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106 · Question #83

Which is a purpose of the categorize practice?

The correct answer is B. To enable effective decision-making on the optimum use of funding and other resources. Option B is correct because the primary purpose of the categorize practice is to group change initiatives in a way that allows leaders to assess trade-offs and make informed decisions about where to allocate limited funding, capacity, and other resources across the portfolio. Why

Understanding the portfolio management practices

Question

Which is a purpose of the categorize practice?

Options

  • ATo obtain a clear and transparent view of what is in the development pipeline
  • BTo enable effective decision-making on the optimum use of funding and other resources
  • CTo ensure that every change initiative falls into a category that directly contributes to strategic
  • DTo ensure that every category contains at least one change initiative

How the community answered

(40 responses)
  • A
    5% (2)
  • B
    90% (36)
  • C
    3% (1)
  • D
    3% (1)

Explanation

Option B is correct because the primary purpose of the categorize practice is to group change initiatives in a way that allows leaders to assess trade-offs and make informed decisions about where to allocate limited funding, capacity, and other resources across the portfolio.

Why the distractors are wrong:

  • A describes the purpose of the visualize (or pipeline visibility) practice, not categorize - seeing what's in the pipeline is about transparency, not categorization.
  • C is a distortion; categorize doesn't require every initiative to directly contribute to strategy - some categories may address operational needs, compliance, or risk, not just strategic goals.
  • D is backwards logic - categories are defined to serve decision-making purposes, not to ensure they stay populated; an empty category is fine if no current initiatives fit it.

Memory tip: Think of "categorize" as the practice that answers "how do we sort our work so we can spend money wisely?" - whenever you see resource allocation or funding decisions, that's your cue that categorize is in play.

Topics

#Categorize practice#Resource allocation#Portfolio governance#Decision-making framework

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