Which portfolio definition practice collates information from the portfolio definition cycle and creates a Portfolio Strategy?

Question

Options

• APrioritize
• BPlan
• CCategorize
• DBalance

• A
  8% (3)
• B
  88% (35)
• C
  3% (1)
• D
  3% (1)

Explanation

Plan is correct because it acts as the synthesis step in the portfolio definition cycle - it collates all outputs from the other practices (categorization, prioritization, balancing) and assembles them into the formal Portfolio Strategy document that guides the portfolio going forward.

Categorize (C) is wrong because it only groups portfolio components into strategic categories (e.g., growth vs. run-the-business); it doesn't produce the strategy itself. Prioritize (A) is wrong because it ranks and scores components against strategic criteria but stops short of compiling those results into a strategy. Balance (D) is wrong because it adjusts the portfolio mix across risk, time horizon, and investment type - a crucial input to planning, but not the step that creates the strategy document.

Memory tip: Think of Plan as the "collator" - it comes last in the definition cycle and pulls everything together, just like planning a trip only happens after you've decided where to go (Categorize), what matters most (Prioritize), and how to spread your budget (Balance).

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