What is the definition of portfolio management?

Question

Options

• ACarrying out the co-ordinated organization, direction and implementation of a dossier of projects
• BA co-ordinated collection of strategic processes and decisions that together enable the most
• CSuccessfully implementing planned change initiatives whilst ensuring the portfolio adapts to
• DAn approach, or line to take, designed to achieve a long-term aim

• B
  93% (27)
• C
  3% (1)
• D
  3% (1)

Explanation

Option B is correct because portfolio management is fundamentally defined as the coordinated collection of strategic processes and decisions that enable an organization to balance competing investments and choose the optimal mix of programs and projects to deliver strategic objectives - it's about selecting and governing the right work, not executing it.

Why the others are wrong:

• A describes programme management - the coordinated direction of a group of related projects to achieve benefits not available from managing them individually.
• C describes a benefit or outcome of portfolio management (adaptability during change), not its definition - it confuses the result with the concept.
• D describes a strategy or policy, not portfolio management specifically.

Memory tip: Think of portfolio management as a boardroom activity - executives deciding what to fund and prioritize. Programme/project management is the delivery floor - teams deciding how to execute. If the definition sounds like strategy and selection, it's portfolio; if it sounds like execution and coordination, it's programme.

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