PFMP · Question #670
With the increasing use of drywall, your company, which has been in the plaster business for over three generations, is finding it harder to maintain a share of the market and to achieve a positive…
The correct answer is C. Is used to authorize the portfolio. Reports of Portfolio Governance Council decisions serve primarily to authorize the portfolio, providing the formal documentation that enables components to proceed based on governance approvals.
Question
With the increasing use of drywall, your company, which has been in the plaster business for over three generations, is finding it harder to maintain a share of the market and to achieve a positive return on its investments. Three years ago, the corporate executives implemented a portfolio process, and they serve as the Portfolio Governance Council. They meet monthly, and after each meeting, you prepare a report of their decisions. This report is:
Options
- ASent to all employees in the company as it focuses on employee empowerment and involvement
- BDistributed only to the Governance Council to serve as a record of their meetings
- CIs used to authorize the portfolio
- DIs used to analyze the effects of their decisions on the company's portfolio
How the community answered
(56 responses)- A7% (4)
- B2% (1)
- C79% (44)
- D13% (7)
Why each option
Reports of Portfolio Governance Council decisions serve primarily to authorize the portfolio, providing the formal documentation that enables components to proceed based on governance approvals.
Distributing governance decisions to all employees may support a transparency culture, but broad communication to the entire workforce is not the primary purpose of a formal governance council decision report.
Restricting distribution solely to the Governance Council would prevent the report from fulfilling its authorization function across the portfolio management system, where component managers and sponsors need formal approval records.
Portfolio governance council decisions represent the formal authorization mechanism for the portfolio and its components; the report capturing those decisions functions as the authorizing artifact that grants permission for components to initiate, continue, be modified, or be terminated - making authorization the primary purpose of this report rather than communication or analysis.
Analyzing the effects of decisions on the portfolio is an analytical activity that may follow receipt of the report, but the document's primary function is authorization, not analysis.
Concept tested: Portfolio governance council report as a portfolio authorization document
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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