Project Portfolio Management

Correct Answer: Implement resource leveling to balance the demand for resources with the available supply.

The most effective strategy when dealing with multiple critical paths and the potential for resource bottlenecks in project management is to implement resource leveling. Resource leveling aims to balance the demand for resources with the available supply by adjusting the project schedule. It often involves delaying non-critical tasks to ensure that sufficient resources are available for critical path tasks, thereby minimizing the risk of bottlenecks. Resource leveling helps ensure that resources are not overallocated and key team members are available when needed most. Additionally, assigning additional resources to work in parallel on all tasks isn't always feasible or cost-effective, and it doesn't guarantee that bottlenecks will be avoided — particularly if the resources are specialized and not easily replicated. Utilizing resource smoothing might not address the closely aligned schedules of critical tasks since it focuses on reducing peaks in resource demand without changing the end dates on the critical path. Finally, scheduling overtime for existing team members can lead to burnout and decreased productivity over time, making it a less sustainable option for managing resource bottlenecks.

Correct Answer: Raise a flag to the portfolio management team.

The best course of action is to raise a flag to the portfolio management team. This is because as a project manager, you have a responsibility to ensure that all projects align with the set portfolio strategy. When you come across a project proposal that does not align with the strategy, it is best to inform the relevant parties so they can address the issue. Including the project in the portfolio anyway is not advisable because it could hamper the ability to meet the goal of increasing market share. Rejecting the project proposal yourself is also not the right move because this decision should be made collectively with the portfolio management team. Similarly, changing the portfolio strategy to accommodate the new project may not be the best move as it could affect other ongoing projects and overall business strategy. Therefore, highlighting the issue to the portfolio management team for their expertise to handle is the most appropriate course of action.

Correct Answer: Evaluate the project's potential impact on overall portfolio balance

The most appropriate action is to evaluate the project's potential impact on overall portfolio balance. This approach is best because:

1. It acknowledges the portfolio strategy's emphasis on technological innovation.
2. It recognizes the value of cost reduction in project management.
3. It allows for a balanced decision-making process, considering both innovation and cost-saving aspects.
4. It enables the project manager to assess how this project fits within the larger portfolio context.

Approving the project based solely on cost-saving potential would neglect the portfolio's strategic focus on technological innovation.

Rejecting the project outright might miss an opportunity to diversify the portfolio or achieve important cost savings.

Modifying the project to include more technological elements before approval could be premature and may not align with the project's original objectives or benefits.

By evaluating the project's impact on overall portfolio balance, the project manager can make an informed decision that considers both the strategic goals and the potential benefits of the proposed project.