Understand the Terms and Concepts Relating to the Portfolio Definition Cycle MOP-PRACTITIONER Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A telecom company has 45 confirmed change initiatives in its portfolio. The portfolio office needs to group them so that similar initiatives can be compared and prioritized together, and so that the board can see the shape of the portfolio at a glance. What should the portfolio office do in the categorize practice?

   • AProduce three point estimates for each initiative's cost and duration
   • BHold a decision conference to agree which initiatives to fund
   • CScore each initiative against the CEO's strategic drivers
   • DAssign each initiative to a category such as 'growth', 'efficiency', 'compliance', or 'renewal'
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   What is involved in the 'prioritize' practice of the portfolio definition cycle?

   • ARanking initiatives based on their contribution to strategic objectives
   • BAllocating resources to each initiative
   • CDefining the scope of each project
   • DCreating a detailed business case for each initiative
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4. 13application · medium

   An insurance firm has categorized its 30 initiatives into 'growth' and 'compliance'. The board wants a single ranked list of all 30, combining both categories, so it can see which initiatives are most important overall. The portfolio office has agreed criteria weights with the board. What should they do in the prioritize practice?

   • ARank the growth initiatives by cost and the compliance initiatives by risk, then merge the two lists
   • BApply multi-criteria analysis to score all 30 initiatives against the agreed weighted criteria and produce a single ranked list
   • CHold a decision conference to let the board vote on each initiative
   • DUse three point estimating to rank all initiatives by expected cost
   Reveal Solution Discussion Select an answer first
5. 14expert · hard

   A global NGO has a mission to 'reduce child mortality'. Its portfolio contains projects on nutrition, vaccination, clean water, and maternal health. However, field staff cannot explain how their projects contribute to the mission, and donors are questioning the link between funding and outcomes. The CEO wants every project to be traceable from the mission to the project objective. What is the most important first step?

   • AUse three point estimating to improve the accuracy of project cost forecasts
   • BRe-run the multi-criteria analysis to re-rank the projects by cost-effectiveness
   • CHold a decision conference to re-confirm the mission statement
   • DMap the mission down through strategic themes and objectives to each project using clear line of sight planning
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6. 15foundation · easy

   What is a key feature of three point estimating?

   • AIt uses optimistic, most likely, and pessimistic estimates to calculate an expected value
   • BIt relies on a single historical data point to forecast future costs
   • CIt uses only expert judgment without any quantitative analysis
   • DIt is used exclusively for schedule estimation, not cost estimation
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