Exam Instructions
Exam Duration: 2 hours and 30 minutes
1. Read the ‘Programme Scenario’ carefully. You will need this information to answer the questions that follow.
2. Attempt all questions (no negative marking).
3. For some questions you will also need the Additional Information. This is indicated before the question.
4. Each question is separate. Do not use information from one question to answer another question.
5. You have about 2 minutes per question on average.
6. You must achieve 60% to pass this exam.
7. This is an ‘open book’ exam. You can use the Managing Successful Programmes 5 th Edition guidance.
8. No other material is allowed.
9. Please remember to Review Answers at the end of the test on the report screen, to view the reasoning behind why a specific option is correct or incorrect, this is a key part of your learning process, to reflect upon and improve your competency and refine your understanding of the specific syllabus area.
Programme Scenario - The Merger Programme
PCSafe is a large online retailer of PCs. PCSafe has recently purchased TechStore, which is a giant in the digital storage market that provides hardware for data centres and cloud solutions. The newly merged company will be called PCTech. During a press release, PCTech stated that they expect to see benefits as a result of the following capabilities:
• the ability to compete with other suppliers in both markets by combining their strengths and leveraging their customer base.
• the ability to leverage their complementary portfolios and cross-sell their products to existing customers.
• the ability to leverage existing sales teams, increasing sales but reducing costs, while allowing them to capitalize on PCSafe’s strengths with small and medium-sized customers as well as on TechStore’s strengths with larger corporate clients.
• the ability to leverage existing research and development capability, enabling greater innovation at reduced costs.
The extract from the benefits map below illustrates the high-level view of the benefits, as identified in the ‘design the outcomes’ process.
An initial list of projects and other work has been identified as follows:
Tranche 1
Alignment of Terms and Conditions Project
• Align the terms and conditions of the staff and directors of the organizations.
• Transfer staff from TechStore across with protected rights for a specified period in some regions, others will move to new terms immediately.
Divisional Restructure Project
• Design new corporate board and governance structures.
• Provide a recommendation on the selection of roles and responsibilities for each director and their divisions. Draft corporate announcement ready for publication.
• Rationalize staff to reduce overall headcount.
Tranche 2
Process Alignment Project
• Agree processes to cater to both marketplaces and types of customer.
o PCSafe has traditionally been a low margin organization with high volumes; TechStore has been low volume with high margins.
• Update internal IT network and systems to accommodate new processes.
Culture Alignment Project
• Create a culture which will enable PCTech to thrive.
o The demands of the different marketplaces have meant that the organizations have different cultures. If the merged company is to be successful, it will need to capitalize on the strengths of both organizations.
Sales Channel and Processes Project
• Develop new channels that will enable PCTech to leverage its market share with small to medium-sized customers as well as capitalize on the market opportunities available from the larger corporate clients.
• Develop new processes to sell PCSafe products to former TechStore clients and vice-versa.
• Update the existing customer relationship management software.
Tranche 3
Estates/Buildings Rationalization Project
• Document the requirements for the estates/buildings.
• Rationalize estates/buildings in line with reduced headcount.
Other work (ongoing throughout the programme)
Research and Development Work
• Identify ways to continue to do research in both marketplaces and leverage existing knowledge across marketplaces.
HR Work
• Move all staff to newly agreed terms and conditions.
• Reduce staff numbers through voluntary and compulsory redundancy as well as early retirement packages.
• Recruit appropriately skilled and experienced individuals to occupy newly created roles.
Additional Information
The CEO of PCTech was the former CEO of PCSafe and is now the CEO of the newly merged organization. They are keen to see the full benefits of the Merger Programme delivered.
It is not certain what the future holds for the former CEO of TechStore because it is unclear whether they will accept a role on the PCTech Corporate Board or whether they will decide to pursue opportunities elsewhere.
The Chief Finance Officer (CFO) is the former CFO of TechStore and has been appointed as CFO to PCTech. They are a determined individual who strongly supports the merger and can see how the new organization will benefit from reduced costs and increased sales. They are heavily involved in developing the new PCTech strategy.
The Chief Operating Officer (COO) is responsible for the manufacture of products, product sales and customer service. They have been newly recruited because neither of the former COOs decided to remain with PCTech. They were recruited because of their experience in selling to small- and medium-sized companies, as well as large corporate clients, and will be heavily involved in determining the direction for PCTech. Their knowledge of the IT sector is limited.
The Chief Research Officer (CRO) is responsible for research and development into new products. They have several teams of engineers and other technicians who carry out the research and innovation. They are keen to ensure that the research and development function helps to drive the direction of PCTech.
The Human Resources (HR) Director is responsible for ensuring the terms and conditions and working conditions are appropriate and in line with market expectations, so that high-quality staff can be recruited and retained. They are a key decision-maker in the new PCTech board of directors.
The Chief Technology Officer (CTO) is responsible for all internal IT matters including security, networks and applications, and needs to ensure that the internal IT strategy continues to support the new PCTech business priorities.
The Finance Manager has a team of accountants and analysts working for them. This team assists in preparing both project and programme business cases, and the Finance Manager is personally responsible for assuring the quality of the business cases and ensuring alignment to corporate strategy.
The Sales Manager has been with PCSafe for many years and knows the processes within the online PC market. They have a team of sales associates who answer online sales queries from customers and they know how the sales team operates.
The Production Manager is responsible for ensuring that the manufactured products meet the required standards. In a previous role with another employer, they were responsible for overseeing the construction of a new manufacturing plant and the design of new processes to meet the future demands of the company.
The Customer Servicing Manager (Commercial) is responsible for answering queries from large corporate customers and ensuring that their orders are fulfilled promptly. They need to ensure that the changes delivered will enable the continued sales of hardware to the large corporate customers.
The Research Manager is responsible for all research in the retail PC market.
Office-U-Like are a specialist external company providing expert architectural and estates services. Office design services have been outsourced to them.
The IT Manager is responsible for the internal IT network and has extensive experience in creating and delivering a complex series of interrelated IT projects where significant interdependencies needed to be managed.
The Portfolio Office team develops and maintains the standards and templates for all projects and programmes to use across PCTech. It includes project and programme support staff.
Customer First develops and maintains the customer relationship management software that will need to be updated as part of the Sales Channel and Process Project.
-- End of Scenario --
Sample Test 1
PRINCIPLES
1) The programme is in the 'plan progressive delivery' process. The SRO is concerned that there may be resistance from staff. In particular, the PCSafe sales team is worried that they will lose their current sales bonus once their team has been combined with the TechStore sales team. As a result, the programme manager has asked the BCM to explain to his staff how the merger will lead to PCTech being able to compete more effectively and deliver increased sales.
Is this an appropriate application of the 'lead with purpose' principle, and why?
