Free PFMP Exam Dumps Preview

You have just recommended the Portfolio Strategic Plan and Portfolio to the governance board for approval. The portfolio board members informed you that they did not find what they were looking for in the strategic plan and that it needs to be reworked.

What should have been part of your Strategic Plan?

You are managing a large portfolio and know that you will need to constantly show the progress and status of the portfolio in meeting. For this you have developed a robust roadmap using BI tools.

When it comes to Portfolio dependencies, which of the following is true regarding the roadmap?

Assume you are the portfolio manager for a leading drug store in your country that offers numerous products. In the past four years, nearly every store has had to enlarge its pharmacy unit and hire additional staff members with the aging population. Observing this change, two years ago, stores set up clinics to provide customers with immediate care. As you see the growth in the stores in the health arena, you are looking at trends and realize:

Updates to schedules i.e. resource, funding, benefits, are results of Developing the Portfolio Performance Management Plan process.

Where should these updates be recorded?

You have been assigned as the manager for a major transformation portfolio in your company. You are acquiring the position due to the failure of the previous manager and the strategic importance of the portfolio. You start by consulting the portfolio strategic plan.

What do you expect finding in that plan?

You have scored the portfolio components and are analyzing the data in order to prioritize the components.
Using the following scoring table, which of the options represents the correct Components Priority?

Taking into consideration that the costs for each component is Component

1. A: 10 K USD, Component
2. B: 15 K USD, Component
3. C: 16 K USD, Component
4. D: 13 K USD and Component
5. E: 11 K USD;

The budget for this portfolio is a fixed one of 40 k USD

You are managing a portfolio for your company and are trying to balance the tasks that will be done internally based on the availability and the ones that will be outsourced. Managing supply and demand is a recurring activity in the portfolio life cycle and results in changes in resource utilization and resource efficiency.

Which of the following are considered inputs to the Manage Supply and Demand process?

One of your company's junior portfolio managers came to you for advice. He noticed while checking the roadmap that it does not include all the portfolio components.

What should be your advice to him?

Developing the Portfolio Management Plan is a major step in a Portfolio and for a Portfolio Manager. You are currently developing this plan and having focus groups and brainstorming activities during which you are using mind-maps diagrams to organize the idea into logical groupings.

Which of the below are you using?

Chartering a portfolio is a major step in getting the needed authorizations to execute the portfolio. Your are currently developing the charter and considering the following inputs

As the portfolio manager in the third largest automotive manufacturer in your country, you have a large number of components especially new vehicles each year but also support for dealers, advertising, maintaining the brand image, increasing market share plus continuous improvement initiatives. You have contingency reserve to use to prepare to handle any risks that may occur, which is based on:

While defining the portfolio mix, the portfolio manager performs a categorization of the portfolio components based on multiple categorization criteria.

Which of the following is considered as a portfolio component category?

Each time the Portfolio Governance Group meets the goal is to review the existing components and any that are proposed to ensure the portfolio has the best mix to attain strategic objectives. As the portfolio manager, you find these meetings, if facilitated accordingly, are effective decision-making sessions.
However, you tend to have open issues after every meeting. These open issues:

One of the ten underlying principles of portfolio management involves a strategic focus. Assume you are going to have a short meeting with your CEO tomorrow, and you want to succinctly describe it. You will tell the CEO it is important since it:

A new portfolio manager in your organization is currently preparing his portfolio charter and has come to you asking advice about what should be present in charter

Values assist in guiding actions, evaluations, and decisions. Assume your organization is considering entering into a consortium to produce a heliumcontrolled car. Once the helium is supplied, additional amounts will not be needed. The car is to be personally appealing with a focus on an inexpensive cost to increase marketability. The consortium will enable each firm to capitalize on the expertise of the other firms in it, but the customer will view it as a separate entity. If your organization enters into the consortium, it must justify the value to the portfolio of doing so. In addition to ensure benefits are realized a focus is needed on:

You are the portfolio manager for a large county that comprises much of a major city in your country. The city also has a portfolio manager, and often you meet to discuss proposed initiatives to see if there are any dependencies. In your county, you established an approach to evaluate portfolio components to make judgments regarding their alignment and priority. In doing so, which of the following was especially helpful:

Your online ordering company wants to add a component to its portfolio that its sponsor believes will outdistance the competition, but it has risks and also will be subject to regulatory approval. The purpose is to use parachutes to deliver the merchandise ordered through small helicopters so the recipients receive their orders within three hours of the on line purchase. As the portfolio manager you recognize this component is a major change and will require resources if it is approved. You are now performing change management using a change structure that:

As part of the periodical strategic management cycle, the portfolio management team is revising the portfolio and re-doing the strategic management part. Currently, they are assuming and evaluating different combinations of components in order to come up with multiple approaches and take a decision on the portfolio structure.

What is currently being performed?

You are managing a portfolio for your company and are trying to balance the tasks that will be done internally based on the availability and the ones that will be outsourced. Managing supply and demand is a recurring activity in the portfolio life cycle and results in changes in resource utilization and resource efficiency.

What is the expected outcome from managing supply and demand?

Assume you work in a weak matrix structure in your pharmaceutical company in which most of the program and project managers are coordinators, and most of the staff that supports them are in functional organizations. On some high priority programs, staff may be dedicated to the program full time for a short
time period; however, operational work often takes precedence especially in manufacturing. The demand
for some of the pharmaceutical products often outpaces the available supply, and shelf life is short. These fluctuations of resources then:

Your CEO is keen to know the expected value of multiple components that interest him and wants you to give him a comparison of the expected value across components. You are currently looking for a tool to facilitate comparison of expected value across components and support informed portfolio decision making.

What are you looking for?

Due to market technological changes, your company got impacted and was urged to revise its portfolios.
You are currently revising your portfolio to determine the required changes in the component mix.

Which of the following options helps in assessing the capability of the organization to undertake the portfolio with its new strategic direction, and what is needed to be done?

Your IT company has been successful as it is able to deliver projects on time without the need for rework and within the allocated budget. Your customers have been astonished with the results and are using your company for additional work, plus they have been recommending your company to others. Your company is experiencing tremendous growth and wants to ensure it can take on the new work with existing resources, both people and systems, or whether it will need to use outsourcing. Given its outstanding reputation, your executives wish to avoid the need to outsource. You have been asked to perform a capacity analysis. A best practice is to:

You are in the toughest phase of the portfolio life cycle due to the governmental issues in your country.
Yesterday night, one of the key team members quit and left the country. You have included this in the portfolio risk register while planning the portfolio because you knew that this could happen and that this key resource has family in Canada and can leave if the situation gets bad. Following this, you activated the response plan, which is to initiate a new component that will cater for reaching the deliverable in another way. However, an immediate approval is needed for initiation of this component or the end-of-month major deliverable will be delayed.
To whom you should present the proposal for urgent approval?

Portfolio managers tend to use the efficient frontier analysis as a modeling approach that gives decision makers the analytical tool to optimize portfolios given resource constraints such as risk.
Consider that your company is risk-averse, on which side of the efficient frontier curve should the undertaken portfolios lie?

When developing the charter, you will use multiple inputs and documents of which the portfolio Strategic Plan is one.

How is the strategic plan used in this case?

Aligning the portfolio with the strategic objectives starts by developing the Portfolio Strategic Plan. You are currently developing this plan and are looking for a document that provides you long-term direction.

What are you looking for in this case?

When it comes to managing the portfolio value, one of the junior portfolio managers came to you asking about the relation between cost-benefit analysis and the efficient frontier analysis.

What should your answer to her be?

Your company is currently on the verge of bankruptcy due to the lack of transparency within the
organization; this alerted the CEO to take decisive actions and request that new reporting lines be established in order to be fully transparent. Following this, the portfolio structure has changed to cope with the new reporting lines.

Where is this change reflected when it comes to portfolio documents?

After a strategic change is managed and finalized, you as a portfolio manager, are expected to document changes to the portfolio components attributes.

Which of the following is the document in which you document these changes?

While the Governance Board has a variety of significant roles in portfolio management, especially in terms of the recommendations it makes, c they involve:

In a portfolio, data is an abundant asset, and managing the information aiming for a better decision making is critical.

Which of the following are considered outputs to the Manage Portfolio Information process?

Some of your Stakeholders reported to you that they are not receiving status reports and other regular information on the Portfolio progress. This has caused a big issue with the governance board and they requested an immediate resolution.
You have already analyzed the stakeholders and prepared the communication matrix; what is your best course of action in this case?

When it comes to managing a portfolio, you have a variety of assets, plans and tools and techniques used.
It requires a good experience to handle all of these artifacts. One of your portfolio team members came to you asking about the relation between the portfolio performance management plan, the portfolio management plan and portfolio strategic plan.

What should your answer be?

As part of the annual planning, PMO has started to group initiatives managed under each portfolio in the organization. The collected list will be used in developing the new Portfolio Strategic Plan.

What is this collected list called?

You are the manager for a governmental portfolio aiming to restructure the roads in your country. Having a tight schedule, a large number of stakeholders including the public, in addition to a strict budgeting framework, you know that you will be managing the performance closely and that the governance board and the stakeholders would want to check on the progress and performance frequently. For this you have developed a robust performance management plan.

What is expected to be found in this plan?

Portfolio Governance is important in a portfolio to maintain correct alignment, monitor and control performance and status, reshuffle the mix of components as found necessary, etc.
Governance management includes which of the following processes?

As part of the new strategic direction, the executive management has decided to create a portfolio for the development of a new product. You have been assigned as the portfolio manager.

What should you do as a first step?

Assume your pork producing company finds that there is an over-abundance of pork products and competitors in the marketplace even though it has had to implement Hazard Analysis and Critical Control Point (HACCP) processes that are a regulatory requirement. Profits are lower than ever before in the history of the company. Management is changing the company's strategy to also focus on seafood products. You have been asked to complete a gap analysis to:

You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. A major risk has recently occurred and the risk owner came to you asking advise on how to report it.
what would you advise her?

Your portfolio management team is a bit confused about the order of steps to follow when defining a portfolio. They have been having debates and they came to you asking for the correct order of steps

Which of the following is NOT considered as a criteria for prioritization?

Your company changed its executives due to the lack of benefits realization and previous corruption issues. The new management has informed you that as of now, this will not change any process in the portfolio and everything will remain the same.
However, only the risk tolerance for the organization will be impacted, what will you do as a portfolio manager?

As you work to determine which of four possible components to optimize the portfolio, assume you are using the internal rate of return as the key crite rion to make your recommendation. Only one new component can be added based on financial constraints. Each of the four potential components has benefits that support the strategic plan. Based on the following data, you recommend:

Each portfolio risk should have a designated person as its owner. As the portfolio manager assigns the owner, the main responsibility is to:

comes to this type of organizations, which of the following statements is true?

One of the major steps for a portfolio manager is to know which components qualify to be included in the mix of components that will achieve the strategic objectives sought by the portfolio. As a program manager, you will use a variety of methods to help you achieve this purpose.

Which of the following are valid tools and techniques?

As a portfolio manager you will use a variety of artifacts and documents that will help you better manage the portfolio and better communicate progress and status with stakeholders. The roadmap is considered the most used document in the portfolio and eases your work being able to present the status on a single graphical representation. Early on during the portfolio lifecycle, you prepare the roadmap. An output of this process is

Risk is inherent in all activities and managing risk is critical to a successful portfolio. Risks perspectives differ within the organization between executive management, operations management, portfolio management and project/program management.

When it comes to Portfolio management, which of the following is a risk concern?

The portfolio management process ensures the components are aligned to goals.
However, it is driven by:

Your organization is considered a leader in knowledge management and has a Chief Knowledge Officer reporting to the CEO. It also implemented portfolio management eight years ago. As the organization focuses on continuous improvement and transformational leadership, it had an external consultant review its portfolio artifacts and do some benchmarking. One of the consultant's recommendations was to update the portfolio risk management plan since the company is embracing new and complex technology in much of its work. In updating this plan, it was useful to:

You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. While planning for risk management, multiple investment choice tools are used as part of the quantitative and qualitative analyzes.

Which of the following tools determine the effect of changing the portfolio?

For governments worldwide, you normally have a lot of people reluctant to change and to using new technology tools especially for communication. You are managing a governmental portfolio and planning for a transformational endeavor.
You are currently depicting the various communication media and methods to be used, where is this information normally used?

Your CEO is keen to know the likelihood of the portfolio to realize the expected ROI. You are currently looking for a tool to calculate the probability to achieve portfolio objectives.

Which of the following will help you in doing that?

Initiatives in the companies aim to deliver values. For a portfolio, the value is delivered through a mix of components with similar strategic goals and objectives. Multiple components can contribute in the realization of the same organizational value.
While managing the portfolio value, how do you depict the relationships between components in achieving value?

One of the stakeholders of one of your components came to you complaining that his manager is not receiving specific information on multiple components progress.

What is your best course of action?

Risk Management is integrated in all the other processes and process groups and is an integral recurrent activity throughout the portfolio life cycle. Which of the following is considered the most effective method for analyzing the effect of risks on portfolio strategic objectives, and determining whether they have high or low effect

Having worked in portfolio management for several years, assume you were hired as the portfolio manager for a Real Estate Investment Trust, one of the largest in your country that specializes in apartments. The company continues to grow and wants to maximize value and profits for its investors. As you set up processes and procedures for portfolio management, you know from past experience that buy in from executives is insufficient. As you prepare a communications strategy, you focus on:

When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net quantifiable benefit.

When it comes to business value, at which level of the organization is the Business Value achieved?

As you work to determine which stakeholders had the highest degree of influence over the portfolio, you wanted to especially know about the members of the Portfolio Governance Board because:

One key artifact to review as the portfolio communications management plan is prepared is the:

During the portfolio lifecycle, you will be using the roadmap a lot and you be using it to report progress to different stakeholders.

When it comes to portfolio roadmap, which of the following options is true?

Your probability and impact assessment work is complete, and you are using the results to prepare the portfolio risk management plan. As you do so, it also is useful to:

There was a change in your portfolio to speed up things resulting in the addition of new components.
In order to update the new vision, dependencies and timeline for the components, you should update which of the following?

One of your components within the portfolio has been struggling and has undertaken a lot of issues. A recent measurement has shown that its CPI is 0.4 and SPI is 0.3. What is the best course of action you should take as a portfolio manager

Information and direction about the organization's vision, mission, prioritization, and resources should be obtained before the portfolio's strategic plan is developed by reviewing:

Assume you are the portfolio manager for your training company. It decided to implement portfolio management in a major way to ensure it remained competitive in the changing market and could offer a variety of methods to deliver courses rather than only in a face-to-face setting. The company set up a Portfolio Management Group, and you are responsible for providing information on portfolio status and then providing information to those interested stakeholders about the Board's decisions. You want to make sure the reports meet stakeholder requirements. After performing a detailed communications requirements analysis, you found it interesting that stakeholders wanted information about:

You have just finished the development of the Portfolio Communication Management Plan. The portfolio team is looking for portfolio value assessment, status reports, and portfolio forecast with variance to plan.

Where should they find this information?

In your web app company, the portfolio is constantly changing. It is not unusual for a new proposal to be submitted each day and for other components to be terminated as a competitor was first to market. The Portfolio Review Board usually meets daily in this fast-paced environment as it:

Your company acquired another company. The sponsor asked you to check the other company's current inventory of work and see what could be added to your current portfolio. You have a meeting coming up to show the sponsor the portfolio dependencies.

Which document should you be showing him?

Your organization has a defined portfolio management process that it has followed for three years. As the portfolio manager, you keep your various plans up to date, and because of numerous regulatory changes involving the telecom industry, it is time to review and update the risk management plan. You have several key stakeholders working with you as you realize the importance of this plan in maintaining a competitive advantage. One way you and your team are assessing the various risks that may impact the structure of the portfolio is to use:

Following a recent portfolio health check, you noticed that your portfolio is not aligned with the strategic plan and actions should be taken to stop losing money.

What should be your next course of action?

Consider you are a veteran portfolio manager and that you are managing the most important portfolio in your company.

What are the processes you execute as part of the portfolio governance?

You have a portfolio component that is using earned value analysis. It is at the 15% point of completion, and it is evident that it cannot be completed as planned. Adding resources will not solve the problem, and at the last Portfolio Review Board meeting, the Board members decided to terminate this component based on its various risks. They then decided the resources allocated to this component could be transferred to other portfolio components enhancing their early completion and avoiding risks from competitors. As the portfolio manager, you: