PFMP · Question #728
Assume you are co-owner of a small consulting firm. Previously, you worked as a managing partner in one of the larger consulting firms in your country that had a defined portfolio management process…
The correct answer is A. Work with your business partner in terms of portfolio management. Portfolio management practices must be scaled to the size and complexity of the organization. A small consulting firm does not have the organizational mass to justify a formal Board of Directors serving as a Portfolio Review Board (B), an independent advisory group (D), or a…
Question
Assume you are co-owner of a small consulting firm. Previously, you worked as a managing partner in one of the larger consulting firms in your country that had a defined portfolio management process to determine key opportunities to pursue to focus not solely on proposal win ratio but to aggressively emphasize capture ratio. Now in your new company in terms of portfolio management, the best practice to follow is to:
Options
- AWork with your business partner in terms of portfolio management
- BHave your Board of Directors serve as a Portfolio Review Board
- CInvolve your business partner plus the firm's subject matter experts in portfolio decisions
- DSet up an independent group of advisors to meet quarterly as a Portfolio Review Board
How the community answered
(23 responses)- A83% (19)
- B4% (1)
- C9% (2)
- D4% (1)
Explanation
Portfolio management practices must be scaled to the size and complexity of the organization. A small consulting firm does not have the organizational mass to justify a formal Board of Directors serving as a Portfolio Review Board (B), an independent advisory group (D), or a complex governance structure. The PMI Standard for Portfolio Management recognizes that smaller organizations should apply portfolio principles pragmatically. Working directly with your business partner is the appropriate, right-sized approach - it preserves collaborative decision-making without imposing bureaucratic overhead that would be counterproductive in a small firm.
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