SAFe Lesson 5: Exploring Lean Portfolio Management || 100%
Accurate.
Strategy and Investment Funding correct answers ensures the entire portfolio is aligned and
funded to create and maintain the solutions needed to meet business targets; stakeholders connect
the portfolio to enterprise strategy (In a regular portfolio, you are driven by annual planning
cycles. For SAFe, it recommends rolling wave cycles - multiple times a year), maintain portfolio
vision, fund value streams NOT projects, establish portfolio flow by building a portfolio Kanban,
architects help understand from a technical perspective
key stakeholders: Enterprise Executives, business owners, enterprise architect
Portfolio Canvas correct answers defines the value streams that are included in a SAFe portfolio,
the value propositions and the solutions they deliver, the customers they serve, the budgets
allocated to each value stream, and other key activities and events required to achieve the
portfolio vision
Strategic Themes correct answers Differentiating, specific, and itemized business objectives that
connect a portfolio to the strategy of the enterprise. Provide business context for decision-
making, and serve as inputs to the vision, budget, and backlogs for the Portfolio, Large Solution,
and Program levels. Their primary purpose is to drive portfolio innovation and differentiation;
adjust ART and Value Stream funding to track changing strategic priorities; assist with Epic
evaluation and decision-making; influence each Program Vision and Roadmap
Affect: portfolio vision, portfolio kanban / backlog, vision for solution / program / team backlog,
value stream budgets, lean budget guardrails
TOWS correct answers used to identify strategic options, epics and others to create a better
future state; A SWOT analysis is a great way to uncover the current situation of your value
stream, product or portfolio, while TOWS is used primarily for identifying strategic options to
create a better future state.
T = External Threats
O = External Opportunities
W = Internal Weaknesses
S = Internal Strengths
Leading Indicator correct answers The early measures that will help predict the business
outcome hypothesis
Deriving and Expressing Future State correct answers Future state: portfolio canvas captures
current state -> SWOT and TOWS used to brainstorm future states -> evaluate options ->
identify epics that will get us there
Make it in such a way that it addresses all 7 types of intelligence (visual, hearing, etc.)
, Portfolio Kanban correct answers makes the work visible and uses Work-in-Process (WIP) limits
to help assure that demand is matched to the actual capacity of value streams and Agile Release
Trains (ARTs); brings structure to analysis and decision making; prevent unrealistic
expectations; drive collaboration and quantitative economic decision-making
Portfolio SAFe correct answers aligns strategy with execution and organizes solution
development around the flow of value through one or more value streams; includes Essential
SAFe, is the smallest configuration that can be used to achieve Business Agility; consists of the
following additional competencies: Lean Portfolio Management, Continuous Learning Culture,
Organizational Agility
Lean Budgets correct answers allows fast and empowered decision-making, with appropriate
financial control and accountability through Guardrails; provide funding for value streams
aligned with the business strategy and current strategic themes
3 Steps: Funding value streams, not projects; guiding investments by horizon; applying
participatory budgeting
Guardrails correct answers the policies and practices for budgeting, spending, and governance
for a specific portfolio; LPM maintains appropriate levels of oversight through the allocation of
value stream budgets and by applying Lean budget guardrails
4 guardrails: guiding investments by horizon, applying capacity allocation to optimize value and
solution integrity, approving significant initiatives, continuous business owner engagement
Portfolio Vision correct answers a description of the future state of a portfolio's Value Streams
and solutions and describes how they will cooperate to achieve the portfolio's objectives and the
broader aim of the Enterprise; he realization of the portfolio vision is defined and communicated
through the current and future state portfolio canvas.
Characteristics: aspirational, yet realistic and achievable; motivational to engage others on the
journey
Lean Portfolio Management correct answers represents the individuals with the highest level of
decision-making and financial accountability for a SAFe portfolio; aligns strategy and execution
by applying Lean and systems thinking approaches to strategy and investment funding, Agile
portfolio operations, and governance; describes how a SAFe portfolio is a collection of Value
Streams for a specific business domain in an Enterprise
3 Components: Strategy & Investment Funding (enterprise execs, business owners, enterprise
architects), Lean Governance (APMO, enterprise architect, business owners), Agile Portfolio
Operations (APMO/LACE, TRE and SM CoP)
Enterprise Architect correct answers work across value streams and ARTs to help provide the
strategic technical direction that can optimize portfolio outcomes
Accurate.
Strategy and Investment Funding correct answers ensures the entire portfolio is aligned and
funded to create and maintain the solutions needed to meet business targets; stakeholders connect
the portfolio to enterprise strategy (In a regular portfolio, you are driven by annual planning
cycles. For SAFe, it recommends rolling wave cycles - multiple times a year), maintain portfolio
vision, fund value streams NOT projects, establish portfolio flow by building a portfolio Kanban,
architects help understand from a technical perspective
key stakeholders: Enterprise Executives, business owners, enterprise architect
Portfolio Canvas correct answers defines the value streams that are included in a SAFe portfolio,
the value propositions and the solutions they deliver, the customers they serve, the budgets
allocated to each value stream, and other key activities and events required to achieve the
portfolio vision
Strategic Themes correct answers Differentiating, specific, and itemized business objectives that
connect a portfolio to the strategy of the enterprise. Provide business context for decision-
making, and serve as inputs to the vision, budget, and backlogs for the Portfolio, Large Solution,
and Program levels. Their primary purpose is to drive portfolio innovation and differentiation;
adjust ART and Value Stream funding to track changing strategic priorities; assist with Epic
evaluation and decision-making; influence each Program Vision and Roadmap
Affect: portfolio vision, portfolio kanban / backlog, vision for solution / program / team backlog,
value stream budgets, lean budget guardrails
TOWS correct answers used to identify strategic options, epics and others to create a better
future state; A SWOT analysis is a great way to uncover the current situation of your value
stream, product or portfolio, while TOWS is used primarily for identifying strategic options to
create a better future state.
T = External Threats
O = External Opportunities
W = Internal Weaknesses
S = Internal Strengths
Leading Indicator correct answers The early measures that will help predict the business
outcome hypothesis
Deriving and Expressing Future State correct answers Future state: portfolio canvas captures
current state -> SWOT and TOWS used to brainstorm future states -> evaluate options ->
identify epics that will get us there
Make it in such a way that it addresses all 7 types of intelligence (visual, hearing, etc.)
, Portfolio Kanban correct answers makes the work visible and uses Work-in-Process (WIP) limits
to help assure that demand is matched to the actual capacity of value streams and Agile Release
Trains (ARTs); brings structure to analysis and decision making; prevent unrealistic
expectations; drive collaboration and quantitative economic decision-making
Portfolio SAFe correct answers aligns strategy with execution and organizes solution
development around the flow of value through one or more value streams; includes Essential
SAFe, is the smallest configuration that can be used to achieve Business Agility; consists of the
following additional competencies: Lean Portfolio Management, Continuous Learning Culture,
Organizational Agility
Lean Budgets correct answers allows fast and empowered decision-making, with appropriate
financial control and accountability through Guardrails; provide funding for value streams
aligned with the business strategy and current strategic themes
3 Steps: Funding value streams, not projects; guiding investments by horizon; applying
participatory budgeting
Guardrails correct answers the policies and practices for budgeting, spending, and governance
for a specific portfolio; LPM maintains appropriate levels of oversight through the allocation of
value stream budgets and by applying Lean budget guardrails
4 guardrails: guiding investments by horizon, applying capacity allocation to optimize value and
solution integrity, approving significant initiatives, continuous business owner engagement
Portfolio Vision correct answers a description of the future state of a portfolio's Value Streams
and solutions and describes how they will cooperate to achieve the portfolio's objectives and the
broader aim of the Enterprise; he realization of the portfolio vision is defined and communicated
through the current and future state portfolio canvas.
Characteristics: aspirational, yet realistic and achievable; motivational to engage others on the
journey
Lean Portfolio Management correct answers represents the individuals with the highest level of
decision-making and financial accountability for a SAFe portfolio; aligns strategy and execution
by applying Lean and systems thinking approaches to strategy and investment funding, Agile
portfolio operations, and governance; describes how a SAFe portfolio is a collection of Value
Streams for a specific business domain in an Enterprise
3 Components: Strategy & Investment Funding (enterprise execs, business owners, enterprise
architects), Lean Governance (APMO, enterprise architect, business owners), Agile Portfolio
Operations (APMO/LACE, TRE and SM CoP)
Enterprise Architect correct answers work across value streams and ARTs to help provide the
strategic technical direction that can optimize portfolio outcomes
