PMP People — Leading Projects Practice Question
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?
⚠ Common exam trap
Watch out — candidates often 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.
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
✓
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.
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
Updating the project management plan directly to reflect new budget constraints without prior analysis and formal approval is a critical procedural error. The Project Management Plan is a controlled document, and any modifications, particularly those stemming from significant issues like being over budget, must first undergo the integrated change control process. This ensures all impacts are assessed, stakeholders agree, and the change is formally authorized before the plan is revised.
- ✓
Perform an impact analysis of the proposed scope reduction and submit a change request
Why this is correct
This is the correct course of action as it adheres to the Integrated Change Control process, a cornerstone of effective project management. Before any executive suggestion, such as reducing scope, is implemented, the project manager must conduct a thorough impact analysis to understand its effects on all project constraints, including schedule, quality, resources, and risks. Subsequently, a formal change request must be submitted for review and approval by the Change Control Board (CCB), ensuring proper governance and stakeholder alignment.
- ✗
Decline the suggestion and implement cost reduction measures elsewhere
Why it's wrong here
Unilaterally declining an executive's suggestion, even with the intent to find alternative cost reductions, is inappropriate and demonstrates poor stakeholder management. A project manager should never dismiss a proposed solution from a key stakeholder without first performing an objective impact analysis to understand its potential benefits and drawbacks. Collaboration and a data-driven approach are essential for maintaining trust and making informed decisions, rather than immediate rejection.
- ✗
Agree to reduce scope to meet the budget, as suggested by the executive
Why it's wrong here
Agreeing to reduce scope simply because an executive suggested it, without conducting a formal impact analysis or following the established integrated change control process, is a critical governance failure. Such an action bypasses necessary checks and balances, potentially leading to unforeseen negative consequences on project quality, schedule, and stakeholder satisfaction. All scope changes, regardless of their origin, require formal assessment and approval.
Go deeper
Related to this question
Learn chapter
Introduction to the PMP Exam and Project Management Basics
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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