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PFMP · Question #115

A new product development subportfolio has been cancelled at the last steering committee meeting due to tight budget constraints. What is the next step the portfolio manager should take as part of…

The correct answer is D. Analyze this recent change via scenario analysis for resources now available and then update the. When a subportfolio is cancelled, the manage supply and demand process requires the portfolio manager to first analyze newly available resources through scenario analysis before taking any redistribution actions.

Portfolio Performance Management

Question

A new product development subportfolio has been cancelled at the last steering committee meeting due to tight budget constraints. What is the next step the portfolio manager should take as part of the manage supply and demand process?

Options

  • ADiscuss the remaining budget from this change with other sponsors within the portfolio and
  • BDiscuss available human resources with other portfolio managers and gain agreement on next
  • CLog this in the portfolio risk register as a positive risk and discuss it at the next steering committee
  • DAnalyze this recent change via scenario analysis for resources now available and then update the

How the community answered

(49 responses)
  • A
    4% (2)
  • B
    8% (4)
  • C
    14% (7)
  • D
    73% (36)

Why each option

When a subportfolio is cancelled, the manage supply and demand process requires the portfolio manager to first analyze newly available resources through scenario analysis before taking any redistribution actions.

ADiscuss the remaining budget from this change with other sponsors within the portfolio and

Discussing remaining budget with other sponsors is a stakeholder action that should occur after scenario analysis informs what resources are available and how they can be best applied.

BDiscuss available human resources with other portfolio managers and gain agreement on next

Discussing human resources with other portfolio managers is premature before analysis establishes which resources are available and what strategic priorities they should serve.

CLog this in the portfolio risk register as a positive risk and discuss it at the next steering committee

Logging the cancellation as a positive risk is not the correct process step within manage supply and demand; that process focuses on resource reallocation, not risk logging.

DAnalyze this recent change via scenario analysis for resources now available and then update theCorrect

Scenario analysis allows the portfolio manager to evaluate different options for reallocating resources freed by the cancelled subportfolio, ensuring decisions are data-driven and aligned with strategic priorities. Updating the relevant portfolio documents after the analysis ensures the portfolio accurately reflects the new resource availability. This systematic approach follows the manage supply and demand process, which requires analysis before reallocation decisions.

Concept tested: Manage supply and demand process after portfolio change

Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management

Topics

#Portfolio Resource Management#Supply and Demand Management#Portfolio Optimization#Scenario Analysis

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