PFMP · Question #105
During a review of a draft portfolio management plan, a portfolio manager discovers that portfolio goals are misaligned with organizational strategy. What should the portfolio manager do next?
The correct answer is A. Rebalance the portfolio based on the organizational strategy. When portfolio goals are found to be misaligned with organizational strategy, the portfolio manager must rebalance the portfolio to restore alignment, since portfolio management exists to execute strategy.
Question
During a review of a draft portfolio management plan, a portfolio manager discovers that portfolio goals are misaligned with organizational strategy. What should the portfolio manager do next?
Options
- ARebalance the portfolio based on the organizational strategy.
- BEscalate the issue to senior management.
- COrganize a brainstorming session with key stakeholders.
- DDocument the gaps in the portfolio management plan.
How the community answered
(39 responses)- A77% (30)
- B5% (2)
- C3% (1)
- D15% (6)
Why each option
When portfolio goals are found to be misaligned with organizational strategy, the portfolio manager must rebalance the portfolio to restore alignment, since portfolio management exists to execute strategy.
The portfolio must always subordinate itself to organizational strategy, not the reverse. Discovering misalignment during a plan review requires the portfolio manager to immediately rebalance - adjusting, adding, or removing components - so that portfolio goals once again support the stated strategic objectives.
Escalating to senior management may sometimes be necessary, but rebalancing the portfolio to align with strategy is the direct corrective action the portfolio manager is responsible for taking first.
Organizing a brainstorming session is not the appropriate immediate response when a clear misalignment with documented organizational strategy has already been identified during a plan review.
Documenting gaps is a lower-priority administrative step; the portfolio manager must first take corrective action by rebalancing rather than simply recording the problem.
Concept tested: Portfolio rebalancing to restore strategic alignment
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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