Which is a benefit of portfolio management?

Question

Options

• AEnables best management practices such as PRINCE2 and MSP to be mandated
• BJustifies the application of sophisticated software tools
• CEnables more efficient resource utilization
• DDetailed approaches are prescribed that are applicable to most organizations

• A
  5% (1)
• C
  90% (19)
• D
  5% (1)

Explanation

Portfolio management coordinates multiple projects and programs across an organization, allowing shared resources (people, budget, equipment) to be allocated where they are most needed - eliminating duplication and reducing idle capacity, which is why C is correct.

A is wrong because portfolio management does not mandate specific methodologies like PRINCE2 or MSP; those are applied at the project/programme level and remain a matter of organizational choice.

B is wrong because justifying software tools is not a recognized benefit of portfolio management - tools may support it, but they are a means, not an outcome.

D is wrong because portfolio management deliberately avoids prescribing detailed, one-size-fits-all approaches; it is tailored to each organization's strategic context, not universally prescribed.

Memory tip: Think of a portfolio like an investment portfolio - a fund manager's key job is to allocate capital efficiently across holdings, not to tell each company how to run its operations. Similarly, portfolio management's core value is efficient resource allocation, not imposing methods.

No community discussion yet for this question.