PMP Guide — Empowering Project Managers
Business EnvironmentPredictiveHardECO: Business Environment Task 1

PMP Practice Question: Business Environment — Predictive, Hard

You are leading a predictive ERP implementation project for a global retail organization. During the planning phase, you identified the need for extensive organizational change management, including training 5,000 employees across 12 countries. Management approved a $800K change management budget as part of the $12M project. Nine months into execution, a new CFO conducts a portfolio review and reallocates your change management budget to a revenue-generating digital marketing initiative, stating that 'training is overhead, not a project deliverable.' Your project team warns that without proper change management, user adoption will fail, likely resulting in the ERP system being underutilized. Historical data from similar projects shows 60% failure rate without change management versus 15% with it. What should be your primary concern?

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