International Project Management Association (IPMA) Practice Exam

What should be prioritized when assessing portfolio value in project selection?

1. Team dynamics

2. Market trends

3. Strategic priority contributions

4. Historical project success rates

The correct answer is: Strategic priority contributions

Prioritizing strategic priority contributions when assessing portfolio value in project selection ensures that the projects align closely with the organization's overall objectives and long-term strategy. This alignment is crucial for maximizing the value generated from the project portfolio, as it not only supports the organization's mission but also enhances resource allocation towards initiatives that drive significant business outcomes. By focusing on how each project contributes to strategic priorities, organizations can evaluate which projects will yield the highest returns on investment relative to their strategic goals. This approach allows for a more systematic means of evaluating potential projects, helping decision-makers to prioritize those that will offer substantial benefits and further the organization's objectives. It encourages a holistic view of project contributions rather than a fragmented evaluation based solely on operational metrics or historical data, which might not accurately reflect future potential and strategic importance. Other factors like team dynamics, market trends, and historical success rates also play important roles in the overall decision-making process. However, these are secondary to ensuring that the selected projects fundamentally support and enhance the strategic priorities of the organization, as they directly influence sustainable growth and competitive advantage.