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Lean Portfolio Management creates strategic alignment (LPM) (core
competency)
The Lean Portfolio Management competency aligns strategy and
execution by applying Lean and systems thinking approaches to
strategy and investment funding, Agile portfolio operations, and
governance. These collaborations give the enterprise the ability to align
strategy to execution, to meet existing commitments reliably, and to
better enable innovation. 3 dimensions=
1- Strategy and investment funding
-Enterprise executives, business owners, enterprise architect
2- Agile portfolio operations
-APMO/LACE, RTE and SM CoP
3- Lean governance
-APMO, Enterprise Architect, Business Owner
-Connects enterprise to portfolio strategy
-created lean budget and investment guardrails
-manages portfolio operations
-provide lean governance across value streams
,Lean Governance
is the oversight and decision-making of spending, audit and compliance,
forecasting expenses, and measurement.
Enterprise
Architect
Business Owners
Agile PMO LACE
Responsibilities= forecast and budget dynamically, measure portfolio
performance, coordinate continuous compliance
LACE
Lean Agile Center of Excellence
STE
solution train engineer
Agile Portfolio Operations
Agile
PMO/LACE
RTE and SM
CoP
Responsibilities= Coordinate value streams, support program execution,
drive operational excellence
,Strategy and Investment Funding
Enterprise Executives
Business Owners
Enterprise Architect
Responsibilities= Connect the portfolio to enterprise strategy, maintain
a portfolio vision, fund value streams, establish portfolio flow
Lean Budgets
A set of practices that minimizes overhead by funding and empowering
Value Streams rather than projects, while maintaining financial and
fitness-for-use governance. This is achieved through objective
evaluation of working systems, prudent management of Epic
investments, and dynamic budget adjustments. Budgets are supported
by guardrails that outline spending policies, guidelines and practices
for specific portfolio
Lean budget guardrails
Lean Budget Guardrails describe budgetary, governance and spending
policies and practices for the lean budgets allocated to a specific
portfolio.
1- guiding investments by horizon
2- Optimizing Value and Solution Integrity with Capacity
allocation 3-Approving Significant Initiatives
4-Continuous Business Owner Engagement
, Business Owners
Prepare for upcoming
PI PI Planning
I & A Workshop
WSJF
Weighted Shortest Job
First Taking an
economic view
Ignoring sunk costs
Making financial choices continuously
Using decision rules to decentralize decision-making and
control If you only quantify one thing, quantify the Cost
of Delay
**Job size does not always make a good proxy for the duration on the
WSJF algorithm
A Program Increment is to an ART (or Solution Train)
as an 'Iteration is to the Agile Team.'
Cadence and Synchronization
Each PI uses cadence and synchronization to :
Facilitate planning, limit WIP, summarize newsworthy value for feedback,
assure consistent program level retrospectives