Change Management Business Revision 4

Question 1

A business undergoing revision implements a 'pilot program' before full rollout. The primary purpose is to:

Accepted Answer

Test the change in a controlled environment to identify issues before scaling

Answer

A pilot program tests changes on a small scale, allowing organizations to identify problems and refine the approach before full deployment.

Question 2

During a business revision, which stakeholder group typically has the highest formal authority to approve major structural changes?

Accepted Answer

The board of directors

Answer

The board of directors holds the highest formal governance authority in a corporation and must approve major structural or strategic changes.

Question 3

A company revising its supply chain strategy applies the 'make-or-buy' decision framework. This involves deciding whether to:

Accepted Answer

Produce goods internally or outsource production to external suppliers

Answer

The make-or-buy decision determines whether it is more efficient and cost-effective to produce something in-house or purchase it from a third party.

Question 4

In business revision, a 'gap analysis' is used to:

Accepted Answer

Identify the difference between current performance and desired future performance

Answer

Gap analysis compares current state to the target state to identify what needs to change to achieve organizational goals.

Question 5

A business revision team uses a RACI matrix. What does 'I' stand for?

Accepted Answer

Informed

Answer

In a RACI matrix, 'I' stands for Informed — those who are kept up to date on decisions and progress but are not directly involved.

Change Management Practice Test