Learn the best approach for a project manager to take when a long-time supplier has trouble accepting new agile contract terms in this sample PMP certification exam question and explanation.
Table of Contents
Question
A supplier that the company has used for years has trouble accepting the new terms of an agile contract. They do not understand the terms in the contract and feel they should not have to sign it because they have had a long relationship with the company.
Which action should the project manager take?
A. Train the supplier in agile approaches to help them understand the contract.
B. Change contract terms and conditions to avoid losing the supplier.
C. Issue a request for proposal (RFP) to find new suppliers with agile experience.
D. Ask the team if they can do the work until there is an available supplier.
Answer
A. Train the supplier in agile approaches to help them understand the contract.
Explanation
The key considerations here are 1) the supplier has a long-standing relationship with the company, and 2) their issue is a lack of understanding of the agile contract terms, not an outright refusal to accept them.
Given the existing relationship, the first step should be to try to preserve that partnership by helping the supplier understand the agile terms and why they are important. Providing agile training can bridge that knowledge gap and allow the supplier to feel comfortable signing the contract.
The other options are not ideal for these reasons:
B) Changing contract terms could compromise key agile principles that are important to the project.
C) Going straight to an RFP to replace the supplier disregards the existing relationship and should only be done if training and negotiation fail.
D) Asking the team to cover the supplier’s responsibilities is not a sustainable solution and may not be feasible depending on the team’s skills.
Therefore, investing time to train the trusted supplier on agile practices is the most prudent initial approach to overcoming their objections to the contract while preserving a valuable business partnership. If training does not resolve the issue, then exploring alternative suppliers would be an appropriate next step for the project manager.
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