The correct first step is to perform an impact analysis of the proposed scope reduction and submit a change request. This is because the PMBOK Guide mandates that any change to scope, even when suggested by an executive to address a project over budget, must go through the formal integrated change control process; you cannot simply accept the directive without evaluating how it affects cost, schedule, quality, and risk. On the PMP exam, this scenario tests your understanding that scope reduction is a change, not a quick fix, and the common trap is to assume an executive’s authority bypasses the process—remember, the project manager’s duty is to ensure informed decision-making. A useful memory tip is “Analyze before you authorize,” meaning you always assess impact first, then submit a formal change request to protect the project baselines.
PMP People — Leading Projects Practice Question
This PMP practice question tests your understanding of people — leading projects. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Your project is 50% complete and 15% over budget. Earned value analysis shows CPI = 0.85 and SPI = 0.95. The team is demoralized due to recent layoffs in the company. An executive suggests reducing the project scope to cut costs. What should you do FIRST?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Perform an impact analysis of the proposed scope reduction and submit a change request
The correct first step is to perform an impact analysis of the proposed scope reduction and submit a change request. As a project manager, you must follow the formal change control process: any change to scope, even if suggested by an executive, requires an analysis of its impact on cost, schedule, quality, and risks before any decision is made. This aligns with the PMBOK Guide's guidance that scope changes must be evaluated through a change request to ensure informed decision-making and maintain project baselines.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Update the project management plan to reflect the new budget constraints
Why it's wrong here
Changes should be approved before updating the plan.
✓
Perform an impact analysis of the proposed scope reduction and submit a change request
Why this is correct
The PM should evaluate the impact and follow the change control process.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Decline the suggestion and implement cost reduction measures elsewhere
Why it's wrong here
The PM should not reject a suggestion without analysis; collaboration is key.
✗
Agree to reduce scope to meet the budget, as suggested by the executive
Why it's wrong here
Scope changes must go through formal change control and impact assessment.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think an executive's suggestion should be followed immediately or that scope reduction is always a bad idea, but the PMP exam emphasizes following the formal change control process as the first step, regardless of who proposes the change.
Detailed technical explanation
How to think about this question
In earned value management (EVM), CPI = 0.85 means the project is getting only $0.85 of work for every dollar spent, indicating a cost overrun. SPI = 0.95 means the project is slightly behind schedule. A scope reduction changes the performance measurement baseline (PMB), which requires a formal change request to rebaseline the project. The project manager must first assess the impact on the remaining work, including re-estimating the EAC (Estimate at Completion) and TCPI (To-Complete Performance Index) to determine if the scope cut is sufficient to bring costs under control.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PMP exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this PMP question in full detail.
People — Leading Projects — This question tests People — Leading Projects — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Perform an impact analysis of the proposed scope reduction and submit a change request — The correct first step is to perform an impact analysis of the proposed scope reduction and submit a change request. As a project manager, you must follow the formal change control process: any change to scope, even if suggested by an executive, requires an analysis of its impact on cost, schedule, quality, and risks before any decision is made. This aligns with the PMBOK Guide's guidance that scope changes must be evaluated through a change request to ensure informed decision-making and maintain project baselines.
What should I do if I get this PMP question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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