CPL Strategic Planning & Execution 3 — Questions and Answers
Question 1: A program manager is preparing the strategic plan and must choose between two mutually exclusive investment options. Which framework is MOST appropriate for this decision?
- Earned value analysis
- Cost-benefit analysis with NPV comparison (Correct answer)
- RACI matrix development
- Stakeholder influence mapping
Correct answer: Cost-benefit analysis with NPV comparison
Net Present Value (NPV) comparison within a cost-benefit analysis quantifies the financial return of each option, supporting strategic investment decisions.
Question 2: In strategic execution, what does a 'capability gap analysis' reveal?
- The difference between current organizational capabilities and those required to achieve strategic goals (Correct answer)
- The variance between planned and actual project schedules
- Skill deficiencies in individual program team members
- The gap between program budget and actual expenditure
Correct answer: The difference between current organizational capabilities and those required to achieve strategic goals
Capability gap analysis compares the organization's existing capabilities with what the strategy demands, guiding program scope definition.
Question 3: Which governance artifact gives the program board the authority to approve or reject major strategic changes during execution?
- Program management plan
- Program charter
- Benefits realization plan
- Program governance plan (Correct answer)
Correct answer: Program governance plan
The program governance plan defines decision-making authority, thresholds, and escalation paths, including approval of strategic changes.
Question 4: A program's strategic objectives are described as 'increase market share by 15% within 3 years.' This is BEST classified as a:
- Key performance indicator
- SMART strategic outcome (Correct answer)
- Program milestone
- Benefit metric
Correct answer: SMART strategic outcome
The objective is Specific, Measurable, Achievable (implied), Relevant, and Time-bound, making it a SMART strategic outcome.
Question 5: During strategic planning, the program manager identifies a dependency between the program and a separate organizational initiative outside the program's control. The BEST action is to:
- Absorb the external initiative into the program scope
- Document the dependency and engage the external initiative's owner to coordinate (Correct answer)
- Raise a risk and plan for the dependency to fail
- Escalate to the sponsor to eliminate the external initiative
Correct answer: Document the dependency and engage the external initiative's owner to coordinate
Documenting and coordinating external dependencies reduces risk and creates shared accountability without overstepping program boundaries.
Question 6: Which planning horizon is MOST appropriate for a program roadmap intended to align with a 5-year organizational strategy?
- 90-day rolling plan updated weekly
- Annual milestones with quarterly reviews (Correct answer)
- Fixed 5-year detailed schedule
- Monthly deliverable tracking only
Correct answer: Annual milestones with quarterly reviews
Annual milestones with quarterly reviews balance long-term strategic alignment with the flexibility needed to adapt as conditions change.
Question 7: A program manager is asked to justify continued investment in a struggling program. Which document provides the STRONGEST strategic justification?
- Updated risk register
- Revised benefits realization plan showing remaining value (Correct answer)
- Revised project schedule baseline
- Stakeholder communication log
Correct answer: Revised benefits realization plan showing remaining value
A revised benefits realization plan demonstrating that remaining benefits still justify the investment provides the strongest case for continued funding.
CPL Strategic Planning & Execution 3
A program manager is preparing the strategic plan and must choose between two mutually exclusive investment options.
Which framework is MOST appropriate for this decision?