Lean Portfolio Management- Questions
& Answers
Agile Portfolio Operations Correct Ans-Agile portfolio operations coordinates and supports
decentralized program execution, enabling operational excellence.
APO - Coordinate Value Streams Correct Ans-Value Stream Coordination defines how to
manage dependencies and exploit the opportunities that exist only in the interconnections
between value streams.
APO - Support Program Execution Correct Ans-Operating through the APMO, the LPM
function can help cultivate and apply successful program execution patterns across the portfolio.
The APMO also establishes objective metrics and reporting toward business agility. It may also
sponsor and support CoPs for RTEs (and Solution Train Engineers), as well as Scrum Masters.
These role-based CoPs provide a forum for sharing effective Agile program execution practices
and other institutional knowledge.
APO - Foster Operational Excellence Correct Ans-Operational excellence is a process that
focuses on continually improving efficiency, practices, and results to optimize business
performance. The LPM function plays a leadership role in operational excellence, helping the
organization achieve its business goals. The Lean-Agile Center of Excellence, or LACE, which
may be a standalone group or part of the APMO, is often responsible for leading operational
excellence. In either case, the LACE becomes a continuous source of energy to power the
enterprise through the necessary organizational changes
, Lean Governance Correct Ans-Lean Governance manages spending, audit and compliance,
forecasting expenses, and measurement.
LG - Forecast and Budget Dynamically Correct Ans-As described earlier, SAFe provides a
Lean approach to budgeting—a lightweight, more fluid, Agile process that replaces the fixed,
long-range budget cycles, financial commitments, and fixed-scope expectations of a traditional
planning process. This new approach to planning and budgeting includes understanding the
historical and forecasted future costs associated with each Solution and forecasted epics costs.
Budgets are adjusted on cadence, typically every six months, or when significant events warrant,
as part of the Strategic Portfolio Review or Participatory Budgeting Events (see below).
LG - Measure Portfolio Performance Correct Ans-Each portfolio must establish the minimum
metrics needed to ensure:
Strategy implementation
Spending aligns with the agreed boundaries
Results are continually improving, without overly detailed oversight of feature implementation
by ARTs
LG - Coordinate Continuous Compliance Correct Ans-Lean audit and compliance provide
continuous adherence while minimizing overhead and supporting the ongoing flow of value.
This may include internal or external financial auditing constraints and industry legal or
regulatory guidelines. These obligations impose significant limits on solution development and
operations. Traditional compliance procedures tend to defer these activities to the end of the
project. That subjects the enterprise to the risk of late discovery and subsequent rework, and even
compromising regulatory or legal exposure. Therefore, a more continuous approach is
recommended, one that coordinates ongoing compliance with relevant standards.
& Answers
Agile Portfolio Operations Correct Ans-Agile portfolio operations coordinates and supports
decentralized program execution, enabling operational excellence.
APO - Coordinate Value Streams Correct Ans-Value Stream Coordination defines how to
manage dependencies and exploit the opportunities that exist only in the interconnections
between value streams.
APO - Support Program Execution Correct Ans-Operating through the APMO, the LPM
function can help cultivate and apply successful program execution patterns across the portfolio.
The APMO also establishes objective metrics and reporting toward business agility. It may also
sponsor and support CoPs for RTEs (and Solution Train Engineers), as well as Scrum Masters.
These role-based CoPs provide a forum for sharing effective Agile program execution practices
and other institutional knowledge.
APO - Foster Operational Excellence Correct Ans-Operational excellence is a process that
focuses on continually improving efficiency, practices, and results to optimize business
performance. The LPM function plays a leadership role in operational excellence, helping the
organization achieve its business goals. The Lean-Agile Center of Excellence, or LACE, which
may be a standalone group or part of the APMO, is often responsible for leading operational
excellence. In either case, the LACE becomes a continuous source of energy to power the
enterprise through the necessary organizational changes
, Lean Governance Correct Ans-Lean Governance manages spending, audit and compliance,
forecasting expenses, and measurement.
LG - Forecast and Budget Dynamically Correct Ans-As described earlier, SAFe provides a
Lean approach to budgeting—a lightweight, more fluid, Agile process that replaces the fixed,
long-range budget cycles, financial commitments, and fixed-scope expectations of a traditional
planning process. This new approach to planning and budgeting includes understanding the
historical and forecasted future costs associated with each Solution and forecasted epics costs.
Budgets are adjusted on cadence, typically every six months, or when significant events warrant,
as part of the Strategic Portfolio Review or Participatory Budgeting Events (see below).
LG - Measure Portfolio Performance Correct Ans-Each portfolio must establish the minimum
metrics needed to ensure:
Strategy implementation
Spending aligns with the agreed boundaries
Results are continually improving, without overly detailed oversight of feature implementation
by ARTs
LG - Coordinate Continuous Compliance Correct Ans-Lean audit and compliance provide
continuous adherence while minimizing overhead and supporting the ongoing flow of value.
This may include internal or external financial auditing constraints and industry legal or
regulatory guidelines. These obligations impose significant limits on solution development and
operations. Traditional compliance procedures tend to defer these activities to the end of the
project. That subjects the enterprise to the risk of late discovery and subsequent rework, and even
compromising regulatory or legal exposure. Therefore, a more continuous approach is
recommended, one that coordinates ongoing compliance with relevant standards.
