Section $2$

At this point in The Phoenix Project, it's clear that Parts Unlimited is not an IT$-$sawvy organization. The Csuite continues to treat IT as a cost center rather than a strategic asset, which has turned IT into a strategic liability. The consequences of this mindset are now surfacing through persistent project delays, poor cross$-$functional coordination, and escalating system failures.

The Phoenix Project is already severely over budget and far behind schedule. Unsurprisingly, both the CIO, Luke, and the VP of IT Operations, Damon, have been let go$.$ But these leadership changes don't resolve the decper issues.

One major turning point in the narrative is the payroll failure that affects hourly workers. This is not just a technical glitch$-$it's a critical symptom of deeper systemic dysfunction in the IT organization. The failure reflects breakdowns across people, processes, ond technology. It reveals organizational silos, unclear responsibilities, poor change management, and a lack of accountability$-$hallmarks of an IT function that lacks strategic alignment and operational maturity.

To make matters worse, a SOX$-404$ audit crisis als$$ lands on Birrs desk, requiring immediate attention. Together, these events highlight the fraglity of the current IT environment and set the stage for the next set of questions, which will guide you through identifying and analyzing these key symptoms of a failing IT strategy.Why is this payroll failure critical to Parts Unlimited?

Select all that apply.

It potentially created compliance issues with state and federal labor regulations beyond SOX$-404.$

It led to unanticipated overtime expenses as IT and HR teams scrambled to manually fox payroll issues.

It would potentially improve the SOX$-404$ audit situation.

It damaged the company's reputation with key vendors who rely on timely payment processing.

Morale problem for the firm as workers might not get paid or would be pail incorrectly.