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PFMP · Question #270

Which factors are most useful in establishing the priority for components in a portfolio?

The correct answer is D. Organizational goals, financial metrics, and resource availability. Effective portfolio prioritization requires evaluating three dimensions: strategic (organizational goals - does this component advance what the organization is trying to achieve?), financial (financial metrics - does it deliver sufficient ROI, NPV, or other financial value?)…

Strategic Alignment

Question

Which factors are most useful in establishing the priority for components in a portfolio?

Options

  • ADuration, cost, and components'benefits
  • BFunctional unit goals, duration, and benefits
  • CParticipation by key sponsors, functional unit needs, and cost
  • DOrganizational goals, financial metrics, and resource availability

How the community answered

(58 responses)
  • A
    3% (2)
  • B
    2% (1)
  • C
    7% (4)
  • D
    88% (51)

Explanation

Effective portfolio prioritization requires evaluating three dimensions: strategic (organizational goals - does this component advance what the organization is trying to achieve?), financial (financial metrics - does it deliver sufficient ROI, NPV, or other financial value?), and feasibility (resource availability - can the organization actually execute it?). Together, these three factors ensure the highest-value, most strategically aligned, and executable components are prioritized. Duration and cost alone (A) are insufficient without strategic context. Functional unit goals (B) are narrower than organizational goals and duration is not a prioritization driver. Key sponsor participation and functional unit needs (C) reflect political and departmental factors rather than enterprise-level prioritization criteria.

Topics

#Portfolio Prioritization#Strategic Alignment#Resource Management#Financial Management

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