6 easy steps to effective Lean Portfolio Management

The SAFe^® Lean Portfolio Management (LPM) methodology enables organizations that strive to provide maximum value to their customers, to streamline portfolio management across the enterprise and alleviate the challenges associated with traditional methodologies. Traditional portfolio management is focused on projects and deliverables, whereas LPM focuses on organizational outcomes. The Lean strategy accelerates the delivery of value, develops the portfolio vision, controls the portfolio expenditure, and fosters servant leadership. This is the reason why most businesses around the world are looking out for individuals who have completed the SAFe^® Lean Portfolio Management (LPM) certification.

SAFe^® Lean Portfolio Management is a crucial component of the Scaled Agile Framework. It focuses on aligning organizational strategies with execution via the application of lean concepts and governance.

Here are the steps to implement SAFe^® Lean Portfolio Management and experience its advantages:

1. Prioritize strategic alignment through leadership training

The shift from traditional portfolio management to SAFe^® Lean Portfolio Management is not easy. The leadership style required to implement a Lean-Agile transformation in an organization is much different compared to what has been practiced in businesses over the previous decade. Enterprises must prioritize strategy implementation through a focus on upskilling executives throughout the company to embrace Lean-Agile techniques and concepts in order to assure the sustainability of the migration to Lean Portfolio Management. If required, the organization must replace the existing leaders with servant leaders that have completed the SAFe^® Lean Portfolio Management (LPM) certification. A Lean-Agile mindset is essential for driving an organization towards change.

2. Reorganized into value streams

The primary focus of Lean-Agile methodology is to deliver maximum value to customers. Teams in LPM are organized based on the value they are supposed to provide.

Value streams are created around a certain service or solution, particular verticals, or other forms and are sometimes formed with teams organized by competence. Individuals or teams will continue to fulfill specialized responsibilities, but they will do so in collaborative efforts with those who share common objectives. Organizations that employ effective processes and robust value streams can boost the overall worth of their products or services. This can help them attract a broader range of clients and maintain a competitive edge in the market.

3. Develop and Communicate Your Portfolio Vision

Portfolio Vision is just the portfolio’s future condition. It gives a long-term perspective to Agile teams and teams of teams working on different solutions to accomplish that goal.

The vision statement motivates team members to take responsibility and embark on a long-term path to attain that future state.

4. Facilitate data-driven decision-making and fact-based progress measurement

Decisions in Lean-Agile companies are based on evidence rather than opinion. Ideas are assessed depending on the degree to which there are facts to back them up. The ‘best’ ideas are those that are backed by authentic and reliable data and meet business objectives in the most effective way.

Lean-Agile organizations encourage research and constant improvement, and hence growth and innovation, by leveraging data as the basis for both making decisions and assessing the success of those decisions.

5. Emphasis on customer feedback

When performing LPM, you must prioritize customer satisfaction and develop an operational structure to achieve it. Customer feedback assessment is one approach that might enhance customer satisfaction.

Customer feedback assists you in identifying where your traditional techniques fall short and how to enhance them to provide superior value for customers. Using client feedback forms allows you to monitor and organize input more quickly during the process. The results are then analyzed by the team in order to understand and define client expectations.

6. Celebrate Success

Practicing SAFe^® Lean Portfolio Management entails more than just accepting important principles and shifting your attention away from traditional methodologies that have been followed. Once you’ve reached project milestones using this approach, it’s important to celebrate your achievement. It is essential to reward your workforce whenever you accomplish corporate objectives and delight your customers.

Despite the fact that implementing LPM might be difficult, there are some things you could do to make the process easier. Learn the fundamentals of LPM by going for the SAFe^® Lean Portfolio Management (LPM) training, creating a leadership team, getting the appropriate tools, and beginning with a portfolio that has a strong chance of success.

Are you planning to go for the SAFe^® Lean Portfolio Management (LPM) course? You first need to find the right training institute. AgilityPAD is one such reliable and trusted institute offering SAFe^® Lean Portfolio Management (LPM) training. For more details on the upcoming SAFe^® Lean Portfolio Management (LPM) courses, get in touch with AgilityPAD today.