This makes enterprise architecture a critical component of strategy and investment funding. evaluate the health of existing portfolios, identify the areas of greatest opportunity for improvement, then. Lean audit and compliance provide continuous adherence while minimizing overhead and supporting the ongoing flow of value. The cookie is used to store the user consent for the cookies in the category "Performance". 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). Principle #6- Make value flow without interruptions, 2. Read more:Fuel Digital Business With Product Management. One example might describe how continuous communication and visibility of strategic initiatives can create better alignment between product development priorities and the businesss goals. 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. For example, executive leaders are crucial to effective implementation. When should a Lean Portfolio be established a. This cookie is set by GDPR Cookie Consent plugin. Except for Funnel, it is essential to set WIP limits for every state for a value-driven Kanban system. Analytical cookies are used to understand how visitors interact with the website. This is my third . (See Lean Budgets for more information). The point is to identify what isnt creating value and eliminate that waste. 1. 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. Effective data governance ensures that data is consistent and trustworthy and doesnt get misused.[1]. DiscoverGartner BuySmart:Reduce risk and optimize spend on your next tech purchase. Boulder, CO 80301 USA, Privacy Policy Enterprise Architects help improve results by offering architectural governance and fostering the right balance between intentional and emergent design. devote the people and resources required to implement the most valuable enhancements. 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. Gaining portfolio alignment requires people to work toward a shared goal and purpose beyond any individual, team, ART, or value stream. The lean principles provide a shared mindset for everyone involved in solution delivery to improve operational efficiency and eliminate delays. There are other reports, too, such as for timesheets, workload, variance and more. The people who fulfill the LPM function have various roles and titles and often reside in different parts of the organizations hierarchy. a. A SAFe Portfolio primarily measures business outcomes by definingObjectives and Key Results (OKR) for Strategic Themes and Value Stream Key Performance Indicators (KPIs). You can also customize reports and get a portfolio status generated with only a few keystrokes. The cookie is used to store the user consent for the cookies in the category "Other. Lean portfolio management is used throughout the life cycle of your portfolio. epics moving through the portfolio encounter bottlenecks, the portfolio takes on too much WIP, exceeding the capacity of its value streams, portfolio leaders continue to apply legacy waterfall governance policies to Agile development, shifts in solution strategy are not validated with customers through fast feedback, Analysis of value flow has revealed bottlenecks. Market rhythms. Ruthlessly apply the feedback to reinvest in ideas that produce good outcomes and downshift on ideas that do not. The information on this page is 2010-2023 Scaled Agile, Inc. and is protected by US and International copyright laws. In the . These obligations impose significant limits on solution development and operations. Good luck. The new ways of working are becoming second nature for those operating within the development value streams. This article recaps the key points, edited for clarity and length. 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. Enterprise Architects also facilitate the reuse of hardware and software components and proven design patterns across the portfolio to help value streams develop and enhance solutions faster and with higher quality. By now, substantial business benefits are growing daily. This is defined by the customers needs from the portfolio. In order to accomplish that goal, its ideal to follow these eight lean portfolio management steps. In order for lean portfolio management to be effective, it must be implemented throughout an organization. Lean Portfolio Management (LPM) describes how senior leadership applies lean principles to connect strategy to execution. 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?). He enjoys helping leadership teams create a compelling path from their current state to a new, leaner way of working. Here is only some of our content thats related to portfolio management. You need to strategize and plan your resource allocation to ensure that every project has what it needs when it needs it. They make them as independent as possible while simultaneously interconnecting and coordinating them with the enterprises larger purpose. Operational excellence focuses on continually improving efficiency, practices, and results to optimize business performance. Error submitting the form. 1. April 1, 2023 black ski weekend aspen 2022 sacramento adjudication center po box 419132 rancho cordova, ca black ski weekend aspen 2022 sacramento adjudication center po box 419132 rancho cordova, ca Apply the SaFe Principles 4. Other insights could emphasize matching new feature demand to the capacity of the value streams to drive faster value delivery. These assets include: While training and field-tested guidance are essential, the most critical success factor for adopting LPM is for leaders with portfolio responsibilities to fully engage in the change process and incorporate LPM practices into their individual roles. In so doing, the portfolio of investments is managed over its investment life cycle through agile development and business strategy. This can be difficult when dealing with cross-functional teams, but itll boost productivity if youre successful. For most organizations, the next best focus area for the transformation is to enhance and improve the effectiveness of the SAFe portfolios. 2023Gartner, Inc. and/or its affiliates. We have lean portfolio management tools such as a live portfolio dashboard that captures six metrics across the portfolio to get a high-level view of performance and progress. You will need to understand 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 Lean Portfolio Management function Terms in this set (52) Lean portfolio management depends on the ability to see all your projects in one place. Please refine your filters to display data. Please visit. Your California Consumer Rights. Download this Gartner Technology Adoption Roadmap to get insights on adoption timelines and value for emerging technologies and benchmark your technology adoption plan. Get started with ProjectManager today for free. The portfolio and solution roadmaps are bi-directional; each roadmap influences the other. Teams are oriented around their function (marketing, sales, operations), instead of by objective. Make sure you create clearly defined objectives and metrics to measure their performance. Lean Portfolio Management offers a path to maximizing these advantages and building a more connected enterprise. 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. Ideally, adjustments to value streams can be implemented by simply adjusting team backlogs to support the reconfigured value streams. Lean Portfolio Management (LPM) - 77%. If this is your current state, then full-blown SAFe, especially Lean Portfolio Management (LPM), is probably too much at this point. Although many value streams operate independently, cooperation among solutions can provide unique, differentiating portfolio-level capabilities and benefits that competitors cant match. Portfolio business and enabler epics, capture, analyze, and approve new business and technology initiatives. and 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. Get started with ProjectManager today for free. This allows you to prioritize work across your value streams and make adjustments to work according to demand. 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. SAFe addresses big data concerns at the portfolio level as it requires vision, investment, and governance within and across the value streams within the portfolio. Lean governance is overseeing and making decisions on forecasting and budgeting, measurements of portfolio performance and coordinating continuous compliance. Our software is cloud-based, meaning you get real-time data to make better decisions. Every enterprise has portfolios of products and solutions, whether the practices of Lean portfolio management have been adopted or not. These cookies ensure basic functionalities and security features of the website, anonymously. LPM plays a leadership role in operational excellence, helping the organization achieve its business goals. The resulting data is used to finalize adjustments to the value stream budgets. 2023 Scaled Agile, Inc. All rights reserved. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. Guardrails support these budgets by providing governance and spending policies and practices. When should a Lean portfolio be established? Each responsibility is described in the sections that follow. Begin by coming up with themes that reflect your strategic priorities by defining your strategies, turning them into investments and assigning goals to them. Adopting LPM helps organizations shift from traditional practices to a Lean-Agile approach, as shown in Figure 1. It unleashes all portfolio members creative and productive energy toward achieving its goals and further unlocks peoples intrinsic motivation. SAFe principles and the Lean-Agile mindset foster the decentralizationof strategy execution to empowerAgile Release Trains (ARTs) and Solution Trains. 8 a.m. 7 p.m. 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. When should a Lean Portfolio be established? The use of a lean portfolio management tool such as ProjectManager is essential for the successful implementation and execution of your lean portfolio management. 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). and 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. 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! Who provides the funding to keep the lights on (or run the business vs. change the business)? 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. Here youll plan from the top down your budget, estimating what funding youll need with cost-management planning. But where should a portfolios leaders begin? Since the portfolio roadmap may span multiple years, estimating longer-term initiatives requires Agile methods. Scaled Agile Framework and SAFe are registered trademarks of Scaled Agile, Inc. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. 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. 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. Reorganize into value streams. If you have subject matter experts in your company they, too, are key to making lean portfolio management work. This event has a more operational focus than the strategic portfolio review. 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. Interested in learning more about Lean Portfolio Management? I have read, understood and accepted Gartner Perfection is a goal thats impossible to meet, but the pursuit of it reduces waste and offers greater value to customers. jsbacContactjsbacContact Renovate - Even within the same organization, no two leadership teams will want to take exactly the same approach to agile portfolio operations. Realize Portfolio Vision Through Epics Many vision changes will require large initiatives (Epics) to achieve the future state. LPM events can be broken down as follows: Participatory Budgeting: A less-frequent event (e.g., twice an year) to determine investments across the portfolio. 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. But opting out of some of these cookies may have an effect on your browsing experience. Lean Portfolio Management 1.2) What are 4 things a Lean-Agile Leader must do? We just dont have a good business discipline for converging on issues this abstract. Adopting an enterprise-level model like Scaled Agile Framework (SAFe)* lean portfolio management can help PPM leaders align their portfolios with strategic business outcomes and improve investment decisions across the portfolio. 4.3 (7 reviews) Term. Gartner Terms of Use This will give you an idea if its the right strategy to execute your portfolio management. These cookies will be stored in your browser only with your consent. All views update in real time so theres one source of truth. It provides feedback to the enterprise via the portfolio context (described in the Enterprisearticle). Weve mentioned the five lean principles, but seeing how important they are to lean portfolio management, they deserve a bit of explaining. When should a Lean Portfolio be established? Strategy and investment funding ensures that the entire portfolio is aligned and funded to create and maintain the solutions needed to meet business targets. 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. This cookie is set by GDPR Cookie Consent plugin. Lean portfolio management does this by using the five principles of lean. Lean project management is part of an agile methodology that aims to increase customer value by removing project waste. Combining LPM with agile development practices offers a path to improving business agility. 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. A connected enterprise with full alignment is key to competing in the modern economy. Lets first define lean portfolio management and then delve into how it works. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Successfully defining and executing a strategy in a world of increasing uncertainty is challenging. ThePortfolio Vision describes the future state of its development value streams and solutions. Scaled Agile provides extensive training and guidance for launching LPM, built from success patterns emerging from the field. Unfortunately, this choice can inhibit the adoption of successful execution patterns, standard measures, and reporting that can be developed and applied across the portfolio. Neither images nor text can be copied from this site without the express written permission of the copyright holder. Because LPM is vital to the enterprise, executives and business owners who understand the financial, technical, and business contexts hold strategy and investment funding responsibilities. Monday through Friday. PPM leaders can map their traditional portfolio management practices to the portfolio Kanban states. Modernizing portfolio management is critical to supporting SAFes Lean-Agile way of working and competing in this new reality. CapEx vs OpEx spending. 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). Value Stream coordination defines how to manage dependencies and exploit the opportunities that exist only in the interconnections between value streams. Necessary cookies are absolutely essential for the website to function properly. Embrace a Lean-Agile mindset 3. Here are the steps to get started. LPM has the highest decision-making and financial accountability for the solutions and development value streams in a SAFe portfolio. Separate Consent Letter Continuous delivery is an agile development principle often incorporated in lean portfolio management as part of its value stream. These principles are defining value, mapping the value stream, creating flow, establishing pull and pursuing perfection. 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). The following sections describe these dimensions. Sign up for more agile articles and tutorials. Emergent design alone is not sufficient at scale. Because some portfolio initiatives may take years to develop and are safety critical (for example, aerospace, autonomous vehicles, and cyber-physical systems), a larger planning horizon beyond a few PIs may be required. 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. Here are the steps to get started. How many different, independently funded strategies will be driving the portfolio? For more information, see the advanced topic article and whitepaper:Achieving Regulatory and Industry Standards Compliance with SAFe. DevOps and Release on Demand 4. Business Solutions and Lean Systems Engineering 5. X When the lack of communication between strategy and execution is hurting value Boulder, CO 80301 USA, Privacy Policy Relevant stakeholders (essential, not merely interested parties) can attend these events and leverage the portfolio metrics and other insights provided by the APMO. These articles define flow with a set of eight flow accelerators that foster operational excellence. 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. Lead the transformation Our flexible software can work in agile environments, more traditional methodologies, such as waterfall, or a hybrid for cross-functional teams. When organizations evaluate those outputs in short feedback loops, they can quickly recalibrate short-term plans, based on what they see. ART Flow, and 5. Privacy Policy. FAQs on how to use SAFe content and trademarks, Create a Lean-Agile Center of Excellence (LACE), Watch and download SAFe videos and presentations. When organizations set objective-based goals, captured as desired business outcomes, the incremental outputs can be evaluated against the desired business outcomes. This cookie is set by GDPR Cookie Consent plugin. ProjectManager is not just a lean portfolio management tool, its also the leading project management hub online. This cookie is set by GDPR Cookie Consent plugin. Successfully establishing portfolio flow requires knowing the total capacity for new development work versus ongoing maintenance and support activities. and In order to eliminate waste and drive value to customers, you must maximize your workforce without over-allocating and burning them out. There shouldnt be any interruptions, delays or bottlenecks. The portfolio needs to understand its role in achieving the enterprise strategy. These cookies will be stored in your browser only with your consent. Cookie Policy Of course, you have to find those inefficiencies first. (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 . Instead, alignment provides a powerful way to turn the portfolio vision into an executable strategy. The teams of Portfolio Management collect a budget towards the execution of that particular strategy by learning about the strategy of the company. 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. You see start and end dates across your portfolio to help you allocate resources more effectively. Clients receive 24/7 access to proven management and technology research, expert advice, benchmarks, diagnostics and more. Traditional compliance procedures tend to defer these activities to the end of the project. This is the subject of the next critical move: Accelerate. Over time organizations may find that those early decisions on organizing around value are not working as well as they did at the beginning of the transformation. By clicking the "Subscribe" button, you are agreeing to the Lean Governance - provides oversight and decision-making of spending, audit, compliance, forecasting expenses, and performance measurement. It saves money for both the manufacturer and the customer. Lean project management is part of an agile methodology that aims to increase customer value by removing project waste. Everyone working for you should be involved in this type of lean portfolio management. Lean Portfolio Management brings time-tested lean principles to the teams and leaders that are best positioned to drive organizational change. 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
