Understand the Key Aspects of the Relationships Between the Portfolio and Other Corporate Functions and Activities with a Role in Delivering Strategic Objectives MOP-PRACTITIONER Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A government agency has a portfolio of 20 projects. A new minister has announced a policy change that makes two existing projects obsolete and creates a need for a new urgent initiative. The agency's portfolio office has been asked to respond. What should the portfolio office do?

   • AAssess the impact of the policy change on the portfolio, recommend the removal of the obsolete projects, and propose the new initiative for inclusion.
   • BContinue the two obsolete projects until the end of the financial year to avoid wasting the budget already spent.
   • CAsk the project managers of the obsolete projects to justify their continued existence to the board.
   • DAdd the new initiative to the portfolio without removing the obsolete projects, and request additional funding.
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2. 22application · medium

   A technology company's strategic plan calls for 'becoming the market leader in cloud services within three years'. The portfolio office has been asked to translate this strategy into a prioritized portfolio. The company has limited engineering capacity and a strong existing BAU support obligation. What should the portfolio office do?

   • AFocus the portfolio entirely on new cloud initiatives and defer all BAU support work to free up capacity.
   • BSelect the three most ambitious cloud initiatives and fund them fully, as the strategy requires market leadership.
   • CAsk each business unit to submit their preferred cloud initiatives and fund them all equally.
   • DIdentify candidate initiatives that contribute to the strategic goal, assess them against strategic fit and available capacity, and recommend a prioritized portfolio to the board.
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4. 23foundation · easy

   What is the primary role of portfolio management in coordinating with performance management?

   • ATo monitor, measure, and report on the portfolio's contribution to strategic objectives
   • BTo conduct annual performance reviews for all employees
   • CTo set individual performance targets for project managers
   • DTo calculate the financial value of every project in the portfolio
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5. 24application · medium

   A logistics company's portfolio includes a mix of cost-saving and revenue-growth initiatives. The board has asked for a quarterly report showing how the portfolio as a whole is contributing to the strategic objective of 'increasing operating margin by 5%'. The current reporting shows project-level status (on time, on budget) but does not aggregate benefits. What should the portfolio office do?

   • AWait until the projects complete before reporting benefits, as interim benefits are unreliable.
   • BAsk each project manager to include a benefits section in their existing project status reports.
   • CDevelop a portfolio-level benefits framework that aggregates forecast and actual benefits from components and reports progress against the margin target.
   • DReport the number of projects that are on time and on budget as a proxy for portfolio success.
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6. 25application · medium

   A manufacturing company's five-year strategic plan was approved 18 months ago. Since then, a major competitor has entered the market with a lower-cost product, and the board has approved a revised strategy that emphasizes cost reduction over market expansion. The portfolio currently contains several large market-expansion projects approved under the old strategy. What should the portfolio office do to maintain alignment with the revised strategy?

   • AContinue with the approved portfolio until the next scheduled annual review to avoid disrupting ongoing delivery.
   • BAsk the strategic planning team to revise the five-year plan to match the existing portfolio so they stay aligned.
   • CConduct a portfolio review to re-evaluate all existing components against the revised strategic criteria and recommend changes to the board.
   • DImmediately cancel all market-expansion projects and replace them with cost-reduction initiatives.
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