3.5 Describe Situations Where The Use Of Portfolio Management May Be Appropriate

Question 1

Where does a portfolio balance resource usage and the benefits ?

Answer 1

A portfolio balances resources usages across the project , programs and BAU to optimise benefits

Question 2

What could usage restrictions be due to and what would a portfolio do ?

Answer 2

Resource restrictions could be due investment , skill or capacity limitation and a portfolio will balance any or all of these

Question 3

What can portfolio management help prioritise and based on what in relation resource

Answer 3

Portfolio management can help prioritise which portfolio or programme to invest in based on their strategic value

Question 4

What can a organisation do if they have a strategy to focus on a new market and what is the affect ?

Answer 4

If an organisation has a strategy to move to a new market then by setting up a separate portfolio is it shielding the rest of the organisation from this work allowing them to continue as normal

Question 5

What would an organisation choose to do within a new portfolio why and how ?

Answer 5

Within this portfolio the organisation will choose to allocate a number of resources including people and funding to pursue this goal

This goal can be achieved by setting up several project and programmes for example marketing , research and product development

Question 6

What does portfolio management serves as ?

Answer 6

Where pro folio management serves as a strategic tool guiding an organisation through the complexities of moving into a new market by aligning projects with overarching goals and optimising resource use

Question 7

How does portfolio management structure an organisations investment and the results and how ?

Answer 7

By placing the different investment and initiatives into portfolio the organisation will optimise strategic benefits or operational efficiency which can be manage and measured within the portfolio and the projects and programmes adjusted accordingly

Question 8

What does adjusting the projects and programmes accordingly mean

Answer 8

This could mean closing and adjusting the project as required where portfolio management priorities the project and programmes based on their
Strategic of goals helping the organisation focus on high impact initiatives

Question 9

When will the use of portfolio management be appropriate

Answer 9

Limited resources
Moving into a new market
Structure the organisations investments