A program manager is responsible for a program aimed at reducing operational costs through the implementation of automated processes. Midway through the program, the manager observes that the cost savings are not meeting the projected targets. What should the program manager do to address this issue?
Continue monitoring the situation without implementing changes, anticipating future improvements in cost savings.
Perform a variance analysis to determine the reasons for the cost savings shortfall and implement corrective measures.
Inform stakeholders about the shortfall and explore options to achieve the original targets.
Reevaluate the benefits realization plan and adjust cost-saving targets accordingly.
The program manager should perform a variance analysis by examining the current performance metrics related to cost savings. This involves forecasting future cost savings, analyzing the reasons for the variance, and implementing corrective measures to align the program with its benefits realization plan. This approach ensures that the program remains on track to achieve its intended benefits.
Reevaluate and adjusting the benefits realization plan only will not give the correct picture. To understand the root cause of the issue, both actual and planned data need to be analyzed using variance analysis
Continuing with the situation would be a reactive approach, informing the stakeholders is a later step
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PgMP
Benefits Management
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