Question

Suppose that you have been assigned as the project manager to execute a project that was selected using the sacred cow method of project selection. The project sponsor is an executive who has been with the company for three years. Based on past employment history, the average tenure of a senior executive at your company is 5 years. After reviewing the project's expectations and requirements, the project team has determined that the payback period will be 3.5 years. What are the implications for you and the project team?

a) High likelihood of project success
b) High likelihood of project failure
c) The project may be at risk due to the sponsor's potential departure
d) No implications for the project

Answer 1

The implication for your project that has a longer payback period than the project sponsor's expected tenure is that the project may be at risk due to the potential departure of the sponsor, thus requiring strong buy-in and adaptability from the team.

Step-by-step explanation:

If you are working on a project that was selected using the sacred cow method and the project sponsor is an executive with an average remaining tenure that is less than the project's payback period, the implication for you and the project team is c) The project may be at risk due to the sponsor's potential departure. In such circumstances, it is essential to understand the organizational chart and secure buy-in from stakeholders. Additionally, developing a plan with clear milestones and adapting it over time can help navigate the uncertainties and maintain the project's momentum. Fostering relationships with the team and stakeholders, along with achieving technical goals, is also vital for success.

The implications for you and the project team are that the project may be at risk due to the sponsor's potential departure. The average tenure of a senior executive at your company is 5 years, and the project sponsor has been with the company for 3 years. Since the payback period for the project is 3.5 years, it is possible that the project may not be completed before the sponsor leaves the company, which could put the project at risk.