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PFMP · Question #463

The Portfolio Management Office plays an integral role in Portfolio Management and offers support to the portfolio manager throughout the portfolio life cycle. What is the role of the PMO with…

The correct answer is D. PMO should be prepared to develop new metrics when appropriate and delete or change metrics. This question tests understanding of the PMO's active role in managing and maintaining portfolio performance metrics throughout the portfolio life cycle.

Portfolio Performance Management

Question

The Portfolio Management Office plays an integral role in Portfolio Management and offers support to the portfolio manager throughout the portfolio life cycle. What is the role of the PMO with respect to the portfolio performance metrics?

Options

  • APMO does not have a role in the development or update of performance metrics; it should only
  • BThe Portfolio Manager develops and updates the portfolio metrics and the PMO approves them
  • CPMO should work hand in hand with the governance board to approve the performance metrics
  • DPMO should be prepared to develop new metrics when appropriate and delete or change metrics

How the community answered

(44 responses)
  • A
    5% (2)
  • B
    7% (3)
  • C
    11% (5)
  • D
    77% (34)

Why each option

This question tests understanding of the PMO's active role in managing and maintaining portfolio performance metrics throughout the portfolio life cycle.

APMO does not have a role in the development or update of performance metrics; it should only

The PMO is not limited to a passive monitoring role - it actively participates in developing and updating performance metrics as a core function.

BThe Portfolio Manager develops and updates the portfolio metrics and the PMO approves them

The relationship is collaborative rather than sequential approval - the PMO does not simply produce metrics for the Portfolio Manager to rubber-stamp.

CPMO should work hand in hand with the governance board to approve the performance metrics

While the governance board uses performance metrics, approving them is not the PMO's primary collaboration point - the PMO works directly with the portfolio manager on metrics development.

DPMO should be prepared to develop new metrics when appropriate and delete or change metricsCorrect

The PMI Standard for Portfolio Management assigns the PMO an active and ongoing role in performance metrics management, including developing new metrics as the portfolio evolves and removing or revising metrics that are no longer relevant or accurate. This ensures the performance measurement system remains aligned with current portfolio objectives and provides meaningful data to stakeholders and governance boards.

Concept tested: PMO role in portfolio performance metrics management

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

Topics

#Portfolio Management Office#Performance Metrics#PMO Responsibilities#Portfolio Performance Management

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