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Your company is in the middle of negotiating to win a major new project. The project nicely fits into the company’s strategic plan, but will require some of the best resources the company has in order to meet the quality objectives. Management is excited because the project represents the opportunity to generate good profits for the company and will put all their company expertise to the test. The prospective team members are also excited because the client is prestigious. In order to meet the schedule objectives for the project, you need to start committing jobs to new and critical project resources now, while the contract is still under negotiation. What should you do now?
a) Wait until the last minute to do so.
b) Ask the customer for a letter of intent
c) Only start to collect resumes and do not commit any funds
d) Explain to management that this will not be a good idea at this point.
The correct answer is B.
This is a tough, but common, situation. Choice B is commonly done. Even though a letter of intent is not binding in a court of law, it does make the seller feel more comfortable about expending funds before a contract is signed. Notice how much of the question is extraneous. Expect questions on the exam that are wordy, distracting from the real problem at hand, and have whole paragraphs of information that is irrelevant to the real problem.
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