Exam (elaborations)
PURPOSE OF SAFE LEAN PORTFOLIO MANAGEMENT
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PURPOSE OF SAFE LEAN PORTFOLIO MANAGEMENT
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PURPOSE OF SAFE LEAN PORTFOLIO MANAGEMENTSAFe LPM - Answers- one of the 7 core competencies of lean enterprise
Lean Portfolio Management (LPM) - Answers- applies strategy and execution by
applying Lean and systems thinking approaches to strategy and investment funding,
Agile portfolio operations and governance
Purpose of LPM - Answers- governs each SAFe Portfolio
2 primary aspects of Lean Agile Mindset - Answers- thinking lean w/ the safe house of
lean; embracing agility w/ the agile manifesto
Agile Manifesto - Answers- Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
SAFe Lean-Agile Principles - Answers- #1 Take an economic view
#2 Apply Systems Thinking
#3 Assume variability; preserve options
#4 Build incrementally fast; integrated learning cycles
#5 Based milestones on objective evaluation of working systems
#6 Visualize and Limit WIP; reduce batch sizes; manage queue lengths
#7 Apply cadence; synchronize with cross domain planning
#8 Unlock intrinsic motivation of knowledge workers
#9 Decentralize decision making
#10 Organize around value
Base milestones on objective evaluation of working systems (5) - Answers- Build the
system in increments, each of which is an integration point that demonstrates evidence
of the solution feasibility; milestones based on objective evaluation of working systems
LPM events - Answers- Portfolio Sync, Strategic Portfolio Review, Participatory
Budgeting and Sequencing Epics w/ WSJF
Types of value streams - Answers- Operational and Development
Operational Value Stream - Answers- contains the steps and the people who deliver
end user value using the solution created by the development value stream
Development value stream - Answers- contains the steps and the people who delivers
solutions that are used by the Operational VS
,Identifying a Value Streams - Answers- understand how the organization VS and ARTs
impact value delivery, periodically run the SAFe VS and ART ID workshop to optimize
flow of value
SAFe Portfolio - Answers- a collection of development VS; each VS builds, supports
and maintains solutions; Solutions are delivered to the customer whether internal or
external. single or multiple - based on size of organization
Traditional Project Portfolio Mgmt challenges - Answers- - approaches inhibit flow of
value
- project cost accounting
- annual planning and rigid budget cycles
- phase gate approval process that fail to mitigate risks
- perpetual overload of demand versus capacity
- overly detailed business cases w/ speculative ROI
Traditional Approach to LPM - Answers- - People organized in functional silos and temp
projects
- fund projects and project-cost accounting
- big up front, top down, annual planning and rigid budget cycles
- centralized, unlimited work intake; project overload
- overly detailed bus. cases based on speculative ROI
- Projects governed by phase gates; waterfall milestones, progress measured by task
completion
Lean-Agile Approach to LPM - Answers- - people organized around value
streams/ARTs; continuous flow of value
- fund value streams, lean budgets and guardrails
- value stream budgets adjusted dynamically; participatory budgeting
- strategic demand managed by portfolio kanban; decentralized intake by value streams
and ARTs
- Lean business cases with MVP; business outcome hypothesis, agile forecasting and
estimating
- products and services governed by self-managing ARTs; objective measures and
milestones based on working solutions
Strategy and Investment funding - Answers- ensures that the entire portfolio is aligned
and funded to create and maintain the solutions needed to meet business targets:
- connects the portfolio to Enterprise strategy
- maintains a portfolio vision
- realize portfolio vision through Epics
- establish lean budgets and guardrails
- establish portfolio flow
Strategic themes connect - Answers- - differentiating business objectives that connect
each SAFe portfolio to the enterprise business strategy.
, - drive the future state of the portfolio
- provide context for the portfolio vision and lean budgeting
Elements of Enterprise Strategy Formulation - Answers- - vision, mission, core values
- enterprise business drivers
- distinctive competence
- financial goals
- competitive environment
- Portfolio context (KPIs, Qualitative data, LB Guardails)
- Outputs: ( Portfolio budget & strategic themes)
Take an economic view (1) - Answers- Base your decisions on economics to achieve
better business outcomes
- deliver early and often
- operate within Lean Budgets and Guardrails
- understand economic tradeoffs for solutions
- leverage suppliers
- sequence jobs (Epics) for maximum benefit
- empower local decision-making
Visualize and limit WIP (6) - Answers- achieve a continuous flow of value by:
- visualizing and limiting the amount of work in progress (WIP) to match the demand of
actual capacity
- reduce batch sizes of work. smaller batches go through the system faster and with
lower variability
- manage queue lengths to decrease delays, reduce waste and improve predictability of
outcomes
Decentralize decision making (9) - Answers- Centralize strategic decision - those that
are infrequent, long lasting and have economies of scale. Decentralize all others.
Project Cost Accounting problems - Answers- creates overhead, friction and lowers
velocity
- requires collaboration of multiple cost centers, assignment of people, budget, and
schedule to build a project budget resulting in slow complex budgeting process, moves
people to the work, low program output and utilization based planning and execution.
Value Streams - Answers- realized by ARTs; represents a series of steps that an
organization uses to implement solutions that provide continuous flow of value to a
customer.
Enterprise strategy development - Answers- bi-directional;
- ST and LB are outputs of Enterprise strategy formulation and
- the portfolio context is an input to the evolving enterprise strategy
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