Task 1 PFMP Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A portfolio manager discovers that a project to implement a new customer relationship management (CRM) system is consuming significant resources but is not directly linked to any strategic objective. The organization's strategy focuses on 'product innovation and market differentiation.' What is the most appropriate recommendation?

   • ARepurpose the CRM project to support a strategic objective, such as enabling faster product launches through better customer insights.
   • BTerminate the project immediately to free resources for other initiatives.
   • CContinue the project because it may indirectly support customer satisfaction.
   • DRequest additional funding to accelerate the CRM implementation.
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   A portfolio manager is explaining to a stakeholder why a project that is not aligned with the organization's strategy should be removed from the portfolio. The stakeholder argues that the project is profitable and should be kept. Which response best explains the importance of strategic alignment?

   • AThe project should be kept if it is profitable, but its resources should be reduced.
   • BA profitable project may still consume resources that could be used for more strategic initiatives, reducing overall portfolio value.
   • CThe project should be removed because it does not align with the strategy, regardless of profitability.
   • DThe project should be kept because profitability is a sign of strategic value.
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   Why is strategic alignment considered important in portfolio management?

   • AIt helps the organization focus resources on initiatives that support its strategic direction
   • BIt eliminates the need for project-level risk management
   • CIt ensures that all stakeholders have equal influence
   • DIt guarantees that all projects will be profitable
   Reveal Solution Discussion Select an answer first
5. 24expert · hard

   A portfolio manager finds that a project to develop a new product is aligned with the strategy, but it is consuming resources that are needed for a compliance project that is required by law. The organization's strategy emphasizes 'innovation and regulatory compliance.' What is the most appropriate recommendation?

   • ATerminate the product development project to free resources for the compliance project.
   • BSeek additional resources or adjust the product development project's timeline to accommodate both projects.
   • CContinue the product development project and delay the compliance project until resources are available.
   • DPrioritize the compliance project and reduce the product development project's resources.
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   Which of the following is an example of a recommendation to correct a misaligned portfolio component?

   • AExtending the project timeline
   • BIncreasing the project's budget without changing its scope
   • CAssigning a new sponsor to the project
   • DTerminating a project that no longer supports a strategic objective
   Reveal Solution Discussion Select an answer first