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PMP Practice: Plan and manage resources

Question 4 of 5 in Plan and Manage Budget and Resources

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Tendai Moyo-Chibwe is managing a regulatory compliance software implementation for Björn Magnússon Pooja Iyer-Reddy. The project baseline includes 8 months for development and a fixed budget of $720,000. During month four, the compliance officer requests adding automated fraud detection features, citing recent regulatory guidance that strongly recommends such capabilities. The development lead estimates this would require two additional senior developers for three months at $18,000 per month each, pushing the budget to $828,000. The CFO has made it clear that budget overruns require board approval, which typically takes 6-8 weeks. The compliance officer emphasizes that competitors have already implemented similar features and regulatory audits begin in four months. Kai has confirmed that the original scope would still meet minimum regulatory requirements. What should Tendai do?
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Correct answer: Document the request as a formal change request, assess the impact on schedule and budget, and present options to the change control board including descoping lower-priority features to fund the addition within the existing budget

Explanation

This scenario presents a classic tradeoff between scope enhancement and baseline constraints. The project manager must balance the compliance officer's legitimate business concern with the CFO's budget constraints and the project's baseline commitments. Option A is correct because it follows proper change management procedures while exploring creative solutions. By formally documenting the request and presenting options to the change control board—including the possibility of descoping lower-priority features to accommodate the new fraud detection capabilities within the existing budget—Kai provides stakeholders with informed choices rather than making unilateral decisions. The scenario establishes that the original scope meets minimum requirements, which means there may be negotiable elements. This approach respects governance, maintains transparency, and enables stakeholders to make an informed tradeoff decision. The change control board exists precisely to evaluate such competing priorities and determine whether the business value justifies scope, schedule, or budget adjustments.

**Why not B:** While seeking budget approval may ultimately be necessary, immediately pursuing an 8-week board approval process conflicts with the 4-month audit timeline. This approach ignores the possibility of budget-neutral solutions through descoping and jumps to the most disruptive option without exploring alternatives. The change control board should evaluate options first, and attempting to 'accelerate' a board governance process without their involvement is presumptuous.

**Why not C:** While deferring to Phase 2 respects the baseline, this approach dismisses the compliance officer's concerns too quickly without proper analysis. The scenario indicates competitors have already implemented these features and audits begin in four months, suggesting timing matters. Additionally, making this decision unilaterally bypasses the change control board, which should evaluate whether the business justification warrants baseline changes. The PM should present options, not make strategic decisions independently.

**Why not D:** Reducing testing time to accommodate scope changes is a dangerous tradeoff, especially for regulatory compliance software where quality defects could have serious legal and financial consequences. This approach violates change control procedures by making unauthorized scope and quality tradeoffs. Even though regulatory expectations are important, the scenario confirms the original scope meets minimum requirements, so sacrificing quality to add optional features is unjustified. This represents scope creep through informal accommodation rather than proper change management.

Key Concept

This question covers Plan and manage resources under Plan and Manage Budget and Resources (Process).

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