Benefits Definition PGMP Practice Questions (Page 1)

Questions 1–5

1. 1application · medium

   During a program to consolidate data centers, the infrastructure team discovers a more efficient cooling method that reduces energy consumption by an additional 5% beyond the original estimate. The benefits realization plan already includes an energy reduction benefit. What should the program manager do?

   • AVerify the efficiency is sustainable before updating the plan
   • BInform the sponsor but do not change the plan to avoid scope creep
   • CUpdate the energy reduction target in the benefits plan to reflect the new efficiency
   • DKeep the original target and report the additional saving as a separate operational achievement
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2. 2expert · hard

   A retail chain's program to implement a unified inventory system will reduce stockouts. The program manager needs to set a baseline for the 'stockout rate' benefit. Historical data shows the rate fluctuates seasonally: 8% in Q4 (holiday season) and 4% in Q2. The program will run for 18 months, starting in Q1. What is the most appropriate baseline approach?

   • AUse the annual average of 6% as the baseline for all quarters
   • BEstablish separate quarterly baselines (8% for Q4, 4% for Q2, and interpolated values for Q1 and Q3)
   • CUse the highest historical rate (8%) as the baseline for all periods to set a conservative target
   • DDefer baseline setting until the first quarter of program data is collected
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4. 3foundation · easy

   What is the role of a benefits baseline in program management?

   • ATo identify potential risks to benefit realization
   • BTo define the program's scope and deliverables
   • CTo allocate resources to program components
   • DTo serve as a reference point for measuring progress and performance
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5. 4application · medium

   A telecommunications company is launching a program to improve customer retention. The program manager is developing the benefits realization plan. The strategic objective is to 'increase customer loyalty.' The program manager needs to define the expected benefits and how they will be achieved. Which action best aligns with the benefits realization plan development?

   • AAsk the sponsor to define the benefits to ensure alignment with corporate strategy
   • BList 'increased customer loyalty' as the sole benefit and describe the program components
   • CDefine the benefit as 'increase customer retention rate from 85% to 90% within 18 months' and outline the components contributing to it
   • DFocus the plan on the program's deliverables and assume benefits will follow
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6. 5application · medium

   A program's benefits realization plan has been updated to include a new synergy that increases the expected benefit of a component. The program manager needs to communicate this to stakeholders. Which stakeholders should be included in this communication?

   • AAll stakeholders who are affected by or can influence the benefit
   • BOnly the sponsor and the steering committee
   • COnly the program management office (PMO) for documentation
   • DOnly the component teams responsible for delivering the benefit
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