PFMP · Question #271
When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net…
The correct answer is B. Portfolio. Business value optimization occurs at the portfolio level, where strategic alignment of all components is managed to maximize the organization's net quantifiable benefit.
Question
When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net quantifiable benefit. When it comes to business value, at which level of the organization is the pursuit of Business Value optimized?
Options
- AProgram
- BPortfolio
- COperational
- DProject
How the community answered
(22 responses)- B91% (20)
- C5% (1)
- D5% (1)
Why each option
Business value optimization occurs at the portfolio level, where strategic alignment of all components is managed to maximize the organization's net quantifiable benefit.
Programs optimize benefits realization for a related set of projects, but not the full organizational business value across all strategic investments.
The portfolio level is where business value is optimized because the portfolio encompasses all programs, projects, and operations aligned to organizational strategy. Portfolio management balances and prioritizes components to ensure the greatest collective return and strategic benefit. This optimization is a primary responsibility of the portfolio manager and governance board.
Operational activities deliver ongoing value but do not optimize business value across the organization's strategic investments.
Projects deliver specific outputs and outcomes, but optimization of overall business value occurs at a higher organizational level.
Concept tested: Portfolio-level business value optimization
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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