• The Vice President of Customer Service has expressed concern over a project in which you are involved. His specific concern is with the staff you have identified to work on a project to migrate the corporate website from the data center to the cloud. The project sponsor insists that you need to cut down on your project staff. You are the project manager. What resources do you think are really necessary for this project? How would you respond to the project sponsor to defend your staffing plan? ​

A. The VP of customer service is correct. Since the cost was not taken into account at the beginning of the project, the project should not go forward as planned. Project initiation should be revisited to examine the project plan and determine how changes can be made to accommodate customer service. B.

Explanation:

This is a tough situation for any project manager. You’ve got a problem that’s happened, and you didn’t plan for it. Now it’s going to cost you money. What do you do?

Well, you can’t just accept it and move on - that’s only something you do with risks that have no other option. You have options with a problem that happens during your project.

And you can’t just go to the boss, because you’re the project manager and it’s your job to figure out what to do. There’s no use in doing risk planning, because you already know the probability (100%) and impact (the cost of fixing the problem). So what do you do? That’s where your reserve comes in. There are two kinds of reserves: a contingency reserve and a management reserve. The contingency reserve is what you use for “known unknowns” - you use it to pay for risks that you’ve planned for. But this situation isn’t like that. That’s why you tap into the management reserve. That’s the money in the budget you set aside for “unknown unknowns” - problems that you didn’t plan for but which came up anyway.

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