PFMP · Question #654
Assume you are new to your organization and you were hired specifically to help implement portfolio management in your new manufacturing company. Having worked in portfolio management for the past…
The correct answer is B. The organization lacks a defined strategy. The fundamental challenge to implementing portfolio management in a new organization is the absence of a defined strategy, since portfolio management exists specifically to align components to strategic objectives.
Question
Assume you are new to your organization and you were hired specifically to help implement portfolio management in your new manufacturing company. Having worked in portfolio management for the past five years, you know it is a major culture change. It is definitely a challenge at your new company because:
Options
- AThe organization basically has many operational activities, and only a few projects are under way
- BThe organization lacks a defined strategy
- CThe few projects that are under way are not interdependent
- DOperational activities have continued without any major changes for years
How the community answered
(52 responses)- A10% (5)
- B83% (43)
- C4% (2)
- D4% (2)
Why each option
The fundamental challenge to implementing portfolio management in a new organization is the absence of a defined strategy, since portfolio management exists specifically to align components to strategic objectives.
Having many operational activities and few projects is a common organizational profile and does not in itself prevent the implementation of portfolio management.
Portfolio management is built on the principle of aligning all components - programs, projects, and operations - to organizational strategy in order to achieve strategic objectives. Without a defined strategy, there is no direction to align to, making it impossible to evaluate, prioritize, or balance portfolio components effectively. This is the root challenge, as every other portfolio management process depends on a clear strategy existing first.
Non-interdependent projects are not a prerequisite barrier; portfolio management can still categorize and prioritize independent components.
Long-running, stable operational activities are a normal organizational element and do not inherently obstruct portfolio management implementation.
Concept tested: Strategic alignment as prerequisite for portfolio management
Source: https://www.pmi.org/pmbok-guide-standards/foundational/portfolio-management
Community Discussion
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