LPM was inspired by the lean methodology, which started small but quickly spread to the masses. (See Lean Budgets for more information). The point is to identify what isnt creating value and eliminate that waste. All rights reserved. You have to note how they relate to one another, which needs what when. X When the lack of communication between strategy and execution is hurting value delivery 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. Fill out the form to connect with a representative and learn more. LPM has the highest decision-making and financial accountability for the solutions and development value streams in a SAFe portfolio. Portfolio management teams learn about enterprise strategy and how to execute that strategy by allocating the budget. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. The lean portfolio leadership team sets the north star goal for the mission, funds the team-of-teams based on the enterprises strategic needs, then monitors the emergent plans and results to make sure they align to the strategic intent. Use your existing resource capacity to its full extent and remain flexible so you can reallocate as you adapt plans. Necessary cookies are absolutely essential for the website to function properly. When establishing metrics, what might an organisation focus on from a portfolio perspective that closely aligns with SAFe principle. Topics typically include reviewing epic implementation, the status of KPIs, addressing dependencies, and removing impediments. That subjects the enterprise to the risk of late discovery, subsequent rework, and even compromising regulatory or legal exposure. 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?). However, portfolio strategy is much more than prioritization and selecting the best investments. 6. 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). Recent research by Gartner Senior Director Analyst Lorri Callahan and Distinguished VP Analyst Robert Handler guides an enterprise program management office (EPMO) or PMO operating in an organization that is adopting SAFe lean portfolio management (LPM) competency. That is why, when you ask members of an executive team to describe and explain the corporate strategy, you frequently get wildly different answers. Shift the operations focus to delivering incremental value at shorter cadences for larger initiatives. Since epics often have lots of uncertainty, its good practice to use the SAFe Lean Startup Cycle for their implementation. The Scaled Agile Framework (SAFe) is a set of organization and workflow patterns for implementing agile practices at enterprise scale. 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. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. 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. Redecorate - LPM brings in new decision-making techniques, like the emphasis on visualizing strategic alignment of the work and guardrail-based governance. (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 . Each core competency is supported by a self-assessment, enabling the enterprise to assess its proficiency. Business Owners should frequently communicate the vision and the strategic themes, for example, during PI planning, all-hands company meetings, and throughout the PI. See the Measuring Competency section of the Measure and Grow article to download these assessments. These successes formed the foundation of Lean Portfolio Management. 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. Feedback collected via internal teams, external focus groups, customers, or end users helps measure progress towards the organizations target 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. Lead the transformation This makes enterprise architecture a critical component of strategy and investment funding. To realize the full value of an agile or digital transformation, business and technology teams must get aligned and stay aligned. Lean Portfolio Management: Frequently Asked Questions. DiscoverGartner BuySmart:Reduce risk and optimize spend on your next tech purchase. Our flexible software can work in agile environments, more traditional methodologies, such as waterfall, or a hybrid for cross-functional teams. As a result, some enterprises have abandoned the PMO approach, distributing all the responsibilities to ARTs and Solution Trains. Its designed to holistically improve every department at all levels of strategic value. A well-trained APMO can make knowledge-sharing more collaborative and fruitful. Flow time, load, and distribution are particularly relevant to the portfolio and are briefly described below. Its used during the management of the portfolio to make sure all projects are meeting your strategic business outcomes while improving investment decisions. Examples include developing an e-commerce website, medical device, or satellite and developing and deploying a software application within an enterprise for internal customers. One of the key tenets of any Lean-Agile practice is the idea of maximizing value for the customer. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Pain point #2: Work gets done, but the key needles dont move. You also have the option to opt-out of these cookies. The information on this page is 2010-2023 Scaled Agile, Inc. and is protected by US and International copyright laws. 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. Theyre a valuable resource that should be tapped by teams. Embrace a Lean-Agile mindset 3. 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. Only if mandated from the top because it is better to operate in a completelydecentralized environmentb. It often feels like renovating a house while youre living in itwith similar levels of stress and satisfaction. So how do you sustain this over the long term? CapEx vs OpEx spending. We use cookies to analyze website performance and visitor data, deliver personalized content, and enhance your experience on the site. It does not store any personal data. But few organizations achieve the desired results. 5400 Airport Blvd., Suite 300 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. 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. 2023 Scaled Agile, Inc. All rights reserved. It saves money for both the manufacturer and the customer. The primary emphasis of LPM is to align agile development with business strategy, with a focus on driving the delivery of value to customers through the creation of products and solutions. But what does the portfolio consist of? When organizations evaluate those outputs in short feedback loops, they can quickly recalibrate short-term plans, based on what they see. 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? Theportfolio sync provides visibility into how well the portfolio is progressing toward meeting its objectives. 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. You need to strategize and plan your resource allocation to ensure that every project has what it needs when it needs it. When organizations define goals in terms of targeted business outcomes, they are more likely to move the needle on their key performance indicators (KPIs). Each DVS builds, supports, and maintains Solutions delivered to the Customer, whether internal or external to the enterprise. 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. This helps to maximize your efficiency and realize your strategic objectives. 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. The portfolio strategy should support the enterprises broader business objectives. Find the money - LPM shifts the strategy and investment model from funding projects to funding team-of-teams. Coordinating and supporting decentralized program execution. Energy flows where intention goes. These shifts expand the benefits of SAFe by extending the new ways of working to the highest levels of decision-making and financial accountability for the solutions and value streams in the portfolio. Lean portfolio management depends on the ability to see all your projects in one place. 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 1 / 55. 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. when should a lean portfolio be established? Lean Portfolio Management brings time-tested lean principles to the teams and leaders that are best positioned to drive organizational change. These are high-level people in the organization. The LACE is often responsible for leading operational excellence with the help of an RTE and Scrum Master/Team Coach CoP. Early in the Implementation Roadmap, work was done to identify value streams and organize ARTs around the flow of value. The Lean governance collaboration and responsibilities (Figure 6) require the active engagement of the VMO, LACE, Business Owners, and Enterprise Architects. When should a Lean Portfolio be established a. Adopting LPM helps organizations shift from traditional practices to a Lean-Agile approach, as shown in Figure 1. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Some changes will require large initiatives to achieve the future state. 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. When should a Lean Portfolio be established? Business leaders, portfolio managers, value stream owners and the Agile PMO have to work together to: Forecast and budget dynamically across the enterprise. Developing the vision and strategy can be difficult and time-consuming. Figure 8 compares the strategic portfolio review and portfolio sync events. 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. Our software is cloud-based, meaning you get real-time data to make better decisions. This is defined by the customers needs from the portfolio. Solution Train Flow, 4. And yet, at this stage in the journey to business agility, there may be a growing sense that there are additional opportunities to maximize the full potential of SAFe to accelerate value delivery. Clients receive 24/7 access to proven management and technology research, expert advice, benchmarks, diagnostics and more. In order to eliminate waste and drive value to customers, you must maximize your workforce without over-allocating and burning them out. 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! This cookie is set by GDPR Cookie Consent plugin. If adjusted less frequently, spending is fixed for too long, limiting agility. The people who fulfill the LPM function have various roles and titles and often reside in different parts of the organizations hierarchy. Portfolio Kanban for PPM leaders visualizes and manages the flow of Epics in an end-to-end fashion. Your California Consumer Rights. All, members of the train are new to Agile. 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). 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. Value Stream coordination defines how to manage dependencies and exploit the opportunities that exist only in the interconnections between value streams. 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. March 6, 2023; dutchess county attorney's office . Unleashing the power of a leadership team is no less important than empowering a development team. The first step is to find and form the group that will connect strategy to execution for a specific part of the organization. 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. Plus, they lead by example. Of course, you have to find those inefficiencies first. Things to think about are the timeline for manufacturing and delivering a product, its price and requirements or expectations to meet. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. When should a Lean Portfolio be established? Read more:Fuel Digital Business With Product Management. Lean Portfolio Management (LPM) describes how senior leadership applies lean principles to connect strategy to execution. Agile portfolio operations coordinate and support decentralized ART execution and enable operational excellence. It focuses on "Epics" building blocks that capture the longest story arc of a portfolio. 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. When organizations improve their definition of customer value, communication improves and clears the path for the best ideas. These initiatives typically require the collaboration of multiple value streams or the creation of new value streams or ARTs. Theyll carry the day-to-day impact of lean thinking as theyre responsible for deploying lean techniques and using lean portfolio management tools. When organizations set objective-based goals, captured as desired business outcomes, the incremental outputs can be evaluated against the desired business outcomes. Most strategy dialogues end up with executives talking at cross-purposes because nobody knows exactly what is meant by vision and strategy, and no two people ever quite agree on which topics belong where. This new approach to planning and budgeting includes understanding the historical and forecasted future costs associated with each Solution and forecasted epics costs. 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. Neither images nor text can be copied from this site without the express written permission of the copyright holder. Successfully establishing portfolio flow requires knowing the total capacity for new development work versus ongoing maintenance and support activities. 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. You can also customize reports and get a portfolio status generated with only a few keystrokes. Use this free Roadmap Template for Excel to manage your projects better. In this model, LPM maintains appropriate levels of oversight through the allocation of . Portfolio Flow, 3. Lean thinking is the foundation of Value Stream Management. 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. 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. Gaining portfolio alignment requires people to work toward a shared goal and purpose beyond any individual, team, ART, or value stream. These obligations impose significant limits on solution development and operations. LPM uses the portfolio Kanban system to visualize and restrict work-in-process (WIP), reduce batch sizes, and control the length of longer-term development queues. Sign up for more agile articles and tutorials. 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. Analytical cookies are used to understand how visitors interact with the website. The following sections describe these dimensions. when should a lean portfolio be established? Leverage the cadences to achieve shorter feedback loops. When there are a minimum of six Agile Release Trains that require coordination When required by management because it is better to operate in a completely decentralized environment When it is part of training the executives 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. The information on this page is 2010-2023 Scaled Agile, Inc. and is protected by US and International copyright laws. Here is a simple but effective series of steps to get started. Successfully defining and executing a strategy in a world of increasing uncertainty is challenging. Make sure you create clearly defined objectives and metrics to measure their performance. Find the owners - Portfolio leadership teams are high-performing, cross-functional teams of servant leaders. Use task, resource and risk management features to keep your project, portfolio or program on track. 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. 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 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. Enterprise Architects help translate the business vision and strategy into effective technology plans. It unleashes all portfolio members creative and productive energy toward achieving its goals and further unlocks peoples intrinsic motivation. 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. Fortunately, many enterprises have already traveled this path, and the change patterns are apparent, as shown in Figure 1. These cookies track visitors across websites and collect information to provide customized ads. You can re-allocate right from the chart view to balance workload and keep your team productive. Read more: 5 Organizational Change Pitfalls PPM Leaders Should Avoid. Dive deeper into the fundamentals of LPM and see how Atlassian's Jira Align supports it. Gartner Terms of Use Please visit. jsbacContactjsbacContact The quote below reminds us that the purpose of alignment is not about centralized control. Lean-Agile Leaders should know that every long-term commitment decreases the organizations agility. This compliance may address internal or external financial auditing constraints and industry legal or regulatory guidelines. Once this purpose is met, the portfolio is fixed afterward. Combining LPM with agile development practices offers a path to improving business agility. The senior leadership team will apply lean principles to manage the portfolio. 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. supports oversight of spending, audit, compliance, expenditure, measurement, and reporting, Fosters more Agile contracts and leaner Supplier and Customer partnerships, Assuring Big Data Security and Compliance, FAQs on how to use SAFe content and trademarks, Principle #6- Make value flow without interruptions, Achieving Regulatory and Industry Standards Compliance with SAFe, https://www.techtarget.com/searchdatamanagement/definition/data-governance, Watch and download SAFe videos and presentations. Read here to learn about high-functioning agile portfolios. Our resource management tools help you see team availability, including global holidays, but also oversee their workload across your portfolio. Having many projects to manage in a portfolio can be daunting. One option is redesigning the traditional PMO to become a Value Management Office (VMO). Organizations are increasingly looking to agile frameworks to manage costs while delivering value and agility effectively. Organizations, at times, include the mix of agile and waterfall processes in the Portfolio Kanban to make their heterogeneous portfolio visible across the board. Sorry, No data match for your criteria. 2023 Scaled Agile, Inc. All rights reserved. The Scaled Agile Framework (SAFe) encourages the "build-measure-learn" approach to accelerate agile development. 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. The objectives of Lean Portfolio Management are to: LPM differs from traditional project portfolio management in a number of ways, including: While traditional Project Portfolio Management (PPM) focuses on creating a set of tightly structured project plans and building short-lived teams to execute those plans, LPM focuses on: Portfolio management leadership teams connect an organizations strategy to its execution. 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. Relevant stakeholders (essential, not merely interested parties) can attend these events and leverage the portfolio metrics and other insights provided by the APMO. This forecast includes the MVP, proving or disproving the epics hypothesis and implementation if LPM makes a persevere decision. 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. In 2012, GE created FastWorks, a branded internal approach to translate lean startup principles and other disruptive strategies across its ecosystem. Even front-line employees, HR, customers, suppliers and procurement staff all need to be on board with lean portfolio management to maximize the reduction of waste and increase value to customers. Thats why connecting the portfolio to the enterprise strategy is the primary responsibility of the strategy and investment funding collaboration. devote the people and resources required to implement the most valuable enhancements. Lean governance is the function that supports oversight of spending, audit, compliance, expenditure, measurement, and reporting.