Who establish(es) and approve(s) KPIs for portfolios?

The correct answer is D. Governance team and executives. Key Performance Indicators (KPIs) for portfolios are established and approved by the governance team and executives. Because KPIs measure whether strategic objectives are being achieved, they must be set at the highest organizational level by those who own the strategy. Functiona

Portfolio Governance

Question

Options

AFunctional managers
BPortfolio manager
CPerformance planning team
DGovernance team and executives

How the community answered

(27 responses)

A
4% (1)
B
7% (2)
D
89% (24)

Explanation

Key Performance Indicators (KPIs) for portfolios are established and approved by the governance team and executives. Because KPIs measure whether strategic objectives are being achieved, they must be set at the highest organizational level by those who own the strategy. Functional managers operate at a tactical level below portfolio management. The portfolio manager uses KPIs but does not unilaterally set them. A performance planning team may support the process but does not have the authority to approve KPIs-that authority rests with governance bodies and senior executives.

Topics

#Portfolio Governance#KPIs#Roles & Responsibilities#Executive Management

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