PMP People — Leading Projects Practice Question
During a sprint retrospective, the team identifies that communication breakdowns are causing delays. They propose a new collaboration tool. The project manager supports the idea but it requires additional budget. What should the PM do FIRST?
⚠ Common exam trap
Test-takers frequently confuse the contingency reserve (for known risks) with the management reserve (for unknown work), or assume the project manager can authorize budget changes without formal approval, leading them to pick A or D instead of following the proper change control process.
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
✓
Evaluate the tool's cost and benefits, then submit a change request for approval
The project manager must first evaluate the cost and benefits of the proposed collaboration tool to build a business case, then submit a formal change request to the change control board (CCB) for approval. This aligns with the PMBOK Guide's integrated change control process, ensuring that budget adjustments are justified and authorized before any expenditure.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Purchase the tool using the management reserve without approval
Why it's wrong here
Management reserve is specifically allocated for unknown-unknown risks, meaning unforeseen events not identified during initial planning, and its utilization requires formal approval from senior management or the project sponsor. Unilaterally purchasing a tool, even if potentially beneficial, bypasses established governance and financial controls, constituting a serious breach of project management protocol. This action would demonstrate a lack of adherence to organizational financial policies and project change management principles.
- ✓
Evaluate the tool's cost and benefits, then submit a change request for approval
Why this is correct
This option correctly outlines the structured approach for addressing a new improvement identified during a retrospective. Evaluating the tool's cost-benefit analysis provides a data-driven justification for the proposed expenditure, aligning it with project objectives and organizational value. Subsequently, submitting a formal change request ensures proper review, approval by relevant stakeholders, and integration into the project's baselines, maintaining project control and transparency.
- ✗
Ask the team to continue without the tool to save money
Why it's wrong here
Dismissing the team's identified improvement opportunity without proper consideration contradicts the principles of continuous improvement central to agile methodologies. This approach can significantly demotivate the team, as their input is disregarded, potentially leading to decreased productivity and a perpetuation of the underlying communication problem. A PMP should empower the team to identify solutions and facilitate their implementation when justified, rather than simply rejecting them.
- ✗
Authorize the purchase using the contingency reserve
Why it's wrong here
Contingency reserve is specifically allocated for known-unknown risks identified during planning, covering potential cost or schedule overruns if those risks materialize. Utilizing it for a proactive improvement, such as purchasing a new tool, misuses these funds, which are not intended for discretionary spending or new scope additions. Such an expenditure requires a formal change request to adjust the project budget and scope appropriately, ensuring proper financial governance.
Go deeper
Related to this question
Learn chapter
Introduction to the PMP Exam and Project Management Basics
Key term
Scrum Methodology
Scrum is a lightweight process framework that helps teams deliver complex projects in small, iterative chunks called sprints.
Key term
Change Control Process
A formal, structured procedure used to manage any changes to a project's scope, schedule, budget, or requirements, ensuring every modification is reviewed, approved, tested, and documented before implementation.
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Written by Johnson Ajibi, MSc IT Security
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.