A retail company is implementing a supply chain optimization project using a hybrid approach. The warehouse management system replacement follows a predictive plan, while demand forecasting algorithms are developed iteratively with data science teams. The project is structured with separate governance for each stream—a steering committee for predictive work and a product owner for adaptive work. During month four, these two governance bodies make conflicting decisions: the steering committee approves a scope change that delays warehouse deployment by two months, while the product owner commits to delivering forecasting features to merchants by the original warehouse go-live date. What should the project manager do FIRST?

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Accepted Answer

The correct answer is A. Option A is correct because the immediate problem is lack of integration and communication between the two governance streams—the project manager's role is to facilitate alignment and ensure both governance bodies understand the dependencies and impacts of their decisions on the overall solution. Hybrid projects require integrated governance even when different streams have different decision-making processes. Option B is wrong because it assumes hierarchy between governance approaches rather than integration; giving automatic precedence to predictive governance ignores the legitimate business commitments made through the adaptive stream and could damage stakeholder relationships. The project manager must ensure coordinated decision-making that considers the integrated nature of the solution (ECO Business Environment Task 1.2).

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