Portfolio Performance Management ◾ 57
13. Assume you were asked by the director of your business unit to evaluate
how best to allocate scarce resources to existing components as he wants to
know if the resources are over allocated or have time available to support
new components in the portfolio. The best approach in terms of capability
and capacity analysis is to:
a. Evaluate existing competencies by using a competency analysis and per-
form a gap analysis
b. Use a SWOT analysis in terms of existing resources
c. Use nite capacity planning and reporting
d. Evaluate resource availability by using the PMIS
14. Establishing categories is a best practice in portfolio management especially
when making prioritization decisions and in resource allocation. Assume
your company, which produces a variety of ice machines to assist people
quickly recover from shoulder, ankle, and knee surgeries, set up eight dif-
ferent categories for its components with one being for mandatory require-
ments. When the Portfolio Review Board met on Friday, it made a decision
to add two components from the new products category and to terminate
three components in the research and development category. When you
reviewed these decisions, you found there were dependencies that had not
been considered, which also included:
a. Cost/ benet dependencies for the entire group
b. Resource implications given the specialized resources in the R&D
category
c. A short- term trend rather than taking a longer- term view of possible
future benets and their sustainability
d. The need to immediately call another meeting of the Review Board to
escalate your concerns
58 ◾ PfMP® Exam Practice Tests and Study Guide
15. Your organization conducted an OPM3
®
assessment of its portfolio manage-
ment practices and wanted to do so to evaluate the current portfolio man-
agement structure to see if it was adequate and had the right allocation of
resources. The OPM3
®
Certied Professional found that among other things
there was limited emphasis on portfolio management except in one business
unit. People in the one business unit had training on why portfolio manage-
ment was needed and had a dened process in place. After reviewing the
assessor’s report, it seemed obvious that:
a. This one business unit’s leader ship team should be commended for their
work
b. This one unit’s processes should be mandated across the company
c. The level of management commitment is uneven
d. More attention is needed on portfolio resource availability against the
integrated schedule in the company
16. Assume you were hired as the portfolio manager for the Inspector General’s
Ofce of your government agency. While this Ofce must do all inquiries
according to its mandate, portfolio management still is useful as in the port-
folio performance management process, as it then can:
a. Make resource sourcing decisions
b. Identify opportunities and threats
c. Achieve performance targets
d. Assess changes and dependencies
17. With the impact of new technology and the continual need to do more with
less, change in strategy is common in organizations. What worked well in
the past may not be suited to the dynamic environment. As strategy shifts
this means:
a. A gap is typical between the ‘as is’ state and the ‘to be state’
b. The original portfolio charter serves as a guideline
c. Interdependency analysis is required
d. Capability and capacity analysis should be performed
Portfolio Performance Management ◾ 59
18. Your low acid canned food company has come under scrutiny by regulatory
authorities lately as some of its well- known products have had to be recalled
as they contained botulism. Your executives decided the company needed
to change its name to avoid customer dissatisfaction and pursue other mar-
kets. You have been appointed as the portfolio manager, a new function for
this company. Since this is a new function to dene your role, a best prac-
tice is to review the:
a. Portfolio roadmap
b. Portfolio strategic plan
c. Portfolio charter
d. Portfolio management plan
19. Recently, the CEO in your company retired, and the Board of Directors
appointed a new management team. Because of competition from overseas
companies, also specializing in farm equipment such as tractors and crawl-
ers, the new management’s challenge is to be less risk adverse than in the
past and to focus on new markets and opportunities. You are remaining
as the portfolio manager, and the new management team is the Portfolio
Review Board. As they meet to focus on these new components, you know
they will be interested in:
a. Competitor intelligence
b. Measures to maximize portfolio value
c. The current portfolio categories
d. The method used to rate and score proposals
20. Working to manage the portfolio value, you plan to provide a list in prior-
ity order of those components you feel should be considered. You have
decided to use benet realization analysis as one method to do so as in
your pharmaceutical company some products may never be commercialized.
Fortunately, you have a denition of value that is aligned with strategy. You
may want to estimate potential portfolio outcomes with respect to success
criteria. You will express your results by:
a. Gaps and overlaps to be addressed
b. A cumulative distribution
c. Earned value
d. ROI and NPV
Portfolio Performance Management ◾ 61
Answer Sheet
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