CGEIT Benefits Realization — Timed 20 Questions

Question 1

Which of the following is the most important component of a benefits realization report presented to the board?

Accepted Answer

Calculate the project internal rate of return (IRR).. The board focuses on the strategic alignment and the actual realization of value compared to the initial business case.

Answer

Determine the technical infrastructure requirements.

Answer

The technical specifications of the new infrastructure.

Answer

Identify the project stakeholders.

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Detailed list of all software bugs encountered during development.

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A complete breakdown of the project team members' hours.

Answer

Assign technical staff to the project.

Question 2

When an IT project has multiple stakeholders, how should benefits be documented?

Accepted Answer

Define the benefit.. Documenting benefits by stakeholder group ensures each party understands the value relevant to their department.

Answer

As a single aggregate number for the entire organization.

Answer

Only by the IT department, as they manage the system.

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Draft the user manual.

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In a narrative format that focuses on technical project milestones.

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Design the technical architecture.

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Procure the hardware.

Question 3

During a portfolio review, it is discovered that a program's benefits are being realized, but the project costs have exceeded the contingency fund by 20%. What is the best immediate action for the benefits owner?

Accepted Answer

Conduct a re-evaluation of the business case to determine if the expected ROI is still valid.. The benefits owner must determine if the increased costs impact the overall net value (ROI) to decide whether to continue the investment.

Answer

Immediately terminate the project to prevent further cost overruns.

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Ignore the cost overrun as long as the project delivery schedule remains on track.

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Request an additional budget from the steering committee without analysis.

Question 4

A project manager is calculating the Return on Investment (ROI) for an IT infrastructure upgrade. Which factor must be included in the 'Investment Cost' component of the ROI calculation?

Accepted Answer

The training costs for staff to operate the new infrastructure.. Total Cost of Ownership (TCO) includes not just acquisition, but implementation and operational overheads.

Answer

The depreciation schedule of existing legacy assets.

Answer

The projected increase in annual sales revenue.

Answer

The market value of competitor technology.

Question 5

A company is shifting from a project-based to a value-based management model. Which of the following best describes an 'outcome' versus an 'output'?

Accepted Answer

An output is the automated reporting tool; an outcome is the reduction in manual data entry time.. An output is what is delivered (the product), whereas an outcome is the resulting state or benefit to the organization.

Answer

An output is a strategic goal; an outcome is a project milestone.

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An output is the increased sales revenue; an outcome is the new CRM software.

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An output and an outcome are essentially the same and can be used interchangeably.

Question 6

When implementing a benefits management plan, what is the primary role of the 'Benefits Owner'?

Accepted Answer

To ensure that the business operational changes required to achieve the benefits are implemented.. The benefits owner is accountable for ensuring that the business changes necessary to realize the value actually take place.

Answer

To manage the technical development life cycle of the software.

Answer

To authorize the release of funds from the enterprise budget.

Answer

To audit the project documentation for compliance with PMBOK standards.

Question 7

Which THREE factors should be considered when assessing the 'Value' of an IT investment in a portfolio?

Accepted Answer

Financial benefits such as cost reduction or revenue growth.. Value is derived from strategic fit, financial return, and the risk of not proceeding.

Answer

The number of vendors involved in the project.

Answer

The total volume of code written.

Question 8

What is the primary purpose of a Post-Implementation Review (PIR) in the context of benefits realization?

Accepted Answer

To verify if the expected benefits have been achieved and identify lessons learned.. The PIR confirms whether the benefits identified in the business case were actually achieved after the project is complete.

Answer

To ensure the system meets all security standards.

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To finalize the payment for external contractors.

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To evaluate the performance of the project manager.

Question 9

An organization is establishing a benefits realization framework. What is the primary purpose of defining key performance indicators (KPIs) at the start of an IT investment?

Accepted Answer

To provide a baseline for measuring the achievement of expected business outcomes.. Defining KPIs early allows for the establishment of baseline performance data, which is essential to measure the delta created by the investment.

Answer

To ensure software development complies with vendor licensing requirements.

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To automate the generation of project status reports for stakeholders.

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To allocate budget for ongoing maintenance and support costs.

Question 10

Which TWO of the following are common challenges in tracking benefits?

Accepted Answer

The long time lag between project implementation and benefit realization.. Benefits are often difficult to isolate from other business factors and may be delayed.

Answer

The high cost of cloud hosting services.

Answer

The requirement to have a steering committee.

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The lack of software tools to track project milestones.

Question 11

In the context of benefits realization, what does the term 'disbenefit' mean?

Accepted Answer

A negative consequence of the IT investment.. A disbenefit is an adverse or negative impact resulting from the implementation of a project.

Answer

A cost that was not included in the original budget.

Answer

A benefit that was planned but not achieved.

Answer

The depreciation of hardware assets over time.

Question 12

Which document is the primary source for defining the success criteria of an IT project?

Accepted Answer

The business case.. The business case provides the justification and the defined expected benefits for the project.

Answer

The vendor contract.

Answer

The technical design document.

Answer

The project charter.

Question 13

Which THREE items should be included in a benefit realization plan?

Accepted Answer

The specific metrics to measure the benefit.. A benefits plan needs accountability, measurable metrics, and timing/frequency of review.

Answer

The list of technical software vulnerabilities.

Answer

The server hardware specifications.

Question 14

What is the primary purpose of an IT value framework?

Accepted Answer

To align IT investments with enterprise strategic goals.. An IT value framework ensures that IT investments provide the intended value to the business.

Answer

To minimize the IT budget.

Answer

To manage the technical infrastructure components.

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To automate the software development life cycle.

Question 15

An IT investment shows a positive ROI, but the business units are not using the new system as intended. What is the most likely cause?

Accepted Answer

The benefits realization plan did not adequately address business change and adoption.. Poor adoption indicates a failure in change management or a lack of alignment between the system and business processes.

Answer

The steering committee met too frequently.

Answer

The project lacked sufficient technical documentation.

Answer

The project was delivered under budget.

Question 16

A project is expected to deliver cost savings through automation. Which metric is the best indicator of this benefit?

Accepted Answer

The reduction in manual labor hours per transaction.. The reduction in labor hours or headcount cost is a direct measure of automation benefits.

Answer

The number of users trained on the new system.

Answer

The number of systems upgraded.

Answer

The total budget spent on software licenses.

Question 17

When a project is integrated into an enterprise portfolio, what is the governance board's main responsibility regarding benefits?

Accepted Answer

To monitor the realization of benefits and authorize corrective action if necessary.. The governance board ensures that the investment remains aligned with enterprise strategy and that the benefits are being realized as planned.

Answer

To conduct daily meetings with the development team.

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To write the detailed technical specification for the project.

Answer

To manage the daily vendor relationship.

Question 18

Which of the following is an example of an 'indirect' benefit?

Accepted Answer

Improved employee morale and productivity due to better UI.. Indirect benefits are intangible or non-monetary improvements, such as improved brand reputation or employee morale.

Answer

Increased revenue from new digital sales channels.

Answer

Decrease in server hardware acquisition costs.

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Reduction in annual software maintenance costs.

Question 19

Why should benefit realization planning start at the inception of an IT investment?

Accepted Answer

To ensure that the desired business outcomes are clearly defined and measurable.. Early planning ensures that the project is designed with the end-state business objectives in mind.

Answer

To secure the budget before the project is approved.

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To identify technical risks in the software architecture.

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To ensure that the project team is selected correctly.

Question 20

Which of the following describes the 'Benefit Dependency Network' (BDN)?

Accepted Answer

A visualization of how investments and changes lead to business benefits.. The BDN maps the relationships between IT deliverables, business changes, and final strategic outcomes.

Answer

A network diagram of project team communication channels.

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A list of all server interdependencies.

Answer

A schedule of hardware maintenance updates.