A multi-year digital transformation program is at a critical phase-gate review. Financial reports show a 15% budget overrun for the phase, causing concern among some stakeholders. However, initial KPIs indicate the program is on track to deliver its projected long-term strategic benefits, and key risks are well-managed. As the program manager, what should be emphasized to the governance board as the primary justification for a 'go' decision?
The program's continued alignment with strategic objectives and its performance on benefits realization KPIs.
The positive feedback from key stakeholders regarding the program's initial deliverables and team performance.
A report showing successful mitigation of all identified high-priority risks ahead of schedule.
A detailed recovery plan to bring the program back within its original budget constraints in the next phase.
The primary purpose of a program is to deliver benefits and achieve strategic objectives. Therefore, the most important factor in a go/no-go decision is the program's continued alignment with strategy and its performance against benefits realization KPIs. While budget, stakeholder satisfaction, and risk management are critical components of program management, they support the ultimate goal of strategic benefit delivery. A budget recovery plan is important but addresses a constraint, not the program's value. Stakeholder satisfaction is a key metric but may not reflect the full strategic picture. Successful risk mitigation is essential for protecting value but does not in itself create value.
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PgMP
Governance
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