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WorksheetsPMI SH - Evaluate and Address External Business Environment Chan
Total questions: 24
Worksheet time: 12mins
A project is under scrutiny for its amount of water usage. The government's water licensing branch is changing its policy to be more restrictive.
What should the project manager do?
Align project resources to oppose the new water license standard.
Cancel the project because of the uncertainty introduced with the policy change.
Assess the impact of the policy change on the project scope.
Create a new project schedule based on potential changes to the water policy.
A team is working on a new product using a gated approach. After the third sprint they noticed that the market needs may be changing, and the product may not fit the new market needs.
What should the project manager do next?
Survey the market for possible impacts on the project.
Change the product’s scope to meet the new needs.
Finalize the product on time and budget to launch as planned.
Review the backlog to see the impact of the new needs.
A project manager is asked to manage a project that will allow the company to comply with a new, upcoming regulation. Just after project kick-off, the scope is modified to have the project team now work on specific tasks, while a global team will manage the program for several countries in parallel. The project management plan has not yet been shared, and the deadline to complete the project is fixed.
What should the project manager do to handle the scope and changes?
Create a risk entry in the risk management plan due to the lack of a global project management plan.
Formalize the change in the scope with the project sponsor to limit accountability for the specific tasks.
Review the organizational process assets (OPAs) from similar situations and the approaches that were implemented.
Define an initial backlog and start working on the clearest tasks, then incrementally refine the scope.
In order to identify and assess the hindering and enabling factors that may affect project delivery as a result of the organization's specific environment, a project manager undertakes an environmental scan.
Which of the following combinations represents some of the factors that will be considered in this scan?
Laws and regulations, market trends, and new technology.
Published research, articles, and journals.
Seminars, exhibitions, and upcoming conferences.
New technology, seminars, and webinars.
A project manager is assigned to a water treatment investment project. The local government has recently passed a law that requires compliance with clean water according to global standards. This is a new regulation that was initiated in the last month and was quickly passed.
What should the project manager do?
Inform the stakeholders and continue with the project according to the original plans since the law was passed after the project started.
Meet with the project sponsor and recommend that the project continue because the new legal requirements can be delivered.
Conduct an analysis of the impact of the regulation on the project and the business and communicate it to stakeholders.
Recommend that all work on the project be stopped immediately until the impact of the regulation is understood.
A project manager is leading a project that received a request for additional scope caused by changes in market demand. The change request also seeks a more rapid delivery time frame.
Which two actions should the project manager take? (Choose two)
Assess company performance and the scope of other projects to ensure minimal impact.
Organize a workshop with the sponsors and ask them to increase the project budget.
Collect data and analyze the business environment to validate the business benefits.
Assess new technologies and competitors, then benchmark the change against them.
Organize a risk workshop, then update the risk management plan and the risk register.
A project manager is tracking an infrastructure project that is dependent on a service provider. The service provider informed the project manager that some of the third-party components will no longer be manufactured or supported. Upon an initial review, this would significantly delay the schedule and increase the budget.
What should the project manager do?
Escalate this issue to the project sponsor.
Update the risk register.
Convene a review with the team.
Update the project status to reflect these findings.
A project manager is leading a project that requires approval from a government agency. The agency is currently drafting legislation that will impact the project's approval process, but it is unclear when the legislation will become law. The project manager is concerned that the legislation may delay the project's key milestones or limit the project's development options.
What should the project manager do?
Apply for an additional contingency to prepare for the anticipated delay in project milestones.
Review the project scope and submit a request to exclude activities associated with the legislation.
Continuously evaluate exposure to the risk to minimize negative impacts on the project and its outcomes.
Proceed with the project with the understanding that the pending legislation will pass without delay.
A project manager had just started a long-term project when the government implemented new legislation that all engineers working in the state need to be registered. Registration is based on work area, experience, and professional development completed in the last 3 years. Due to budget constraints in the company for the past three years, there were limited opportunities for engineers to gain formal professional development.
How should the project manager handle the situation?
Send a request to the change management board to assess the situation.
Review the team's skills matrix and update the resource management plan.
Send all of the engineers to professional development to meet the requirements.
Inform the engineers that they need to be registered to keep working for the company.
A project team just completed an environmental scan and have uncovered a lot of related hindrances that could potentially affect the project delivery negatively. The project manager is working with the team to understand the details of each identified hindrance and how the hindrances relate to each other, in order to understand the overall complexity of the project. This will enable the team to arrive at a plan that addresses the challenges identified.
Which of the following techniques has the project manager used in this instance?
Pareto analysis
Critical analysis
Systems thinking
Total quality management
A company has an existing contract to maintain and enhance a client's customer database. The company's legal department informs the project manager that a new piece of legislation requiring stricter protection of customer information might soon be signed into law. The law will require additional security features to be implemented into the database the project manager is maintaining. These features are not included in the scope of the current contract.
What should the project manager do?
Seek the project sponsor's support to influence the client to amend the contract immediately.
Ask the legal department to raise the issue in the next contract negotiation with the customer.
Update the risk register with the issue and plan risk response with the project sponsor and client.
Wait until the legal requirements are finalized so the change in scope can be concretely defined.
A client requests a major scope change due to a change in the market environment, which will significantly add to the project cost. This change is approved through the change control process.
What should the project manager do to put the project on track?
Reevaluate the scope baseline and impact on the project objectives.
Use the management reserve to account for the schedule uncertainty.
Monitor risks to ensure the effectiveness of the risk management process.
Reevaluate the cost management plan to address the impact of the change.
A project is developing a product where the time to market is critical. During the execution phase, the client submits a change request to include the latest technology that will enhance the product features and provide a competitive advantage. The change will impact the project constraints, but the benefits outweigh the cost and effort.
What should the project manager do next?
Adopt an incremental delivery approach and release essential features of the product into the market first to counter competition.
Start a separate project to adopt the new technology incrementally to enhance the product features as the technology matures.
Perform an integrated change control process and review the project constraints to effectively manage the enhanced scope.
Close the current project and start a new project with an incremental delivery approach.
A team member suggests using a new product to speed up feature development, but this will increase the project budget. The project team is taking an incremental approach to product development, and the product owner is responsible for prioritizing and managing the product backlog. What should the project manager do first?
Consult the product owner and present the benefits and drawbacks of using the new product.
Review and update the cost management plan to accommodate the potential budget impact.
Request additional funding for the implementation of the new product from the project sponsor.
Revise the acceptance criteria for the user stories to incorporate the new product effectively.
A meeting is being scheduled for the scrum master, product owner, and project team to discuss what went well and what did not go well during the last project iteration. The meeting also includes planning improvements for future iterations.
Which meeting objectives are being described?
Iteration planning meeting
Retrospective meeting
Daily stand-up meeting
Backlog refinement meeting
A startup in its early stages has been acquired by a major company. In light of this new scenario, the project manager has been requested to review the project's roadmap.
What should the project manager do?
Determine the definition of value with the stakeholders and reprioritize the project's backlog accordingly.
Reprioritize the project's backlog by prioritizing those features that maximize the return on investment (ROI).
Reprioritize the roadmap by focusing on long-term benefits and reducing the technical debt.
Launch a customer survey to better evaluate the key project features prior to reprioritizing the roadmap.
A company is using a predictive approach for the development of a particular component as defined in the scope management plan. Due to regularly changing regulatory requirements, the development team has requested to utilize agile approaches.
What should the project manager do about the development team's request?
Escalate the request for additional financial resources.
Analyze the requirements that will need to be addressed under the requested method.
Forward the request to the project management office (PMO) to amend the organizational process assets.
Ask the project sponsor to obtain approval for implementation of the new approach.
A project manager is working on a project that will deliver a solution in country A. Due to the potential for a security breach, country A's government is banning the technology that will be used in the project's solution, adversely affecting the project. The project manager is close to completing the installation for the project after already procuring the materials and the banned technology.
What should the project manager do?
Review the project management plan and follow the process for change control.
Request that the legal team review the change and determine the appropriate response.
Meet with the project sponsor about the issue and request direction for next steps.
Inform the customer that the project cannot deliver the defined scope.
A company has undertaken a large transformation project to prepare itself for the changing economy. During the execution of the transformation project, a new technology emerges that was not foreseen in the risk management plan.
What should the project manager do?
Escalate this to the IT department and organize training for the impacted team members.
Revisit the procurement management plan and identify the impacted contracts for upcoming purchases.
Revisit the risk management plan and apply the project risk planning process.
Escalate the issue to the next steering committee and facilitate a brainstorming meeting.
A project manager is leading a wastewater treatment project for a factory. During project execution, the government unexpectedly releases new environmental protection standards that are stricter than the previous standards.
To ensure compliance with these updated regulations, what should the project manager's initial course of action be?
Meet with the project team to assess the implications of the new government regulations on the project requirements.
Review the project's risk register to determine if this change was previously documented as a potential risk to the project.
Draft a formal change request detailing the adjustments and submit it to the change control board (CCB) for evaluation.
Initiate discussions with the government agency to negotiate a revised timeline for adopting the new environmental standards.
A project manager is leading a critical project to deliver a new solution. The CEO is highly invested in the project, and the CFO is the product owner. During the testing phase, the CFO requests an additional nonfunctional requirement to shorten the frequency of transaction processing. This new requirement will impact the launch date, and the CFO is insistent on having it implemented.
What should the project manager do to minimize the impact of the new requirement on the launch date and manage the expectations of the CEO and CFO?
Meet with the CFO and suggest delaying the implementation of the new requirement to the post-launch phase.
Ask the CEO to intervene and stop the implementation of the new requirement, as development is complete.
Tell the project team to update the product backlog with the new requirement and adjust the project plans.
Assess the scope of the new nonfunctional requirement to determine its specific impact on the planned go-live date.
Question
A new regulation has been approved that will impact the deliverables in the fourth phase of the project. The delivery is following an iterative approach and is currently completing the second phase.
What should the project manager do next?
Consult with the project sponsor to discuss a cost increase.
Get approval for the additional budget from the steering committee.
Meet with subject matter experts (SMEs) to assess the impact to objectives.
Acquire approval for an exception to the implementation of the new regulation.
The local government regulator has issued a notification to all companies regarding a new project aimed at facilitating information reporting to an international regulator. However, due to the dynamic nature of the project, there is a possibility of changing requirements while the delivery date remains fixed. The project manager assigned to this initiative is concerned about the uncertainty and the short timeline for delivery.
How should the project manager best prepare to address this situation?
Implement iterative and incremental approaches in relevant areas of the project to adapt to changing requirements.
Meet with the sponsor to determine a detailed project schedule to ensure that the project is completed on time.
Develop a detailed contingency plan using the crashing technique to expedite project activities as needed.
Enhance communication strategies and engagement with the local government to ensure alignment and timely updates.
Due to a downturn in the business environment, a customer is only able to make a project's payment in part, rather than the fully committed monthly payment. What should the project manager do?
Discuss it with management and pause the project because of the customer's budget constraint.
Deliver the features with the highest business value, based on the available budget.
Deliver the features that have small independent components, based on the available budget.
Continue with the planned development and deliver only when full payment is made.
