Which type of analysis should be used to evaluate whether an organization can approve, fund, and execute portfolio components?

Question

Options

• AStrengths, weaknesses, opportunities, and threats
• BCapability and capacity
• CRisk scoring
• DCost-benefit

• A
  2% (1)
• B
  87% (47)
• C
  7% (4)
• D
  4% (2)

Explanation

Capability and capacity analysis directly evaluates whether the organization possesses the skills, competencies, resources, and bandwidth needed to approve, fund, and execute portfolio components. Capability refers to what the organization is able to do (skills, processes, tools), while capacity refers to how much it can do given existing commitments and constraints. This is precisely the right lens for determining portfolio feasibility and achievability. SWOT analysis (A) is a strategic tool for identifying internal strengths/weaknesses and external opportunities/threats. Risk scoring (C) assesses uncertainty and potential negative impacts. Cost-benefit analysis (D) evaluates financial viability. None of these directly answer the question of organizational readiness and bandwidth to execute.

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