PM Interview Question →You have just been handed a 10% cut in the Engineering budget. How would you go about delivering on your committed Roadmap?

When faced with a 10% cut in the Engineering budget, delivering on the committed roadmap requires a strategic approach to reprioritization, optimization, and communication. Here’s how I would address this challenge:

1. Assess the Current State

Understanding the Impact of the Cut:

• Determine what the 10% reduction translates to in terms of resources (headcount, hours, or tools).
• Evaluate how the reduction affects engineering capacity for ongoing and planned projects.

Map the Budget Cut to the Roadmap:

• Identify which initiatives or features in the roadmap are most resource-intensive.
• Understand the dependencies, timelines, and key milestones of ongoing projects.

2. Reassess Priorities

Align with Business Goals:

• Revisit the company’s strategic goals and the roadmap’s alignment to these goals.
• Prioritize features or projects that drive the most value for the business (e.g., user growth, revenue, or retention).

Create a Prioritization Framework:

• Use metrics like ROI (Return on Investment), customer impact, effort vs. value, and risk mitigation to rank initiatives.
• Categorize roadmap items into:
• Must-Have: Core to business success.
• Nice-to-Have: Additive value but non-critical.
• Deferable: Low-priority items that can be postponed without significant impact.

Engage Stakeholders:

• Collaborate with cross-functional teams to refine priorities.
• Validate decisions with key stakeholders to ensure alignment.

3. Optimize Resource Allocation

Reevaluate Team Focus:

• Shift engineering focus to high-priority initiatives by freezing or delaying less critical work.
• Consolidate teams on fewer projects to ensure depth over breadth.

Increase Efficiency:

• Identify opportunities to optimize workflows:
• Automate repetitive tasks to save engineering time.
• Reduce technical debt to prevent future slowdowns.
• Implement tools or methodologies that enhance productivity (e.g., agile sprints, Kanban boards).

Leverage Existing Resources:

• Reuse existing code or components where applicable to reduce development time.
• Partner with other teams (e.g., product or design) to offset some engineering workload.

4. Explore Alternative Solutions

Outsource Non-Core Work:

• Identify low-risk, modular tasks that can be outsourced to third-party vendors or contractors.

Scale Back Features:

• Reduce the scope of some features to deliver a Minimum Viable Product (MVP) while maintaining roadmap commitments.
• Focus on delivering the highest value portions of a feature first, with plans to iterate later.

Delay Non-Essential Projects:

• Push back projects that don’t align with immediate business goals to free up resources for core initiatives.

5. Communicate Transparently

With the Team:

• Be upfront with the engineering team about the budget cut and its implications.
• Share the revised priorities and explain the rationale to maintain morale and alignment.

With Leadership:

• Present a clear, data-backed plan for how the revised roadmap will still achieve key goals.
• Highlight trade-offs and risks, ensuring leadership understands potential impacts.

With Stakeholders:

• Communicate changes to external stakeholders, such as customers or partners, if deliverables are delayed or altered.
• Emphasize the value of maintaining focus on high-impact areas.

6. Track Progress and Adapt

Monitor Execution:

• Establish KPIs to measure the progress and impact of the revised roadmap.
• Regularly review project timelines and resource allocation to ensure alignment with goals.

Remain Flexible:

• Be prepared to adjust plans further if unforeseen challenges arise.
• Keep a continuous feedback loop with the team and stakeholders to adapt as needed.

Example Scenario

Let’s say the roadmap includes:

1. Launching a new flagship feature to boost user engagement.
2. Improving infrastructure for scalability.
3. Addressing technical debt in older systems.
4. Developing an exploratory feature to test a new market segment.

Approach:

1. Keep the flagship feature as a top priority, ensuring it’s delivered on time even with reduced resources.
2. Scale back infrastructure improvements to focus only on critical bottlenecks.
3. Postpone addressing low-priority technical debt to reallocate those resources.
4. Pause development of the exploratory feature, given its lower immediate value.

Outcome

By systematically reassessing priorities, reallocating resources, and optimizing processes, I would ensure that the most impactful parts of the roadmap are delivered despite the budget cut. At the same time, transparent communication and continuous monitoring would help manage expectations and mitigate risks.

This approach ensures alignment with business goals, team morale, and customer satisfaction, even under resource constraints.

Thanks for reading! If you’ve got ideas to contribute to this conversation please comment. If you like what you read and want to see more, clap me some love! Follow me here, or connect with me on LinkedIn or Twitter.

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