The contract has not been appropriately reviewed by the project team

Explanation
According to the PMBOK Guide, the project team is responsible for conducting procurement activities, such as planning, conducting, controlling, and closing procurements. This includes reviewing and updating the contracts as needed to ensure compliance with the project requirements and the applicable laws and regulations. The project manager should also involve the legal department and other relevant stakeholders in the contract review process to avoid any potential issues or disputes. Therefore, if the contract violates a new law that was passed last year, it means that the project team has not performed an adequate review of the contract before renewing it, and has failed to identify and mitigate the risk of non-compliance.

References:
PMBOK Guide, Chapter 12, Section 12.1, Plan Procurement Management
PMBOK Guide, Chapter 12, Section 12.2, Conduct Procurements
PMBOK Guide, Chapter 12, Section 12.3, Control Procurements
PMBOK Guide, Chapter 12, Section 12.4, Close Procurements
PBA Guide, Chapter 5, Section 5.3.2, Contract Review and Approval

Create a prioritized backlog and define iteration review sessions with stakeholders

According to the Agile Practice Guide, a prioritized backlog is a list of features, functions, requirements, enhancements, and fixes that are prioritized according to the value they deliver to the customer and the amount of work required to complete them. A prioritized backlog helps the project team to manage changing scope and expectations in an agile environment, where new knowledge and feedback are continuously incorporated into the project. By defining iteration review sessions with stakeholders, the project manager can ensure that the project outcomes are aligned with the business goals and that the stakeholders are satisfied with the deliverables. Iteration review sessions are meetings where the project team demonstrates the work completed in an iteration and solicits feedback from the stakeholders. Iteration review sessions help to validate the value of the deliverables, identify any defects or issues, and adjust the backlog for the next iteration. References: Agile Practice Guide, pages 37-38, 5.1.1 Prioritized Backlog, 5.2.2 Iteration Review.

Gather requirements from stakeholders

According to the PMBOK Guide, the first process in the Project Integration Management knowledge area is Develop Project Charter. This process authorizes the project and defines the high-level scope, objectives, and stakeholders of the project. The project charter is based on the business case, which is the document that justifies the need and value of the project. The business case is usually prepared by the project sponsor or initiator, not the project manager. Therefore, option A is incorrect. Option B is also incorrect, because a SWOT analysis is a technique used to identify the project risks, assumptions, and constraints, which are part of the project planning process, not the initiating process. Option C is incorrect, because engaging stakeholders and allocating resources are also part of the project planning and executing processes, not the initiating process. Option D is the correct answer, because gathering requirements from stakeholders is a key activity in the initiating process group, as it helps to define the scope and objectives of the project, as well as the expectations and needs of the stakeholders. The project manager should gather requirements from stakeholders before developing the project charter, as the charter should reflect the stakeholder requirements and align with the business case. References: = PMBOK Guide, 6th edition, pages 30-33, 75-77, 123-125, 135-137.

Ask the stakeholders about the priority of this change

Ask the product owner to review the product backlog

In an agile project, the project manager should collaborate with the stakeholders and the product owner to manage changes in the product. Asking the stakeholders about the priority of this change will help the project manager understand the value and urgency of the change, and align the expectations of the stakeholders with the project vision. Asking the product owner to review the product backlog will help the project manager ensure that the change is properly prioritized and incorporated into the product backlog, which is the source of requirements for the agile project. Asking the team members to analyze the impact of this change, asking the sponsor to approve the change request, or asking the team members to include the change in the next iteration are not the best actions to take in an agile project, as they may introduce unnecessary delays, bureaucracy, or scope creep. References: = PMBOK Guide, 6th edition, page 18, section 1.2.3 (Agile Considerations); page 176, section 5.1.1.1 (Project Stakeholders); page 179, section 5.1.3.1 (Project Charter); page 181, section; (Product Owner); page 182, section 2.3.1 (Product Backlog)

The updated project management plan

The project manager should share the updated project management plan with the key resource, as it contains the information about the project purpose and alignment with the organization’s strategy. The project management plan is the primary source of guidance for the project team and stakeholders, and it integrates all the subsidiary plans and baselines, such as the benefits management plan, the scope management plan, and the communications management plan. By sharing the updated project management plan, the project manager can ensure that the key resource understands the project objectives, scope, benefits, risks, assumptions, and constraints, as well as the communication channels and methods for the project. 

References: (Professional in Business Analysis Reference Materials source and documents)
PMBOK Guide, 6th edition, section 4.2.3.1, page 89 
PMP Exam Prep, 10th edition, Rita Mulcahy, page 78 
PMP Practice Questions #58 - iZenBridge1

Work with the product owner to clarify the requirement

According to the PBA Guide, the product owner is the person who is responsible for defining and prioritizing the product backlog, which contains the requirements for the project. The product owner also provides feedback and acceptance for the deliverables produced by the development team. Therefore, the project manager should work with the product owner to clarify the requirement and the acceptance criteria for the task, as they are the best source of information and authority for the project scope. This is also consistent with the agile principles of collaboration, customer satisfaction, and responding to change. 

References:
PBA Guide, Chapter 2, Section 2.3.1, Roles and Responsibilities of the Product Owner
PBA Guide, Chapter 3, Section 3.2.1, Product Backlog
PBA Guide, Chapter 4, Section 4.3.2, Feedback and Acceptance
PMBOK Guide, Chapter 13, Section 13.2.2.1, Agile/Adaptive Environments
PMBOK Guide, Appendix X3, Section X3.2, Agile Principles

Conduct a root cause analysis session

According to the PMBOK Guide, a root cause analysis is a technique that involves identifying the underlying causes of problems or issues in a project. A root cause analysis can help the project manager and the team to understand the factors that contribute to the negative group behaviors and the lack of motivation and productivity. By conducting a root cause analysis session, the project manager can facilitate a collaborative problem-solving process that involves asking why the problem occurred, finding the root causes, and developing corrective actions to address them. A root cause analysis can also help to improve the team’s communication, trust, and morale, as well as the project’s quality, risk, and stakeholder management. Defining and analyzing performance metrics, escalating poor performance to functional managers, or updating the stakeholder engagement plan are not effective actions for improving the project team’s performance, as they do not address the root causes of the problem, and may create more resentment, frustration, or conflict among the team members. References: PMBOK Guide, Sixth Edition, pages 176, 558; PMI-PBA Guide, First Edition, pages 87, 102.

Alternatives analysis

Cost-benefit analysis

The project manager can use alternatives analysis and cost-benefit analysis to influence the client’s decision to keep the project active. These are two tools or techniques that can help the project manager present different options and their implications to the client, and demonstrate the value and feasibility of the project.

Alternatives analysis is a technique that involves generating, comparing, and evaluating different possible courses of action in order to select the best one1. The project manager can use this technique to show the client the pros and cons of continuing or closing the project, and the impact of each option on the project objectives, scope, schedule, cost, quality, risk, and stakeholder satisfaction. The project manager can also propose alternative solutions or approaches that can address the client’s concerns or issues, and explain how they can be implemented.

Cost-benefit analysis is a technique that involves comparing the expected costs and benefits of a project or an option to determine its economic viability and attractiveness2. The project manager can use this technique to show the client the return on investment (ROI) of the project, and how the benefits outweigh the costs. The project manager can also quantify the costs and benefits of different alternatives, and compare them to the baseline or the status quo. The project manager can also highlight the intangible or qualitative benefits of the project, such as customer satisfaction, reputation, social impact, or strategic alignment.

By using these two tools or techniques, the project manager can influence the client’s decision to keep the project active by providing factual and rational information, appealing to the client’s interests and values, and offering choices and flexibility.

References: 1: Alternatives Analysis - Project Management Knowledge 2: Cost Benefit Analysis - Project Management Knowledge

Perform a stakeholder evaluation

According to the Project Management Professional (PMP) Reference Materials, the project manager should perform a stakeholder evaluation in order to realign the project with the sponsor’s expectations. A stakeholder evaluation is a process of identifying and analyzing the needs, interests, expectations, and influence of the project stakeholders, especially the key ones such as the project sponsor1. By performing a stakeholder evaluation, the project manager can understand the root cause of the sponsor’s dissatisfaction, communicate effectively with the sponsor, and address any gaps or issues in the project requirements2. The project manager can also use various tools and techniques, such as interviews, surveys, focus groups, and stakeholder analysis matrices, to gather and document the stakeholder information3. The other options, A, C, and D, are not the best actions that the project manager should take to realign the project with the sponsor’s expectations.

Reviewing the project goal diagram with the team may not help to resolve the sponsor’s concerns, and may not reflect the current state of the project requirements. Confirming which templates the team should be using may not improve the quality or clarity of the project requirements, and may not address the sponsor’s needs or expectations. Reviewing the risk management plan may not be relevant or helpful for the project requirements development, and may not involve the sponsor’s feedback or input. 

References: 
1: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Chapter 13.1, "Identify
Stakeholders". 
2: How to Work Effectively with Your Project Sponsor - BrightWork.com, Section "Understanding the Sponsor’s Strategic Role". 3: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Chapter 13.1.2, "Identify Stakeholders: Tools and Techniques".

Emotional intelligence

The correct answer is B. According to the PMBOK® Guide, emotional intelligence is the ability to identify, assess, and manage the personal emotions of oneself and other people, as well as the collective emotions of groups of people1. The project manager demonstrated emotional intelligence by recognizing the team member’s situation, showing empathy and concern, and taking action to accommodate the team member’s needs and preferences. Networking, conflict management, and influencing are also interpersonal skills, but they are not relevant to this scenario. References: 1: PMBOK® Guide, page 704