What is the purpose of what-if scenario analysis?

What-if scenario analysis serves to evaluate various scenarios and predict their potential impact on project objectives. This analytical approach allows project managers and stakeholders to assess how changes in certain variables could affect project outcomes. By modeling different situations—such as changes in scope, resource availability, or external factors—project teams can identify risks and opportunities, helping them to develop strategies for managing the project effectively.

Understanding the implications of different scenarios enables more informed decision-making, allowing teams to prepare for various possibilities rather than relying on a single, predetermined path. This flexibility can lead to improved project performance and better alignment with overall project goals.

The other options address different aspects of project management that do not specifically relate to the predictive and evaluative nature of what-if analysis. Creating project schedules involves establishing timelines and milestones; assessing team performance focuses on team dynamics and productivity; and allocating project funding pertains to financial resource management—all of which are important but distinct from the scenario analysis function.