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. In order to do this, portfolio managers need real-time data to make more effective decisions about value realization and costs. This makes enterprise architecture a critical component of strategy and investment funding. Join your peers for the unveiling of the latest insights at Gartner conferences. Like any portfolio, an LPM portfolio of investments is creatively determined and actively managed across the investment life cycle. Analytical cookies are used to understand how visitors interact with the website. The current and future state difference represents the gap that LPM translates into the vision. 2023 Scaled Agile, Inc. All rights reserved. You also have the option to opt-out of these cookies. Read more: 5 Organizational Change Pitfalls PPM Leaders Should Avoid. 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. Exemplify the core values 2. This is the subject of the next critical move: Accelerate. 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. All views update in real time so theres one source of truth. Lean Portfolio Management (LPM) - 77%. Value Stream coordination defines how to manage dependencies and exploit the opportunities that exist only in the interconnections between value streams. But opting out of some of these cookies may have an effect on your browsing experience. Topics typically include reviewing epic implementation, the status of KPIs, addressing dependencies, and removing impediments. Business Owners should frequently communicate the vision and the strategic themes, for example, during PI planning, all-hands company meetings, and throughout the PI. Having many projects to manage in a portfolio can be daunting. These obligations impose significant limits on solution development and operations. 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). Developing the vision and strategy can be difficult and time-consuming. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. Reorganize into value streams. 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. In the last article, Launch More ARTs and Value Streams, we described how to drive and facilitate the broader implementation of SAFe. By clicking the "" button, you are agreeing to the Gaining portfolio alignment requires people to work toward a shared goal and purpose beyond any individual, team, ART, or value stream. 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. Sign up for more agile articles and tutorials. 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. For most organizations, the next best focus area for the transformation is to enhance and improve the effectiveness of the SAFe portfolios. ProjectManager is not just a lean portfolio management tool, its also the leading project management hub online. But few organizations achieve the desired results. X When the lack of communication between strategy and execution is hurting value delivery Moreover, linking the portfolio to the organizations strategy is bi-directional. SAFe provides strategies for Lean budgeting that eliminates the overhead of traditional project-based funding and cost accounting. This cookie is set by GDPR Cookie Consent plugin. In order to eliminate waste and drive value to customers, you must maximize your workforce without over-allocating and burning them out. The first step is to find and form the group that will connect strategy to execution for a specific part of the organization. Market rhythms. 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 management began when engineers at Toyota created a system to reduce waste in their manufacturing line. Lean Port 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 Use this free Roadmap Template for Excel to manage your projects better. Lean thinking is the foundation of Value Stream Management. Lean budgets provide funding for value streams aligned with the business strategy and current strategic themes. When organizations set objective-based goals, captured as desired business outcomes, the incremental outputs can be evaluated against the desired business outcomes. 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 cookies is used to store the user consent for the cookies in the category "Necessary". A well-trained APMO can make knowledge-sharing more collaborative and fruitful. Get started with ProjectManager today for free. 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. Organizations, at times, include the mix of agile and waterfall processes in the Portfolio Kanban to make their heterogeneous portfolio visible across the board. Our people have day-to-day jobs and also are subject matter experts on projects. Every enterprise uses data to improve its products, optimize operations, and better understand its customers and markets. 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. Scaled Agile Framework and SAFe are registered trademarks of Scaled Agile, Inc. These successes formed the foundation of Lean Portfolio Management. Lean portfolio management does this by using the five principles of lean. Each DVS builds, supports, and maintains Solutions delivered to the Customer, whether internal or external to the enterprise. Get started with ProjectManager today for free. 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. This cookie is set by GDPR Cookie Consent plugin. Here is a simple but effective series of steps to get started. This is an AR pistol stabilizing brace, and it is designed for any platform which accepts mil-spec carbine receiver . You have to note how they relate to one another, which needs what when. Try our roadmap template to get started. It consists of the following three measurement domains: The following sections describe these three domains. Enterprise Architects help improve results by offering architectural governance and fostering the right balance between intentional and emergent design. In the . Agile portfolio operations coordinate and support decentralized ART execution and enable operational excellence. However, every enterprise should be cautious about such forecasts. FAQs on how to use SAFe content and trademarks, Create a Lean-Agile Center of Excellence (LACE), Watch and download SAFe videos and presentations. 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. 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. Teams are oriented around their function (marketing, sales, operations), instead of by objective. LPM was inspired by the lean methodology, which started small but quickly spread to the masses. Operational excellence focuses on continually improving efficiency, practices, and results to optimize business performance. This new approach to planning and budgeting includes understanding the historical and forecasted future costs associated with each Solution and forecasted epics costs. See the Measuring Competency section of the Measure and Grow article to download these assessments. This event focuses on achieving and advancing the portfolio vision. Like traditional portfolio management, LPM requires a set of events to establish a cadence for reviewing and prioritizing the proposed work. Read here to learn about high-functioning agile portfolios. There shouldnt be any interruptions, delays or bottlenecks. Unleashing the power of a leadership team is no less important than empowering a development team. Portfolio management teams learn about enterprise strategy and how to execute that strategy by allocating the budget. The roadmap can be customized and filtered to show just what you need to see to make sure youre meeting objectives. devote the people and resources required to implement the most valuable enhancements. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. 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. The quote below reminds us that the purpose of alignment is not about centralized control. 2023 Scaled Agile, Inc. All rights reserved. Value Stream Management (VSM) is a leadership and technical discipline that enables the maximum flow of business value through end-to-end solution delivery. ProjectManager is award-winning software that helps implement lean portfolio management. Theyre a valuable resource that should be tapped by teams. 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. This optimization extends to business practices such as Lean Portfolio Management (LPM), which ensures that the enterprise invests in experimentation and learning to drive the system forward. Continuous compliance Pain point #2: Work gets done, but the key needles dont move. Solution Train Flow, 4. 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. The Portfolio Flow article guides LPM on accelerating flow and providing continuous epics to achieve the portfolios vision and enterprise business objectives. The cookie is used to store the user consent for the cookies in the category "Performance". This website uses cookies to improve your experience while you navigate through the website. Everyone working for you should be involved in this type of lean portfolio management. 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; . Measurable benefits in time-to-market, quality, productivity, and employee engagement are being realized. In the past 12 months, PepsiCo's stock price is up around 5.8%, yet investors have a total return of 8.8%, including dividend payouts. 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. Each core competency is supported by a self-assessment, enabling the enterprise to assess its proficiency. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". and Lean-Agile Leadership 2. The cookie is used to store the user consent for the cookies in the category "Analytics". Here are the steps to get started. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. In the context of strategy and investment funding, portfolio flow describes the process of managing portfolio epics through their lifecycle, including limiting the number of significant and typically cross-cutting initiatives in progress to match the portfolios capacity. 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). SAFe LPM Course This is a two-day, interactive course that teaches the practical tools and techniques necessary to implement Strategy and Investment Funding, Agile Portfolio Operations, and Lean Governance. And yet, organizations aren't typically structured in a way that allows them to do so. 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. He enjoys helping leadership teams create a compelling path from their current state to a new, leaner way of working. It includes six measures specific to flow: distribution, velocity, time, load, efficiency, and predictability. 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. 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 will be stored in your browser only with your consent. Instead, many adopt Lean Portfolio Management practices to drive alignment across the entire organization. These cookies ensure basic functionalities and security features of the website, anonymously. In order for lean portfolio management to be effective, it must be implemented throughout an organization. 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. Therefore, Enterprise Architects may recommend technology standards and stacks for value stream level interoperability, APIs, hosting, and design methods for developing and testing cyber-physical systems. One of the key tenets of any Lean-Agile practice is the idea of maximizing value for the customer. Gartner Terms of Use 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). Naturally, managers and supervisors are also involved. This helps to maximize your efficiency and realize your strategic objectives. Principle #6- Make value flow without interruptions, 2. The cookie is used to store the user consent for the cookies in the category "Performance". 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. (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 portfolio management is a process by which strategy is aligned with execution using a lean approach and agile portfolio operations and governance. [1] https://www.techtarget.com/searchdatamanagement/definition/data-governance, 5400 Airport Blvd., Suite 300 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. DevOps and Release on Demand 4. Business Solutions and Lean Systems Engineering 5. This allows you to prioritize work across your value streams and make adjustments to work according to demand. All, members of the train are new to Agile. SAFe helps facilitate these shifts through the practices described in LPM. and Unfortunately, this choice can inhibit the adoption of successful execution patterns, standard measures, and reporting that can be developed and applied across the portfolio. Using a roadmap helps see the portfolio across projects and how they relate to one another. Gartner Terms of Use However, if: then, these interruptions to portfolio flow will negatively impact the teams and trains responsible for building the portfolios solutions. Early in the Implementation Roadmap, work was done to identify value streams and organize ARTs around the flow of value. 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 road to a better future state should be paved with architectural principles and practices that enable the ongoing evolution of the portfolios solution set. These articles define flow with a set of eight flow accelerators that foster operational excellence. VMO activities often include the following: While flow-based guidance is embedded throughput SAFe, a five-article series directly addresses impediments to flow: 1. Portfolio managers can find inefficiencies and remove them to increase value and decrease cost. 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. 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. The pace of change has prompted enterprises to heavily invest in digital and agile transformations, where the benefits of agile teams are scaled and multiplied across the enterprise. That subjects the enterprise to the risk of late discovery, subsequent rework, and even compromising regulatory or legal exposure. The portfolio needs to understand its role in achieving the enterprise strategy. Business epics directly deliver business value, while Enabler epics advance the architectural runway to support upcoming business or technical needs. Dive deeper into the fundamentals of LPM and see how Atlassian's Jira Align supports it. Necessary cookies are absolutely essential for the website to function properly. Lean Portfolio Management 1.2) What are 4 things a Lean-Agile Leader must do? 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. When organizations emphasize a planning and execution model that yields continuous value flow, they strive to put value in customers' hands, instead of marking tasks as complete. The expanding success story of these ARTs and development value streams creates a buzz in the organization about new and better ways of working. There are many ways to do this and one of which is lean portfolio management. This drives the need to re-instrumentexisting work management systems to add new disciplines and additional clarity. Thats why connecting the portfolio to the enterprise strategy is the primary responsibility of the strategy and investment funding collaboration. Organizations must respond simultaneously to new business challenges and implement larger-scale architectural initiatives requiring intentionality and planning. Pain point #3: Budgets are difficult to change based on new information. These principles are defining value, mapping the value stream, creating flow, establishing pull and pursuing perfection. CapEx vs OpEx spending. To continue with this analogy, hereare some tipsfora lean home renovation: Lean Portfolio Management brings time-tested lean principles to the teams and leaders that are best positioned to drive organizational change. 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. 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. The best way to predict the portfolios future state is to create it through a purposeful and flexible portfolio roadmap (Figure 4). The following sections describe their duties. when should a lean portfolio be established? The strategy and investment funding responsibilities (Figure 3) require collaborations among enterprise executives, Business Owners, and Enterprise Architects, including portfolio stakeholders and other technologists. The resulting data is used to finalize adjustments to the value stream budgets. This requires accurate estimates of resources. 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. The people who fulfill the LPM function have various roles and titles and often reside in different parts of the organizations hierarchy. While long-term predictability is a worthy goal, use flexible rolling-wave roadmaps to replace fixed plans. John May is an enterprise solutions architect, product advisor, and thought leader for Atlassian. , whereby I agree (1) to provide Gartner with my personal information, and understand that information will be transferred outside of mainland China and processed by Gartner group companies and other legitimate processing parties and (2) to be contacted by Gartner group Plus, they lead by example. For more information, see the advanced topic article and whitepaper:Achieving Regulatory and Industry Standards Compliance with SAFe. 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) When should a Lean Portfolio be established? X When the lack of communication between strategy and execution is hurting value Necessary cookies are absolutely essential for the website to function properly. 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. Its designed to holistically improve every department at all levels of strategic value. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. 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. Ideally, adjustments to value streams can be implemented by simply adjusting team backlogs to support the reconfigured value streams. Begin by coming up with themes that reflect your strategic priorities by defining your strategies, turning them into investments and assigning goals to them. LPM is one of the seven core competencies essential to achieving Business Agility. The effective operation of the LPM function relies on three significant events: Typically, these events are held on a cadence, as illustrated in Figure 7. It does not store any personal data. ThePortfolio Vision describes the future state of its development value streams and solutions. When should a Lean Portfolio be established a. Please refine your filters to display data. 8 a.m. 5 p.m. GMT 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.
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