when should a lean portfolio be established?

X When the lack of communication between strategy and execution is hurting value 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. evaluate the health of existing portfolios, identify the areas of greatest opportunity for improvement, then. 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. 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. Lean Portfolio Management: Frequently Asked Questions. Lean Portfolio Management brings time-tested lean principles to the teams and leaders that are best positioned to drive organizational change. Every enterprise uses data to improve its products, optimize operations, and better understand its customers and markets. 5400 Airport Blvd., Suite 300 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. 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 A well-trained APMO can make knowledge-sharing more collaborative and fruitful. To realize the full value of an agile or digital transformation, business and technology teams must get aligned and stay aligned. Like traditional portfolio management, LPM requires a set of events to establish a cadence for reviewing and prioritizing the proposed work. 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. Perfection is a goal thats impossible to meet, but the pursuit of it reduces waste and offers greater value to customers. While SAFe has always focused on flow, the importance of flow at the portfolio level and the corresponding practices may have been less obvious. It does not store any personal data. LPM has the highest decision-making and financial accountability for the solutions and development value streams in a SAFe portfolio. 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. Effective collaboration across the portfolio requires the continuous communication of the portfolio vision, goals, ideas, and expectations openly and transparently. 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. Build an operating structure that embodies the key pieces of LPM, with a customized feel. The Scaled Agile Framework (SAFe) is a set of organization and workflow patterns for implementing agile practices at enterprise scale. Sometimes overlooked, contractors and Suppliers should be part of the cost equation. Lead the transformation Gartner Terms of Use 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). Ideally, adjustments to value streams can be implemented by simply adjusting team backlogs to support the reconfigured value streams. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. I have read, understood and accepted Gartner Embrace a Lean-Agile mindset 3. When should a Lean Portfolio be established? To close this gap, leaders need the ability to: As businesses seek alignment and to stay aligned, they often find traditional methods of portfolio management are ineffective. John May is an enterprise solutions architect, product advisor, and thought leader for Atlassian. Learn the new rules to transformational agility. The information on this page is 2010-2023 Scaled Agile, Inc. and is protected by US and International copyright laws. Gartner Terms of Use 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. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. This event has a more operational focus than the strategic portfolio review. Improvements in quality, productivity, time-to-market, and employee engagement are meeting or exceeding expectations. The portfolio strategy should support the enterprises broader business objectives. The teams of Portfolio Management collect a budget towards the execution of that particular strategy by learning about the strategy of the company. You can also customize reports and get a portfolio status generated with only a few keystrokes. 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. While long-term predictability is a worthy goal, use flexible rolling-wave roadmaps to replace fixed plans. Early in the Implementation Roadmap, work was done to identify value streams and organize ARTs around the flow of value. It consists of the following three measurement domains: The following sections describe these three domains. LPM plays a leadership role in operational excellence, helping the organization achieve its business goals. If needed, entire teams can be allocated to different ARTs. 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. Ensuring the entire portfolio is aligned and funded to meet business targets. Every enterprise has portfolios of products and solutions, whether the practices of Lean portfolio management have been adopted or not. LPM was inspired by the lean methodology, which started small but quickly spread to the masses. Each responsibility is described in the sections that follow. Be sure to monitor your planned costs against your actual costs to stay on track and reallocate as needed. The VMO has a primary responsibility in improving portfolio flow. How can they be on this dedicated value stream? Surface positive feedback from retrospectives and make sure to celebratetheimproved flow of value through the organization. Lean portfolio management is used throughout the life cycle of your portfolio. Business Owners should frequently communicate the vision and the strategic themes, for example, during PI planning, all-hands company meetings, and throughout the PI. 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. Lean portfolio management depends on the ability to see all your projects in one place. This article recaps the key points, edited for clarity and length. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Sign up for more agile articles and tutorials. All views update in real time so theres one source of truth. ProjectManager is award-winning software that helps implement lean portfolio management. When organizations set objective-based goals, captured as desired business outcomes, the incremental outputs can be evaluated against the desired business outcomes. 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. Boulder, CO 80301 USA, Privacy Policy They create the company culture and help lean thrive within that climate. An enterprise can only accomplish its ultimate business objectives by allocating the right investments to building the right things.. We just dont have a good business discipline for converging on issues this abstract. Still, they need additional structure to coordinate agile teams and optimize their use. For more information, see the advanced topic article and whitepaper:Achieving Regulatory and Industry Standards Compliance with SAFe. We have lean portfolio management tools such as a live portfolio dashboard that captures six metrics across the portfolio to get a high-level view of performance and progress. Emergent design alone is not sufficient at scale. The world is changing fast, and customer expectations are changing just as quickly. Get started with ProjectManager today for free. Lean budgets provide funding for value streams aligned with the business strategy and current strategic themes. This forecast includes the MVP, proving or disproving the epics hypothesis and implementation if LPM makes a persevere decision. Scaled Agile Framework and SAFe are registered trademarks of Scaled Agile, Inc. One example might describe how continuous communication and visibility of strategic initiatives can create better alignment between product development priorities and the businesss goals. 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 These articles define flow with a set of eight flow accelerators that foster operational excellence. 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. Gaining portfolio alignment requires people to work toward a shared goal and purpose beyond any individual, team, ART, or value stream. That subjects the enterprise to the risk of late discovery, subsequent rework, and even compromising regulatory or legal exposure. Download this Gartner Technology Adoption Roadmap to get insights on adoption timelines and value for emerging technologies and benchmark your technology adoption plan. Our portfolio roadmap view shows every project in your portfolio in a Gantt chart timeline. when should a lean portfolio be established? 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). 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 best way to predict the portfolios future state is to create it through a purposeful and flexible portfolio roadmap (Figure 4). Team Flow. (See Lean Budgets for more information). The more alignment you have, the more autonomy you can grantStephen Bungay, author and strategy consultant. Cookie Policy ProjectManager is not just a lean portfolio management tool, its also the leading project management hub online. 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. PPM leaders should identify the right talent for each focus area, having the respective expertise in: They can ensure that the agile program management office (APMO) has an in-depth understanding of agile philosophies, core SAFe terms, LPM events, and traditional PMO services such as data collection, analysis, reporting, etc. 2023 Scaled Agile, Inc. All rights reserved. Feedback collected via internal teams, external focus groups, customers, or end users helps measure progress towards the organizations target outcomes. DiscoverGartner BuySmart:Reduce risk and optimize spend on your next tech purchase. Clients receive 24/7 access to proven management and technology research, expert advice, benchmarks, diagnostics and more. X When the lack of communication between strategy and execution is hurting value delivery One option is redesigning the traditional PMO to become a Value Management Office (VMO). Find the money - LPM shifts the strategy and investment model from funding projects to funding team-of-teams. It includes six measures specific to flow: distribution, velocity, time, load, efficiency, and predictability. Realize Portfolio Vision Through Epics Many vision changes will require large initiatives (Epics) to achieve the future state. 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. First, you find and remove the waste in your value stream. When should a Lean Portfolio be established? Team and Technical Agility 3. Privacy Policy. Everyone working for you should be involved in this type of lean portfolio management. Its designed to holistically improve every department at all levels of strategic value. 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? Only if mandated from the top because it is better to operate in a completelydecentralized environmentb. Here are the steps to get started. 4.3 (7 reviews) Term. The portfolio needs to understand its role in achieving the enterprise strategy. This can be difficult when dealing with cross-functional teams, but itll boost productivity if youre successful. Renovate - Even within the same organization, no two leadership teams will want to take exactly the same approach to agile portfolio operations. This cookie is set by GDPR Cookie Consent plugin. The following sections describe their duties. 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. Market rhythms. Portfolio managers can find inefficiencies and remove them to increase value and decrease cost. Leverage the cadences to achieve shorter feedback loops. 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. Flow time, load, and distribution are particularly relevant to the portfolio and are briefly described below. They are accountable for the overall business outcomes and addressing the challenge of defining, communicating, and aligning strategy with execution. FAQs on how to use SAFe content and trademarks, Create a Lean-Agile Center of Excellence (LACE), Watch and download SAFe videos and presentations. When there are at least 5 Agile Release Trains that require coordination b. X When the lack of communication between strategy and execution is hurting value delivery b . The enterprise can objectively evaluate and originate portfolio-level initiatives only when this balance is understood. LPM provides an alignment and governance model for a specific SAFe Portfolio, which contains a set ofDevelopment Value Streams (DVS) for a business domain in an Enterprise. These should align with the vision of the portfolio. 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. VMO activities often include the following: While flow-based guidance is embedded throughput SAFe, a five-article series directly addresses impediments to flow: 1. Scaled Agile provides extensive training and guidance for launching LPM, built from success patterns emerging from the field. 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. As a last resort, make changes to the composition of individual teams only if absolutely necessary to preserve the cohesiveness of high-performing teams. Coordinating and supporting decentralized program execution. This way, the steps youve taken to implement lean portfolio management will be always reviewed and refined to improve the value and remove waste. 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. A connected enterprise with full alignment is key to competing in the modern economy. This drives the need to re-instrumentexisting work management systems to add new disciplines and additional clarity. Lean-Agile Leaders should know that every long-term commitment decreases the organizations agility. Overseeing spending, audit and compliance, and forecasting expenses. You have to note how they relate to one another, which needs what when. 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 Cookie Policy The portfolio and solution roadmaps are bi-directional; each roadmap influences the other. The lean principles provide a shared mindset for everyone involved in solution delivery to improve operational efficiency and eliminate delays. Lean BudgetsandGuardrails offer funding and governance practices that improve development throughput while maintaining financial and fitness-for-use governance. Well also explain when to use lean portfolio management and how project management software can help you manage your portfolios better. There are other reports, too, such as for timesheets, workload, variance and more. These obligations impose significant limits on solution development and operations. 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. Once you get to this step, youll be back at the beginning as lean never stops. In this model, LPM maintains appropriate levels of oversight through the allocation of . The senior leadership team will apply lean principles to manage the portfolio. SAFe provides strategies for Lean budgeting that eliminates the overhead of traditional project-based funding and cost accounting. Gartner Terms of Use This is article twelvein the SAFe Implementation Roadmap series. Project roadmaps are valuable tools in this process as they help portfolio managers by giving them an overview in which they can strategically reallocate resources to maintain value while eliminating waste. Take investors in PepsiCo ( PEP 0.22%), for example. Effective data governance ensures that data is consistent and trustworthy and doesnt get misused.[1]. How many different, independently funded strategies will be driving the portfolio? The new ways of working are becoming second nature for those operating within the development value streams. In the . Please visit. Move back in - Recalibrate the active, funded work into leaner constructs that better support the flow of value, and consider using this opportunity to revisit the rationale for the work (pivot or persevere?). He has helped shape the Lean Portfolio Management offering in the Jira Align product, and brings over 20 years of experience in the software industry and scaled agile space. Good luck. There shouldnt be any interruptions, delays or bottlenecks. Connect thousands of apps for all your Atlassian products, Run a world-class agile software organization from discovery to delivery and operations, Enable dev, IT ops, and business teams to deliver great service at high velocity, Empower autonomous teams without losing organizational alignment, Great for startups, from incubator to IPO, Get the right tools for your growing business, Docs and resources to build Atlassian apps, Compliance, privacy, platform roadmap, and more, Stories on culture, tech, teams, and tips, Training and certifications for all skill levels, A forum for connecting, sharing, and learning, How to build a better enterprise by being more lean. The portfolio roadmap integrates lower-level roadmaps into a more comprehensive view. Lean project management is part of an agile methodology that aims to increase customer value by removing project waste. The quote below reminds us that the purpose of alignment is not about centralized control. Enterprise Architects help translate the business vision and strategy into effective technology plans. What are they expecting from it? The first three states emphasize prioritization. This means everything from raw materials to delivery of the final product. When is an Epic considered done? 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. Lean Portfolio Management (LPM) describes how senior leadership applies lean principles to connect strategy to execution. This emphasis on flow has been exponentially enhanced in the most current version of the Framework. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.

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