PFMP · Question #661
Assume you recently were hired to be the first portfolio manager at the leading producer of soft drink beverages. While the company is well known for one product, it wants to be the leader in other…
The correct answer is D. Review portfolio goals. When preparing a portfolio performance plan, the first step is to review portfolio goals, which serve as the baseline against which all performance will be measured.
Question
Assume you recently were hired to be the first portfolio manager at the leading producer of soft drink beverages. While the company is well known for one product, it wants to be the leader in other products and services as well. When you were hired, you told the CEO it would take time to fully implement portfolio management, and you first would prepare a number of artifacts. He set up a Portfolio Review Board, and its members are reviewing your work. As they reviewed the portfolio management plan, one of the members suggested you prepare an in-depth portfolio performance plan. Your first step is to:
Options
- AAlign strategic management to the goals and objectives
- BReview the prioritization model
- CAssess the risk profile
- DReview portfolio goals
How the community answered
(40 responses)- A10% (4)
- B8% (3)
- C3% (1)
- D80% (32)
Why each option
When preparing a portfolio performance plan, the first step is to review portfolio goals, which serve as the baseline against which all performance will be measured.
Aligning strategic management to goals is a broader organizational activity that precedes portfolio performance planning, not a first step within the performance plan itself.
Reviewing the prioritization model is a component selection and ranking activity, not the starting point for developing a portfolio performance plan.
Assessing the risk profile belongs to risk management planning, which is a separate artifact from the performance plan and is not its first step.
Reviewing portfolio goals is the foundational first step because a performance plan must be anchored to the established goals and objectives of the portfolio; without understanding these goals, any performance metrics or tracking mechanisms would lack strategic direction and measurable targets.
Concept tested: Portfolio performance plan development first step
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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