LEAN PORTFOLIO MANAGEMENT
LPM QUESTIONS AND ANSWERS
2026 ACTUAL TEST PAPER WITH
VERIFIED SOLUTIONS GRADED A+
◉ Lean Portfolio Management (LPM). Answer: applies strategy and
execution by applying Lean and systems thinking approaches to strategy
and investment funding, Agile portfolio operations and governance
◉ Purpose of LPM. Answer: governs each SAFe Portfolio
◉ 2 primary aspects of Lean Agile Mindset. Answer: thinking lean w/
the safe house of lean; embracing agility w/ the agile manifesto
◉ Agile Manifesto. Answer: 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. Answer: #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).
Answer: 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
◉ Take an economic view (1). Answer: 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). Answer: 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). Answer: Centralize strategic
decision - those that are infrequent, long lasting and have economies of
scale. Decentralize all others.
◉ Project Cost Accounting problems. Answer: 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. Answer: realized by ARTs; represents a series of
steps that an organization uses to implement solutions that provide
continuous flow of value to a customer.
◉ LPM events. Answer: Portfolio Sync, Strategic Portfolio Review,
Participatory Budgeting and Sequencing Epics w/ WSJF
◉ Types of value streams. Answer: Operational and Development
, ◉ Operational Value Stream. Answer: contains the steps and the people
who deliver end user value using the solution created by the
development value stream
◉ Development value stream. Answer: contains the steps and the people
who delivers solutions that are used by the Operational VS
◉ Identifying a Value Streams. Answer: 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. Answer: 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. Answer: - 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. Answer: - People organized in
functional silos and temp projects
LPM QUESTIONS AND ANSWERS
2026 ACTUAL TEST PAPER WITH
VERIFIED SOLUTIONS GRADED A+
◉ Lean Portfolio Management (LPM). Answer: applies strategy and
execution by applying Lean and systems thinking approaches to strategy
and investment funding, Agile portfolio operations and governance
◉ Purpose of LPM. Answer: governs each SAFe Portfolio
◉ 2 primary aspects of Lean Agile Mindset. Answer: thinking lean w/
the safe house of lean; embracing agility w/ the agile manifesto
◉ Agile Manifesto. Answer: 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. Answer: #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).
Answer: 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
◉ Take an economic view (1). Answer: 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). Answer: 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). Answer: Centralize strategic
decision - those that are infrequent, long lasting and have economies of
scale. Decentralize all others.
◉ Project Cost Accounting problems. Answer: 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. Answer: realized by ARTs; represents a series of
steps that an organization uses to implement solutions that provide
continuous flow of value to a customer.
◉ LPM events. Answer: Portfolio Sync, Strategic Portfolio Review,
Participatory Budgeting and Sequencing Epics w/ WSJF
◉ Types of value streams. Answer: Operational and Development
, ◉ Operational Value Stream. Answer: contains the steps and the people
who deliver end user value using the solution created by the
development value stream
◉ Development value stream. Answer: contains the steps and the people
who delivers solutions that are used by the Operational VS
◉ Identifying a Value Streams. Answer: 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. Answer: 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. Answer: - 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. Answer: - People organized in
functional silos and temp projects
