LEAN PORTFOLIO MANAGEMENT EXAMPREP STUDY GUIDE QUESTIONS AND ACCURATE SOLUTIONS

LEAN PORTFOLIO MANAGEMENT
EXAMPREP STUDY GUIDE QUESTIONS AND
ACCURATE SOLUTIONS

●● 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