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PFMP · Question #359

Your company's new CEO has set an aggressive target and informed everyone that the target needs to be met by all means in order for the company to be able to realize benefits and avoid bankruptcy. Wha

The correct answer is A. Directing. When an organization faces an existential threat requiring mandatory, aggressive action, a directing management style is most appropriate because it provides clear, authoritative guidance without ambiguity.

Strategic Alignment

Question

Your company's new CEO has set an aggressive target and informed everyone that the target needs to be met by all means in order for the company to be able to realize benefits and avoid bankruptcy. What is the best management approach that the portfolio manager should take in this case?

Options

  • ADirecting
  • BAdvising
  • CLeading
  • DSupporting

How the community answered

(21 responses)
  • A
    86% (18)
  • C
    10% (2)
  • D
    5% (1)

Why each option

When an organization faces an existential threat requiring mandatory, aggressive action, a directing management style is most appropriate because it provides clear, authoritative guidance without ambiguity.

ADirectingCorrect

A directing management approach is appropriate when urgency is high, stakes are critical (such as avoiding bankruptcy), and there is no room for debate or gradual consensus-building. The portfolio manager must issue clear, non-negotiable direction to align the team's actions with the CEO's mandated targets, ensuring swift and unified execution.

BAdvising

Advising is a collaborative, low-authority style suitable for situations where guidance is offered but not mandated - inappropriate when survival of the company is at stake.

CLeading

Leading involves inspiring and guiding teams toward a vision, but lacks the top-down authority needed when an aggressive, non-negotiable target must be met immediately.

DSupporting

Supporting is the most hands-off style, appropriate for highly capable self-directed teams - wholly unsuitable for a crisis requiring decisive, mandatory direction.

Concept tested: Portfolio manager leadership styles in crisis scenarios

Source: https://www.pmi.org/pmbok-guide-standards/foundational/portfolio-management

Topics

#Portfolio Management#Strategic Alignment#Leadership Styles#Executive Mandates

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