Question 1

A firm is BEST served if its project portfolio:

Accepted Answer

Having a number of low-cost experimental prototypes allows a firm to explore various ideas and innovations with minimal risk, enabling it to adapt and pivot based on market feedback and trends.

Question 2

The ________ step in the process phase for project selection involves ensuring that projects fit in the company's broader strategic goals.

Accepted Answer

The prescreening step in the process phase for project selection involves ensuring that projects fit in the company's broader strategic goals. This step helps to eliminate ideas that do not align with the company's overall strategy before moving forward with individual project analysis and portfolio selection. Screening typically occurs after prescreening and involves evaluating the feasibility and potential of each individual project. Portfolio selection is the final step in the process phase and involves determining which combination of projects will create the best overall portfolio for the company.

Question 3

Which of these is NOT a factor in successful project portfolio management?

Accepted Answer

The answer of Which of these is NOT a factor...

Question 4

A principal cause of portfolio underperformance is:

Accepted Answer

The answer of A principal cause of portfolio underperformance is:
...

Question 5

Multiple project environments thrive on:

Accepted Answer

Multiple project environments require the ability to adapt quickly to changing circumstances, new information, and shifting priorities. This kind of flexibility can only be achieved through improvisation by project teams. Rigid development processes, narrow communication channels, and multi-layered bureaucracy all hinder the ability to improvise and adapt.

Question 6

To see if a potential new project fits within the whole,an organization may consider interactions among various portfolio projects,such as interdependencies,competing resources,and timing.These activities best fit within the ________ step of the process phase of the portfolio selection process.

Accepted Answer

The portfolio selection step involves evaluating potential new projects in the context of the overall portfolio to ensure they align with the organization's goals and priorities. This includes considering interactions among current and potential projects, such as interdependencies, competing resources, and timing. Therefore, the activities described in the question fit within the portfolio selection step.

Question 7

What criteria might be employed to prioritize projects in a project portfolio? Choose any example project from recent business news and deduce which criteria were most important to the company in question.

Accepted Answer

The answer of What criteria might be employed to prioritize...

Question 8

A balanced project portfolio may be interpreted to mean that a single portfolio contains both high and low risk,low growth and high growth,and risky and safe projects.

Accepted Answer

The answer of A balanced project portfolio may be interpreted...

Question 9

In the project portfolio selection process,the preprocess phase is likely to involve:

Accepted Answer

The preprocess phase involves setting up the methodologies and strategic principles that will guide the evaluation of projects, ensuring alignment with organizational goals.

Question 10

The pre-process phase of the portfolio selection consists of activities related to project development,project evaluation,and portfolio completion.

Accepted Answer

The pre-process phase of portfolio selection typically involves activities such as identifying potential projects, gathering relevant data, and setting criteria for evaluation, but not portfolio completion. Portfolio completion is part of the later stages.

Question 11

What is project portfolio management and what are its objectives and initiatives?

Accepted Answer

The answer of What is project portfolio management and what...

Question 12

If strategy and portfolio are not in sync,the firm is poised on the cusp of success.

Accepted Answer

If strategy and portfolio are not in sync, it can cause confusion and hinder the success of the firm. Therefore, the statement is false.

Question 13

Successful firms use project portfolio planning routinely to:

Accepted Answer

Project portfolio planning allows firms to plan ahead and develop products with long lead times. This helps them stay competitive and make strategic decisions based on their resources and capabilities. Choosing products randomly (option A) or moving too quickly (option C) can lead to wasted resources and a lack of focus. Moving at a glacial pace (option D) may lead to missed opportunities and lost market share.

Question 14

Because projects managed under a project portfolio management scheme may be independent of each other,it is not necessary to consider resource use when deciding to pursue any single project.

Accepted Answer

This statement is false. Resource use should always be considered when deciding to pursue a project, even when managing under a project portfolio management scheme. The availability of resources and their allocation across projects is an important factor to consider when prioritizing and selecting projects to pursue.

Question 15

The ________ phase of the portfolio selection process involves steps such as prescreening,individual project analysis,and portfolio adjustment.

Accepted Answer

The portfolio selection process typically involves three phases: pre-process, process, and post-process. The process phase includes steps such as prescreening, individual project analysis, and portfolio adjustment, making option B the correct answer. The pre-process phase involves setting goals and criteria for the portfolio, while the post-process phase involves monitoring and evaluating the portfolio's performance. Implementation is a separate stage that comes after the portfolio selection is complete.

Question 16

Once individual analysis is performed on project opportunities,they are assessed against objective company criteria and are determined to either be non-viable or remain as legitimate investment opportunities.

Accepted Answer

This statement correctly describes the process of assessing project opportunities against objective company criteria to determine their viability as investment opportunities.

Question 17

Choose any example from recent news media and explain why their project failed.

Accepted Answer

The answer of Choose any example from recent news media...

Question 18

Successful project management firms rely on home runs and narrowly concentrated efforts since specialization creates name recognition and market share.

Accepted Answer

Successful project management firms often rely on a diversified portfolio and adaptability rather than just narrowly concentrated efforts or "home runs" to mitigate risks and ensure steady growth.

Question 19

Project portfolio management is typically NOT used to balance:

Accepted Answer

The answer of Project portfolio management is typically NOT used...

Question 20

Personnel costs comprise one of the highest sources of project expense.

Accepted Answer

Personnel costs, including salaries, benefits, and other forms of compensation, can often account for a significant portion of a project's budget. This is particularly true for projects that involve a large team of professionals working for an extended period of time. Therefore, it is important for project managers to carefully manage these expenses in order to stay within budget and ensure the project's success.

Quiz 3: Project Selection and Portfolio Management