PGM Performance Measurement and Improvement 3 — Questions and Answers
Question 1: A program manager uses a traffic light reporting system where projects show red, yellow, or green status. A project lead reports green status despite missing two milestones. What should the program manager do?
- Accept the green status since the project lead is accountable
- Establish clear, objective criteria for status thresholds to prevent subjective reporting (Correct answer)
- Escalate immediately to the sponsor without further investigation
- Change all projects to yellow as a precaution
Correct answer: Establish clear, objective criteria for status thresholds to prevent subjective reporting
Defining objective, measurable thresholds for each status color ensures consistent and accurate reporting across all projects in the program.
Question 2: What is the key difference between a leading indicator and a lagging indicator in program performance measurement?
- Leading indicators measure cost; lagging indicators measure schedule
- Leading indicators predict future performance; lagging indicators reflect past results (Correct answer)
- Leading indicators are used by executives; lagging indicators are used by project teams
- Leading indicators are always quantitative; lagging indicators are always qualitative
Correct answer: Leading indicators predict future performance; lagging indicators reflect past results
Leading indicators are predictive and allow proactive intervention, while lagging indicators confirm what has already occurred after the fact.
Question 3: Which improvement methodology focuses on reducing defects to 3.4 per million opportunities?
- Agile Scrum
- Six Sigma (Correct answer)
- PRINCE2
- Critical Chain Method
Correct answer: Six Sigma
Six Sigma targets near-perfect quality by reducing defects to 3.4 per million opportunities using DMAIC or DMADV methodologies.
Question 4: A program manager reviews the To-Complete Performance Index (TCPI) and finds it is 1.25. What does this mean?
- The program will finish 25% under budget at current performance
- The remaining work must be completed at 125% efficiency to meet the budget baseline (Correct answer)
- The program has already spent 25% more than planned
- The schedule variance is positive by 25%
Correct answer: The remaining work must be completed at 125% efficiency to meet the budget baseline
A TCPI of 1.25 means the team must execute remaining work 25% more efficiently than originally planned to stay within the budget at completion.
Question 5: In a program retrospective, the team identifies recurring issues with handoffs between projects. Which tool is best suited to visualize and analyze this process inefficiency?
- Gantt chart
- Value stream mapping (Correct answer)
- RACI matrix
- Risk probability matrix
Correct answer: Value stream mapping
Value stream mapping visually depicts the flow of work and identifies waste, delays, and inefficiencies in handoff processes.
Question 6: A key performance indicator (KPI) has been stable for six months but stakeholders feel it no longer reflects program success. What should the program manager do?
- Keep the KPI since it is stable and well understood
- Work with stakeholders to review and refresh KPIs to ensure they remain aligned with strategic objectives (Correct answer)
- Add more KPIs without removing the existing one
- Delegate KPI selection entirely to the PMO
Correct answer: Work with stakeholders to review and refresh KPIs to ensure they remain aligned with strategic objectives
KPIs should be periodically reviewed and updated to ensure they continue to measure what matters most as program goals and context evolve.
Question 7: Which statistical tool is most commonly used to identify which defects or problems account for the majority of negative program outcomes?
- Control chart
- Pareto chart (Correct answer)
- Scatter diagram
- Histogram
Correct answer: Pareto chart
A Pareto chart applies the 80/20 rule to show that a small number of causes typically account for the majority of problems or defects.
PGM Performance Measurement and Improvement 3
A program manager uses a traffic light reporting system where projects show red, yellow, or green status.
A project lead reports green status despite missing two milestones.
What should the program manager do?