A program manager for a global ERP implementation is preparing for a phase-gate review. The program has successfully deployed in one region, but exceeded its budget by 15% due to unforeseen regulatory hurdles. To secure approval for the next phase from the governance board, which action is most critical?
Present an updated business case highlighting benefits realized, explaining the budget variance with a revised forecast, and outlining the risk mitigation plan.
Request additional contingency funds to cover potential overruns in the next phase without detailing the root cause of the current variance.
Focus the presentation on the technical success of the first deployment and positive feedback from regional users to build confidence.
Propose a scaled-down scope for the next phase to ensure the program remains within the original total budget.
The most critical action is to present a comprehensive, updated business case to the governance board. This demonstrates strategic leadership by transparently addressing the budget variance, quantifying the benefits realized to date, updating financial projections, and outlining a clear risk mitigation strategy for future phases. This allows the board to make an informed decision based on a complete picture of program performance and its continued strategic value. Focusing only on successes is misleading, requesting funds without explaining the variance is irresponsible, and unilaterally de-scoping the program usurps the governance board's authority.
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PgMP
Governance
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