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106 · Question #65

How do portfolio and performance management coordinate to deliver strategic objectives? 1. Utilise the expertise of the performance management function in designing portfolio performance metrics 2. De

The correct answer is C. 1, 3, 4. Option C is correct because statements 1, 3, and 4 all describe genuine coordination between the portfolio and performance management functions: leveraging performance management expertise to design sound metrics (1), aligning performance targets to reflect what the portfolio is

Understanding the portfolio management practices

Question

How do portfolio and performance management coordinate to deliver strategic objectives? 1. Utilise the expertise of the performance management function in designing portfolio performance metrics 2. Deliver change initiatives that contribute to strategic objectives 3. Incorporate the anticipated impact of the portfolio in performance targets 4. Ensure the performance management function are engaged at an early point in the development of business cases

Options

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

How the community answered

(41 responses)
  • A
    5% (2)
  • B
    20% (8)
  • C
    66% (27)
  • D
    10% (4)

Explanation

Option C is correct because statements 1, 3, and 4 all describe genuine coordination between the portfolio and performance management functions: leveraging performance management expertise to design sound metrics (1), aligning performance targets to reflect what the portfolio is expected to deliver (3), and bringing performance management into business case development early enough to influence decisions (4).

Statement 2 is the distractor - "delivering change initiatives that contribute to strategic objectives" describes what a portfolio does by definition, not a coordination mechanism between the two functions. It is a portfolio outcome, not a coordination activity.

Memory tip: Filter each statement by asking "Does this describe the two functions working together, or just what a portfolio does on its own?" Statement 2 fails that test - the portfolio always delivers change initiatives; that requires no specific coordination with performance management.

Topics

#portfolio-performance integration#strategic alignment#performance metrics#portfolio governance

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