PFMP · Question #625
Portfolio balancing can be done in several different dimensions based on organizational preferences. When your software development company, which is CMMI Level 5 certified, began to focus on portfoli
The correct answer is A. Balance the portfolio across the organization. Portfolio balancing is an organization-wide activity. The portfolio exists to serve the entire organization's strategic objectives, so balancing must consider all organizational resources, priorities, and risk tolerance holistically-not just within a single category (B), a single
Question
Portfolio balancing can be done in several different dimensions based on organizational preferences. When your software development company, which is CMMI Level 5 certified, began to focus on portfolio management four years ago, you started with a simplified ranking approach and now moved into using an automated, sophisticated weighted scoring software tool throughout the organization. In terms of portfolio balancing, it is appropriate to:
Options
- ABalance the portfolio across the organization
- BBalance the portfolio according to categories
- CBalance the portfolio by business unit
- DBalance the portfolio in terms of expected value of benefits
How the community answered
(37 responses)- A84% (31)
- B8% (3)
- C5% (2)
- D3% (1)
Explanation
Portfolio balancing is an organization-wide activity. The portfolio exists to serve the entire organization's strategic objectives, so balancing must consider all organizational resources, priorities, and risk tolerance holistically-not just within a single category (B), a single business unit (C), or a single dimension like expected financial value (D). Option B (balance by categories) is one technique within balancing but represents a subset of the complete process. Option C (balance by business unit) is too narrow a scope; it would optimize for a silo rather than the organization. Option D (balance by expected value of benefits) is one scoring dimension, not a complete balancing approach. For a mature organization like a CMMI Level 5 company using weighted scoring tools, organization-wide balancing reflects best practice.
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