Which is one of the five portfolio management principles?

Question

Options

• APortfolio definition
• BMulti-criteria analysis
• CPrioritize
• DStrategy alignment

• A
  5% (2)
• B
  2% (1)
• C
  2% (1)
• D
  91% (40)

Explanation

Strategy alignment (D) is one of the five portfolio management principles because a portfolio exists specifically to bridge organizational strategy with execution - ensuring selected programs, projects, and operations collectively advance strategic objectives. This is foundational: without it, a portfolio is just a random collection of work.

Why the distractors are wrong:

• A. Portfolio definition - This describes an activity or process (defining what's in the portfolio), not a governing principle.
• B. Multi-criteria analysis - This is a technique used to evaluate and prioritize components, not a principle in itself.
• C. Prioritize - Prioritization is a practice or action performed within portfolio management, not one of the five guiding principles.

Memory tip: Think of the five portfolio management principles (per PMI's Standard for Portfolio Management) with the acronym S-O-V-G-O: Strategy alignment, Optimization, Value delivery, Governance, and Organizational capability development. "Strategy" always comes first because everything else flows from it - if you can only remember one principle, it's that the portfolio must serve the strategy.

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