PFMP · Question #49
What is the definition of Results Chain?
The correct answer is D. A chart that shows the cause and effect relationships between the portfolio components. A Results Chain is a visual diagram that maps the cause-and-effect relationships connecting portfolio components to each other and to intended strategic outcomes.
Question
What is the definition of Results Chain?
Options
- AA chart that begins with one central item and then branches into more and keeps branching
- BA cause-and-effect diagram that helps managers to track down the reasons for imperfections,
- CA set of activities that a firm operating in a specific industry performs to deliver a valuable product
- DA chart that shows the cause and effect relationships between the portfolio components
How the community answered
(35 responses)- A3% (1)
- B6% (2)
- D91% (32)
Why each option
A Results Chain is a visual diagram that maps the cause-and-effect relationships connecting portfolio components to each other and to intended strategic outcomes.
A chart that begins with one central item and branches outward describes a mind map, not a Results Chain.
A cause-and-effect diagram used to track down reasons for imperfections describes an Ishikawa (fishbone) diagram, a quality management tool that is unrelated to the Results Chain concept.
A set of activities a firm performs to deliver a valuable product describes Porter's Value Chain, a strategic business framework that is not the same as a Results Chain in portfolio management.
A Results Chain is used in portfolio management to trace how investments in portfolio components lead to intermediate results and ultimately to desired organizational benefits through a linked chain of cause-and-effect relationships. It helps portfolio managers and sponsors understand the logical flow from program activities to strategic value.
Concept tested: Results Chain definition in portfolio management
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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