A project manager is leading a project to develop a new internal training platform. The primary benefit of this project is to reduce external training costs by 30% within two years of launch. During project execution, the HR department, a key stakeholder, indicates that due to a company-wide restructuring, the need for this specific training platform has significantly diminished, and alternative, cheaper solutions are now available. What should the project manager prioritize?
- ACompleting the project as initially planned to meet the original scope.
- BReducing the project scope to a minimum viable product to save costs.
- CEngaging with the HR department and project sponsor to re-evaluate the project's business case and expected benefits.
- DAccelerating the project schedule to launch before the alternative solutions gain traction.
Show answer & explanationAnswer & explanation
Correct answer: C. Engaging with the HR department and project sponsor to re-evaluate the project's business case and expected benefits.
The core purpose of any project is to deliver value and benefits. When an external change (company restructuring and availability of cheaper alternatives) significantly diminishes the project's original benefits, the project manager's priority must be to re-evaluate the business case with key stakeholders to determine if the project still aligns with organizational needs and provides sufficient value.
Why the other options are wrong
- A. Completing a project that no longer delivers its intended value is a waste of resources, regardless of meeting original scope.
- B. While reducing scope might save costs, it doesn't address the core problem if the project's overall value proposition has been eroded. A re-evaluation is needed first.
- D. Accelerating a project whose benefits are diminished does not address the fundamental issue of reduced value and may lead to further wasted effort.
Business Case Re-evaluation
The process of reviewing and updating a project's foundational justification (business case) when significant internal or external changes impact its expected value or strategic alignment.
- Ensures ongoing project viability and relevance.
- Triggered by changes affecting benefits or costs.
- Requires stakeholder collaboration and potential project termination/re-scoping.
Memory trick: Benefits fade? Business case must be faced.