PMP Practice Question: Business Environment: strategy and project benefits
You are managing a portfolio of three projects. Project A is on track and aligned with strategic goals. Project B is behind schedule but has high strategic value. Project C is on time but its strategic value has diminished due to market changes. The steering committee asks you to recommend which project to prioritize. What should you do?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Present the status and strategic alignment of each project to the committee and facilitate a decision
The project manager's role is to provide objective information to the steering committee, including the status and strategic alignment of each project, and then facilitate their decision-making. This aligns with the project manager's responsibility to present trade-offs and let the governance body prioritize. Option A is incorrect because unilaterally increasing resources for Project B bypasses the committee's authority. Option C is incorrect because it makes a biased recommendation without considering other factors. Option D is incorrect because it delays the decision and avoids the collaborative governance process.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Recommend increasing resources for Project B to get it back on track
Why it's wrong here
As a portfolio manager, the primary role is to provide a holistic view and analysis of the entire portfolio, not to unilaterally recommend specific operational solutions for individual projects. Increasing resources for one project without assessing the overall portfolio's strategic objectives, resource constraints, and interdependencies could negatively impact other projects or the portfolio's strategic alignment. Such a significant resource allocation decision requires a broader strategic discussion and approval from the portfolio governing body.
- ✓
Present the status and strategic alignment of each project to the committee and facilitate a decision
Why this is correct
The portfolio manager's core responsibility is to provide the governing committee with comprehensive, objective data regarding each project's performance, risks, and, crucially, its current alignment with strategic objectives. By presenting this information and facilitating the discussion, the portfolio manager enables the committee to make informed, strategic decisions that balance competing priorities and optimize the overall portfolio value. This approach ensures decisions are made at the appropriate governance level, leveraging collective strategic insight.
- ✗
Recommend stopping Project C and reallocating resources to Project B
Why it's wrong here
While portfolio managers analyze project performance and strategic fit, making a direct recommendation to stop a project and reallocate resources is a strategic decision reserved for the portfolio governing body. The portfolio manager's role is to present the facts, potential impacts, and various options, allowing the committee to weigh the strategic implications and make the ultimate decision regarding project termination or resource shifts across the portfolio. This maintains proper governance and accountability for strategic portfolio choices.
- ✗
Ask each project manager to submit a recovery plan and then decide
Why it's wrong here
Requesting individual recovery plans from project managers is an operational step that typically occurs *after* a strategic decision has been made at the portfolio level regarding which projects to prioritize or adjust. Before diving into project-level recovery, the portfolio manager must first present the holistic portfolio status and strategic alignment to the governing committee. This ensures that any subsequent recovery efforts are aligned with the overall strategic direction and resource allocation determined by the portfolio's governing body.
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