PFMP · Question #682
In your diversified chicken products company, your portfolio of components in progress consists of approximately 175 programs, projects, and other work. Generally, at each Portfolio Review Board…
The correct answer is D. They address organizational strategy and objectives. Portfolio component categories are not merely administrative filters or evaluation tools-they are strategic constructs. They are defined based on the organization's strategic objectives and help ensure every component in the portfolio is mapped to a specific organizational goal…
Question
In your diversified chicken products company, your portfolio of components in progress consists of approximately 175 programs, projects, and other work. Generally, at each Portfolio Review Board meeting, about 35 new proposals are reviewed to see if they should be part of the portfolio. As the portfolio manager, you have set up categories for these components. They are useful to facilitate portfolio optimization because:
Options
- AThey use filtering to eliminate certain components from consideration
- BThey help identify the components that meet requirements for consideration
- CThey serve as key evaluation criteria
- DThey address organizational strategy and objectives
How the community answered
(39 responses)- A8% (3)
- B5% (2)
- C3% (1)
- D85% (33)
Explanation
Portfolio component categories are not merely administrative filters or evaluation tools-they are strategic constructs. They are defined based on the organization's strategic objectives and help ensure every component in the portfolio is mapped to a specific organizational goal or direction. This alignment is what makes portfolio optimization possible: you cannot optimize a portfolio without understanding how its components relate to strategy. Choice A (filtering) and B (identifying eligible components) describe outputs of categorization, not its purpose. Choice C (key evaluation criteria) describes scoring models, not categories. Choice D is correct because categories exist to ensure the portfolio reflects and supports the organization's strategic direction, enabling decision-makers to balance investments across strategic objectives.
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