PFMP · Question #759
Each year, you update the portfolio roadmap so people within the organization can see component status, interdependencies, constraints, and business value, among other things. This year, however…
The correct answer is D. The overall value of the portfolio is affected adversely. When two major programs are cancelled and those programs had dependencies with other portfolio components, the direct and most immediate consequence is that the overall value of the portfolio is adversely affected. The cancelled programs' planned contributions to portfolio…
Question
Each year, you update the portfolio roadmap so people within the organization can see component status, interdependencies, constraints, and business value, among other things. This year, however, two major programs in the portfolio were cancelled as they were government contracts, and the government lacked funds to complete them. Your management then had to reduce staffing. These two programs had dependencies with other components in the portfolio. This means that:
Options
- AThe other components may need to be cancelled
- BThe proposed benefits from the other components require analysis to see if they can be realized
- CThe value measurement criteria for portfolio components require updates
- DThe overall value of the portfolio is affected adversely
How the community answered
(47 responses)- A4% (2)
- B6% (3)
- C11% (5)
- D79% (37)
Explanation
When two major programs are cancelled and those programs had dependencies with other portfolio components, the direct and most immediate consequence is that the overall value of the portfolio is adversely affected. The cancelled programs' planned contributions to portfolio value are lost, and the dependent components may deliver less value or require rework. Option A (other components may need cancellation) is possible but not certain - components can sometimes proceed independently or be restructured. Option B (benefits analysis for dependent components) is an action the portfolio manager may take, not the consequence itself. Option C (updating value measurement criteria) is a procedural response. The factual outcome is portfolio value degradation, making D the correct answer.
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