Portfolio management needs to coordinate with which of the following functions to ensure strategic objectives are achieved?

Question

Options

• ARisk Management
• BBenefits Management
• CPerformance Management
• DBusiness as Usual (BAU)

• A
  6% (2)
• B
  3% (1)
• C
  91% (31)

Explanation

Performance Management (C) is correct because portfolio management must coordinate with performance management to measure, monitor, and report on whether the portfolio's outputs are actually delivering against strategic objectives. Without this coordination, there is no mechanism to verify that strategic goals are being met or to take corrective action.

Risk Management (A) is a supporting discipline within portfolio management - it helps protect the portfolio from threats - but it doesn't directly validate whether strategic objectives are being achieved; it manages the conditions around achieving them.

Benefits Management (B) tracks the realization of benefits from individual programs and projects, but it operates at a more granular level. Portfolio management already encompasses benefits oversight; it doesn't coordinate with benefits management as a separate peer function for strategic alignment.

BAU (D) represents ongoing operational activities separate from the portfolio's change agenda. While the portfolio must avoid disrupting BAU, BAU has no role in verifying that strategic objectives are on track.

Memory tip: Think "P for Progress" - Performance management is how you measure progress toward strategy. If you're managing a portfolio and someone asks "are we achieving our strategy?", you look at performance data.

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