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CAPM · Question #233

What is the aim of portfolio management?

The correct answer is C. Aligning with the organizational or strategic direction that affects project goals. Portfolio management's primary aim is to align selected projects and programs with the organization's strategic direction and objectives, ensuring that the right work is being done to achieve organizational goals. It is about choosing which initiatives to invest in based on…

Project Management Fundamentals and Core Concepts

Question

What is the aim of portfolio management?

Options

  • AResolving constraints and conflicts that affect multiple projects
  • BIncreasing the likelihood of realizing the desired return on investment (ROI)
  • CAligning with the organizational or strategic direction that affects project goals
  • DSetting up a corporate governance plan for the proper allocation of resources

How the community answered

(25 responses)
  • B
    4% (1)
  • C
    88% (22)
  • D
    8% (2)

Explanation

Portfolio management's primary aim is to align selected projects and programs with the organization's strategic direction and objectives, ensuring that the right work is being done to achieve organizational goals. It is about choosing which initiatives to invest in based on strategic fit. Option A (resolving constraints across multiple projects) describes a function of program management. Option B (maximizing ROI) is a byproduct of good portfolio selection but not the primary stated aim. Option D (corporate governance and resource allocation) is a related concern but does not capture the core purpose, which is strategic alignment.

Topics

#Portfolio management#Strategic alignment#Organizational strategy

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