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PMI PgMP: Aligning Programs with Organizational Strategic Objectives for Shareholder Value

By: Author Alex Lim

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Categories Exam

Program managers must ensure programs align with organizational strategic objectives to contribute to shareholder value. Learn key considerations for verifying this critical alignment.

Table of Contents

Question

The program manager wants to ensure that a program contributes to shareholder value.

The program manager should verify alignment with which of the following?

A. Program charter
B. Organizational structures and policies
C. Organizational strategic objectives
D. Program governance plan

Answer

C. Organizational strategic objectives

Explanation

To ensure a program contributes to shareholder value, the program manager should verify that the program aligns with the organization’s strategic objectives. Organizational strategic objectives define the high-level goals and direction of the company that are designed to maximize shareholder value over the long-term.

Some key points:

  • The program charter (A) defines the program’s objectives, scope, and benefits, but these need to roll up to support the broader organizational strategy. The program charter alone is not sufficient.
  • Organizational structures and policies (B) provide the framework for how programs and projects are executed, but do not define the strategic objectives they need to align to.
  • The program governance plan (D) describes how the program will be governed and decisions made, but does not specify the strategic objectives.
  • Organizational strategic objectives (C) are the overarching goals defined by executive leadership that all programs and projects should ultimately support in order to drive shareholder value. This is the key alignment the program manager must verify.

So in summary, while the program charter, governance plan, and organizational structures are all important considerations, verifying alignment with the organizational strategic objectives is most critical for ensuring the program contributes to shareholder value, making C the correct answer.

PMI PgMP certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the PMI PgMP exam and earn PMI PgMP certification.