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PFMP · Question #363

A portfolio manager needs to continuously balance the need and requirements with the available resources and needs to maintain a balanced portfolio and portfolio resources in order to optimize…

The correct answer is A. Performed to understand the human, financial, and asset capacity and capability of the. Capability and Capacity Analysis serves a distinct purpose in each of the four portfolio processes where it appears. When used in the context of developing the Performance Management Plan, its purpose is specifically to understand the human, financial, and asset capacity and…

Portfolio Performance Management

Question

A portfolio manager needs to continuously balance the need and requirements with the available resources and needs to maintain a balanced portfolio and portfolio resources in order to optimize delivery. Capability and Capacity analysis is performed in 4 of the portfolio management processes and it serves a slightly different purpose in each and every one of them. When it relates to developing the performance management plan, what is the purpose of using this analysis?

Options

  • APerformed to understand the human, financial, and asset capacity and capability of the
  • BTo study the capability of resources, match them against the portfolio's objectives and goals, and
  • CTo understand how much work is able to be performed based on the resources available
  • DIt enables the organization to achieve maximum portfolio benefits given current resource

How the community answered

(28 responses)
  • A
    93% (26)
  • B
    4% (1)
  • C
    4% (1)

Explanation

Capability and Capacity Analysis serves a distinct purpose in each of the four portfolio processes where it appears. When used in the context of developing the Performance Management Plan, its purpose is specifically to understand the human, financial, and asset capacity and capability of the organization - establishing a comprehensive baseline of what the organization can actually sustain. Option C (how much work can be performed) is more aligned with the 'Manage Supply and Demand' process. Option B (matching resources against objectives) is more relevant to optimization processes. Option D (achieving maximum benefits given resources) relates more to value management contexts.

Topics

#Portfolio Performance Management#Capability Analysis#Capacity Analysis#Resource Management

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