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PMP Practice: Establish Governance Structure and Policies

Question 1 of 11 in Define and Establish Project Governance

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Rowan Fitzgerald-Yamamoto is managing a mobile app development project for Sriracha Storm Systems using a hybrid approach with six two-week sprints followed by a four-week deployment phase. The governance committee requires a minimum business value achievement rate of 75% to approve continued funding. The project budget is $480,000, and the total expected business value was estimated at 1,200 value points based on weighted features. After four sprints (8 weeks), the team has completed features worth 640 value points and has spent $224,000. The deployment phase will add no additional value points but is necessary to realize the accumulated value. During the governance review, the sponsor asks Lila to calculate whether the project is on track to meet the 75% value achievement threshold. What is the projected business value achievement percentage at project completion if current performance continues?

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Correct answer: 80%

Explanation

The calculation requires determining the value delivery rate during the sprint phases and projecting to completion. In 4 sprints, the team delivered 640 value points. The project has 6 total sprints, leaving 2 sprints remaining. The current rate is 640 points ÷ 4 sprints = 160 points per sprint. Projecting the final 2 sprints: 2 × 160 = 320 additional points. Total projected value at completion: 640 + 320 = 960 points. Business value achievement percentage: (960 ÷ 1,200) × 100 = 80%. This exceeds the governance threshold of 75%, so the project is on track. The deployment phase does not add value points but is necessary for realization, so it does not factor into the value calculation itself. This type of value-based metric is increasingly important in 2026 governance frameworks that emphasize outcome delivery over output delivery.

**Why not A:** A 75% result would indicate the project is exactly meeting the governance threshold, but this does not follow from the actual calculation. Arriving at 75% from the given data would require projecting only 900 total value points at completion (900 ÷ 1,200 = 75%), which is inconsistent with the current delivery rate of 160 points per sprint across the remaining two sprints. This answer represents the minimum acceptable threshold rather than the mathematically projected outcome.

**Why not B:** The 53% figure substantially understates projected performance and could result from dividing the current 640 points delivered against the total 1,200 expected value points without accounting for the two remaining delivery sprints (640 ÷ 1,200 = 53.3%). This calculation treats the current midpoint delivery as if no additional value will be generated in the remaining sprints, ignoring the linear projection that is the basis of the question.

**Why not D:** The 67% figure could result from projecting 800 total value points at completion—perhaps by incorrectly calculating the per-sprint rate or the number of remaining sprints—and then dividing by 1,200 (800 ÷ 1,200 ≈ 67%). With 4 completed sprints delivering 640 points at 160 points per sprint, and 2 remaining sprints, the correct projection is 320 additional points for a total of 960, not 800. This calculation error would incorrectly signal that the project will fall short of the 75% governance threshold.

Key Concept

This question covers Establish Governance Structure and Policies under Define and Establish Project Governance (Business Environment).

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