Product Digest
Domain 5 of 6

Allocating People and Money

Turning a choice into a commitment. Running a portfolio across several products, the funding model that quietly decides what strategy is possible, the non goals that make the focus real and the unit economics underneath all of it.

4
Concepts
~13%
Of the exam
12
Practice questions
Concepts in this domain
01Product portfolio managementRunning several products against one strategy, the role each product is given, the measure that role should be judged on, and what the three horizons model gets right and wrong about where the next business comes from.02Product funding modelsProject funding and product funding, the three jobs an annual budget tries to do at once, rolling allocation and metered funding, and what a product manager can change from inside a cycle nobody is about to abolish.03Non goals and saying noWriting down what a strategy has decided against doing, why an unwritten exclusion gets reversed in the first difficult meeting, and how to refuse a good idea so the refusal survives the second time it is raised.04Product economicsThe vocabulary for arguing about value in the terms the business already uses. Cost of delay, sunk cost, opportunity cost, total cost of ownership and lifetime value, and what value means to each group with a claim on the answer.
Try a question from this domain

A hospital equipment group lists four products under one director on the organisation chart. Two of them are sold to different buyers, funded from separate budgets and reported separately. The other two draw on the same pool of twelve embedded engineers. Which grouping counts as a single portfolio?

  • AAll four, since the organisation chart places them under one director.
  • BThe two sold to different buyers, because portfolio membership follows the buyer.
  • CThe two competing for the same engineers, because any decision about one of them is a decision about the other.
  • DNone of them, because a portfolio needs at least one product in every role.
12 questions on this domain.

One per page, with a worked explanation.

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