According to the PMBOK Guide and the PMI Guide to Business Analysis, this situation involves a conflict between " Technical Acceptance " and " Business Approval " at the end of an iteration.
Conflict Resolution and Governance: The project team has successfully met the pre-defined Acceptance Criteria, as verified by the testing manager. However, a high-level stakeholder (the Business Unit Manager) is now adding new requirements as a prerequisite for rollout. Since the iteration is already complete and the original goals were met, this represents a significant change in stakeholder expectations and project scope.
Role of the Project Sponsor: The Project Sponsor is the individual who provides resources and support for the project and is accountable for enabling success. They are the ultimate authority when there is a disagreement between the project ' s output and a business unit ' s needs. The Project Manager should escalate this to the sponsor to decide whether to stick to the original rollout plan or to fund and authorize the additional functionality.
Scope Control: Accepting the requirements immediately (Option C) would lead to scope creep and schedule delays without proper authorization. Escalating to the sponsor ensures that the business value of the new request is weighed against the project ' s constraints by the person holding the budget.
Analysis of other options:
Option B: Rescheduling the rollout to another unit is a premature move that avoids the root problem. The project manager does not yet have the authority to change the rollout strategy without consulting the sponsor or the steering committee.
Option C: Including new requirements at this stage without a formal evaluation and approval process is a violation of Change Control principles. It would delay the project and could potentially impact the quality of the current iteration ' s deliverables.
Option D: The PMO typically provides templates, best practices, and oversight. While they might offer advice on how to handle the situation, they do not usually have the authority to resolve business-unit-specific scope disputes; that is the role of the Project Sponsor.
Per PMI standards, when a major stakeholder demands additional scope after the agreed-upon criteria have been met, the project manager must escalate to the Project Sponsor to determine the strategic direction and the impact on the project ' s business case.