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106 · Question #15

Which questions are addressed by portfolio management as part of strategic planning? 1. Are the programmes and projects in the portfolio necessary? 2. Is the portfolio together with business as…

The correct answer is B. 1, 2, 4. Option B (1, 2, 4) is correct because portfolio management during strategic planning is concerned with necessity (are these programmes/projects the right ones?), sufficiency (does the combined portfolio + BAU deliver the strategy?), and affordability (can the organisation fund…

Understanding the purpose, scope, objectives and benefits of portfolio management, and the key terms and concepts

Question

Which questions are addressed by portfolio management as part of strategic planning? 1. Are the programmes and projects in the portfolio necessary? 2. Is the portfolio together with business as usual activities sufficient to achieve the strategic objectives? 3. Where in business as usual will the objectives be achieved? 4. Is the portfolio affordable?

Options

  • A1, 2, 3
  • B1, 2, 4
  • C1, 3, 4
  • D2, 3, 4

How the community answered

(36 responses)
  • A
    3% (1)
  • B
    78% (28)
  • C
    6% (2)
  • D
    14% (5)

Explanation

Option B (1, 2, 4) is correct because portfolio management during strategic planning is concerned with necessity (are these programmes/projects the right ones?), sufficiency (does the combined portfolio + BAU deliver the strategy?), and affordability (can the organisation fund it?). These three questions directly validate whether a portfolio is strategically aligned, complete, and financially viable.

Question 3 - "Where in business as usual will the objectives be achieved?" - is the odd one out. Portfolio management asks whether BAU and the portfolio together are sufficient (question 2), but it does not drill down into the internal mechanics of BAU delivery; that is an operational management concern, not a portfolio governance question. Any option including 3 (A, C, D) is therefore wrong.

Memory tip: Think of portfolio management's three strategic tests as N-S-A - Necessary, Sufficient, Affordable. If you can map the answer choices to those three concepts, you'll quickly spot that "where in BAU" doesn't fit any of them.

Topics

#strategic planning#portfolio alignment#portfolio scope#resource affordability

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