What is Project Portfolio Management?

Question

Options

• AManagement of a project by dividing the project into more manageable sub-projects.
• BManagement of a project by utilizing a portfolio of general management skills, such as
• CManagement of all projects undertaken by a company.
• DManagement of a collection of projects that are grouped together to facilitate effective

• A
  5% (2)
• B
  9% (4)
• C
  11% (5)
• D
  75% (33)

Explanation

Project Portfolio Management (PPM) refers to the centralized management of a collection of projects grouped together to facilitate effective management and help meet strategic business objectives - making D correct. The key concept is that a portfolio groups projects strategically, not just administratively.

• A is wrong because dividing a project into sub-projects describes a Work Breakdown Structure (WBS) or program decomposition, not portfolio management.
• B is wrong because applying general management skills describes a project manager's competency set, not a portfolio management practice.
• C is wrong because "all projects undertaken by a company" is too broad and unstructured - portfolio management implies deliberate grouping and prioritization to align with strategy, not simply tracking everything.

Memory tip: Think of a financial portfolio - an investor doesn't just hold every stock randomly; they select and group investments strategically. Similarly, PPM selects and groups projects to maximize organizational value and strategic alignment.

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