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? X When the lack of communication between strategy and execution is hurting value delivery Plans arent chiseled in stone. The color-coded workload chart makes it easy to see who is over-allocated and who is under-allocated, on vacation or assigned to a task. It provides feedback to the enterprise via the portfolio context (described in the Enterprisearticle). Portfolio Flow, 3. This website uses cookies to improve your experience while you navigate through the website. Privacy Policy. Gartner Terms of Use Lean portfolio management is a process by which strategy is aligned with execution using a lean approach and agile portfolio operations and governance. Gartner Terms of Use Cookie Policy Pain point #1: Long cycle times on large initiatives. For example, executive leaders are crucial to effective implementation. When should a Lean Portfolio be established? For organizations that began their LPM adoption earlier in the implementation roadmap, there are additional opportunities for further growth to realize all the benefits of Lean portfolios. 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. ET The roadmap can be customized and filtered to show just what you need to see to make sure youre meeting objectives. The portfolio connects to the enterprise business strategy through Strategic Themesand the portfolio budget. Click here to view the entire roadmap. This cookie is set by GDPR Cookie Consent plugin. 4.3 (7 reviews) Term. 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. Our people have day-to-day jobs and also are subject matter experts on projects. Our resource management tools help you see team availability, including global holidays, but also oversee their workload across your portfolio. In other words, they capture the large-scale or significant investments occurring within a portfolio. 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. Relevant stakeholders (essential, not merely interested parties) can attend these events and leverage the portfolio metrics and other insights provided by the APMO. Instead, the business takes a holistic learning, problem-solving, and solution-development approach. Things to think about are the timeline for manufacturing and delivering a product, its price and requirements or expectations to meet. Interested in learning more about Lean Portfolio Management? It does not store any personal data. The Portfolio Flow article guides LPM on accelerating flow and providing continuous epics to achieve the portfolios vision and enterprise business objectives. Once you get to this step, youll be back at the beginning as lean never stops. The Scaled Agile Framework (SAFe) encourages the "build-measure-learn" approach to accelerate agile development. 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. Our portfolio roadmap view shows every project in your portfolio in a Gantt chart timeline. In the previous articles in the SAFe Implementation Roadmap series, we described the first eleven critical moves of the roadmap: By this point in the journey through the SAFe implementation, a lot has been accomplished. The information on this page is 2010-2023 Scaled Agile, Inc. and is protected by US and International copyright laws. This will give you an idea if its the right strategy to execute your portfolio management. Discover the needs and expectations of the portfolio leadership team, including where they want to initially land between their current state and a (leaner) future state. Portfolio business and enabler epics, capture, analyze, and approve new business and technology initiatives. 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. Fill out the form to connect with a representative and learn more. There shouldnt be any interruptions, delays or bottlenecks. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Although many value streams operate independently, cooperation among solutions can provide unique, differentiating portfolio-level capabilities and benefits that competitors cant match. Sign up for more agile articles and tutorials. 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. Combining LPM with agile development practices offers a path to improving business agility. But SAFe is a complex and multifaceted scaling framework, and successful implementation requires commitment from program and portfolio management leaders. Lean Portfolio Management offers a path to maximizing these advantages and building a more connected enterprise. The portfolio needs to understand its role in achieving the enterprise strategy. These obligations impose significant limits on solution development and operations. However, if: then, these interruptions to portfolio flow will negatively impact the teams and trains responsible for building the portfolios solutions. Please refine your filters to display data. Lean portfolio management is used throughout the life cycle of your portfolio. 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. The portfolio and solution roadmaps are bi-directional; each roadmap influences the other. Market rhythms. Use this free Roadmap Template for Excel to manage your projects better. 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. This is article twelvein the SAFe Implementation Roadmap series. We also use third-party cookies that help us analyze and understand how you use this website. Each core competency is supported by a self-assessment, enabling the enterprise to assess its proficiency. 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. As a result, some enterprises have abandoned the PMO approach, distributing all the responsibilities to ARTs and Solution Trains. They make them as independent as possible while simultaneously interconnecting and coordinating them with the enterprises larger purpose. 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. Perfection is a goal thats impossible to meet, but the pursuit of it reduces waste and offers greater value to customers. First, you find and remove the waste in your value stream. You have to note how they relate to one another, which needs what when. Lean Portfolio Management (LPM) is nothing but the practice that explains how senior leadership adopts Lean principles to link strategy with execution. As a last resort, make changes to the composition of individual teams only if absolutely necessary to preserve the cohesiveness of high-performing teams. Figure 8 compares the strategic portfolio review and portfolio sync events. While SAFe has always focused on flow, the importance of flow at the portfolio level and the corresponding practices may have been less obvious. These cookies will be stored in your browser only with your consent. When the lack of communication between strategy and execution is hurting value delivery When there are a minimum of six Agile Release Trains that require coordination When it is part of training the executives 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. If needed, entire teams can be allocated to different ARTs. Many vision changes will require large initiatives (Epics) to achieve the future state. The VMO has a primary responsibility in improving portfolio flow. Implementing SAFe Lean Portfolio Management for Executives 9,938 views Feb 26, 2020 95 Dislike Share Save LitheSpeed 1.07K subscribers Connect your portfolio to enterprise strategy, establish. Plus, they lead by example. The new ways of working are becoming second nature for those operating within the development value streams. Find the money - LPM shifts the strategy and investment model from funding projects to funding team-of-teams. Lets first define lean portfolio management and then delve into how it works. This cookie is set by GDPR Cookie Consent plugin. Lean Portfolio Management (LPM) describes how senior leadership applies lean principles to connect strategy to execution. Begin by coming up with themes that reflect your strategic priorities by defining your strategies, turning them into investments and assigning goals to them. Leaders responsible for vision, strategy, funding, budgets, prioritization, and financial performance may be asking how they can apply the new ways of working to their roles. Rhonda Byrne, Australian author, and TV producer Portfolio Flow The LPM competency aligns strategy and execution by applying Lean and systems thinking approaches to strategy and investment funding, Agile portfolio operations, and governance. Team Flow. And yet, organizations aren't typically structured in a way that allows them to do so. You also have the option to opt-out of these cookies. 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. Gartner Terms of Use 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). Gartner Terms of Use Although everyone in a SAFe portfolio plays a role in VSM, Lean Portfolio Management (LPM) is accountable for establishing the value streams and fostering operational excellence. Here are the steps to get started. When should a Lean portfolio be established? X When the lack of communication between strategy and execution is hurting value When should a Lean Portfolio be established? One of the key tenets of any Lean-Agile practice is the idea of maximizing value for the customer. By clicking the "Continue" button, you are agreeing to the 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. March 6, 2023; dutchess county attorney's office . No setup is requiredwere ready when you are. Value stream configurations need to be evaluated and, if required, reconfigured using the process described in Organize Around Value to better enable smooth and continuous portfolio flow. The cookie is used to store the user consent for the cookies in the category "Analytics". Lean Port Your California Consumer Rights. 1. The value stream is activities that enact your strategies and objectives to deliver value to customers and your business. Successfully defining and executing a strategy in a world of increasing uncertainty is challenging. An additional one-day workshop is available to help enterprise teams get started with LPM in their organization. Take investors in PepsiCo ( PEP 0.22%), for example. devote the people and resources required to implement the most valuable enhancements. When organizations build autonomous, cross-functional teams, they remove handoffs and dependencies that add friction (and delays) to the delivery of value. If adjusted less frequently, spending is fixed for too long, limiting agility. Apply the SaFe Principles 4. Successfully establishing portfolio flow requires knowing the total capacity for new development work versus ongoing maintenance and support activities. This typically includes: Many enterprises have discovered that centralized decision-making and traditional mindsets can undermine the move to Lean-Agile practices. Strategy and investment funding ensures the right work is happening at the right time. Continuous and early feedback on current initiatives, coupled with a Lean approach to funding, allows the portfolio to make the necessary adjustments to meet its business targets. 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. Lean portfolio management (LPM) is a new way of managing company portfolios to increase efficiency and boost customer satisfaction. Each DVS builds, supports, and maintains Solutions delivered to the Customer, whether internal or external to the enterprise. This is defined by the customers needs from the portfolio. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Your journey to Lean Portfolio Management. 8 a.m. 5 p.m. GMT When is an Epic considered done? Except for Funnel, it is essential to set WIP limits for every state for a value-driven Kanban system. Figure 5. illustrates each of these responsibilities, followed by a description of each. The Scaled Agile Framework (SAFe) is a set of organization and workflow patterns for implementing agile practices at enterprise scale. In this model, LPM maintains appropriate levels of oversight through the allocation of . 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. Organizations that focus on defining projects that span more than a year often get stuck in situations where teams are incentivized to meet out-of-date project goals, instead of delivering value early or seeking early feedback on market-fit. Our flexible software can work in agile environments, more traditional methodologies, such as waterfall, or a hybrid for cross-functional teams. Every enterprise uses data to improve its products, optimize operations, and better understand its customers and markets. Lean-Agile Leadership 2. 2023Gartner, Inc. and/or its affiliates. The flow will get value to customers faster, which means customers can pull the product in less time than it had been taking. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. Leverage the cadences to achieve shorter feedback loops. Agile portfolio operations coordinate and support decentralized ART execution and enable operational excellence. Operational excellence focuses on continually improving efficiency, practices, and results to optimize business performance. Realize Portfolio Vision Through Epics Many vision changes will require large initiatives (Epics) to achieve the future state. Theportfolio sync provides visibility into how well the portfolio is progressing toward meeting its objectives. Agile portfolio management helps large teams and developers efficiently manage projects. They create the company culture and help lean thrive within that climate. But opting out of some of these cookies may have an effect on your browsing experience. This event focuses on achieving and advancing the portfolio vision. Get started with ProjectManager today for free. 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. DevOps and Release on Demand 4. Business Solutions and Lean Systems Engineering 5. This cookie is set by GDPR Cookie Consent plugin. In many cases, the focus shifts to the effectiveness of the portfolio. The objectives and key results (OKRs) for the strategic themes, The Epics required to fulfill the portfolio vision, Investment guardrails and funding allocations to ARTs. When there are at least 5 Agile Release Trains d . Get started with ProjectManager today for free. The people who fulfill the LPM function have various roles and titles and often reside in different parts of the organizations hierarchy. Error submitting the form. When should a Lean Portfolio be established a. Energy flows where intention goes. These cookies will be stored in your browser only with your consent. The teams of Portfolio Management collect a budget towards the execution of that particular strategy by learning about the strategy of the company. SAFe LPM Execution Toolkit This toolkit provides templates, tools, and other assets to support the ongoing operation of the LPM function. Well also explain when to use lean portfolio management and how project management software can help you manage your portfolios better. ProjectManager is not just a lean portfolio management tool, its also the leading project management hub online. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Therefore, it is crucial to invest in developing a strong metrics capability. 6. Some changes will require large initiatives to achieve the future state. LPM and its stakeholders need to create business and enabler Epics that feed directly into the Portfolio Backlog. 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. Things have changed since the initial value streams were configured: Organizational Agility (one of the seven core competencies of business agility) is the ability to recognize when things have shifted and a willingness to make adjustments to maintain an optimal flow of value. 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. As new information is learned about the solution set, including customer feedback and Key Performance Indicators (KPIs), the LPM function periodically reviews the portfolio canvas (e.g., quarterly). Lean-Agile Leaders should know that every long-term commitment decreases the organization's agility. This cookie is set by GDPR Cookie Consent plugin. To realize the full value of an agile or digital transformation, business and technology teams must get aligned and stay aligned. Every enterprise has portfolios of products and solutions, whether the practices of Lean portfolio management have been adopted or not. and ThePortfolio Vision describes the future state of its development value streams and solutions. Renovate - Even within the same organization, no two leadership teams will want to take exactly the same approach to agile portfolio operations. Continuous compliance To perform the role of a Lean Portfolio Manager, attendees should be able to: Describe Lean Portfolio Management (LPM) Connect the portfolio to enterprise strategy; . Clients receive 24/7 access to proven management and technology research, expert advice, benchmarks, diagnostics and more. Build an operating structure that embodies the key pieces of LPM, with a customized feel. Weve seen the term portfolio used in different ways: What do they have in common? For most organizations, the next best focus area for the transformation is to enhance and improve the effectiveness of the SAFe portfolios. Its typically held on a quarterly cadence, at least one month before the next PI Planning event, to enable value streams to prepare and respond to any changes. 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. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. 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). Here youll plan from the top down your budget, estimating what funding youll need with cost-management planning. Early in the Implementation Roadmap, work was done to identify value streams and organize ARTs around the flow of value. Read more: 5 Organizational Change Pitfalls PPM Leaders Should Avoid. SAFe principles and the Lean-Agile mindset foster the decentralizationof strategy execution to empowerAgile Release Trains (ARTs) and Solution Trains. Ruthlessly apply the feedback to reinvest in ideas that produce good outcomes and downshift on ideas that do not. This can be difficult when dealing with cross-functional teams, but itll boost productivity if youre successful. If this is your current state, then full-blown SAFe, especially Lean Portfolio Management (LPM), is probably too much at this point. The information on this page is 2010-2023 Scaled Agile, Inc. and is protected by US and International copyright laws. 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. This website uses cookies to improve your experience while you navigate through the website. 1. 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 Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. So how do you sustain this over the long term? (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 . Lean management began when engineers at Toyota created a system to reduce waste in their manufacturing line. Privacy Policy. hbspt.forms.create({region:"na1",portalId:"6111124",formId:"0f7c30a4-c87e-4796-88b4-83ed801169ee",onFormSubmit:function(a){var e=a.find('input[name="email"]').val();setTimeout(function(){window.location.href="https://www.projectmanager.com/freetrial?email="+encodeURIComponent(e)},500)}}); Learn more about ProjectManager and how it can improve your business, Discover app combinations that improve your productivity, Set milestones, connect dependencies and track progress, Collect and view real-time data on your work for key insights, Manage portfolios, align objectives and get high-level overviews, Generate in-depth, easy-to-read reports to share progress, Prioritize and execute your work with transparency and agility, Organize and manage your tasks to boost team productivity, Share files, add comments, and work together in real-time, Create automated workflows and improve productivity, For small-to-medium teams that need to manage robust projects, For medium-to-large teams that need to optimize portfolios, For organizations that need customized security and priority support, Reduce lead time, ensure quality and perfect your process, Create schedules, manage crews and deliver under budget, Streamline IT processes and scale up with ease, Plan projects, track progress and manage resources, Build comprehensive project plans and organize tasks, Manage backlogs, create workflows and execute sprints, Schedule and assign work to bring your project in on time, Assign resources, balance workload and move forward, Manage your teams, collaborate and track progress, Take control of your work from start to finish, Track your teams time, whether theyre on-site or remote, Learn why 35,000+ users choose our software, Join us in transforming how work gets done, Watch video tutorials for ProjectManagers features, Read the industry-leading blog on work management, Get key insights on major topics in project management, Access documentation on using ProjectManager, Accelerate delivery on your next IT project, Keep track of all the phases of your build, Kickoff your next launch with a premade plan, Plan your sprints with out-of-the-box workflows, Make your next marketing campaign a success, Sync work across all your devices and access it on the go, make adjustments to work according to demand, The 5 Lean Principles: Definitions & How to Use Them, The Ultimate Guide to Project Management Office (PMO), The Ultimate Guide to Project Portfolio Management.

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