PMI Practice Questions

As a Program Manager, you are working on developing a high level estimate for the program schedule. You have reviewed the component projects and used the schedule estimates of these projects as the basis for the initial program schedule. You have found however, that one component project has not completed their project schedule correctly. This is mainly due to this project being likely to be the last component project initiated and is very reliant on the earlier project results. As there is no possible way to complete detailed planning for the schedule all of the following estimating techniques could be used to develop the component project schedule EXCEPT:

Options are :

  • a. Analogous estimating
  • b. Empirical estimating (Correct)
  • c. Expert Opinion
  • d. Rough Order of Magnitude

Answer : b. Empirical estimating

Explanation Empirical estimating requires a detailed WBS and each work package is separately estimated before rolling these detailed estimates into an overall project estimate. Therefore detailed project and product definition is required and this is not available as yet. Project Management – A Systems Approach to Planning, Scheduling and Controlling. Seventh Edition Table 14-14 (Page 782)

You are assuming a position in a company that has not had much experience with program management. You will be leading the program team and performing a business function for your program. The business case has already been made, and the program is scheduled to move into the Program Initiation phase. As the program manager, one competency that is embedded in your job is—

Options are :

  • a. Communication
  • b. Political skills
  • c. Strategic visioning
  • d. Leadership (Correct)

Answer : d. Leadership

Explanation A successful program manager must have a special blend of knowledge, skills, and competencies. Leadership is required in working with the program management team and functional managers; it is embedded in the job of the program manager and occurs throughout the program. PMI®, The Standard for Program Management, 2013, 15

Assume you are managing a high visibility program that is global with stakeholders located on four continents. You have performed a thorough identifcation of your program’s benefts with your team and have set up a benefts register. In order to develop appropriate performance measures for these benefts, you should—

Options are :

  • a. Review the business case
  • b. Meet with stakeholders (Correct)
  • c. Take the qualifed benefts and turn them into ones that can be measured quantitatively
  • d. Assign each beneft to an owner and empower the owner to set up metrics and discuss them at the scheduled core team meeting

Answer : b. Meet with stakeholders

Explanation After the beneft register is set up, it should be reviewed with key stakeholders to develop the appropriate performance measures for each beneft. These key performance indicators become part of the register for the program. PMI®, The Standard for Program Management, 2013, 36

As the program manager for the landfll program for your county, you have assembled your program team. It consists of civil engineers, regulatory specialists, project managers, and environmental engineers. This program is considered to be a very large one that will take a number of years to complete to deliver the societal benefts as planned. You plan to add some key subject matter experts as required. You also will have contractors on your team. With the various contractors, you are considering—

Options are :

  • a. Using your PMO (Correct)
  • b. Adding a specialist in contract management to the core team
  • c. Using blanket purchase agreements
  • d. Using fxed-price contracts with incentives for early completion

Answer : a. Using your PMO

Explanation While the PMO performs many functions in support of programs, it is not uncommon for it on large and intricate programs to provide support for contracts and procurements. PMI®, The Standard for Program Management, 2013, 13

Finally, you Governance Board approved your communications plan for this program, and you now are addressing the best way to handle performance reporting and how to communicate this information to provide stakeholders with needed information. As you work in this area, you should consult the—

Options are :

  • a. Program management plan
  • b. Program work breakdown structure (PWBS) (Correct)
  • c. Governance plan
  • d. Organizational communications strategy

Answer : b. Program work breakdown structure (PWBS)

Explanation The PWBS, among other things, provides a framework for performance reporting and tracking. PMI®, The Standard for Program Management, 2013, 105

Assume your organization submitted its proposal to government agency ABS. One requirement was that the program manager be certifed as a PgMP®. You were listed in the proposal as the program manager and plan to take the exam in three weeks; there is plenty of time as it is June 1, and the contract is not to be awarded until July 1. Your company is convinced it will win this opportunity, and you are working on the charter. You passed the exam, and the company won the contract. But, you just learned you did not pass the MRA. You should—

Options are :

  • a. Complete the charter so the program can commence
  • b. Hold a kick-off meeting with your team
  • c. Inform your sponsor about the MRA issue
  • d. Inform the ABS point of contact about the MRA issue (Correct)

Answer : d. Inform the ABS point of contact about the MRA issue

Explanation If you do not pass the MRA, you cannot re-take it for a year. As you are not certifed as a PgMP®, and it was a contractual requirement to be certifed, you need to inform the client. As part of the PMI® Code of Ethics and Professional Conduct, it is incumbent to act in a truthful matter and under fairness we must disclose any real or potential conflicts of interest to appropriate parties. PMI®, PMI Code of Ethics and Professional Conduct. Available from http:// www.pmi.org/codeofethicsPDF, 4–5

You are the Program Manager on a program that is due to be closed after 3 years duration. Some team members are becoming anxious. What is the MOST likely reason for this?

Options are :

  • a. There may be concern about what their next assignment may be (Correct)
  • b. There is additional pressure to ‘catch up’ schedule slippage and complete the deliverables
  • c. Quality issues are being identified as the completed deliverables are being reviewed for completeness
  • d. The program is running out of money and there is the likelihood of completing over budget

Answer : a. There may be concern about what their next assignment may be

Explanation If team members have been involved with a program of work over a lengthy period, they have become familiar with the program environment including the program team members. A change in this environment and the requirement to begin another program is a classic change management scenario – one that can lead to personal anxiety in the team. Appropriate schedule control, quality control and cost control should mean that there is no additonal pressure as a program of work concludes.

Your company has established a program to manage the development of new pet food products, and you have been appointed manager of this program. One of your fve projects has completed its deliverables successfully, and a transition request has been processed. As the program manager, you should—

Options are :

  • a. Reallocate the resources to the other four projects
  • b. Update the resource plan
  • c. Update the program roadmap (Correct)
  • d. Send the transition request to the program sponsor for approval

Answer : c. Update the program roadmap

Explanation The processing of the transition request is complete with updates to the roadmap. These updates re?ect go/no-go decisions and approved change requests affecting major milestones, scope, or timing of major stages or blocks of the program. PMI®, The Standard for Program Management, 2013, 87

Sam was recently appointed as Project Manager, managing a project that is a component on your program. As Program Manager, you were involved in the interviewing processes for the appointment; however you were not in favour of the appointment. You had concerns that Sam did not possess a lot of experience in managing projects of a similar nature, and in particular was unable to explain his approach to quality management on projects. What would be your BEST INITIAL action to manage this situation?

Options are :

  • a. Ensure several quality audits are planned into the schedule for this component project to provide quality assurance
  • b. Complete a performance assessment to confirm the project is being well managed
  • c. Set up regular meetings with Sam to review project performance and team performance and advise Sam that you have an ‘open door’ policy and can contact you at any time should there be any issues (Correct)
  • d. Speak with HR department and book Sam onto some training courses to improve his project management knowledge, especially quality management

Answer : c. Set up regular meetings with Sam to review project performance and team performance and advise Sam that you have an ‘open door’ policy and can contact you at any time should there be any issues

Explanation Answers a) and b) are retrospective and unsupportive of Sam. Answer d) will not have been of immediate support for Sam. Ensuring that Sam is well supported in his new role is a proactive step and creates opportunities for you to support and mentor Sam throughout his project.

You now have fve projects in your next-generation PDA program. So far, you are pleased with your core team and its progress, and you have a Governance Board in place to oversee your progress. They also are responsible for gate reviews. You have just completed the PWBS for this program. Your next step is to—

Options are :

  • a. Generate the program schedule (Correct)
  • b. Develop the issue resolution process for Governance Board Involvement
  • c. Negotiate for project team members
  • d. Identify key milestones

Answer : a. Generate the program schedule

Explanation Upon completion of the PWBS, realistic schedules can be built, cost estimates can be developed, and the program’s work can be organized. PMI®, The Standard for Program Management, 2013, 105

You have been appointed program manager for the closing phase of Program CCC. As closing program manager, you must ensure that all administrative activities are complete. Sixty-two contracts were awarded during the life of this program. You contact the Contracts Department and a contracts specialist assists you. You need to—

Options are :

  • a. Review the contracts management plan
  • b. Make sure the contractors completed performance reports as stated in their contracts
  • c. Ensure payments were made (Correct)
  • d. Review contract closure procedures

Answer : c. Ensure payments were made

Explanation In Program Procurement Closure, it is necessary to close out all contracts. This is done after determining all deliverables were completed satisfactorily, all payments have been made, and there are no outstanding contractual issues. PMI®, The Standard for Program Management, 2013, 91

As the manager of your company’s natural gas distribution program, you are pleased to have this program as it is ranked number one in the company’s portfolio. So far, you have fve separate projects, and the program is scheduled to last four years. In order to gauge program quality, a powerful metric is—

Options are :

  • a. End user satisfaction (Correct)
  • b. Beneft sustainment
  • c. Effectiveness of adherence to the program’s quality policy
  • d. Cross-program inter-project quality relationships

Answer : a. End user satisfaction

Explanation Quality control is performed throughout the program. It is important to ensure components and the program fulfll quality requirements for adequate beneft realization. End user satisfaction is considered a key metric to gauge program quality. PMI®, The Standard for Program Management, 2013, 93–94

You are Company A’s program manager for the development of an online banking system for your community bank, for which your company will receive $20 million.. Your management at the highest level is totally committed to this program, and it is the number one program in Company A’s portfolio. Your Governance Board is dedicated to its success. As a result, the chairperson of the Board is—

Options are :

  • a. The program sponsor (Correct)
  • b. The CEO
  • c. The Portfolio Manager
  • d. The Director of the Enterprise PMO

Answer : a. The program sponsor

Explanation Governance structures differ based on numerous factors with the purpose to monitor and review the progress of the program and delivery of the benefts from the project and non-project work. The program sponsor typically is an executive with a senior role in the organization. In many organizations, the program sponsor is the chairperson of the Governance Board. PMI®, The Standard for Program Management, 2013, 62 PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 15

In a meeting with your program’s Governance Board, you discussed ongoing and completed risk responses. You have been working to minimize risks, and a member of your core program team is responsible for overall risk management as her primary activity. You recently held a risk review meeting for your program, and many risks have occurred that were not identifed and analyzed. This was followed by a meeting with your Governance Board, which directed you to prepare a comprehensive update on all risks. This decision by the Governance Board in its role in—

Options are :

  • a. Establishing an issue escalation process
  • b. Program reporting and control (Correct)
  • c. Program performance support
  • d. Monitoring progress and determining if changes are needed

Answer : b. Program reporting and control

Explanation A best practice followed by many organizations is to defne standardized monitoring and control processes applicable to all programs. The Governance Board then assumes compliance with these processes. An example is known program risks, their response plans, and escalation criteria. PMI®, The Standard for Program Management, 2013, 57

The term ‘progressive elaboration’ relates to the continuous improvement and detailing of plans and completed as part of the iterations of the planning process. Progressive Elaboration, generally, occurs more frequently in planning programs than in planning projects because: -

Options are :

  • a. Project Managers don’t start projects unless all the planning is completed and rolled up to the program level
  • b. Project Managers are not certified to complete progressive elaboration, which is an activity completed by Program Managers
  • c. The projects created within a program, are often at different stages of completion and therefore planning is more likely to be progressively elaborated (Correct)
  • d. Programs are generally more complicated than projects and therefore require more iterative type planning

Answer : c. The projects created within a program, are often at different stages of completion and therefore planning is more likely to be progressively elaborated

Explanation Question 25 The process called ‘Develop Program Management Plan’ has as the output the Program Management Plan, which is made up of a series of subsidiary plans. All of those listed below are considered subsidiary plans of the program management plan EXCEPT:- a. Program Roadmap b. Strategic Plan c. Schedule Management Plan d. Benefits Realization Plan Planning Answer: Strategic Plan The strategic plan is an organizational plan, established by senior management, which eventuates in strategic initiatives. It is these strategic initiatives that can lead to programs of work, but are not deemed a subsidiary plan of the program management plan. The Standard of Program Management Second Edition Section 4.2 (Page 79) 1 What is the MOST complete definition of a program? a. A group of related projects managed in a co-ordinated way to obtain benefits and control not available from managing them individually b. A group of related projects managed in a co-ordinated way to obtain benefits and control not available from managing them individually and may include elements of work outside the component projects in a program c. A group of related projects managed in a co-ordinated way to obtain benefits and control not available from managing them individually and will not include any elements outside the component projects in a program d. A group of related projects managed in a co-ordinated way to obtain benefits and control not available from managing them individually, managed by a Program Manager Defining Answer: A group of related projects managed in a co-ordinated way to obtain benefits and control not available from managing them individually and may include elements of work outside the component projects in a program This is the definition from The Standard for Program Management Second Edition Section 1.2 (Page 5)

Finally, your program to rebuild the water desalinization plant for Ferguson, Saudi Arabia is complete. This program has been under way for more than fve years. You had a number of leasing agreements on the program, and you are confdent all of them have been closed successfully. You also had several subcontractors, and you have had reviews with each of them. You are meeting with your Governance Board, to obtain approval for the fnal phase of the program. You have made a recommendation to the Board to close the program. The person who will make the offcial decision is—

Options are :

  • a. Executive director
  • b. Program sponsor
  • c. Governance Board (Correct)
  • d. Head of the PMO

Answer : c. Governance Board

Explanation The Governance Board approves recommendations for program closure confrming that conditions that warrant closure are satisfed, and recommendations for closure are consistent with the current organizational vision and strategy. PMI®, The Standard for Program Management, 2013, 61–62

Your company has been the leader in Segway® production since they were frst made available to consumers. However, their popularity has increased tremendously since the product was frst made offered, and they are less expensive to manufacture. Therefore, sales have increased dramatically. However, recently your company has been getting a large volume of customer complaints as the battery life is only 20 miles. You have been appointed as the program manager to develop a new line of Segway® products in which the battery life will be 100 miles, yet the production process still will be one that focuses on lean manufacturing so the products can be offered to customers at a reasonable price. To document the relationship between the program activities and expected benefts, you have prepared a—

Options are :

  • a. Roadmap (Correct)
  • b. Charter
  • c. Benefts realization plan
  • d. Statement of the program’s goals and objectives

Answer : a. Roadmap

Explanation The roadmap is an important document that is used throughout the program. In Program Strategy Alignment, it is prepared for a variety of reasons among which is to establish the relationship between the program activities and the expected benefts. PMI®, The Standard for Program Management, 2013, 29 PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6

In your role of program manager for this Masters of Science degree in Program Management, your beneft realization plan includes both tangible and intangible benefts. You recognize the demand for the degree, and it in turn will lead to new income to the University. It also will enhance customer satisfaction with the University and will demonstrate to the overall project management community that it is following the trends in the profession. You expect a large number of people to enroll in the program based on the interest now in obtaining the PgMP® credential. You have seven projects in your program and are fortunate to have a PMO, and it is determining an easy but meaningful way to report on the realization of benefts from your program and then to provide this information to your stakeholders—both internal and external. By tracking the benefts during the program rather than after the degree is in place and students have enrolled offers a number of benefts in itself, one of which is—

Options are :

  • a. Provides an opportunity to publicize the program
  • b. Encourages ownership of the solution (Correct)
  • c. Ensures funding limits are not exceeded
  • d. Ensures the available information is of the highest quality

Answer : b. Encourages ownership of the solution

Explanation A regularly scheduled beneft report is essential in stakeholder communication in terms of achieving the planned benefts. It also is helpful to ensure ownership of the solution and benefts within the relevant business area, reduces the risk of “optimistic? reporting from the program team, and enables benefts reports to be available within regular management reports. Williams and Parr, 2006, 181–182

You are thinking of taking up a career in program management and are evaluating your skills and experience against the recommended requirements for professional Program Managers. Which of the following skill set is deemed the most important competancy?

Options are :

  • a. Leadership
  • b. Organizational influence
  • c. Communication (Correct)
  • d. People Skills

Answer : c. Communication

Explanation A Program Manager must have strong communication skills to deal with various stakeholders from team members to customers The Standard for Program Management Second Edition Section 1.6.1 (Page 12)

You manage a program to develop a new e-commerce program for automotive parts distributors. Your organization has established this program to keep up with competitors and to increase market share, but it has recently acquired a competitor that already has a highly regarded e-commerce program in place. Your next step is to—

Options are :

  • a. Convene a meeting of your Governance Board to terminate your program
  • b. Meet with each of your project managers to discuss an orderly transition to redeploy resources
  • c. Revisit and update your program plans (Correct)
  • d. See if you can learn from the competitor

Answer : c. Revisit and update your program plans

Explanation Acquisitions and mergers are unplanned events. When they occur, they should trigger a review of existing program plans to see whether updates are required to ensure ongoing usefulness. Planning is an iterative activity as competing priorities must be resolved to address critical factors. PMI®, The Standard for Program Management, 2013, 85

Assume your company has fully embraced program management. It has recognized and has set up a process where each program has a Governance Board with phase-gate reviews. Working with program managers, members of the Governance Board can monitor progress to maximize program success. Obviously changes will occur. The most signifcant requests involve—

Options are :

  • a. Program issues
  • b. Resource use (Correct)
  • c. Quality
  • d. Program benefts

Answer : b. Resource use

Explanation Change requests occur for a variety of reasons. Since most organizations are resource constrained, the most signifcant requests tend to be ones involving resource use, strategy, or plans. PMI®, The Standard for Program Management, 2013, 59

What is the PRIMARY purpose of creating risk categories?

Options are :

  • a. To provide structure to the risk register
  • b. To provide a consistent reporting mechanism for risk
  • c. To ensure all types of risks are considered (Correct)
  • d. To provide a framework to develop risk responses by risk category

Answer : c. To ensure all types of risks are considered

Explanation Risk categories provide a structure to ensure a comprehensive process of systematically identifying risk to a consistent level of detail, as well as contributing to the effectiveness and quality of the Identify Program Risks process. The Standard for Program Management Second Edition Section 11.1.3 (Page 164)

You are the program manager to restructure your department within your government agency. The head of the agency informed your sponsor that she wants to change the scope of the program so you will be working to restructure the entire agency instead of just one department. The Agency Administrator felt this change would be benefcial as the Agency also has to undergo some funding cuts in the next three fscal years. This represents a major change to your program. You decided before moving forward that your best course of action was to—

Options are :

  • a. Inform your team and involve them in planning the next steps
  • b. Meet with your program sponsor
  • c. Convene a meeting of your Governance Board (Correct)
  • d. Meet with the Director of the Enterprise Program Management Offce as obviously you now need additional resources for your program

Answer : c. Convene a meeting of your Governance Board

Explanation Program governance activities are conducted throughout the program life cycle. One purpose is to establish and enforce policies addressing managing program change. The Governance Board should be consulted about this major change and how best to handle it. PMI®, The Standard for Program Management, 2013, 58–59

You are the program manager for a new product development program for Company AAA. This product will serve to make sure that consumers will be able to wash all types of clothing through use of your product, and therefore, they no longer will need to spend money at dry cleaning establishments. To complete your program successfully, you have identifed fve projects. You also will require some specialized resources that are always in demand in your organization; therefore, you meet with members of your core team and subject matter experts to—

Options are :

  • a. Assign roles and responsibilities
  • b. Determine reporting relationships
  • c. Prepare a staffng management plan
  • d. Prepare a program resource plan (Correct)

Answer : d. Prepare a program resource plan

Explanation A program resource plan is prepared as an output of Resource Planning. In order to execute the program and its components, it is necessary to determine the needed resources, when they will be needed, and in what quantities. PMI®, The Standard for Program Management, 2013, 94–95

At what stage in the Project life cycle are benefits identified and qualified?

Options are :

  • a. During Program Set Up
  • b. During Program Initiation
  • c. During Pre- Program Preparations (Correct)
  • d. During early planning

Answer : c. During Pre- Program Preparations

Explanation The Standard for Program Management Second Edition Section 2.1.3 (Page 20)

As the program manager working to upgrade and integrate the back offce components of your organization’s systems, you have fve projects in your program. You realize all programs, and projects, have risks associated with them, and some of the high-level risks are in your program charter. As you prepare a risk management plan, it is essential to defne—

Options are :

  • a. Risk profles (Correct)
  • b. Market conditions
  • c. Risk management consolidation
  • d. How the risk may affect program success

Answer : a. Risk profles

Explanation In preparing the program risk management plan, it is essential to defne risk profles of the organizations involved in the program to construct the most suitable approach to manage program risk, adjust risk sensitivity, and monitor risk criticality. PMI®, The Standard for Program Management, 2013, 97

All of the following situations are symptomatic of when an organization’s capacity has been exceeded EXCEPT:

Options are :

  • a. Too much time spent on planning tasks and not enough time spent on execution tasks (Correct)
  • b. Projects that are regularly delayed
  • c. Many unresolved resource conflicts across the program
  • d. Frequent ‘emergency’ situations arising, requiring immediate action

Answer : a. Too much time spent on planning tasks and not enough time spent on execution tasks

Explanation This is not an example of organization’s exceeding capacity and initiating too many projects/programs. It is more likely to be an element of organizational culture. The Handbook of Program Management – James T. Brown (Page 199)

Assume your executive management team has requested that a standard process be put in place for a business case for new programs and projects to pursue in the organization. You are the leader of a cross-functional team that is designing this process. Your executives have stressed they wish to analyze each proposal from multiple business perspectives and want a balanced view of the business opportunity to be realized as well as the business risk to do so. The frst step in this generic process should be to—

Options are :

  • a. Determine the key milestones in the program
  • b. Defne the high-level requirements (Correct)
  • c. Establish authority, intent, and philosophy
  • d. Analyze program complexity and strategic alignment

Answer : b. Defne the high-level requirements

Explanation Business and high-level requirements need to be developed, documented, and delivered. As the business case Is prepared, the high-level requirements must be determined before moving forward as part of this initial program assessment. PMI®, The Standard for Program Management, 2013, 28 PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6 Milosevic, Dragan Z., Martinelli, Russ J., and Waddell, James M. Program Management for Improved Business Results. 2007, Hoboken, NJ: John Wiley & Sons, 150

You are a Program Manager for Program Restructure, a program that will deliver a revised business operating plan to increase efficiencies across your company’s five manufacturing sites. You are having difficulty ensuring that the program team members allocated to your program are actually working on your program. These resources were identified and allocated to the program some time ago when the program was approved. Whilst they are working on the program, they were to be managed and guided by you. However on the days that the program team members are meant to be working on the program they have other operational duties allocated to them by their operational managers. This situation is causing a lot of conflict as the program is not progressing as planned which is frustrating the other program team members and making it very difficult for the program team to continue to meet stakeholder’s expectations. What type of organizational structure is the program being completed within?

Options are :

  • a. Functional
  • b. Strong Matrix
  • c. Weak Matrix (Correct)
  • d. Balanced Matrix

Answer : c. Weak Matrix

Explanation Because there are two levels of management, operational (functional) and program, it is clear that some form of matrix structure is in use. As the Operational Manager is able to dictate when the resources are released, this is deemed a weak matrix structure.

All of the following steps are required to be completed before a program can be initiated EXCEPT:

Options are :

  • a. Developing an accountability matrix
  • b. Defining the program mission
  • c. Define the Project Management Information System (PMIS) (Correct)
  • d. Analyzing stakeholder expectations to define success criteria

Answer : c. Define the Project Management Information System (PMIS)

Explanation This is a planning process and not an initiation process. Program Management Professional Examination Specification – Domain III Planning the Program Task 5- Page 31

You are a program manager in a global software company that uses virtual teams. Work is passed 24/7 from team members on one continent to those on another continent. Since this is a complex program with a signifcant amount of associated uncertainty, changes in program direction may be needed. Recognizing this can occur on your program, you should—

Options are :

  • a. Use adaptive change (Correct)
  • b. Provide consistent messages about changes to stakeholders
  • c. Set up an approach to facilitate timely decision making about needed changes
  • d. Follow your communications management plan

Answer : a. Use adaptive change

Explanation Although the program management plan and roadmap will show the intended program direction and its benefts, the entire suite of components may not be known The program manager should provide oversight during the beneft delivery phase and if necessary replan for proper integration or changes in program direction through adaptive change. PMI®, The Standard for Program Management, 2013, 69

In evaluating alternative options for meeting business objectives, the payback period may be used. There are some concerns as regards the use of this tool. Of the statements listed below which one BEST defines one of these concerns?

Options are :

  • a. ‘Payback period’ is too simplistic to be of much value
  • b. ‘Payback period’ does not measure profitability (Correct)
  • c. ‘Payback period’ requires estimations of future cash flows
  • d. ‘Payback period’ cannot be easily updated if new information becomes known

Answer : b. ‘Payback period’ does not measure profitability

Explanation One concern is that as the payback period measure does not take into account benefits delivered after the payback period it does not measure profitability.

You are a member of your company’s Program Selection Committee, which is trying to decide which one of four programs to launch. Your company prides itself on superior quality in the automobile parts feld. Each program has prepared its business case. Proposed Program A will overlap and combine its phases, milestones, and activities. Proposed Program B will delay its schedule if necessary in a trade-off situation to ensure that quality is achieved. Proposed Program C will have a ?exible structure to ensure innovative features at a minimal cost. Proposed Program D will focus on the technical features, cost, and schedule in its metrics. You select—

Options are :

  • a. Program A
  • b. Program B (Correct)
  • c. Program C
  • d. Program D

Answer : b. Program B

Explanation Program B is quality-driven, as illustrated by its strategy to delay the schedule if necessary in a trade-off situation. Its competitive attribute is superior quality, which aligns with the organization’s culture and environment. Milosevic et al., 2007, 75–76 PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6

As the program manager on the digital yo-yo program, you realize for success on this program, you need an outstanding team, and you have been negotiating for the best and the brightest people to manage the seven identifed projects that will comprise the program and will be in your Program Management Offce. It has been a diffcult process working with the company’s department managers to obtain needed resources. You know for success you also need—

Options are :

  • a. A determination of contractor resources for your use
  • b. Agreement among the team as to the program values
  • c. Standard measurement criteria (Correct)
  • d. Risks identifed by stakeholders

Answer : c. Standard measurement criteria

Explanation On each program, standard measurement criteria for success must be defned for all consistent projects. This is done by analysis of stakeholder expectations and requirements across the projects in order to manage and control the program. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 8

Which of the following tools and techniques are LEAST LIKELY to be used in Analyse Program Risks?

Options are :

  • a. Data gathering techniques
  • b. Risk Urgency Assessment
  • c. Risk Categorization
  • d. Scenario analysis (Correct)

Answer : d. Scenario analysis

Explanation This is a tool and technique of Identify Program Risks, used to identify the potential aggregated effect of multiple uncertain events. Two categories of risk are analysed – project risks and strategic risks. The Standard for Program Management Second Edition Section 11.2.2.8 (Page 168)

Being an experienced program manager you have developed your ability to apply the appropriate leadership style, depending on the situation and experience of the team member. For team members that have been on your team previously and understand how you work and who are continuing to build their competencies, which style of situational leadership would be most appropriate?

Options are :

  • a. Delegating
  • b. Selling (Correct)
  • c. Telling
  • d. Mentoring

Answer : b. Selling

Explanation When team members are developing trust and understanding and building competencies, decisions still need some explanation and opportunities are required for clarification, Selling is the most appropriate style. Delegating is for experienced staff that is confident in their abilities and can be trusted to complete tasks without managerial input. Telling is appropriate for new staff requiring direction

Patrick has recently been appointed as Program Manager, to the Nirvana Program. Having proven himself as a project manager over the past five years, the Nirvana Program will be his first program in the role of Program Manager. Ted, Stewart and Alice are the Project Managers on the constituent projects and Mark heads up the Operations team. Being a project manager that has performed well in programs in the past, which of the following program related tasks is MOST LIKELY going to require Patrick to develop and use different skills?

Options are :

  • a. Information Distribution
  • b. Cost Control
  • c. Stakeholder Management (Correct)
  • d. Risk Monitoring and Control

Answer : c. Stakeholder Management

Explanation At program level the requirement for stakeholder management is greater – with more stakeholders, often duplicated across the projects, and including non-project stakeholders. Also as programs are usually longer in duration there is more change to the stakeholders throughout the program life cycle, new stakeholders, or changes in levels of influence and power. Managing conflicting expectations of a wider stakeholder base will require additional skills such as networking, conflict resolution, and building/utilizing his relationship capital base.

Program managers, in order to effectively manage stakeholders, need to manage a variety of stakeholders. Some stakeholders will be supportive of the program whilst others may not be supportive. Stakeholders can also be difficult to manage because of their traits. All of the following statements indicate options in dealing with a stakeholder that is deemed ‘indecisive’ EXCEPT:

Options are :

  • a. Try to identify why the stakeholder is indecisive and address these reasons over the short and long term
  • b. Clearly state the consequences for not making the decision by the date specified
  • c. Set up processes and structures that identify when the decision is required and clearly indicate the definite date for when a decision is required
  • d. Force the decision if a decision has not been made by the appropriate timeframe to show that the program due dates do not contain reserve time and cannot be extended (Correct)

Answer : d. Force the decision if a decision has not been made by the appropriate timeframe to show that the program due dates do not contain reserve time and cannot be extended

Explanation The program manager needs to allow the consequences of indecision to eventuate. This is often required before any pressure comes to bear on changing behaviour. Long term gains are best achieved by attempting to address the behaviour directly, by communicating and reporting on consequences of indecision. The Handbook of Program Management – James T. Brown (Page 62)

Assume your county government decided to move into program management as it found that a number of projects under way had interrelationships and interdependencies in terms of the benefts they were to deliver to the citizens in the county. While the county has a project management methodology, it did not have one for program management so it decided to build on the best practices in the Project Management Institute’s Standard for Program Management. As you reviewed the guidelines in The Standard for Program Management, you noted some activities are performed throughout the course of the program; an example is—

Options are :

  • a. Program Schedule Control
  • b. Benefts Realization
  • c. Program Performance Monitoring and Control (Correct)
  • d. Manage Program Issues

Answer : c. Program Performance Monitoring and Control

Explanation These activities are performed throughout the course of the program by the program manager and component management organizations. They include collecting, measuring, and disseminating performance information and assessing program trends. PMI®, The Standard for Program Management, 2013, 87

When establishing a consistent method for evaluating potential responses to risks across a program the Program Manager often comes across different attitudes to risk. Which of the following is NOT a recognised ‘risk attitude’?

Options are :

  • a. Risk Averse
  • b. Risk Seeking
  • c. Risk Avoidance (Correct)
  • d. Risk Neutral

Answer : c. Risk Avoidance

Explanation This is a risk response, rather than a risk attitude or tolerance. The Handbook of Program Management – James T. Brown (Page 189)

Working to prepare the business case for your proposed program to develop a new product to replace asphalt on your nation’s highways so maintenance will not be required, you realize the members of the Portfolio Review Board will be interested in a cost/beneft analysis, which means, you should—

Options are :

  • a. Identify tangible benefts as they can be easily quantifed
  • b. Identify direct benefts to your nation that will result from this program
  • c. Identify tangible and intangible benefts, expressing the intangible benefts in quantifable terms (Correct)
  • d. Identifying the tangible and intangible benefts showing the intangible benefts through market analysis techniques

Answer : c. Identify tangible and intangible benefts, expressing the intangible benefts in quantifable terms

Explanation The business case assesses the program’s balance between costs and benefts. The cost/beneft analysis should answer questions such as how much will the program cost to implement, how much work the program will contribute to the bottom line, and is the program worth investing in terms of achievement of specifc business objectives. It includes tangible and intangible benefts. The intangible benefts should be expressed in quantifable terms such as dollars gained or saved, hours saved, and gross margin increase. PMI®, The Standard for Program Management, 2013, 27–28 PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6 Milosevic et al., 2007, 282–283

You are excited because upon achieving your PgMP®, you have been assigned to manage a program in your motorcycle company, BCD, to design the 2025 program of vehicles to be produced. Each motorcycle is to be able to be used without helmets. Also, the motorcycles must have other safety features to make sure even in heavy traffc or inclement weather that the rider is protected, and the motorcycle must be able to travel for at least 500 miles without the need to refuel. You just prepared your benefts realization plan for this program. It will be helpful because—

Options are :

  • a. Your performance plan is tied to the benefts realization plan through the balanced scorecard approach
  • b. The benefts realization plan will involve all the key stakeholders in the program to get their buy in to each specifc project
  • c. You and your team can monitor the agreed-upon benefts until the program is completed
  • d. It will defne how and when benefts will be delivered (Correct)

Answer : d. It will defne how and when benefts will be delivered

Explanation The purpose of the benefts realization plan is to document the activities to achieve the program’s planned benefts. It thus defnes how and when benefts are to be delivered. PMI®, The Standard for Program Management, 2013, 38

As the manager of a major program in your company, you have access to various supporting resources. Your organization uses a balanced matrix organizational structure, and supporting resources come from a variety of functional departments. One member of your program team regularly prepares resource deviation reports. These reports are—

Options are :

  • a. Part of Resource Interdependency Management
  • b. Described in the resource plan
  • c. Helpful to determine if the program’s benefts will be met (Correct)
  • d. Used as part of Risk Monitoring and Control

Answer : c. Helpful to determine if the program’s benefts will be met

Explanation Program performance reports include identifcation of resource use to determine if the program’s goals and benefts will be met and summarize the components’ progress and the program’s status relative to benefts. PMI®, The Standard for Program Management, 2013, 87

As program managers create the ‘program culture’ the program manager needs to assess the value of certain program processes and confirm their use. These processes can include for example, how status reporting will be completed for the program. What is the true test of an effective process?

Options are :

  • a. The process is simple to use
  • b. The process is well understood by those performing the process
  • c. The process is used (Correct)
  • d. The process requires few resources to complete

Answer : c. The process is used

Explanation A process can be all of the other answers, however if it is not used then the process is ineffective. The Handbook of Program Management – James T. Brown (Page 96)

Assume that your ice cream product line has been offcially approved, and you are the program manager for this new program in your company. Because it is considered to be such a breakthrough program, it is ranked number three in your company. It has the support and visibility of the executive team. You are now helping to guide the initiating activities and are working on the fnancial framework. You have determined there will be a larger negative cash ?ow in the beginning than originally anticipated. This fnancial framework is useful for a number of reasons including—

Options are :

  • a. Preparing program funding schedules
  • b. Serving as a cost baseline
  • c. Determining constraints (Correct)
  • d. Describing management of risk reserves

Answer : c. Determining constraints

Explanation The fnancial framework serves as the high-level initial; plan for coordinating available funding, determining constraints, and determining how money is paid out as it describes the program funding ?ows. PMI®, The Standard for Program Management, 2013, 78–79

Whilst planning the program, the program manager has identified that the program team is currently adding more detail to the activity list for the work about to commence and at the same time are decomposing the scope at a much higher level for the work well into the future. This is an example of:-

Options are :

  • a. Scope creep
  • b. Rolling Wave planning (Correct)
  • c. Progressive decomposition
  • d. Ineffective planning processes

Answer : b. Rolling Wave planning

Explanation Rolling Wave planning is a form of progressive elaboration planning where the work to be accomplished in the short term is planned in detail whilst the work to be completed in the future is planned at a relatively high level of the work breakdown structure. A Guide to the Project Management Body of Knowledge Fourth Edition (Page 120)

If a program manager was gathering final values and comparing these to planned values for quality, cost, schedule and resource data he/she would be :-

Options are :

  • a. Preparing a performance analysis report (Correct)
  • b. Preparing for a lessons learned process
  • c. Managing stakeholder expectations
  • d. Preparing for a program status review meeting

Answer : a. Preparing a performance analysis report

Explanation The question refers to final values and therefore the program is in the closing stage. Within the Second Edition of the Standard for Program Management this final report is referred to as a ‘final program report’. The Standard for Program Management Second Edition Section 4.8.3.2 (Page 100)

Assume a new program to increase the use of social media in your engineering company was approved by the Portfolio Review Board. A number of people have expressed interest in managing this program. The program manager should be—

Options are :

  • a. The person with the knowledge, skills, and competencies best suited for the position
  • b. An individual who has attained the PgMP® and has excellent interpersonal skills in engaging stakeholders
  • c. Appointed by the Portfolio Review Board members
  • d. Assigned by the program sponsor (Correct)

Answer : d. Assigned by the program sponsor

Explanation During Program Initiation, the program sponsor is selected, and he or she assigns a program manager to conduct and manage the initial work for the program. PMI®, The Standard for Program Management, 2013, 83

Assume you are in charge of reorganizing your government agency because its funding has been cut by 50% based on the shortfall of the overall available funds in your government. To cut the funds, a number of projects and programs were terminated, and in doing so, many staff members lost their jobs. In making the decisions as to which programs to terminate, one of the considerations was—

Options are :

  • a. The number of staff members involved
  • b. The overall schedule status
  • c. The funds already allocated
  • d. The benefts report (Correct)

Answer : d. The benefts report

Explanation Programs are established to deliver benefts. A defned set of beneft reports or metrics must be prepared and reported to the PMO, Governance Board, sponsors, and other stakeholders to assess the overall health of the program to ensure successful beneft delivery. PMI®, The Standard for Program Management, 2013, 40

All of the following statements reflect responsibilities of the Program Manager EXCEPT:-

Options are :

  • a. Program managers provide direction to component Project Managers
  • b. Program managers identify and monitor interdependencies between projects
  • c. Program managers track the contribution from non-project work to the consolidated program benefits
  • d. Program Managers review component project issue registers for issues to be escalated (Correct)

Answer : d. Program Managers review component project issue registers for issues to be escalated

Explanation The component project managers are responsible for escalating issues in accordance with the defined governance of the program. Program manager’s responsibility is to deal with escalated issues – that are escalated by the project managers. The Standard for Program Management Second Edition Section 1.3 (Page 6)

As the program manager for a new line of children’s toys, called The Destroyer, because your requirements tend to be constantly changing and because some key subject matter experts have been reassigned, you realize that you already are in a position in which a portion of your budget may be depleted, and you are not yet to the halfway point of your program. Some of the toys do not pass inspection. You are becoming concerned. You need to therefore consider—

Options are :

  • a. Submitting component transition requests to your Governance Board
  • b. Requesting a quality assurance audit (Correct)
  • c. Formalizing a quality policy
  • d. Reviewing and updating the fnancial management plan

Answer : b. Requesting a quality assurance audit

Explanation As the products are not passing inspection, a quality assurance audit may be useful to assess the quality control results of the components and to see if overall program quality is being delivered as set forth in the program quality plan. PMI®, The Standard for Program Management, 2013, 93

What is the MOST APPROPRIATE action for you, as program manager, to take?

Options are :

  • a. Send an email to Steven advising him that you will continue to use the old requirements and will not be taking action to progress his change request, as the process has not been followed
  • b. Send an email to Steven requesting a face to face meeting to help resolve the problem (Correct)
  • c. Ask that the Chief Executive Officer confirm that the old requirements will be used for the program
  • d. Stamp ‘ REJECTED’ on the change request documentation and send back to Steve

Answer : b. Send an email to Steven requesting a face to face meeting to help resolve the problem

Explanation As Steven is not responding to your phone calls, it would be preferable to allow some time to let things ‘settle’, and then to work to resolve the problem together face to face. As Program Manager you need to attempt to resolve the issue directly, without involvement from senior management. Other actions would inflame the situation and are unlikely to resolve the conflict. Project Management – A Systems Approach to Planning, Scheduling and Controlling, 7th Edition – Harold Kerzner, PhD (Chapter 7)

However, as you work on this program to improve the economic growth of your country, now you have another problem. A key member of your program staff has been complaining lately of the company’s vacation policies. He would like to take more time off but has not yet accrued enough time to do so. You are concerned that he is going to leave the company, so you monitor his e-mail, in accordance with company policy, to see whether he is sending his resume to other companies. The act of sending out his resume would be called a—

Options are :

  • a. Risk trigger (Correct)
  • b. Risk event
  • c. Misuse of the company’s e-mail policy
  • d. Violation of the company’s code of ethics

Answer : a. Risk trigger

Explanation A risk trigger is a sign that a particular risk may occur. PMI®, The Standard for Program Management, 2013, 100

You have completed fve of the seven projects in your program so far to establish a Master’s Degree in Program Management. In the last meeting with the Governance Board, when it was time to transition one of the projects, this meant it was then time to hire the program director and a couple of people for supporting roles. This project had outlined all the support tasks that needed to be done and included items such as the job descriptions for the program director and his or her staff members, the criteria to use to select the program director and staff, and methods to evaluate their performance. Now the director has been hired. You therefore should as a best practice—

Options are :

  • a. Involve the new director in all meetings with all stakeholders
  • b. Ensure the new director understands the benefts of this program and how they will be sustained (Correct)
  • c. Ask the director to serve as the project manager for the two remaining projects on the program
  • d. Ask the Governance Board to add the new director to be a member to oversee the remaining projects on the program

Answer : b. Ensure the new director understands the benefts of this program and how they will be sustained

Explanation A benefts sustainment plan is required for programs. In this case, it is essential to then transition the benefts to the new program director. One approach to help sustain the benefts is to involve the new director in preparing this plan and making sure the director understands the beneft realization plan and reports prepared to date. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 13

All of the following statements are correct as regards the Monitor and Control Program Schedule process EXCEPT:

Options are :

  • a. The Monitor and Control Program Schedule process is predominately a reporting process (Correct)
  • b. The program culture/environment will significantly impact on the effectiveness of schedule control
  • c. Involves the tracking of start/finish dates of activities and milestones across the program
  • d. The Monitor and Control Program Schedule process includes processes to ensure the required deliverables and solutions are on time and within budget and specifications

Answer : a. The Monitor and Control Program Schedule process is predominately a reporting process

Explanation The Monitor and Control Program Schedule process is not a reporting process. Rather it is a proactive process, instigated early to correct slippage and take advantage of opportunities. The Standard for Program Management Second Edition Section 6.2 (Pages 131-134)

The process, Monitor and Control Program Risks, consists of all of the following EXCEPT:

Options are :

  • a. Tracking identified risks
  • b. Ensuring risk management policies are being followed
  • c. Identifying new risks, which could be unresolved project-level risks
  • d. Assessing the impact of risks as defined in the risk register (Correct)

Answer : d. Assessing the impact of risks as defined in the risk register

Explanation The assessment of risks that are listed in the risk register is completed as part of the Analyze Program Risk process. The Standard for Program Management Second Edition Section 11.5 (Page 180)

As you work to propose a program to your Portfolio Review Board to develop a new colon cancer detecting approach that does not involve any pre-preparation work or after effects to patients, you want to also to identify high-level fnancial and non-fnancial benefts for this program. You also want to make sure the benefts are congruent with the funding goals for the program as the fnancial organization will not be a passive stakeholder. One business case driver for fnancial management that often is overlooked is—

Options are :

  • a. Mission statements
  • b. Reducing risks (Correct)
  • c. Increasing effciency
  • d. Streamlining administration

Answer : b. Reducing risks

Explanation Reducing risk is essential as a business case driver for fnancial control and compliance with external requirements such as corporate reporting and mandatory audits. PMI®, The Standard for Program Management, 2013, 28 PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 6 Williams, David and Parr, Tim. 2006. Enterprise Program Management Delivering Value, Hampshire, England: Palgrave MacMillan, 124

As you work on your program to improve the economic growth of your country, you are following a program management methodology that your agency’s Center of Excellence in Program Management prepared. Your organization therefore in defning all program management activity as well as that for every deliverable and service realizes the importance of—

Options are :

  • a. Program infrastructure development (Correct)
  • b. Beneft sustainment
  • c. Stakeholder engagement
  • d. Quality management

Answer : a. Program infrastructure development

Explanation Quality management permeates program management. As noted in Program Quality Planning it should be considered when defning all program management activity and for every deliverable and service. It is recommended that a program quality manager participate in planning activities such as resource management to verify that quality activities and controls are applied and ?ow down to the component subprograms and projects even if they are performed by contractors. PMI®, The Standard for Program Management, 2013, 93

Your company has a career path in program management and has established standard competencies for the various positions. You were a project manager on the company’s virtual team in which your program developed a new product combining the capabilities of the smart phone, eBook reader, and a tablet in a single device. You managed the integration project in your program, and you were commended by the executive team and the program manager for outstanding work. Now, you are transitioning into your frst program management position. The guiding rule in your new job is to—

Options are :

  • a. Provide as much support as needed to project managers in their daily activities
  • b. Training, coaching, mentoring, and recognizing your team (Correct)
  • c. Actively manage each project until you have confdence in the project manager’s ability to do so without your continual involvement
  • d. Mentor project managers in their roles by working with them throughout their projects

Answer : b. Training, coaching, mentoring, and recognizing your team

Explanation A high-performing team is critical to success on every program. Leadership Is embedded in the program manager’s job throughout the life cycle, The program manager leads human resource functions to improve team engagement and achieve commitment to the program’s goals. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 10 PMI®, The Standard for Program Management, 2013, 15

You and your core team have identifed within the organization 17 key stakeholders, and there are approximately 33 that have a peripheral interest in your program. You know you will have other stakeholders to add to this list as program progresses. The person, or group, who is responsible for providing project resources on this program is—

Options are :

  • a. Program director
  • b. Program manager
  • c. Program sponsor (Correct)
  • d. Governance Board

Answer : c. Program sponsor

Explanation The program sponsor is the individual executive, or group of executives, who champions the program initiative, is responsible for providing project resources, and ensures the ultimate delivery of program benefts. PMI®, The Standard for Program Management, 2013, 47

Finally your program to establish the Masters of Science degree in Program Management is complete. You have completed the transition plan to the program director and his staff, and people at the University are pleased with how you managed this program and achieved the benefts in your beneft realization plan. To help future programs at the University, they asked you to identify what you believe is the value of benefts management. As a frst step you suggest that—

Options are :

  • a. Each program has an individual on the core team that is responsible for the program’s business benefts
  • b. Involving as many stakeholders as possible, both internal and external to the program, in the benefts identifcation process to help secure their buy-in to its goals and objectives
  • c. The program be set up with a viable business case that has a list of initial benefts to be achieved (Correct)
  • d. Establish from the start of the program methods to use to measure each identifed beneft and ways to track its achievement

Answer : c. The program be set up with a viable business case that has a list of initial benefts to be achieved

Explanation A business case is required for each program, and as part of it, benefts are identifed for the program. This business case should be reviewed and updated throughout the program and be realistic so people will commit to it to help achieve overall program success. Williams and Parr, 2006, 185 PMI®, The Standard for Program Management, 2013, 36

Your company is a worldwide leader in Six Sigma and the ISO 9001. Because of the importance of quality management, you appoint a member of your core program team to be responsible for quality planning on your program. At Governance Board meetings, he will often describe whether quality standards for the program are being met. The Governance Board is interested because—

Options are :

  • a. It approved the quality plan (Correct)
  • b. Quality issues are covered in reporting and control processes
  • c. It ensures consistency in program management
  • d. These standards must be met before approving component transition

Answer : a. It approved the quality plan

Explanation The Governance Board approves the quality plan, which establishes mechanisms to ensure program quality by identifying and applying cross-component quality standards. PMI®, The Standard for Program Management, 2013, 58

Now that you have moved into this program management role in your manufacturing company, you realize your work really involves active involvement with stakeholders at a variety of levels. It is also compounded because on your program you have external stakeholders involved and need to spend time communicating with this group. Additionally, your Governance Board is extremely interested in your program and wants to meet more regularly than solely at phase-gate review sessions. They have requested these other meetings in order to—

Options are :

  • a. Ensure expected benefts are in line with the original business plan
  • b. Focus on alignment of the program and your projects in it with the organization’s strategic plan
  • c. Determine if the level of risk still remains acceptable to your organization
  • d. Focus on ongoing performance and progress (Correct)

Answer : d. Focus on ongoing performance and progress

Explanation In addition to phase-gate reviews, Governance Boards tend to have less formal ‘periodic health check’ sessions to assess ongoing performance and progress especially toward the realization and sustainment of benefts. PMI®, The Standard for Program Management, 2013, 56

As a program manager for Destruct, AB, a leading defense contractor, you must determine which components should be part of your program. Your program involves the development of the next generation parachute. It is to be completely safe, easy to deploy, and available in one year at a reasonable price. Your executives want it to be completed at the time of the next Paris Air Show. When you do this, you are working in the—

Options are :

  • a. Benefts planning
  • b. Pre-program preparations
  • c. Program initiation (Correct)
  • d. Component identifcation

Answer : c. Program initiation

Explanation During the Program Initiation phase, the program components are defned and confgured to deliver the program. This phase may also include a high-level plan for all components. PMI®, The Standard for Program Management, 2013, 84

Which of the following would most likely NOT be considered a program ‘quality cost’?

Options are :

  • a. Training costs
  • b. Appraisal costs
  • c. Repair costs to make program product acceptable to the customer
  • d. Quality Circle costs (Correct)

Answer : d. Quality Circle costs

Explanation Quality Circles are an organization based group that meet to discuss quality issues and make recommendations to management. The cost of running the Quality Circle is unlikely to be attributed to a program. All other costs are types of quality costs.

Working on this program to establish a Master of Science degree in Program Management, assume you have a meeting coming up with your Governance Board in two weeks. You need to demonstrate at this stage gate review how you will report and track the benefts from your program. However, in your work in planning, you have identifed a number of key factors external to your program that affect the proposed benefts, one of which is that your leading competitor in this feld and located in your state also is looking into such a program and plans to offer it in an on-line fashion; your University only operates in a face-to-face mode. You know how important it is to track benefts and learning about this other University’s plans to offer the degree on line is a key beneft that you had not planned for but now feel it is essential. The new beneft actually represents a—

Options are :

  • a. New project
  • b. Risk opportunity (Correct)
  • c. Major issue
  • d. New program

Answer : b. Risk opportunity

Explanation Benefts realization requires analysis throughout the program. This scenario is an example of a risk opportunity, which if accepted by the Governance Board, then will lead to the need to update the beneft realization plan and also the sustainment plan. PMI®, Program Management Professional (PgMP)® Examination Content Outline, 2011, 11

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