Portfolio Definition Cycle

MoP describes two cycles. What are they?

• A The strategic cycle and the operational cycle
• B The planning cycle and the closing cycle
• C The initiation cycle and the benefits cycle
• D The portfolio definition cycle and the portfolio delivery cycle ✓

Answer: MoP is built around two interrelated cycles: the portfolio definition cycle and the portfolio delivery cycle.

How many practices make up the portfolio definition cycle in MoP?

• A Four
• B Five ✓
• C Six
• D Three

Answer: The portfolio definition cycle comprises five practices: understand, categorise, prioritise, balance and plan.

Which set correctly lists the five practices of the portfolio definition cycle?

• A Understand, categorise, prioritise, balance, plan ✓
• B Initiate, plan, execute, monitor, close
• C Identify, define, deliver, review, close
• D Plan, do, check, act, improve

Answer: The portfolio definition cycle consists of understand, categorise, prioritise, balance and plan, which together produce a clearly defined portfolio.

What is the main aim of the 'understand' practice in the portfolio definition cycle?

• A To collect data and gain a clear, evidence-based picture of the current portfolio and proposed initiatives ✓
• B To close completed projects
• C To allocate final benefits to business owners
• D To negotiate supplier contracts

Answer: The understand practice gathers consistent, robust information about existing and proposed initiatives so the organisation knows what is in flight and what is being considered.

The 'categorise' practice in the portfolio definition cycle primarily involves:

• A Appointing a programme manager to each project
• B Grouping initiatives into segments such as strategic themes or investment types ✓
• C Calculating earned value for each project
• D Closing the portfolio at year end

Answer: Categorisation organises initiatives into meaningful groups or segments (for example by strategic objective or change type) to aid analysis and balanced decision-making.

What is the purpose of the 'prioritise' practice?

• A To rank initiatives so that those offering the greatest contribution to objectives are favoured for resources ✓
• B To assign risk owners to each benefit
• C To schedule daily stand-up meetings
• D To select the cheapest supplier

Answer: Prioritisation ranks initiatives, usually against agreed criteria such as strategic contribution, return and risk, so limited funds and resources go to the most valuable changes.