What is Lean Portfolio Management in SAFe®?

With the advancements in technology, the world is changing dramatically and rapidly. Also, customer expectations of businesses and brands are changing quickly. The higher expectations from customers resulted in companies adopting Lean-Agile transformations. To release the full potential of this transformation, the business and tech teams need to remain aligned with each other.

As businesses look for alignment, they find that traditional management methods have become ineffective. Hence, many businesses are hiring individuals with the SAFe^® Lean Portfolio Management (LPM) Certification to drive alignment across the organization.

What does Lean Portfolio Management in SAFe^® mean?

• Lean Portfolio Management refers to the application of Lean principles and systems thinking to connect business strategy to execution.
• By applying the principles of Lean portfolio management, the management team helps improve business agility.
• The portfolio management team understands the organization’s strategy and allocates a budget towards executing the strategy using Lean principles.
• The combination of LPM with agile development practices is a powerful one to bring about improved business Agility.

Crucial elements of Lean Portfolio Management

LPM consists of three key elements. These include:

Strategy and investment funds

• Align the portfolio with the business strategy
• Organization of a portfolio to achieve business goals
• Identifying portfolio status and developing superior results
• Coordination and cooperation of different teams
• Establishing portfolio flow
• Adopting Lean budgeting

Agile portfolio operations

• Assist in the execution of various programs
• Improve operational efficiency
• Increase competitiveness in the market
• Improve the delivery of results

Lean Governance

• Effective delivery of customer value
• Providing the right structure and processes
• Measuring the performance of the Lean portfolio
• Conducting a retrospective of the portfolio team
• Coordination across value streams
• All teams are well-equipped to complete their work
• Judicious spending of investments
• Monitoring and mitigation of risks
• Focus on long-term and short-term organizational goals
• Effective teamwork between the organization’s teams and stakeholders

The purpose of applying Lean Portfolio Management principles

With increasing competition, the rise of digitalization, and globalization, organizations are under intense pressure to perform.

Here are the reasons why organizations tend to adopt SAFe^® and LPM by hiring employees who have completed the SAFe^® Lean Portfolio Management (LPM) certification.

• Focus on delivering incremental value
• Minimize the delay of deliverables to clients
• Use feedback from customers, end-users, and stakeholders to measure an organization’s target
• Successfully build independent teams
• Modify short-term goals quickly
• Better budgeting for the organization
• Addressing various challenges and bottlenecks

Lean Portfolio Management vs Traditional Project Portfolio Management

There is a big difference between traditional project portfolio management and Lean Portfolio Management. Here are the key differences.

In LPM,

• Work is directly brought to the people and not vice versa.
• The focus is on defining the desired results, and not on the number of outputs.
• More focus on value delivery than cost management.
• Quarterly management of budgets rather than yearly.
• Reanalyzing past decisions and plans each quarter depending on the new feedback.

What are the goals and objectives of Lean Portfolio Management?

• Maximizing the delivery of value in the marketplace.
• Removing obstacles and bottlenecks to lower the delivery cycle times.
• Balancing the funding for capacity with demand for opportunities of the highest value.
• Enhancing the speed and efficiency of deliverables.
• Developing products and solutions for customers using Agile development.
• Identify the most valuable opportunities.
• Manage the work in progress across teams to accelerate value delivery.

Interested in learning more about Lean Portfolio Management or developing a career in it? A SAFe^® Lean Portfolio Management (LPM) certification will assist you in thoroughly learning the Lean principles in order to drive organizational change. SAFe^® Lean Portfolio Management (LPM) training has many advantages, such as optimizing organizational processes, improving product quality (thus reducing the number of revisions required), a high level of responsiveness to customer issues, and improved customer interaction.

There is a huge shortage of individuals who have knowledge about Lean Portfolio Management in SAFe^®. A SAFe^® Lean Portfolio Management (LPM) Course is the perfect way to bridge the existing knowledge gap. Enroll for the SAFe^® Lean Portfolio Management (LPM) training at AgilityPAD today to learn the key Lean Portfolio Management skills and put them to practice in reality.

For more details about the SAFe^® Lean Portfolio Management (LPM) course, contact AgilityPAD, a trusted name in the world of training, for upcoming SAFe® Lean Portfolio Management (LPM) certification courses.