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PFMP · Question #679

The portfolio management process ensures the components are aligned to goals. However, it is driven by:

The correct answer is C. Organizational strategy and objectives. Portfolio management is fundamentally driven by organizational strategy and objectives, which provide the directional framework that governs all portfolio decisions.

Question

The portfolio management process ensures the components are aligned to goals. However, it is driven by:

Options

  • AViability
  • BValue and benefits
  • COrganizational strategy and objectives
  • DInterdependencies and resource constraints

How the community answered

(38 responses)
  • A
    3% (1)
  • B
    11% (4)
  • C
    74% (28)
  • D
    13% (5)

Why each option

Portfolio management is fundamentally driven by organizational strategy and objectives, which provide the directional framework that governs all portfolio decisions.

AViability

Viability is one evaluation criterion considered when assessing individual components, but it is not the overarching driving force behind the portfolio management process as a whole.

BValue and benefits

Value and benefits are intended outcomes that portfolio management is designed to deliver; they are results of the process, not the driver that initiates and directs it.

COrganizational strategy and objectivesCorrect

Portfolio management exists to ensure that the selection, prioritization, and oversight of components advances the organization's strategic goals and objectives; strategy is the initiating and governing force that determines which components belong in the portfolio and how they should be managed from authorization through benefits realization.

DInterdependencies and resource constraints

Interdependencies and resource constraints are execution-level considerations that shape how the portfolio is managed, not the strategic driver that defines why the portfolio exists.

Concept tested: Organizational strategy as the driver of portfolio management

Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management

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