The IT Program Manager's Dilemma: Risk Assessments and Budget Management in New IT Projects
Question
The IT program manager does not see the value of conducting risk assessments for a new major IT project.
The manager is reluctant to cooperate with internal auditors and the newly formed steering committee.
Midway through the project, program requirements were changed because the CEO is a friend of a vendor and wants to implement this vendor's new technology.
This decision will cause the current IT program budget to be insufficient and will be shown as overspending, After the requirement change request, the IT program manager should FIRST:
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A. B. C. D.B.
The situation described in the question is a classic example of the importance of conducting risk assessments in IT projects. The IT program manager, in this case, does not see the value of conducting risk assessments, which may lead to significant project failures, such as overspending, scope creep, and failure to meet project objectives.
The first step the IT program manager should take is to report the matter to internal audit as a program deviation to be reviewed. The program deviation report should contain all the relevant details about the change request, including the potential impact on the project budget, schedule, and scope. The internal audit team will review the report and provide recommendations on how to proceed.
Obtaining confirmation from the business and a decision by the steering committee is also an essential step in the process. The IT program manager needs to align IT with the business and ensure that all stakeholders are aware of the change request and the potential impact on the project. The steering committee is responsible for overseeing the project and ensuring that it meets the organization's objectives. Therefore, their input and decision-making authority are critical to the success of the project.
Aligning IT with the business and agreeing to the business request may not be the best option in this scenario. The IT program manager needs to assess the potential impact of the change request on the project's budget, schedule, and scope. If the change request will cause overspending, the IT program manager should request additional funding from the business owner to cover the additional scope. This option is viable only if the business owner agrees to the request.
In conclusion, the IT program manager should report the matter to internal audit as a program deviation to be reviewed, obtain confirmation from the business and a decision by the steering committee, and request additional funding from the business owner to cover the additional scope. This approach will ensure that the project stays on track and meets the organization's objectives.
