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…
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)- A3% (1)
- B17% (5)
- C10% (3)
- D69% (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.
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