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. Gartner Terms of Use Each portfolio establishes the minimum metrics needed to measure portfolio performance to ensure: Measure and Grow is how portfolios evaluate their progress toward business agility and determine their next improvement steps. 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. The world is changing fast, and customer expectations are changing just as quickly. 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. When should a Lean Portfolio be established? Lean project management is part of an agile methodology that aims to increase customer value by removing project waste. We just dont have a good business discipline for converging on issues this abstract. X When the lack of communication between strategy and execution is hurting value delivery Gartner Terms of Use More important is who uses lean portfolio management and lean portfolio management tools to manage the portfolio. This helps to maximize your efficiency and realize your strategic objectives. Everyone working for you should be involved in this type of lean portfolio management. Begin by coming up with themes that reflect your strategic priorities by defining your strategies, turning them into investments and assigning goals to them. Agile portfolio operations coordinate and support decentralized ART execution and enable operational excellence. Lean Governance - provides oversight and decision-making of spending, audit, compliance, forecasting expenses, and performance measurement. 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. We publish multiple blogs weekly and have tutorial videos, guides and free templates for Excel and Word that you can download to help manage your portfolio. Lean budgets provide funding for value streams aligned with the business strategy and current strategic themes. The information on this page is 2010-2023 Scaled Agile, Inc. and is protected by US and International copyright laws. Examples include developing an e-commerce website, medical device, or satellite and developing and deploying a software application within an enterprise for internal customers. 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 This work informed the subsequent steps in the roadmap to launch one or more ARTs. Facilitating Value Stream identification workshops, Creating alignment around organizational changes, Providing coaching and training to ART stakeholders, Solution Trains, and Agile Teams, Establishing objective measures for progress, product, and process (see PI milestones in the, Works with the LACE to develop, harvest, and apply successful ART execution patterns across the portfolio, Facilitates Lean budgeting and coordinates portfolio governance, Fosters decentralized PI Planning and operational excellence, Establishes objective metrics and reports progress toward business agility, Focuses the portfolio on measuring and improving value delivery, Leads the move to objective metrics, milestones, and Lean-Agile budgeting, Establishes and maintains the systems and reporting capabilities, Communicates and amplifies the portfolios strategy, Spending aligns with the agreed boundaries, Business outcomes are continually improving without too much oversight of feature implementation. In other words, they capture the large-scale or significant investments occurring within a 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. Portfolio management teams learn about enterprise strategy and how to execute that strategy by allocating the budget. Neither images nor text can be copied from this site without the express written permission of the copyright holder. 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; . yamaha riva 180 starting problems / north richland hills accident reports Microsip Request Timeout , Garmin Aera 660 External Antenna , Windows Batch Split String By Delimiter , Articles W These successes formed the foundation of Lean Portfolio Management. Our flexible software can work in agile environments, more traditional methodologies, such as waterfall, or a hybrid for cross-functional teams. Relevant stakeholders (essential, not merely interested parties) can attend these events and leverage the portfolio metrics and other insights provided by the APMO. Additional conversations could focus on applying Lean thinking to funding and governance practices to eliminate bottlenecks in the flow of value generated within the development value streams. Fortunately, many enterprises have already traveled this path, and the change patterns are apparent, as shown in Figure 1. Lean portfolio management does this by using the five principles of lean. Traditional compliance procedures tend to defer these activities to the end of the project. Figure 8 compares the strategic portfolio review and portfolio sync events. The portfolio and solution roadmaps are bi-directional; each roadmap influences the other. Thats why you want to make lean thinking part of your corporate culture. 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. 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. The flow will get value to customers faster, which means customers can pull the product in less time than it had been taking. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Each responsibility is described in the sections that follow. The LACE is often responsible for leading operational excellence with the help of an RTE and Scrum Master/Team Coach CoP. Once you get to this step, youll be back at the beginning as lean never stops. Project Management Process Groups: A Quick Guide, Project Quality Management: A Quick Guide. You can also customize reports and get a portfolio status generated with only a few keystrokes. Plus, they lead by example. Our people have day-to-day jobs and also are subject matter experts on projects. It consists of the following three measurement domains: The following sections describe these three domains. The first three states emphasize prioritization. When is an Epic considered done? The Agile portfolio operations collaboration and responsibilities (Figure 5) require the active engagement of the Value Management Office (VMO), Lean-Agile Center of Excellence (LACE), Release Train Engineer (RTE), and Scrum Master/Team Coach CoP. Theportfolio sync provides visibility into how well the portfolio is progressing toward meeting its objectives. Throw a party - Lean portfolio leadership teams make decisions and improvements at a set cadence. We also use third-party cookies that help us analyze and understand how you use this website. 2023 Scaled Agile, Inc. All rights reserved. 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. View spc q 6.txt from BUSG MISC at Austin Community College District. Apply the SaFe Principles 4. These should align with the vision of the portfolio. LPM and its stakeholders need to create business and enabler Epics that feed directly into the Portfolio Backlog. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. This requires accurate estimates of resources. 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. Privacy Policy. Shift the operations focus to delivering incremental value at shorter cadences for larger initiatives. Lean governance is overseeing and making decisions on forecasting and budgeting, measurements of portfolio performance and coordinating continuous compliance. Separate Consent Letter 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. This makes enterprise architecture a critical component of strategy and investment funding. While SAFe has always focused on flow, the importance of flow at the portfolio level and the corresponding practices may have been less obvious. This competency has proven to improve business outcomes for SAFe enterprises building the world's most important . Necessary cookies are absolutely essential for the website to function properly. This cookie is set by GDPR Cookie Consent plugin. Overall, the lean approach drives reliable value delivery, reduces time to customer value, and ensures that teams can pivot as the marketplace changes or customer demands shift. 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). The people who fulfill the LPM function have various roles and titles and often reside in different parts of the organizations hierarchy. This is the subject of the next critical move: Accelerate. In order to eliminate waste and drive value to customers, you must maximize your workforce without over-allocating and burning them out. The senior leadership team will apply lean principles to manage the portfolio. The expanding success story of these ARTs and development value streams creates a buzz in the organization about new and better ways of working. Effective data governance ensures that data is consistent and trustworthy and doesnt get misused.[1]. Here is only some of our content thats related to portfolio management. By now, substantial business benefits are growing daily. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. Adopting LPM For those organizations that have not yet adopted LPM, the best way to enhance the portfolio is to start the LPM adoption process! PPM leaders can map their traditional portfolio management practices to the portfolio Kanban states. Read more:Fuel Digital Business With Product Management. Effective collaboration across the portfolio requires the continuous communication of the portfolio vision, goals, ideas, and expectations openly and transparently. 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. These cookies track visitors across websites and collect information to provide customized ads. Lean Portfolio Management offers a path to maximizing these advantages and building a more connected enterprise. They make them as independent as possible while simultaneously interconnecting and coordinating them with the enterprises larger purpose. Our portfolio roadmap view shows every project in your portfolio in a Gantt chart timeline. However, this work is not a once-and-done exercise. And yet, organizations aren't typically structured in a way that allows them to do so. Portfolio managers can find inefficiencies and remove them to increase value and decrease cost. 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 These cookies ensure basic functionalities and security features of the website, anonymously. When organizations set objective-based goals, captured as desired business outcomes, the incremental outputs can be evaluated against the desired business outcomes. Can any active work be stopped or scaled back? Lean governance is the function that supports oversight of spending, audit, compliance, expenditure, measurement, and reporting. Business epics directly deliver business value, while Enabler epics advance the architectural runway to support upcoming business or technical needs. 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. 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. Portfolio Kanban for PPM leaders visualizes and manages the flow of Epics in an end-to-end fashion. Your journey to Lean Portfolio Management. Use your existing resource capacity to its full extent and remain flexible so you can reallocate as you adapt plans. Developing the vision and strategy can be difficult and time-consuming. 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 It provides feedback to the enterprise via the portfolio context (described in the Enterprisearticle). Successfully defining and executing a strategy in a world of increasing uncertainty is challenging. Plans arent chiseled in stone. Indeed, this goes well beyond the words in a slide deck. 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. Theyll carry the day-to-day impact of lean thinking as theyre responsible for deploying lean techniques and using lean portfolio management tools. This forecast includes the MVP, proving or disproving the epics hypothesis and implementation if LPM makes a persevere decision. Improvements in quality, productivity, time-to-market, and employee engagement are meeting or exceeding expectations. You have to note how they relate to one another, which needs what when. LPM adjusts budgets on a cadence, typically every six months or when significant events warrant, as part of the strategic portfolio review or Participatory Budgeting events (see below). Who is providing the funding to the portfolio? The cookies is used to store the user consent for the cookies in the category "Necessary". Organizations are increasingly looking to agile frameworks to manage costs while delivering value and agility effectively. These initiatives typically require the collaboration of multiple value streams or the creation of new value streams or ARTs. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. No setup is requiredwere ready when you are. Boulder, CO 80301 USA, Privacy Policy
Flow and cycle time. 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. In order to accomplish that goal, its ideal to follow these eight lean portfolio management steps. The cookie is used to store the user consent for the cookies in the category "Performance". So how do you sustain this over the long term? In so doing, the portfolio of investments is managed over its investment life cycle through agile development and business strategy. Your California Consumer Rights. 2023 Scaled Agile, Inc. All rights reserved. and Here are the steps to get started. This will give you an idea if its the right strategy to execute your portfolio management. 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. By clicking the "Submit" button, you are agreeing to the This cookie is set by GDPR Cookie Consent plugin. Things to think about are the timeline for manufacturing and delivering a product, its price and requirements or expectations to meet. Learn the new rules to transformational agility. This drives the need for a deeper understanding (and visibility) into the connection between the strategic aims of the business and the way that team-of-teams build plans. Interested in learning more about Lean Portfolio Management? Lean encourages an organization to maximize the work not done. 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. These cookies track visitors across websites and collect information to provide customized ads. When organizations fund team-of-teams through agile budgeting, then empower them to build plans that align to strategic goals, the new distributed accountability model speeds up the overall delivery of value. Analytical cookies are used to understand how visitors interact with the website. 8 a.m. 5 p.m. GMT Please try again later. SAFe provides strategies for Lean budgeting that eliminates the overhead of traditional project-based funding and cost accounting. 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. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Coordinating and supporting decentralized program execution. One option is redesigning the traditional PMO to become a Value Management Office (VMO). It saves money for both the manufacturer and the customer. However, every enterprise should be cautious about such forecasts. Collectively, these competencies work together to create superior economic outcomes. The more alignment you have, the more autonomy you can grantStephen Bungay, author and strategy consultant. Lean management began when engineers at Toyota created a system to reduce waste in their manufacturing line. The cookie is used to store the user consent for the cookies in the category "Performance". But opting out of some of these cookies may have an effect on your browsing experience. The roadmap can be customized and filtered to show just what you need to see to make sure youre meeting objectives. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. You also have the option to opt-out of these cookies. When should a Lean Portfolio be established? Thats why connecting the portfolio to the enterprise strategy is the primary responsibility of the strategy and investment funding collaboration. Gartner Terms of Use They are accountable for the overall business outcomes and addressing the challenge of defining, communicating, and aligning strategy with execution. Lean thinking is the foundation of Value Stream Management. The portfolio sync is generally held monthly and may be replaced with the strategic portfolio review on a given month. This means everything from raw materials to delivery of the final product. 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. The following sections describe their duties. All reports can be filtered to see only the data you want and then easily shared in various formats with your stakeholders so they stay updated. Please refine your filters to display data. The LACE and CoPs provide a forum for sharing effective Agile ART execution, flow practices, and other knowledge. Measuring the level of organizational competency for a SAFe portfolio is accomplished with the following assessments: Each of these assessments follows a standard process pattern of running the self-assessment, analyzing the results, taking action, and celebrating the successes. Like any portfolio, an LPM portfolio of investments is creatively determined and actively managed across the investment life cycle. Renovate - Even within the same organization, no two leadership teams will want to take exactly the same approach to agile portfolio operations. In the . Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. (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 . Some changes will require large initiatives to achieve the future state. Instead, alignment provides a powerful way to turn the portfolio vision into an executable strategy. For most organizations, the next best focus area for the transformation is to enhance and improve the effectiveness of the SAFe portfolios. The third, and equally critical type of collaboration that must take place in Lean Portfolio Management is Lean governancehow decisions are made across the portfolio (s). The cookie is used to store the user consent for the cookies in the category "Other. Sign up for more agile articles and tutorials. companies via internet, mobile/telephone and email, for the purposes of sales, marketing and research. The road to a better future state should be paved with architectural principles and practices that enable the ongoing evolution of the portfolios solution set. Value is the end goal, and now you have to map the value stream which includes all the steps and processes that define success for a portfolio. We have multiple project views such as Gantt charts, kanban boards, task lists, calendars and more so every department can use the tools they want. But SAFe is a complex and multifaceted scaling framework, and successful implementation requires commitment from program and portfolio management leaders. 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. This website uses cookies to improve your experience while you navigate through the website. Value Stream coordination defines how to manage dependencies and exploit the opportunities that exist only in the interconnections between value streams. Find the money - LPM shifts the strategy and investment model from funding projects to funding team-of-teams. Every enterprise has portfolios of products and solutions, whether the practices of Lean portfolio management have been adopted or not. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Gartner Terms of Use Try our roadmap template to get started. They explore scenarios where the portfolio could evolve to a better differentiated future state aligned with the strategic themes. Effective resource management is essential and should be part of the lean portfolio management tools you use to optimize your resource utilization. This can be difficult when dealing with cross-functional teams, but itll boost productivity if youre successful. You also have the option to opt-out of these cookies. Organizations must respond simultaneously to new business challenges and implement larger-scale architectural initiatives requiring intentionality and planning. DevOps and Release on Demand 4. Business Solutions and Lean Systems Engineering 5. Enterprise Architects help improve results by offering architectural governance and fostering the right balance between intentional and emergent design. 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. 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. March 6, 2023; dutchess county attorney's office . There are many ways to do this and one of which is lean portfolio management. 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. That is why, when you ask members of an executive team to describe and explain the corporate strategy, you frequently get wildly different answers. This event focuses on achieving and advancing the portfolio vision. Each has the ability to allocate funding, translate enterprise strategy into a local context, and govern execution and spending. * Note that many of the concepts and principles described herein are proprietary to Scaled Agile Framework (SAFe). The remainder of this article provides guidance on how enhancing the portfolio can help leaders seize these opportunities and unlock the full potential of the new ways of working. Portfolio Flow, 3. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Each core competency is supported by a self-assessment, enabling the enterprise to assess its proficiency. 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. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. When organizations define goals in terms of targeted business outcomes, they are more likely to move the needle on their key performance indicators (KPIs). Instead, the business takes a holistic learning, problem-solving, and solution-development approach. This new funding model allows the enterprise to eliminate or reduce the need for traditional project-based funding and cost accounting, reducing friction, delays, and overhead. But where should a portfolios leaders begin? The value stream is activities that enact your strategies and objectives to deliver value to customers and your business.
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