After new private equity owners acquire an enterprise, they want to improve its value by reducing costs. A new program will restructure the enterprise, including an aging headquarters campus where the main data center is housed. A strategic component project presents significant risk to organizational objectives due to its complexity and dependencies on external parties. After a series of board meetings, the enterprise's investment committee approves a budget to implement this component project, which will move the old data center from the aging headquarters campus into a new colocation facility. Implementation of this component project may now begin, but is already one month behind schedule. The program manager now perceives significantly more risk to the larger program due to this delay.
What should the program manager do to address this risk with the program sponsor and governance board?

Question

After new private equity owners acquire an enterprise, they want to improve its value by reducing costs. A new program will restructure the enterprise, including an aging headquarters campus where the main data center is housed. A strategic component project presents significant risk to organizational objectives due to its complexity and dependencies on external parties. After a series of board meetings, the enterprise's investment committee approves a budget to implement this component project, which will move the old data center from the aging headquarters campus into a new colocation facility. Implementation of this component project may now begin, but is already one month behind schedule. The program manager now perceives significantly more risk to the larger program due to this delay.

What should the program manager do to address this risk with the program sponsor and governance board?

Marcos Davila · Accepted Answer

Update the component project's risk register, issue log, implementation plan, and risk management plan. Next, meet with the program sponsor to revise the program budget, implementation plan, and risk management plan forgovernance board approval.

Marcos Davila · Answer

Share the concerns with the program sponsor to confirm understanding of the new development. Next, update the program budget, implementation plan, and risk management plan for governance board approval.

Marcos Davila · Answer

Revise the program budget, and implement the component project by managing it closely to recover the month-long delay. Next, update the component's project and risk management plans for governance board approval.

Marcos Davila · Answer

Update the program budget, and task the component project manager with implementing the plan. Next, submit a change order for approval to apply more resources to reduce the larger program's risk profile.

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