PMP People — Leading Projects Practice Question
A project is running 15% over budget at the midpoint. The sponsor is concerned and asks the PM to reduce costs by cutting team training and team-building activities. What should the PM do?
⚠ Common exam trap
A common mix-up: candidates assume the sponsor's request must be followed without question, but the PM must balance stakeholder demands with the project's long-term health and use their expertise to propose better alternatives.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Explain the importance of these activities and propose other cost-saving measures
The PM should protect the project's long-term success by explaining the critical role of team training and team-building in maintaining performance and morale, especially when the project is under budget pressure. Cutting these activities can lead to decreased productivity, higher turnover, and ultimately greater cost overruns. The PM should propose alternative cost-saving measures that do not compromise the team's capability or the project's quality.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Agree to cut training and team-building to meet the sponsor's request
Why it's wrong here
A Project Manager should not immediately agree to cut essential activities like training and team-building, even under sponsor pressure. These investments are crucial for developing team capabilities, fostering collaboration, and maintaining morale, directly impacting project quality and future performance. Arbitrarily cutting them can lead to decreased productivity, increased rework, and potential project failure in the long run, demonstrating a lack of advocacy for the team and project health.
- ✗
Reduce the project scope to cut costs
Why it's wrong here
Reducing project scope to cut costs is a significant decision that requires formal change control procedures, including impact analysis and stakeholder approval. This action directly alters the project's deliverables and objectives, potentially compromising the value delivered to the customer or business. It should not be the initial or unilateral response to budget overruns without thoroughly exploring less impactful alternatives and understanding the full implications on project success criteria.
- ✓
Explain the importance of these activities and propose other cost-saving measures
Why this is correct
The Project Manager's role includes advocating for the project team and protecting critical investments like training and team-building, which enhance performance and mitigate risks. By explaining their value to the sponsor and proactively identifying alternative cost-saving measures, the PM demonstrates leadership and problem-solving skills. This approach seeks to address the budget concern without compromising essential elements for long-term project success and team effectiveness, aligning with best practices for stakeholder management and resource optimization.
- ✗
Escalate to the PMO for a decision
Why it's wrong here
Escalating directly to the PMO for a decision without first analyzing the situation, evaluating alternatives, and formulating a recommendation is generally not the Project Manager's primary responsibility. A PM is expected to be a proactive problem-solver, presenting well-considered options and their implications to relevant stakeholders or governance bodies. Premature escalation can indicate a lack of initiative or an inability to manage project challenges independently, burdening the PMO unnecessarily.
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Senior Network & Security Engineer · founder of Courseiva
This PMP practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PMP exam.