A portfolio is currently being executed for an organization that has decided to merge with another organization. Senior management requests that the portfolio be evaluated to determine if it should…

Question

Options

• AThe portfolio should be evaluated against metrics and targets related to the strategies and
• BThe portfolio should be compared against all other portfolios in order to evaluate its significance
• CThe portfolio metrics should be assessed to evaluate its current status, return on investment, and
• DThe portfolios of the new organization should be compared using the original set of metrics and

• A
  71% (27)
• B
  5% (2)
• C
  8% (3)
• D
  16% (6)

Explanation

When a merger triggers a re-evaluation of whether a portfolio should continue or be terminated, the assessment must be conducted against the metrics and targets tied to the organization's current strategies and objectives. A merger shifts organizational strategy, so the portfolio's value and relevance must be judged against the new strategic direction, not historical targets or peer portfolios. Comparing against other portfolios (B) measures relative significance, not strategic fit. Evaluating current status and ROI (C) is useful but incomplete without the strategic context. Using the original metrics (D) would be misleading because the strategic goals have changed.

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