But opting out of some of these cookies may have an effect on your browsing experience. 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. Here are the steps to get started. Thats why connecting the portfolio to the enterprise strategy is the primary responsibility of the strategy and investment funding collaboration. VMO activities often include the following: While flow-based guidance is embedded throughput SAFe, a five-article series directly addresses impediments to flow: 1. Each portfolio establishes the minimum metrics needed to measure portfolio performance to ensure: Measure and Grow is how portfolios evaluate their progress toward business agility and determine their next improvement steps. For example, they can map the work requests in the demand-intake process and under initial review to Reviewing. That subjects the enterprise to the risk of late discovery, subsequent rework, and even compromising regulatory or legal exposure. It focuses on "Epics" building blocks that capture the longest story arc of a portfolio. spc q 6.txt - 6. When should a Lean portfolio be established? X When Adopting LPM For those organizations that have not yet adopted LPM, the best way to enhance the portfolio is to start the LPM adoption process! 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. Guardrails support these budgets by providing governance and spending policies and practices. Understanding the epics forecasted costs and gaining a high-level view of when the potential new value can be delivered is essential for comparing investments (see the portfolio roadmap described earlier). The portfolio sync is generally held monthly and may be replaced with the strategic portfolio review on a given month. 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. SAFe SPC Exam Questions for Practice.docx - When should a Lean 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. To this end, Lean-Agile leaders understand their value streams challenges and opportunities. They establish a framework for creating an efficient organization of all projects in a portfolio. Thestrategic portfolio review event provides ongoing strategy, implementation, and budget alignment. ProjectManager is online portfolio management software that delivers real-time data to make better decisions when managing a portfolio. Adopting LPM helps organizations shift from traditional practices to a Lean-Agile approach, as shown in Figure 1. when should a lean portfolio be established? - rrrc.com Sometimes overlooked, contractors and Suppliers should be part of the cost equation. Learn the new rules to transformational agility. Lean portfolio management is used throughout the life cycle of your portfolio. devote the people and resources required to implement the most valuable enhancements. 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. Shift the operations focus to delivering incremental value at shorter cadences for larger initiatives. The remainder of this article provides guidance on how enhancing the portfolio can help leaders seize these opportunities and unlock the full potential of the new ways of working. Find the money - LPM shifts the strategy and investment model from funding projects to funding team-of-teams. Lean Budget Guardrails - Scaled Agile Framework 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. Since epics often have lots of uncertainty, its good practice to use the SAFe Lean Startup Cycle for their implementation. when should a lean portfolio be established? Examples include developing an e-commerce website, medical device, or satellite and developing and deploying a software application within an enterprise for internal customers. 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. Program management vs. project management, Product design process customer interview, Collaborative design in agile teams video, Connecting business strategy to development reality, Learn how to create an agile board in Jira Software, Learn how to use sprints in Jira Software, Auto-create sub-tasks and update fields in Jira, How to automatically assign issues with Jira Software Automation, How to sync epics stories with Jira Software Automation, Automatically escalate overdue issues in Jira, Bringing the work to the people not the people to the work, Focusing on defining the desired outcomes, instead of the desired quantity of outputs, Developing a definition of value and focusingmore on value delivery than managing costs, Revisiting past decisions and plans every quarter based on new feedback, Managing budgets and finances quarterly instead of annually, Bringing loosely structured value opportunities to long-standing team-of-teams, Monitoring emerging solutions to iterate toward market fit, Funding is allocated to business leaders to build plans for their own development teams, Funding is allocated to product leaders to build plans to execute their vision, Funding is allocated to execute specific plans expected to yield specific outputs, Funding is allocated to execute specific plans that are expected to yield specific improvements through IT, Funding is allocated to team-of-teams that must use their resources to accomplish the initiatives. Scaled Agile Framework and SAFe are registered trademarks of Scaled Agile, Inc. The Lean Portfolio Management (LPM) competency aligns strategy and execution by applying Lean and systems thinking approaches to strategy and investment funding, Agile portfolio operations, and governance. Monday through Friday. Since the portfolio roadmap may span multiple years, estimating longer-term initiatives requires Agile methods. Lets first define lean portfolio management and then delve into how it works. Portfolio Flow, 3. Measurable benefits in time-to-market, quality, productivity, and employee engagement are being realized. Why is it important to focus on the flow of value through the portfolio when the actual work of solution building occurs in Agile teams and trains? Portfolios connect the enterprises strategy to the execution of value creation by aligning the vision, Lean budgets, value stream organization, and epic priorities with the larger aims of the business. A connected enterprise with full alignment is key to competing in the modern economy. Figure 8 compares the strategic portfolio review and portfolio sync events. Your California Consumer Rights. 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. By now, substantial business benefits are growing daily. Separate Consent Letter These initiatives typically require the collaboration of multiple value streams or the creation of new value streams or ARTs. When there are a minimum of six Agile Release Trains that require coordination When the lack of communication between strategy and execution is hurting value delivery When required by management because it is better to operate in a completely decentralized environment When it is part of training the executives 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. Can any active work be stopped or scaled back? More important is who uses lean portfolio management and lean portfolio management tools to manage the portfolio. (LPM) understands how Strategy and Investment funding is established, how to apply Agile Portfolio operations and Lean governance, and how to build a plan for implementing the . Developing the vision and strategy can be difficult and time-consuming. X When the lack of communication between strategy and execution is hurting value Organizations, at times, include the mix of agile and waterfall processes in the Portfolio Kanban to make their heterogeneous portfolio visible across the board. and These principles are defining value, mapping the value stream, creating flow, establishing pull and pursuing perfection. 2. To continue with this analogy, hereare some tipsfora lean home renovation: Lean Portfolio Management brings time-tested lean principles to the teams and leaders that are best positioned to drive organizational change. When organizations fund team-of-teams through agile budgeting, then empower them to build plans that align to strategic goals, the new distributed accountability model speeds up the overall delivery of value. You also have the option to opt-out of these cookies. The portfolio needs to understand its role in achieving the enterprise strategy. As a result, some enterprises have abandoned the PMO approach, distributing all the responsibilities to ARTs and Solution Trains. Instead, many adopt Lean Portfolio Management practices to drive alignment across the entire organization. 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. Boulder, CO 80301 USA, Privacy Policy The cookie is used to store the user consent for the cookies in the category "Analytics". Get started with ProjectManager today for free. Lean portfolio management is a process by which strategy is aligned with execution using a lean approach and agile portfolio operations and governance. The strategy and investment funding responsibilities (Figure 3) require collaborations among enterprise executives, Business Owners, and Enterprise Architects, including portfolio stakeholders and other technologists. 8 a.m. 7 p.m. So how do you sustain this over the long term? GE recognized the need to combine the speed and agility of a startup with the scale and resources of a large enterprise. A well-trained APMO can make knowledge-sharing more collaborative and fruitful. Solution Train Flow, 4. This forecast includes the MVP, proving or disproving the epics hypothesis and implementation if LPM makes a persevere decision. However, if: then, these interruptions to portfolio flow will negatively impact the teams and trains responsible for building the portfolios solutions. We also use third-party cookies that help us analyze and understand how you use this website. Your journey to Lean Portfolio Management. Project Management Process Groups: A Quick Guide, Project Quality Management: A Quick Guide. 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. ThePortfolio Vision describes the future state of its development value streams and solutions. Ruthlessly apply the feedback to reinvest in ideas that produce good outcomes and downshift on ideas that do not. 1. Practice test safe 4 program consultant 45 4 41when - Course Hero The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". This compliance may address internal or external financial auditing constraints and industry legal or regulatory guidelines. Lean Portfolio Management: Lean-Agile Governance - Planview Blog The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". 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. By clicking the "Continue" button, you are agreeing to the Here is a simple but effective series of steps to get started. 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. While SAFe has always focused on flow, the importance of flow at the portfolio level and the corresponding practices may have been less obvious. It does not store any personal data. 6. When establishing metrics, what might an organisation focus on from a portfolio perspective that closely aligns with SAFe principle. The LACE can coach RTEs, and Scrum Masters/Team Coaches to address, optimize, and debug issues with achieving continuous flow. 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. This cookie is set by GDPR Cookie Consent plugin. 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. The portfolio strategy should support the enterprises broader business objectives. *Note that some documents may not be available to all Gartner clients. Using a roadmap helps see the portfolio across projects and how they relate to one another. Download this Gartner Technology Adoption Roadmap to get insights on adoption timelines and value for emerging technologies and benchmark your technology adoption plan. Figure 2 illustrates the three dimensions of LPM, followed by a brief description and a set of roles needed for its responsibilities. Here youll plan from the top down your budget, estimating what funding youll need with cost-management planning. Lean Budget Guardrails describe the policies and practices for budgeting, spending, and governance for a specific portfolio. Theyre a valuable resource that should be tapped by teams. Click here to view the entire roadmap. Early in the Implementation Roadmap, we recommended that the LACE train executives, managers, and leaders in basic SAFe concepts and specifically in how they can contribute to better value delivery by transitioning to Lean Portfolio Management (LPM). Instead, alignment provides a powerful way to turn the portfolio vision into an executable strategy. 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. When should a Lean Portfolio be established.docx - 1. When They explore scenarios where the portfolio could evolve to a better differentiated future state aligned with the strategic themes.