Why is this a Portfolio and not Program?

Submitted by Wearld on Thu, 09/26/2013 - 20:43

At the Annual General Meeting, the CEO of a large organization mentions that last year they spent $425 million on new projects. What is she talking about?

A. That the organization is a projectized organization.

B. That the organization is running a single huge program.

C. That the organization must pay more attention to ROI.

D. The organization's portfolio of projects.

Forums: 
PMP / CAPM exam Question bank
  • Log in to post comments
  • 791 reads
jagadeesh2k3's picture

jagadeesh2k3

Fri, 09/27/2013 - 06:18

Portfolios also contain Projects and in the question its not mentioned that projects are of similar type ( to consider them under one program).

 

- These are just my thoughts and yeah, I just started prepering for my PMP. would feel more happy if some one owuld correct my though process.:) 

Focused2013

Fri, 09/27/2013 - 18:45

 Many of the questions you have to simply use logic when there is any doubt to determine the correct or most logical answer. 

 

A- There is not enough information to say that this company is projectized, even companies set up as weak matrix and functional can spend $425 on projects

 

B- The fact that they speak to multiple projects in general and not geared toward one singular focus or to achieve a specific goal eliminates this choice. It's simply a general statement on what they spent on projects. 

 

C- it was not expressed they were disappointed in any way about their return on spending $425 mil on projects. 

 

D- Even if it wasn't clear to you it comes down to the best choice, D is the best choice.  Annual meetings are meant to rally the troops in support of what the company has achieved and the direction they are headed. Stating simply that the company spent $425 mil on projects speaks to choice D. 

Wearld

Sun, 09/29/2013 - 05:40

These comments are definately helpful.

I was confused because both program and portfolio can have project under them.

The annual gathering is a small hint. Re-reading Portfolio in pmbok and it mentions the word organization but Program does not. Thanks!