A portfolio manager is developing a comprehensive portfolio management plan and is unsure which performance metrics need to be defined for the portfolio components. Which action should the portfolio…

Question

Options

• AAnalyze the process assets.
• BConduct a survey with stakeholders.
• CPerform a capability and capacity analysis.
• DPerform an environment analysis.

• A
  5% (1)
• B
  14% (3)
• C
  77% (17)
• D
  5% (1)

Explanation

A capability and capacity analysis identifies what the organization can realistically do and with what resources - this directly informs which performance metrics are meaningful and measurable for each component. Without understanding capacity, metrics may be set that cannot be tracked or are irrelevant to what the organization can deliver. Analyzing process assets (A) reviews existing procedures and templates but does not identify what metrics are appropriate for new components. A stakeholder survey (B) gathers opinions but stakeholders may not know what measurable performance indicators are feasible. An environment analysis (D) examines external factors and is too broad to inform specific performance metric selection. Capability and capacity analysis is the targeted tool for this purpose.

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