These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. All reports can be filtered to see only the data you want and then easily shared in various formats with your stakeholders so they stay updated. In order to accomplish that goal, its ideal to follow these eight lean portfolio management steps. The portfolio roadmap integrates lower-level roadmaps into a more comprehensive view. Indeed, this goes well beyond the words in a slide deck. LPM provides an alignment and governance model for a specific SAFe Portfolio, which contains a set ofDevelopment Value Streams (DVS) for a business domain in an Enterprise. To ensure that portfolio items are delivered to the Program or Solution Backlogs every two weeks To limit the number of initiatives under consideration To help reduce collaboration among the key stakeholders in the business To make the Program Backlog available to the stakeholders Embrace a Lean-Agile mindset 3. When organizations emphasize a planning and execution model that yields continuous value flow, they strive to put value in customers' hands, instead of marking tasks as complete. Examples include developing an e-commerce website, medical device, or satellite and developing and deploying a software application within an enterprise for internal customers. However, this work is not a once-and-done exercise. March 6, 2023; dutchess county attorney's office . *Note that some documents may not be available to all Gartner clients. Still, they need additional structure to coordinate agile teams and optimize their use. For organizations that began their LPM adoption earlier in the implementation roadmap, there are additional opportunities for further growth to realize all the benefits of Lean portfolios. Agile portfolio operations coordinate and support decentralized ART execution and enable operational excellence. 4.3 (7 reviews) Term. These successes formed the foundation of Lean Portfolio Management. when should a lean portfolio be established? That subjects the enterprise to the risk of late discovery, subsequent rework, and even compromising regulatory or legal exposure. It requires modernizing portfolio management, applying Lean-Agile thinking, and organizing Agile teams and ARTs around value streams that deliver a continuous flow of value to the enterprises customers. The quote below reminds us that the purpose of alignment is not about centralized control. Theportfolio sync provides visibility into how well the portfolio is progressing toward meeting its objectives. The primary emphasis of LPM is to align agile development with business strategy, with a focus on driving the delivery of value to customers through the creation of products and solutions. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Lean encourages an organization to maximize the work not done. Lead the transformation The current and future state difference represents the gap that LPM translates into the vision. CapEx vs OpEx spending. Lean Portfolio Management 1.2) What are 4 things a Lean-Agile Leader must do? It does not store any personal data. These budgets are typically adjusted twice annually using PB. Leaders responsible for vision, strategy, funding, budgets, prioritization, and financial performance may be asking how they can apply the new ways of working to their roles. Read more:Fuel Digital Business With Product Management. Try our roadmap template to get started. Therefore, LPM should understand the portfolios current state, develop a plan to evolve to a better, differentiated future state, and continuously adjust the vision and plan to address the changing business context. Sometimes overlooked, contractors and Suppliers should be part of the cost equation. For more information, see the advanced topic article and whitepaper:Achieving Regulatory and Industry Standards Compliance with SAFe. Topics typically include reviewing epic implementation, the status of KPIs, addressing dependencies, and removing impediments. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. The LACE and CoPs provide a forum for sharing effective Agile ART execution, flow practices, and other knowledge. Clients receive 24/7 access to proven management and technology research, expert advice, benchmarks, diagnostics and more. Here we illustrate the approach to implementing a Portfolio Kanban system. Lean Portfolio Management (LPM) describes how senior leadership applies lean principles to connect strategy to execution. Find the money - LPM shifts the strategy and investment model from funding projects to funding team-of-teams. The lean portfolio leadership team sets the north star goal for the mission, funds the team-of-teams based on the enterprises strategic needs, then monitors the emergent plans and results to make sure they align to the strategic intent. These principles are defining value, mapping the value stream, creating flow, establishing pull and pursuing perfection. Neither images nor text can be copied from this site without the express written permission of the copyright holder. These are high-level people in the organization. And yet, at this stage in the journey to business agility, there may be a growing sense that there are additional opportunities to maximize the full potential of SAFe to accelerate value delivery. Track your objectives with defined metrics and key performance indicators (KPIs) to determine variances in your plan and determine your options to address and execute adjustments to reduce disruptions thatll impact your value stream. This makes enterprise architecture a critical component of strategy and investment funding. You can re-allocate right from the chart view to balance workload and keep your team productive. Gartner Terms of Use When the lack of communication between strategy and execution is hurting value delivery When there are a minimum of six Agile Release Trains that require coordination When it is part of training the executives Critical Capabilities: Analyze Products & Services, Digital IQ: Power of My Brand Positioning, Magic Quadrant: Market Analysis of Competitive Players, Product Decisions: Power Your Product Strategy, Cost Optimization: Drive Growth and Efficiency, Strategic Planning: Turn Strategy into Action, Connect with Peers on Your Mission-Critical Priorities, Peer Community: Connections, Conversations & Advice, Peer Insights: Guide Decisions with Peer-Driven Insights, Sourcing, Procurement and Vendor Management, improve investment decisions across the portfolio, Fuel Digital Business With Product Management, 5 Organizational Change Pitfalls PPM Leaders Should Avoid, Marketing at a Technology/Service Provider. You see start and end dates across your portfolio to help you allocate resources more effectively. Thats why connecting the portfolio to the enterprise strategy is the primary responsibility of the strategy and investment funding collaboration. When should a Lean Portfolio be established? When the lack of - Quesba We just dont have a good business discipline for converging on issues this abstract. While long-term predictability is a worthy goal, use flexible rolling-wave roadmaps to replace fixed plans. In so doing, the portfolio of investments is managed over its investment life cycle through agile development and business strategy. This one portfolio mindset is critical to achieving success toward the strategic themes and having the agility to make mid-course corrections fluently. They establish a framework for creating an efficient organization of all projects in a portfolio. These obligations impose significant limits on solution development and operations. Read more: 5 Organizational Change Pitfalls PPM Leaders Should Avoid. Portfolio Events Value Stream coordination defines how to manage dependencies to exploit the opportunities that exist only in the interconnections between value streams. Each Epic goes through different Portfolio Kanban states, and a designated owner defines the Epic's minimum viable product and oversees its progress from concept to completion. Its used during the management of the portfolio to make sure all projects are meeting your strategic business outcomes while improving investment decisions. They are accountable for the overall business outcomes and addressing the challenge of defining, communicating, and aligning strategy with execution. ET This requires accurate estimates of resources. Successfully defining and executing a strategy in a world of increasing uncertainty is challenging. The world is changing fast, and customer expectations are changing just as quickly. Privacy Policy. One of the best ways to address these questions is to engage higher-level leaders with practical examples of how Lean-Agile practice patterns directly contribute to better business results and how extending those patterns into their areas of responsibility can further accelerate business agility. Strategy and investment funding ensures that the entire portfolio is aligned and funded to create and maintain the solutions needed to meet business targets. Continuous delivery is an agile development principle often incorporated in lean portfolio management as part of its value stream. LPM plays a leadership role in operational excellence, helping the organization achieve its business goals. The roadmap can be customized and filtered to show just what you need to see to make sure youre meeting objectives. When should a Lean Portfolio be established? In order for lean portfolio management to be effective, it must be implemented throughout an organization. Practice test safe 4 program consultant 45 4 41when - Course Hero When there are at least 5 Agile Release Trains d . Practice Test 1 Flashcards | Quizlet When should a lean portfolio be established? In this model, LPM maintains appropriate levels of oversight through the allocation of . The road to a better future state should be paved with architectural principles and practices that enable the ongoing evolution of the portfolios solution set. Surface positive feedback from retrospectives and make sure to celebratetheimproved flow of value through the organization. devote the people and resources required to implement the most valuable enhancements. This cookie is set by GDPR Cookie Consent plugin. When should a Lean Portfolio be established? As described earlier, SAFe provides a Lean approach to budgetinga lightweight, more fluid, Agile process that replaces the fixed, long-range budget cycles, financial commitments, and fixed-scope expectations of a traditional planning process. SAFe Lean Portfolio Management 6.0 Agile Digest Solution Train Flow, 4. By clicking the "Submit" button, you are agreeing to the Operational excellence focuses on continually improving efficiency, practices, and results to optimize business performance. Lean-Agile Leaders should know that every long-term commitment decreases the organization's agility. As a result, some enterprises have abandoned the PMO approach, distributing all the responsibilities to ARTs and Solution Trains. DiscoverGartner BuySmart:Reduce risk and optimize spend on your next tech purchase. John May is an enterprise solutions architect, product advisor, and thought leader for Atlassian. The information on this page is 2010-2023 Scaled Agile, Inc. and is protected by US and International copyright laws. View spc q 6.txt from BUSG MISC at Austin Community College District. Also, although more frequent budget changes may seem to support increased agility, they may create too much uncertainty and an inability to commit to any near-term course of action. Lean portfolio management is a process by which strategy is aligned with execution using a lean approach and agile portfolio operations and governance. This is my third . I attended Scaled Agile Framework (SAFe): Lean Portfolio Manager training to use the benefits later in 2021 and successfully passed the certification exam early in 2022. For most organizations, the next best focus area for the transformation is to enhance and improve the effectiveness of the SAFe portfolios. Analytical cookies are used to understand how visitors interact with the website. You have to note how they relate to one another, which needs what when. Its typically held on a quarterly cadence, at least one month before the next PI Planning event, to enable value streams to prepare and respond to any changes. Lean project management is part of an agile methodology that aims to increase customer value by removing project waste. But opting out of some of these cookies may have an effect on your browsing experience. It includes six measures specific to flow: distribution, velocity, time, load, efficiency, and predictability. Instead, alignment provides a powerful way to turn the portfolio vision into an executable strategy. Connect thousands of apps for all your Atlassian products, Run a world-class agile software organization from discovery to delivery and operations, Enable dev, IT ops, and business teams to deliver great service at high velocity, Empower autonomous teams without losing organizational alignment, Great for startups, from incubator to IPO, Get the right tools for your growing business, Docs and resources to build Atlassian apps, Compliance, privacy, platform roadmap, and more, Stories on culture, tech, teams, and tips, Training and certifications for all skill levels, A forum for connecting, sharing, and learning, How to build a better enterprise by being more lean. Portfolio management teams learn about enterprise strategy and how to execute that strategy by allocating the budget. X When the lack of communication between strategy and execution is hurting value delivery These cookies track visitors across websites and collect information to provide customized ads. This helps to maximize your efficiency and realize your strategic objectives. LPM uses the portfolio Kanban system to visualize and restrict work-in-process (WIP), reduce batch sizes, and control the length of longer-term development queues. The portfolio and solution roadmaps are bi-directional; each roadmap influences the other. 2023 Scaled Agile, Inc. All rights reserved. When should a Lean Portfolio be established? When there are a Unleashing the power of a leadership team is no less important than empowering a development team. Things to think about are the timeline for manufacturing and delivering a product, its price and requirements or expectations to meet. Business Owners should frequently communicate the vision and the strategic themes, for example, during PI planning, all-hands company meetings, and throughout the PI. This helps you avoid stockpiling materials and streamlines your equipment inventory. PPM leaders should identify the right talent for each focus area, having the respective expertise in: They can ensure that the agile program management office (APMO) has an in-depth understanding of agile philosophies, core SAFe terms, LPM events, and traditional PMO services such as data collection, analysis, reporting, etc. These cookies track visitors across websites and collect information to provide customized ads. PPM leaders can map their traditional portfolio management practices to the portfolio Kanban states. Portfolio managementteams learnabout an enterprises strategy and allocate a budget towards the execution of that strategy. An additional one-day workshop is available to help enterprise teams get started with LPM in their organization. The third, and equally critical type of collaboration that must take place in Lean Portfolio Management is Lean governancehow decisions are made across the portfolio (s). Figure 2 illustrates the three dimensions of LPM, followed by a brief description and a set of roles needed for its responsibilities. Every enterprise has portfolios of products and solutions, whether the practices of Lean portfolio management have been adopted or not. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. They explore scenarios where the portfolio could evolve to a better differentiated future state aligned with the strategic themes. Facilitating Value Stream identification workshops, Creating alignment around organizational changes, Providing coaching and training to ART stakeholders, Solution Trains, and Agile Teams, Establishing objective measures for progress, product, and process (see PI milestones in the, Works with the LACE to develop, harvest, and apply successful ART execution patterns across the portfolio, Facilitates Lean budgeting and coordinates portfolio governance, Fosters decentralized PI Planning and operational excellence, Establishes objective metrics and reports progress toward business agility, Focuses the portfolio on measuring and improving value delivery, Leads the move to objective metrics, milestones, and Lean-Agile budgeting, Establishes and maintains the systems and reporting capabilities, Communicates and amplifies the portfolios strategy, Spending aligns with the agreed boundaries, Business outcomes are continually improving without too much oversight of feature implementation. when should a lean portfolio be established? Recent research by Gartner Senior Director Analyst Lorri Callahan and Distinguished VP Analyst Robert Handler guides an enterprise program management office (EPMO) or PMO operating in an organization that is adopting SAFe lean portfolio management (LPM) competency. LPM has the highest decision-making and financial accountability for the solutions and development value streams in a SAFe portfolio. The portfolio strategy should support the enterprises broader business objectives. Cookie Policy The Lean governance collaboration and responsibilities (Figure 6) require the active engagement of the VMO, LACE, Business Owners, and Enterprise Architects. Some changes will require large initiatives to achieve the future state. Project Management Process Groups: A Quick Guide, Project Quality Management: A Quick Guide. The effective operation of the LPM function relies on three significant events: Typically, these events are held on a cadence, as illustrated in Figure 7. Measuring the level of organizational competency for a SAFe portfolio is accomplished with the following assessments: Each of these assessments follows a standard process pattern of running the self-assessment, analyzing the results, taking action, and celebrating the successes. These should align with the vision of the portfolio. ProjectManager is not just a lean portfolio management tool, its also the leading project management hub online. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Set (and recalibrate every quarter) the outcome-based objectives and strategic themes, Turnnew ideas into investmentcandidates tied to the strategic mission, Set clear priorities on the initiatives to (1) drive detailed planning for the next quarter, and (2) balance the roadmap against known capacity constraints, Go see the incremental value delivered in the team demos and validate the value hypotheses, Once a quarter, confirm that the work aligns with the strategic intent, Once a quarter, confirm that the budget allocations funding the team-of-teams (and empowering their decentralized decision-making) is best supporting the mission, Once a quarter, look to improve the way that the portfolio leadership team operates, makes decisions,achieves continuous value flow, Once a month, compare the spending trends on the initiatives to the targets and guardrails to close the loop on agile budgeting, Once a month, share the updated initiative roadmap with all stakeholders, Once a week, approve funding for new investment opportunities based on their business case (or recalibrate past funding decisions based on new feedback). As illustrated in Figure 2, LPM provides guidance for: For those organizations that have not yet adopted LPM, the best way to enhance the portfolio is to start the LPM adoption process! The cookie is used to store the user consent for the cookies in the category "Other. SAFe principles and the Lean-Agile mindset foster the decentralizationof strategy execution to empowerAgile Release Trains (ARTs) and Solution Trains. Exemplify the core values 2. The first three states emphasize prioritization. Can any active work be stopped or scaled back? supports oversight of spending, audit, compliance, expenditure, measurement, and reporting, Fosters more Agile contracts and leaner Supplier and Customer partnerships, Assuring Big Data Security and Compliance, FAQs on how to use SAFe content and trademarks, Principle #6- Make value flow without interruptions, Achieving Regulatory and Industry Standards Compliance with SAFe, https://www.techtarget.com/searchdatamanagement/definition/data-governance, Watch and download SAFe videos and presentations. A well-trained APMO can make knowledge-sharing more collaborative and fruitful. The LPM function can help cultivate and apply successful ART execution patterns across the portfolio with the assistance of the Lean-Agile Center of Excellence (LACE). This new funding model allows the enterprise to eliminate or reduce the need for traditional project-based funding and cost accounting, reducing friction, delays, and overhead. When organizations face a high amount of uncertainty in the marketplace, they can apply a lean start-up mindset to think in bets. In doing so, they can explore the solution space in a cost-effective waythat funds small experiments, not large initiatives with substantial uncertainty. There shouldnt be any interruptions, delays or bottlenecks. Rhonda Byrne, Australian author, and TV producer Portfolio Flow The LPM competency aligns strategy and execution by applying Lean and systems thinking approaches to strategy and investment funding, Agile portfolio operations, and governance. In the past 12 months, PepsiCo's stock price is up around 5.8%, yet investors have a total return of 8.8%, including dividend payouts. Lean portfolio management depends on the ability to see all your projects in one place. Lean Portfolio Management (LPM): Get Started [2023] Asana Combining LPM with agile development practices offers a path to improving business agility. Your California Consumer Rights. The resulting data is used to finalize adjustments to the value stream budgets. Since the portfolio roadmap may span multiple years, estimating longer-term initiatives requires Agile methods. Looking for Some Stability? Look No Further Than This Dividend Stock To continuously connect strategy to execution, the leadership team continuously assesses these targets: To achieve enterprise agility, the leadership team facilitates periodic reviews: Adopting lean practices into existing portfolio leadership teams is a significant change and requires strong organizational change management practices. Effective collaboration across the portfolio requires the continuous communication of the portfolio vision, goals, ideas, and expectations openly and transparently. Get started with ProjectManager today for free. These cookies will be stored in your browser only with your consent. The objectives of Lean Portfolio Management are to: LPM differs from traditional project portfolio management in a number of ways, including: While traditional Project Portfolio Management (PPM) focuses on creating a set of tightly structured project plans and building short-lived teams to execute those plans, LPM focuses on: Portfolio management leadership teams connect an organizations strategy to its execution. FAQs on how to use SAFe content and trademarks, Create a Lean-Agile Center of Excellence (LACE), Watch and download SAFe videos and presentations. This new approach to planning and budgeting includes understanding the historical and forecasted future costs associated with each Solution and forecasted epics costs. The cookies is used to store the user consent for the cookies in the category "Necessary". Lean portfolio management is used throughout the life cycle of your portfolio. The point is to identify what isnt creating value and eliminate that waste. Its designed to holistically improve every department at all levels of strategic value. It unleashes all portfolio members creative and productive energy toward achieving its goals and further unlocks peoples intrinsic motivation. Over the last decade, some enterprise leaders have improved responsiveness and speed-to-market by shifting to portfolios of strategic initiatives implemented by team-of-teams. Lean Portfolio Management offers a path to maximizing these advantages and building a more connected enterprise. When should a Lean Portfolio be established? In the spirit of SAFes core value of relentless improvement, the next best action to enhance the portfolio is to begin a focused and deliberate journey to: The critical moves to relentlessly improve portfolios include: The central aim of SAFe is to facilitate the continuous flow of value to customers in the sustainably shortest lead time. Lets first define lean portfolio management and then delve into how it works. Emergent design alone is not sufficient at scale. LPM is one of the seven core competencies essential to achieving Business Agility. Conversely, when the LPM practices described in the previous section are expertly applied, and the specific tactics of Portfolio Flow are put into practice, value can move smoothly from the formation of enterprise strategy to the delivery to the market of the solutions that enable that strategy. Big Data governance manages the availability, usability, integrity, and security of the data in enterprise systems based on internal data standards and policies controlling data usage. Lean thinking is the foundation of Value Stream Management. The VMO has a primary responsibility in improving portfolio flow. Together, they can optimize, address, and debug issues from Agile Teams, ARTs, and value streams. The flow will get value to customers faster, which means customers can pull the product in less time than it had been taking. But few organizations achieve the desired results. Renovate - Even within the same organization, no two leadership teams will want to take exactly the same approach to agile portfolio operations. Energy flows where intention goes. SAFe SPC Exam Questions for Practice.docx - When should a Lean These cookies ensure basic functionalities and security features of the website, anonymously. In lean portfolio management, one must continuously review and adapt to the changing environment to maintain value and eliminate waste. Here are the steps to get started. Sign up for more agile articles and tutorials. Principle #6- Make value flow without interruptions, 2. This typically includes: Many enterprises have discovered that centralized decision-making and traditional mindsets can undermine the move to Lean-Agile practices. Realize Portfolio Vision Through Epics Many vision changes will require large initiatives (Epics) to achieve the future state. Move back in - Recalibrate the active, funded work into leaner constructs that better support the flow of value, and consider using this opportunity to revisit the rationale for the work (pivot or persevere?). Lean governance closes the loop by measuring portfolio performance and supporting dynamic budget adjustments to maximize value. Strategy and investment funding ensures the right work is happening at the right time. Continuous and early feedback on current initiatives, coupled with a Lean approach to funding, allows the portfolio to make the necessary adjustments to meet its business targets. Lean portfolio management (LPM) is a new way of managing company portfolios to increase efficiency and boost customer satisfaction. Here is a simple but effective series of steps to get started. Your journey to Lean Portfolio Management. In the last article, Launch More ARTs and Value Streams, we described how to drive and facilitate the broader implementation of SAFe. This competency has proven to improve business outcomes for SAFe enterprises building the world's most important . The focus areas of the LPM function include strategy and investment planning, lean governance and agile operations. But SAFe is a complex and multifaceted scaling framework, and successful implementation requires commitment from program and portfolio management leaders. These articles define flow with a set of eight flow accelerators that foster operational excellence. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. This event has a more operational focus than the strategic portfolio review.
