Portfolio Management Principles

What is the primary purpose of Management of Portfolios (MoP)?

• A To manage the day-to-day operations of business-as-usual functions
• B To deliver a single project on time and within budget
• C To ensure that an organisation's programmes and projects, taken together, contribute optimally to strategic objectives ✓
• D To replace programme and project management methods entirely

Answer: MoP focuses on doing the right programmes and projects and doing them right, so that the total portfolio of change delivers maximum value against the organisation's strategic objectives.

MoP describes how many principles that underpin effective portfolio management?

• A Seven
• B Three
• C Four
• D Five ✓

Answer: MoP defines five principles: senior management commitment, governance alignment, strategy alignment, a portfolio office, and an energised change culture.

Which of the following is one of the five MoP principles?

• A Continuous deployment
• B Earned value management
• C Critical chain scheduling
• D Senior management commitment ✓

Answer: Senior management commitment is one of the five principles; visible, sustained leadership support is essential for portfolio management to succeed.

The MoP principle of 'governance alignment' is mainly concerned with ensuring that:

• A The portfolio's decision-making bodies are aligned with the organisation's wider governance arrangements ✓
• B Every project uses the same scheduling software
• C Suppliers are governed by fixed-price contracts
• D Operational teams report directly to the portfolio office

Answer: Governance alignment ensures portfolio governance is consistent with, and connected to, the organisation's business and corporate governance so decisions are coherent.

Which MoP principle ensures that the portfolio is, and remains, consistent with the organisation's strategic objectives?

• A Senior management commitment
• B Energised change culture
• C Portfolio office
• D Strategy alignment ✓

Answer: The strategy alignment principle ensures the collection of changes in the portfolio is derived from and contributes to the organisation's strategic objectives.

What does the MoP principle of an 'energised change culture' promote?

• A Outsourcing of all change activity to third parties
• B An environment where staff are engaged, motivated and supportive of the changes being delivered ✓
• C Resistance to all organisational change
• D Mandatory overtime during delivery phases

Answer: An energised change culture fosters an organisation that embraces and is enthusiastic about change, improving the chances of successful benefits realisation.