PFMP · Question #746
Assume after the acquisition of the natural gas transmission company by your company, a natural gas distribution company, was approved by the various regulatory agencies. You now are overseeing more…
The correct answer is C. A way to set up a common set of decision filters. Organizing portfolio components into defined categories enables a common set of decision filters that can be applied consistently across both organizations after the acquisition.
Question
Assume after the acquisition of the natural gas transmission company by your company, a natural gas distribution company, was approved by the various regulatory agencies. You now are overseeing more components with this acquisition as the portfolio manager. While you had each of the components in your company set up in various categories, this approach had not been followed by the transmission company. You explained to its portfolio manager and staff such an approach enables:
Options
- ACommon criteria for portfolio optimization
- BA similar approach to track contribution to strategic goals
- CA way to set up a common set of decision filters
- DAn alignment with the prioritization model
How the community answered
(20 responses)- A15% (3)
- B10% (2)
- C70% (14)
- D5% (1)
Why each option
Organizing portfolio components into defined categories enables a common set of decision filters that can be applied consistently across both organizations after the acquisition.
Common criteria for portfolio optimization is a broader outcome that follows from categorization but is not the direct enabler that categorization provides.
Tracking contribution to strategic goals relies on strategic alignment mapping, which is a separate process from categorization.
Categorization of portfolio components establishes structured groupings (e.g., by type, strategic theme, or risk level) that function as decision filters - criteria that allow decision-makers to consistently evaluate, compare, and select components using the same lens. When two organizations merge, aligning on a shared categorization scheme ensures that evaluation decisions are made with the same filters applied to all components, regardless of origin. This is the foundational purpose of portfolio categorization in the PMI framework.
Alignment with the prioritization model is a downstream benefit; categorization must come first as the structural input to prioritization.
Concept tested: Portfolio component categorization enabling decision filters
Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management
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