team members to refer to the company vision statement and other high-level strategy documents for clarity.

• Hold the team accountable as they have had ample time to become aware of the project vision and business value.

• Engage with the team regularly regarding the business case and ensure that all doubts are addressed properly and cleared.

Answer explanation

D. Engage with the team regularly regarding the business case and ensure that all doubts are addressed properly and cleared.

It is the responsibility of the project manager to make sure the project team is aware of the vision and business value and that they are reflected in all deliverables. Engaging the team directly is the most effective way for the project manager to address this situation and ensure that all team members have a clear understanding of the business value and vision.

Scheduling meetings between the team and senior management are incorrect as senior management typically communicates with the project manager directly, and it may not be necessary that they are involved.

It is insufficient to simply tell the team members to refer to the company vision statement and other high-level strategy documents and does not necessarily ensure that all are fully aware of the vision and business value. While the team members should refer to these documents, the project manager should make sure that the team understands the documents and the impact they have on projects.

Holding the team accountable is incorrect as it's the project manager's responsibility to ensure the team is aligned with the vision and strategy. Assigning blame is not helpful and the project manager should step up and lead the education process.

A key stakeholder requests new features to be added to a product during the project implementation phase. The stakeholder insists that the new features will add value to the product.

What should the project manager do first?

• Meet with the project sponsor to discuss the benefits of the new features.

• Review the stakeholder engagement plan to determine the key stakeholder's level of involvement.

• Assess and review how the changes will impact the project budget and schedule.

• Implement the change and document the outcome in the lessons learned repository.

Answer explanation

C. Assess and review how the changes will impact the project budget and schedule.

The change management plan establishes how the change control board, documents the extent of its authority and describes how the change control system will be implemented. Any proposed changes to the project should follow the change management plan.

Meeting with the project sponsor is not the first thing to do after receiving the new features from the key stakeholder.

A stakeholder engagement plan identifies the strategies and actions required to promote the productive involvement of stakeholders in a project or program decision-making and execution and is not used to document change requests.

Change requests need to be approved before they can be implemented.

A project manager is working on a software development project. Several team members have become overly focused on delivering individual features and cannot reach a consensus on which features to prioritize. A stakeholder contacts the project manager and expresses concerns about value delivery. 

What action should the project manager take?

• Meet with the team to develop a plan to prioritize features based on value.

• Request that the stakeholder provide a checklist of the most important features.

• Mandate a specific prioritization schema to the team after receiving approval.

• Perform quality inspections and document the results in a report to the stakeholder.

Answer explanation

A. Meet with the team to develop a plan to prioritize features based on value.

Meeting with the team to develop a plan based on value ensures that the project aligns with stakeholder concerns and focuses on delivering value. When the team is involved in developing the prioritization plan, they are more likely to understand and agree with it. Meeting with the team to develop a prioritization plan will also help to ensure that the plan takes into account all of the relevant factors. This will help to ensure that the team is prioritizing features in a way that is both feasible and valuable.

Requesting that the stakeholder provide a checklist of features may not result in an effective solution. The stakeholder may not have a complete understanding of all of the technical and business constraints involved in the project.

Imposing a prioritization schema without involving the team in the decision-making process is not advisable. It is important to collaborate with the team to build a shared understanding and get buy-in on the prioritization process.

Conducting quality inspections addresses a different concern and doesn't directly address the value delivery and prioritization issue.

A project manager is a part of a large business transformation project. The project's main goal is to increase production and create capacity to bring new products to the market. The project manager notices during a lunch break that employees are discussing the changes introduced by the project and are afraid that they will result in staff layoffs, even though it is not true.

Which groups should the project manager contact to address this concern and ensure that the project meets its goal? (Choose 3).

• The human resources (HR) department to ask for support to resolve the issue

• The change manager to revise the communications management plan

• The employees' functional managers to include the issue in their performance reviews

• The employees' functional managers to ask for support in explaining the change

• The sponsor to ask for executive support and reinforcement

Answer explanation

B, D, and E. The change manager to revise the communications management plan, The employees' functional managers to ask for support in explaining the change, and The sponsor to ask for executive support and reinforcement

CORRECT CHOICES

The change manager should be notified since the audience apparently has received the wrong message.

The sponsor can help address concerns and reduce resistance. Executives have the power to allocate resources and formulate a clear message on the necessity of the change and the intended outcome.

Functional managers can help explain the change to their employees, who will trust their immediate managers.

INCORRECT CHOICES

Asking Human Resources to get involved will only increase resistance to change and likely confirm employee fears that the objective of the project is to reduce staff. Having functional managers punish the employees in their performance reviews will get a similar result.

A project manager is leading a large business transformation project that involves the entire organization. The project manager is working on the communications management plan.

Which two elements should the project manager consider while planning communications? (Choose 2).

• Key messages

• Objectives and values

• Collecting feedback

• Multiple communication channels

• Best communication channel

Answer explanation

A and D. Key messages and Multiple communication channels

The project manager should focus on key messages and the use of multiple communication channels while planning communications for the transformation.

The other answer choices are incorrect. The organization's objectives and values will not be included because they may change after the transformation of the entire organization. Collecting feedback is already a part of the project plan and has been well considered in advance. The project manager should aim to use all communication channels and should avoid narrowing usage down to a single "best" option.

A company is developing a breakthrough product in a highly competitive and rapidly evolving market. The project manager acknowledges that, due to the significantly competitive environment, the definition of done (DoD) is likely to shift. What should the project manager do to ensure the project's successful delivery of value?

• Implement robust project tracking and reporting procedures.

• Expand the project timeline and budget to address potential risks.

• Allocate additional resources to expedite product development.

• Restrict project scope and focus on meeting project deadlines.

Answer explanation

A. Implement robust project tracking and reporting procedures.

For projects that operate in uncertain and rapidly changing environments, the definition of done (DoD) may be subject to change. The DoD is a checklist of all the criteria required to be met so that a deliverable can be considered ready for customer use. Implementing robust project tracking and reporting procedures allows the project manager to closely monitor progress, identify potential issues, and make timely adaptations. 

The other options are incorrect because they have limitations and potential drawbacks, especially in a highly competitive market.

Expanding the project timeline and budget could lead to missed market opportunities and does not address the root causes of a shifting DoD.

Allocating additional resources will increase costs and does not guarantee the successful delivery of value.

Restricting the project scope could compromise the project's ability to deliver valuable and competitive features.

A project manager is managing a technology project that is in the implementation phase. A key stakeholder communicates the need for changes to the project. The stakeholder and team members disagree about the need for the changes and how to implement them. 

What should the project manager do?

• Meet with the stakeholder and the team members separately to understand their concerns.

• Conduct a risk assessment to determine the impact of the changes.

• Present the pros and cons of the changes to the stakeholder and team members.

• Make the changes without consulting the stakeholder or team members.

Answer explanation

A. Meet with the stakeholder and the team members separately to understand their concerns.

The project manager should meet with the stakeholder and the team members separately to understand their concerns. This will allow the project manager to get a better understanding of the different perspectives on the changes. By listening to both sides, the project manager can then work to find a solution that meets the needs of everyone involved.

The other answer choices are incorrect. The project manager needs to first understand the concerns of the stakeholder and the team members before they can conduct a risk assessment. The project manager also needs to listen to the concerns of the stakeholder and the team members and work to find a solution that meets the needs of everyone involved before presenting the pros and cons. The project manager should always consult the stakeholder and team members before making any changes to the project.

In the implementation phase of a project, the project manager receives news that a team lead will be leaving the organization. The project sponsor has been made aware and has suggested a replacement. What is the first action the project manager should take in response to this change?

• Determine the competence levels of the suggested new resource.

• Review the project baselines to assess the impact of the change.

• Document the change according to the change management plan.

• Edit the communications management plan to reflect the change.

Answer explanation

B. Review the project baselines to assess the impact of the change.

Before making any decisions, the project manager should first assess the impact of change. The change may impact the scope, schedule, or budget of the project, so the project manager should assess the impact in order to make a well-informed decision on how to proceed. The impact of the team lead's departure will be greater for more complex projects. It is essential to assess the extent of the impact and to determine what adjustments, if any, are needed to keep the project on track. The project manager may need to make adjustments to the project plan, budget, or the project team, depending on the impact of the change.

The other options are incorrect because they should come after reviewing the project baselines. 

Determining the competency of the suggested resource is crucial, but the project manager should first understand the impact of the change.  Once the project manager has a clear understanding of the impact of the change, they can then determine the competence levels of the new resource and make any necessary adjustments.

Documenting the change is necessary, but the project manager needs to have a clear understanding of the impact of the change before they can document it accurately.

Updating the communication management plan may be necessary, but is not the first action the project manager should take.