PgMP Practice Questions #1
During the program delivery phase, a key stakeholder raises concerns about the rising trend of input costs and requests an update on how these changes are impacting overall program costs and benefits realization. As the program manager, which of the following would be the most appropriate document to provide?
A. Market Analysis Report
B. Program Performance Reports
C. Cost-Benefit Analysis
D. Program Business Case
Analysis
In the program delivery phase, the key consideration is maintaining an accurate and up-to-date view of the program’s progress, costs, and benefits, especially when input costs fluctuate. The program manager should reference a document that reflects current program performance and cost status, focusing on ongoing evaluation rather than the initial program justification.
Options Analysis:
Option A: Market Analysis Report: The Market Analysis Report provides insights into external market trends, which is valuable during the program formulation phase to validate the business case. However, since the question specifies the program delivery phase, the stakeholder’s concern about input costs is better addressed by focusing on internal, ongoing program data rather than broad market trends. Therefore, this option is not the most relevant for updating the stakeholder on current program costs and benefits realization.
Option B: Program Performance Reports: Program Performance Reports are ideal in this scenario because they provide up-to-date information on the program’s current status, including costs, schedule, and benefits realization, which is exactly what the stakeholder is seeking. During the program delivery phase, the focus is on monitoring ongoing performance rather than revisiting initial justifications. Program Performance Reports offer regular updates, enabling the program manager to assess current trends, such as rising input costs, and their effects on the program’s costs and benefits. Unlike documents focused on planning or broader assessments, Program Performance Reports track active metrics relevant to the program’s progress, directly addressing the stakeholder’s concerns about how these cost increases are impacting the overall program outcome.
Option C: Cost-Benefit Analysis: The Cost-Benefit Analysis compares the program’s costs with anticipated benefits and is generally created early in the program, typically during the formulation phase, to establish financial viability. It’s also revisited when there are significant shifts or changes in the program’s direction. However, in this scenario, the stakeholder is requesting an update on the real-time impact of rising input costs during the delivery phase, not a broad reassessment of the program’s financial justification. As a result, this document does not provide the immediate, ongoing cost and benefit data needed, making it unsuitable for addressing the stakeholder’s concerns here.
Option D: Program Business Case: The Program Business Case establishes the initial justification and anticipated benefits of the program. It is relevant in the initial stages and rarely revisited in the program delivery phase for routine updates on ongoing performance. Since the stakeholder seeks information on current costs rather than a justification, this document would not satisfy their request.
Conclusion
The most appropriate document to provide in this scenario is Option B – Program Performance Reports. Program Performance Reports offer an up-to-date summary of the program’s progress, including information on costs, schedule, benefits realization, and any risks or issues under consideration. This aligns directly with the stakeholder’s request for an update on the impact of rising input costs on overall program costs and benefits. These reports enable the program manager and stakeholders to assess the likelihood of achieving planned outcomes and make informed predictions about the program’s future state based on the latest available information.
According to The Standard for Program Management, 5th Edition (Page 162): “Program performance reports include a summary of the progress of all program components. They describe whether the program’s goals can be met and benefits should be delivered according to plan. These reports provide current status information about what work has been accomplished; milestones and phase gates; what work remains to be completed; earned value; and risks, issues, and changes under consideration. Forecasts enable the program manager and other key stakeholders to assess the likelihood of achieving planned outcomes and to provide predictions of the program’s future state based on the current information and knowledge available.”
PgMP Certification Exam Content Outline Mapping
| Domain | Task |
|---|---|
| Governance | Task 5: Develop and/or utilize the program management information system), and integrate different processes as needed, in order to manage program information and communicate status to stakeholders. |
Topics Covered
- Governance in Program Management
- Program Performance Reporting
- Stakeholder Communication
- Program Management Information System (PMIS)
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