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PFMP · Question #619

Working as the portfolio manager for your business unit of a major aerospace organization means you have a variety of programs, projects, and operational activities under way. You have set up a number

The correct answer is A. Organizational strategy. Portfolio management exists specifically to execute organizational strategy. Monitoring against organizational strategy is the highest-level and most appropriate benchmark for portfolio progress because the portfolio's entire purpose is strategic execution. Goals (B), KPIs (C), a

Question

Working as the portfolio manager for your business unit of a major aerospace organization means you have a variety of programs, projects, and operational activities under way. You have set up a number of reports on the progress of the portfolio for your various stakeholders, but the best approach is to monitor the progress of the portfolio against:

Options

  • AOrganizational strategy
  • BOrganizational goals
  • CSpecific key performance indicators for the business unit
  • DOrganizational critical success factors

How the community answered

(26 responses)
  • A
    77% (20)
  • B
    12% (3)
  • C
    8% (2)
  • D
    4% (1)

Explanation

Portfolio management exists specifically to execute organizational strategy. Monitoring against organizational strategy is the highest-level and most appropriate benchmark for portfolio progress because the portfolio's entire purpose is strategic execution. Goals (B), KPIs (C), and critical success factors (D) are all derived from and subordinate to strategy-they are tactical measures. If the portfolio is aligned with strategy, those measures will follow. Monitoring against strategy ensures the portfolio remains on course to deliver the intended strategic value, not just operational metrics.

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