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PFMP · Question #286

One of the junior portfolio managers learned that she needs to perform organizational structure analysis as part of the portfolio management plan development. She does not understand why and she…

The correct answer is A. Portfolio Management roles and responsibilities are defined based on this analysis. Organizational structure analysis examines the organization's hierarchy, reporting lines, functional areas, and existing governance mechanisms. This analysis is a tool/technique used in 'Develop Portfolio Management Plan' specifically because it directly informs how portfolio…

Governance

Question

One of the junior portfolio managers learned that she needs to perform organizational structure analysis as part of the portfolio management plan development. She does not understand why and she came to you for advice. What is your advice to her?

Options

  • APortfolio Management roles and responsibilities are defined based on this analysis
  • BThis analysis, along with the analysis of the portfolio structure from the charter, help in the
  • CThis analysis will help in prioritizing the portfolio
  • DThis analysis is part of the develop strategic plan and not develop portfolio management plan

How the community answered

(27 responses)
  • A
    93% (25)
  • B
    4% (1)
  • C
    4% (1)

Explanation

Organizational structure analysis examines the organization's hierarchy, reporting lines, functional areas, and existing governance mechanisms. This analysis is a tool/technique used in 'Develop Portfolio Management Plan' specifically because it directly informs how portfolio management roles and responsibilities should be defined and assigned within the organization. Without understanding the organizational structure, you cannot properly define who owns what in the portfolio management framework. Option B is partially true conceptually but is not the precise PMI answer for this process. Option C (prioritization) is related to a different process. Option D is incorrect – organizational structure analysis is explicitly a tool and technique of 'Develop Portfolio Management Plan,' not 'Develop Strategic Plan.'

Topics

#Portfolio Management Plan#Organizational Structure Analysis#Roles and Responsibilities#Portfolio Governance

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