Portfolio Management in a Large Enterprise
Question
Portfolio management in a large enterprise BEST enables which of the following?
Answers
Explanations
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A. B. C. D.B.
Portfolio management is a systematic approach to managing an organization's projects, programs, and other activities that comprise the organization's overall portfolio. It enables large enterprises to make strategic decisions regarding which projects and programs to prioritize, fund, and execute.
Out of the options provided, the BEST enablement that portfolio management provides is value creation (option C).
Value creation refers to the process of generating value for an organization's stakeholders, which includes customers, employees, shareholders, and society. Portfolio management enables large enterprises to create value by:
Aligning projects and programs with the organization's overall strategy: By evaluating and selecting the right mix of projects and programs that align with the organization's goals, portfolio management ensures that resources are allocated effectively and efficiently.
Prioritizing projects and programs based on their potential value: By assessing the potential return on investment (ROI) of each project or program, portfolio management enables large enterprises to prioritize those that have the highest potential value.
Optimizing resource allocation: Portfolio management helps organizations optimize their use of resources, including financial, human, and technical resources, by aligning them with the most critical projects and programs.
Ensuring accountability and transparency: By establishing clear metrics and performance indicators, portfolio management ensures that stakeholders can assess the value created by the organization's portfolio of projects and programs.
While portfolio management can indirectly support performance management (option A), risk reduction (option B), and human resource optimization (option D), these are not the BEST enablement provided by portfolio management in a large enterprise. Performance management, risk reduction, and human resource optimization are important benefits of portfolio management, but they are secondary to value creation.
