PgMP ® Exam Practice Test & Study Guide Third Edition ESI International Project Management Series Series Editor J. LeRoy Ward, Executive Vice President ESI International , Arlington, Virginia Project Management for Healthcare David Shirley 978-1-4398-1953-1 Managing Web Projects Edward B. Farkas 978-1-4398-0495-7 Project Management Recipes for Success Guy L. De Furia 978-1-4200-7824-4 A Standard for Enterprise Project Management Michael S. Zambruski 978-1-4200-7245-7 Determining Project Requirements Hans Jonasson 978-1-4200-4502-4 The Complete Project Management Office Handbook, Second Edition Gerard M. Hill 978-1-4200-4680-9 PROGRAM MANAGEMENT TITLES AVAILABLE FROM AUERBACH PUBLICATIONS, TAYLOR & FRANCIS GROUP PgMP ® Exam: Practice Test and Study Guide, Third Edition Ginger Levin, and J. LeRoy Ward ISBN: 978-1-4665-1362-4 Program Management Complexity: A Competency Model Ginger Levin, and J. LeRoy Ward 978-1-4398-5111-1 Implementing Program Management: Templates and Form Aligned with the Standard for Program Management—Second Edition (2008) Ginger Levin and Allen R. Green 978-1-4398-1605-9 Other ESI International Titles Available from Auerbach Publications, Taylor & Francis Group PMP ® Challenge! Fourth Edition J. LeRoy Ward and Ginger Levin ISBN: 978-1-8903-6740-4 PMP ® Exam: Practice Test and Study Guide, Seventh Edition J. LeRoy Ward ISBN: 978-1-8903-6741-1 The Project Management Drill Book: A Self-Study Guide Carl L. Pritchard ISBN: 978-1-8903-6734-3 PgMP ® Exam Practice Test & Study Guide Third Edition Ginger Levin, PMP, PgMP J. LeRoy Ward, PMP, PgMP Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business A N A U E R B A C H B O O K Parts of A Guide to the Project Management Body of Knowledge, 2008, are reprinted with permission of the Project Management Institute, Inc., Four Campus Boulevard, Newtown Square, Pennsylvania 19073-3299 U.S.A., a worldwide organization advancing the state of the art in project management. Parts of The Standard for Program Management, 2008, are reprinted with permission of the Project Management Institute, Inc., Four Campus Boulevard, Newtown Square, Pennsylvania 19073-3299 U.S.A., a worldwide organization advancing the state of the art in project management. “OPM3” is a trademark of the Project Management Institute, Inc., which is registered in the United States and other nations. “PgMP” is a certification mark of the Project Management Institute, Inc., which is registered in the United States and other nations. “PMBOK” is a trademark of the Project Management Institute, Inc., which is registered in the United States and other nations. “PMI” is a service and trademark of the Project Management Institute, Inc., which is registered in the United States and other nations. “PMP” is a certification mark of the Project Management Institute, Inc., which is registered in the United States and other nations. CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2012 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20111216 International Standard Book Number-13: 978-1-4665-1365-5 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com v Contents Preface vii Acknowledgments ix Introduction xi About the Authors xiii List of Acronyms xv Strategic Program Management 1 Initiating the Program 23 Planning the Program 41 Executing the Program 61 Controlling the Program 79 Closing the Program 97 Benefits Management 113 Stakeholder Management 131 Governance 149 Practice Test 1 167 Answer Sheet for Practice Test 1 235 Answer Key for Practice Test 1 239 Practice Test 2 277 Answer Sheet for Practice Test 2 349 Answer Key for Practice Test 2 353 Appendix: Study Matrix 389 Study Matrix—Practice Test 1 391 Study Matrix—Practice Test 2 401 References 411 vii Preface Based on our experience in helping people to prepare for the PMP ® Exam, weknow that you will have questions, such as “What topics are covered on the exam?” and “What are the questions like?” Not surprisingly, some of the most sought-after study aids are practice tests, which are helpful in two ways (1) taking practice tests increases your knowledge of the kinds of questions, phrases, terminology, and sentence construction that you will encounter on the real exam; and (2) taking practice tests provides an opportunity for highly concentrated study by exposing you to a breadth of program management content generally not found in a single reference source.* We developed this specialty publication with one simple goal in mind—that is, to help you study for and pass the PgMP ® certification exam. Because the Project Management Institute (PMI ® ) does not sell past exams for prospective certification purposes, the best option is to develop practice test questions that are as representative as possible. And that is exactly what we have done. This guide contains study hints, a list of exam topics, and multiple-choice questions for each of the five domains covered in the PgMP ® exam, according to the Program Management Professional (PgMP ® ) Examination Content Outline (April 2011). We have prepared 20 practice questions in each of these five domains. For the Program Life Cycle domain, we have prepared 20 questions for each of the five phases in the life cycle. We have also included two 170-question representative practice tests. As we have done in our other PgMP ® Exam Practice Test & Study Guide books, we have included a plainly written rationale for each correct answer along with a supporting reference list. References are provided at the end of this study guide for the five domains covered in the exam: Strategic Program Management, Program Life Cycle, Benefits Management, Stakeholder Management, and Governance. “PMP” is a certification mark of the Project Management Institute, Inc., which is registered in the United States and other nations. “PgMP” is a certification mark of the Project Management Institute, Inc., which is registered in the United States and other nations. “PMI” is a service trademark of the Project Management Institute, Inc., which is registered in the United States and other nations. viii ◾ Preface The questions are scenario based, as those on the PgMP ® exam. While some are definition questions, they are based on a scenario. For those who speak English as a second language (ESL), our experience in presenting program and project management courses around the world has shown that most of our ESL clients understand English well enough to pass the PgMP ® exam as long as they know the content. Nevertheless, in an effort to avoid adding to your frustration before taking the exam, we have painstakingly reviewed each question and answer in the practice tests to ensure that we did not use words, terms, or phrases that could be confusing to people who are not fluent in English. Although the language issue may concern you, and rightfully so, the only difference between you and those who speak English as their first language is the amount of time it takes to complete the exam. Ifyou can grasp the content expressed in this publication, then we believe that a few colloquialisms or ambiguous terms on the real exam ultimately will not determine whether you pass or fail. Your subject matter knowledge will do that. Earning the PgMP ® certification is a prestigious accomplishment, but studying for it should not be difficult if you use the tools available. Good luck on the exam! Dr. Ginger Levin, PMP, PgMP Lighthouse Point, Florida J. LeRoy Ward, PMP, PgMP New York, New York ix Acknowledgments We want to acknowledge the efforts of our publisher, CRC Press, and especially that of Mr. John Wyzalek. Randy Burling, Joselyn Banks-Kyle, and the entire CRCteam who worked tirelessly to publish this book so it would be available according to the release of the new PgMP ® exam from PMI ® . [...]... ensure their support for the program Specific benefits for the program also should be part of the business case and are part of this domain even though benefits management is another domain in the exam Benefits are the outcomes of the program and in identifying them, * Please note that Strategic Program Management is not one of the Program Management Process Groups described in The Standard for Program Management, ... incorporated with program reporting This integrated program management plan then provides visibility and ownership at the sponsor level and at the delivery level PMI®, The Standard for Program Management, 2008, 23, 31, and 109 9 b The strategic nature of the program to the company During the Pre -Program Preparations phase and in Strategic Program Management, programs are initiated to achieve the organization’s...Introduction The Program Management Professional (PgMP®) Exam Practice Test & Study Guide includes five sections, each of which corresponds to one of the five domains described in the Program Management Professional (PgMP®) Examination Content Outline (April 2011) Each section contains study hints, a list of major topics that are encountered on the exam, and 20 multiple-choice practice... Organizational Project Management Maturity Model PDA: Personal Digital Assistant PERT: Program Evaluation and Review Technique PgMP®: Program Management Professional PMBOK® Guide: A Guide to the Project Management Body of Knowledge PMI®: Project Management Institute PMIS: program management information system PMO: program management office xv xvi ◾ List of Acronyms PMP®: Project Management Professional. .. chapter within the Standard for Program Management However, in the Standard, many of the items in this domain are in the Pre -Program Preparations Phase You should study the contents regarding this phase in the Standard but recognize now it contain a far broader treatment Following is a list of the major topics in the Strategic Program Management domain Use this list to focus your study efforts on the areas... PgMP® Exam Practice Test and Study Guide 14 You are a functional manager in your organization, the head of the Department of Engineering, and a member of the Selection Committee for new programs At the committee meetings, you review potential programs One key factor that you consider as to whether to approve the program is the a b c d Who will be the program manager? What is the preliminary budget... contributor to ESI’s PMP® Study Guide Dr Levin is a member of the Project Management Institute (PMI®) and a frequent speaker at PMI® Congresses and Chapters and the International Project Management Association She is certified by PMI® as a Project Management Professional (PMP®), and a Program Management Professional (PgMP®) , and she was the second person in the world to earn the PgMP® designation She is... initiating the program and for planning it The people who will plan the program will not necessarily end up on the core program team PMI®, The Standard for Program Management, 2008, 23 PMI Program Management Professional (PgMP)® Examination Content Outline, April 2011 6 18 b Benefits identification Benefits management directs business change As a program manager, you identify and qualify the business... constraints, and assumptions PMI®, The Standard for Program Management, 2008, 9 5 b Define the expected benefits in the business case Each project has certain benefits associated with it The expected benefits are defined in the project business case before the project is initiated PMI®, The Standard for Program Management, 2008, 257 18 ◾ PgMP® Exam Practice Test and Study Guide 6 a Use focus groups Focus... likely to appear on the exam Strategic Program Management ◾ 3 Major Topics Project, program, and portfolio definitions Program management definition Relationships between— ◾◾ Program management and portfolio management ◾◾ Program management and project management Program factors ◾◾ Organizational process assets ◾◾ Enterprise environmental factors ◾◾ Enterprise external factors Program management as part . xv Strategic Program Management 1 Initiating the Program 23 Planning the Program 41 Executing the Program 61 Controlling the Program 79 Closing the Program 97 Benefits Management 113 Stakeholder Management. are the outcomes of the program and in identifying them, * Please note that Strategic Program Management is not one of the Program Management Process Groups described in The Standard for Program. available according to the release of the new PgMP ® exam from PMI ® . xi Introduction The Program Management Professional (PgMP ® ) Exam Practice Test & Study Guide includes five sections,