Portfolio Performance Management ◾ 63
Answer Key
1. c. Include them as part of the portfolio management information system
The portfolio management information system contains tools and tech-
niques to gather, integrate, and disseminate outputs of portfolio pro-
cesses. Among other items that can be part of this system are tools
and techniques involving documents—as a repository and as a version
control system.
Portfolio Management Standard, pp.25–26
Task 10 in the ECO in Performance
2. d. Prepare a histogram
Resource schedules a part of capability and capacity analsyis. They are
histograms that combine and detail forecasts and ongoing resource sup-
ply and demand..
Portfolio Management Standard, p. 90
Task 8 in the ECO in Performance
3. d. Show soft versus hard booking
Soft booking indicates resources are authorized to components based
on the date another component is expected to end, while hard booking
indicates they are committed to the component once it is authorized to
be part of the portfolio. It helps maximize resource use.
Portfolio Management Standard, p. 93
Task 7 in the ECO in Performance
4. d. Risk prole
Risk proles of the decision makers, such as in the Portfolio Oversight
Group, can change. Metrics can be set up to monitor risk proles based
on those at the component level.
Portfolio Management Standard, p. 89
Task 6 in the ECO in Performance
64 ◾ PfMP® Exam Practice Tests and Study Guide
5. a. You have grouped the components in the portfolio so they can be man-
aged more effectively
The various components of the portfolio have common features.
One of them is to permit the organization to group them for effective
management.
Portfolio Management Standard, pp. 4–5
Task 6 in the ECO in Performance
6. a. Training guides in portfolio management would be helpful
This situation is an example of a lesson learned, an output of the Manage
Portfolio Value process, as it shows some in the organization lack a
detailed understanding of the overall portfolio management process.
Portfolio Management Standard, p. 104
Task 10 in the ECO in Performance
7. c. Program B
Using NPV as a way to recommend components for optimization, a
dollar one year from today is worth less than a dollar today. The more
the future is discounted, or the higher discount rate, the less the NPV of
the component. If the NPV is high, the component then is ranked high,
leading to Program B.
Milosevic, pp.42–44
Portfolio Management Standard, pp. 74, 102
Task 7 in the ECO in Performance
8. c. New pain points
As the portfolio undergoes strategic changes, areas of interest to key
stakeholders also may change in the process. Therefore, one purpose is
to see if there are any new pain points that require attention.
Portfolio Management Standard, p. 54
Task 5 in the ECO in Performance
Portfolio Performance Management ◾ 65
9. d. To see if resource adjustments are warranted
Trend analysis is useful as a tool and technique in the Manage Supply
and Demand process. It can show if resource requirements consistently
have been underestimated or if resources are consistently over or
under performing.
Portfolio Management Standard, p. 95
Task 7 in the ECO in Performance
10. c. Comparative advantage analysis
Comparative advantage analysis is an example of a value scoring and
measurement analysis technique used in the Manage Portfolio Value
process. It has value as competing efforts may reside internal or exter-
nal to the portfolio. It may also include a “what-if” analysis.
Portfolio Management Standard, p. 102
Task 7 in the ECO in Performance
11. c. Financial analysis
A number of different capacity and capability analyses can be done,
one of which involves nancial resources to ensure funding is available
for components to be selected.
Portfolio Management Standard, pp. 74, 102
Task 7 in the ECO in Performance
12. c. Constraint management
Constraint management is an approach in which the focus is on iden-
tifying the root causes that deter companies from making investments
of nancial resources, time, and effort. It provides an approach to ease
constraints and encourage the organization from making decisions to
stimulate growth.
Portfolio Management Standard, p. 15
Task 6 in the ECO in Performance
13. c. Use nite capacity planning and reporting
This approach is useful since it indicates any resource bottlenecks and
over and under resource allocations.
Portfolio Management Standard, p. 90
Task 7 in the ECO in Performance
66 ◾ PfMP® Exam Practice Tests and Study Guide
14. a. Cost/ benet dependencies for the entire group
Optimization decisions must consider dependencies including those that
involve cost and benet dependencies for the entire portfolio. A variety
of analyses are recommended before these decisions are made.
Portfolio Management Standard, p. 102
Task 6 in the ECO in Performance
15. c. The level of management commitment is uneven
This scenario shows that portfolio management lacks the needed depth
and breadth of commitment to portfolio management by the board of
directors, executives, and senior executives.
Portfolio Management Standard, p. 23
Task 1 in the ECO in Performance
16. a. Make resource sourcing decisions
While a number of activities are done in the portfolio management pro-
cess, a major one is to source key resources, nance, assets, and human
resources, for optimal returns.
Portfolio Management Standard, p. 85
Task 7 in the ECO in Performance
17. a. A gap is typical between the ‘as is’ state and the ‘to be’ state
When strategy changes, any gap should be analyzed to determine
whether realignment in resources or adjustment in the components in
the portfolio are required.
Portfolio Management Standard, p. 88
Task 8 in the ECO in Performance
18. c. Portfolio management plan
Among other things, the portfolio management plan provides a frame-
work for strategic change.
19. b. Measures to maximize portfolio value
Measures are needed to ensure optimal resource performance and
maximum portfolio value. They should be relevant to overall strategy
and objectives.
Portfolio Management Standard, p. 89
Task 9 in the ECO in Performance
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.