Assume you are co-owner of a small consulting firm. Previously, you worked as a managing partner in one of the larger consulting firms in your country that had a defined portfolio management process to determine key opportunities to pursue to focus not solely on proposal win ratio but to aggressively emphasize capture ratio. Now in your new company in terms of portfolio management, the best practice to follow is to:

1. A. Work with your business partner in terms of portfolio management
2. B. Have your Board of Directors serve as a Portfolio Review Board
3. C. Involve your business partner plus the firm's subject matter experts in portfolio decisions
4. D. Set up an independent group of advisors to meet quarterly as a Portfolio Review Board

Correct Answer: A

Communication is one of the largest activities that the portfolio manager does along the portfolio lifecycle. As an experienced portfolio manager, you know that communication and information needs vary between portfolios, programs and projects. How do you define the difference in those three levels of Project Management?

1. A. Communications at a Program level are more diversified than at project and portfolio levels Communications at a Portfolio level are more diversified than at project and program levels
2. B. Communications at a Project level are more diversified than at portfolio and program levels
3. C. Criticality of the communication with relation to the organization is highest at a project level as the business value is acquired at this level

Correct Answer: B

With the increasing use of drywall, your company, which has been in the plaster business for over three generations, is finding it harder to maintain a share of the market and to achieve a positive return on its investments. Three years ago, the corporate executives implemented a portfolio process, and they serve as the Portfolio Governance Council. They meet monthly, and after each meeting, you prepare a report of their decisions. This report is:

1. A. Sent to all employees in the company as it focuses on employee empowerment and involvement
2. B. Distributed only to the Governance Council to serve as a record of their meetings
3. C. Is used to authorize the portfolio
4. D. Is used to analyze the effects of their decisions on the company's portfolio

Correct Answer: C

As part of the strategic alignment, you Rank strategic priorities working with key stakeholders and using qualitative and quantitative analyses in order to

1. A. Understand the strategic priorities
2. B. Create a basis for decision making
3. C. Create portfolio scenarios
4. D. Provide a guiding framework to operationalize the organizational strategic goals and objectives

Correct Answer: D

Assume you are new to your organization and you were hired specifically to help implement portfolio management in your new manufacturing company. Having worked in portfolio management for the past five years, you know it is a major culture change. It is definitely a challenge at your new company because:

1. A. The organization basically has many operational activities, and only a few projects are under way
2. B. The organization lacks a defined strategy
3. C. The few projects that are under way are not interdependent
4. D. Operational activities have continued without any major changes for years

Correct Answer: B