PMP Process — Managing Technical Aspects Practice Question

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

• ✗

  Implement cost reduction measures without informing the sponsor

  Why it's wrong here

  Implementing significant cost reduction measures without informing the sponsor is a breach of transparent stakeholder communication and engagement principles. Such unilateral actions, especially when addressing substantial variances like a CPI of 0.85, can lead to a loss of trust and may not align with the sponsor's strategic objectives or risk tolerance. Major corrective actions require sponsor awareness and often their approval, as they can impact project scope, quality, or future funding.

• ✗

  Report that the project is on track and the variances are temporary

  Why it's wrong here

  Reporting that the project is on track despite a CPI of 0.85 and SPI of 0.90 is unethical and a direct violation of the PMI Code of Ethics and Professional Conduct, specifically regarding honesty and transparency. These significant variances clearly indicate performance issues, not temporary fluctuations, and misleading the sponsor prevents them from making informed decisions or providing necessary support. Such misrepresentation erodes trust and can exacerbate project problems, leading to more severe consequences later.

• ✓

  Inform the sponsor of the cost and schedule variances and present a recovery plan

  Why this is correct

  Informing the sponsor of significant cost (CPI 0.85) and schedule (SPI 0.90) variances, coupled with a comprehensive recovery plan, represents best practice in project management and ethical stakeholder communication. This proactive approach demonstrates transparency, accountability, and leadership by not only identifying problems but also proposing actionable solutions to bring the project back within acceptable performance thresholds. It enables the sponsor to understand the situation, provide necessary support, and make informed strategic decisions regarding the project's future.

• ✗

  Request additional budget to cover the cost overrun without changing scope

  Why it's wrong here

  Requesting additional budget solely to cover a cost overrun, without first thoroughly analyzing the root causes of the CPI variance (0.85) or presenting a comprehensive recovery plan, is a premature and incomplete approach. While additional funding might be a component of a solution, the initial step involves transparently communicating the project's current status and proposed corrective actions to the sponsor. Simply asking for more money without demonstrating a clear strategy to address underlying issues or considering other options like scope optimization or efficiency gains is insufficient.

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