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PFMP · Question #259

A portfolio manager is asked to expand a portfolio. However, executives have been adding new projects to the portfolio that do not align strategically. This negatively impacts existing components…

The correct answer is D. Develop a formal governance model. Developing a formal governance model is the correct resolution because the root cause is the absence of a structured authority framework - executives are adding components without going through a strategic alignment validation process. A formal governance model establishes who…

Portfolio Governance

Question

A portfolio manager is asked to expand a portfolio. However, executives have been adding new projects to the portfolio that do not align strategically. This negatively impacts existing components. What should the portfolio manager do to resolve this situation?

Options

  • AImplement a change control process.
  • BCreate a responsible, accountable, consult, and inform (RACI) matrix.
  • CPropose a project management office (PMO).
  • DDevelop a formal governance model.

How the community answered

(29 responses)
  • A
    3% (1)
  • B
    17% (5)
  • C
    10% (3)
  • D
    69% (20)

Explanation

Developing a formal governance model is the correct resolution because the root cause is the absence of a structured authority framework - executives are adding components without going through a strategic alignment validation process. A formal governance model establishes who has authority to approve new components, what criteria must be met, and how decisions are escalated and reviewed. This addresses the systemic issue. A change control process (A) is a subset of governance and not sufficient on its own. A RACI matrix (B) clarifies roles but does not enforce strategic criteria. A PMO (C) might help operationally but does not address the governance gap directly.

Topics

#Portfolio Governance#Strategic Alignment#Decision-Making#Executive Oversight

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