A portfolio manager is prioritizing a list of potential components and wants to ensure that the application of funding achieves maximum benefit. Which tool or technique should the portfolio manager…

Question

Options

• APortfolio organizational structure analysis
• BCapability and capacity analysis
• CElicitation techniques
• DReadiness assessment

• A
  5% (1)
• B
  73% (16)
• C
  9% (2)
• D
  14% (3)

Explanation

Capability and capacity analysis examines what the organization can realistically achieve given available resources, skills, and funding. This directly enables portfolio optimization by matching investment to executable capacity, preventing over-commitment. Portfolio organizational structure analysis (A) addresses roles and governance, not funding efficiency. Elicitation techniques (C) are used to gather information and requirements, not to optimize allocation. Readiness assessment (D) determines if a component can start, not how to maximize benefit across the entire portfolio. Capability and capacity analysis is the correct technique for ensuring funding is applied where it can deliver the greatest return within realistic constraints.

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