While SAFe has always focused on flow, the importance of flow at the portfolio level and the corresponding practices may have been less obvious. 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! More important is who uses lean portfolio management and lean portfolio management tools to manage the portfolio. Each responsibility is described in the sections that follow. This event has a more operational focus than the strategic portfolio review. Analytical cookies are used to understand how visitors interact with the website. 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. Portfolio business and enabler epics, capture, analyze, and approve new business and technology initiatives. Your California Consumer Rights. 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). Principle #6- Make value flow without interruptions, 2. Build an operating structure that embodies the key pieces of LPM, with a customized feel. These successes formed the foundation of Lean Portfolio Management. Still, they need additional structure to coordinate agile teams and optimize their use. However, this work is not a once-and-done exercise. 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. Project roadmaps are valuable tools in this process as they help portfolio managers by giving them an overview in which they can strategically reallocate resources to maintain value while eliminating waste. Lean thinking is the foundation of Value Stream Management. 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. Lean Portfolio Management (LPM) is nothing but the practice that explains how senior leadership adopts Lean principles to link strategy with execution. It unleashes all portfolio members creative and productive energy toward achieving its goals and further unlocks peoples intrinsic motivation. Scaled Agile provides extensive training and guidance for launching LPM, built from success patterns emerging from the field. How many different, independently funded strategies will be driving the portfolio? If adjusted less frequently, spending is fixed for too long, limiting agility. Market rhythms. Dive deeper into the fundamentals of LPM and see how Atlassian's Jira Align supports it. 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: Frequently Asked Questions LPM adjusts budgets on a cadence, typically every six months or when significant events warrant, as part of the strategic portfolio review or Participatory Budgeting events (see below). The leadership team makes decisions at a set cadence, and both the operations (activities they perform) and the governance (reviews that they hold) follow that cadence to synchronize and align the planning and feedback loops. Lean portfolio management is used throughout the life cycle of your portfolio. 3 Steps to Start Lean Portfolio Management - Gartner Portfolio Events Value Stream coordination defines how to manage dependencies to exploit the opportunities that exist only in the interconnections between value streams. This helps you avoid stockpiling materials and streamlines your equipment inventory. Get started with ProjectManager today for free. Privacy Policy. Discover the needs and expectations of the portfolio leadership team, including where they want to initially land between their current state and a (leaner) future state. Demand, whether operational or from a customer request, should be prioritized against your strategic priorities and carried out after reviewing the estimated cost and benefits expected. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". This can be difficult when dealing with cross-functional teams, but itll boost productivity if youre successful. Lean Portfolio Management: Lean-Agile Governance - Planview Blog and hbspt.forms.create({region:"na1",portalId:"6111124",formId:"0f7c30a4-c87e-4796-88b4-83ed801169ee",onFormSubmit:function(a){var e=a.find('input[name="email"]').val();setTimeout(function(){window.location.href="https://www.projectmanager.com/freetrial?email="+encodeURIComponent(e)},500)}}); Learn more about ProjectManager and how it can improve your business, Discover app combinations that improve your productivity, Set milestones, connect dependencies and track progress, Collect and view real-time data on your work for key insights, Manage portfolios, align objectives and get high-level overviews, Generate in-depth, easy-to-read reports to share progress, Prioritize and execute your work with transparency and agility, Organize and manage your tasks to boost team productivity, Share files, add comments, and work together in real-time, Create automated workflows and improve productivity, For small-to-medium teams that need to manage robust projects, For medium-to-large teams that need to optimize portfolios, For organizations that need customized security and priority support, Reduce lead time, ensure quality and perfect your process, Create schedules, manage crews and deliver under budget, Streamline IT processes and scale up with ease, Plan projects, track progress and manage resources, Build comprehensive project plans and organize tasks, Manage backlogs, create workflows and execute sprints, Schedule and assign work to bring your project in on time, Assign resources, balance workload and move forward, Manage your teams, collaborate and track progress, Take control of your work from start to finish, Track your teams time, whether theyre on-site or remote, Learn why 35,000+ users choose our software, Join us in transforming how work gets done, Watch video tutorials for ProjectManagers features, Read the industry-leading blog on work management, Get key insights on major topics in project management, Access documentation on using ProjectManager, Accelerate delivery on your next IT project, Keep track of all the phases of your build, Kickoff your next launch with a premade plan, Plan your sprints with out-of-the-box workflows, Make your next marketing campaign a success, Sync work across all your devices and access it on the go, make adjustments to work according to demand, The 5 Lean Principles: Definitions & How to Use Them, The Ultimate Guide to Project Management Office (PMO), The Ultimate Guide to Project Portfolio Management. Our flexible software can work in agile environments, more traditional methodologies, such as waterfall, or a hybrid for cross-functional teams. Lean Governance - provides oversight and decision-making of spending, audit, compliance, forecasting expenses, and performance measurement. We publish multiple blogs weekly and have tutorial videos, guides and free templates for Excel and Word that you can download to help manage your portfolio. These obligations impose significant limits on solution development and operations. Each DVS builds, supports, and maintains Solutions delivered to the Customer, whether internal or external to the enterprise. Thestrategic portfolio review event provides ongoing strategy, implementation, and budget alignment. Here we illustrate the approach to implementing a Portfolio Kanban system. Figure 8 compares the strategic portfolio review and portfolio sync events. When should a Lean Portfolio be established? When is an Epic considered done? We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. jsbacContactjsbacContact VMO activities often include the following: While flow-based guidance is embedded throughput SAFe, a five-article series directly addresses impediments to flow: 1. when should a lean portfolio be established? - autaza.com With the deeper discussion of the eight flow accelerators in Principle #6 and the new Portfolio Flow article introduced in SAFe 6.0, the ways to achieve a continuous flow of value through the portfolio are explicit and actionable. Practice Test 1 Flashcards | Quizlet Operating under the auspices of LPM, the LACE also plays a significant role in fostering operational excellence. The cookies is used to store the user consent for the cookies in the category "Necessary". To close this gap, leaders need the ability to: As businesses seek alignment and to stay aligned, they often find traditional methods of portfolio management are ineffective. when should a lean portfolio be established? Naturally, managers and supervisors are also involved. Lean-Agile Leaders should know that every long-term commitment decreases the organization's agility. Figure 2 illustrates the three dimensions of LPM, followed by a brief description and a set of roles needed for its responsibilities. Theyre a valuable resource that should be tapped by teams. The current and future state difference represents the gap that LPM translates into the vision. Please try again later. This website uses cookies to improve your experience while you navigate through the website. A SAFe Portfolio primarily measures business outcomes by definingObjectives and Key Results (OKR) for Strategic Themes and Value Stream Key Performance Indicators (KPIs). When organizations define goals in terms of targeted business outcomes, they are more likely to move the needle on their key performance indicators (KPIs). They make them as independent as possible while simultaneously interconnecting and coordinating them with the enterprises larger purpose. 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. The cookies is used to store the user consent for the cookies in the category "Necessary". Overall, the lean approach drives reliable value delivery, reduces time to customer value, and ensures that teams can pivot as the marketplace changes or customer demands shift. Use task, resource and risk management features to keep your project, portfolio or program on track. 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. 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. Organizations, at times, include the mix of agile and waterfall processes in the Portfolio Kanban to make their heterogeneous portfolio visible across the board. LPM is one of the seven core competencies essential to achieving Business Agility. The objectives and key results (OKRs) for the strategic themes, The Epics required to fulfill the portfolio vision, Investment guardrails and funding allocations to ARTs. Combining LPM with agile development practices offers a path to improving business agility. X When the lack of communication between strategy and execution is hurting value 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. For most organizations, the next best focus area for the transformation is to enhance and improve the effectiveness of the SAFe portfolios. and It saves money for both the manufacturer and the customer. Find the owners - Portfolio leadership teams are high-performing, cross-functional teams of servant leaders. The color-coded workload chart makes it easy to see who is over-allocated and who is under-allocated, on vacation or assigned to a task. 5400 Airport Blvd., Suite 300 Operating through LPM, the VMO leverages the specialized skills, knowledge, and relationships of the current PMO while transitioning themselves and the portfolio to a new Lean-Agile way of working. and Its designed to holistically improve every department at all levels of strategic value. Measurable benefits in time-to-market, quality, productivity, and employee engagement are being realized. Modernizing portfolio management is critical to supporting SAFes Lean-Agile way of working and competing in this new reality. Use your existing resource capacity to its full extent and remain flexible so you can reallocate as you adapt plans. A Lean Portfolio should be established when the lack of communication between strategy and execution is hurting value delivery because it can help bridge the gap between the two. Please visit. Managers and supervisors are also coaching the teams that are executing the tasks in the projects in the portfolio, who should be working in a lean manner. Ideally, adjustments to value streams can be implemented by simply adjusting team backlogs to support the reconfigured value streams. Fill out the form to connect with a representative and learn more. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. This event focuses on achieving and advancing the portfolio vision. Our portfolio roadmap view shows every project in your portfolio in a Gantt chart timeline. Lean management began when engineers at Toyota created a system to reduce waste in their manufacturing line. 3 Steps to Start Lean Portfolio Management April 27, 2021 Contributor: Ashutosh Gupta PPM leaders looking to implement Scaled Agile Framework (SAFe) lean portfolio management should define the LPM function and leverage the end-to-end visibility of Kanban. These cookies will be stored in your browser only with your consent. They establish a framework for creating an efficient organization of all projects in a portfolio. 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. When organizations build autonomous, cross-functional teams, they remove handoffs and dependencies that add friction (and delays) to the delivery of value. Who is providing the funding to the portfolio? Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. ART Flow, and 5. Perfection is a goal thats impossible to meet, but the pursuit of it reduces waste and offers greater value to customers. Everyone working for you should be involved in this type of lean portfolio management. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. In the . When should a Lean Portfolio be established? So, the next most important focus for enhancing the portfolio is to understand and implement the practices of portfolio flow that can provide the most significant and most immediate improvements to flow. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. Our people have day-to-day jobs and also are subject matter experts on projects. Portfolio managers can find inefficiencies and remove them to increase value and decrease cost. Gartner Terms of Use This typically includes: Many enterprises have discovered that centralized decision-making and traditional mindsets can undermine the move to Lean-Agile practices. Implementing SAFe Lean Portfolio Management for Executives The information on this page is 2010-2023 Scaled Agile, Inc. and is protected by US and International copyright laws. The new ways of working are becoming second nature for those operating within the development value streams.
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