PMP Practice Question: Business Environment: strategy and project benefits
You are managing a portfolio of projects. One project has a high probability of missing its deadline, which will impact the organization's strategic goals. What should you do first?
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
✓
Analyze the impact on strategic goals and communicate with the sponsor and steering committee
The portfolio manager should analyze the situation and communicate the issue to stakeholders to align on corrective actions or reprioritization.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Add more resources to the project to try to meet the deadline
Why it's wrong here
Adding resources (e.g., people, equipment) to a struggling project without first understanding the root cause of the delay (e.g., scope creep, poor estimates, skill gaps) can lead to increased costs, communication overhead (Brooks's Law), and further delays. A thorough analysis is required before committing more investment, as simply increasing inputs does not guarantee improved outputs or adherence to the deadline.
- ✗
Ignore the issue because it is only one project in the portfolio
Why it's wrong here
As a portfolio manager, ignoring the performance of any project, even a single one, is a significant oversight. Each project within a portfolio is specifically selected and authorized to contribute to overarching organizational strategic objectives. Ignoring a struggling project risks its failure, which directly jeopardizes the achievement of those strategic goals and the overall value delivery of the entire portfolio.
- ✓
Analyze the impact on strategic goals and communicate with the sponsor and steering committee
Why this is correct
This is the most appropriate initial action for a portfolio manager. The primary role of portfolio management is to ensure continuous alignment with the organization's strategic objectives and maximize value. Therefore, understanding how a project's issue impacts those overarching goals is paramount. Communicating this analysis to the sponsor and steering committee enables informed, high-level decision-making regarding potential adjustments, re-prioritization, or corrective actions at the portfolio level.
- ✗
Immediately cancel the project to reallocate resources
Why it's wrong here
Immediately canceling a project without proper analysis of its current status, potential for recovery, or impact on strategic objectives is a premature and potentially damaging decision. Such an action would waste previous investments, disrupt resource planning across the portfolio, and could alienate key stakeholders. A structured evaluation, impact assessment, and stakeholder consultation are essential before considering such a drastic measure.
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