So how do you sustain this over the long term? Reorganize into value streams. The first step is to find and form the group that will connect strategy to execution for a specific part of the organization. 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. Lean portfolio management methods help organizations: Lean Portfolio Management, informed by lean principles and built through a better understanding of customer value (and how to deliver it quickly), remedies some common pain points in large organizations. 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. Pain point #3: Budgets are difficult to change based on new information. If you have subject matter experts in your company they, too, are key to making lean portfolio management work. Gartner Terms of Use Make sure you create clearly defined objectives and metrics to measure their performance. This cookie is set by GDPR Cookie Consent plugin. When organizations define goals in terms of targeted business outcomes, they are more likely to move the needle on their key performance indicators (KPIs). This allows you to prioritize work across your value streams and make adjustments to work according to demand. Even front-line employees, HR, customers, suppliers and procurement staff all need to be on board with lean portfolio management to maximize the reduction of waste and increase value to customers. Well also explain when to use lean portfolio management and how project management software can help you manage your portfolios better. Weve mentioned the five lean principles, but seeing how important they are to lean portfolio management, they deserve a bit of explaining. The portfolio connects to the enterprise business strategy through Strategic Themesand the portfolio budget. Apply the SaFe Principles 4. Recommended resources for Gartner clients*: 6 Practices for Effective Portfolio Management, 3 Steps for Starting SAFe Lean Portfolio Management, How PPM Leaders Can Use Zero-Based Prioritization to Refocus Portfolios on Strategic Initiatives. Here are the steps to get started. One option is redesigning the traditional PMO to become a Value Management Office (VMO). The Portfolio Flow article describes why each of the eight flow accelerators in Principle #6 is important to flow at the portfolio level and provides specific practical how to recommendations for implementing each accelerator. Lead the transformation Agile portfolio management helps large teams and developers efficiently manage projects. Be sure to monitor your planned costs against your actual costs to stay on track and reallocate as needed. Perfection is a goal thats impossible to meet, but the pursuit of it reduces waste and offers greater value to customers. SAFe 5.0 - LPM Flashcards | Quizlet Practice Test 1 Flashcards | Quizlet But opting out of some of these cookies may have an effect on your browsing experience. Every enterprise uses data to improve its products, optimize operations, and better understand its customers and markets. 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. The challenge of connecting agile teams into an agile enterprise is that a gap emerges between the teams doing the work and the teams allocating the funding. In many cases, the focus shifts to the effectiveness of the portfolio. Fortunately, many enterprises have already traveled this path, and the change patterns are apparent, as shown in Figure 1. Thats why connecting the portfolio to the enterprise strategy is the primary responsibility of the strategy and investment funding collaboration. Sign up for more agile articles and tutorials. This cookie is set by GDPR Cookie Consent plugin. Gaining portfolio alignment requires people to work toward a shared goal and purpose beyond any individual, team, ART, or value stream. 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). Effective data governance ensures that data is consistent and trustworthy and doesnt get misused.[1]. When should a lean portfolio be established.docx - 1. When The cookies is used to store the user consent for the cookies in the category "Necessary". However, if: then, these interruptions to portfolio flow will negatively impact the teams and trains responsible for building the portfolios solutions.

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