000 Students Orientation-PRINCE2

MoP® Foundation – Students Orientation i
ATHEM
The MoP® Foundation – Students Orientation

A common sense and practical approach to understanding MoP®
Version 2.0
By Ernani Marques, MoP® Practitioner
ATHEM
Foundation Level
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MoP® is a Registered Trademark AXELOS Limited
With the exception of brief passages and quotes for reviewing or commenting purposes, no part
of this publication may be reproduced or transmitted in any form or by any means without prior
consent of the author.
Of course, we will consider any suggestions that you may have.
MoP® is a Registered Trademark of AXELOS Limited
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ATHEM.net.br ATHEM MoP® AXELOS

MoP® Foundation – Students Orientation ii
Table of Contents
Distribution Copyright .............................................................................................................................1
1 Introduction......................................................................................................................................1
2 Welcome .........................................................................................................................................1
3 Course Objectives ...........................................................................................................................1
4 Foundation Qualification ..................................................................................................................1
5 Target Audience ..............................................................................................................................1
6 Instructions For Use ........................................................................................................................2
7 Planned Lessons Plan and Planned Agenda ..................................................................................2
8 Measuring the learning ....................................................................................................................4
9 MoP® Sillabus .................................................................................................................................4
10 Last information ...........................................................................................................................4
11 Appendix A - Syllabus ................................................................................................................ A
12 Appendix B – Sample Questions 1 and Rational ........................................................................ B
13 Appendix C – Sample Questions 2 and Rational ........................................................................ C
14 Appendix D – Practitioner - Sample Questions 1 and Rational .................................................. D
15 Appendix E – Practitioner - Sample Questions 1 and Rational ................................................... E
ATHEM.net.br ATHEM MoP® AXELOS V02

MoP® Foundation – Trainer Orientation 1
1 Introduction
The objective of this guide is to give you instructions related your training.
2 Welcome
Welcome to ATHEM and MoP® Foundation Training. We will consider any suggestions
that you may have.
3 Course Objectives
Prepare the students to help in the MoP Foundation Exam and help them to
understand the principles, cycles, practices, techniques, roles, responsibilities,
documents and organizational context within which portfolio management operates.
Specifically:
• Scope and objectives of portfolio management and how it differs from programme and
project management
• benefits from applying portfolio management
• context within which it operates
• principles upon which successful portfolio management is based.
• approaches to implementation, the factors to consider in mantaining progress, and
how to assess the success of portfolio management
• purposes of the portfolio management definition and delivery cycles and their
component practices, and relevant techniques applicable to each practice • purpose
and key content of the major portfolio documents
• scope of key portfolio management roles.
4 Foundation Qualification
Purpose of the foundation qualification

The purpose of the Foundation qualification is to confirm that a candidate has
sufficient knowledge and understanding to work as an informed member of a Portfolio
Office or in a range of portfolio management roles. The Foundation qualification is
also a pre-requisite for the Practitioner qualification.
5 Target Audience
This qualification is aimed at those involved in a range of formal and informal portfolio
management roles encompassing investment decision making, project and
programme delivery, and benefits realization. It is relevant to all those involved in the
selection and delivery of business change initiatives including: members of
Management Boards and Directors of Change; Senior Responsible Owners (SROs);
portfolio, programme, project, business change and benefits managers; and business
case writers and project appraisers.
ATHEM MoP® AXELOS V02

6 Instructions For Use
Find the instructions for use your learning kit:

A) Read you pre-course material. Something like 40 hours of reading
a. Official MANAGING of Portifolios (MoP®)
B) There are some sample Questions that you will use during your training session.
You will do the exercise (after the class) and you will make notes about you
doubts.
Share your doubts with the trainer.
a. Sample 1: The file name is 005_MOP_Foundation_Sample_1.ZIP
b. Sample 2: The file name is 006_MOP_Foundation_Sample_2.ZIP
C) You willl receive the presentation that will be used by the instructor during the
class. You can use during your training session in order to make your own notes.
Note: During your pre-course, make notes of your question. Post you question in our
LMS (Learning Management System – Forum). Your question will be answered in up to
24hours.
7 Planned Lessons Plan and Planned Agenda

This is the planned Lessons Plan.
Day 1
08:30 Wellcome – Introduction - Module 01 - Overview of portfolio
management
10:00 Break
10:15 The definitions of portfolio and portfolio management.
The portfolio management model and the relationship between the
principles, cycles, practices and relevant techniques.
The names of the portfolio definition practices.
The names of the portfolio delivery practices.
12:00 Lunch
13:00 The differences between portfolios and portfolio management
The local circumstances that will affect how the MoP principles and
Practices.
The objectives and benefits of portfolio management.
14:00 The three broad approaches to implementing portfolio management
15:00 Break
15:15 The benefits of assessing the impact of portfolio management
When each approach to implementation is most relevant

The factors to consider in sustaining progress

Approaches to assessing portfolio management maturity
17:45 Question & Answer – 15 min
Day 2
08:30 The 6 key functions/activities that portfolio management needs

Coordinate with business as usual (BAU) to deliver strategic objectives.
Coordinate with strategic planning to deliver strategic objectives.

Coordinate with budgeting and resource allocation to deliver strategic
objectives.
Coordinate with programme and project management to deliver
strategic objectives.
Coordinate with performance management to deliver strategic
objectives.
Support effective corporate governance.
10:00 Break
10:15 The names of the five principles upon which effective portfolio
management is based.
The keys to success in relation to principle 1
12:00 Lunch
13:00 The keys to success in relation to principle 4
The portfolio definition cycle and its key output.
15:00 Break
15:15 The portfolio definition practices:
1. Understand
2. Categorize
3. Prioritize
4. Balance
5. Plan
The results of a well functioning portfolio definition cycle
16:00 The techniques
What is involved and the keys to success in the understand, categorize,
prioritize, balance and plan practices.
17:45 Question & Answer - 15 min
Day 3

08:30 The portfolio delivery cycle.

1. Management control
2. Benefits management
3. Financial management
4. Risk management
5. Stakeholder engagement
6. Organizational governance
7. Resource management
The results of a well functioning portfolio delivery cycle
10:00 Break
10:15 The techniques
What is involved, the main elements, and keys to success of the
management control, benefits management, financial management,
risk management, stakeholder engagement, organizational governance,
and resource management practices.
12:00 Lunch
13:00 The challenges and solutions to effective dependency management
Practice Exam
15:00 Break
15:15 MoP® Foundation Exam Orientations
16:00 MoP® Foundation Exam
8 Measuring the learning

The trainer will make question during the class in order to check your understanding. At the
end, you will fill the course evaluation for in order to check you understanding and overall
satisfaction.
9 MoP® Sillabus
You have to read the AXELOS MoP® Syllabus before the training session start. See the
Syllabus in the Appendix A.
The training agenda is organised in accordance with learning objectives and learning
modules of syllabus.
10 Last information
If you have any doubt, please contact the Lead Trainer via e-mail (contato@athem.net.br)

MoP® Foundation – Students Orientation A
11 Appendix A - Syllabus

Management of Portfolios
Syllabus
March 2012
Version 2.1 (Status Live) Page 0 Owner: Chief Examiner
© AXELOS Limited 2012

Reproduction of this material requires the permission of AXELOS Limited.
The swirl logo™ is a trade mark of AXELOS Limited
MoP® is a registered trade mark of AXELOS Limited
1. Introduction
The Management of Portfolios (MoP) guidance provides advice and examples of how to apply
principles, practices, and techniques that help optimize an organization’s investment in
change alongside its Business As Usual (BAU) work.
Qualifications are offered at two levels: Foundation and Practitioner.
The primary purpose of the syllabus is to provide a basis for accreditation of people involved
with the selection and management of portfolios of projects and programmes. It documents
the learning outcomes related to the use of MoP and describes the requirements a candidate
is expected to meet to demonstrate that these learning outcomes have been achieved at each
qualification level.
The target audience for this document is:

 Exam Board
 Exam Panel
 APMG Assessment Team
 Accredited Training Organizations.
This syllabus informs the design of the exams and provides accredited training organizations
with a more detailed breakdown of what the exams will assess. Details on the exam structure
and content are documented in the MoP Foundation and Practitioner Design documents.
2. Foundation Qualification
2.1 Purpose of the Foundation Qualification

The purpose of the Foundation qualification is to confirm that a candidate has sufficient
knowledge and understanding to work as an informed member of a Portfolio Office or in a
range of portfolio management roles. The Foundation qualification is also a pre-requisite for
the Practitioner qualification.
2.2 Target Audience

management roles encompassing investment decision making, project and programme
delivery, and benefits realization. It is relevant to all those involved in the selection and
delivery of business change initiatives including: members of Management Boards and
Directors of Change; Senior Responsible Owners (SROs); portfolio, programme, project,
business change and benefits managers; and business case writers and project appraisers.
2.3 High Level Performance Definition of a Successful Candidate

This level aims to measure whether a candidate understands the principles, cycles, practices,
techniques, roles, responsibilities, documents and organizational context within which
portfolio management operates. Specifically to know and understand the:
 scope and objectives of portfolio management and how it differs from programme and
project management
 benefits from applying portfolio management
 context within which it operates
 principles upon which successful portfolio management is based

 approaches to implementation, the factors to consider in mantaining progress, and how to
assess the success of portfolio management
 purposes of the portfolio management definition and delivery cycles and their component
practices, and relevant techniques applicable to each practice
 purpose and key content of the major portfolio documents
 scope of key portfolio management roles.
Only learning levels 1 (Knowledge) and 2 (Comprehension) are tested at Foundation level.
3. Practitioner Qualification
3.1 Purpose of the Practitioner Qualification

The purpose of the Practitioner qualification is to confirm whether the candidate has achieved
sufficient understanding of how to apply and tailor the MoP guidance and to analyse portfolio
data, documentation and roles in relation to a scenario situation. A successful Practitioner
candidate should, with suitable support, be able to advise on the implementation of
appropriate practices and techniques, and apply the method to a live portfolio, but may not be
sufficiently skilled to do this appropriately for all situations. Their individual expertise, the
complexity of the portfolio, and the support provided will also influence the impact the
Practitioner can achieve.
3.2 Target Audience

management roles encompassing investment decision making, project and programme
delivery, and benefits realization. It is relevant to all those involved in the selection and
delivery of business change initiatives including: members of Management Boards and
Directors of Change; Senior Responsible Owners (SROs); portfolio, programme, project,
business change and benefits managers; and business case writers and project appraisers.
3.3 High Level Performance Definition of a Successful Candidate

Candidates should be able to apply and understand how to tailor MoP effectively. Specifically
candidates should be able to demonstrate their ability to:
 define the business case to get senior management approval for portfolio management
 plan the implementation of portfolio management
 select and adapt MoP principles, practices and techniques to suit different organizational
environments
 evaluate examples of MoP information (including documents and role descriptions)
 analyse the solutions adopted in relation to a given scenario.
The Practitioner syllabus will test learning at levels 3 (Application) and 4 (Analysis).
4. Learning Outcomes Assessment Model
A classification widely used when designing assessments for certification and education is the
Bloom’s Taxonomy of Educational Objectives. This classifies learning objectives into six
ascending learning levels, each defining a higher degree of competencies and skills. (Bloom
et al, 1956, Taxonomy of Educational Objectives).
APMG have incorporated this into a Learning Outcomes Assessment Model which is used to

provide a simple and systematic means for assessing and classifying the learning outcomes
for APMG qualifications.
This structured approach helps to ensure:
 A clear delineation in learning level content between different qualification levels

 Learning outcomes are documented consistently across different areas of the
guidance
 Exam questions and papers are consistent and are created to a similar level of
difficulty.

MoP Learning Outcomes Assessment Model
1.Knowledge 2. Comprehension 3. Application 4. Analysis
Generic Definition Know key facts, terms Understand key Be able to apply key Be able to analyse
from APMG Learning and concepts from the concepts from the concepts relating to and distinguish
Outcomes manual/guidance. manual/guidance. the syllabus area for a between appropriate
Assessment Model given scenario. and inappropriate use
of the
method/guidance for a
given scenario
situation.
MoP Qualification Know facts, including Understand the terms, Be able to apply with Be able to identify,
Learning Outcome terms, principles, principles, cycles, appropriate tailoring, analyse and
Assessment Model cycles, practices, practices, techniques, the principles, distinguish between
techniques, documents, roles and practices, techniques, appropriate and
documents, roles and responsibilities in roles and inappropriate use of
responsibilities from relation to portfolio responsibilities to suit the guidance through
the guidance. management and the the organizational appraisal of the
organizational context circumstances, and in justification, planning,
within which they particular: design,
operate. implementation and
(i) design and apply
operation of portfolio
appropriate
management for a
strategies to
given scenario.
implement, sustain
and measure
portfolio
management;
(ii) appropriate use of
portfolio definition
practices and
relevant
techniques;
(iii) appropriate use of
portfolio delivery
practices and
relevant
techniques; and
(iv) appropriate use of
portfolio
documentation and
involvement of the
relevant roles
for a given scenario.
5. Syllabus Areas
The syllabus is presented by syllabus areas. This is the unit of learning which may relate to a
chapter from the manual/guidance or several concepts commonly grouped together in a
training course module.
The following syllabus areas are identified.


Syllabus Syllabus Area Title
Area Code
OV Overview
IS Implement, sustain and measure
SO Strategic and organizational context
PP Portfolio management principles
DF Portfolio definition cycle
DL Portfolio delivery cycle
RD Roles and documentation
Notes
i. Questions based on a syllabus area may refer to material from other sections of the MoP
guidance.
6. Syllabus Presentation
For each syllabus area learning outcomes for each learning level are identified. Each learning
outcome is then supported by a description of the requirements that a candidate is expected
to meet to demonstrate that the learning outcome has been achieved at the qualification level
indicated. These are shown as syllabus topics.
All Foundation level requirements are assumed to have been met for Practitioner level and
are not directly assessed again, although Foundation level knowledge and understanding will
be used when demonstrating Practitioner application and analysis learning outcomes.
Each of the syllabus areas is presented in a similar format as follows:
Syllabus Syllabus Area :

Practitioner
Foundation
References
Area Code
Primary
MoP Syllabus Area [1]
DF [2]
Level Topic
Know fact, terms and concepts relating to the syllabus area. [3]
Specifically to recall:
01 01 [6] [8]
[7]
[4] [5]
01 02
Key to the Syllabus Area table
1 Syllabus Area Unit of learning, e.g. chapter of the reference guide or

course module.
2 Syllabus Area Code A unique 2 character code identifying the syllabus area.

3 Learning Outcome A statement of what a candidate will be expected to know,
understand or do.
(topic header shown in
bold)
4 Level Classification of the learning outcome against the APMG

OTE Learning Outcomes Assessment Model.
5 Topic Reference Number of the topic within the learning level.
6 Topic Description Description of what is required of the candidate to

demonstrate that a learning outcome has been achieved at
the qualification level indicated
7 Foundation/Practitioner Shows at which qualification level the topic is assessed.
N.B A topic is only assessed at one qualification level.
8 Primary Reference The main reference supporting the topic.
7. Important Points
The following points about the use of the syllabus should be noted.
7.1 MoP Guide References

The MoP guide references provided should be considered to be indicative rather than
comprehensive, i.e. there may be other valid references within the guidance.
In practice, at Practitioner level, questions based on a syllabus topic may require knowledge
of material from other sections of the MoP guidance. This will be clear from the context of the
question and the scenario.
The references provided include sections (e.g. 4.7) and sub-sections (e.g. 4.3.4). Where a
specific section is referenced, e.g. 4.9, this refers to that section only – it does not refer to its
sub-section, e.g. 4.9.1 to 4.9.5. However, where a range of sections is referenced, e.g. 4.3 –
4.4, all sub-sections of the referenced sections are meant to be included.
7.2 Syllabus Exclusions

Examinations will be based on the main MoP guide and won’t include items only addressed in
the accompanying ‘An Executive Guide to Portfolio Management’.
The examples shown in the shaded boxes throughout the MoP guide are not examined.
Syllabus Syllabus Area:

Practitioner
Foundation
Reference
Area
Primary
Code Overview
OV

Practitioner
Foundation
Reference
Area
Primary
Code Overview
OV
Level Topic
Know facts, terms and concepts relating to an Overview of portfolio
management.
01 01 The definitions of portfolio and portfolio management.  2.3
01 02 The portfolio management model and the relationship between the 2.4

principles, cycles, practices and relevant techniques.
01 03 The names of the portfolio definition practices.  6,1
01 04 The names of the portfolio delivery practices.  7.1
Understand the terms and concepts relevant to an overview of portfolio
management.
Specifically to identify:
02 01 The differences between portfolios and portfolio management on the 2.3
one hand, and projects/project management and 
programmes/programme management on the other.
02 02 The local circumstances that will affect how the MoP principles and 2.2
practices will be adapted and how cost effective approaches can be 
adopted.
02 03 The objectives and benefits of portfolio management.  2.2, 2.5
Be able to apply and tailor MoP to a scenario.
Specifically to:
There are no level 3 topics for this syllabus area.*
Be able to identify, analyse and distinguish between appropriate and
inappropriate application of the syllabus area to a scenario.
Specifically to analyse:
* Overview topics are not specifically included at Practitioner level as they may be examined
within the other relevant syllabus areas.

Practitioner
Foundation
Reference
Area
Primary
Guide
Code Implement, sustain and measure
IS
Level Topic
Know facts, terms and concepts relating to implementing, sustaining and
measuring portfolio management.
01 01 The three broad approaches to implementing portfolio management.  5.3
01 02 The benefits of assessing the impact of portfolio management.  Appendix F

Understand how to implement, sustain and measure portfolio management.
02 01 When each approach to implementation is most relevant, the 5.3, 2.2
advantages of planned approaches to implementation, and the first

seven steps (and their benefits) in a staged implementation of
portfolio management.
02 02 The factors to consider in sustaining progress.  5.4
02 03 Approaches to assessing portfolio management maturity and the 7.2.2.5 &
impact of portfolio management including examples of performance  Appendix F
metrics that can be employed.
Be able to apply and tailor the recommended approaches taken to
implementing, sustaining and measuring portfolio management to a scenario.
Specifically to:
03 01 Identify appropriate approaches when implementing, sustaining, and
measuring portfolio management for a given scenario, including:
1. Selection of an appropriate approach to implementation. 5.3,
2. Coordination of portfolio management with key corporate Chapter 3
functions.
3. Designing and evaluating approaches to portfolio
4.4, 4.6, 7.7, 5.4,
governance. 
4.3
4. Designing a strategy to sustain progress.
5. Building and maintaining organizational energy to support
4.7, 5.5
effective operation of the portfolio definition and delivery
cycles.
6. Assessing progress encompassing process maturity and Appendix F
evidence of impact.
inappropriate application of the recommended approaches to implementing,
sustaining and measuring portfolio management within a scenario.

Practitioner
Foundation
Reference
Area
Primary
Guide
Code Implement, sustain and measure
IS
04 01 Whether recommended approaches to implementing, sustaining, and 5.3
measuring portfolio management have been undertaken Chapter 3
appropriately in the context of a given scenario, with reasons.
4.4, 4.6, 7.7

5.4, 4.3
4.7, 5.5
Appendix F

Practitioner
Foundation
Reference
Area
Primary
Guide
Code Strategic and organizational context
SO
Level Topic
Know facts, terms and concepts relating to the relationships between portfolio
management and other corporate functions and activities with a role in
delivering strategic objectives.
01 01 The 6 key functions/activities that portfolio management needs to 3.1

coordinate with to achieve strategic objectives.
Understand the key aspects of the relationships between the portfolio and
other corporate functions and activities with a role in delivering strategic
objectives.
Specifically to identify how portfolio management can:
02 01 Coordinate with business as usual (BAU) to deliver strategic 3.2

objectives.
02 02 Coordinate with strategic planning to deliver strategic objectives.  3.3
02 03 Coordinate with budgeting and resource allocation to deliver strategic 3.4

objectives.
02 04 Coordinate with programme and project management to deliver 3.5

02 05 Coordinate with performance management to deliver strategic 3.6

objectives.
02 06 Support effective corporate governance.  3.7
Specifically to:
* Strategic and organizational context topics are not specifically included at Practitioner level
because they are examined with the Implement, sustain and measure syllabus area in
Question 1.

Practitioner
Foundation
Reference
Area
Primary
Guide
Code Portfolio management principles
PP
Level Topic
Know facts, terms and concepts relating to the principles upon which efficient
and effective approaches to portfolio management are built.
01 01 The names of the five principles upon which effective portfolio Figure 2.1

management is based.
Understand the principles upon which efficient and effective approaches to
portfolio management are built.
02 01 The keys to success in relation to principle 1: Senior management 4.3
commitment and specifically, the ways in which:
1. Senior management engagement supports effective portfolio 
management.
2. Senior managers should support portfolio management.
02 02 The keys to success in relation to principle 2: Governance alignment, 4.4

and issues to consider in an effective portfolio governance structure.
02 03 The keys to success in relation to principle 3: Strategy alignment, 4.5
and specifically:
1. Approaches and techniques to align programmes and

projects with organizational strategy.
2. Techniques that facilitate strategic alignment even where
strategic measures are not clearly defined.
02 04 The keys to success in relation to principle 4: Portfolio Office, and 4.6
specifically:

1. The services it provides.
2. How it differs from a programme or project office.
02 05 The keys to success in relation to principle 5: An energized change 4.7, 5.5
culture and specifically:
1. The elements of an energized change culture. 
2. The energy states.
3. Sources of organizational energy.
Be able to apply and tailor the portfolio management principles to a scenario.
Specifically to*:
inappropriate application of the portfolio management principles to a
scenario.
Specifically to analyse*:

* Portfolio management principles topics are not specifically included at Practitioner level
because they are examined with the Implement, sustain and measure syllabus area in
Question 1 (Senior management commitment, Governance alignment, Portfolio Office and
Energized change culture) and with the Portfolio definition cycle (Strategy alignment) syllabus
area in Question 2.

Practitioner
Foundation
Reference
Area
Primary
Guide
Code Portfolio definition cycle
DF
Level Topic
Know facts, terms and concepts relating to the portfolio definition cycle.
Specifically to recall the purpose(s) of:
01 01 The portfolio definition cycle and its key output.  5.6.1
01 02 The portfolio definition practices:
1. Understand 6.2.1
2. Categorize 6.3.1

3. Prioritize 6.4.1
4. Balance 6.5.1
5. Plan 6.6.1
Understand the terms and concepts relating to the portfolio definition cycle.
02 01 The results of a well functioning portfolio definition cycle and the 5.6.2, 5.6.3

implications where this is not the case.
02 02 The techniques of:
1. Three point estimating and reference class forecasting. 6.4.2, 7.2.2.2,
2. Driver-based strategic contribution analysis. Glossary
3. Multi-criteria analysis.  4.5
4. Decision conferencing. 6.4.2
5. Clear line of sight planning. 6.4.2, Glossary
6.6, Glossary
02 03 What is involved and the keys to success in the understand practice.  6.2.2
02 04 What is involved and the keys to success in the categorize practice.  6.3.2
02 05 What is involved and the keys to success in the prioritize practice.  6.4.2, 6.4.3
02 06 What is involved and the keys to success in the balance practice.  6.5.2, 6.5.3
02 07 What is involved and the keys to success in the plan practice.  6.6.2
Be able to apply and tailor the practices and techniques of the portfolio
definition cycle to a scenario.
Specifically to:
03 01 Identify appropriate practices and techniques within the portfolio
definition cycle when:
1. Understanding the current portfolio. 6.2
2. Splitting the portfolio into organizationally appropriate 6.3
categories or segments.
 6.4, 4.5
3. Using appropriate approaches to prioritize the portfolio.
4. Considering what factors need to be taken into account in
6.5
balancing the portfolio.
6.6
5. Completing a portfolio strategy and delivery plan.

Practitioner
Foundation
Reference
Area
Primary
Guide
Code Portfolio definition cycle
DF
inappropriate application of portfolio definition practices and techniques to a
scenario.
04 01 Whether the approaches adopted are appropriate, with reasons, in a
given scenario when: 6.2
1. Understanding the current portfolio. 6.3
2. Categorizing the portfolio.  6.4, 4.5
3. Prioritizing the portfolio. 6.5
4. Balancing the portfolio. 6.6
5. Completing a portfolio strategy and delivery plan.

Practitioner
Foundation
Reference
Area
Primary
Guide
Code Portfolio delivery cycle
DL
Level Topic
Know facts, terms and concepts relating to the portfolio delivery cycle.
Specifically to recall the purpose(s) of::
01 01 The portfolio delivery cycle.  5.7.1
01 02 The portfolio delivery practices:
1. Management control 7.2.1
2. Benefits management 7.3.1
3. Financial management 7.4.1

4. Risk management 7.5.1
5. Stakeholder engagement 7.6.1
6. Organizational governance 7.7.1
7. Resource management 7.8.1
Understand the terms and concepts relating to the portfolio delivery cycle.
02 01 The results of a well functioning portfolio delivery cycle and the 5.7.2, 5.7.3

implications where this is not the case.
02 02 The techniques of:
1. Management by exception 7.2,2.3, Glossary
2. One version of the truth 7.2.2.3, Glossary

3. Staged release of funding 7.2.2.2, 7.4.2
4. Clear line of sight reporting 7.2.2.3, Glossary
5. Champion-challenger model 7.6.2, Glossary
02 03 What is involved, the main elements, and keys to success of the 7.2.2

management control practice.

benefits management practice.

financial management practice.
02 06 What is involved, the main elements, and keys to success of the risk 7.5.2

management practice.
02 07 What is involved, the main elements, and keys to success of the 7.6.2-4

stakeholder engagement practice.
organizational governance practice. 

resource management practice.
02 10 The challenges and solutions to effective dependency management.  7.5.3

Practitioner
Foundation
Reference
Area
Primary
Guide
Code Portfolio delivery cycle
DL
Be able to apply and tailor the practices, techniques and responsibilities of the
portfolio delivery cycle to a scenario.
Specifically to:
03 01 Identify appropriate practices and techniques within the portfolio
delivery cycle encompassing:
1. Management control 7.2
2. Portfolio-level benefits management 7.3
3. Portfolio-level financial management 
7.4
4. Portfolio-level risk management 7.5
5. Portfolio-level stakeholder engagement 7.6
6. Portfolio-level resource management 7.8
inappropriate application of portfolio delivery practices and techniques to a
scenario.
04 01 Whether the approaches adopted are appropriate, with reasons, in a
given scenario to:
1. Management control 7.2
2. Portfolio-level benefits management 7.3
3. Portfolio-level financial management 
7.4
4. Portfolio-level risk management 7.5
5. Portfolio-level stakeholder engagement 7.6
6. Portfolio-level resource management 7.8

Practitioner
Foundation
Reference
Area
Primary
Guide
Code Roles and documentation
RD
Level Topic
Know facts, terms and concepts relating to the main portfolio management
roles and key documentation.
01 01 The purposes of the main portfolio management roles identified in Appendix B
MoP:
1. Portfolio Direction Group/Investment Committee
2. Portfolio Progress Group/Change Delivery Committee 
3. Business Change Director/Portfolio Director
4. Portfolio Manager
5. Portfolio Benefits Manager
01 02 The purposes of the main portfolio management documentation: Appendix E
1. Portfolio Management Framework
2. Portfolio Benefits Management Framework
3. Portfolio Strategy
4. Portfolio Delivery Plan

5. Portfolio Benefits Realization Plan
6. Portfolio Financial Plan
7. Portfolio Resource Schedule
8. Portfolio Stakeholder Engagement and Communication Plan
9. Portfolio Dashboard Report
Understand the definitions and concepts relevant to the main portfolio
management roles and key documentation.
02 01 The responsibilities of the main portfolio roles identified in MoP: Appendix B
2. Portfolio Progress Group/Change Delivery Committee


Practitioner
Foundation
Reference
Area
Primary
Guide
RD
02 02 The recommended contents of the main portfolio management Appendix E
documentation:
1. Portfolio Management Framework 7.3.2
2. Portfolio Benefits Management Framework
3. Portfolio Strategy
4. Portfolio Delivery Plan 
5. Portfolio Benefits Realization Plan
6. Portfolio Financial Plan
7. Portfolio Resource Schedule
8. Portfolio Stakeholder Engagement and Communication Plan
7.2.2.3
Specifically to:
03 01 Identify appropriate information, using typical contents, for inclusion
in the relevant portfolio documentation: Appendix E
1. Portfolio Management Framework 7.2.2.1
2. Portfolio Benefits Management Framework 7.3,2
3. Portfolio Strategy 6.6.2
4. Portfolio Delivery Plan  7.3,2
5. Portfolio Benefits Realization Plan 7.4.2
6. Portfolio Financial Plan 7.8.2
7. Portfolio Resource Schedule 7.6.2
8. Portfolio Stakeholder Engagement and Communication Plan 7.2.2.3
03 02 Identify appropriate application of the main portfolio management Appendix B
roles identified in MoP:

Practitioner
Foundation
Reference
Area
Primary
Guide
RD
04 01 Whether the following portfolio documentation is fit for purpose, with
reasons: Appendix E
1. Portfolio Management Framework 7.2.2.1
2. Portfolio Benefits Management Framework 7.3,2
3. Portfolio Strategy 6.6.2
4. Portfolio Delivery Plan  7.3,2
5. Portfolio Benefits Realization Plan 7.4.2
6. Portfolio Financial Plan 7.8.2
7. Portfolio Resource Schedule 7.6.2
8. Portfolio Stakeholder Engagement and Communication Plan 7.2.2.3
04 02 Whether, the specified roles have been involved appropriately, with Appendix B
reasons:

MoP® Foundation – Students Orientation B
12 Appendix B – Sample Questions 1 and Rational

The Foundation Examination
MoP Foundation Exam
28 September 2012
Multiple Choice
40 minute Paper
Instructions
1. All 50 questions should be attempted.
2. All answers are to be marked on the answer grid provided.
3. Please use a pencil and NOT ink to mark your answers in the Answer
sheet provided.
4. There is only one correct answer per question.
5. You have 40 minutes for this paper.
6. You must get 25 or more correct to pass.
Candidate Number: .....................................…
© AXELOS Limited 2012 All rights reserved.

The swirl logoTM is a trade mark of AXELOS Limited
MoP Foundation Examination
1 Identify the missing word in the following sentence.
A [ ? ] is the totality of an organization’s investment (or segment thereof) in the changes

required to achieve its strategic objectives.
a) Project
b) Programme
c) Portfolio
d) Strategy
2 What is portfolio definition in the context of MoP?
a) A cycle
b) A practice
c) A principle
d) A technique
3 Which is a portfolio definition practice?
a) Benefits management
b) Evolution
c) Decision-conferencing
d) Categorize

2
4 Which is a portfolio delivery practice?
a) Prioritize
b) Management by exception
c) Stakeholder engagement
d) Strategy alignment
5 How does portfolio management achieve the most effective balance of organizational change
and BAU?
a) By ensuring the portfolio includes all business change initiatives

b) By undertaking periodic reviews at portfolio and initiative level to assess performance and
strategic contribution
c) By delivering outputs as specified in the business case on time and to the specified cost and
quality
d) By directing delivery of a number of projects to realize benefits that contribute to strategic
objectives
6 Which circumstances affect how organizations adapt the MoP principles and practices?
1. Culture and governance structure

2. Maturity in project and programme management
3. Experience in the use of relevant IT solutions
4. Existing strategic planning, financial and risk management processes
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4

MoP® is a registered trade mark of AXELOS Limited 3
7 Which is a benefit of portfolio management?
a) To merge two programmes that are seeking to achieve the same strategic objectives
b) To reduce the number of programmes and projects across the organization
c) To identify the resources being used on programmes and projects across the organization
d) To create a list of the organization’s programmes and projects
8 Which is one of the three broad approaches to implementing portfolio management?
a) Definition
b) Champion-challenger
c) Evolution
d) Staged release of funding
9 Which is a benefit of assessing the impact of portfolio management?
a) It removes redundant and duplicate programmes and projects

b) It helps in the on-going development of more effective portfolio management practices
c) It ensures variances from plan that exceed a pre-set control limit are escalated for action
d) It clearly identifies and manages the benefits being realized from the portfolio

MoP® is a registered trade mark of AXELOS Limited 4
10 In which circumstance would the 'big bang' approach to implementing portfolio management be
appropriate?
a) In a stable marketplace where strategy evolves as the organization explores new approaches
b) In a stable marketplace where strategy is formulated by the senior management team
c) In a less stable marketplace where strategy is formulated by the senior management team
d) In a less stable marketplace where strategy evolves as the organization explores new
approaches
11 How is progress sustained in the implementation of portfolio management?
a) Build on existing practices rather than introducing completely new processes

b) Adopt a 'big bang' approach rather than an incremental or staged approach
c) Communicate with stakeholders at key points in time rather than having on-going stakeholder
engagement
d) Ensure practices are adhered to rather than opening them up to challenge and improvement
12 Which are appropriate approaches to assessing portfolio management maturity?
a) Both the P3M3TM model and 'champion-challenger' model

b) Both the Portfolio management health check assessment and 'champion-challenger' model
c) Both the Portfolio management health check assessment and the P3M3 model
d) The Portfolio management health check assessment, 'champion-challenger' model, and P3M3
model

5
13 Which is one of the six primary functions that portfolio management needs to coordinate with
to achieve strategic objectives?
a) Performance management
b) Information technology
c) Benefits management
d) Human relations
14 Which describes the relationship between business as usual and portfolio management?
a) Maintain the Business, Maintain the Portfolio

b) Maintain the Business, Change the Business
c) Run the Business, Change the Business
d) Run the Business, Run the Portfolio
15 Which is provided by strategic planning, in terms of its relationship with portfolio management?
a) Information on the contribution being made by programme and projects

b) Momentum and energy for strategy development
c) Suggested changes to strategy based on achievement of unplanned benefits
d) The context within which portfolio management operates

6
16 Which statement describes how portfolio management coordinates with resource allocation
and budgeting to deliver strategic objectives?
a) Strategy maintains the link between portfolio management and resource allocation
b) Resource allocation maintains the link between strategy and portfolio management
c) Portfolio management maintains the link between strategy and resource allocation
d) None of the above
17 The role of programme and project management in terms of delivering strategic objectives
within a portfolio management environment is to provide mechanisms for which of the
following?”
a) management of limited resources

b) overall risk management
c) delivering change initiatives
d) dependency management
18 Which is NOT a way in which portfolio management should align with the performance
management system?
a) Make appropriate use of existing performance management expertise to design and implement
new portfolio key performance indicators
b) Align performance and portfolio reporting appropriately, in terms of timing and content
c) Make appropriate use of the existing management information system in designing portfolio
reports
d) Develop delivery capability organisation-wide, via fit-for-purpose standards, processes and staff
development

7
19 Which is NOT a way that portfolio management supports effective corporate governance?
a) Provides clarity on progress against the Portfolio Delivery Plan

b) Clarifies responsibility and accountability for making decisions on which programmes and
projects will be funded
c) Dictates the use of MSP and PRINCE2 for the management of programmes and projects
d) Provides an audit trail demonstrating the rationale behind investment decisions
20 Which of the following are portfolio management principles?
1. Senior management commitment

2. Portfolio definition
3. Strategy alignment
4. Energized change culture
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
21 Which is an example of how senior managers should support portfolio management?
a) Explain the reasons for decisions to staff members

b) Delegate portfolio management decision-making to selected experts
c) Ensure that changes which affect their departments are not stopped
d) Contribute their expertise exclusively within their own department

8
22 Which is a 'key to success' of the portfolio management principle: governance alignment?
a) Multi-criteria analysis is used to augment net present value

b) New ways of working are reflected in reward and recognition structures
c) There is an agreed escalation path for sub-portfolios to report exceptions
d) Benefits are clearly identified in a business case
23 Where measures of strategic success have not been clearly defined, which is a suggested
technique to align the portfolio with strategy?
a) Split the available funding across the portfolio to reflect the estimated time to deliver each
initiative
b) Senior management makes a decision based on their personal interest in each initiative
c) Prioritize initiatives using financial metrics such as net present value
d) Weight the strategic objectives and rate the contribution of initiatives
24 Which is a characteristic of a Portfolio Office?
a) It is concerned with detailed delivery of change initiatives

b) It is a permanent structure independent of the management board
c) It provides an assurance on efficient and effective delivery of initiatives
d) It is a temporary structure in place until strategic objectives are met

9
25 Which of the following are sources of organizational energy within an organization?
1. Connection
2. Context
3. Climate
4. Culture
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
26 What is the purpose of the portfolio definition cycle?
a) To collate key information that will provide clarity to senior management on the collection of
change initiatives that will deliver the greatest contribution to the strategic objectives, subject
to consideration of risk/achievability, resource constraints and cost/affordability
b) To ensure the successful implementation of the planned change initiatives as agreed in the
Portfolio Strategy and Delivery Plan, whilst also ensuring the portfolio adapts to changes in the
strategic objectives, project and programme delivery, and lessons learned
c) To ensure clarity about what decisions are made, where, by whom, and what criteria are used
in making these decisions
d) To coordinate, direct and oversee the implementation of a set of related projects and activities
in order to deliver outcomes and benefits related to the organization’s strategic objectives
27 Which portfolio definition practice organizes change initiatives into groups, segments or sub-
portfolios to make it easier for senior decision-makers to understand the make up of their
portfolio?
a) Prioritize
b) Plan
c) Categorize
d) Balance

10
28 What is a result of the portfolio definition cycle being managed well?
a) Everything is planned in detail at a portfolio level

b) Decision-makers can focus on high-level scope, costs, benefits and risks
c) Managers will start their own change initiatives
d) Improved delivery on time and to budget
29 Identify the missing words in the following sentence.
Weighted value score [ ? ] the initiative’s cost can provide a relative value for money index.
a) added to
b) subtracted from
c) multiplied by
d) divided by
30 Which is NOT one of the 'keys to success' of the understand practice?
a) Identification of all relevant initiatives by the Portfolio Office and strategic planners
b) Validation of data and the building of effective working relationships with PPM professionals
c) Involving relevant stakeholders in the prioritization of initiatives
d) Collection of a consistent set of data to aid subsequent categorization and prioritization

11
31 Which statement about the categorize practice is true?
a) Each organization should adopt an industry-specific list of categories, to be used for all types
of initiative
b) For clarity, categorization information is best presented as a numbered list
c) The amount of resource spent on a category should have no bearing on its relative priority
d) Investment criteria used to prioritize initiatives should be tailored to suit each portfolio category
32 Which statement about the prioritize practice is true?
a) A segmented portfolio should consider the need for different criteria to prioritize initiatives in
each segment
b) Prioritization of initiatives should always be supported by financial metrics
c) Prioritization of initiatives should be done before considering the amount of risk involved
d) A mandatory requirement should be top priority, regardless of cost
33 Which statement about the balance practice is true?
a) Initiatives already underway should be allowed to continue

b) Decisions must be made within the constraint of an organization's existing available resource
c) Detailed decisions on balancing can be only be made when initiatives have been prioritized
d) The Portfolio Office makes the decisions and presents the results to senior management

12
34 Which is an objective of the Portfolio Strategy and Delivery Plan?
a) To promote discussion among stakeholders to define the scope of the portfolio

b) To convert the approved portfolio into a plan, with clear milestones and a resource schedule
c) To provide an overview of the portfolio separate from the strategic planning cycle
d) To motivate people to define their own individual and departmental goals
35 What is the purpose of the portfolio delivery cycle?
a) To collate key information which will provide clarity to senior management on the collection of
change initiatives that will deliver the greatest contribution to the strategic objectives
b) To ensure the successful implementation of the planned change initiatives as agreed in the
Portfolio Strategy and Delivery Plan
c) To provide timely and accurate information to facilitate management decision-making
d) To co-ordinate, direct and oversee the implementation of a set of related projects and activities
in order to deliver outcomes and benefits related to the organization’s strategic objectives
36 The purpose of which practice is to ensure portfolio delivery stays on track and that the
portfolio remains strategically aligned?
a) Financial management
b) Benefits management
c) Management control
d) Organizational governance

13
37 Which is a result of an effectively managed portfolio delivery cycle?
a) There is clarity on the high level scope of potential change initiatives

b) Initiatives will not be delivered on time and to budget
c) Resources, risks and dependencies will be efficiently and effectively managed
d) Change initiatives are planned in detail
38 Identify the missing words in the following description of the 'management by exception'
technique.
Variances in excess of the [?] are referred to the portfolio governance body.
a) business case
b) control limits
c) strategic objectives
d) escalation procedures
39 Which is a 'key to success' of the management control practice?
a) Regular stage / phase gates at significant points in the programme or project lifecycle
b) Consistent rules on the classification, valuation and validation of benefits
c) Clearly defined governance structures, processes, escalation routes and role descriptions
d) Monitoring the overall level of risk exposure

14
40 Which is a 'key to success' of the benefits management practice?
a) Portfolio-wide standards for resource forecasting are prepared to guide programme planners
b) Forecasting is based on evidence from post-implementation reviews
c) Generic risks from inaccurate forecasting are identified
d) Spend against the Financial Plan is included in the Portfolio Dashboard Report
41 Which of the following are elements in the financial management practice?
1. Role profiles are prepared for key portfolio positions

2. Control limits for reporting variances from plan
3. Rules for constructing cost forecasts in business cases
4. Rules for valuing efficiency savings and other benefits
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
42 Which is a 'key to success' of the risk management practice?
a) Dynamic resource management

b) Alignment of portfolio and financial reporting cycles
c) Consideration of achievability and attractiveness during portfolio prioritization
d) Use of contemporary communications

15
43 Which is NOT a main element of portfolio-level stakeholder engagement in the portfolio delivery
cycle?
a) The Portfolio Office and the organization’s communications experts working collaboratively
b) Portfolio communications being visibly and proactively supported by management board
members
c) Adoption of the 'champion-challenger' model for process improvement from all stakeholders
d) Consideration of risk being incorporated into the business change lifecycle
44 Which is a main element of the organizational governance practice?
a) Specific consideration being given to effective dependency management

b) Defining escalation paths where performance deviates from a set limit
c) Providing clear rules on compiling cost forecasts in business cases
d) Matching demand and supply for constrained resources
45 Which is NOT a main element of the resource management practice?
a) Linking the commitment of financial resources to confidence in the reliability of forecasts

b) Understanding the types and timing of current and future demand for resources
c) Taking corrective action where resource shortages are forecast to occur
d) Recording current availability, skills and experience of key staff in a portfolio skills register

16
46 A workshop organized by the Portfolio Office to raise awareness of the scope of the portfolio is
a solution to which dependency management challenge?
a) Information on dependencies not being readily available

b) Presenting complex information in an easily understandable form
c) Assessing which are the most important dependencies
d) Documenting and managing dependencies
47 What role coordinates the effective and efficient operation of the portfolio management
practices?
a) Business Change Director

b) Portfolio Benefits Manager
c) Portfolio Manager
d) Portfolio Progress Group
48 What portfolio document provides the baseline against which progress will be monitored via the
Portfolio Dashboard?
a) Portfolio Management Framework

b) Portfolio Strategy
c) Portfolio Delivery Plan
d) Portfolio Benefits Management Framework

17
49 Which is a responsibility of the Portfolio Manager?
a) Assures effectiveness of benefits management practices

b) Works to resolve constraints in the portfolio
c) Approves changes to the practices within the portfolio definition cycle
d) Approves communications on portfolio progress
50 Which of the following is contained in the Portfolio Delivery Plan?
a) Portfolio governance arrangements

b) Description of the key stakeholder groups analyzed by interest and influence
c) Current status on key risks and issues
d) Benefits to be realized in the year ahead

18
Week ending :
For Exam Paper :GBP210FSample1-110127SamplePaper1
Syllabus Syllabus Syllabus
Q Ans Section Q Ans Section Q Ans Section
Topic Topic Topic
1 C OV0101.1 2.3 31 D DF02.4 6.3.2

2 A OV0101.2 2.4 32 A DF02.5 6.4
3 D OV0101.3 2.4.2 33 C DF02.6 6.5.2-3
4 C OV0101.4 2.4.2 34 B DF02.7 6.6.2
5 B OV0102.1 2.3 35 B DL01.1 5.7.1
6 B OV0102.2 2.2 36 C DL01.2 7.2.1-.7.8.1
7 A OV0102.3 2.2 and 2.5 37 C DL02.1 5.7.2

8 C IS01.1 5.3 38 B DL02.2 7.2.2.3
9 B IS01.2 Appendix 6 39 A DL02.3 Table 7.2
10 B IS02.1 5.3 40 B DL02.4 7.3.2
11 A IS02.2 5.4 41 D DL02.5 7.4.2
7.2.2.5,
12 C IS02.3 42 C DL02.6 Table 7.7
Appendix 6
13 A SO01.1 3.1 43 D DL02.7 7.6.2-4

14 C SO02.1 3.2 44 B DL02.8 7.7.2
15 D SO02.2 3.3 45 A DL02.9 7.8.2
16 C SO02.3 3.4 46 A DL02.10 Table 7.6
17 C SO02.4 3.5 47 C RD01.1 Appendix 2
18 D SO02.5 1.2 48 C RD01.2 Appendix 5
19 C SO02.6 3.7 49 B RD02.1 Appendix 2

20 C PP01.1 4.2 50 D RD02.2 Appendix 5
21 A PP02.1 4.3
22 C PP02.2 4.4
23 D PP02.3 4.5
24 C PP02.4 4.6
25 A PP02.5 4.7,5.5
26 A DF01.1 5.6.1
27 C DF01.2 6.2.1-6.6.1
28 B DF02.1 5.6.2-3
29 D DF02.2 4.5
30 C DF02.3 6.2.2

Rationale

1 OV0101.1 - Overview
C
LL1 - Recall the definitions of portfolio and portfolio management.
a) Incorrect - a project is a temporary organization, usually existing for a much shorter
time, which will deliver one or more outputs in accordance with a specific business
case. Ref 2.3
b) Incorrect - a programme is a temporary, flexible organization created to co-ordinate,
direct and oversee the implementation of a set of related projects and activities in order
to deliver outcomes and benefits related to the organization’s strategic objectives. Ref
2.3
c) Correct - this is the definition of a portfolio. Ref 2.3
d) Incorrect - strategy is the approach taken, or line to take, to achieve a long-term aim.
Ref Glossary
A
LL1 - Recall the portfolio management model and the relationship between the principles,
cycles, practices and relevant techniques.
a) Correct - the portfolio definition cycle is one of the two portfolio management cycles in
MoP. Ref 2.4.2
b) Incorrect - the portfolio definition and delivery cycles contain 12 practices. Ref 2.4.2
c) Incorrect - the principles provide the context within which the portfolio definition and
delivery cycles, and their constituent practices, operate. Ref 2.4.1
d) Incorrect - techniques relate to the ways in which the portfolio definition and delivery
practices can be applied. Ref 2.4.2
D
LL1 - Recall the names of the portfolio definition practices.
a) Incorrect - this is a portfolio delivery practice. Ref. 2.4.2
b) Incorrect - this is one of the three broad approaches to implementation of portfolio
management. Ref 5.3
c) Incorrect - this is a technique to facilitate effective portfolio prioritization. Ref 6.4
d) Correct - categorize is one of the 5 portfolio definition practices. Ref 2.4.2

2
C
LL1 - Recall the names of the portfolio delivery practices.
a) Incorrect - this is a portfolio definition practice. Ref. 2.4.2
b) Incorrect - this is a technique to facilitate effective portfolio reporting. Ref 7.2
c) Correct - stakeholder engagement is one of the 7 portfolio delivery practices. Ref 2.4.2
d) Incorrect - this is a portfolio management principle. Ref 2.4.1
B
LL2 - The scope of portfolios and portfolio management and the differences from
projects/project management and programmes/programme management
a) Incorrect - the portfolio does not include all business change, rather the focus is on
change initiatives that are delivered via formalized ppm methods. Ref 2.3
b) Correct - the way portfolio management achieves the most effective balance of
organizational change and BAU includes regular review in terms of progress, cost, risk,
benefits and strategic contribution. Ref 2.3
c) Incorrect - This is within the scope of a project and project management. Ref 2.3
d) Incorrect - Incorrect. This is the responsibility of programme management.. Ref 2.3
B
LL2 - Identify the circumstances that will affect how the MoP principles and practices will be
adapted.
a) Incorrect - use of IT solutions is not a requirement for portfolio management. Ref 2.2
b) Correct - the principles and practices need to be tailored to reflect local circumstances,
of which all of these are examples. Ref 2.2
c) Incorrect - use of IT solutions is not a requirement for portfolio management. Ref 2.2
d) Incorrect - use of IT solutions is not a requirement for portfolio management. Ref 2.2

3
A
LL2 - Identify the benefits of portfolio management.
a) Correct - this relates to the removal of duplicate projects, which is a benefit of portfolio
management. Ref 2.5
b) Incorrect - this would only be a benefit if the remaining programmes and projects are the
‘right’ ones. Ref 2.5
c) Incorrect - this would only be a benefit if it resulted in the resources being used more
efficiently or effectively. Ref 2.5
d) Incorrect - this would only be a benefit if it resulted in the removal of duplicate, non-
strategically aligned, or poorly-performing initiatives. Ref 2.2 and 2.5
8 IS01.1 - Implement, sustain and measure

C
LL1 - Recall the three broad approaches to implementing portfolio management.
a) Incorrect - portfolio definition is one of the two portfolio management cycles. Ref 2.4.2
b) Incorrect - the champion-challenger model is a technique for engaging stakeholders in
the development and maintenance of portfolio management practices. Ref.7.2, 7.6
c) Correct - evolution is one of the three broad approaches to implementing portfolio
management. Ref. 5.3
d) Incorrect - staged release of funding is a portfolio delivery technique. Ref. 7.2

B
LL1 - Recall the benefits of assessing the impact of portfolio management.
a) Incorrect - this is a benefit of portfolio management not of measuring its impact. Ref 2.5
b) Correct - this is a benefit of assessing the impact of portfolio management. Ref.
Appendix 6
c) Incorrect - this is the technique of management by exception. Ref 7.2.3
d) Incorrect - this is the purpose of the benefits management practice. Ref 7.3.1

4

B
LL2 - Identify when each approach to implementation of portfolio management is most relevant.
a) Incorrect - the “big bang” approach is most appropriate where top-down approaches to
strategy formulation are applied. Ref 5.3
b) Correct - the “big bang” approach is most appropriate where the environment is relatively
stable and where top-down approaches to strategy formulation are applied. Ref 5.3
c) Incorrect - the “big bang” approach is most appropriate where the environment is
relatively stable. Ref 5.3
d) Incorrect - the “big bang” approach is most appropriate where the environment is
relatively stable and where top-down approaches to strategy formulation are applied. Ref
5.3

A
LL2 - Identify the factors to consider in sustaining progress.
a) Correct - it is better to build on existing practices. Ref 5.4
b) Incorrect - it is better to follow an incremental or staged approach. Ref 5.4
c) Incorrect - it is better to have on-going stakeholder engagement. Ref 5.4
d) Incorrect - in addition to ensuring compliance it is also necessary to open processes up
to challenge and improvement. Ref 5.4

C
LL2 - Identify approaches to assessing portfolio management maturity and the impact of
a) Incorrect - the champion-challenger model is a way of engaging stakeholders in the
development of Portfolio Management rather than a means to assess maturity. Ref 7.6.2
b) Incorrect - the champion-challenger model is a way of engaging stakeholders in the
c) Correct - both the portfolio management health check assessment and the P3M3TM
model can be used to assess portfolio management maturity. Ref Appendix 1 and 6
d) Incorrect - the champion-challenger model is a way of engaging stakeholders in the

5
13 SO01.1 - Strategic & Organizational Context

A
LL1 - Recall the 6 key functions/activities that portfolio management needs to coordinate with
to achieve strategic objectives.
a) Correct - Ref 3.6
b) Incorrect - this is one of the other corporate functions/activities that portfolio
management needs to coordinate with. Ref. 3.8
c) Incorrect - this is one of the portfolio delivery practices. Ref. 7.3
d) Incorrect - this is one of the other corporate functions/activities that portfolio
management needs to coordinate with. Ref. 3.8

C
LL2 - Identify how portfolio management and Business As Usual coordinate to deliver strategic
objectives.
a) Incorrect - the relationship between portfolio management and Business As Usual is
represented as a simple concept of ‘Run the Business, Change the Business’. Ref. 3.2
b) Incorrect - the relationship between portfolio management and Business As Usual is
c) Correct - the relationship between portfolio management and Business As Usual is
d) Incorrect - the relationship between portfolio management and Business As Usual is

D
LL2 - Identify how portfolio management and strategic planning coordinate to deliver strategic
objectives.
a) Incorrect - this is provided by portfolio management. Ref 3.3

b) Incorrect - this is provided by portfolio management. Ref 3.3
c) Incorrect - this is provided by portfolio management. Ref 3.3
d) Correct - this is provided by strategic planning. Ref 3.3

6

C
LL2 - Identify how portfolio management and resource allocation and budgeting coordinate to
deliver strategic objectives.
a) Incorrect - portfolio management maintains the link between strategy and resource
allocation. Ref 3.4
b) Incorrect - portfolio management maintains the link between strategy and resource
allocation. Ref 3.4
c) Correct - portfolio management maintains the link between strategy and resource
allocation. Ref 3.4
d) Incorrect - portfolio management maintains the link between strategy and resource
allocation. Ref 3.4

C
Identify how portfolio management and project and programme management can coordinate to
a) Incorrect - this is a role for portfolio management. Ref 3.5
b) Incorrect - this is a role for portfolio management. Ref 3.5
c) Correct - this is the role for programme and project management. Ref 3.5
d) Incorrect - this is a role for portfolio management. Ref 3.5

D
LL2 - Identify how portfolio management and performance management coordinate to deliver
strategic objectives
a) Incorrect - this is a way in which portfolio management should align with the
performance management system. Ref 3.6
b) Incorrect - this is a way in which portfolio management should align with the
c) Incorrect - this is a way in which portfolio management should align with the
d) Correct - this is one of the ways in which portfolio management can coordinate with
project and programme management in the delivery of strategic objectives. Ref 3.5

7

C
LL2 - Identify how portfolio management supports effective corporate governance.
a) Incorrect - by providing clarity of progress, portfolio management contributes to
monitoring and control systems. Ref 3.7
b) Incorrect - by clarifying responsibilities and accountabilities, portfolio management
contributes to effective management systems. Ref 3.7
c) Correct - whilst portfolio management should provide a framework for consistently
managing the delivery of the portfolio, this does not necessarily mean the use of MSP
and/or PRINCE2. Ref 3.7
d) Incorrect - by providing an audit trail, portfolio management contributes to effective
management systems. Ref 3.7
20 PP01.1 - Portfolio Management Principles

C
LL1 - Recall the names of the 5 principles upon which effective portfolio management is based.
a) Incorrect - portfolio definition is one of the two portfolio management cycles. Ref. 2.4.2
b) Incorrect - portfolio definition is one of the two portfolio management cycles. Ref. 2.4.2
c) Correct - senior management commitment, strategy alignment and energized change
culture are 3 of the 5 principles that underpin effective portfolio management. Ref 2.4.1,
4.2
d) Incorrect - portfolio definition is one of the two portfolio management cycles. Ref. 2.4.2

A
LL2 - Identify the keys to success in relation to principle 1 senior management commitment
and, specifically, the ways in which senior managers should support portfolio management.
a) Correct - explaining the rationale for decisions to their staff is a way in which senior
managers should support portfolio management. Ref 4.3
b) Incorrect - senior managers should have personal, active and positive participation in
portfolio management decision-making. Ref 4.3
c) Incorrect - senior managers should take a portfolio-wide, rather than a departmental,
perspective. Ref 4.3
d) Incorrect - senior managers should contribute their expertise to the development of
portfolio management across the organization. Ref 4.3

8

C
LL2 - Identify the keys to success in relation to principle 2 governance alignment, and issues
to consider in an effective portfolio governance structure.
a) Incorrect - MCA and NPV are used to inform portfolio prioritization. Ref 4.3
b) Incorrect - alignment with reward and recognition strategies is a key to success for the
senior management commitment principle. Ref 4.3
c) Correct - agreed escalation paths from ppg/change delivery committee to the
pdg/investment committee and an agreed escalation process for sub-portfolios to report
exceptions to organization-level portfolio governance bodies are keys to success for the
governance alignment principle. Ref 4.4
d) Incorrect - benefits and strategic contribution of each change initiative should be defined
in a business case but this is a key to success of the strategy alignment principle. Ref.
4.5

D
LL2 – Identify the keys to success in relation to principle 3 strategy alignment and,
specifically, how strategic alignment can be achieved even where strategic measures are not
clearly defined.
a) Incorrect - a suggested technique is portfolio segmentation, i.e. splitting the total
available funding into segments to reflect high-level strategic choices then prioritizing
initiatives in each segment on the basis of criteria relevant to that segment. Ref 4.5.1
b) Incorrect - decision-conferencing, where senior managers come to a collective decision
on the composition of the portfolio, is a suggested technique. Ref. 4.5.1
c) Incorrect - Net Present Value is a technique used in investment appraisal and portfolio
prioritization but does not provide a means to ensure strategic alignment where strategic
objectives are non-financial. Ref. 6.4.2
d) Correct - Weighting and rating systems, e.g. rating the strategic contribution of an
initiative as, for example, mission critical, highly desirable or desirable, is a suggested
technique. Ref. 4.5.1

C
LL2 – Identify the key services a portfolio office provides and, specifically, how it differs from a
programme or project office.
a) Incorrect - project and programme offices are concerned with coordinating the detailed
delivery of individual change initiatives. Ref 2.3
b) Incorrect - a portfolio office should ideally have direct contact with, and report to, the
management board. Ref Table 4.4
c) Correct - the portfolio office provides an assurance to senior management on efficient
and effective delivery of initiatives. Ref. 4.6
d) Incorrect - a portfolio office is usually permanent and integrated into the organizational
governance structure. Ref. 2.3

9

A
LL2 – Identify the keys to success in relation to principle 5 an energized change culture and,
specifically, sources of organizational energy.
a) Correct - Connection, Context and Climate are all suggested sources of organizational
energy. Ref 5.5
b) Incorrect - Connection and Context are suggested sources of organizational energy, but
Culture is not. Ref. 5.5
c) Incorrect - Connection and Climate are suggested sources of organizational energy, but
d) Incorrect - Context and Climate are suggested sources of organizational energy, but
26 DF01.1 - Portfolio Definition Cycle

A
LL1 - Recall the purpose of the portfolio definition cycle and it’s key output.
a) Correct – this is the purpose of the portfolio definition cycle. Ref 5.6.1
b) Incorrect - this is the purpose of the portfolio delivery cycle. Ref 5.7.1
c) Incorrect - this is the purpose of the organizational governance practice. Ref 7.7
d) Incorrect - this is the definition of a programme. Ref. 2.3

C
LL1 - Recall the purposes of the portfolio definition practices.
a) Incorrect - the purpose of the prioritize practice is to help senior management and the
portfolio governance body decide which initiatives it should invest in, subject to
consideration of an appropriate balance between risk and return. Ref 6.4.1
b) Incorrect - the purpose of the plan practice is to collate information from the portfolio
definition cycle and create a portfolio strategy & delivery plan which will be approved by
the portfolio direction group/investment committee. Ref. 6.6.1
c) Correct - the purpose of the categorize practice is to make it easier for senior decision-
makers to understand the make-up their portfolio, and thus to make decisions on
balance and on the optimum use of available funding and other resources. Ref 6.3.1
d) Incorrect - the purpose of the balance practice is to ensure that the portfolio is balanced
in terms of factors such as: timing; coverage of all strategic objectives; impact across
the business; stage of initiative development; overall risk:return profile; and available
resources. Ref 6.5.1

10

B
LL2 – Identify the results of a well functioning portfolio definition cycle and the implications
where this is not the case.
a) Incorrect - defining the portfolio does not mean that everything in the portfolio must be
planned in detail; this should be done by programme or project management. Ref 5.6.2
b) Correct - the overriding benefit of the portfolio definition cycle is its focus on providing
clarity on high level scope, costs, benefits, risks and other factors which enable
informed decision-making. Ref 5.6.2
c) Incorrect - if the portfolio definition cycle is NOT managed well, there is a risk that
managers will start their own pet projects. Ref 5.6.3
d) Incorrect - improved delivery on time and to budget is a result of the portfolio delivery
cycle being managed well. 5.7.2

D
LL2 - Identify the technique, key features and uses, of driver-based strategic contribution
analysis.
a) Incorrect - value score should be divided by the cost to provide a relative value for money
index. Ref. 4.5
b) Incorrect - value score should be divided by the cost to provide a relative value for money
index. Ref. 4.5
c) Incorrect - value score should be divided by the cost to provide a relative value for money
index. Ref. 4.5
d) Correct - value score should be divided by the cost to provide a relative value for money
index. Ref. 4.5

C
LL2 - Identify the keys to success in the understand practice.
a) Incorrect - the portfolio office and the strategic planning function working together to
ensure that all initiatives relevant to the strategic objectives are identified is one of the
keys to success of the understand practice. Ref. 6.2.2.
b) Incorrect - developing effective relationships with PPM professionals is one of the keys
to success of the understand practice. Ref. 6.2.2.
c) Correct - this is not one of the keys to success of the understand practice. Ref.
6.2.2. Determining the priorities of initiatives is part of prioritize practice. Ref. 6.3.
d) Incorrect - a standard template can help ensure a consistent set of data is collected on
all initiatives – and this aids categorization and prioritization in due course. This is one of
the keys to success of the understand practice. Ref. 6.2.2.

11

D
LL2 - Identify what is involved and the keys to success in the categorize practice.
a) Incorrect - one of the keys to success in the categorize practice is that categories
should suit the circumstances, reflecting strategic objectives and the type of initiative.
Ref. 6.3
b) Incorrect - one of the keys to success in the categorize practice is to be creative in
presentation format, and a graphical presentation can help. Ref 6.3
c) Incorrect - one of the keys to success in the categorize practice is to use categorization
to assess strategic alignment, and data on spend by category provides a check that
resource allocation reflects relative strategic priorities. Ref. 6.3
d) Correct - tailoring the investment criteria is one of the keys to success in the categorize
practice. Ref. 6.3

A
LL2 - Identify what is involved and the keys to success in the prioritize practice.
a) Correct - the criteria used to prioritize initiatives should be tailored to suit the particular
portfolio segments. Ref 6.4.1
b) Incorrect - many organizations will use financial metrics, but these are of limited use
where the immediate benefits of the initiative are not financial in nature. Ref. 6.4.2
c) Incorrect - prioritization information helps senior management and the portfolio
governance body to prioritize initiatives subject to consideration of an appropriate
balance between risk and return. Ref. 6.4.1
d) Incorrect - there should be adequate review to ensure the requirement is indeed
mandatory and that the planned response is cost-effective. Ref. 6.4.2

C
LL2 - Identify what is involved and the keys to success in the balance practice.
a) Incorrect - current initiatives may be cancelled where appropriate, where this is not
limited by existing contractual commitments. Ref 6.5.2
b) Incorrect - one of the balancing factors is to match supply and demand for constrained
resources or to arrange to acquire additional resources. Ref. 6.5.2
c) Correct - it is only when the collection of proposed change initiatives have been
prioritized that detailed balancing decisions can be made. Ref. 6.5.2
d) Incorrect - the portfolio office collaborates with colleagues, including operational
management, to recommend the most appropriate portfolio for senior management
consideration and approval. Ref. 6.5.2

12

B
LL2 - Identify what is involved in the plan practice.
a) Incorrect - an objective is to provide clarity to all stakeholders with regard to the scope
and content of the portfolio. Ref. 6.6.2
b) Correct - an objective is to convert the balanced portfolio approved by the relevant
portfolio governance body into a plan with clear milestones and a resource schedule.
Ref. 6.6.2
c) Incorrect - an objective is to provide an overview, linked to the strategic planning cycle.
Ref. 6.6.2
d) Incorrect - an objective is to motivate people to commit to the delivery of shared goals.
Ref. 6.6.2
35 DL01.1 - Portfolio Delivery Cycle

B
LL1 - Recall the purpose of the portfolio delivery cycle.
a) Incorrect - this is the purpose of the portfolio definition cycle. Ref. 5.6.1
b) Correct - this is the purpose of the portfolio delivery cycle. Ref 5.7.1
c) Incorrect - this is a purpose of the portfolio office. Ref. 4.6
d) Incorrect - this definition relates to a programme. Ref. 2.3

C
LL1 - Recall the purposes of the portfolio delivery practices.
a) Incorrect - the purpose of the financial management practice is to ensure that the
portfolio management processes and decisions are aligned to the financial management
cycle, and that financial considerations form a key element in all decisions regarding the
commencement and ongoing viability of change initiatives. Ref 7.4.1
b) Incorrect - the purpose of the benefits management practice is to clearly identify and
manage the benefits being realized from the portfolio, so helping to ensure best use of
available resources and that the contribution to operational performance and strategic
objectives is maximised. Ref 7.3.1
c) Correct - this is the purpose of the management control practice. Ref. 7.2.1
d) Incorrect - the purpose of the organizational governance practice is to ensure clarity
about what decisions are made, where, when, and what criteria are used. Ref 7.7.1

13

C
LL2 - Identify the results of a well- functioning portfolio delivery cycle.
a) Incorrect - providing clarity on high level scope of potential change initiatives is a result of
carrying out the portfolio definition cycle well. Ref 5.6.1
b) Incorrect - initiatives not being delivered on time and to budget is a result of the portfolio
delivery cycle not being managed well. Ref 5.7.3
c) Correct - this is one of the results of an effectively managed portfolio delivery cycle. Ref
5.7.2
d) Incorrect - detailed initiative planning is a part of project and programme management.
Ref 2.6

B
LL2 - Identify the technique of management by exception.
a) Incorrect - under management by exception, escalation is linked to control limits for
spend, schedule and benefits beyond which variances from plan are referred to the
portfolio governance body. Ref 7.2.2.1
b) Correct - under management by exception, escalation is linked to control limits for
c) Incorrect - under management by exception, escalation is linked to control limits for
d) Incorrect - under management by exception, escalation is linked to control limits for

A
LL2 - Identify the keys to success of the management control practice.
a) Correct - this is the effective business change lifecycle key to success of the
management control practice. Ref Table 7.2
b) Incorrect - this is a key to success of the benefits management practice. Ref Table 7.4
c) Incorrect - this is a key to success of the organizational governance practice. Ref Table
7.9
d) Incorrect - this is a key to success of the risk management practice. Ref Table 7.7

14

B
LL2 - Identify the keys to success of the benefits management practice.
a) Incorrect - this a key to success of the resource management practice. Ref Table 7.10
b) Correct - evidence-based forecasting informed by post-implementation reviews is a key
to success of the benefits management practice. Ref Table 7.4
c) Incorrect - this is a key to success of the risk management practice. Ref Table 7.7
d) Incorrect - regular reporting of spend against the plan is a key to success of the financial
management practice. Ref Table 7.5

D
LL2 - Identify the main elements in the financial management practice.
a) Incorrect - role profiles being prepared for key portfolio positions is a main element of the
organizational governance practice. Ref 7.7.2
b) Incorrect - role profiles being prepared for key portfolio positions is a main element of the
c) Incorrect - role profiles being prepared for key portfolio positions is a main element of the
d) Correct - these are all main elements of the financial management practice. Ref 7.7.2

C
LL2 - Identify the keys to success of the risk management practice.
a) Incorrect - this is a key to success of the resource management practice. Ref Table
7.10
b) Incorrect - this is a key to success of the financial management practice. Ref Table 7.5
c) Correct - this is a key to success of the risk management practice. Ref Table 7.7
d) Incorrect - this is a key to success of the stakeholder engagement management
practice. Ref Table 7.8

15

D
LL2 - Identify the main elements of the stakeholder engagement practice.
a) Incorrect - this is one of the main elements of the stakeholder engagement practice. Ref
7.6.2
b) Incorrect - this is one of the main elements of the stakeholder engagement practice. Ref
7.6.2
c) Incorrect - this is one of the main elements of the stakeholder engagement practice. Ref
7.6.2
d) Correct - this is a key to success of the risk management practice. Ref 6.6.2

B
LL2 - Identify the main elements of the organizational governance practice.
a) Incorrect - dependency management is a main element of the risk management
practice. Ref 7.5.2
b) Correct - defining escalation paths where performance deviates from a set limit is a main
element of the organizational governance practice. Ref 7.7.2
c) Incorrect - providing clear rules on compiling cost forecasts in business cases is a main
element of the financial management practice. Ref 7.4.2
d) Incorrect - providing clear rules on compiling cost forecasts in business cases is a main
element of the financial management practice. Ref 7.4.2

A
LL2 - Identify the main elements of the resource management practice.
a) Correct - staged release of funding enables the commitment of financial resources to be
linked to the reliability of forecasts. This is an element of the management control
practice. Ref 7.2.2.2
b) Incorrect - this is an element of the resource management practice. Ref 7.8.2
c) Incorrect - this is an element of the resource management practice. Ref 7.8.2
d) Incorrect - this is an element of the resource management practice. Ref 7.8.2

16

A
LL2 - Identify the challenges and solutions to effective dependency management.
a) Correct - this is a solution to the challenge where information is not readily available. Ref
Table 7.6
b) Incorrect - the workshop is geared to meeting the challenge of information not being
readily available, not to presenting complex information in an easily understandable
form. Ref Table 7.6
c) Incorrect - the workshop is geared to meeting the challenge of information not being
readily available, not to assessing the most important dependencies. Ref Table 7.6
d) Incorrect - the workshop is geared to meeting the challenge of information not being
readily available not to how to document and manage dependencies. Ref Table 7.6
47 RD01.1 - Roles & Documentation

C
LL1 - Recall the purposes of the main portfolio management roles.
a) Incorrect - the Business change or portfolio director is the management board member
who is responsible for the portfolio strategy and provides clear leadership and direction
through its life. Ref Appendix 2
b) Incorrect - the portfolio benefits manager ensures that a consistent ‘fit for purpose’
approach to benefits management is applied across the portfolio.Ref Appendix 2
c) Correct - the portfolio manager coordinates the effective and efficient operation of the
portfolio management practices. Ref Appendix 2
d) Incorrect - the portfolio progress group is responsible for monitoring portfolio progress
and resolving issues that may compromise delivery and benefits realization. Ref
Appendix 2

C
LL1 - Recall the purposes of the main portfolio management documentation.
a) Incorrect - the portfolio management framework provides all stakeholders with a single,
authoritative and up-to-date source of advice on the portfolio management practices
adopted by the organization and its governance arrangements. Ref Appendix 5
b) Incorrect - the portfolio strategy communicates a succinct description of the vision and
objectives for the portfolio – and the means by which these objectives will be achieved.
Ref Appendix 5
c) Correct - the portfolio delivery plan provides the baseline against which progress will be
monitored via the portfolio dashboard report. Ref Appendix 5
d) Incorrect - the portfolio benefits management framework provides a framework within
which consistent approaches to benefits management can be applied across the
portfolio. Ref Appendix 5

17

B
LL2 - Identify the responsibilities of the main portfolio roles.
a) Incorrect - this is a responsibility of the portfolio benefits manager. Ref Appendix 2
b) Correct - this is a responsibility of the portfolio manager. Ref Appendix 2
c) Incorrect - this is a responsibility of the pdg or investment committee. Appendix 2
d) Incorrect - this is a responsibility of the portfolio progress group or change delivery
committee. Appendix 2

D
LL2 - Identify the recommended contents of the main portfolio management documentation.
a) Incorrect - this is contained in the portfolio management framework. Ref Appendix 5
b) Incorrect - this is contained in the portfolio stakeholder engagement & communications
plan. Ref Appendix 5
c) Incorrect - this is contained in the portfolio dashboard which reports progress against the
delivery plan. Ref Appendix 5
d) Correct - this is contained in the portfolio delivery plan summarized from the benefits
realization plan. Ref Appendix 5
© AXELOS Limited 2012.

MoP® Foundation – Students Orientation C
13 Appendix C – Sample Questions 2 and Rational

MoP Foundation Exam
28 September 2012
Multiple Choice
40 minute Paper
Instructions
1. All 50 questions should be attempted.
2. All answers are to be marked on the answer grid provided.
3. Please use a pencil and NOT ink to mark your answers in the Answer
sheet provided.
4. There is only one correct answer per question.
5. You have 40 minutes for this paper.
6. You must get 25 or more correct to pass.
Candidate Number: .....................................…
© AXELOS Limited 2012. All rights reserved. Reproduction of this material requires the permission of AXELOS Limited.
The swirl logoTM is a trade mark of AXELOS Limited MoP® is a registered trade mark of AXELOS Limited
1 Portfolio management seeks to ensure the most effective balance of organizational change and
what function or activity?
a) Performance management
b) Strategic planning
c) Programme and project management
d) Business as usual
2 What consists of a series of broadly sequential practices?
a) Portfolio management model

b) Portfolio definition cycle
c) Portfolio delivery cycle
d) Portfolio management principles
3 Which is a portfolio definition practice?
a) Management by exception
b) Risk management
c) Balance
d) Energized change culture
2
4 Which is a portfolio delivery practice?
a) Plan
b) Benefits management
c) Champion-challenger model
d) Portfolio Office
5 How does portfolio management enable a balance of organizational change and BAU?
a) Delivering outputs as specified in the business case

b) By managing formal and informal change initiatives
c) Managing delivery of transformation activities to achieve outcomes and benefits
d) Regularly reviewing the strategic contribution of change initiatives
6 Which will NOT influence how portfolio management will be adapted to suit local
circumstances?
a) The organization's experience in using sophisticated software to manage projects and

programmes
b) The organization’s maturity in project and programme management
c) The organization’s track record in project and programme management delivery
d) The organization’s track record in realizing benefits from projects and programmes
3
7 Which is an objective of portfolio management?
a) Prescribe the use of ‘Best Management’ practices

b) Ensure change initiatives are delivered effectively and efficiently at a collective level
c) Ensure sophisticated IT solutions are applied to the management of initiative delivery
d) Ensure delivery of individual projects and programmes
8 Which is one of the three broad approaches to implementing portfolio management?
a) Delivery
b) Management by exception
c) Senior management commitment
d) Evolution
9 Which three statements are benefits of assessing the impact of portfolio management?
1. Helps demonstrate a compelling case for investment in portfolio management

2. Helps in the development of more effective portfolio management practices
3. Provides a reference class of data to inform forecasting
4. The process of measurement can help ensure success – reflecting the management adage,
‘what gets measured gets done’
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
4
10 Which three actions are among the first seven steps in a staged implementation of portfolio
management?
1. Create a list of all of the programmes and projects across the organization
2. Define a set of investment criteria to prioritize investments
3. Apply the technique 'staged release of funding'
4. Align reward and recognition processes with departmental objectives
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
11 Which is a way of sustaining progress in the implementation of portfolio management?
a) Waiting until project and programme management reaches a minimum level of maturity
b) Adopting an ‘ad hoc’ approach to implementation
c) Adapting organizational processes to suit the most sophisticated ‘off the shelf’ software
available
d) Applying the ‘champion-challenger’ model
12 Which is an example of a performance metric that can be used to assess the impact of
portfolio management?
a) Achievement of a project's outputs as specified in the Business Case

b) Achievement of agreed milestones that are included in the Portfolio Delivery Plan
c) Achievement of improved levels of customer satisfaction with goods supplied
d) Achievement of agreed milestones by initiatives included within a transformation programme
5
13 Which is one of the six key functions/activities that portfolio management needs to
coordinate with to achieve strategic objectives?
a) Information Technology
b) Procurement/Commercial
c) Programme & Project Management
d) Human Relations
14 Which correctly describes the relationship between portfolio management and BAU?
a) BAU and portfolio management combine to achieve strategic objectives

b) BAU and portfolio management combine to deliver change initiatives
c) BAU sets the context within which portfolio management operates
d) Portfolio management sets the context within which BAU operates
15 Which is NOT one of the four fundamental questions addressed by portfolio management as
part of strategic planning?
a) Is the portfolio, together with BAU, sufficient to achieve the strategic objectives
b) What is the current maturity level of portfolio management practices
c) Are all the change initiatives in the portfolio necessary
d) Is the portfolio achievable
6
Portfolio management provides the means by which the link between strategy and [ ? ] can be
maintained.
a) Risk management
b) Business planning
c) Performance management
d) Resource allocation
17 In relation to programme and project management, portfolio management provides

mechanisms for…
a) Managing dependencies across the portfolio

b) Managing dependencies between projects within a programme
c) Realization of benefits from a change initiative
d) Successful delivery of an individual change initiative
18 Which is NOT a way in which portfolio management should align with the performance
management system?
a) Updating the organization’s performance targets to reflect the planned portfolio impact
b) Ensuring performance and portfolio reporting schedules remain independent
c) Engaging the performance management function early in the development of business cases
d) Making use of the expertise of the performance management function in designing new
portfolio performance metrics
7
19 How can portfolio management support effective corporate governance?
a) By ensuring that separate assurance regimes are applied

b) By amending the organizational governance to match portfolio governance
c) By assigning responsibility for implementing change initiatives to the Portfolio Office
d) By providing a ‘clear line of sight’ on progress against plan
20 Which is one of the five portfolio management principles?
a) Benefits management
b) Portfolio delivery
c) Understand
d) Portfolio Office
21 Which is a key to success for the portfolio management principle ‘senior management
commitment’?
a) The roles of the Management Board regarding portfolio management are clearly defined
b) The Portfolio Management Framework includes a compelling vision for the portfolio
c) The Portfolio Office makes decisions on prioritization of initiatives on behalf of the Board
d) Someone independent of the executive is appointed to champion the implementation of
portfolio management
8
22 Which is a key to success for the portfolio management principle ‘governance alignment’?
a) Key roles in relation to portfolio management should be recorded in the Portfolio Delivery Plan
b) Sub-portfolios should make all required decisions without referring issues upward
c) Meetings of the portfolio governance bodies should be scheduled close together
d) Understanding of portfolio governance should be restricted to the Board of Directors
23 Which is a suggested technique for aligning individual initiatives with strategy in a private
sector organization?
a) Service value chain

b) Service profit chain
c) Governance alignment
d) Reference class forecasting
24 Which is NOT a key to success in making a Portfolio Office fully effective?
a) It should report to the Finance Director

b) Its terms of reference should be agreed by the Management Board
c) It should regularly review progress and adapt its activities accordingly
d) It should work collaboratively with other functions including strategic planning, PPM and BAU
9
25 What source of organizational energy is described as 'Work stimulates and provides a sense
of achievement'?
a) Climate
b) Context
c) Content
d) Connection
The purpose of the [ ? ] is to collate key information that will provide clarity to senior
management on the collection of change initiatives that will deliver the greatest contribution to
the strategic objectives?
a) Portfolio definition cycle

b) Portfolio delivery cycle
c) Balance practice
d) Organizational governance practice
27 Which portfolio definition practice ranks initiatives and helps senior management to decide
which initiatives should be invested in?
a) Prioritize
b) Understand
c) Management control
d) Balance
10
28 Which documents are key outputs of a well-managed portfolio definition cycle?
a) Portfolio Management Framework and Portfolio Strategy

b) Portfolio Benefits Management Framework and Portfolio Delivery Plan
c) Portfolio Strategy and Portfolio Delivery Plan
d) Portfolio Management Framework and Portfolio Benefits Management Framework
29 Which portfolio prioritization technique examines potential investments under the two main
headings of attractiveness and achievability?
a) Driver-based strategic contribution analysis

b) Multi-criteria analysis
c) Net present value analysis
d) Payback analysis
30 Which techniques can be used as part of an environmental scan during the ‘understand’
practice?
a) SWOT analysis and reference class forecasting

b) PESTLE analysis and the champion-challenger model
c) Reference class forecasting and the champion-challenger model
d) SWOT analysis and PESTLE analysis
11
31 Which is a key to success for the ‘categorize’ practice?
a) Use risk data by category to provide a high-level check that resource allocation reflects relative
priorities
b) Tailor investment criteria to each category
c) Ensure that the same investment criteria are applied to all potential investments
d) Use industry standard portfolio categories to aid benchmarking
32 What term describes the period taken for benefits to exceed accumulated costs in present
value terms?
a) Net present value

b) Payback (undiscounted)
c) Internal rate of return
d) Payback (discounted)
33 Which is a key to success for the ‘balance’ practice?
a) Ensure balancing occurs prior to prioritization

b) Ensure management judgment is NOT allowed to overrule agreed decision rules and
investment criteria
c) Present data in easy to understand graphical formats
d) The Portfolio Office should approve the results of the ‘balance’ practice
12
34 What does the ‘plan’ practice involve?
a) Combining the Portfolio Strategy and Delivery Plan into a single document
b) Producing a plan that does not require updating
c) Preparing plans that motivate people to commit to the delivery of shared goals
d) Documenting a baseline against which progress can be tracked via the Portfolio Management
Framework
35 What is this the purpose of 'To ensure the successful implementation of the planned change
initiatives as agreed in the Portfolio Strategy and Delivery Plan'?
a) Portfolio management
b) Portfolio definition cycle
c) Portfolio delivery cycle
d) The ‘plan’ practice
36 Which three statements are a purpose of the ‘organizational governance’ practice? To provide
clarity about:
1. To clarify what decisions are made

2. To clarify where decisions are made
3. To clarify the make-up of the portfolio
4. To clarify what criteria are used
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
13
37 Which is a result of a well-functioning portfolio delivery cycle?
a) Resources, risks and dependencies will be efficiently and effectively managed

b) Clarity on the scope, costs, risks and benefits of potential change initiatives
c) Funding does not need to be reallocated once initiatives are approved
d) The Portfolio Office gains greater control over the change portfolio
38 Which refers to the ‘clear line of sight’ technique?
a) Providing a dashboard report with a transparent chain from strategic intent to benefits
realization
b) Specifying points at which reviews of initiatives are linked to funding release
c) Reporting via a documented route and schedule
d) Referring variances from plan that exceed control limits to the portfolio governance body
39 Which is a main element of the ‘management control’ practice?
a) Adoption of the ‘champion-challenger’ model

b) Shared understanding of the governance structure
c) Regular portfolio-level reviews
d) Use of ‘multi-criteria’ analysis
14
40 Which technique enables reliable estimates of future benefits to be formulated on the basis of
previous experience or evidence?
a) Driver-based strategic contribution analysis

c) Champion-challenger model
d) Reference class forecasting
41 Which is a main element of the ‘financial management’ practice?
a) Prescribing the use of financial metrics for initiative prioritization

b) Including a business case in every financial plan
c) Application of the ‘management by exception’ technique
d) The portfolio and financial management cycles should be managed independently
42 Which three statements are main elements of the ‘risk management’ practice?
1 Management of dependencies between initiatives

2 Consideration of sufficient financial contingency at a portfolio level
3 Use of ‘decision conferencing’
4 Considering risk alongside return in the portfolio prioritization process
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
15
43 The application of which technique is a main element of the ‘stakeholder engagement’

practice?
a) Champion-challenger model
c) Management by exception
d) Staged release of funding
44 Which three statements are main elements of the ‘organizational governance’ practice?
1. The Portfolio Office is the guardian of the portfolio processes

2. Escalation paths with control limits are agreed
3. Role profiles are prepared for key positions
4. A Portfolio Office with direct delivery responsibility
a) 1, 2, 3
b) 1, 2, 4
c) 1, 3, 4
d) 2, 3, 4
45 Which is a ‘key to success’ for the ‘resource management’ practice?
a) Portfolio-level financial planning

b) Effective dependency management
c) Risk-based prioritization
d) Dynamic demand and supply management
16
46 Which is an example of a logical dependency?
a) Over-reliance on a single supplier

b) Testing facilities are required by projects x and y at the same time
c) Non-realization of expected benefits resulting from inaccurate forecasting
d) Project x is reliant upon an output from project y
47 What role is responsible for resolving issues that may compromise the delivery of the portfolio
and benefits realization?
a) Portfolio Manager
b) Portfolio Progress Group
c) Portfolio Director
d) Portfolio Direction Group
48 What portfolio document provides the baseline against which to track and compare actual
spend?
a) Portfolio Dashboard Report

b) Portfolio Resource Schedule
c) Portfolio Financial Plan
d) Portfolio Benefits Realization Plan
17
49 Championing the implementation of portfolio management is a responsibility of which portfolio

role?
a) Portfolio Progress Group / Change Delivery Committee

b) Portfolio Manager
c) Business Change Director / Portfolio Director
d) Portfolio Benefits Manager
50 Which portfolio management document contains the vision and longer-term objectives for the
portfolio?
a) Portfolio Management Framework

b) Portfolio Resource Schedule
c) Portfolio Strategy
d) Portfolio Stakeholder Engagement and Communication Plan
18
Week ending :
For Exam Paper :GBMOPFSample2-120525SamplePaper2
Syllabus Syllabus Syllabus
Q Ans Section Q Ans Section Q Ans Section
Topic Topic Topic
1 D OV0101.1 2.3 31 B DF02.4 6.3.2

2 B OV0101.2 2.4 32 D DF02.5 6.4.2-3
3 C OV0101.3 6.1 33 C DF02.6 6.5.2-3
4 B OV0101.4 7.1 34 C DF02.7 6.6.2
5 D OV0102.1 2.3 35 C DL01.1 5.7.1, 2.4.2
6 A OV0102.7 2.2 36 B DL01.2 7.2.1-7.8.1
7 B OV0102.3 2.2 37 A DL02.1 5.7.2

8 D IS01.1 5.3 38 A DL02.2 7.2.2.3
9 B IS01.2 Appendix F 39 C DL02.3 7.2.2
10 A IS02.1 5.3, 2.2 40 D DL02.4 7.3.2
11 D IS02.2 5.4 41 C DL02.5 7.4.2
7.2.2.5,
12 B IS02.3 42 B DL02.6 7.5.2
Appendix F
13 C SO01.1 3.1 43 A DL02.7 7.6.2-7.6.4

14 A SO02.1 3.2 44 A DL02.8 7.7.2
15 B SO02.2 3.3 45 D DL02.9 7.8.2
7.5.3, Table
16 D SO02.3 3.4 46 D DL02.10
7.6
17 A SO02.4 3.5 47 B RD01.1 Appendix B
18 B SO02.5 3.6 48 C RD01.2 Appendix E
19 D SO02.6 3.7 49 C RD02.1

20 D PP01.1 Figure 2.1 50 C RD02.2 Appendix E
21 A PP02.1 4.3
22 C PP02.1 4.4
23 B PP02.3 4.5
24 A PP02.4 4.6
25 C PP02.5 4.7, 5.5

26 A DF01.1 5.6.1, 2.4.2
27 A DF01.2 6.2.1-6.6.1
28 C DF02.1 5.6.2-3
29 B DF02.2 6.4.2
30 D DF02.3 6.2.2

Rationale

D
LL1 - Recall the definitions of portfolio and portfolio management
a) Incorrect – Portfolio management must effectively coordinate with performance
management. But the definition of portfolio management states that it seeks to enable
the most effective balance of organizational change and BAU. Ref 2.3.2, Glossary
b) Incorrect – Portfolio management must effectively coordinate with strategic planning. But
the definition of portfolio management states that it seeks to enable the most effective
balance of organizational change and BAU. Ref 2.3.2, Glossary
c) Incorrect – Portfolio management must effectively coordinate with PPM. But the
definition of portfolio management states that it seeks to enable the most effective
balance of organizational change and BAU. Ref 2.3.2, Glossary
d) Correct - the correct answer is business as usual. Ref 2.3.2, Glossary
B
LL1 - Recall the portfolio management model and the relationship between the principles,
cycles, practices and relevant techniques.
a) Incorrect – The portfolio management model illustrates the relationship between the
portfolio management principles and the definition and delivery cycles. Ref 2.4.1
b) Correct – The portfolio definition cycle contains a series of broadly sequential practices.
Ref 2.4.2
c) Incorrect – The portfolio delivery cycle contains a series of broadly simultaneous
practices. Ref 2.4.2
d) Incorrect – The portfolio management principles represent the key foundations on which
effective portfolio management is based. Ref 2.4.1
C
LL1 - Recall the names of the portfolio definition practices.
a) Incorrect - this is a portfolio delivery technique. Ref. 2.2
b) Incorrect - this is a portfolio delivery practice. Ref 7.1
c) Correct - Balance is one of the five portfolio definition practices. Ref 6.1
d) Incorrect – this is one of the portfolio management principles. Ref. 2.4.1

2
B
LL1 - Recall the names of the portfolio delivery practices.
a) Incorrect - this is a portfolio definition practice. Ref. 6.1
b) Correct - Benefits management is one of the seven portfolio delivery practices. Ref 7.1
c) Incorrect - this is a technique to facilitate effective stakeholder engagement. Ref 7.6.2
d) Incorrect - this is a portfolio management principle. Ref 2.4.1
D
LL2 - Identify the differences between portfolios and portfolio management on the one hand,
and projects/project management and programmes/programme management on the other.
a) Incorrect – this is the purpose of a project. Ref 2.3.5
b) Incorrect – the focus of portfolio management is on change initiatives that are delivered
via formalized PPM methods. Ref 2.3
c) Incorrect – this is the remit of programme management. Ref 2.3
d) Correct – this is one of the ways by which portfolio management balances organizational
change and BAU. Ref 2.3.2
A
LL2 - Identify the circumstances that will affect how the MoP principles and practices will be
adapted.
a) Correct - use of sophisticated software is not a requirement for portfolio management.
Ref 2.2
b) Incorrect - the principles and practices of portfolio management need to be tailored to
reflect local circumstances, of which this is an example. Ref 2.2
c) Incorrect - the principles and practices of portfolio management need to be tailored to
d) Incorrect - the principles and practices of portfolio management need to be tailored to

3
B
LL2 - Identify the objectives of portfolio management.
a) Incorrect - portfolio management does not prescribe any specific delivery method.
Solutions need to be tailored to local circumstances. Ref 2.2, 2.6
b) Correct – this is one of the objectives of portfolio management. Ref 2.2, 2.3.6
c) Incorrect – sophisticated IT solutions are not a necessary requirement for portfolio
management. Ref 2.2
d) Incorrect – responsibility for delivery of individual initiatives lies with project and
programme management. Ref 2.3.6

D
LL1 - Recall the three broad approaches to implementing portfolio management.
a) Incorrect – this is one of the portfolio management cycles. Ref 2.4
b) Incorrect – this is a portfolio delivery technique. Ref 2.2
c) Incorrect – this is one of the portfolio management principles. Ref 2.4
d) Correct – this is one of the three broad approaches to implementing portfolio
management. Ref. 5.3

B
LL1 - Recall the benefits of assessing the impact of portfolio management.
a) Incorrect – Reference class data is derived from monitoring the results of completed
initiatives rather than the impact of portfolio management. A benefit of assessing
portfolio management impact is that the process of measurement can help ensure
success. Ref Glossary, Appendix F
b) Correct – options 1, 2 and 4 are benefits of assessing the impact of portfolio
management. Ref Appendix F
c) Incorrect – Reference class data is derived from monitoring the results of completed
portfolio management impact is that it helps in the development of more effective
portfolio management practices. Glossary, Appendix F
d) Incorrect - Reference class data is derived from monitoring the results of completed
portfolio management impact is that it helps demonstrate a compelling case for
investment in portfolio management. Ref Glossary, Appendix F

4

A
LL2 – Identify the first seven steps (and their benefits) in a staged implementation of portfolio
management.
a) Correct – these are all among the first seven steps in a staged implementation of
portfolio management. Ref 2.2
b) Incorrect – reward and recognition processes should be aligned with corporate rather
than departmental objectives and this is a way of sustaining progress rather than one of
the first seven steps in a staged implementation of portfolio management. Ref 2.2, 5.4
c) Incorrect – reward and recognition processes should be aligned with corporate rather
d) Incorrect – reward and recognition processes should be aligned with corporate rather

D
LL2 - Identify the factors to consider in sustaining progress.
a) Incorrect – PPM maturity is not a pre-requisite for portfolio management. Ref 2.2
b) Incorrect – sustaining progress in the implementation of portfolio management is aided
by an incremental or staged rather than ad hoc approach. Ref 5.4
c) Incorrect – software solutions don’t necessarily need to be the most sophisticated and
should be tailored to suit the organization’s needs. Ref 5.4
d) Correct – application of the ‘champion-challenger’ model can aid sustaining progress by
ensuring stakeholders are actively involved. Ref 5.4

B
LL2 - Identify examples of performance metrics that can be employed to assess the impact of
a) Incorrect – this is a measure of project management effectiveness. Ref 2.3
b) Correct – this is a measure of the impact of portfolio management. Ref 7.2.2.5,
Appendix F
c) Incorrect – improved levels of customer satisfaction with goods supplied reflects BAU
performance. Ref 3.2
d) Incorrect – this is a measure of programme management effectiveness. Ref 2.3

5

C
LL1 - Recall the six key functions/activities that portfolio management needs to coordinate with
to achieve strategic objectives.
a) Incorrect - this is one of the other key departments/ functions that portfolio management
needs to coordinate with. Ref. 3.8, Table 3.1
b) Incorrect - this is one of the other key departments/ functions that portfolio management
c) Correct - this is one of the six key functions/activities that portfolio management needs
to coordinate with to achieve strategic objectives. Ref 3.1
d) Incorrect - this is one of the other key departments/ functions that portfolio management

A
LL2 - Identify how portfolio management can coordinate with Business As Usual to deliver
a) Correct - portfolio management and BAU combine to realize strategic objectives. Ref 3.2
b) Incorrect – delivery of change initiatives is the remit of PPM (at the individual initiative
level) and portfolio management (at the collective level). Ref 2.3, 3.5
c) Incorrect – Strategic planning sets the context within which portfolio management
operates. Ref 3.3
d) Incorrect - portfolio management and BAU combine to realize strategic objectives. Ref
3.2

B
LL2 - Identify how portfolio management can coordinate with strategic planning to deliver
a) Incorrect - this is one of the four fundamental questions addressed by portfolio
management as part of strategic planning. Ref 3.3
b) Correct - this is not one of the four fundamental questions addressed by portfolio
c) Incorrect - this is one of the four fundamental questions addressed by portfolio
d) Incorrect – this is one of the four fundamental questions addressed by portfolio

6

D
LL2 - Identify how portfolio management can co-ordinate with resource allocation and
budgeting to deliver strategic objectives.
a) Incorrect - portfolio management provides the means by which the link between strategy
and resource allocation can be maintained. Ref 3.4
b) Incorrect - Strategic Planning sets the context within which portfolio management
operates. Portfolio management provides the means by which the link between strategy
c) Incorrect - Portfolio Management should align with the organization’s performance
management system. Portfolio management provides the means by which the link
between strategy and resource allocation can be maintained. Ref 3.4, 3.6
d) Correct - portfolio management provides the means by which the link between strategy

A
LL2 - Identify how portfolio management can coordinate with project and programme
management to deliver strategic objectives.
a) Correct - this is a role for portfolio management. Ref 3.5
b) Incorrect - this role is appropriate to programme management. Ref 3.5
c) Incorrect - this is a role for programme management. Ref 3.5, 2.3.3
d) Incorrect - this is a role for programme and project management. Ref 3.5, 2.3.3, 2.3.5

B
LL2 - Identify how portfolio management can coordinate with performance management to
a) Incorrect - this is a way in which portfolio management should align with performance
management. Ref 3.6
b) Correct - performance and portfolio reporting schedules should be aligned in terms of
timing and content, not remain independent. Ref 3.6
c) Incorrect - this is a way in which portfolio management should align with performance
management. Ref 3.6
d) Incorrect - this is a way in which portfolio management should align with performance
management. Ref 3.6

7

D
LL2 - Identify how portfolio management can support effective corporate governance.
a) Incorrect – portfolio management supports effective corporate governance by providing a
basis for integrated assurance. Ref 3.7
b) Incorrect – portfolio governance needs to be consistent with the wider organizational
governance – but this doesn’t mean the latter should be amended to suit the former. Ref
4.4
c) Incorrect – responsibility for initiative implementation resides with project and
programme management. Ref 2.6
d) Correct - giving this clarity is one of the ways in which portfolio management supports
effective corporate governance. Ref 3.7

D
LL1 - Recall the names of the five principles upon which effective portfolio management is
based.
a) Incorrect – Benefits management is a portfolio delivery practice. Ref. 7.1
b) Incorrect - portfolio delivery is one of the two portfolio management cycles. Ref. 2.4.2
c) Incorrect - Understand is a portfolio definition practice. Ref. 2.4.2
d) Correct – Portfolio Office is one of the five portfolio management principles. Ref 2.4.1

A
LL2 - Identify the keys to success in relation to principle 1: senior management commitment.
a) Correct – this is one of the ‘keys to success’ of the ‘Senior management commitment’
principle – clearly defined roles, responsibilities and accountabilities. Ref. Table 4.1
b) Incorrect - the Portfolio Strategy should include a compelling vision so senior managers
can see how it relates to the organization's strategic objectives. Ref Table 4.1
c) Incorrect – the Management Board should make decisions concerning portfolio
prioritization. Ref Table 4.1
d) Incorrect - a member of the Management Board, such as Business Change Director,
must champion the implementation of portfolio management. Ref Table 4.1

8

C
LL2 - Identify the keys to success in relation to principle 2: governance alignment.
a) Incorrect – key roles should be recorded, but in the Portfolio Management Framework.
Ref. Table 4.2
b) Incorrect – there should be an agreed escalations process whereby variances beyond
tolerance are referred upwards. Ref. Table 4.2
c) Correct – this is one of the keys to success of the governance alignment principle –
aligned meeting schedules. Ref Table 4.2
d) Incorrect – there should be a shared understanding of the portfolio governance framework
among stakeholders. Ref. Table 4.2

B
LL2 - Identify the keys to success in relation to principle 3: Strategy alignment, and
specifically: approaches and techniques to align programmes and projects with organizational
strategy.
a) Incorrect – the public sector service value chain is appropriate to public sector
organizations. Ref 4.5
b) Correct – the service profit chain is an example of driver-based analysis that aids
strategic alignment. Ref. 4.5
c) Incorrect – governance alignment is a portfolio management principle rather than a
means to align initiatives with strategy. Ref 4.4
d) Incorrect – reference class forecasting is a technique by which more accurate initiative
forecasts can be obtained. Ref 7.2.2.2

A
LL2 - Identify the key services a Portfolio Office provides, the keys to success, and how it
differs from a programme or project office.
a) Correct - the Portfolio Office should report to the Management Board champion who may
or may not be the Finance Director e.g. there may be a Business Change or Portfolio
Director. Ref 4.6, Table 4.4
b) Incorrect – this is one of the keys to success of the Portfolio Office principle. Ref 4.6,
Table 4.4
c) Incorrect – this is one of the keys to success of the Portfolio Office principle. Ref 4.6,
Table 4.4
d) Incorrect – this is one of the keys to success of the Portfolio Office principle. Ref 4.6,
Table 4.4

9

C
LL2 - Identify the keys to success in relation to principle five: an energized change culture, and
specifically the sources of organizational energy.
a) Incorrect – ‘climate’ is described as: how the organization helps people to grow, achieve
their potential and do their best. Ref 5.5
b) Incorrect – ‘context’ is described as: working practices support and enable people to do
a good job.. Ref 5.5
c) Correct – this is the description of the ‘content’ source of organizational energy. Ref 5.5
d) Incorrect – ‘connection’ is described as: how people link themselves, their values and
their work to the purpose of the organization. Ref 5.5

A
LL1 - Recall the purpose of the portfolio definition cycle.
a) Correct - the question refers to the purpose of the portfolio definition cycle. Ref. 5.6.1
b) Incorrect - the purpose of the portfolio delivery cycle is to ensure the successful
implementation of the planned change initiatives as agreed in the Portfolio Strategy and
Delivery Plan, whilst also ensuring the portfolio adapts to changes in the strategic
objectives, project and programme delivery, and lessons learned. Ref. 5.7.1
c) Incorrect - the purpose of the ‘balance’ practice is to ensure the prioritized portfolio is
balanced in terms of factors such as timing, objective coverage, and overall risk:return
profile etc. Ref. 6.5.1
d) Incorrect - the purpose of the ‘organizational governance’ practice is to ensure clarity
about what decisions are made, where and when, and what criteria are used. Ref. 7.7.1

A
LL1 - Recall the purposes of the portfolio definition practices
a) Correct – this describes the purpose of the ‘prioritize’ practice. Ref 6.4.1
b) Incorrect – the purpose of the ‘understand’ practice is to obtain a clear view of what is in
the current portfolio and development pipeline, performance to date, and forecast costs,
benefits etc. Ref 6.2.1
c) Incorrect – ‘Management control’ is a portfolio delivery practice. Ref 7.1
d) Incorrect - the purpose of the ‘balance’ practice is to ensure that the portfolio is balanced
in terms of factors such as: timing; coverage of all strategic objectives; impact across
the business; stage of initiative development; overall risk:return profile; and available
resources. Ref 6.5.1

10

C
LL2 - Identify the results of a well functioning portfolio definition cycle and the implications
where this is not the case.
a) Incorrect - the key output of the portfolio definition cycle is an understanding of what the
portfolio is to deliver, encapsulated in a Portfolio Strategy and Delivery Plan. The
Portfolio Management Framework describes the governance framework adopted. Ref
5.6.1 and Appendix E
b) Incorrect - the key output of the portfolio definition cycle is an understanding of what the
Portfolio Benefits Management Framework describes the approach to managing benefits
across the portfolio. Ref 5.6.1 and Appendix E
c) Correct - the key output of the portfolio definition cycle is an understanding of what the
portfolio is to deliver, encapsulated in a Portfolio Strategy and Delivery Plan. Ref 5.6.1
d) Incorrect - the key output of the portfolio definition cycle is an understanding of what the
Portfolio Management Framework describes the governance framework whilst the
benefits management framework describes the approach to managing benefits across
the portfolio. Ref 5.6.1 and Appendix E

B
LL2 - Identify the technique of multi-criteria analysis.
a) Incorrect – ‘driver-based’ analysis aids assessment of strategic contribution by making
the implicit logic/value chain underpinning strategic objectives explicit. Ref 4.5
b) Correct – ‘multi-criteria’ analysis considers potential investments under the two main
headings of attractiveness and achievability. Ref. 6.4.2
c) Incorrect – NPV expresses future costs and benefits in current value terms. Ref. 6.4.2
d) Incorrect – payback represents how long it will take for the benefits of an investment to
exceed the accumulated costs. Ref 6.4.2

D
LL2 - Identify what is involved and the keys to success in the ‘understand’ practice.
a) Incorrect – SWOT analysis can inform an environmental scan, but ‘reference class’
forecasting relates to the ‘prioritize’ practice. Ref. 6.2.2, 6.4.2, 7.2.2.2
b) Incorrect – PESTLE analysis can inform an environmental scan, but the ‘champion-
challenger’ model is a technique for engaging stakeholders in the development of the
portfolio management practices. Ref. 6.2.2, 7.6.2
c) Incorrect – ‘Reference class’ forecasting relates to the ‘prioritize’ practice and the
‘champion-challenger’ model is a technique for engaging stakeholders in the
development of the portfolio management practices. Ref 6.4.2, 7.2.2.2, 7.6.2
d) Correct - SWOT analysis and PESTLE analysis can inform an environmental scan. Ref.
6.2.2

11

B
LL2 - Identify what is involved and the keys to success in the ‘categorize’ practice.
a) Incorrect – data by spend, not by risk, provides a high-level check that resource
allocation reflects relative organizational priorities. Ref. Table 6.3
b) Correct – this is one of the keys to success of the ‘categorize’ practice. Ref. Table 6.3
c) Incorrect – tailoring investment criteria to each portfolio category is one of the keys to
success of the ‘categorize’ practice. Ref. Table 6.3
d) Incorrect – categories chosen should be tailored to the organizational circumstances.
Ref Table 6.3

D
LL2 - Identify what is involved and the keys to success in the ‘prioritize’ practice.
a) Incorrect – Net present value is a monetary measure expressing the current value of
future costs and benefits. Ref 6.4.2
b) Incorrect – Payback is a time measure but the question concerns discounted cash
flows. Ref. 6.4.2
c) Incorrect – Internal rate of return is a percentage measure that represents the discount
rate that expresses future costs and benefits at a zero NPV. Ref. 6.4.2
d) Correct – discounted payback represents the period taken for benefits to exceed
accumulated costs in present value terms. Ref. 6.4.2

C
LL2 - Identify what is involved and the keys to success in the ‘balance’ practice.
a) Incorrect – the ‘balance’ practice occurs after prioritization. Ref 6.5, Table 6.8
b) Incorrect – Decision rules and investment criteria provide a guide to decision-making
which ultimately relies on senior management judgment. Ref 6.5, Table 6.8
c) Correct – presenting findings creatively using easy to understand graphical formats is a
key to success of the ‘balance’ practice. Ref 6.5, Table 6.8
d) Incorrect – balancing the portfolio is not achieved by the Portfolio Office working in
isolation, and approval of the results lies with the relevant portfolio governance body –
the Portfolio Direction Group / Investment Committee in a MoP environment. Ref 6.5,
Table 6.8

12

C
LL2 - Identify what is involved and the keys to success in the ‘plan’ practice.
a) Incorrect - the Portfolio Strategy and Delivery Plan can be combined into a single
document or can be prepared as separate documents. Ref. 6.6.2
b) Incorrect – The Portfolio Strategy and Delivery Plan will normally be updated on at least
an annual basis. Ref. 6.6.2
c) Correct - an objective of the ‘plan’ practice is to motivate people to commit to the
delivery of shared goals. Ref. 6.6.2
d) Incorrect – progress against the Portfolio Strategy and Delivery Plan is tracked via the
Portfolio Dashboard Report. Ref. 6.6.2

C
LL1 - Recall the purpose of the portfolio delivery cycle.
a) Incorrect – the scope of portfolio management includes portfolio definition as well as
portfolio delivery. Ref 2.4
b) Incorrect - the purpose of portfolio definition is to collate key information that will provide
clarity to senior management on the collection of change initiatives that will deliver the
greatest contribution to the strategic objectives, subject to consideration of
risk/achievability, resource constraints and cost/affordability. Ref. 5.6.1
c) Correct – this is the purpose of the portfolio delivery cycle. Ref 5.7.1
d) Incorrect – the purpose of the ‘plan’ practice is to collate information from the portfolio
definition cycle and create a Portfolio Strategy and Delivery Plan. Ref 6.6.1

B
LL1 – Recall the purposes of the portfolio delivery practices.
a) Incorrect – providing clarity about the make-up of the portfolio is part of the purpose of
the ‘categorize’ and ‘plan’ practices. Clarity about what criteria are used in coming to
decisions is one of the purposes of the ‘organizational governance’ practice. Ref 6.3.1
b) Correct – these are the purposes of the ‘organizational governance’ practice. Providing
clarity about the make-up of the portfolio is part of the purpose of the ‘categorize’
practice. Ref 7.7.1, 6.3.1
c) Incorrect – providing clarity about the make-up of the portfolio is part of the purpose of
the ‘categorize’ and ‘plan’ practices. Providing clarity about where decisions are made is
one of the purposes of the ‘organizational governance’ practice. Ref 7.7.1, 6.3.1
d) Incorrect – providing clarity about the make-up of the portfolio is part of the purpose of
the ‘categorize’ and ‘plan’ practices. Providing clarity about what decisions are made is
one of the purposes of the ‘organizational governance’ practice. Ref 7.7.1, 6.3.1

13

A
LL2 - Identify the results of a well-functioning portfolio delivery cycle.
a) Correct – this is a result of a well-functioning portfolio delivery cycle. Ref 5.7.2
b) Incorrect - providing clarity on the high-level scope etc of the portfolio is a consequence
of a well functioning portfolio definition cycle. Ref 5.6.2
c) Incorrect – one of the results of a well-functioning portfolio delivery cycle is that
resources will be reallocated when required. Ref 5.7.2
d) Incorrect - the results of a well-functioning portfolio delivery cycle do include greater
control over the portfolio – but this control is exercised by senior management not the
Portfolio Office. Ref 5.7.2

A
LL2 - Identify the ‘clear line of sight’ technique.
a) Correct - this is the ‘clear line of sight’ technique. Ref 7.2.2.3, Glossary
b) Incorrect - this is the ‘staged release of funding’ technique. Ref 7.2.2.4
c) Incorrect - this is the ‘one version of the truth’ technique. Ref 7.2.2.3
d) Referring variances from plan that exceed control limits to the portfolio governance body.

C
LL2 – Identify what is involved, the main elements, and keys to success of the ‘management
control’ practice.
a) Incorrect - this is a main element of the ‘stakeholder engagement’ practice. Ref 7.6.2
b) Incorrect - this is a key to success of the ‘organizational governance’ practice. Ref Table
7.9
c) Correct - this is a main element of the ‘management control’ practice. Ref 7.2.2
d) Incorrect - this is a key to success of the ‘prioritize’ practice. Ref Table 6.7

14

D
LL2 - Identify what is involved, the main elements, and keys to success of the ‘benefits
management’ practice.
a) Incorrect – ‘driver-based’ strategic contribution analysis aids strategic alignment by
making the implicit value/logic chain underpinning strategic objectives explicit. Ref 4.5
b) Incorrect – ‘multi-criteria’ analysis is applied to the ‘prioritize’ practice. Ref 6.4.2
c) Incorrect – the ‘champion-challenger’ model is a technique for engaging stakeholders in
the development of portfolio management practices. Ref 7.6.2
d) Correct – under ‘reference class’ forecasting, estimates are informed by the
organization’s track record or the experience of others. Ref 7.2.2.2

C
LL2 - Identify what is involved, the main elements, and keys to success of the ‘financial
a) Incorrect – the use of financial metrics such as NPV is recommended but this should be
augmented by ‘multi-criteria’ analysis that considers return in the context of risk. Ref
Table 6.7
b) Incorrect – each business case should include a financial plan. Ref 7.4.2
c) Correct – clear control limits for reporting variances from budget is one of the main
elements of the ‘financial management’ practice. Ref 7.4.2
d) Incorrect – portfolio management and financial management processes, including
reporting, should be aligned. Ref 7.4.2

B
LL2 - Identify what is involved, the main elements, and keys to success of the ‘risk
a) Incorrect – ‘decision conferencing’ may well consider risk but it is not a main element of
the ‘risk’ practice. Considering risk alongside return in the portfolio prioritization process
is a main element of the ‘risk management’ practice. Ref 6.4.2, 7.5.2
b) Correct – these are main elements of the ‘risk management’ practice. ‘Decision
conferencing’ may well consider risk but it is not a main element of the ‘risk
management’ practice. Ref 6.4.2, 7.5.2
c) Incorrect – ‘decision conferencing’ may well consider risk but it is not a main element of
the ‘risk management’ practice. Consideration of the level of financial contingency is a
main element of the ‘risk management’ practice. Ref 6.4.2, 7.5.2
d) Incorrect – ‘decision conferencing’ may well consider risk but decision it is not a main
element of the ‘risk management’ practice. Dependency management is a main element
of the ‘risk management’ practice. Ref 6.4.2, 7.5.2

15

A
LL2 - Identify what is involved, the main elements, and keys to success of the ‘stakeholder
engagement’ practice.
a) Correct - use of the ‘champion-challenger’ model is a main element of the ‘stakeholder
engagement’ practice. Ref 7.6.2
b) Incorrect – ‘multi-criteria’ analysis is a technique used as part of the ‘prioritize’ practice
in the portfolio definition cycle. Ref 6.4.2
c) Incorrect – ‘management by exception’ is a ‘management control’ technique. Ref 7.2.2.3
d) Incorrect – ‘staged release of funding’ is a ‘key to success’ of the ‘management control’
and ‘financial management’ practices. Ref Tables 7.2 and 7.5

A
LL2 – Identify what is involved, the main elements, and keys to success of the ‘organizational
governance’ practice.
a) Correct – These are all main elements of the ‘organizational governance’ practice. The
Portfolio Office should have no direct delivery responsibility. Ref 7.7.2
b) Incorrect - The Portfolio Office should have no direct delivery responsibility. Roles profiles
being prepared for key positions is a main element of the ‘organizational governance’
practice. Ref 7.7.2
c) Incorrect - The Portfolio Office should have no direct delivery responsibility. Agreed
escalation paths is a main element of the ‘organizational governance’ practice. Ref 7.7.2
d) Incorrect - The Portfolio Office should have no direct delivery responsibility. The Portfolio
Office being the guardian of the portfolio processes is a main element of the
‘organizational governance’ practice. Ref 7.7.2

D
LL2 - Identify the keys to success of the ‘resource management’ practice.
a) Incorrect - portfolio-level financial planning is a key to success of the ‘financial
management’ practice. Ref Table 7.5
b) Incorrect – effective dependency management is a main element of the ‘risk
management’ practice. Ref 7.5.2
c) Incorrect – risk-based prioritization is a key to success of the ‘risk management’
practice. Ref Table 7.7
d) Correct – Effective resource management is a dynamic process and this is a ‘key to
success’ of the ‘resource management’ practice. Ref Table 7.10

16

D
LL2 - Identify the challenges and solutions to effective dependency management.
a) Incorrect – this is an aggregated risk. Ref Table 7.7
b) Incorrect – this is a logistical dependency where joint calls are made on a limited
resource. Ref Table 7.6
c) Incorrect – this is an example of a generic risk. Ref Table 7.7
d) Correct – this is an example of a logical dependency. Ref Table 7.6

B
LL1 - Recall the purposes of the main portfolio management roles.
a) Incorrect - this is the purpose of the Portfolio Progress Group. Ref Appendix B
b) Correct - this is the purpose of the Portfolio Progress Group. Ref Appendix B
c) Incorrect - this is the purpose of the Portfolio Progress Group. Ref Appendix B
d) Incorrect - this is the purpose of the Portfolio Progress Group. Ref Appendix B

C
LL1 - Recall the purposes of the main portfolio management documentation.
a) Incorrect – The Portfolio Dashboard Report provides an overview of progress against
plan. The Portfolio Financial Plan provides the baseline against which to track and
compare actual spend. Ref Appendix E
b) Incorrect – The Portfolio Resource Schedule provides the baseline against which to
manage demand and supply for constrained resources. The Portfolio Financial Plan
provides the baseline against which to track and compare actual spend. Ref Appendix E
c) Correct – The Portfolio Financial Plan provides the baseline against which to track and
compare actual spend. Ref Appendix E
d) Incorrect – The Portfolio Benefits Realization Plan provides the baseline against which to
assess the benefits actually realized. The Portfolio Financial Plan provides the baseline
against which to track and compare actual spend. Ref Appendix E

17

C
LL2 - Identify the responsibilities of the main portfolio roles.
a) Incorrect - the purpose of the Portfolio Progress Group/Change Delivery Committee is to
monitor portfolio progress and resolve issues that may compromise delivery and benefits
realization. The Business Change Director is responsible for championing the
implementation of portfolio management. Ref Appendix B
b) Incorrect - the purpose of the Portfolio Manager is to coordinate the effective and efficient
operation of the portfolio management practices. The Business Change Director is
responsible for championing the implementation of portfolio management. Ref Appendix
B
c) Correct - the Business Change Director/Portfolio Director is responsible for championing
the implementation of portfolio management. Ref Appendix B
d) Incorrect - the purpose of the Portfolio Benefits Manager is to ensure that a consistent
‘fit for purpose’ approach to benefits management is applied across the portfolio. The
Business Change Director is responsible for championing the implementation of portfolio
management. Ref Appendix B

C
LL2 - Identify the recommended contents of the main portfolio management documentation.
a) Incorrect - the Portfolio Strategy includes the vision and longer-term objectives for the
portfolio. Ref Appendix E
b) Incorrect - the Portfolio Strategy includes the vision and longer-term objectives for the
c) Correct – the Portfolio Strategy includes the vision and longer-term objectives for the
d) Incorrect - the Portfolio Strategy includes the vision and longer-term objectives for the

MoP® Foundation – Students Orientation D
14 Appendix D – Practitioner - Sample Questions 1 and

Rational

MoP® Sample Papers
Terms of Use - The Official MoP Accreditor Sample Examination
Papers
Please note that by downloading and/or using this document, you have agreed accepted to comply
with the terms of use outlined below:
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• Reproduce or copy;
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with/to any third party.
4. If you wish to use the whole, or part, of any of this sample paper for any purpose other than self
study or reference, please contact AXELOS Accreditation Team (accreditation@axelos.com).
The Practitioner Examination
RX01
Scenario Booklet
This is a 3-hour objective test examination. This booklet contains the Portfolio
Scenario upon which this exam paper is based. All questions are contained within
the Question Booklet.
Additional information is provided within this Scenario Booklet for a number of

questions. Where reference should be made to additional information, this is
clearly stated within the question to which it is relevant. All information provided
within a question must only be applied to that question.
Each of the four questions is worth 20 marks, giving a maximum of 80 marks in the
paper. The pass mark is 50% (40 marks). Within each question the syllabus area
to which the question refers is clearly stated. The exam is to be taken with the
support of the MoP Guide only, i.e. no material other than the Question Booklet, the
Scenario Booklet, the Answer Booklet and the MoP Guide is to be used. You are
permitted to use a simple calculator in the exam.
Candidate Number: ........................................
MoP-GB--RX01-V1.6 Page 1 of 15 Document Owner - Chief Examiner

This is a blank page

Scenario
(The companies and people within the scenario are fictional)
Background
BigCo is a retail company with stores across the entire country.
The organization is structured into areas, with area managers reporting to two operational directors,
one for the North of the country and one for the South. The Corporate Board members are: the Chief
Executive Officer, the Chief Financial Officer, the two operational directors, the Director of Information
Technology (IT), the Director of Marketing, and the Director of Human Resources (HR). Additionally,
there are two non-executive directors.
The organization’s headquarters is based in Midtown where the central functions (Finance, Marketing,
IT, and HR) and the operational directors’ support teams are located.
BigCo’s vision is to be the market leader in its chosen markets by offering product and service quality
at competitive prices.
Recent performance has however been disappointing – it has been losing market share to
competitors and sales turnover has fallen. At the same time profit margins have become smaller as
costs have risen, and prices cannot be raised further because of market competition.
Strategic Review
As a result, the Chief Executive Officer commissioned a strategic review of the organization covering
market trends, its relative competitive position, and strategies to achieve its business objectives. This
review concluded that, although the market is relatively mature and predictable, the competitive
pressures are increasing. The organization needs to change radically if it is to survive and grow.
Specific issues identified by the strategic review include:
● BigCo has not made full use of the potential for on-line sales – competitors have grown such
sales to more than 25% of total business, whereas BigCo’s on-line sales remain below 10%
● Recent market research has indicated that among potential customers the company’s brand
image is weaker than those of its competitors
● Overhead costs have grown at the same time as sales turnover has fallen so profit margins and
overall profitability have declined
● Each directorate has focused on its own objectives rather than on their contribution to
corporate-level strategic objectives
● Staff, including those who deal with customers face-to-face, have insufficient knowledge about
the company’s products and how they compare with those of their competitors.
Key priorities for the business are to grow sales income (both in-store and on-line), whilst at the same
time bringing costs under control to protect and enhance profit margins. Additionally, cross-
organizational working to achieve corporate goals needs to improve. These objectives are relatively
stable and unlikely to change in the near to medium term.
Scenario continues on the next page

continued
Portfolio Management
Key to achieving this transformation in corporate performance and capacity is the organization’s
ability to manage its change initiatives efficiently and effectively. Unfortunately, the strategic review
found that the management of projects and programmes is in need of significant improvement. Issues
identified in relation to project, programme and portfolio management include:
● There has been no formal initiation process. As a result initiatives have been started without
considering their ‘fit’ with the strategic objectives or initiatives elsewhere in the organization.
There are concerns that BigCo is trying to deliver too many initiatives. Additionally there is little
corporate-level review unless initiatives go badly wrong. No defined ‘business change lifecycle’
is being used as a standard for initiatives of the same type, so there is no regular review of
delivery progress and continued business justification. Initiatives are not, therefore, sufficiently
monitored unless serious delivery issues or cost escalation result in Board-level interest. Even
then, BigCo has found it difficult to stop initiatives and re-allocate funding
● Whilst there is a small centre of excellence (CoE) that currently reports to the IT Director, project
resources sit mainly in each directorate. Where these are insufficient to meet demand, external
resources are acquired. The organization does not use a standard project and programme
management method, which results in inconsistent approaches, ineffective management of
dependencies, and inefficient use of resources. Competition from too many initiatives for
limited, shared, in-house resources, and inconsistent forecasting of demand for these
resources, has also been a serious problem. In some cases this has resulted in unplanned use
of expensive, external resources and in others has slowed delivery (and hence benefits
realization)
● Delivery delays and cost escalation are becoming routine but there are no statistics available to
measure these variances reliably
● In many cases the promised benefits do not appear to have been realized and the same errors
are repeated.
Actions Taken
After the strategic review, the IT and Marketing Directors were replaced. The Chief Executive Officer
also approved the recruitment of a Portfolio Director, who is to lead and co-ordinate the change
agenda. An individual with experience in transformational change delivery has recently been
appointed to this position. This Portfolio Director has declared that the organization will be adopting
portfolio management based on a MoP approach, with three primary objectives:
● Improve prioritization of available resources in support of corporate-level objectives

● Enable efficient and effective initiative delivery
● Optimize benefits realization.

continued
Other progress to date includes:
● Establishment of a Portfolio Office including the transfer of the CoE function from IT to the
Portfolio Office
● Setting-up of a Portfolio Investment Committee to decide which initiatives will be funded, to
monitor continued strategic alignment, and to approve the release of funding including following
relevant stage/phase gate review
● Establishment of a Portfolio Progress Group, which reports to the Investment Committee, to
monitor delivery progress and benefits realization.
A portfolio prioritization and delivery planning exercise covering the next 12 months has recently been
undertaken. The Portfolio Office has also started monitoring and reporting on delivery progress
against 30 initiatives included in BigCo’s portfolio of change initiatives. It has also started undertaking
post-implementation reviews on all completed initiatives.
End of Scenario

Question 2: Portfolio definition cycle - Additional Information
Additional Information for part-question 2A
In prioritizing the portfolio, BigCo has decided to adopt an approach which combines consideration of
potential initiatives in terms of:
● Forecast cost-benefit analysis as assessed by i) Net Present Value (NPV) using a 7% discount
rate which reflects the organization’s cost of capital, and ii) payback period
● A multi-criteria analysis (MCA) portfolio prioritization model.
The 5-year cost-benefit data for initiatives 1-5 is shown below. All numbers relate to £ sterling.
Initiative 1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Benefits 200,000 200,000 200,000 150,000 150,000
Costs 500,000
Annual net flow -500,000 200,000 200,000 200,000 150,000 150,000
Annual NPV -500,000 186,920 174,680 163,260 114,435 106,950
Cumulative net flow -500,000 -300,000 -100,000 100,000 250,000 400,000
Cumulative NPV -500,000 -313,080 -138,400 24,860 139,295 246,245

Benefits 50,000 150,000 150,000 100,000 100,000
Costs 200,000 50,000 50,000 50,000 50,000 50,000
Annual net flow -200,000 0 100,000 100,000 50,000 50,000
Annual NPV -200,000 0 87,340 81,630 38,145 35,650
Cumulative net flow -200,000 -200,000 -100,000 0 50,000 100,000
Cumulative NPV -200,000 -200,000 -112,660 -31,030 7,115 42,765

Benefits 100,000 100,000 100,000 100,000 100,000
Costs 150,000 25,000 25,000 25,000 25,000 25,000
Annual net flow -150,000 75,000 75,000 75,000 75,000 75,000
Annual NPV -150,000 70,095 65,505 61,223 57,218 53,475
Cumulative net flow -150,000 -75,000 0 75,000 150,000 225,000
Cumulative NPV -150,000 -79,905 -14,400 46,823 104,040 157,515
Additional information continues on the next page
Continued

Benefits 150,000 180,000 180,000 150,000 125,000
Costs 750,000 2,500 2,500 2,500 2,500 2,500
Annual net flow -750,000 147,500 177,500 177,500 147,500 122,500
Annual NPV -750,000 137,854 155,029 144,893 112,528 87,343
Cumulative net flow -750,000 -602,500 -425,000 -247,500 -100,000 22,500
Cumulative NPV -750,000 -612,147 -457,118 -312,225 -199,697 -112,355

Benefits 100,000 100,000 100,000 100,000 100,000
Costs 400,000
Annual net flow -400,000 100,000 100,000 100,000 100,000 100,000
Annual NPV -400,000 93,460 87,340 81,630 76,290 71,300
Cumulative net flow -400,000 -300,000 -200,000 -100,000 0 100,000
Cumulative NPV -400,000 -306,540 -219,200 -137,570 -61,280 10,020

Additional Information for part-question 2B
A multi-criteria analysis (MCA) portfolio prioritization model has been developed to inform Investment
Committee decisions about the composition of the portfolio. Using this model a weighted portfolio
prioritization score is calculated for each initiative. Initiatives are scored under two headings –
attractiveness and achievability.
1. Attractiveness is assessed using the following 2 weighted factors:
1. 5-year Net Present Value (NPV), weighting factor 2.5 - assessed by Finance after review of
the business case to ensure adherence to portfolio rules on valuing costs and benefits.
Initiatives are scored as follows:
a. More than £25 million - scores 10

b. £5 million-£25 million - scores 5
c. £0-£5 million - scores 1
2. Strategic contribution (Sc), weighting factor 2.5 - assessed by the average rating made by
Investment Committee members. This enables initiatives which have a relatively low NPV,
but which enable other initiatives, to have this contribution reflected in their prioritization
scores. Initiatives are scored as follows:
• Mission Critical - scores between 7 and 10

• Highly Desirable - scores between 4 and 6
• Desirable - scores between 1 and 3
2. Achievability is assessed using the following 3 weighted factors:
1. Confidence in initiative deliverability (Ciid), weighting factor 2.0 - assessed by the Senior
Responsible Owner (SRO). Initiatives are scored as follows:
• Very High - scores 9-10

• High - scores 7-8
• Medium - scores 5-6
• Low - scores 3-4
• Very Low - scores 1-2
2. Likelihood of benefits realization (Lobr), weighting factor 2.0 - assessed by the SRO.
Initiatives are scored as follows:
• High - scores 8-10

• Medium - scores 4-7
• Low - scores 1-3
Additional Information continues on the next page

continued
3. Payback period (Pp), weighting factor 1.0 - determined by Finance after reviewing the
business case. Those initiatives that pay back earlier are considered to be lower risk than
those that take longer to break even on the investment required. Initiatives are scored as
follows:
Payback in Year
• Year 1 - scores 10
This enables a score out of 100 to be calculated for each initiative. For example, initiative X’s
prioritization score would be calculated as follows:
Example calculation of portfolio prioritization score
Score Weighting Factor Weighted Score

5-year NPV 5 2.5 12.5
Strategic 8 2.5 20
contribution
Attractiveness Score 32.5
Confidence in 7 2 14
initiative
deliverability
Likelihood of 6 2 12
benefits realization
Payback period 4 1 4
Achievability Score 30.0
Portfolio prioritization score for initiative X 62.5
An extract from the latest portfolio prioritization assessment showing the unweighted scores and
financial data for initiatives 6-10 is outlined below:
Initiative Initiative Initiative Initiative Initiative

6 7 8 9 10
5-year NPV £4 million £12 million £26.5 million £15 million £24.5 million
Strategic See below See below See below See below See below
contribution
Confidence in 9 7 6 6 8
initiative
deliverability
Likelihood of 8 6 5 5 7
benefits
realization
Payback Year 4 Year 5 Year 2 Year 4 Year 3
period
Ratings by the Investment Committee members for strategic contribution were as follows:

Investment Scores for Scores for Scores for Scores for Scores for
Committee initiative initiative initiative initiative initiative
member 6 7 8 9 10
1 8 5 8 4 10
2 7 7 8 6 8
3 6 7 9 5 9
4 7 5 7 6 10
5 7 6 8 4 8

Additional Information for part-question 2D
The Portfolio Director has agreed with the Investment Committee that the portfolio will be split into the
following segments:
Segment Description
Strategic Initiatives critical to achieving the planned business
strategy with a clear, significant and realistically
achievable contribution to the strategic objectives.
This includes initiatives affecting the ‘service profit
chain’ in a positive manner.
Innovative Initiatives with a high degree of uncertainty as to
final outcome, but which offer potentially significant
returns.
Maintenance Initiatives designed in response to a legal or
regulatory requirement, or to maintain business as
usual.
Enabling Initiatives with no, or uncertain, direct positive
impact on profitability or strategic objectives, but
which are necessary for other initiatives which have
such an impact. Also those which enable staff
resources to be re-assigned to other value-adding
activities.
Efficiency Initiatives that will realize direct savings in current
and planned operational costs.
The purpose of segmenting the portfolio in this way is to inform the Investment Committee’s decisions
on portfolio prioritization and balancing.
Further details on selected initiatives are outlined below:
Initiative 11 - replacement of existing HR and Finance IT systems to save the time staff spend
inputting and analysing data. The time saved will be re-allocated to address other current
business priorities.
Initiative 12 - review of the scope for expansion into overseas markets, potentially via an
overseas acquisition or joint venture.
Initiative 13 - introduction of video conferencing facilities at HQ and regional offices, resulting

in savings in travel expenses.
Initiative 14 - launch of a revised customer service staff training programme to address the
current, relatively low, levels of customer satisfaction with the support and advice provided.

continued
Initiative 15 - introduction of a new IT management information system (MIS) including the
option to report against a balanced scorecard. This will facilitate another initiative which will
re-design the performance management system to align it with the strategic objectives and
so improve decision-making and resource allocation.
Initiative 16 - website re-design and an updated on-line sales facility that is designed to be
more customer-friendly and provide increased sales on-line.
Where an initiative has features applicable to more than one segment, the primary investment
rationale or most significant benefits, determine to which segment the initiative is allocated to.

Question 3: Portfolio delivery cycle - Additional Information
Additional Information for part-questions 3B&C
A major strategic objective for BigCo is to increase its on-line sales to at least 25% of its total sales
whilst, at the same time, maintaining the existing levels of sales through its retail outlets. Interim
targets have been set for the six-month periods up to June and December over the next three years.
To achieve this objective, the Investment Committee has decided to include the following initiatives
within its portfolio:
Initiative Description
14 Customer service training programme to address relatively low levels
of customer satisfaction with the support and advice provided. This
training will be designed to respond to issues identified by the
customer satisfaction assessment programme and will be developed
and delivered by PJN Marketing Consultants.
16 Re-design and update of the website to be more customer-friendly,
and with direct sales facilities designed to increase on-line sales. The
user experience design will be developed by PJN Marketing
Consultants based on the new corporate identity and branding, and
details of the improved logistivs and stock control system. The new
website will then be developed by internal IT resources.
17 Improved logistics and stock control systems to enable efficient
fulfilment of orders from retail outlets and from on-line sales. This will be
designed and developed using internal IT resources.
18 Refresh of BigCo’s corporate identity and branding to revitalize its
image as a modern retailer. PJN Marketing Consultants have been
engaged to undertake this refresh on behalf of the Marketing Director.
19 Customer satisfaction assessment programme to better understand
customer perceptions of service delivery and to identify those areas of
customer service that are in greatest need of improvement. The
Marketing Director has also decided to engage PJN Marketing
Consultants to undertake the initial research for this programme and
then design an on-going customer satisfaction survey. The IT system to
analyse and report the results of this research will be developed and
maintained by internal IT resources.
The main resources for which supply is limited, and which may therefore affect delivery of these
initiatives, are the internal IT resources and the availability of funding to meet the costs of external
consultancy support. Allocation of these resources will be prioritized to those initiatives upon which
other initiatives depend.

Question 4: Roles and documentation - Additional Information
Extract from the Portfolio Benefits Management Framework
(All entries are true statements but may not be shown under the correct heading or in the correct
document.)
Section A: Outline of the high-level benefits which the portfolio is designed to achieve and
the metrics to be used to assess their realization.
1. Growth in store-based sales income will be measured in percentage increase in gross

turnover.
2. Improvements in cross-organizational working will be measured in percentage of projects
delivered on time.
Section B: Benefits eligibility guidance – the detailed rules on the identification,
classification, quantification, valuation and validation of benefits.
3. Cost-control benefits will be measured in overhead costs/sales turnover.

4. The benefits section of each initiative's business case should include financial and non-financial
benefits.
Section C: Treatment of benefits throughout the ‘business change lifecycle’ – from business
case, through stage/phase gates and portfolio-level reviews, to post- implementation review.
5. Head-count reduction benefits can only be claimed for whole person savings. Part- person
savings will be claimed at the portfolio-level.
6. Non-financial benefits should be expressed against contribution to specific corporate
objectives.
Section D: Definition of roles and responsibilities for benefits forecasting, tracking and
reporting.
7. No initiatives will be authorized without a formal business case.

8. Each initiative should identify an individual who is accountable for reporting benefit progress
via the Portfolio Office.
9. All initiatives should carry out a formal post-implementation review of all benefits.
10. The IT and Marketing Directors have been categorised as 'key influencers'.

Additional Information for part-question 4E
Extract from the Portfolio Dashboard Report for Month 10
Management & control Delivery

Initiative ID This Last This Last Notes
month month month month
Initiative 1 Amber Amber Amber Amber Now likely that
deliverable required by
initiative 4 will be
delayed by at least
three months.
Initiative 2 Green Amber Green Green Benefits from stage one
starting to be seen in
business units.
Initiative 3 Green Green Green Green Phase gate review is
scheduled for month 12,
to assess performance
and seek funding for
next phase.
Initiative 4 Red Amber Amber Red Critical technical issues
identified in month 6
have not yet been
addressed. Now
outside of budget
tolerance on original
estimate.
Initiative 5 Red Amber Red Red Priority of this initiative
has been downgraded
to ‘low’ this month
following a review of the
portfolio. As a result,
some technical
resource has been re-
allocated to higher
priority initiatives.
Notes
‘Management and control’ assessment refers to how well the initiative is being managed.
‘Delivery’ assessment refers to actual performance of the initiative against its delivery schedule and in
terms of benefits realization.

RX01
Question Booklet


Syllabus areas covered:
Question 1 - Implement, sustain and measure
Question 2 - Portfolio definition cycle
Question 3 - Portfolio delivery cycle
Question 4 - Roles and documentation

Question Number 1
Syllabus Area Implement, sustain and measure
Syllabus Area Question Number Part Marks

Implement, sustain and measure 1 A 5
Answer the following question about the sources of organizational energy.
Column 1 is a list of initiatives being considered to engage the sources of organizational energy. For each initiative
in Column 1 select from Column 2 the relevant source of organizational energy. A selection from Column 2 may be
used once, more than once or not at all.
Column 1 Column 2
1 A review and recognition of staff performance and the introduction of staff development and A Connection
training programmes.
B Content
2 A review of the project management processes used by the centre of excellence and the
implementation of appropriate standards within the newly formed Portfolio Office. C Context
3 A review and alignment of the Corporate Board members’ performance objectives with the D Climate
organization’s strategic objectives.
4 Replacement of existing outdated HR and Finance IT systems.
5 A series of workshops, delivered by Corporate Board members, to communicate the
strategy and purpose of the portfolio, emphasising how everyone is needed to contribute to
its success.

Implement, sustain and measure 1 B 5
Answer the following question about the organizational energy states.
Column 1 is a list of observations of current behaviour within the organization. For each observation in Column 1
select from Column 2 the organizational energy state being exhibited. A selection from Column 2 may be used
once, more than once or not at all.
Column 1 Column 2
1 Although the company brand is weaker than its competitors, staff members are content that A Productive
the market and current customers are relatively mature and predictable.
B Comfortable
2 Staff members believe that any new initiative will be short-lived and replaced before it is
implemented, so they don’t get involved. C Resigned
3 The previous IT director believed that the organization’s strategic objectives should be D Corrosive
driven by advancements in IT and opposed any alternatives presented by other Corporate
Board members.
4 The centre of excellence has been trying to implement project management processes
based on a standardized approach, providing templates and guidance wherever possible.
5 Project managers are aware that the project management processes are in need of
significant improvement, but they have not done anything about it because previous
contributions have been ignored.

Implement, sustain and measure 1 C 4
Using the Scenario, answer the following questions.
Decide if each of the following actions and observations are an appropriate application of portfolio management
for this scenario and select the option that supports your decision.
1 As a first step, the Portfolio Director has commissioned the centre of excellence to prepare a business case,
blueprint, and implementation plan for the adoption of portfolio management to the organization’s change
initiatives.
Is this an appropriate application of portfolio management for this scenario?

A No, because the current portfolio of change initiatives are better suited to an ‘ad hoc’ approach to the
implementation of portfolio management.
B No, because portfolio management governance should first be aligned with the wider organizational
governance structure in a Portfolio Management Framework.
C Yes, because the organization’s change initiatives need to be prioritized.
D Yes, because the implementation of portfolio management is being viewed as a business change
programme in its own right.
2
The Portfolio Director has introduced a range of initiatives designed to engage staff through a ‘Ways of
Working’ cultural change programme, part of which is to ensure the business change lifecycle is implemented
effectively.
A No, because the business change lifecycle should be described in the Portfolio Benefits Management
Framework.
B No, because the Portfolio Manager should keep the Portfolio Management Framework up to date.
C Yes, because clear processes will help people to work more effectively.
D Yes, because this should help to move people to a more comfortable energy state.
Question continues on the next page

Question continued
3 The Chief Executive Officer has requested that the new IT and Marketing directors should sit on either the
Portfolio Investment Committee or the Portfolio Progress Group, with the Portfolio Director sitting on both of
them.

A No, because a single portfolio governance body should be established reporting to the Corporate Board.
B No, because organizational governance and portfolio management governance should be kept independent
of one another.
C Yes, because organizational governance and portfolio management governance structures should be the
same.
D Yes, because it demonstrates senior management commitment to the success of the portfolio and the
portfolio management practices.
4 The Portfolio Office has accepted and implemented a suggestion from the new IT Director to increase the
strategic contribution weighting for all IT initiatives.

A No, because it is the Portfolio Manager’s responsibility to identify any improvements to the portfolio
management practices.
B No, because everyone should agree to adhere to the current processes until a suggestion has been
reviewed and approved by the appropriate authority.
C Yes, because the Portfolio Office should review progress regularly, and adapt its activities and the portfolio
management processes accordingly.
D Yes, because the Portfolio Office should provide a ‘challenge’ or ‘critical-friend’ role for individual initiatives.

Implement, sustain and measure 1 D 6
Using the Scenario, answer the following question.
Each line in the table below consists of an assertion statement and a reason statement. For each line identify the
appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.
Selection Assertion Reason
A True True AND the reason explains the assertion
B True True BUT the reason does not explain the assertion
C True False
D False True
E False False
Assertion Reason
1 It is appropriate that the Chief Financial Officer be a BECAUSE In determining the scope of the portfolio,
member of the Portfolio Investment Committee. the Investment Committee needs to
understand whether it is achievable.
2 The newly-formed Portfolio Office should report BECAUSE The Portfolio Office approves changes to
directly to the Portfolio Director. the practices within the portfolio definition
cycle.
3 The Portfolio Office only needs to consider the impact BECAUSE Programme and project offices assist with
of initiatives that contribute to the three primary delivery of individual change initiatives.
objectives of BigCo adopting portfolio management.
4 A role profile for the newly-appointed Portfolio BECAUSE The Portfolio Manager keeps the Portfolio
Director should be included in the Portfolio Management Framework up-to-date.
Management Framework.
5 To enable efficient and effective initiative delivery, the BECAUSE A Portfolio Benefits Manager should
Portfolio Director should temporarily stop all existing review the business case for each
projects and programmes. initiative being considered for the
portfolio.
6 The newly-formed Portfolio Office should deliver and BECAUSE A Portfolio Office is responsible for
complete the existing initiatives inherited from the ensuring that all initiatives are delivered
centre of excellence. according to plan.

Question Number 2
Syllabus Area Portfolio definition cycle

Portfolio definition cycle 2 A 5
Using the additional information provided for this question in the Scenario Booklet, answer the
following question.
Column 1 is a list of statements referring to the forecast financial data of individual initiatives. For each statement in
Column 1 select from Column 2 the initiative to which the statement refers. A selection from Column 2 may be used
Column 1 Column 2
1 The initiative that offers the most beneficial Net Present Value (NPV) over 5 years. A Initiative 1
2 The initiative that offers the most beneficial NPV over 3 years. B Initiative 2
3 The initiative that breaks even in year 4 in discounted terms. C Initiative 3
4 The initiative with the quickest payback in undiscounted terms. D Initiative 4
5 The initiative that breaks even in discounted and undiscounted terms in the same E Initiative 5
year.

Portfolio definition cycle 2 B 5
Using the Scenario and the additional information provided for this question in the Scenario Booklet,
answer the following question.
Column 1 is a list of descriptions of the portfolio prioritization scores for individual initiatives. For each description
in Column 1 select from Column 2 the initiative to which it applies. A selection from Column 2 may be used once,
more than once or not at all.
Column 1 Column 2
1 The initiative with the lowest 'weighted portfolio prioritization' score. A Initiative 6
2 The initiative with the highest 'weighted attractiveness' score. B Initiative 7
3 The initiative with the highest 'weighted achievability' score. C Initiative 8
4 The initiative with the lowest 'weighted attractiveness' score. D Initiative 9
5 The initiative with the highest 'weighted portfolio prioritization' score. E Initiative 10

Portfolio definition cycle 2 C 1
Using the Scenario, answer the following question about the portfolio definition cycle.
1 A ‘top down’ approach to portfolio management is proposed.
Is this an appropriate approach for this portfolio?

A No, because strategy will develop and alter significantly in response to environmental change.
B No, because the strategic objectives are well-defined and relatively stable.
C Yes, because the strategic objectives are well-defined and relatively stable.
D Yes, because the organization is operating in a highly dynamic environment.

Portfolio definition cycle 2 D 6
Using the additional information provided for this question in the Scenario Booklet, answer the
following questions.
1 Initiative 11 has been classified in the ‘Efficiency’ segment.
Is this appropriate for this portfolio?

A No, because the initiative will deliver savings in staff time.
B No, because there are no direct savings in operational costs.
C Yes, because the initiative will deliver savings in staff time.
D Yes, because there are direct savings in operational costs.
2 Initiative 12 has been classified in the ‘Strategic’ segment.

A No, because there is a high degree of uncertainty as to the final outcome.
B No, because overseas expansion will improve turnover and profitability.
C Yes, because overseas expansion will improve turnover and profitability.
D Yes, because there is a high degree of uncertainty as to the final outcome.
3 Initiative 13 has been classified in the ‘Efficiency’ segment.

A No, because there is a high degree of uncertainty as to the final outcome.
B No, because time savings will enable a contribution to strategic objectives.
C Yes, because there are direct savings in travel expenses.
D Yes, because there will be savings in time spent travelling.

Question continued
4 Initiative 14 has been classified in the ‘Strategic’ segment.

A No, because there is no direct relationship between customer satisfaction and improved sales turnover.
B No, because there is a direct relationship between customer satisfaction and improved sales turnover.
C Yes, because there is no direct relationship between customer satisfaction and improved sales turnover.
D Yes, because there is a direct relationship between customer satisfaction and improved sales turnover.
5 Initiative 15 has been classified in the ‘Enabling’ segment.

A No, because an improved MIS will have an uncertain direct impact on the strategic objectives.
B No, because an improved MIS will have a direct impact on the strategic objectives.
C Yes, because an improved MIS will have a direct impact on the strategic objectives.
D Yes, because an improved MIS will have an uncertain direct impact on the strategic objectives.
6 Initiative 16 has been classified in the ‘Maintenance’ segment.

A No, because a significant contribution to strategic objectives is anticipated.
B No, because it is designed to maintain business as usual.
C Yes, because a significant contribution to strategic objectives is anticipated.
D Yes, because it is designed to maintain business as usual.

Portfolio definition cycle 2 E 3
Answer the following question.

Each line in the table below consists of an assertion statement and a reason statement. For each line select the
C True False
D False True
E False False
Assertion Reason
1 The Portfolio Office should collect 'reference class' BECAUSE Basing forecasts on ‘reference class’ data
data as part of the post-implementation reviews. can improve portfolio prioritization.
2 ‘Driver-based’ analysis of the ‘service profit chain’ BECAUSE ‘Driver-based’ analysis identifies the
can aid the alignment of the portfolio with strategic benefits of individual initiatives.
objectives.
3 ‘PESTLE’ analysis should be used by the Portfolio BECAUSE ‘PESTLE’ analysis can be used for
Office to inform BigCo’s portfolio prioritization. undertaking an environmental analysis at a
strategic level.

Question Number 3
Syllabus Area Portfolio delivery cycle

Portfolio delivery cycle 3 A 6
Answer the following question about the financial management practice.
Column 1 is a list of true statements about the BigCo portfolio. Column 2 is a selection of the MoP financial
management ‘keys to success’. For each statement in Column 1, decide if it demonstrates a financial
management 'key to success' and select the appropriate answer from Column 2. A selection from Column 2 may
be used once, more than once or not at all.
Column 1 Column 2
1 A new programme to revise the BigCo marketing strategy has A This does NOT demonstrate one of the
been commissioned, and resources have been allocated for the financial management ‘keys to success’
first phase only.
B Involve financial experts
2 The Chief Executive Officer of BigCo will present the impact of
the portfolio on the financial accounts to the annual shareholders C Align cycles
meeting. D Business cases include financial plans
3 New guidelines have been issued on how to calculate completed on a consistent basis
depreciation on capital costs when assessing the viability of E Staged release of funding
proposed change initiatives.
F Portfolio-level financial planning
4 The timing of returns from initiatives for the Portfolio Dashboard
Report is the same as the timing for returns for the monthly G Regular reporting of progress
budget reports.
5 The Portfolio Office has introduced monthly reporting of spend
against budget.
6 BigCo has purchased a software package to ensure consistent
financial evaluation of risks is applied across all initiatives.

Portfolio delivery cycle 3 B 4
answer the following questions about the risk management practice.
Each question includes only true statements about the BigCo initiatives.
1 Which statement should be included in the portfolio risk management strategy?
A Many of the initiatives are dependent on resources being made available from the internal IT directorate.
B As BigCo’s competitors are very successful in on-line sales, there is a risk that only existing BigCo
customers will make use of the redesigned sales website. This means that the target to increase overall
sales will not be achieved.
C A contingency budget of 5% of the total portfolio budget this year is to be set aside to allow for the costs
relating to any unforeseen risks.
D The Portfolio Progress Group should escalate to the Portfolio Investment Committee all risks that are
assessed as having a greater than 50% probability of resulting in a major disruption to BigCo’s retail
activities.
2 Which risk is MOST likely to be recorded in the portfolio risks and issues register?
A As BigCo have maintained the same branding for more than thirty years, there is a risk that the new
corporate identity will result in lower levels of customer recognition. This means that greater marketing spend
will be required on advertising for this initiative to rebuild recognition levels.
B Due to the current lack of product knowledge amongst customer service staff, there is a risk that the amount
of training time will be greater than anticipated. This means that more temporary staff will need to be
employed to cover staff on training.
C Since PJN Marketing Associates have been engaged to undertake a wide range of marketing activities,
there is a risk that they will be unable to fulfil all of their commitments, which will mean that the portfolio will fail
to deliver the forecast benefits.
D As PJN Marketing Associates are new to the field of user-experience design, there is a risk that their design
work will be delayed, which will mean that additional resources will be required to maintain the schedule for
this initiative.

Question continued
3 Which dependency should be documented by the Portfolio Office?
A The initiative to refresh BigCo’s corporate identity and branding is dependent on PJN Marketing Associates
developing proposals for the refresh.
B The customer service training programme is dependent on the customer satisfaction assessment
programme identifying areas of customer service that are in greatest need of improvement.
C The increased efficiency of fulfilling orders from retail outlets and on-line sales is dependent on improving the
logistics and stock control systems.
D The internal IT resources are dependent on PJN Marketing Associates developing the user experience
design before they can develop the new website.
4 Which is NOT an appropriate way of providing visibility of dependencies between BigCo’s initiatives at
portfolio-level?
A All of the inter-initiative dependencies should be shown on a matrix, with the portfolio initiatives listed on
each axis of the matrix and the dependency recorded at the intersection of the two initiatives.
B The programme schedule for the website re-design initiative should record its dependency on the improved
logistics and stock control systems initiative.
C The dependency between the initiative to refresh BigCo’s corporate identity and branding and the website
redesign initiative should be shown as part of the portfolio schedule.
D The dependency between the customer service training programme and the customer satisfaction
assessment programme should be recorded as a risk.

Portfolio delivery cycle 3 C 6
answer the following question about the resource management practice.

C True False
D False True
E False False
Assertion Reason
1 One priority will be the development of BECAUSE Resource forecasting standards help initiative planners
resource forecasting standards. to produce more consistent forecasts of resource
requirements.
2 Before the launch of any customer BECAUSE An organization’s capacity to absorb business change
service training, BigCo will need to is a type of limited resource.
assess its capacity to absorb this
change.
3 Having added initiatives 14, 16, 17, 18 BECAUSE The Portfolio Financial Plan provides a baseline
and 19 to the portfolio, the Portfolio against which to manage demand and supply of limited
Office should update the Portfolio resources.
Financial Plan.
4 The Portfolio Office will align the Portfolio BECAUSE The Portfolio Office should compile a Portfolio
Financial Plan with the Portfolio Resource Schedule based on the Portfolio Financial
Resource Schedule. Plan and their understanding of available resources
within the organization.
5 The Portfolio Office should recommend BECAUSE The most highly prioritized initiatives should be given
that the available IT resources be priority access to the limited resources.
allocated to initiatives 14 and 16.
6 The Portfolio Office should lead a review BECAUSE A good time to review resource requirements is at six-
of resource requirements across the monthly intervals.
portfolio during December and June.

Portfolio delivery cycle 3 D 4
Using the Scenario, answer the following questions about the management control practice.
The newly formed Portfolio Office has taken a number of actions in order to establish an effective monitoring and
reporting regime. Decide whether the actions taken represent an appropriate application of MoP for this scenario
and select the response that supports your decision.
1 The Portfolio Office has developed a standard reporting template and the Portfolio Progress Group has
instructed all initiatives to use this when designing their own reporting schedules.
Is this an appropriate use of MoP for this scenario?

A No, because for there to be ‘one version of the truth’ all reporting should be via a documented route and
according to an agreed schedule.
B No, because it is the responsibility of the Portfolio Manager to prepare regular Portfolio Dashboard
Reports based on the initiatives’ progress reports.
C Yes, because having a standard reporting template on it's own will enable ‘one version of the truth’ to be
established.
D Yes, because it is the responsibility of the Portfolio Office to prepare regular Portfolio Dashboard Reports
based on the initiatives’ progress reports.
2 The Portfolio Office has designed a standard ‘business change lifecycle’ to be used by all change initiatives
within BigCo.

A No, because each change initiative should design its own ‘business change lifecycle’.
B No, because having a single ‘business change lifecycle’ would create a bureaucratic process that would
stifle individual programmes and projects.
C Yes, because BigCo does not have any existing ‘business change lifecycle’, and such a framework is
central to establishing management control.
D Yes, because it is an essential element of management control for there to be one centrally managed
‘business change lifecycle’ with no deviations.

Question continued
3 Having designed the ‘business change lifecycle’, the Portfolio Office has started to roll out a training programme
which is being used to introduce the use of a ‘champion-challenger’ model.

A No, because if the Portfolio Office provides advice and guidance through training, this is likely to
compromise their independence from the delivery functions within BigCo.
B No, because having designed the ‘business change lifecycle’ it is important that this is adopted across
BigCo without any further challenge.
C Yes, because delivery staff members need to understand that the Portfolio Office will operate as the
champion for this process and challenge delivery teams to ensure that they follow it.
D Yes, because delivery staff members need to understand that they are encouraged to recommend
improvements to the ‘business change lifecycle’.
4 The Portfolio Office has developed standards for the creation and maintenance of business cases. These
standards incorporate a summary business case template, and require the adjustment of forecasts for
‘optimism bias’.

A No, because using a business case template means there is no need to adjust forecasts for ‘optimism bias’.
B No, because adopting the ‘reference class’ forecasting approach is a far better approach to overcoming the
current problems of inaccurate forecasting experienced by BigCo.
C Yes, because putting in place business case standards will enable initiatives to be more easily compared in
terms of their attractiveness, achievability and affordability, based on more reliable information.
D Yes, because a common problem with forecasts is for the costs and timescales to be overestimated and
benefits to be underestimated.

Question Number 4
Syllabus Area Roles and documentation

Roles and documentation 4 A 5
Answer the following questions about the Portfolio Delivery Plan.
Each question provides a list of true statements about BigCo, but only 2 statements are appropriate entries for
that section of the Portfolio Delivery Plan.
Remember to limit your answers to 2 in each question.
1 Which 2 statements should appear in the portfolio financial plan section?
A The budget for portfolio operating expenditure this year is £8 million.

B Non-cashable efficiency savings of £1 million are planned to be realized this year.
C The Finance directorate budget for this year is £200,000.

D The budget for the portfolio over the next 3 years is £60 million.
E The budget for portfolio capital expenditure this year is £10 million.
2 Which 2 statements should appear in the key dependencies section?
A Realization of forecast benefits from the portfolio is dependent on accurate forecasting and so BigCo is
adopting ‘reference class’ forecasting.
B Initiative 21 will deliver a management information system capability that is required as an input for initiatives
24 and 26.
C The Portfolio Office will host a workshop in month 1 to identify key dependencies.
D Demand from several initiatives for test facilities in month 6 exceeds current capacity calling
for re-scheduling or expansion of capacity for those initiatives.
E Mitigating the risk of cost escalation is dependent on effective budgetary control.

Question continued
3 Which 2 statements should appear in the portfolio benefits realization plan section?
A BigCo will achieve a level 2 P3M3 rating by the end of the year.
B Efficiency benefits should be validated with the Finance directorate prior to investment.
C Operating costs in the central functions will reduce by 5% by the end of quarter 3 compared with the baseline
at the start of quarter 1.
D A post-implementation benefits evaluation on initiative 28 will be undertaken in quarter 2.
E Brand awareness ratings will improve by 5% by the end of quarter 2.

4 Which 2 statements should appear in the key risks mitigation action plan section?
A The BigCo portfolio is over-reliant on supplier Y, so different suppliers will be considered for future initiatives.
B A portfolio risk strategy is to be agreed by the end of quarter 2.

C Over-confidence leads to unreliable forecasts, so initiative estimates will be adjusted for ‘optimism bias’.
D The scheduled delivery of initiative 22 would be delayed if the systems testing facilities required in month 4
are unavailable, so the required facilities will be reserved for initiative 22.
E The risk of initiative 23 has been assessed as high impact, medium probability, and so will be kept under
close management review.
5 Which 2 statements should appear in the high level resource plan/schedule section?
A Demand for systems test facilities will exceed current availability in months 8 and 11.
B Two additional staff members will be recruited to the Portfolio Office by the end of quarter 1.
C Resource requirements on initiative 25 include access to system test facilities in month 6.
D Financial resources planned to be spent on portfolio initiatives in month 6 are £2.5 million.
E The monthly total of project staff required by the portfolio is 24, which exceeds current availability in months 2
and 6.

Roles and documentation 4 B 3
Answer the following questions about the Portfolio Stakeholder Engagement and Communication Plan.
Each question provides a list of true statements about the BigCo portfolio, but only 2 statements are appropriate
entries for that section of the Portfolio Stakeholder Engagement and Communication Plan.

1 Which 2 statements should be recorded within the objectives section?
A To ensure customer service staff needs are fully understood, by engaging staff representatives in the design
of relevant initiatives.
B To provide a framework for co-ordinated and consistent communications across the BigCo portfolio.
C To be the market leader in its chosen markets by differentiating itself on the basis of product and service
quality at competitive prices.
D To grow on-line sales to represent at least 25% of total sales within two years.
E To engage the Corporate Board by explaining what is required of them and how portfolio management will
contribute to both corporate and directorate performance objectives.
2 Which 2 statements should be recorded within the key stakeholder groups section?
A The Portfolio Office is responsible for co-ordinating the reporting of portfolio progress to the BigCo Portfolio
Investment Committee and Portfolio Progress Group.
B Programme and project staff are keen to know how portfolio management will affect their working practices,
and their participation is crucial to successful implementation.
C A PPM forum will be used to engage the project and programme management community.
D Corporate Board members are very interested in the portfolio given the Chief Executive Officer’s
commitment, and their engagement is essential to its success.
E A regular newsletter will be established to keep customer service staff informed of portfolio progress.
3 Which 2 statements should be recorded within the media to be used section?
A The Portfolio Progress Group will ensure consistency of messages on delivery progress across all media.
B The Portfolio Office will work closely with BigCo’s communication team within Human Resources to establish
appropriate forms of communication for the various portfolio stakeholder groups.
C For customer service staff, a Twitter account will be set up and staff will be encouraged to follow this account
to hear the latest news about the portfolio of initiatives affecting them.
D The Marketing directorate will be asked to provide an expert on internal marketing to help implement the
Portfolio Stakeholder Engagement and Communication Plan.
E The Corporate Board members will be provided with a monthly progress report, and, at each quarterly board
meeting, the Portfolio Director will provide an in-depth progress update.

Roles and documentation 4 C 2
Using the Scenario, answer the following questions about portfolio management roles.
Each question provides a list of responsibilities within the stakeholder engagement practice for the portfolio.
1 Which is an appropriate responsibility for the Portfolio Director in a MoP environment?
A Appearing in quarterly videos for the BigCo intranet site to share with all staff the progress being made with
the introduction of portfolio management.
B Leading the preparation of BigCo’s Portfolio Stakeholder Engagement and Communication Plan to
demonstrate commitment to portfolio level stakeholder engagement.
C Approving the portfolio progress information for inclusion in the monthly internal newsletter to staff.
D Approving BigCo’s Portfolio Stakeholder Engagement and Communication Plan to ensure that BigCo’s
stakeholders’ are identified and that they are actively engaged with the management of the portfolio.
2 Which is an appropriate responsibility for the Portfolio Manager in a MoP environment?
A Leading awareness training sessions for senior and middle managers about how the Portfolio Benefits
Management Framework is being applied within BigCo.
B Promoting and supporting the cultural changes necessary so that each directorate is focussed on BigCo as
a whole rather than on achieving its own objectives.
C Running an internal campaign to generate ideas from BigCo staff for ways in which stakeholder engagement
relating to the portfolio could be improved.
D Leading a briefing session to BigCo’s directors to explain to them the benefits that their directorates gain
from implementing portfolio management consistently across the company.

Roles and documentation 4 D 5
answer the following questions about the Portfolio Benefits Management Framework.

1 Which 2 statements apply to Section A?
A Delete entry 1 because this is NOT a high-level benefit.

B Amend entry 1 to include on-line sales growth.
C No change to entry 2 because this expresses a measurable benefit.
D Delete entry 2 because this is a non-financial benefit.
E Delete entry 2 because this should be linked to corporate goals.
2 Which 2 statements apply to Section B?
A Move entry 3 to Section A because this describes a metric used to assess one of the high-level benefits
that the portfolio is designed to achieve.
B Move entry 3 to Section D because this defines benefit tracking and reporting.
C No change to entry 4 because it would be appropriate to measure both financial and non-financial benefits.
D Delete entry 4 because only financial benefits should be measured for each initiative.
E Add 'Each initiative should set its own rules for benefit eligibility'.
3 Which 2 statements apply to Section C?
A No change to entry 5 because this describes what benefits will be measured at portfolio-level.
B Move entry 5 to Section B because this describes eligibility guidance for the portfolio.
C No change to entry 6 because measurement against corporate objectives is likely to take place at a
stage/phase gate review.
D Move entry 6 to Section B because this describes mapping of benefits to the corporate objectives.
E Amend entry 6 to include responsibilities for benefits identification.

Question continued
4 Which 2 statements apply to Section D?
A No change to entry 7 because the process to authorize a business case should be defined with clear
responsibility.
B Move entry 7 to Section C because this describes how approval of the business case aligns to the ‘business
change lifecycle’.
C Move entry 7 to Section B because this describes the eligibility rules of each initiative.
D No change to entry 8 because initiatives should report benefits via the Portfolio Office.
E Move entry 8 to Section C because benefits reporting should be aligned to stage/phase gate reviews.
A No change to entry 9 because this describes requirements for benefits tracking.
B Move entry 9 to Section C because this describes the requirements for benefits review beyond initiative
closure.
C Delete entry 9 because this describes processes within the programme or project.
D No change to entry 10 because this describes the roles required for benefits management.
E Delete entry 10 because this describes stakeholder categorization.

Roles and documentation 4 E 5
answer the following question.
C True False
D False True
E False False
Assertion Reason
1 The Portfolio Manager should review progress BECAUSE The Portfolio Manager should ensure that
with the managers of initiative 1 and initiative dependencies within the portfolio are managed
4. effectively.
2 The Portfolio Benefits Manager should BECAUSE The Portfolio Benefits Manager should provide
prepare all future progress reports for initiative assurance that benefits management practices
2. are effective at programme level.
3 Recommendations arising from the gateway BECAUSE The Portfolio Investment Committee undertakes
review planned for initiative 3 should be portfolio-level reviews to confirm that the portfolio
reported to the Portfolio Investment remains on course to deliver the desired strategic
Committee. benefits.
4 The Portfolio Director should monitor the BECAUSE The Portfolio Director is responsible for
budget problems identified with initiative 4. recommending that initiatives are terminated
where justified.
5 The Portfolio Progress Group should approve BECAUSE Only high priority initiatives should be included in
revised benefit realization targets for initiative reports that are sent to the Portfolio Investment
5. Committee.

Note: For Multiple Response (MR) questions, 1 point is
scored if and only if all correct options are selected.
Marking Scheme
Otherwise 0 points are scored.
Exam Paper: GB-RX01-1.6
Question Part Type Response A B C D E F G H I

1 (IS) A MG 1 0 0 0 1
2 0 0 1 0
3 1 0 0 0
4 0 0 1 0
5 1 0 0 0
B MG 1 0 1 0 0
2 0 0 1 0
3 0 0 0 1
4 1 0 0 0
5 0 0 1 0
C CL 1 0 0 0 1
2 0 0 1 0
3 0 0 0 1
4 0 1 0 0
D AR 1 0 1 0 0 0
2 0 0 1 0 0
3 0 0 0 1 0
4 0 1 0 0 0
5 0 0 0 1 0
6 0 0 0 0 1

2 (DF) A MG 1 1 0 0 0 0
2 0 0 1 0 0
3 0 1 0 0 0
4 0 0 1 0 0
5 1 0 0 0 0
B MG 1 0 0 0 1 0
2 0 0 1 0 0
3 1 0 0 0 0
4 1 0 0 0 0
5 0 0 1 0 0
C CL 1 0 0 1 0
D CL 1 0 1 0 0
2 1 0 0 0
3 0 0 1 0
4 0 0 0 1
5 0 0 0 1
6 1 0 0 0
E AR 1 1 0 0 0 0
2 0 0 1 0 0
3 0 0 0 1 0

3 (DL) A MG 1 0 0 0 0 1 0 0
2 1 0 0 0 0 0 0
3 0 0 0 1 0 0 0
4 0 0 1 0 0 0 0
5 0 0 0 0 0 0 1
6 1 0 0 0 0 0 0
B CL 1 0 0 0 1
2 0 0 1 0
3 0 1 0 0
4 0 1 0 0
C AR 1 1 0 0 0 0
2 1 0 0 0 0
3 0 0 1 0 0
4 0 0 1 0 0
5 0 0 0 1 0
6 0 0 0 0 1
D CL 1 1 0 0 0
2 0 0 1 0
3 0 0 0 1
4 0 0 1 0

4 (RD) A MR 1 1 0 0 0 1
2 0 1 0 1 0
3 0 0 1 0 1
4 1 0 1 0 0
5 1 0 0 0 1
B MR 1 1 0 0 0 1
2 0 1 0 1 0
3 0 0 1 0 1
C CL 1 1 0 0 0
2 0 0 1 0
D MR 1 0 1 1 0 0
2 1 0 1 0 0
3 0 1 0 1 0
4 0 1 0 1 0
5 0 1 0 0 1
E AR 1 1 0 0 0 0
2 0 0 0 1 0
3 0 1 0 0 0
4 0 0 0 0 1
5 0 0 1 0 0

Rationale

Question: 1, Syllabus: IS, Part: A, Type: MG, SyllabusRef: IS0301, Level: 3
1 Correct [D]: The purpose of providing recognition of staff performance and provision of
development opportunities is to enable the organization to ignite the ‘climate’
source of organizational energy. This concerns how the organization helps people
to grow, achieve their potential and do their best. Ref 5.5.
2 Correct [C]: The purpose of reviewing working practices and implementing appropriate
standards is to enable the organization to ignite the ‘context’ source of
organizational energy. This concerns how working practices support and enable
people to do a good job. Ref 5.5.
3 Correct [A]: The purpose of aligning individuals’ objectives with the organization’s strategic
objectives is to enable the organization to ignite the ‘connection’ source of
organizational energy. This concerns how people link themselves, their values and
their work to the purpose of the organization. Ref 5.5.
4 Correct [C]: The purpose of replacing outdated IT systems is to enable the organization to
ignite the ‘context’ source of organizational energy. This concerns how working
practices support and enable people to do a good job. Ref 5.5.
5 Correct [A]: The purpose of communicating the corporate strategy and how everyone within the
organization contributes to it is to enable the organization to ignite the ‘connection’
source of organizational energy. This concerns how people link themselves, their
values and their work to the purpose of the organization. Ref 5.5.

Question: 1, Syllabus: IS, Part: B, Type: MG, SyllabusRef: IS0301, Level: 3
1 Correct [B]: This observation suggests that there is a relaxed atmosphere and that the staff
members are content with the status quo, with no desire to change. This indicates
a ‘comfortable’ energy state. Ref 5.5.
2 Correct [C]: This observation suggests that staff members are mentally withdrawn and do
nothing more than is required of them. This indicates a ‘resigned’ energy state. Ref
5.5.
3 Correct [D]: This observation suggests that the previous IT Director actively hindered strategic
change and innovation that was not driven by IT advancements. This indicates a
‘corrosive’ energy state. Ref 5.5.
4 Correct [A]: This observation suggests that the centre of excellence has a high emotional
involvement and is on the lookout for new opportunities and takes decisive action
to solve problems because it really cares about the success of the organization.
This indicates a ‘productive’ energy state. Ref 5.5.
5 Correct [C]: This observation suggests that project managers are mentally withdrawn and do
nothing more than is required of them. This indicates a ‘resigned’ energy state. Ref
5.5.

Question: 1, Syllabus: IS, Part: C, Type: CL, SyllabusRef: IS0401, Level: 4
1 A Incorrect: The scenario states that a decision has been taken to adopt portfolio
management for BigCo’s change initiatives and so an ‘ad hoc’ approach to the
implementation of portfolio management, where development of the approach is
not expected, is not appropriate. Ref 5.3.
B Incorrect: The scenario states that a decision has been taken to adopt portfolio
management for BigCo’s change initiatives. It is therefore, appropriate to
prepare a business case, blueprint and implementation plan. The Portfolio
Strategy and Portfolio Management Framework will be produced to assist
organizational governance alignment. But this is not a valid reason for not
adopting a planned approach to the implementation of portfolio management.
Ref 7.7.2.
C Incorrect: The scenario states that a decision has been taken to adopt portfolio
management for BigCo’s change initiatives. It is therefore, appropriate to
prepare a business case, blueprint and implementation plan. The organization’s
change initiatives will be prioritized as part of the portfolio definition cycle but
this is not a reason for preparing a business case, blueprint and implementation
plan. Ref 6.4.
D Correct: The scenario states that a decision has been taken to adopt portfolio
management for BigCo’s change initiatives. Using a business case, blueprint
and implementation plan implies that the introduction of portfolio management is
to be managed as a programme which is entirely appropriate and supported by
best practice. Ref 5.3.
2 A Incorrect: The scenario states that there is no consistent change lifecycle, it would
therefore be appropriate to ensure this is implemented effectively as part of a
'Ways of Working’ cultural change programme. A Portfolio Management
Framework should describe the business change lifecycle. Ref Appendix E.
B Incorrect: The scenario states that there is no consistent change lifecycle, it would
'Ways of Working’ cultural change programme. The Portfolio Manager should
keep the Portfolio Management Framework up to date but this does not
preclude the Portfolio Director from introducing such a change programme. Ref
Table 4.5 / Appendix B.
C Correct: The scenario states that there is no consistent change lifecycle, it would
'Ways of Working’ cultural change programme. A key to an energized change
culture is effective processes and 'context' is a source of organizational energy
where working practices support and enable people to do a good job. This
explains why the business change lifecycle should be clarified. Ref 4.7 / 5.5.
D Incorrect: The scenario states that there is no consistent change lifecycle, it would
'Ways of Working’ cultural change programme. Ensuring the business change
lifecycle is implemented effectively should increase the organization’s
‘productive’ not 'comfortable' energy state. Ref 4.7 / 5.5.
3 A Incorrect: A single board can oversee the portfolio and can even be the main board (Ref
4.4), but requiring the IT and Marketing board members to sit on each of these
governance bodies helps demonstrate senior management commitment.
Establishment of separate boards for governing portfolio definition (Investment
Committee) and portfolio delivery (Progress Group) is a recognized approach to
portfolio governance. Ref 4.4.
B Incorrect: It would be appropriate to require the IT and Marketing board members to sit on
each of these governance bodies because it helps demonstrate senior
management commitment. Portfolio management decision-making should be
aligned with, and reflect, the wider organizational governance structure. Ref 4.4.
C Incorrect: It would be appropriate to require the IT and Marketing board members to sit on
each of these governance bodies because it helps demonstrate senior
management commitment. Portfolio management decision-making should be
aligned with, and reflect, the wider organizational governance structure, but it
does not have to be the same. Ref 4.4.
D Correct: Establishment of separate boards for governing portfolio definition (Investment
Committee) and portfolio delivery (Progress Group) is a recognized approach to
portfolio governance. Ref 4.4. Requiring the IT and Marketing board members to
sit on either of these governance bodies helps demonstrate senior management
commitment which is one of the principles underpinning effective portfolio
management. Ref 4.3.
4 A Incorrect: The Portfolio Manager is responsible for identifying improvements to the
portfolio management practices, but this does not mean that others should not
suggest improvements using the ‘champion-challenger’ model (Ref Glossary).
Changes to the strategic contribution weighting would affect the portfolio
definition cycle practices and should be approved by the Portfolio Investment
Committee. Ref 5.4 / Appendix B.
B Correct: The ‘champion-challenger’ model helps ensure that stakeholders are actively
involved in the portfolio practices. However, until successfully challenged, all
should agree to adhere to the current processes (Ref Glossary). Changes to the
strategic contribution weighting would affect the portfolio definition cycle
practices and should first be approved by the Portfolio Investment Committee.
Ref 5.4 / Appendix B.
C Incorrect: A ‘key to success’ for the Portfolio Office is that it regularly reviews progress and
adapts its activities, and the portfolio management processes, accordingly.
However any changes to the strategic contribution weighting would affect the
portfolio definition cycle practices and should first be approved by the Portfolio
Investment Committee. Ref Table 4.4 / 5.4 / Appendix B.
D Incorrect: The Portfolio Office should play the role of challenger or ‘critical-friend’ to
individual initiatives. This does not, however, mean it should decide whether and
when to implement changes to the portfolio management processes. Changes
to the strategic contribution weighting would affect the portfolio definition cycle
practices and should be approved by the Portfolio Investment Committee. Ref
Table 4.4 / 5.4 / Appendix B.

Question: 1, Syllabus: IS, Part: D, Type: AR, SyllabusRef: IS0401, Level: 4
1 True: The portfolio is central to the future of True: Decisions about the inclusion of
the organization and its objectives initiatives in the portfolio lie with the
include improvements in financial PDG/Investment Committee which
performance. The Investment needs to understand whether initiatives
Committee is responsible for approval are achievable. This does not however
of release of funding. Ref Scenario. It is explain why the Chief Financial Officer
therefore appropriate that the Chief should be a member of the Portfolio
Financial Officer sit on the Portfolio Investment Committee. The answer is
Investment Committee. Ref Appendix therefore B. Ref 3.3 / Appendix B.
B.
2 True: The Portfolio Office is the guardian of False: The Portfolio Investment Committee
the portfolio processes – monitoring agrees the processes contained within
their operation, reporting any non- the portfolio definition cycle and
compliance and providing an changes to those processes. Ref
assurance on their effective operation. Appendix B.
They should report to the top of the
organization and be integrated into the
organizational governance structure.
Ideally they should have direct contact
with, and report to, the management
board champion. In this case the
Portfolio Director is a member of the
Corporate Board. Ref Table 4.4.
3 False: The Portfolio Office needs to consider True: Programme and project offices are
the impact of all change initiatives primarily concerned with co-ordinating
designed to achieve the organization’s the delivery of individual change
strategic objectives, rather than the initiatives in the right way. Ref 4.6.1.
actions taken to achieve the objectives
of portfolio management. Ref 4.4.2.3.
4 True: Role profiles are prepared for key True: It is a responsibility of the Portfolio
positions, terms of reference are Manager to keep the Portfolio
agreed for the portfolio governance Management framework up to date. This
bodies, and both are included in the is not a reason for the role profile of the
Portfolio Management Framework. Ref Portfolio Director to be included in the
7.7.2 / Appendix E / Glossary. Portfolio Management Framework. The
answer is therefore B. Ref Appendix B.
5 False: There is no reason to stop all projects True: A Portfolio Benefits Manager should
and programmes. The portfolio participate in investment appraisals,
definition cycle will determine which ensuring that the business case benefits
initiatives are required and which are forecasts are consistent with the
not. Ref 5.2. organization’s benefits eligibility rules.
Ref Appendix B.
6 False: The Portfolio Office is the guardian of False: Responsibility for the delivery of
the portfolio processes – monitoring individual initiatives rests with the
their operation, reporting any non- relevant programme or project manager.
compliance and providing an The Portfolio Office is responsible for
assurance on their effective operation. the development of delivery capability
This is why the Portfolio Office should organization-wide (Ref 3.5) and for
have no direct delivery responsibility, providing an assurance to senior
so that they are not seen as being management on effective and efficient
biased in favour of their own work. Ref management and delivery of change
7.7.2. initiatives. Ref 4.6.
Question: 2, Syllabus: DF, Part: A, Type: MG, SyllabusRef: DF0301, Level: 3
1 Correct [A]: According to the additional information, initiative 1 has the highest NPV over 5
years (£246,245). Ref 6.4.2.
2 Correct [C]: According to the additional information, initiative 3 has the highest NPV after 3
years (£46,823). Ref 6.4.2.
3 Correct [B]: According to the additional information the NPV for initiative 2 at the end of year 3
is -£31,030 and +£7,115 at the end of year 4. Initiative 2 therefore breaks even in
year 4 in discounted terms. Ref 6.4.2.
4 Correct [C]: According to the additional information, the cumulative net flow for initiative 3 at the
end of year 2 is 0. Undiscounted payback therefore occurs by the end of year 2.
Ref 6.4.2.
5 Correct [A]: According to the additional information, initiative 1 breaks even in year 3 in both
discounted and undiscounted terms – the undiscounted value at the end of year 2
is -£100,000 and +£100,000 at the end of year 3. The discounted (net present)
values are -£138,400 at the end of year 2 and +£24,860 at the end of year 3. Ref
6.4.2.
Question: 2, Syllabus: DF, Part: B, Type: MG, SyllabusRef: DF0301, Level: 3

1 Correct [D]: According to the additional information, initiative 9 has the lowest weighted
portfolio prioritization score (51). Ref 6.4.
2 Correct [C]: According to the additional information, initiative 8 has the highest weighted
attractiveness score (45). Ref 6.4.
3 Correct [A]: According to the additional information, initiative 6 has the highest weighted
achievability score (38). Ref 6.4.
4 Correct [A]: According to the additional information, initiative 6 has the lowest weighted
attractiveness score (20). Ref 6.4.
5 Correct [C]: According to the additional information, initiative 8 has the highest weighted
portfolio prioritization score (75). Ref 6.4.
Question: 2, Syllabus: DF, Part: C, Type: CL, SyllabusRef: DF0401, Level: 4

1 A Incorrect: According to the scenario, the market is relatively mature and the organization’s
objectives are reasonably defined and not subject to continual change. A ‘top
down’ approach to portfolio management, where initiatives are appraised in the
context of the strategic objectives, is therefore appropriate. Ref 6.2.1.
B Incorrect: The strategic objectives are indeed well-defined and relatively stable, but this
means that a ‘top down’ approach to portfolio management, where initiatives
are appraised in the context of the strategic objectives, is appropriate. Ref
6.2.1.
C Correct: A ‘top down’ approach to portfolio management is appropriate where the
environment is less dynamic and where the portfolio is designed to deliver the
changes required to achieve the defined strategic objectives. Ref 6.2.1.
D Incorrect: According to the scenario, the market is relatively mature rather than being
highly dynamic. In such situations the organization’s objectives are usually
reasonably defined and are not subject to continual change. A ‘top down’
approach to portfolio management, where initiatives are appraised in the
context of the strategic objectives, is therefore appropriate. Ref 6.2.1.

Question: 2, Syllabus: DF, Part: D, Type: CL, SyllabusRef: DF0401, Level: 4
1 A Incorrect: Initiative 11 will save staff time but there are no direct savings in operational
costs and this is the reason that this initiative is appropriate to the ‘Enabling’
segment rather than the ‘Efficiency’ segment. Ref 6.3.2.
B Correct: Initiative 11 will not result in direct savings in operational costs and so this
initiative is appropriate to the ‘Enabling’ segment rather than the ‘Efficiency’
segment. Ref 6.3.2.
C Incorrect: Initiative 11 will save staff time but there are no direct savings in operational
costs and so this initiative is appropriate to the ‘Enabling’ segment rather than
the ‘Efficiency’ segment. Ref 6.3.2.
D Incorrect: Initiative 11 will save staff time but there are no direct savings in operational
costs and so this initiative is appropriate to the ‘Enabling’ segment rather than
the ‘Efficiency’ segment. Ref 6.3.2.
2 A Correct: There is a high degree of uncertainty as to the final outcome and so initiative 12
is appropriate to the ‘Innovative’ rather than ‘Strategic’ segment. Ref 6.3.2.
B Incorrect: Initiative 12 may result in increased turnover and profitability but there is a high
degree of uncertainty as to the final outcome and so initiative 12 is appropriate
to the ‘Innovative’ rather than ‘Strategic’ segment. Ref 6.3.2.
C Incorrect: Initiative 12 may result in increased turnover and profitability but there is a high
degree of uncertainty as to the final outcome and so initiative 12 is appropriate
to the ‘Innovative’ rather than ‘Strategic’ segment. Ref 6.3.2.
D Incorrect: There is a high degree of uncertainty as to the final outcome and so initiative 12
is appropriate to the ‘Innovative’ rather than the ‘Strategic’ segment. Ref 6.3.2.
3 A Incorrect: There is no evidence that there is a high degree of uncertainty as to the final
outcome. Initiative 13 will result in direct savings in travel expenses and is
therefore appropriate to the ‘Efficiency’ segment. Ref 6.3.2.
B Incorrect: Time savings may result and this may contribute to strategic objectives, but the
main benefit of initiative 13 is a saving in travel expenses and it is therefore
appropriate to the ‘Efficiency’ segment. Ref 6.3.2.
C Correct: Initiative 13 will result in direct savings in travel expenses and is therefore
appropriate to the ‘Efficiency’ segment. Ref 6.3.2.
D Incorrect: Initiative 13 may result in time savings from reduced travel but these will not lead
to direct savings in current and planned operational costs. Initiative 13 will result
in direct savings in travel expenses and is therefore appropriate to the
‘Efficiency’ segment. Ref 6.3.2.
4 A Incorrect: The statement is incorrect – there is a direct relationship between customer
satisfaction and sales turnover via the ‘service profit chain’. Initiative 14 is
therefore appropriate to the ‘Strategic’ segment. Ref 4.5.
B Incorrect: There is a direct relationship between customer satisfaction and improved sales
turnover via the ‘service profit chain’. Initiative 14 is therefore appropriate to the
‘Strategic’ segment. Ref 4.5.
C Incorrect: The statement is incorrect – there is a direct relationship between customer
satisfaction and sales turnover via the ‘service profit chain’. Initiative 14 is
therefore appropriate to the ‘Strategic’ segment. Ref 4.5.
D Correct: There is a direct relationship between customer satisfaction and improved sales
turnover via the ‘service profit chain’. Initiative 14 is therefore appropriate to the
‘Strategic’ segment. Ref 4.5.
5 A Incorrect: Initiative 15 will have an uncertain direct impact on the strategic objectives but it
will inform management decision-making and is therefore appropriate to the
‘Enabling’ segment. Ref 6.3.2.
B Incorrect: Initiative 15 won’t have a direct impact on the strategic objectives but it will
inform management decision-making and is therefore appropriate to the
C Incorrect: Initiative 15 won’t have a direct impact on the strategic objectives but it will
inform management decision-making and is therefore appropriate to the
D Correct: Initiative 15 will have an uncertain direct impact on the strategic objectives but it
will inform management decision-making and is therefore appropriate to the
6 A Correct: Initiative 16 is designed to improve customer service and result in increased
sales on-line via the ‘service profit chain’. It is therefore appropriate to the
‘Strategic’ segment. Ref 6.3.2.
B Incorrect: Initiative 16 is designed to have a direct impact on the strategic objectives via
the ‘service profit chain’. It should therefore be classified in the ‘Strategic’
segment rather than the ‘Maintenance’ segment as it is not designed to maintain
business as usual. Ref 6.3.2.
C Incorrect: Initiative 16 is designed to provide increased sales on-line and so make a
significant contribution to the strategic objectives via the ‘service profit chain’. It
is therefore appropriate to the ‘Strategic’ segment rather than the ‘Maintenance’
segment. Ref 6.3.2.
D Incorrect: Initiative 16 is designed to provide increased sales on-line rather than maintain
business as usual. It is therefore appropriate to the ‘Strategic’ segment rather
than the ‘Maintenance’ segment. Ref 6.3.2.
Question: 2, Syllabus: DF, Part: E, Type: AR, SyllabusRef: DF0401, Level: 4

1 True: The primary objectives of portfolio True: Forecasters tend to underestimate costs
management in BigCo include and duration, and overestimate benefits.
improving prioritization and this is Basing forecasts on a ‘reference class’
dependent on reliable forecasts. Data of data has been found to improve
collected from post-implementation initiative forecasting which supports
reviews can be used to improve the improved portfolio prioritization. The
reliability of forecasts. Ref 7.2.2.2. answer is therefore A. Ref 6.4.2 /
7.2.2.2.
2 True: ‘Driver-based’ analysis will make the False: ‘Driver-based’ analysis will aid strategic
implicit value chain underpinning the alignment by making the value chain
strategic objectives explicit and so explicit. It will not however quantify the
enable the strategic contribution of strategic contribution of individual
initiatives designed to improve staff initiatives. Ref 4.5.
morale and customer service to be
assessed more consistently. Ref 4.5.
3 False: ‘PESTLE’ analysis should have been True: ‘PESTLE’ analysis is indeed used in
used as part of the strategic review undertaking an environmental analysis at
commissioned by the Chief Executive a strategic level, by assessing political,
Officer. It is a technique that is used as economic, social, technological, legal
part of the ‘understand’ practice rather and environmental factors that might
than the ‘prioritize’ practice. Ref 6.2.2. influence the organization’s choice and
achievement of strategic objectives. Ref
6.2.2 / Glossary.

Question: 3, Syllabus: DL, Part: A, Type: MG, SyllabusRef: DL0301, Level: 3
1 Correct [E]: This refers to the financial management ‘key to success’ of ‘staged release of
funding’ to help maintain strategic alignment and minimize risk of wasted
expenditure. Ref Table 7.5.
2 Correct [A]: 'Involve stakeholders’ is a ‘key to success’ of the stakeholder engagement practice
(Ref Table 7.8) rather than the financial management practice.
3 Correct [D]: This refers to the financial management ‘key to success’ of producing business
cases in a consistent manner. Ref Table 7.5.
4 Correct [C]: This refers to the financial management ‘key to success’ of aligning the portfolio
management, strategic planning and financial management cycles. Ref Table 7.5.
5 Correct [G]: This refers to the financial management ‘key to success’ of regular reporting of
progress (monthly reporting), for inclusion in the Portfolio Dashboard Report. Ref
Table 7.5.
6 Correct [A]: This refers to portfolio risk management, and implementation of standards across
the portfolio, but is not one of the ‘keys to success’ of the financial management
practice. Ref 7.5.2.

Question: 3, Syllabus: DL, Part: B, Type: CL, SyllabusRef: DL0303, Level: 3
1 A Incorrect: This relates to a resource dependency and should be recorded in the Portfolio
Delivery Plan. Ref 6.6.2 / Appendix D.
B Incorrect: This is a key strategic risk to portfolio delivery and so should be recorded in the
Portfolio Strategy. Ref 6.6.2 / Appendix D.
C Incorrect: General arrangements for contingency management may well be reflected in the
risk management strategy but the specific level of the contingency budget should
be accounted for as part of the Portfolio Financial Plan. Ref 7.4.2.
D Correct: This is an expression of a tolerance level for escalation and as such is
appropriate to the portfolio risk management strategy. Ref 7.5.2.
2 A Incorrect: This risk only affects the corporate identity and branding initiative rather than
representing a risk that runs across the portfolio. Ref 7.5.2.
B Incorrect: This risk only affects the customer service training programme rather than
representing a risk that runs across the portfolio and it is unlikely to have a major
negative impact on operational performance. Ref 7.5.2.
C Correct: This is an example of an aggregated risk relating to over-exposure to a single
supplier and will potentially have an effect across multiple initiatives. It is
therefore appropriate to the portfolio risks and issues register. Ref 7.5.2.
D Incorrect: This risk can be managed within the website re-design initiative rather than
representing a risk that runs across the portfolio. Ref 7.5.2.
3 A Incorrect: This describes a requirement for one of the initiatives, and not a dependency
between initiatives, which is the subject of portfolio-level dependency
management. Ref Table 7.6.
B Correct: This is a dependency between two initiatives described in the additional
information. It is an example of a logical dependency and as such will be
documented by the Portfolio Office. Ref Table 7.6.
C Incorrect: This describes a dependency between an initiative producing an improved
capability (improved logistics and stock control system) and the realization of a
benefit from that initiative (increased efficiency of fulfilling orders). This would
only be documented by the Portfolio Office if the realization of the benefit was
dependent on actions beyond the scope of the initiative. Ref Table 7.6.
D Incorrect: This is a dependency within the website re-design initiative and would not be
recorded at portfolio level where the focus is on key dependencies between
initiatives, i.e. those that materially affect the Portfolio Delivery Plan and the
Portfolio Benefits Realization Plan. Ref Table 7.6.
4 A Incorrect: This is an acceptable way of presenting dependency information. Ref Table 7.6.
B Correct: This would not be appropriate, as it would not ensure that there is acceptance of
this dependency by the improved logistics and stock control systems initiative,
and recording this on the schedule for a single initiative will not give visibility at
portfolio level. Ref Table 7.6.
C Incorrect: This is an acceptable way of presenting dependency information. Ref Table 7.6.
D Incorrect: This is an acceptable way of presenting dependency information. Ref Table 7.6.

Question: 3, Syllabus: DL, Part: C, Type: AR, SyllabusRef: DL0401, Level: 4
1 True: According to the scenario, BigCo does True: Consistent forecasting is essential,
not have a standard programme or therefore standards and templates
project management method and should be defined to guide programme
resource forecasting is inconsistent. and project planners. This is the reason
Standards for consistent resource for the assertion. The answer is A. Ref
forecasting should therefore be Table 7.10.
produced. Ref 7.8.2.
2 True: According to the scenario, there is a True: Limited resources include the
concern that BigCo are trying to make organization’s capacity to absorb
more changes than the company can business change. The answer is A. Ref
handle and accordingly it is appropriate 7.8.2.
to assess its capacity to absorb this
change. Ref 7.8.2.
3 True: According to the scenario, there are False: It is the Portfolio Resource Schedule that
financial implications of these initiatives provides a baseline against which to
given the need to finance external manage demand and supply of limited
consultancy support. These extra costs resources. Ref Appendix E.
should be reflected in the Portfolio
Financial Plan. Ref 7.4.2 / 7.8.2 /
Appendix E.
4 True: According to the scenario, the financial False: The Portfolio Office will compile a
resources needed to fund the external Portfolio Resource Schedule based on
consultants are being treated as one of the plans of individual initiatives included
the limited resources within the BigCo within the portfolio. Ref Table 7.10.
portfolio. Ref 7.8.2.
5 False: According to the scenario, priority for True: The most highly prioritized programmes
the limited resources should be given and projects should be placed first in the
to initiatives 17, 18 and 19 as the other queue for limited resources. Ref 7.8.2.
two initiatives are dependent on these.
Ref 7.8.2.
6 False: According to the scenario, it is False: A good time to review resource
progress against the strategic objective requirements is at the portfolio-level
to increase on-line sales that should be reviews and at the stage or phase gate
undertaken at the end of June and review for each of the initiatives. Ref
December. Portfolio-level reviews Table 7.10.
should take place at regular intervals
but these are not the reviews referred
to. Ref Table 7.10.

Question: 3, Syllabus: DL, Part: D, Type: CL, SyllabusRef: DL0401, Level: 4
1 A Correct: Having a standard reporting template will help ensure consistent data is
reported, but there also needs to be a documented route and schedule for
portfolio reporting in order to achieve ‘one version of the truth’. Ref 7.2.2.3 /
Glossary.
B Incorrect: Whilst it is the responsibility of the Portfolio Manager to prepare regular Portfolio
Dashboard Reports based on the initiatives’ progress reports, one of the
services provided by the Portfolio Office is to define PPM standards, processes
and templates. Ref 4.6.
C Incorrect: Having a standard reporting template will help ensure consistent data is
reported, but there also needs to be a documented route and schedule for
portfolio reporting. Ref 7.2.2.3.
D Incorrect: It is the responsibility of the Portfolio Manager to prepare regular Portfolio
Dashboard Reports based on the initiative progress reports. The quality of
these reports is dependent upon use of a standard reporting template but also
reporting via a documented route and schedule. Ref Appendix B.
2 A Incorrect: A ‘business change lifecycle’ is an organizational process or framework that
should be used consistently across the organization. Ref 7.2.2.1 / Glossary.
B Incorrect: It is one of the common misconceptions that portfolio management is a
bureaucratic process that prevents or stops programmes and projects for no
good reason. Ref 2.6.
C Correct: A ‘business change lifecycle’, which is used to control delivery of all change
initiatives in the portfolio, is central to the management control practice. Ref
7.2.2.1.
D Incorrect: Whilst having a ‘business change lifecycle’ is central to management control,
separate lifecycles could be developed for different categories of initiative. Ref
7.2.2.1.
3 A Incorrect: Any potential conflict could be avoided by ensuring that different staff members
provide the support and assurance/challenge functions. The ‘champion-
challenger’ model is appropriate because it provides an effective mechanism
for engaging stakeholders in the development and application of portfolio
practices. Ref 4.6.
B Incorrect: Whist it is important for the ‘business change lifecycle’ to be understood and
followed, opening it up to challenge encourages stakeholders to provide lessons
and engage actively with the portfolio management processes. Ref 7.2.2.1.
C Incorrect: The ‘champion-challenger’ model enables delivery teams to challenge the
existing processes (the existing ‘champion’) and propose improvements
(‘challengers’) which if accepted become the new ‘champion’. Ref 7.2.2.1.
D Correct: Because controlling a ‘business change lifecycle’ can be complex, the Portfolio
Office should provide and facilitate training in, and awareness of, the process
and encourage the use of the ‘champion-challenger’ model to encourage
stakeholders to suggest ways of improving the process. Ref 7.2.2.1.
4 A Incorrect: Business case templates can help ensure consistent investment appraisal but
consideration also needs to be given to the reliability of forecasts of costs and
benefits. Ref 7.2.2.2.
B Incorrect: To apply ‘reference class’ forecasting the organization would need data
captured from post-implementation reviews on a consistent basis. As stated in
the scenario, BigCo have not collected data on past project performance. Ref
7.2.2.2.
C Correct: Business case guidance (including a standard template and adjustments for
‘optimism bias’) enables business cases to be created on a consistent basis
which in turn enables initiatives to be compared on a ‘level playing field’, i.e. on
a consistent basis. Ref 7.2.2.2.
D Incorrect: A common problem with forecasts is for the costs and timescales to be
underestimated and benefits to be overestimated. Ref 7.2.2.2.
Question: 4, Syllabus: RD, Part: A, Type: MR, SyllabusRef: RD0301, Level: 3

1 A Correct: The financial plan of the Portfolio Delivery Plan will include the profiled capital
and operating expenditure budgets for the year. Ref 6.6.2 / 7.4.2.
B Incorrect: Non-cashable efficiency savings will be included in the Portfolio Benefits
Realization Plan. Efficiency benefits may be included in the financial plan
section of the Portfolio Delivery Plan where they are recycled to fund new
initiatives. Ref 7.3.2 / 7.4.2.
C Incorrect: The budget for the Finance directorate is a BAU expense and won’t appear in
the Portfolio Delivery Plan. Ref 6.6.2 / 3.2.
D Incorrect: The financial plan section of the Portfolio Delivery Plan focuses on the year
ahead. Longer-term, overview financial plans will be included in the Portfolio
Strategy. Ref 6.6.2 / Appendix E.
E Correct: The financial plan of the Portfolio Delivery Plan will include the profiled capital
and operating expenditure budgets for the year. Ref 6.6.2 / 7.4.2.
2 A Incorrect: This is a generic risk and is appropriate to the key risks mitigation action plan
section. Ref Table 7.7. The Portfolio Delivery Plan focuses on key
dependencies, i.e. those that materially affect the portfolio delivery schedule and
Portfolio Benefits Realization Plan. Ref Appendix E / Table 7.6.
B Correct: The Portfolio Delivery Plan focuses on key dependencies, i.e. those that
materially affect the portfolio delivery schedule and Portfolio Benefits Realization
Plan. This is an example of a logical dependency. Ref Appendix E / Table 7.6.
C Incorrect: This is a mitigating action to address the risk of inadequate dependency
management and is appropriate to the key risk mitigation action plan section.
Ref 7.7 / Appendix E. The Portfolio Delivery Plan focuses on key dependencies,
i.e. those that materially affect the portfolio delivery schedule and Portfolio
Benefits Realization Plan. Ref Appendix E / Table 7.6.
D Correct: The Portfolio Delivery Plan focuses on key dependencies, i.e. those that
materially affect the portfolio delivery schedule and Portfolio Benefits Realization
Plan. This is an example of a logistical dependency. Ref Appendix E / Table 7.6.
E Incorrect: This is a generic risk and is appropriate to the key risks mitigation action plan
section. Ref Table 7.7 / Appendix E. The Portfolio Delivery Plan focuses on key
dependencies, i.e. those that materially affect the portfolio delivery schedule and
Portfolio Benefits Realization Plan. Ref Appendix E / Table 7.6.
3 A Incorrect: Achievement of a maturity rating relates to an assessment of process adequacy.
The portfolio benefits realization plan section of the Portfolio Delivery Plan is a
summary of the benefits to be realized in the year ahead, and when. Ref 7.3.2.2 /
Appendix E.
B Incorrect: This is appropriate to the Portfolio Benefits Management Framework. Ref
Appendix E. The portfolio benefits realization plan section of the Portfolio
Delivery Plan is a summary of the benefits to be realized in the year ahead, and
when. Ref 7.3.2.2 / Appendix E.
C Correct: The portfolio benefits realization plan section of the Portfolio Delivery Plan is a
summary of the benefits to be realized in the year ahead, and when. This will
include reductions in operating costs in the central functions. Ref 7.3.2.2 /
Appendix E.
D Incorrect: This is an initiative level milestone. The portfolio benefits realization plan section
of the Portfolio Delivery Plan is a summary of the benefits to be realized in the
year ahead, and when. Ref 7.3.2.2 / Appendix E.
E Correct: The portfolio benefits realization plan section of the Portfolio Delivery Plan is a
summary of the benefits to be realized in the year ahead, and when. This will
include quantified improvements in brand awareness. Ref 7.3.2.2 / Appendix E.
4 A Correct: The key risks mitigation action plan section of the Portfolio Delivery Plan
focuses on key portfolio-level risks and their mitigation. This is an example of an
aggregated risk and is therefore appropriate to this section. Ref Appendix E /
6.6.2.
B Incorrect: This is appropriate to the Portfolio Management Implementation Plan. The key
risks mitigation action plan section of the Portfolio Delivery Plan focuses on key
portfolio-level risks and their mitigation. Ref Appendix E / 6.6.2.
C Correct: The key risks mitigation action plan section of the Portfolio Delivery Plan
focuses on key portfolio-level risks and their mitigation. This is an example of a
generic risk and is therefore appropriate to this section. Ref Appendix E / 6.6.2.
D Incorrect: This is an initiative-level risk. The key risks mitigation action plan section of the
Portfolio Delivery Plan focuses on key portfolio-level risks and their mitigation.
Ref Appendix E / 6.6.2.
E Incorrect: This is an initiative-level risk assessment. The key risks mitigation action plan
section of the Portfolio Delivery Plan focuses on key portfolio-level risks and
their mitigation. Ref Appendix E / 6.6.2.
5 A Correct: The high-level resource plan/schedule section of the Portfolio Delivery Plan
focuses on the balance between demand and supply for limited resources. Ref
Appendix E / 6.6.2 / 7.8.2.
B Incorrect: The focus of the high-level resource plan/schedule section of the Portfolio
Delivery Plan is on those resources required to ensure portfolio delivery, rather
than those resources engaged in managing delivery. Ref Appendix E / 6.6.2 /
7.8.2.
C Incorrect: The focus of the high-level resource plan/schedule section of the Portfolio
Delivery Plan is on those resources required to ensure delivery at a portfolio-
level rather than at an individual initiative level. Ref Appendix E / 6.6.2 / 7.8.2.
D Incorrect: Financial requirements are addressed in the financial plan section. The high-
level resource plan/schedule section of the Portfolio Delivery Plan focuses on
the balance between demand and supply for other limited resources. Ref
Appendix E / 6.6.2 / 7.8.2.
E Correct: The high-level resource plan/schedule section of the Portfolio Delivery Plan
focuses on the balance between demand and supply for limited resources. Ref
Appendix E / 6.6.2 / 7.8.2.

Question: 4, Syllabus: RD, Part: B, Type: MR, SyllabusRef: RD0301, Level: 3
1 A Correct: This describes an objective of portfolio stakeholder engagement, i.e. ensuring
that stakeholders’ needs are identified by proactively involving them in the
design and development of relevant initiatives. Ref 7.6.2.
B Incorrect: This is the purpose of the Portfolio Stakeholder Engagement and
Communication Plan. Ref Appendix E.
C Incorrect: This is the vision of BigCo, not the objective of portfolio stakeholder
engagement and communication. Ref Appendix E.
D Incorrect: This is a high-level benefit target, and should be recorded in the Portfolio
Benefits Realization Plan. Ref Appendix E.
E Correct: This describes an objective of portfolio stakeholder engagement, i.e. ensuring
that there is senior management commitment to portfolio management. Ref
7.6.3.
2 A Incorrect: This statement relates to responsibilities for portfolio progress reporting and, as
such, is not appropriate to the key stakeholder groups section of the
Stakeholder Engagement and Communication Plan. Ref Appendix E.
B Correct: This statement identifies a key stakeholder group and includes an analysis of
the degree of their interest and their ability to influence. Ref 7.6.2.
C Incorrect: This statement describes how a specific stakeholder group will be engaged
and, as such, is appropriate to the media to be used for each stakeholder group
section. Therefore, the statement is not appropriate to the key stakeholder group
heading. Ref Appendix E.
D Correct: This statement identifies a key stakeholder group and includes an analysis of
the degree of their interest and their ability to influence. Ref 7.6.2.
E Incorrect: This statement describes how a specific stakeholder group will be engaged
and, as such, is appropriate to the media to be used for each stakeholder group
section. Therefore, the statement is not appropriate to the key stakeholder group
heading. Ref Appendix E.
3 A Incorrect: This statement concerns responsibility for communicating consistent messages
and does not relate to the media to be used for each stakeholder group. Ref
7.6.2 / Appendix E.
B Incorrect: This statement describes the collaborative working between the Portfolio Office
and the organization’s communication experts, but not how the key messages
will be communicated to specific stakeholder groups. Ref 7.6.2.
C Correct: This statement outlines how key messages will be communicated to a key
stakeholder group. Ref 7.6.2.
D Incorrect: This statement describes the approach to implementing the Stakeholder
Engagement and Communication Plan rather than how key messages will be
communicated to specific stakeholder groups. Ref 7.6.2.
E Correct: This statement outlines how key messages will be communicated to a key
stakeholder group. Ref 7.6.2.

Question: 4, Syllabus: RD, Part: C, Type: CL, SyllabusRef: RD0302, Level: 3
1 A Correct: This is an example of championing the implementation of portfolio management
by being visibly involved in portfolio communications. Ref Appendix B / 7.6.2.
B Incorrect: Leading the preparation of the Stakeholder Engagement and Communication
Plan is a responsibility of the Portfolio Manager. Ref Appendix B.
C Incorrect: Approving communications on portfolio progress is a responsibility of the
Portfolio Progress Group. Ref Appendix B.
D Incorrect: Agreeing the Portfolio Management Framework (of which the Stakeholder
Engagement and Communication Plan is a part) is a responsibility of the
Portfolio Investment Committee. Ref Appendix B / 7.6.2.
2 A Incorrect: Providing training and awareness-building sessions on the application of the
Portfolio Benefits Management Framework is a responsibility of the Portfolio
Benefits Manager. Ref Appendix B.
B Incorrect: Promoting an energized culture that is focussed on collaborative working is a
responsibility of the Portfolio Director. Ref Appendix B.
C Correct: This is an example of identifying improvements to portfolio management
practices (which is a Portfolio Manager responsibility) by adopting the
‘champion-challenger’ model. Ref Appendix B / 7.6.2.
D Incorrect: Championing the implementation of portfolio management across the
organization is a responsibility of the Portfolio Director. Ref Appendix B.

Question: 4, Syllabus: RD, Part: D, Type: MR, SyllabusRef: RD0401, Level: 4
1 A Incorrect: This is a valid description of the high-level benefits of the portfolio. Ref 7.3.2 /
Appendix D.
B Correct: According to the scenario, BigCo's on-line business is below 10% compared to
25% for their competitors. This would therefore be regarded as a key benefit
area. Ref 7.3.2 / Appendix E.
C Correct: This does express a measurable benefit and is an appropriate description of
the high-level benefits of the portfolio. Ref 7.3.2 / Appendix E.
D Incorrect: This does describe a non-cashable benefit but it is a valid description of the
high-level benefits of the portfolio. Ref 7.3.2 / Appendix E.
E Incorrect: This is a valid description of the high-level benefits of the portfolio. Ref 7.3.2 /
Appendix E.
2 A Correct: According to the scenario, BigCo's business priorities include bringing costs
under control. This describes a high-level benefit that the portfolio is designed to
achieve. Ref 7.3.2 / Appendix E.
B Incorrect: This describes a high-level benefit that the portfolio is designed to achieve. It
does not describe responsibilities for benefit tracking and reporting. Ref 7.3.2 /
Appendix E.
C Correct: It would be appropriate to measure both financial and non-financial benefits. The
business priorities include increasing sales, controlling costs and improving
cross-organizational working. Ref 7.3.2 / Appendix E.
D Incorrect: It would be appropriate for each initiative to measure both financial and non-
financial benefits. The business priorities include increasing sales, controlling
costs and improving cross-organizational working. Ref 7.3.2 / Appendix E.
E Incorrect: The rules for benefits measurement should be prepared for the portfolio as a
whole. Individual initiatives should therefore not set their own rules for benefit
eligibility. Ref 7.3.2 / Appendix E.
3 A Incorrect: This does describe what benefits will be measured at portfolio-level. However, it
is referring to benefits eligibility guidance so should be in Section B. Ref 7.3.2 /
Appendix E.
B Correct: This is referring to benefits eligibility guidance so it should be in Section B. Ref
7.3.2 / Appendix E.
C Incorrect: Measurement against corporate objectives is likely to take place at a
stage/phase gate review. However, this is referring to benefits eligibility
guidance and so it should be in Section B. Ref 7.3.2 / Appendix E.
D Correct: This is referring to benefits eligibility guidance and so should be in Section B.
Ref 7.3.2 / Appendix E.
E Incorrect: Responsibilities for benefits identification would be documented in Section D.
Ref Appendix E.
4 A Incorrect: Responsibilities for business case approval should be clear. However, this is
describing how approval of the business case aligns to the ‘business change
lifecycle’ and so it should be shown in Section C. Ref 7.3.2 / Appendix E.
B Correct: This does describe how approval of the business case aligns to the ‘business
change lifecycle’ so it should be shown in Section C. Ref 7.3.2 / Appendix E.
C Incorrect: This does not describe benefit eligibility rules. It describes how approval of the
business case aligns to the ‘business change lifecycle’ and so should be shown
in Section C. Ref 7.3.2 / Appendix E.
D Correct: The Portfolio Benefits Management Framework should include a clear
description of how initiatives should report benefits via the Portfolio Office. Ref
7.3.2 / Appendix E.
E Incorrect: There is no requirement to align Portfolio Dashboard reporting to stage/phase
gates. Ref 7.3.2 / Appendix E.
5 A Incorrect: This is describing requirements for benefits evaluation as part of the ‘business
change lifecycle’ and so should be contained in Section C. Ref 7.3.2 / Appendix
E.
B Correct: This information should be contained in Section C because it is describing the
requirements for benefits review beyond initiative closure and post-
implementation review is part of the ‘business change lifecycle’. Ref 7.3.2 /
Appendix E.
C Incorrect: This is referring to processes within the ‘business change lifecycle’ and so
should be contained in Section C. Ref 7.3.2 / Appendix E.
D Incorrect: This is not describing roles for benefits management. It is referring to
stakeholder categorization and should be documented in the Portfolio
Stakeholder Engagement and Communication Plan. Ref 7.6.2 / Appendix E.
E Correct: This is referring to stakeholder categorization and should be documented in the
Portfolio Stakeholder Engagement and Communication plan. Ref 7.6.2 /
Appendix E.

Question: 4, Syllabus: RD, Part: E, Type: AR, SyllabusRef: RD0402, Level: 4
1 True: The Portfolio Manager should ensure True: The Portfolio Manager is responsible for
that dependencies are managed ensuring that dependencies are
effectively, identifying constraints within effectively managed, and issues
the portfolio and working to overcome escalated where required. Ref Appendix
them, and escalating issues where B. This is a valid reason for the
required. Ref Appendix B. From the assertion, therefore the answer is A.
additional information, initiative 1 may
impact on initiative 4’s ability to deliver,
so this is something that needs to be
reviewed with the managers of the
initiatives, so that the Portfolio Manager
can decide whether any action is
appropriate.
2 False: The manager of an initiative should True: The Portfolio Benefits Manager does
provide progress reports to the provide assurance on the effectiveness
Portfolio Office in the required format of benefits management practices at
and to the agreed schedule. Ref project and programme level. Ref
7.2.2.3. The Portfolio Manager Appendix B.
prepares the Portfolio Dashboard
Report for distribution to the Portfolio
Investment Committee and Portfolio
Progress Group. Ref Appendix B.
3 True: The Portfolio Investment Committee is True: Although the Portfolio Progress Group
responsible for funding decisions. Ref would normally attend the stage/phase
Appendix B. The additional information gate review, the Portfolio Direction
states that the planned phase gate is to Group (PDG) / Investment Committee
seek approval for further funding. (IC) are also involved because they are
required to approve the release of
funding for initiatives in this scenario.
This is not explained by the reason given
that the PDG/IC are involved to confirm
that the initiative remains on course to
deliver the desired strategic benefits. So
the answer is B. Ref Appendix B.
4 False: The Portfolio Progress Group should False: The Portfolio Progress Group makes
monitor spend against profiled budget recommendations to the Portfolio
and take effective action to address Investment Committee for the
overspends. Ref Appendix B. termination of initiatives where justified.
Ref Appendix B.
5 True: The Portfolio Progress Group monitors False: All initiatives within the portfolio should
and approves changes to benefits be included in summary reports such as
forecasts. Ref Appendix B. From the the Portfolio Dashboard Reports, which
scenario attachment, resources have are then sent to the Portfolio Investment
been taken from initiative 5 because of Committee and Portfolio Progress
the downgrade in priority. Therefore Group. Ref 7.2.2.3 / Appendix B.
original plans and targets may no
longer be valid.

MoP® Foundation – Students Orientation E
15 Appendix E – Practitioner - Sample Questions 2 and

Rational

MoP® Sample Papers
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RX02
Scenario Booklet
This is a 3-hour objective test examination. This booklet contains the Portfolio
Scenario upon which this exam paper is based. All questions are contained within
the Question Booklet.
Additional information is provided within this Scenario Booklet for a number of

questions. Where reference should be made to additional information, this is
clearly stated within the question to which it is relevant. All information provided
within a question must only be applied to that question.
Each of the four questions is worth 20 marks, giving a maximum of 80 marks in the
paper. The pass mark is 50% (40 marks). Within each question the syllabus area
to which the question refers is clearly stated. The exam is to be taken with the
support of the MoP Guide only, i.e. no material other than the Question Booklet, the
Scenario Booklet, the Answer Booklet and the MoP Guide is to be used. You are
permitted to use a simple calculator in the exam.

© AXELOS Limited 2013. Reproduction of this material requires the permission of AXELOS Limited. MoP® is a registered trade mark of AXELOS Limited. The
swirl logoTM is a trade mark of AXELOS Limited.

Scenario
Background
Transcorp is a government-owned organization with responsibility for:
● Developing and maintaining a safe and effective public transportation network including air,
road, rail, bridges and tunnels.
● Setting the standards for driving licence tests. Drivers need to pass a driving test at an
authorised driver test centre to get a licence.
● Collecting fees due under an annual road fund tax and third party insurance scheme.
● Operating government-owned vehicle test centres, where it is checked that vehicles meet safety
standards; and ensuring that privately run centres comply with defined standards.
Transcorp needs to work closely with other organizations including: train operating companies that
are licensed to use the rail network; airlines and the airways agency; organizations licensed to
perform driving tests; and organizations that operate privately-run vehicle test centres.
Transcorp receives a budget from the Treasury (the government’s finance department) which is
agreed annually. Other sources of funding are driver’s licence fees; road fund tax (the funds collected
in relation to third party insurance are handed over to the Treasury who operate the insurance
scheme); and fees collected at government-run vehicle test centres, as well as a percentage of the
fees collected from privately-run vehicle test centres.
The challenges faced by Transcorp are:
● An aging transport infrastructure – maintenance costs and accidents are rising and causing
costs for the health system and the wider economy and the cost to business of lost time.
● Strategies for road and rail transport have in the past been managed independently with the
result that some areas of the country have been provided with too much and others with too
little road and rail capacity.
● A challenging economic situation with falling tax revenues with the result that Transcorp has to
deliver annual efficiency savings of at least 5%.
● Driver licenses and annual road fund tax and third party insurance certificates are provided at
local offices with limited opening times. The public are increasingly demanding that these
services be provided on-line.
● In spite of relatively well developed project and programme management practices at an
initiative-level, there are regular delays in delivery for the following reasons: an absence of a
consistent business change lifecycle incorporating regular stage/phase gate reviews; a failure
to effectively manage dependencies between initiatives; and ineffective scheduling of initiative
access to limited IT test facilities. These problems need to be addressed urgently.
● An organizational culture with little focus on the customer.
● A track record of failure in terms of realizing benefits from business change programmes.
A new Chief Executive has recently been appointed to work on the following agenda:
● Developing an integrated transport strategy to ensure the available investment in road, rail and
air infrastructure is optimized.

continued
● Closer working with the delivery partners described above.

● Out-sourcing services where it is cost-effective to do so.
● Attracting private capital to solve the problem of aging road and rail infrastructure.
● Delivering a cultural change programme – putting the customer at the heart of everything
Transcorp does.
The challenges are great but they are relatively clear and well-established i.e. the above agenda is
expected to remain unaltered for the duration of the current planning period.
The Treasury are encouraging departments and agencies, including Transcorp, to adopt portfolio
management as a means to:
● Prioritize their investments in change to optimize strategic contribution.

● Improve initiative delivery.
● Optimize benefits realization, including delivery of cashable savings, to help organizations live
within the constraints of reduced budgets.
The Chief Executive is keen that Transcorp are seen to be taking the lead in this initiative. She has
appointed an experienced Portfolio Director to join the Management Board. All change initiatives
are now included within the scope of the Transformational Change Portfolio (TCP) including:
● A customer insight programme to improve understanding of customer behaviour.

● Channel shift (moving information and transaction services on-line) to improve customer
service and help deliver the required savings.
● Outsourcing back office functions to deliver efficiency savings.
● Privatisation of existing and planned toll roads.
● Re-negotiation of contracts with the train operators.
Following a review of the efficiency and effectiveness of current practices, an action plan has been
prepared to address the main weaknesses. This includes adopting the MoP portfolio definition and
delivery practices, roles and documentation and:
● A ‘service value chain’ is to be prepared to inform portfolio prioritization.

● A three year Portfolio Strategy and prioritized annual Delivery Plan is to be prepared.
● Progress against the Delivery Plan is to be reported in a monthly Portfolio Dashboard Report.
● There is to be regular updated reporting by initiatives to the Portfolio Office via the use of a
software planning and reporting tool.
The governance model for the TCP is based on the establishment of:
● A Portfolio Investment Committee (PIC) to: oversee the portfolio definition cycle; approve
the inclusion of new initiatives in the TCP via a rigorous start gate; and ensure the portfolio
remains strategically aligned including via six monthly portfolio-level reviews.
● A Portfolio Change Committee (PCC) to: oversee the portfolio delivery cycle, including
monitoring the use of limited resources and initiative progress via regular stage gate reviews
and the TCP Dashboard Report.

continued
● A small Portfolio Office to coordinate the portfolio management practices and support the
Portfolio Director, PIC and PCC. The Portfolio Office is headed by a Portfolio Manager who
reports to the Portfolio Director. The latter sits on both the PIC and PCC. The Portfolio Office
includes a Portfolio Benefits Manager.
To help implement portfolio management, it has been decided that a Portfolio Management Forum
(PMF) will be established with representatives from all relevant disciplines and divisions, to promote
understanding and dissemination of lessons learned.
End of Scenario

Question 1: Implement, sustain and measure - Additional Information
The Portfolio Manager has agreed with the Portfolio Director that a suite of measures will be used to
measure the progress of the portfolio and of portfolio management. In determining what is reported,
the management by exception technique will be applied. Measures and indicators will be monitored
under the following headings in the Portfolio Dashboard Report:
● Initiative: Progress information against key delivery milestones, risks and costs for individual
initiatives.
● Portfolio: Portfolio-level indicators on overall risk, budget, resource and benefits realization.
● Practices: Performance of the portfolio management practices.
The following data has been collected by the Portfolio Office.
1. Based on lessons learned from early implementations, the Portfolio Change Committee has
agreed a change to the way in which limited IT resources will be allocated.
2. Due to the Channel shift and Privatisation of toll roads initiatives reporting a dramatic increase
in the use of external contractors, the overall TCP forecast consultancy spend now exceeds
budget by 12%, which exceeds the tolerance set.
3. Efficiency savings from the Outsourcing initiative exceed the forecast by 15%.
4. The overall risk status of the Train operator re-negotiation initiative has changed to 'very high'.
5. The Customer insight programme has slipped behind schedule by 1 week but is still within
tolerance.

Question 2: Portfolio definition cycle - Additional Information
Transcorp’s PIC has recently agreed a revised set of categories to be applied to the TCP, with
tailored investment criteria for each category reflecting the primary investment rationale as shown
below.
Category/Primary Investment criteria

investment rationale
‘Efficiency savings’ and Highest net present value (NPV) subject to:
‘Revenue generation’
● Meeting the company’s hurdle rate of return of 10%; and
● Achieving payback within two years in undiscounted terms
and three years in discounted terms.
Where available funds are limited, initiatives are prioritized to

maximize the combined NPV from the available funds subject to
the two factors above.
‘Strategic contribution’ Initiatives are rated according to their ‘attractiveness’ and
‘achievability’ by an assessment of initiatives against a series of
factors. Initiatives are then assigned to one of three sub-
categories:
● ‘Invest’ - those that achieve a weighted rating of 7.5 or more

out of 10 for both ‘attractiveness’ and ‘achievability’
● ‘Potentially invest’ – those that receive a weighted rating of
3.5 or more out of 10 for both ‘attractiveness’ and
‘achievability’ but which don’t meet the criteria for the ‘Invest’
category
● ‘Reject’ – those initiatives with a weighted rating of less than
3.5 out of ten for either ‘attractiveness’ or ‘achievability’.
For those initiatives in the ‘potentially invest’ sub-category the

Senior Responsible Owner (SRO) will be asked to write a report
to explain which actions are required to achieve the minimum
ratings for the ‘invest’ category.

continued
An extract of the data applying to five selected initiatives from the ‘efficiency savings’ and ‘revenue
generation’ categories is shown below.
Note: Cash flows have been discounted at 10%, Transcorp’s cost of capital.
Initiative 1 Year Year Year Year Year Year

Full life cost £7,500,000 0 1 2 3 4 5 Totals
£10,000's £10,000's £10,000's £10,000's £10,000's £10,000's £10,000's
Benefits 0 175 200 200 200 200 975
Costs 0 150 150 150 150 150 750
Annual Net Flow 0 25 50 50 50 50 225
Annual NPV 0 23 41 38 34 31 167
Cumulative net flow 0 25 75 125 175 225
Cumulative NPV 0 23 64 102 136 167

£10,000's £10,000's £10,000's £10,000's £10,000's £10,000's £10,000's
Benefits 0 90 90 90 90 65 425
Costs 125 20 20 20 20 20 225
Annual Net Flow -125 70 70 70 70 45 200
Annual NPV -125 64 58 53 48 28 125
Cumulative net flow -125 -55 15 85 155 200
Cumulative NPV -125 -61 -4 49 97 125

£10,000's £10,000's £10,000's £10,000's £10,000's £10,000's £10,000's
Benefits 0 250 250 250 240 240 1230
Costs 200 120 120 120 120 120 800
Annual Net Flow -200 130 130 130 120 120 430
Annual NPV -200 118 107 98 82 75 280
Cumulative net flow -200 -70 60 190 310 430
Cumulative NPV -200 -82 26 123 205 280

continued

£10,000's £10,000's £10,000's £10,000's £10,000's £10,000's £10,000's
Benefits 0 40 70 70 70 70 320
Costs 0 90 30 30 35 40 225
Annual Net Flow 0 -50 40 40 35 30 95
Annual NPV 0 -45 33 30 24 19 60
Cumulative net flow 0 -50 -10 30 65 95
Cumulative NPV 0 -45 -12 18 42 60

£10,000's £10,000's £10,000's £10,000's £10,000's £10,000's £10,000's
Benefits 0 50 75 75 75 75 350
Costs 75 50 50 50 50 50 325
Annual Net Flow -75 0 25 25 25 25 25
Annual NPV -75 0 21 19 17 16 -3
Cumulative net flow -75 -75 -50 -25 0 25
Cumulative NPV -75 -75 -54 -36 -18 -3
The factors used to assess initiatives in the ‘Strategic contribution’ category are:
Weighting
Attractiveness
Contribution to strategic objectives .50
Confidence in benefits forecast .25
Stakeholder commitment to the business changes on .25
which benefits realization is dependent
Achievability
Quality of logical dependency management .25
Quality of logistical dependency management .25
Quality of risk management .25
Adequacy of resource provision .25

continued
An extract from the assessment of two initiatives undertaken to date is shown in the table below. Note
the table has been partly completed. The remaining entries need to be completed as part of
this question.
Weighting Initiative 6 Initiative 7

‘Attractiveness’ Score out Weighted Score out Weighted
of 10 Score of 10 Score
Scale of strategic .50 8 4 6
contribution
Confidence in benefits .25 6 1.5 4 1
forecast
Stakeholder .25 8 2 6 1.5
commitment to the
business changes on
which benefits
realization is
dependent
Sub-total 1.0 7.5
‘Achievability’ Score out Weighted Score out Weighted
of 10 Score of 10 Score
Quality of logical .25 4 8
dependency
management
Quality of logistical .25 6 8
dependency
management
Quality of risk .25 8 2 6 1.5
management
Adequacy of resource .25 8 2 8 2
provision
Sub-total 1.0 Score out Score out
of 10 of 10

Question 3: Portfolio delivery cycle - Additional Information
Additional information for question 3C
Extract from notes from an internal review meeting held by the Portfolio Office.
1. The outsourcing back office functions initiative is at least one month behind schedule.
This is because the stage/phase gate review found that insufficient investigation had
been made into the number of staff members who will not be redeployed, and the
resulting cost implications of the associated redundancy payments - which will need to
be funded from the portfolio budget. This work needs to be completed as a matter of
priority, and a further review meeting has been arranged for one month’s time. This
exceeds the agreed control limit.
2. The customer insight initiative has compiled its business case using different rules to the
other initiatives in the current portfolio. The reason they have given for doing this is that
the benefits cannot easily be expressed in monetary terms.
Additional information for question 3D
Extract from TCP Portfolio Benefits Management Framework
Benefits Eligibility Guidance
Benefits should be categorized as one of the following:
1. Economic benefits – doing the same things, but more cheaply or with fewer resources
2. Effectiveness benefits – doing things in a different way or to a higher standard.
3. Efficiency benefits – doing more things with the same resources.
Additionally benefits in each of the above categories will be sub-categorized as:
1. Cashable – the benefit is directly measurable in financial terms, e.g. directly attributable cost
savings or increased income.
2. Non-cashable – the benefit is NOT directly measurable in financial terms, but still represents a
quantifiable improvement, e.g. quicker response to customer enquiries.

continued
Additional Information for part-question 3E
The Portfolio Management Framework includes the following guidance on control limits relating to the
escalation of variances.
Control Limits for escalation

Type of variance
Level 1 Level 2 Level 3
Cost to deliver an Between +/- 3.01%
Up to and including Greater than +/- 6.01%
initiative (budget) and +/- 6% and
+/- 3% and and
(against Portfolio +/- £20,001 and
+/- £20,000 +/- £50,001
Financial Plan) +/- £50,000
Time to deliver an
initiative Up to and including Between +/- 3.01% Greater than
(% elapsed time +/- 3% and/or +/- 1 and +/-6% and/or +/- 3 +/- 6.01% and/or
against Portfolio month months greater than 3 months
Delivery Plan)
Amount of Risk
(% of aggregated
financial exposure to Up to and including Between +/-3.01% and Greater than
risk using corporate +/- 3% +/- 6% +/-6.01%
risk management
criteria)
Predicted benefits
Between +/- 3.01%
(over 5 years following Up to and including +/- Greater than +/- 6.01%
and +/- 6% and/or
delivery against 3% and/or and/or
+/- £50,001 and +/-
Portfolio Benefits +/- £50,000 +/- £100,001
£100,000
Realization Plan)
Escalated to / Portfolio Change Portfolio Investment
Portfolio Office
reviewed by Committee Committee

continued
Notes:
1. A positive figure (+) is greater than predicted or behind schedule.

2. A negative figure (-) is less than predicted or ahead of schedule.
3. Variances in cost to deliver will only be escalated to a higher level of governance when both the
percentage and the monetary/time control limits are exceeded. Where only one figure is
exceeded (e.g. the percentage control limit is exceeded but the monetary control limit is not),
then the initiative will be reviewed by the lower level of review body (e.g. the percentage
variance falls into level 2, but the monetary variance falls into level 1, then the level 1 governance
authority (the Portfolio Office) will review the variance).
4. There is not always a requirement to review a variance on risk exposure that is less than the
acceptable level for that initiative (a negative percentage). The Portfolio Office will assess the
potential impact on portfolio level risk in case of any dependencies between risks, and include
this information should they decide to escalate this for further review to a higher level.
5. Each level of review body may choose to escalate to a higher level for further review should they
identify a need to do so.
The Portfolio Office has collected the following data for three of the initiatives within the portfolio.
Initiative 8 Initiative 9 Initiative 10

Budget year to date £750,000 £1,637,000 £980,500
Actual spend year to date £800,000 £1,571,520 £1,000,200
(Variance from plan) (+6.6%) (-4%) (+2%)
Original target time to deliver 16 months 27 months 10 months
Current forecast time to deliver 17 months 26 months 10 months
(Variance from plan) (+6.25%) (-3.7%) (0%)
Agreed acceptable level of risk £37,500 £114,590 £68,635
exposure (5% of budget) (7% of budget) (7% of budget)
Current aggregated level of risk £39,750 £110,000 £69,115
exposure
(Variance from plan) (+6%) (-4%) (+0.6%)
Forecast Benefit value (over 5 £1,200,000 £9,000,000 £1,750,000
years following delivery)
Revised 5 year benefits forecast £1,450,000 £8,450,000 £1,651,000
(Variance from plan) (+20.8%) (-6.1%) (-5.7%)

Question 4: Roles and documentation - Additional Information
Additional Information for part-question 4C
Extracts from the Portfolio Management Framework
(All entries are true statements but may NOT be complete or shown under the correct heading or in
the correct document).
Section A: Objectives of portfolio management.
1. Attract private capital to address issues of aging road and rail infrastructure.
2. Development and application of common, standardized, initiative delivery practices across
Transcorp. This is to address the absence of a consistent business change cycle, failure to
manage dependencies between initiatives, and ineffective scheduling of access to limited IT
test facilities.
Section B: The investment criteria and portfolio categorization/segmentation to be used.
3. Benefits will be categorized into the following categories: economic, effectiveness and
efficiency. They are then sub-categorized as cashable or non-cashable.
4. Payback period will be used to inform prioritization of initiatives in the ‘efficiency savings’
segment.
Section D: Regular performance reporting and change control
5. Portfolio-level reviews are to be held on a six-monthly basis.

6. Approval of new initiatives in the TCP is the responsibility of the PIC.
Section E: The governance framework
7. The Portfolio Office will coordinate the portfolio management practices.

8. The PCC will oversee the portfolio delivery cycle, including monitoring the use of limited
resources and initiative progress.
Section H: Overview of the portfolio-level strategies for benefits, finance, risk and resource
management and for stakeholder engagement.
9. A Portfolio Management Forum will be established with representatives from all relevant
disciplines and divisions to promote understanding and dissemination of lessons learned.
10. The status of key risks to the prioritized annual delivery plan is reported in a monthly dashboard
report.
Note: the other sections are as follows: Section C – The Business Change Lifecycle; Section F –
Terms of Reference for the portfolio boards; and Section G – Role descriptions for the main portfolio
positions.

continued
Additional Information for part question 4D
Extract from the Draft Portfolio Delivery Plan - Key risks mitigation action plan (contains
errors).
Risk Description Recommend Recommended Risk

Number Key: Cause (CA); Event Risk Owner Mitigation Action Plan
(EV); Effect (EF) (See Note
below)
1 (CA) Because of Transcorp’s Portfolio • Motivate employees
track record of failure in Manager with a mutual and
terms of previous business shared desire to
change programmes enable the TCP to
(EV) There is a risk that the succeed.
Transformational Change
Programme (TCP) is seen as
just another initiative
(EF) The benefits of the TCP
will not be realized.
2 (CA) Because of ineffective Portfolio • Ensure that access
scheduling of initiative Benefits to limited IT test
access to IT test facilities Manager facilities for the on-
(EV) There is a risk that the line services
channel shift initiative to initiative is
improve customer service by appropriately
moving transaction services scheduled.
on-line is not prioritized
(EF) Realizing efficiency
benefits will be delayed.
3 (CA) Because the road and Portfolio • Overcome
rail strategies have been Manager resistance by
developed almost providing leadership
independently for the
(EV) There is a risk that there implementation of
will be resistance to an the TCP.
integrated transport strategy
(EF) Investment in road, rail
and air infrastructure will not
be optimized.

continued
4 (CA) Because of Transcorp’s Portfolio Office • Use the Portfolio

rising maintenance costs for Strategy to help
the aging infrastructure stakeholders
(EV) There is a risk that the understand what the
change initiatives conflict with TCP is designed to
business-as-usual activities achieve in the longer
(EF) Achievement of the year- term.
on-year efficiency savings will
be delayed.
5 (CA) Because of limited Portfolio • Monitor
opening times at local offices Manager management of the
for driver licenses and road dependencies
fund certificates between the
(EV) There is a risk that staff outsourcing of back
in local offices see the channel office functions and
shift initiative as a threat to channel shift
jobs initiatives to ensure
(EF) Outsourcing back office delivery is not
functions and efficiency compromised.
savings will be delayed
Note: Transcorp’s Portfolio Management Framework uses the description of a risk owner derived
from the organization’s Risk Management Strategy as follows: ‘Risk Owner – A role or individual
responsible for the management and control of all aspects of individual risks, including the
implementation of the measures taken in respect of each risk.’

RX02
Question Booklet


Syllabus areas covered:
Question 1 - Implement, sustain and measure
Question 2 - Portfolio definition cycle
Question 3 - Portfolio delivery cycle
Question 4 - Roles and documentation

Question Number 1
Syllabus Area Implement, sustain and measure

Implement, sustain and measure 1 A 5
Answer the following question about the relationship between the Portfolio Office and Transcorp’s other
organizational functions/activities in managing the Transformational Change Portfolio (TCP).
Column 1 is a list of proposed actions. For each action in Column 1, select from Column 2 the function or activity
that the Portfolio Office will need to coordinate its activities MOST closely with. Each selection from Column 2 can
be used once, more than once or not at all.
Column 1 Column 2
1 Determining the accountability framework for managing delivery of the A Business as usual (BAU)
TCP.
B Strategic and business
2 Agreeing the metrics to be applied to the drivers and linkages in planning
Transcorp’s ‘service value chain’.
C Budgeting and resource
3 Designing a consistent business change lifecycle to apply across the allocation
TCP. D Programme and project
4 Undertaking an environmental scan using PESTLE analysis. management (PPM)
E Performance management
5 Assessing the capacity of Transcorp’s divisions to absorb the combined
business change impact of the TCP over the next 12-24 months. F Corporate governance

Implement, sustain and measure 1 B 5
Using the Scenario, answer the following questions about implementing, sustaining and measuring
Remember to select 2 answers to each question.

1 Which 2 actions would assist the implementation of portfolio management?
A The Portfolio Director should publicly champion portfolio management at Board level.
B The Portfolio Change Committee should approve changes to the investment criteria used to prioritize
initiatives for inclusion in the Transformational Change Portfolio.
C The Portfolio Investment Committee and Portfolio Change Committee should prioritize which portfolio
management practices will be implemented first.
D The existing processes for managing business change delivery should be retained to demonstrate that
Transcorp is not reinventing processes unnecessarily.
E An ad hoc approach to Transcorp's portfolio prioritization should be adopted until the Portfolio Strategy is
finalised.
2 Which 2 actions would help to sustain progress in the development of portfolio management within Transcorp?
A The Portfolio Management Forum should evaluate current initiatives to determine whether they are projects
or programmes.
B The Portfolio Management Forum should identify improvements to the portfolio management processes
through the use of lessons learned.
C The Portfolio Director should focus on the customer insight programme to ensure full management
commitment is given to this initiative.
D The Portfolio Director should encourage suggestions for improvements to the portfolio management
practices.
E To ensure continued management commitment, the Portfolio Director should avoid changes to the agreed
portfolio management practices during the implementation phase.
3 Which 2 actions would help measure the contribution of the portfolio to the achievement of Transcorp’s strategic
objectives?
A The Portfolio Office should compile a Portfolio Dashboard Report including initiative-level and portfolio-level
indicators.
B The Portfolio Management Forum should complete a portfolio management maturity assessment review.
C The Portfolio Investment Committee should consider each initiative in terms of its strategic attractiveness
and achievability.
D The Portfolio Benefits Manager should ensure metrics are agreed for regular assessment of benefits
realized.
E The Portfolio Office should collect data on current delivery status for all initiatives in the portfolio.

Question continued
4 Which 2 actions support Transcorp’s approach to implementation of portfolio management?

A The Portfolio Director should fill the role of Senior Responsible Owner (SRO) for the implementation of
B The Portfolio Director should clearly define the objectives that the three year Portfolio Strategy is expected to
deliver.
C The Portfolio Director should commission the Portfolio Management Forum to appraise comprehensive
portfolio management software solutions as a priority.
D The Portfolio Manager should identify business areas within Transcorp where portfolio management could
be successfully implemented in isolation.
E The Portfolio Office should work with each business unit to enable them to set their own investment criteria.
5 Which 2 actions support effective governance of the Transformational Change Portfolio?
A The Portfolio Change Committee should escalate issues where required to the Portfolio Investment
Committee.
B The Portfolio Management Forum should assume the scrutiny and challenge role of the Portfolio Office.
C The Portfolio Change Committee should delegate responsibility for managing initiative delivery to the
Portfolio Office.
D The Portfolio Investment Committee should take on responsibility for scheduling initiative access to the
limited IT test facilities.
E Meetings of Transcorp’s Portfolio Investment Committee should be scheduled close to meetings of the
Portfolio Change Committee.

Implement, sustain and measure 1 C 5
Using the Scenario, answer the following questions about portfolio governance including the Portfolio
Office.
1 The Portfolio Benefits Manager has proposed that an 'evolutionary' approach be adopted to the implementation
of portfolio management.
Is this an appropriate application of MoP for this scenario?

A No, because a 'big bang' approach is most appropriate where the business environment is mature with
strong senior management support.
B No, because an 'ad hoc' approach should be adopted where end-to-end portfolio management is not fully
embedded.
C Yes, because an 'evolutionary' approach is appropriate where the business strategy is subject to change.
D Yes, because an 'evolutionary' approach should have a desired end state.
2 The Portfolio Manager has proposed that a discrete portfolio managed separately by the IT function be created
by subdividing out the IT element of initiatives within the Transformation Change Portfolio.

A No, because sub-portfolios should be avoided where several organizations are working together.
B No, because it is important for portfolio governance to include review of all sub-portfolios to ensure optimal
investment decisions.
C Yes, because it is common for departments such as IT to have their own portfolios.
D Yes, because sub-portfolios are more appropriate where several organizations are working together.
3 The new Chief Executive of Transcorp has proposed that the Transformational Change Portfolio should include
an initiative to improve staff engagement.

A No, because the channel shift programme already aims to improve customer service.
B No, because the customer insight programme should address staff engagement.
C Yes, because a comfortable energy state is likely to encourage staff to solve problems.
D Yes, because improving engagement will move Transcorp towards a productive energy state.

Question continued
4 The Portfolio Office has proposed that they defer production of the Portfolio Dashboard Report by three months
because they are waiting for the 'Privatisation' initiative to report progress.
A No, because the Portfolio Office should be working closely with all the initiatives to ensure clear consistent
messages.
B No, because an incomplete Portfolio Dashboard Report would provide senior managers with useful
progress information.
C Yes, because the Portfolio Dashboard Report should include the status on key initiatives.
D Yes, because only a complete Portfolio Dashboard Report would support the technique of 'one version of
the truth'.
5 The Portfolio Manager, who heads the Portfolio Office, reports directly to the Portfolio Director.

A No, because the Portfolio Office should assume the duties of the Project and Programme offices.
B No, because a direct reporting line would compromise the Portfolio Office's assurance function.
C Yes, because the Portfolio Office should report directly to the management board champion.
D Yes, because the Portfolio Director should provide clear direction and leadership.

Implement, sustain and measure 1 D 5
answer the following question about information to be included in the Portfolio Dashboard Report as
part of measuring portfolio performance.
Each line in the table below consists of an assertion statement and a reason statement. For each line
identify the appropriate option, from options A to E, that applies. Each option can be used once, more
than once or not at all.
Option Assertion Reason

C True False
D False True
E False False
Assertion Reason
1 Entry 1 should be included under BECAUSE The Portfolio Dashboard Report should include status on
the ‘Initiative' heading. key initiatives and dependencies
2 Entry 2 should be included under BECAUSE An appropriate metric at portfolio-level would be the scale
the 'Portfolio' heading. and trend of reliance on external resources
3 Entry 3 should be included under BECAUSE The Portfolio Dashboard Report should include all the
the 'Initiative' heading. progress information from every initiative
4 Entry 4 should be included under BECAUSE The Portfolio Dashboard Report should include information
the 'Initiative' heading. on progress against key milestones.
5 Entry 5 should be included under BECAUSE The Portfolio Dashboard Report should include any delays
the 'Initiative' heading. on key initiatives

Question Number 2
Syllabus Area Portfolio definition cycle

Portfolio definition cycle 2 A 5
Answer the following question about the portfolio definition cycle.
Column 1 is a list of some of the activities undertaken as part of portfolio management in an MoP environment. For
each activity in Column 1, decide if it is undertaken as part of the portfolio definition cycle and indicate in which
order the activities should occur. One or more steps in the portfolio definition cycle may be missing.
Column 1 Column 2
1 A ‘decision conference’ is held to debate and rank the potential initiatives A NOT undertaken in the
in one of the sub-portfolios. portfolio definition cycle
2 The PIC undertakes the first six monthly portfolio-level review. B First
3 The Portfolio Office works with key areas of the business to review the
ranked list of initiatives to ensure sufficient coverage of all strategic C Second
objectives.
D Third
4 A survey is undertaken to identify all initiatives in the scoping phase prior to
‘go live’. E Fourth
5 The Portfolio Office allocates current initiatives to a category or sub-
F Fifth
portfolio.

Portfolio definition cycle 2 B 5
Answer the following question about portfolio definition techniques.
Column 1 is a list of areas of concern identified by the review of portfolio efficiency and effectiveness. For each
area of concern in Column 1, select from Column 2 the technique that is MOST appropriate to addressing the
concern. Each selection from Column 2 can be used once, more than once or not at all.
Column 1 Column 2
1 Staff suggestions for improved practices have generally been ignored. A Driver-based analysis
2 Board members find it difficult to prioritize potential initiatives. B Champion-challenger
3 Senior managers claim that decisions are taken outside the Boardroom about model
which initiatives to fund. C Three point estimating
4 Current approaches to forecasting don’t reflect the range of potential outcomes. D Pair-wise comparisons
5 Business case writers have had difficulty in relating initiative benefits to strategic E Decision conferencing
objectives because Transcorp’s value chain has not been clearly stated.

Portfolio definition cycle 2 C 5
Using the Scenario, answer the following question about the portfolio definition cycle.
Each line in the table below consists of an assertion statement and a reason statement. For each line select the

C True False
D False True
E False False
Assertion Reason
1 The risk potential assessment. supports the BECAUSE The risk potential assessment aids
assessment of initiative ‘attractiveness’. understanding of consequential impact
and complexity.
2 Approval of the TCP Delivery Plan by the PIC links BECAUSE Approval of the Delivery Plan means
strategic planning to resource allocation. approval for the resource allocations
required to deliver the agreed portfolio.
3 Completion of a ‘service value chain’ for Transcorp BECAUSE A ‘value profile’ provides a basis for
aids portfolio prioritization by providing a basis for quantifying the financial value of each
improved assessment of initiative ‘achievability’. initiative.
4 Use of the ‘champion-challenger’ model helps to BECAUSE The ‘champion-challenger’ model enables
engage the business as usual community in a collective decision to be reached on
prioritizing the portfolio. portfolio composition.
5 Selection of a set of appropriate portfolio categories BECAUSE A programme and project information
is aided by the use of a programme and project document facilitates collection of
information document. consistent data on all initiatives.

Portfolio definition cycle 2 D 5
Using the additional information provided for this question in the Scenario Booklet, answer the following
questions about portfolio prioritization.
1 If Transcorp only has £10 million to invest over five years in the ‘Efficiency savings’ and ‘Revenue generation’
categories it should only invest in initiative 3.

A No, because the combination of initiatives 1, 2 and 4 has a higher NPV.
B No, because the combination of initiatives 1 and 2 has a higher NPV.
C Yes, because initiative 3 has the highest NPV.
D Yes, because initiative 3 is the only initiative that meets all stipulated criteria.
2 If Transcorp has £12.5 million to invest over five years, and 25% of benefits can be retained to help fund
additional initiatives, it should invest in initiatives 1, 2, and 3.

A No, because initiative 4 also has a positive NPV.
B No, because initiatives 1, 2 and 3 are not affordable.
C Yes, because investing in three initiatives diversifies risk.
D Yes, because initiatives 1, 2 and 3 have the highest combined NPV from the available investment.
3 If Transcorp can borrow funds at its current cost of capital, it should invest in all initiatives 1 to 5.

A No, because initiative 5 has a negative net present value.
B No, because initiatives 4 and 5 do not meet the specified investment criteria.
C Yes, because this maximises the NPV return from the available funds.
D Yes, because funding is available now and may not be so in future.
4 In response to the ‘strategic contribution’ ratings, the SRO of initiative 6 has proposed the following action in
order to achieve the minimum rating for inclusion in the ‘invest’ sub-category: reviewing and agreeing all
‘giver’/’receiver’ relationships with other initiatives so as to improve the relevant rating to 8 out of 10.
Is this an appropriate action in the context of this scenario?

A No, because this will fail to deliver the required improvement to initiative 6’s rating for ‘Attractiveness’.
B No, because this will fail to deliver the required improvement to initiative 6’s rating for ‘Achievability’.
C Yes, because this will deliver the required improvement to initiative 6’s rating for ‘Attractiveness’.
D Yes, because this will deliver the required improvement to initiative 6’s rating for ‘Achievability’.

Question continued
5 In response to the initial ratings, the SRO of initiative 7 has proposed the following action designed to achieve
the minimum rating for inclusion in the ‘invest’ sub-category: application of optimism bias adjustments to the
benefits forecast so as to improve the relevant rating to 8 out of 10.
Is this an appropriate action in the context of this scenario?

A No, because this will fail to deliver the required improvement to initiative 7’s rating for ‘Attractiveness’.
B No, because this will fail to deliver the required improvement to initiative 7’s rating for ‘Achievability’.
C Yes, because this will deliver the required improvement to initiative 7’s rating for ‘Attractiveness’.
D Yes, because this will deliver the required improvement to initiative 7’s rating for ‘Achievability’.

Question Number 3
Syllabus Area Portfolio delivery cycle

Portfolio delivery cycle 3 A 5
Answer the following question about the resource management practice.
Transcorp has identified that the management of resources across the Transformation Change Portfolio (TCP) will
be essential to its success. Column 1 is a list of true statements about the Transcorp TCP. For each statement in
Column 1, decide if it demonstrates one of the resource management ‘Keys to success’ in Column 2 and select the
entry that it is MOST clearly demonstrating. Each selection from Column 2 may be used once, more than once or
not at all.
Column 1 Column 2
1 The Portfolio Office will consider call off arrangements for extra A This does not demonstrate one of the
capacity in the light of emerging demand for access to limited IT resource management keys to
test facilities. success.
2 A standing item on the agenda for the Portfolio Change B Set portfolio-wide standards for
Committee is to review all aspects of the TCP Portfolio Delivery resource forecasting.
Plan.
C Use business cases to create a
3 The business case for the customer insight programme has been portfolio resource schedule.
reviewed by the Portfolio Investment Committee to ensure that the
benefits match their expectations. D Review the resource schedule
regularly.
4 The Portfolio Office has produced a high-level plan summarising
the cost plans of the initiatives within the TCP covering the next E Implement dynamic resource
twelve months. management.
5 A Portfolio Management Framework has been drafted which
includes a resource management strategy to be used by all
initiatives within the TCP.

Portfolio delivery cycle 3 B 5
Answer the following question about the risk management practice.
Column 1 is a list of entries in the Transformational Change Portfolio (TCP) risk management strategy. For each
entry in Column 1, select from column 2 the ‘typical dependency management challenge’ that the entry is MOST
clearly addressing. Each selection from Column 2 may be used once, more than once or not at all.
Column 1 Column 2
1 Decision-conferencing workshops focussing on inter- A This does not address any of the typical
programme dependencies are to be facilitated by the Portfolio dependency management challenges.
Office.
B Dependency information is not readily
2 Logical dependencies between programmes are to be RAG available.
rated on the portfolio delivery schedule.
C Uncertainty about what type of
3 Any dependencies based on the use of the limited IT test dependencies exist.
facilities should be recorded as ’logistical’. D How to document and manage
4 Dependencies are to be entered into a project planning dependencies.
software tool and consolidated data will be updated monthly. E How to present complex information in an
easily understandable format.
5 The Portfolio Office will facilitate regular ‘face to face’
sessions between initiatives to improve shared understanding F What are the most important
of portfolio scope. dependencies?

Portfolio delivery cycle 3 C 3
answer the following question about the financial management practice.

C True False
D False True
E False False
Assertion Reason
1 Reduction in staffing as a result of outsourcing is BECAUSE Each business case should contain a financial
likely to have an impact on the portfolio financial plan which includes operating expenditure
plan. following implementation.
2 The delay to the outsourcing back office functions BECAUSE Release of funding should be linked to
initiative should be reported to PCC for review stage/phase gate reviews.
and a decision.
3 It is appropriate that the customer insight team BECAUSE Appropriate investment criteria should be
compile their business case in a way that reflects selected and tailored to each segment of the
the needs of the individual programme. portfolio.

Portfolio delivery cycle 3 D 4
answer the following questions about the Benefits Management Practice.
1 The objectives for the Channel Shift initiative include moving information and transaction services on-line.
Benefits to customers in this area have been identified as being primarily in the ‘Efficiency / Non-cashable’
category.

A No, because one of the objectives of the channel shift initiative is to help deliver the required financial
savings.
B No, because allowing on-line access to services rather than requiring a visit to a local office would be better
categorized as ‘Effectiveness’ from a customer perspective.
C Yes, because the current organizational culture demonstrates little focus on the needs of the customer.
D Yes, because there is widespread public demand for services such as issue of certificates to be available
on-line.
2 As a result of offering on-line access to information and transaction services, it is proposed to reduce the
number of local offices offering over-the-counter services to issue driver licences and road fund tax certificates. It
is recognised that this may disadvantage some customers, who will have to travel further if they need to visit one
of the offices, but it will result in considerable cost savings to Transcorp. The programme delivery team for the
Channel Shift initiative have categorized the benefits in this area as ‘Cost Reduction / Cashable’.

A No, because this is not one of the categories that has been defined in the portfolio Benefits Management
Framework.
B No, because anything that might be seen as a disadvantage to customers cannot be considered to be a
benefit.
C Yes, because benefits should be categorized in a way that is relevant to the individual initiatives within the
portfolio.
D Yes, because it is the responsibility of the programme management team to identify and map all benefits
relating to an initiative.

Question continued
3 As part of the Channel Shift initiative, the customer helpdesk processes to deal with customer enquiries are
being redesigned. It is planned to streamline these processes which should result in shorter waiting times for
customers, and a higher percentage of queries being resolved at the first call. Benefits to customers in this area
have been categorized as ‘Effectiveness / Non-cashable’.

A No, because streamlining processes should result in economic benefits to Transcorp, in that fewer staff
members will be needed for the helpdesk.
B No, because a higher percentage of calls dealt with at the first call should mean that fewer staff are required,
with cost savings to Transcorp.
C Yes, because a culture change to put the customer at the heart of what Transcorp does is an objective of
TCP.
D Yes, because this should result in a better service to customers, measured in terms of time saved and
number of queries resolved as a result of the first call. However, from the customer perspective this is Non-
Cashable
4 The Portfolio Change Committee has asked that the monthly Portfolio Dashboard Report include estimates of
the likelihood of achieving the predicted benefits for each initiative and an assessment of progress against the
portfolio-level Benefits Realization Plan.

A No, because the Portfolio Benefits Manager should be collating this information and reporting ongoing
progress to the Portfolio Change Committee.
B No, because in the early stages of an initiative it is often difficult to forecast with any certainty the level of
benefit likely to be achieved.
C Yes, because ongoing monitoring of benefit forecasts will help to assess whether the portfolio is on target to
meet strategic objectives.
D Yes, because benefit owners within the individual initiatives should commit to benefit realization activity
following formal closure of the initiative.

Portfolio delivery cycle 3 E 3
answer the following questions about reporting variances.

1 Which 2 statements about initiative 8 are correct?
A No action is needed on the variance in benefits because the increase in forecast benefits is greater than the
increase in spend to date.
B The initiative should be escalated to the Portfolio Investment Committee for review because the benefits
variance is greater than £100,000.
C The Portfolio Change Committee should review the overrun on time, because the variance is 6.25% of the
original figure.
D The Portfolio Change Committee should review the variance against budget because it exceeds the level 2
control limit of £20,000.
E The Portfolio Investment Committee should review the variance against budget because it exceeds the level
3 control limit of 6.01%.
A The cost variance should be reviewed by the Portfolio Investment Committee because it exceeds the control
limit of £50,000.
B The Portfolio Office should be the first to review the variance on aggregated risk because this is less than
the acceptable level.
C The Portfolio Change Committee should be the first to review the variance on aggregated risk because this
falls within the control limit for a level 2 escalation.
D No action needs to be taken on the budget variance because the forecast decrease in spend is accounted
for by the variance in time.
E The cost variance should be reviewed by the Portfolio Change Committee because it falls within the control
limit percentage for a level 2 escalation.
A No action is required because the Portfolio Office should provide support and guidance to change initiatives
as part of its normal role.
B No action is required because the initiative is still predicted to deliver on time and to achieve the forecast
benefits.
C The Portfolio Office should review the budget variance because it is within the control limits for level 1
escalation.
D The benefit variance should be escalated to Portfolio Change Committee because the percentage variance
falls within the level 2 control limits.
E The Portfolio Investment Committee should review the benefit variance because it exceeds the control limit
of £100,000.

Question Number 4
Syllabus Area Roles and documentation

Roles and documentation 4 A 5
Answer the following question about portfolio-level documentation.
Column 1 is a list of information relevant to Transcorp’s TCP. For each statement in Column 1, select from Column
2 the MoP document in which it is MOST likely to appear. Each selection from Column 2 can be used once, more
than once or not at all.
Column 1 Column 2
1 Stage gates for initiatives included within the TCP will be A Portfolio Dashboard Report
undertaken by the PCC.
B Portfolio Benefits Management
2 Year to date utilization rates for the IT test facilities for which there Framework
is limited availability.
C Portfolio Management Framework
3 Portfolio-level reviews will be undertaken on a six monthly basis
by the PIC. D Portfolio Financial Plan
4 Efficiency savings will be split into cashable and non-cashable E Portfolio Benefits Realization Plan
categories.
5 Cashable efficiency savings of £3m are forecast for the coming
year.

Roles and documentation 4 B 5
Answer the following question about portfolio-level roles.
Column 1 is a list of actions relating to Transcorp’s TCP. For each statement in Column 1, select from Column 2
the MOST appropriate role responsible for carrying out that action. Each selection from Column 2 can be used
Column 1 Column 2
1 Deciding what action to take in response to the review of portfolio management A Portfolio Benefits
efficiency and effectiveness. Manager
2 Agreeing a change to the control limits for reporting variances from +/- 15% to 20%. B Portfolio Director
3 Delivering the keynote address at the first Portfolio Management Forum. C Portfolio Change
4 Hosting a meeting with the business change managers from across the organization Committee
to discuss how benefits realization can be improved via more effective business D Portfolio Manager
change delivery.
E Portfolio Investment
5 Holding a meeting with project and programme managers to discuss how IT test Committee
facilities can be more effectively utilized.

Roles and documentation 4 C 5
Using the additional information provided for this question in the Scenario Booklet, answer the following
question.
Remember to select 2 answers to each question.
1 Which 2 statements apply to Section A?

A No change to entry 1 because this is an objective of portfolio management for Transcorp.
B Amend entry 1 to include infrastructure supporting air travel.
C Delete entry 1 because this refers to an objective of the Transformational Change Portfolio and as such
should appear in the Portfolio Strategy.
D No change entry to 2 because this is an objective of portfolio management within Transcorp.
E Move entry 2 to the Portfolio Strategy because this refers to an objective of the Transformational Change
Portfolio.
2 Which 2 statements apply to Section B?
A Move entry 3 to Section H because this relates to the portfolio-level strategy for benefits management.
B Delete entry 3 because it is relevant to the Benefits Realization Plan.
C No change to entry 3 because this concerns how the benefits of Transformational Change Portfolio initiatives
are categorized.
D Delete entry 4 because this belongs in the Portfolio Financial Plan.
E No change to entry 4 because this defines how initiatives in one portfolio category will be prioritized.
A Delete entry 5 because it relates to the Portfolio Dashboard Report.
B Move entry 5 because this relates to the ‘business change lifecycle’ section.
C No change to entry 5 because a review of portfolio performance is a key part of portfolio-level reviews.
D Move entry 6 to the section dealing with the terms of reference for the main portfolio boards because the PIC
approves initiatives.
E No change to entry 6 because it describes change control at the portfolio level.
4 Which 2 statements apply to Section E?
A Move entry 7 to Section F because it concerns terms of reference for management of the portfolio.
B Delete entry 7 because it belongs in the ‘roles and responsibilities’ section in the Portfolio Benefits
Management Framework.
C Amend entry 7 to add the support given by the Portfolio Office to the Portfolio Director, PIC and PCC.
D No change to entry 8 because it relates to the TCP governance framework.
E Move entry 8 to Section F because it concerns the terms of reference for one of the main portfolio boards.

Question continued
5 Which 2 statements apply to Section H?

A No change to entry 9 because it refers to stakeholder management.
B Move entry 9 to Section A because it is an objective of portfolio management.
C Delete entry 9 because it belongs to the Portfolio Stakeholder Engagement & Communication Plan.
D Move entry 10 to Section A because the objectives of portfolio management include effective management
of risk to delivery.
E No change to entry 10 because it is part of the portfolio-level strategy for risk management.

Roles and documentation 4 D 5
Using the Scenario and the additional information provided for this question in the Scenario booklet,
answer the following question about the appropriate involvement of roles documented in the Draft
Portfolio Delivery Plan.

C True False
D False True
E False False
Assertion Reason
1 For Risk 1, the risk owner is appropriate for BECAUSE The Portfolio Manager is responsible for promoting
the mitigation action. a positive attitude towards change.
2 For Risk 2, it is appropriate to change the BECAUSE The Portfolio Manager is responsible for ensuring
risk owner to the Portfolio Manager. that constraints are identified and dealt with.
3 For Risk 3, the Portfolio Director should be BECAUSE The Portfolio Director should champion the
the owner for the mitigation action. implementation of portfolio management across the
organization.
4 For Risk 4, the Portfolio Office is an BECAUSE The Portfolio Office includes a Portfolio Benefits
appropriate choice of risk owner. Manager.
5 For Risk 5, it is NOT appropriate for the BECAUSE The Investment Committee monitors the effective
Portfolio Manager to own the mitigation management of dependencies.
action for this risk.

Note: For Multiple Response (MR) questions, 1 point is
scored if and only if all correct options are selected.
Marking Scheme
Otherwise 0 points are scored.

1 (IS) A MG 1 0 0 0 0 0 1
2 0 0 0 0 1 0
3 0 0 0 1 0 0
4 0 1 0 0 0 0
5 1 0 0 0 0 0
B MR 1 1 0 1 0 0
2 0 1 0 1 0
3 1 0 0 1 0
4 1 1 0 0 0
5 1 0 0 0 1
C CL 1 1 0 0 0
2 0 1 0 0
3 0 0 0 1
4 0 1 0 0
5 0 0 1 0
D AR 1 0 0 0 1 0
2 1 0 0 0 0
3 0 0 0 0 1
4 0 1 0 0 0
5 0 0 0 0 1

2 (DF) A MG 1 0 0 0 1 0 0
2 1 0 0 0 0 0
3 0 0 0 0 1 0
4 0 1 0 0 0 0
5 0 0 1 0 0 0
B MG 1 0 1 0 0 0
2 0 0 0 1 0
3 0 0 0 0 1
4 0 0 1 0 0
5 1 0 0 0 0
C AR 1 0 0 0 1 0
2 1 0 0 0 0
3 0 0 0 0 1
4 0 0 0 0 1
5 0 0 0 1 0
D CL 1 0 1 0 0
2 0 0 0 1
3 0 1 0 0
4 0 0 0 1
5 1 0 0 0
3 (DL) A MG 1 0 0 0 0 1
2 0 0 0 1 0
3 1 0 0 0 0
4 1 0 0 0 0
5 0 1 0 0 0
B MG 1 0 0 0 0 0 1
2 0 0 0 0 1 0
3 0 0 1 0 0 0
4 0 0 0 1 0 0
5 0 1 0 0 0 0
C AR 1 0 1 0 0 0
2 0 1 0 0 0
3 0 0 0 1 0
D CL 1 0 1 0 0
2 1 0 0 0
3 0 0 0 1
4 0 0 1 0
E MR 1 0 1 0 1 0
2 0 1 0 0 1
3 0 0 1 1 0

4 (RD) A MG 1 0 0 1 0 0
2 1 0 0 0 0
3 0 0 1 0 0
4 0 1 0 0 0
5 0 0 0 0 1
B MG 1 0 0 0 0 1
2 0 0 1 0 0
3 0 1 0 0 0
4 1 0 0 0 0
5 0 0 0 1 0
C MR 1 0 0 1 1 0
2 1 0 0 0 1
3 0 1 0 1 0
4 0 0 1 0 1
5 1 0 0 0 1
D AR 1 0 0 0 0 1
2 1 0 0 0 0
3 0 1 0 0 0
4 0 0 0 1 0
5 0 0 0 0 1
Rationale

Question: 1, Syllabus: IS, Part: A, Type: MG, SyllabusRef: IS0301, Level: 3
1 Correct [F]: Portfolio management supports effective corporate governance as it enhances
effective accountability and provides a framework for managing portfolio delivery
(Section 3.7).
2 Correct [E]: Portfolio management will work closely with the performance management function
in designing and implementing new portfolio performance metrics and driver-
based models to demonstrate the contribution of initiative benefits to strategic
objectives (Section 3.6, Table 3.1).
3 Correct [D]: The Portfolio Office will coordinate its activities with the organization’s project and
programme management professionals in developing fit-for-purpose standards
and processes, including the business change lifecycle which guides the delivery
of projects and programmes (Section 3.5, Table 3.1, Glossary).
4 Correct [B]: An environmental or horizon scan will be undertaken as part of the process of
determining strategic objectives. During strategic planning the Portfolio Office will
work closely with the Strategic and business planning team (Sections 3.3, 6.2.2
and Table 3.1).
5 Correct [A]: In assessing Transcorp’s capacity to absorb the planned business changes, the
Portfolio Office will need to coordinate its activities with business as usual (BAU)
because benefits realization is dependent on the capacity of BAU to absorb the
required changes (Sections 3.2, 7.8.2).
Question: 1, Syllabus: IS, Part: B, Type: MR, SyllabusRef: IS0301, Level: 3
1 A Correct: Senior management commitment is a principle upon which successful portfolio
management is based. A 'key to success' of that principle is that a Management
Board member champions the implementation of portfolio management
(Sections 4.3, 5.4).
B Incorrect: Investment criteria are used as part of the prioritize practice in the portfolio
definition cycle. The Portfolio Investment Committee rather than the Portfolio
Change Committee approves changes to the practices within the portfolio
definition cycle (Appendix B).
C Correct: The scenario indicates that Transcorp has a history of delays due to an absence
of a consistent business change lifecycle etc, so prioritizing practices within the
implementation plan is appropriate (Sections 2.2, 5.3).
D Incorrect: Building on existing organizational processes and not reinventing processes or
changing things that do not need changing, assists the successful
implementation of portfolio management. However the scenario states that
Transcorp's business change lifecycle is inconsistent and that these
deficiencies need to be rectified as a matter of priority (Section 5.4).
E Incorrect: The use of a structured planned approach improves the likelihood of success.
The ‘ad hoc’ approach is most suited where senior management commitment is
absent. This is not the case with Transcorp (Sections 5.3, 5.4).
2 A Incorrect: Deciding what constitutes a project or programme would have been undertaken
on behalf of the Portfolio Investment Committee as part of the ‘understand’
practice during portfolio definition, but would not directly help to sustain portfolio
management (Section 6.2.2).
B Correct: Progress is sustained through a commitment to continuous improvement,
including identifying improvements to the portfolio management practices by
capturing lessons learned (Section 5.4).
C Incorrect: The Portfolio Director should champion the implementation of portfolio
management across the organization and promote an energized culture that is
focused on collaborative working in the interests of the organization as a whole
rather than focus on a single initiative (Appendix B).
D Correct: Continued progress is assisted by adopting a ‘champion-challenger’ model,
where processes are open to challenge and improvement, as a means of active
engagement with stakeholders (Section 5.4).
E Incorrect: Sustaining progress is aided by effective and ongoing stakeholder engagement
and by a commitment to continuous improvement. So avoiding changes to the
portfolio management practices during implementation is not appropriate
(Section 5.4, 7.6.2).
3 A Correct: Sustaining progress is aided by effective and ongoing stakeholder engagement
and by a commitment to continuous improvement. So avoiding changes to the
portfolio management practices during implementation is not appropriate
(Section 5.4, 7.6.2).
B Incorrect: Maturity assessments are concerned with assessing how processes compare
with best practice, rather than assessing the contribution of the portfolio to the
achievement of strategic objectives (Section 5.4 and Appendix F).
C Incorrect: Considering each initiative in terms of strategic attractiveness and achievability
would be appropriate as part of the prioritize practice during portfolio definition,
but would not help measure the actual contribution made by the portfolio to the
strategic objectives (Sections 5.4, 6.4.2 and Appendix F).
D Correct: Measuring portfolio impact is assisted by regular assessment of progress – not
just in terms of meeting milestones, but more significantly in relation to the
benefits realized (Sections 5.4, 7.2.2.3 and Appendix F).
E Incorrect: Assessing delivery status would not directly measure the contribution of the
portfolio to the strategic objectives (Table 6.1).
4 A Correct: Transcorp is taking a planned approach and it is therefore appropriate for a
board-level member to fill the role of SRO for the implementation of portfolio
management (Section 5.3).
B Correct: The Portfolio Director is responsible for providing overall direction and
leadership for the implementation and delivery of the portfolio and the Portfolio
Strategy should include the objectives of the portfolio (Appendix B and Appendix
E).
C Incorrect: Software solutions are not a prerequisite for effective portfolio management
(Section 5.4).
D Incorrect: Identifying business areas within Transcorp where portfolio management could
be successfully implemented in isolation would represent an ‘ad-hoc’ approach
where implementation is more opportunistic. This is not appropriate in this
scenario as there is strong senior management support for implementation
(Table 5.1).
E Incorrect: A standard set of investment criteria is one of the first steps in implementation
because it helps provide a level playing field for investment appraisal and
portfolio prioritization. Investment criteria should be tailored to suit the portfolio
segment rather than the business unit (Section 2.2 and Table 6.7).
5 A Correct: A PPG/Change Delivery Committee (or equivalent) escalates issues where
required to the PDG/Investment Committee or the management board (Table
4.2).
B Incorrect: To be fully effective the Portfolio Office should have sufficient organizational
status to help overcome silo-based interests and to demonstrate the importance
of effective portfolio management across the organization. The purpose of the
Portfolio Management Forum is to promote understanding and dissemination of
lessons learned – but it would not be appropriate for the Portfolio Office to give
up its scrutiny and challenge role (Section 4.6).
C Incorrect: The Portfolio Office should have no delivery responsibility so that they are able
to make objective assessments (Sections 7.7.2, 4.4).
D Incorrect: The Portfolio Office, not the Portfolio Investment Committee, should resolve
conflicts for scarce and costly resources which could be technical, PPM or
business resources (Section 4.6.1).
E Correct: A ‘key to success’ of the ‘Governance alignment’ principle is that meeting
schedules should be aligned. This facilitates more effective, coordinated
decision making due to the consideration of consistent data (Table 4.2 and
Section 7.7.2).
Question: 1, Syllabus: IS, Part: C, Type: CL, SyllabusRef: IS0401, Level: 4
1 A Correct: Transcorp have decided on a three-year strategy to adopt MoP, there is strong
senior management support and their business is stable. In such circumstances
the ‘big bang’ approach is most appropriate (Section 5.3).
B Incorrect: A more ‘ad hoc’ approach would be appropriate where existing practices are
less mature and where senior commitment to organization-wide, end-to-end
portfolio management is less well embedded. However in this scenario, senior
management have committed to the adoption of MoP, so a 'big bang' approach
is more appropriate (Section 5.3).
C Incorrect: ‘Evolutionary’ approaches are particularly relevant in less stable environments
and where strategy is itself emergent. However in this scenario, senior
management have committed to the adoption of MoP and strategy is relatively
stable, so a 'big bang' approach is more appropriate (Section 5.3).
D Incorrect: Evolutionary approaches do require the desired end state to be kept in mind.
However in this scenario, senior management have committed to the adoption
of MoP so a 'big bang' approach is more appropriate (Section 5.3).
2 A Incorrect: Some organizations may require more complex portfolio governance structures,
particularly in the case where a number of organizations are working together.
However this does not explain why it would not be appropriate to establish a
separately managed IT portfolio (Section 4.4.2.2).
B Correct: It is important that sub-portfolios are reviewed to ensure that investment
decisions are optimal not only at the sub-portfolio/departmental level, but also at
the organizational or corporate portfolio level. This explains why it would be
inappropriate to sub-divide each change initiative and exclude the IT elements
from management of the TCP (Section 4.4.2.2).
C Incorrect: Although there could be a portfolio for each department such as IT, it would not
be appropriate to sub-divide each change initiative regardless of the IT content
nor to exclude them from TCP governance (Section 4.4.2.2).
D Incorrect: It is true that some organizations may require more complex portfolio
governance structures, particularly in the case where a number of organizations
are working together. However, it would not be appropriate to sub-divide each
change initiative and exclude the IT elements from TCP governance (Section
4.4.2.2).
3 A Incorrect: Although the channel shift programme does aim to improve customer services
by shifting to on-line provision this is unlikely to address the cultural challenges
described in the scenario. It would therefore be appropriate to attempt to
improve staff engagement because improving engagement should lead to a
more productive energy state and so improve performance (Sections 5.5,
7.6.2).
B Incorrect: The customer insight programme aims to improve understanding of customer
behaviour although by itself it is unlikely to address the cultural challenges
described in the scenario. It would therefore be appropriate to attempt to
improve staff engagement because improving engagement should lead to a
more productive energy state and so improve performance (Sections 5.5,
7.6.2).
C Incorrect: The scenario states that Trancorp's culture has little focus on the customer.
Therefore, improving engagement should lead to a more productive energy
state. It is a productive, not comfortable, energy state that is linked to
encouraging staff to solve problems (Sections 5.5, 7.6.2).
D Correct: The scenario states that Trancorp's culture has little focus on the customer.
Improving engagement should lead to a more productive energy state and so
improve performance (Sections 5.5, 7.6.2).
4 A Incorrect: The Portfolio Office should be working closely with all programmes, projects and
key departments ensuring regular and consistent messages are issued with the
management board’s support. However, the reason this proposal is
inappropriate is because implementation of portfolio management is aided by
early reporting of progress. Rather than wait for perfect information to become
available, reporting progress highlights any gaps in information availability and
acts as a stimulus to debate (Section 2.2).
B Correct: Senior Managers should not wait for perfect information or a fully developed
Portfolio Dashboard Report – in many cases there will be gaps in the
information available, but implementing regular progress reporting will highlight
these gaps and stimulate questions and debate (Section 2.2).
C Incorrect: It is true that the Portfolio Dashboard Report should include the status on key
initiatives but senior managers should not wait for perfect information or a fully
developed Portfolio Dashboard Report (Sections 2.2, 7.2.2.3).
D Incorrect: Although effective progress reporting is aided by the technique of 'one version of
the truth', senior managers should not wait for perfect information or a fully
developed Portfolio Dashboard Report (Section 2.2 and Table 7.2).
5 A Incorrect: A Portfolio Office is not simply a bigger Programme or Project Office.
Programme and Project Offices are primarily concerned with coordinating the
delivery of individual change initiatives in the right way. Portfolio Offices are
primarily concerned with providing timely and accurate information to facilitate
the decision making process by senior management which ensures these
initiatives remain strategically aligned (Section 4.6.1).
B Incorrect: A direct reporting line would not compromise the assurance function but would
enable it, as the Portfolio Office is providing assurance to senior management
(Section 4.6).
C Correct: One of the ‘keys to success’ of the Portfolio Office principle is that it must report
directly to the Management Board champion to demonstrate the importance of
effective portfolio management to the organization (Section 4.6 and Table 4.4).
D Incorrect: Yes, the Portfolio Director should provide clear direction and leadership. But this
does not explain why the Portfolio Office should report directly to them (Table 4.4
and Appendix B).
Question: 1, Syllabus: IS, Part: D, Type: AR, SyllabusRef: IS0401, Level: 4
1 False: A change to the way the limited IT True: A Portfolio Dashboard Report should
resources will be allocated will be track performance against the baseline
included within the resource represented by the Portfolio Delivery
management practice and should be Plan. As such the Portfolio Dashboard
reported under the 'Practices' heading. Report should include status on key
initiatives, risks, issues and
dependencies (Section 7.2.2.3 and
Appendix F).
2 True: Portfolio management requires that True: The scale (and trend) of reliance on
progress is monitored at a portfolio external resources (contractors and
level, including how well programme consultants) is an appropriate metric for
and project management is performing assessing the impact of portfolio
and whether resources, costs and management. This explains why the
dependencies are being effectively increase in spend on external
managed. It would therefore be contractors should be included as a
appropriate to include a forecast portfolio indicator. Therefore the answer
budget variance that exceeded is A (Section 7.2.2.3 and Appendix F).
tolerance at the portfolio-level (Section
7.2.2.3 and Appendix F).
3 False: According to the additional information, False: Reporting all progress information from
the ‘Initiative’ heading should include each initiative is far too much detail at
progress information against key Portfolio level. The Portfolio Dashboard
delivery milestones for individual Report should include progress
initiatives not benefit realization information against key milestones,
progress – this will be consolidated status on key initiatives, risks, issues,
and reported under the ‘Portfolio’ dependencies, spend and revised
heading (Section 7.2.2.3). forecast compared to the profiled
budget and the latest benefits forecast
and realization to date compared with
plan (Section 7.2.2.3 and Appendix F).
4 True: Risk status for an individual initiative True: The Portfolio Dashboard Report should
would be an appropriate measure to be include progress information against key
reported in the Portfolio Dashboard milestones but this does not explain why
Report under the 'Initiative' heading risk status should be reported (Section
(Section 7.2.2.3 and Appendix F). 7.2.2.3 and Appendix F). Therefore the
answer is B.
5 False: The additional information states that False: The key elements of effective
this heading includes progress governance of the portfolio include
information against key delivery escalation paths with control/tolerance
milestones, risks and costs and also limits i.e. where performance deviates
that the management by exception beyond a set limit, the matter needs to
technique will be applied. This initiative be referred to the next tier of governance
is within tolerance and would therefore (Section 7.7.2).
not be reported. (Section 7.2.2.3).
Question: 2, Syllabus: DF, Part: A, Type: MG, SyllabusRef: DF0301, Level: 3
1 Correct [D]: A ‘decision conference’ is undertaken as part of the ‘prioritize’ practice in portfolio
definition cycle which occurs in the sequence: understand, categorize, prioritize,
balance, and plan (Section 6.4.2).
2 Correct [A]: Portfolio-level reviews are undertaken as part of the ‘management control’ practice
in the portfolio delivery cycle (Section 7.2.2.5).
3 Correct [E]: Reviewing the ranked list of initiatives to ensure sufficient coverage of all strategic
objectives is undertaken as part of the ‘balance’ practice in the portfolio definition
cycle in the sequence: understand, categorize, prioritize, balance, and plan
(Section 6.5.1).
4 Correct [B]: The ‘understand’ practice seeks to obtain a clear view of the portfolio and its
constituent initiatives – both those that are ‘live’ and those in the development
pipeline. The ‘understand’ practice is undertaken as part of the portfolio definition
cycle in the sequence: understand, categorize, prioritize, balance, and plan
(Section 6.2.2).
5 Correct [C]: Allocating initiatives to relevant sub-portfolios, categories or segments occurs
during the ‘categorize’ practice in the portfolio definition cycle in the sequence:
understand, categorize, prioritize, balance, and plan (Section 6.3.1).
Question: 2, Syllabus: DF, Part: B, Type: MG, SyllabusRef: DF0301, Level: 3

1 Correct [B]: The ‘champion-challenger’ model is a means to engage stakeholders in the
portfolio management practices by encouraging suggestions for more efficient and
effective practices (Glossary).
2 Correct [D]: Pair-wise comparisons can be used to facilitate portfolio prioritization. This can be
used alongside ‘decision conferencing’ (Sections 4.5.1, 6.4.2).
3 Correct [E]: ‘Decision conferencing’ is an effective way to build a shared commitment by
coming to a collective decision on the composition of the portfolio (Section 4.5.1).
4 Correct [C]: Three point estimating considers the range of possible outcomes – best-case,
worst-case and most likely (Section 7.2.2.2 and Glossary).
5 Correct [A]: Driver-based analysis makes the implicit logic or value chain underpinning
strategic objectives explicit – and so facilitates assessment of strategic
contribution (Section 4.5).
Question: 2, Syllabus: DF, Part: C, Type: AR, SyllabusRef: DF0401, Level: 4
1 False: Assessment of ‘achievability’ rather True: The risk potential assessment does
than ‘attractiveness’ is aided by the risk indeed reflect consequential impact and
potential assessment (Section 6.4.2). complexity (Section 6.4.2).
2 True: The Delivery Plan is approved by the True: Approval of the Delivery Plan means
PIC which oversees the portfolio approval for the resource allocations
definition cycle (Ref Scenario) and this required to deliver the agreed portfolio
does link strategic planning to resource and the contribution to strategic
allocation (Section 7.4.2). objectives (Section 3.4, Appendix E).
Therefore the answer is A.
3 False: The ‘service value chain’ helps portfolio False: A ‘value profile’ involves prioritizing the
prioritization by enabling Transcorp to organization’s value drivers which can
assess the contribution of initiatives to be both monetary and non-monetary
its strategic objectives, hence the (Section 4.5).
‘attractiveness’ rather than the
‘achievability’ of those initiatives
(Section 4.5).
4 False: The ‘champion-challenger’ model can False: The ‘decision conferencing’ technique
be used to engage business as usual rather than the ‘champion-challenger’
managers in the portfolio management model enables the portfolio governance
practices. But responsibility for portfolio body to come to a collective decision on
prioritization does not sit with the BAU portfolio composition (Section 4.5.1,
community - it lies with senior Glossary).
management/the PIC (Scenario,
Section 7.6.2). ‘Decision conferencing’
is a technique used to engage senior
management in portfolio prioritization
(Section 6.4.2).
5 False: A programme and project information True: A programme and project information
document can be used to allocate document does help facilitate collection
initiatives to the appropriate category, of consistent information on initiatives to
but selection of portfolio categories in inform categorization and prioritization
an MoP environment depends on the (Section 6.3.2, Appendix C).
strategic objectives (Section 6.3.2).
Question: 2, Syllabus: DF, Part: D, Type: CL, SyllabusRef: DF0401, Level: 4
1 A Incorrect: Initiatives 1, 2 and 4 do have a higher NPV but they would cost £12 million and
only £10 million is available. Also initiative 4 does not payback within 2 years in
undiscounted terms (Section 6.4.2).
B Correct: Initiatives 1 and 2 deliver a NPV of £2,920,000 compared with £2,800,000 for
initiative 3 (Section 6.4.2).
C Incorrect: Initiative 3 does have the highest NPV (£2.8 million) but the highest combined
NPV (£2.92 million) from the available £10 million is offered by initiatives 1 and
2 (Section 6.4.2).
D Incorrect: Initiative 3 is not the only initiative that meets the stipulated investment criteria.
Initiatives 1 and 2 also meet these criteria (Section 6.4.2).
2 A Incorrect: Initiative 4 does indeed have a positive NPV but it does not meet the
requirement to payback in undiscounted terms by the end of year 2 (Section
6.4.2).
B Incorrect: Initiatives 1, 2 and 3 are affordable. They cost £17.75 million. There is a budget
of £12.5 million and benefits available for re-cycling from initiatives 1, 2 and 3
are £26.30 million x .25 = £6.575 million so there is a total of £19.075 million
(Section 6.4.2).
C Incorrect: Investing in 3 initiatives may or may not diversify risk depending on the
characteristics of those initiatives. But the reason for investing in initiatives 1, 2
and 3 is that they meet the stipulated investment criteria and maximize the return
provided (Section 6.4.2).
D Correct: Initiatives 1, 2 and 3 meet the investment criteria and maximize the combined
NPV from the available funds. The other initiatives do not meet the stipulated
investment criteria (Section 6.4.2).
3 A Incorrect: Initiative 5 does indeed have a negative NPV and should therefore be rejected.
However initiative 4 does not meet the criteria to payback within 2 years in
undiscounted terms (Section 6.4.2).
B Correct: Initiative 5 does not meet the requirement to exceed the hurdle rate of return (it
has a negative NPV when a discount rate of 10% is applied) and initiative 4
does not meet the criteria to payback within 2 years in undiscounted terms
(Section 6.4.2).
C Incorrect: This is not the case – even if the payback criterion were relaxed to permit
investment in initiative 4, investing in initiative 5 would mean a reduction in the
total NPV of £30,000 (Section 6.4.2).
D Incorrect: Whether funding is available or not, initiative 5 does not meet the minimum
required rate of return and initiative 4 does not meet the payback criteria and
they should therefore not be invested in (Section 6.4.2).
4 A Incorrect: The proposed action is designed to address the weakness in the ‘Quality of
logical dependency management’ factor. This will affect the rating for
‘Achievability’ rather than ‘Attractiveness’.
B Incorrect: The proposed action will address the ‘Quality of logical dependency
management’ factor. Raising the rating from 4 to 8 will result in a weighted rating
for ‘Achievability’ of 7.5 which represents the required improvement to move the
initiative into the ‘Invest’ sub-category (Section 6.4.2).
C Incorrect: The proposed action will result in moving the initiative into the ‘invest’ sub-
category but this is because of the change in the ‘Achievability’ rather than
‘Attractiveness’ rating (Section 6.4.2).
D Correct: Reviewing dependencies with other initiatives will affect the rating for ‘Quality of
logical dependency management’. An increase in rating to 8 would raise the
overall weighted score for ‘Achievability’ to 7.5 so moving the initiative into the
‘invest’ sub-category (Section 6.4.2).
5 A Correct: The action will affect the rating for ‘Confidence in benefits forecast’ which in turn
will improve the ‘Attractiveness’ rating from to 5.5 to 6.5. But this is insufficient to
move the initiative into the ‘invest’ sub-category (Section 6.4.2).
B Incorrect: The action will affect the assessment of ‘Confidence in benefits forecast’ which
in turn will improve the ‘Attractiveness’ rating rather than the ‘Achievability’ rating
(Section 6.4.2).
C Incorrect: The action will affect the rating for ‘Confidence in benefits forecast’ which in turn
will improve the ‘Attractiveness’ rating from to 5.5 to 6.5. But this is insufficient to
move the initiative into the ‘invest’ sub-category (Section 6.4.2).
D Incorrect: The action will affect the assessment of ‘Confidence in benefits forecast’ which
in turn will improve the ‘Attractiveness’ rating rather than the ‘Achievability’ rating
(Section 6.4.2).
Question: 3, Syllabus: DL, Part: A, Type: MG, SyllabusRef: DL0301, Level: 3

1 Correct [E]: Considering ways of expanding supply in the light of demand for access to limited
IT test facilities illustrates the ‘Key to success: Implement dynamic resource
management’ (Table 7.10).
2 Correct [D]: Reviewing the TCP Portfolio Delivery Plan illustrates the ‘Key to success: Review
the resource schedule regularly’ as the portfolio resource schedule forms part of
the Portfolio Delivery Plan (Table 7.10 and Appendix B).
3 Correct [A]: Regular reviews of business case and progress is a ‘Key to success’ of the
benefits management and organizational governance practices rather than the
resource management practice (Tables 7.4, 7.9).
4 Correct [A]: Producing a portfolio financial plan is a ‘Key to success’ of the financial
management practice rather than the resource management practice (Table 7.5).
5 Correct [B]: Having a resource management strategy illustrates the ‘Key to success: Set
portfolio-wide standards for resource forecasting’ as the strategy would include
standards for resource management, part of which is resource forecasting (Table
7.10).
Question: 3, Syllabus: DL, Part: B, Type: MG, SyllabusRef: DL0401, Level: 3

1 Correct [F]: Decision conferencing is a technique used to prioritize initiatives and this
approach can be modified to prioritize dependencies (Table 7.6 and Section
6.4.2).
2 Correct [E]: One way of presenting complex dependency information is to highlight key
dependencies on the portfolio schedule (Table 7.6).
3 Correct [C]: This entry defines the type of dependency where an initiative is making calls on a
limited resource (Table 7.6).
4 Correct [D]: A central planning software tool can link dependencies (Table 7.6).
5 Correct [B]: Workshops and 1:1 sessions can be used to identify and agree potential
dependencies (Table 7.6).
Question: 3, Syllabus: DL, Part: C, Type: AR, SyllabusRef: DL0401, Level: 4
1 True: A reduction in staffing levels will have True: A financial plan must be incorporated
an impact on the Portfolio Financial within every business case. This will
Plan if there are additional redundancy include the required operating
payments as this will affect the portfolio expenditure to complete the initiative
financial commitment for the year and the consequent financial
ahead according to the additional requirements post implementation
information (Section 7.4.2 and (Section 7.4.2). BUT the reason why the
Appendix E). additional redundancy payments should
have been considered is because they
would affect the Portfolio Financial Plan,
which is included in the Portfolio
Delivery Plan. Therefore the answer is
B.
2 True: One of the main elements of the True: One of the main elements of the portfolio
portfolio financial management practice financial management practice is the
is that there should be clear control concept of staged release of funding
limits for reporting variances from linked to stage/phase gates (Section
budget, and approval of additional 7.4.2). BUT the reason why the initiative
funding requests (Section 7.4.2). should be escalated is because it
exceeds control limits for reporting
variances. Therefore the answer is B.
3 False: One of the main elements of the True: One of the main elements of the portfolio
portfolio financial management practice financial management practice is the
is that there should be clear rules at selection of appropriate investment
portfolio level for valuing benefits in criteria. Another consideration is
business cases (Section 7.4.2). whether to use a single set of criteria or
whether to segment to portfolio with the
investment criteria being tailored to
each segment (Section 4.7.2).
Question: 3, Syllabus: DL, Part: D, Type: CL, SyllabusRef: DL0401, Level: 3
1 A Incorrect: According to the scenario, the objectives of this initiative do include helping to
deliver the required savings within Transcorp. But this does not affect the fact
that benefits arising from the move to on-line services may be categorized
differently. MoP states that consistent benefit eligibility rules should be applied
to ensure a consistent approach to mapping, and to consolidate benefit data.
This includes all categories of benefits for the portfolio (Section 7.3.2).
B Correct: From the additional information provided with the scenario, effectiveness
benefits include doing things in a different way. From the main scenario this
initiative is to move transaction services on line. Therefore categorizing these
benefits as effectiveness is a more logical application of the benefit eligibility
rules for this portfolio (Section 7.3.2).
C Incorrect: From the scenario it is true that the current organizational culture demonstrates
little focus on customer needs. However that just describes an area that needs
to be addressed, rather than a category of measurable benefits to prove that this
underlying problem has been resolved (Section 7.3.2).
D Incorrect: From the scenario it is true that there is demand from the public to provide some
services on–line. However this describes one possible reason for choosing to
offer this in future. It does not describe a category of measurable benefits to
prove that this has been done in an effective manner (Section 7.3.2).
2 A Correct: The portfolio Benefits Management Framework contains a section on benefits
eligibility guidance. Whatever categorization framework for benefits is used, it
should be applied consistently by all initiatives in the portfolio (Section 7.3.2).
B Incorrect: A benefit is defined as ‘a measurable improvement resulting from an outcome
perceived as an advantage to one or more stakeholders’. Cost savings should
be seen as a benefit to Transcorp, in line with strategic objectives, even if this
disadvantages some other stakeholders (Glossary).
C Incorrect: Benefits eligibility rules should be appropriate to the portfolio, but whatever
categorization framework for benefits is used, it should be applied consistently
by all initiatives in the portfolio (Section 7.3.2).
D Incorrect: Each programme management team should make sure that benefits from the
initiative are identified and mapped, but whatever categorization framework for
benefits is used, it should be applied consistently by all initiatives in the portfolio
(Section 7.3.2).
3 A Incorrect: Streamlining processes, with the resultant cost savings, will be an economic
benefit to Transcorp (doing the same but more cheaply), but the benefits to
customers will be largely effectiveness (doing things to a higher standard) and
non-cashable, as they will be measured as shorter waiting times and the
average number of calls required to resolve a query (Section 7.2.3).
B Incorrect: A reduction in staff, with the resultant cost savings, will be an economic benefit
to Transcorp (doing the same but with fewer resources), but the benefits to
customers will be largely effectiveness (doing things to a higher standard) and
non-cashable, as they will be measured as shorter waiting times and the
average number of calls required to resolve a query (Section 7.2.3).
C Incorrect: According to the scenario, delivering a cultural change to put the customer at the
heart of everything Transcorp does is an objective, but this does not dictate the
categorization of benefits. Doing things to a higher standard is one of the
definitions of effectiveness, and the measures are in terms of customer waiting
times and numbers of queries dealt with at the first call, and therefore non-
cashable (Section 7.3.2).
D Correct: According to the additional information, doing things to a higher standard is one
of the definitions of effectiveness, and the benefit measures are in terms of
customer waiting times and numbers of queries dealt with at the first call, and
are therefore non-cashable (Section 7.3.2)
4 A Incorrect: The Portfolio Benefits Manager role ensures a ‘fit-for-purpose’ approach to
benefit management across the portfolio, but progress against plan should be
reported via the Portfolio Dashboard Report (Section 7.3.2 and Appendix B).
B Incorrect: It may be difficult to forecast benefits with accuracy in the early stages of an
initiative, and forecasts may be revised at stage/phase gate reviews, but
ongoing progress should be reported via the Portfolio Dashboard Report
(Section 7.3.2).
C Correct: A portfolio-level Benefits Realization Plan should be compiled, and progress
should be monitored via the Portfolio Dashboard Report, to allow the portfolio
governance body to assess whether it is on target to deliver (Section 7.3.2).
D Incorrect: It is true that benefit owners should commit to benefit realization activity following
formal closure, but this does not explain why it is appropriate for initiatives to
report ongoing progress via the Portfolio Dashboard Report (Section 7.3.2).
Question: 3, Syllabus: DL, Part: E, Type: MR, SyllabusRef: DL0401, Level: 4
1 A Incorrect: From the additional information provided with the scenario, the current forecast
benefits variance exceeds both the percentage and monetary control limits for
level 3. The decision following the escalation may be to take no action, but the
initiative still should be escalated (Section 7.2.2.3).
B Correct: From the additional information provided with the scenario, the current forecast
benefits variance exceeds both the percentage and monetary control limits for
level 3 (£100,000 and 6.01%), which makes it a level 3 escalation, which should
go to the Portfolio Investment Committee (Section 7.2.2.3).
C Incorrect: For this initiative, although the time value is within the level 1 limit, the
percentage variance falls within the level 3 parameter – so it should be
escalated to the PIC (Section 7.2.2.3).
D Correct: From Note 3 in the additional information provided with the scenario, where a
variance does not trigger both the percentage and the monetary amount, it is
reviewed at the lower level of governance. For this initiative, the percentage
variance (6.6%) falls within the level 3 parameters, although the monetary value
(£50,000) falls within the level 2 limit. Therefore this should be reviewed by the
Portfolio Change Committee (Section 7.2.2.3).
E Incorrect: From Note 3 in the additional information provided with the scenario, where a
variance (6.6%) falls within the level 3 parameters, although the monetary value
(£50,000) falls within the level 2 limit. Therefore this should be reviewed by the
Portfolio Change Committee (Section 7.2.2.3).
2 A Incorrect: From Note 3 in the additional information provided with the scenario, where a
variance falls within the level 2 parameters, although the monetary value
exceeds the level 2 limit. Therefore this should be reviewed by the Portfolio
Change Committee (Section 7.2.2.3).
B Correct: From the additional information provided with the scenario, a negative risk
variance should be initially reviewed by the Portfolio Office. The Portfolio Office
may choose to escalate further, depending on their assessment of the portfolio
level of risk as a result of this variance (Section 7.2.2.3).
C Incorrect: From the additional information provided with the scenario, a negative risk
variance should be initially reviewed by the Portfolio Office. The Portfolio Office
may choose to escalate further, depending on their assessment of the portfolio
level of risk as a result of this variance (Section 7.2.2.3).
D Incorrect: From the additional information provided with the scenario, any variance should
be reviewed at the appropriate level of portfolio governance. Variances against
time and cost should be reviewed by the Portfolio Office, and the variances on
Risk and Benefits should be reviewed by the Portfolio Investment Committee
(Section 7.2.2.3).
E Correct: From Note 3 in the additional information provided with the scenario, where a
variance falls within the level 2 parameters, although the monetary value
exceeds the level 2 limit. Therefore this should be reviewed by the Portfolio
Change Committee (Section 7.2.2.3).
3 A Incorrect: It is true that the Portfolio Office does have a responsibility to provide support,
advice and guidance to individual change initiatives but that does not mean that
variances that exceed tolerance should not be escalated (Sections 4.6, 7.2.2.3)
B Incorrect: Positive as well as negative variances are subject to review and each type of
variance is managed separately. From the additional information provided with
the scenario, the benefits variance should be escalated to the PCC and the risk
variance to the PIC (Sections 7.2.2.3, 7.4.2).
C Correct: From the additional information provided with the scenario, the budget variance
is less than 3% of budget and less than £20,000, so this should be reviewed by
the Portfolio Office.
D Correct: For this initiative, both the percentage variance (5.7%) and the monetary
variance (£99,000) fall within the level 2 parameters, so this should be escalated
to the Portfolio Change Committee (Section 7.2.2.3).
E Incorrect: For this initiative, the percentage variance (5.7%) and monetary variance
(£99,000) fall within the level 2 parameters. Therefore this should be reviewed
by the Portfolio Change Committee (Section 7.2.2.3).
Question: 4, Syllabus: RD, Part: A, Type: MG, SyllabusRef: RD0301, Level: 3

1 Correct [C]: The Portfolio Management Framework includes a description of the business
change lifecycle (which includes stage gates) and the governance framework
including where and by whom key decisions are made (Appendix E).
2 Correct [A]: The Portfolio Dashboard Report includes status on key risks, issues,
dependencies and whether resources are being effectively managed (Section
7.2.2.3 and Appendix E).
3 Correct [C]: The Portfolio Management Framework includes a description of the business
change lifecycle, including the timing of portfolio-level reviews, and where and
when decisions are made (Appendix E).
4 Correct [B]: The Portfolio Benefits Management Framework includes the benefits eligibility
guidance, including the rules on categorization of benefits (Appendix E).
5 Correct [E]: The Portfolio Benefits Realization Plan represents a statement of the main benefits
forecast to be realized in the year ahead including cashable efficiency savings
(Appendix E).
Question: 4, Syllabus: RD, Part: B, Type: MG, SyllabusRef: RD0302, Level: 3

1 Correct [E]: The responsibilities of the PIC include undertaking periodic reviews of the
effectiveness of portfolio management and taking appropriate action where
required (Appendix B).
2 Correct [C]: The PCC is responsible for approving changes to the practices within the portfolio
delivery cycle. Setting control limits is part of the ‘management by exception’
technique applied to the management control practice in the portfolio delivery cycle
(Appendix B).
3 Correct [B]: The responsibilities of the Portfolio Director include championing the
implementation of portfolio management across the organization. The Portfolio
Director is therefore the appropriate person to make the keynote address at the
PMF to demonstrate senior management commitment (Section 5.4, Appendix B).
4 Correct [A]: The Portfolio Benefits Manager is responsible for working with the business
change managers to promote more effective benefits management practices
(Appendix B).
5 Correct [D]: The Portfolio Manager is responsible for identifying constraints and overcoming
them (Appendix B).
Question: 4, Syllabus: RD, Part: C, Type: MR, SyllabusRef: RD0401, Level: 4
1 A Incorrect: Entry 1 concerns the objectives of the Transformational Change Portfolio rather
than the objectives of portfolio management. As such it is relevant to the
Portfolio Strategy rather than the Portfolio Management Framework (Appendix
E).
B Incorrect: Entry 1 concerns the objectives of the Transformational Change Portfolio rather
E).
C Correct: Entry 1 concerns the objectives of the Transformational Change Portfolio rather
E).
D Correct: Entry 2 concerns the objectives of portfolio management referred to within the
scenario. It is therefore appropriate to the ‘objectives of portfolio management’
section of the Portfolio Management Framework (Appendix E).
E Incorrect: Entry 2 concerns the objectives of portfolio management referred to with the
scenario. It is therefore appropriate to the ‘objectives of portfolio management’
section of the Portfolio Management Framework (Appendix E).
2 A Correct: Entry 3 relates to benefits categorization and should therefore be moved to
Section H because this is relevant to the portfolio-level strategy for benefits
management (Appendix E).
B Incorrect: Entry 3 concerns the way benefits are managed and as such is relevant to the
Portfolio Management Framework (Section H) rather than the Benefits
Realization Plan which concerns the forecast benefits and those actually
realized (Appendix E).
C Incorrect: Entry 3 relates to benefits categorization rather than portfolio categorization and
as such it is appropriate to Section H (Appendix E).
D Incorrect: Entry 4 concerns the investment criteria used to prioritize initiatives in the
‘efficiency savings’ portfolio segment. As such it is appropriate to the Portfolio
Management Framework rather than the Portfolio Financial Plan (Appendix E).
E Correct: Entry 4 concerns the investment criteria used to prioritize initiatives in the
‘efficiency savings’ portfolio segment. As such it is appropriate to Section B of
the Portfolio Management Framework (Appendix E).
3 A Incorrect: Entry 5 concerns portfolio-level reviews which are appropriate to the ‘business
change lifecycle’ section of the Portfolio Management Framework rather than to
the Portfolio Dashboard Report (Appendix E).
B Correct: Portfolio-level reviews are appropriate to the ‘business change lifecycle’ section
of the Portfolio Management Framework (Appendix E).
C Incorrect: A review of portfolio performance is a key part of portfolio-level reviews.
However, portfolio-level reviews are appropriate to the ‘business change
lifecycle’ section rather than Section D of the Portfolio Management Framework
(Appendix E).
D Correct: Entry 6 concerns responsibility for approving new initiatives in the TCP. As such
it is appropriate to the section dealing with terms of reference for the main
portfolio boards (Appendix E).
E Incorrect: Entry 6 concerns responsibility for approving new initiatives in the TCP. As such
it is appropriate to the section dealing with terms of reference for the main
4 A Incorrect: Entry 7 describes the role of the Portfolio Office and as such is it relevant for
Section E (Appendix E).
B Incorrect: Entry 7 describes the role of the Portfolio Office across the TCP and as such is
it relevant for Section E of the Portfolio Management Framework (Appendix E).
C Correct: The Portfolio Office supports the Portfolio Director, PIC and PCC in addition to
coordinating portfolio management practices. It is appropriate to add this
support to entry 7 (Appendix E).
D Incorrect: Entry 8 concerns responsibility for overseeing the portfolio delivery cycle. As
such it is appropriate to the section dealing with terms of reference for the main
portfolio boards. (Appendix E).
E Correct: Entry 8 concerns responsibility for overseeing the portfolio delivery cycle. As
such it is appropriate to the section dealing with terms of reference for the main
5 A Correct: Entry 9 outlines a way in which key stakeholders will be engaged in the
development of portfolio management. It is therefore appropriate to Section H
(Appendix E).
B Incorrect: Entry 9 outlines a way in which key stakeholders will be engaged in the
development of portfolio management rather than an objective of portfolio
management. It is therefore appropriate to this section (Appendix E).
C Incorrect: Entry 9 is relevant to the Stakeholder Management & Communication Plan, but
an overview of this plan/strategy will also appear in the PMF (Appendix E).
D Incorrect: Entry 10 describes how the status of risks will be reported and it is therefore
appropriate to Section H rather than Section A which deals with the objectives of
portfolio management (Appendix E).
E Correct: Entry 10 is part of the portfolio-level strategy for risk management and is
appropriate to Section H (Appendix E).
Question: 4, Syllabus: RD, Part: D, Type: AR, SyllabusRef: RD0402, Level: 4
1 False: It is not a responsibility of the Portfolio False: It is not a responsibility of the Portfolio
Manager to promote an energized Manager to promote an energized
culture. This is a responsibility of the culture. This is a responsibility of the
Portfolio Director (Appendix B). Portfolio Director (Appendix B).
2 True: It is not a responsibility of the Portfolio True: It is a responsibility of the Portfolio
Benefits Manager to manage Manager to identify constraints and work
constraints – this lies with the Portfolio to overcome them (Appendix B).
Manager (Appendix B). Therefore the answer is A.
3 True: The Portfolio Director should provide True: The Portfolio Director is responsible for
leadership for the implementation of the the implementation of portfolio
TCP (Appendix B). management across the organization
(Appendix B). The reason explains the
implementation of portfolio management
but the assertion is specific to the TCP.
The reason does not explain the
assertion. Therefore the answer is B.
4 False: Responsibility for resolving conflicts True: The Portfolio Office does include a
between BAU and the portfolio lies with Portfolio Benefits Manager (Appendix
the PIC (Appendix B). B).
5 False: The Portfolio Manager ensures that False: The Portfolio Manager is responsible for
dependencies are effectively managed ensuring that dependencies are
and would be an appropriate choice of effectively managed. Reporting on
action owner (Appendix B). dependencies in the Portfolio Delivery
Plan enables the Portfolio Change
Committee rather than the Investment
Committee to monitor the management
of dependencies (Appendix B).

000 Students Orientation-PRINCE2

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MoP® Foundation – Students Orientation i

The MoP® Foundation – Students Orientation

By Ernani Marques, MoP® Practitioner

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The Swirl logo™ is a Trademark of AXELOS Limited

MoP® is a Registered Trademark of AXELOS Limited

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ATHEM.net.br ATHEM MoP® AXELOS

ATHEM.net.br ATHEM MoP® AXELOS V02

Purpose of the foundation qualification

ATHEM MoP® AXELOS V02

6 Instructions For Use

Find the instructions for use your learning kit:

7 Planned Lessons Plan and Planned Agenda

ATHEM MoP® AXELOS V02

The factors to consider in sustaining progress

08:30 The 6 key functions/activities that portfolio management needs

Coordinate with strategic planning to deliver strategic objectives.

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08:30 The portfolio delivery cycle.

8 Measuring the learning

ATHEM MoP® AXELOS V02

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Qualifications are offered at two levels: Foundation and Practitioner.

The target audience for this document is:

2.1 Purpose of the Foundation Qualification

2.2 Target Audience

2.3 High Level Performance Definition of a Successful Candidate

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3.1 Purpose of the Practitioner Qualification

3.2 Target Audience

3.3 High Level Performance Definition of a Successful Candidate

4. Learning Outcomes Assessment Model

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This structured approach helps to ensure:

 A clear delineation in learning level content between different qualification levels

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1.Knowledge 2. Comprehension 3. Application 4. Analysis

The following syllabus areas are identified.

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Each of the syllabus areas is presented in a similar format as follows:

Syllabus Syllabus Area :

Key to the Syllabus Area table

1 Syllabus Area Unit of learning, e.g. chapter of the reference guide or

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4 Level Classification of the learning outcome against the APMG

5 Topic Reference Number of the topic within the learning level.

6 Topic Description Description of what is required of the candidate to

7 Foundation/Practitioner Shows at which qualification level the topic is assessed.

N.B A topic is only assessed at one qualification level.

8 Primary Reference The main reference supporting the topic.

7.1 MoP Guide References

7.2 Syllabus Exclusions

Syllabus Syllabus Area:

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