PMP Practice Question: Business Environment: strategy and project benefits
A project manager is working on a portfolio of projects. One project has a business case that is no longer aligned with the organization's strategic goals due to a shift in market conditions. What should the project manager do?
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
✓
Recommend to the portfolio governance board that the project should be terminated.
The correct action is to recommend termination of the project to the portfolio governance board, as it no longer provides strategic value. This aligns with portfolio management and business case evaluation. Option A is reactive. Option B bypasses governance. Option D violates the principle of project selection based on strategic alignment.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Continue the project as planned but monitor for further strategic changes.
Why it's wrong here
Continuing a project that is no longer strategically aligned represents a significant misallocation of organizational resources and capital. Project continuation without strategic fit directly contradicts portfolio management principles, which prioritize projects based on their contribution to organizational objectives. Simply monitoring for future changes does not mitigate the ongoing waste or address the immediate strategic disconnect.
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Update the business case to align with the new strategy without formal approval.
Why it's wrong here
Updating a foundational document like the business case, especially to reflect new strategic alignment, requires formal review and approval from relevant governance bodies. A project manager unilaterally altering the business case without proper authorization undermines organizational control, integrity, and the established change management processes. Such an action bypasses critical oversight and accountability mechanisms.
- ✓
Recommend to the portfolio governance board that the project should be terminated.
Why this is correct
When a project's strategic alignment is lost, its continued execution no longer contributes to organizational objectives, making it a candidate for termination. The project manager's responsibility is to identify this critical misalignment and formally recommend appropriate action to the portfolio governance board. This board possesses the authority to make portfolio-level decisions regarding project termination, ensuring resources are reallocated to more strategically valuable initiatives.
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Seek additional funding to make the project more profitable.
Why it's wrong here
Seeking additional funding to enhance project profitability does not address the fundamental issue of strategic misalignment. A project, regardless of its potential profitability, should not continue if it no longer supports the organization's overarching strategic objectives. Investing more resources into a strategically misaligned project would further divert capital from initiatives that genuinely contribute to the organization's goals.
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