6.0 Lean Portfolio Management || A+ Validated.
LPM provides three essential collaborations to realize responsibilities correct answers 1)
Strategy and Investments
2) Agile Portfolio Operations
3) Lean Governance
Lean Thinking correct answers 1) Precisely specify value by product
2) Identify the Value Stream for each product
3) Make value flow without interruptions
4) Let the Customer pull value from the producer
5) Pursue perfection
True or False: LPM is part of the 8 Core Competencies of Business Agility correct answers
False: LPM is part of the 7 Core Competencies of Business Agility
Agile Values correct answers -individuals and interactions over process and tools
-working software over comprehensive documentation
-customer collaboration over contract negotiation
-responding to change over following a plan
What are the 5 Lean Agile Principles critical to LPM correct answers 1) Take an Economic View
5) Base milestones on objective evaluation of working systems
6) Make value flow without interruptions
9) Decentralize decision-making
10) Organize around value
Take an Economic View correct answers ► Deliver early and often
► Operate within Lean Budgets
and Guardrails
► Understand economic trade-offs
for Solutions
► Leverage Suppliers
► Sequence jobs (Epics) for
maximum benefit
► Empower local decision-making
Base milestones on objective evaluation of working systems correct answers Base milestones on
objective evaluation of working systems
► 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
Principle #6: Make value flow without interruptions correct answers 1. Visualize and limit WIP
2. Address bottlenecks
3. Minimize handoffs and dependencies
4. Get faster feedback
5. Work in smaller batches
6. Reduce queue length
7. Optimize time 'in the zone'
8. Remediate legacy practices and policies
Principle #9: Decentralize decision-making correct answers - Centralize strategic decisions—
those that are infrequent, long lasting, and have significant economies of scale. Decentralize all
others.
Provide clarity on organizational objectives and provide opportunities to exercise and cultivate
decision-making abilities.
Openly discuss how to move authority for decisions closer to where the work is performed.
Establish a decision-making framework that equips knowledge workers with the information to
make good decisions.
Apply Lean Budget Guardrails to create alignment for decentralized decisions with the
appropriate controls.
Problems with Project Cost-Center Budgets correct answers Create Overhead, Friction, and
Lower Velocity
When cost overruns happen, wait for new budgets to be approved, which causes an Increase to
Cost of Delay...leads to blame game. Resource scramble reassignments.
How are Lean Budgets affected by Feature Overruns? correct answers When a Feature takes
longer than planned, keep people working on the right Feature for the right reasons
Why is it necessary to estimate epic costs? correct answers To understand the potential
investment required
What does the Portfolio Roadmap give an organization? correct answers A forecast of Future
Work
What is one responsibility of Agile portfolio operations? correct answers Coordinating value
streams
What is an example of a vanity metric? correct answers Feature percent complete
LPM provides three essential collaborations to realize responsibilities correct answers 1)
Strategy and Investments
2) Agile Portfolio Operations
3) Lean Governance
Lean Thinking correct answers 1) Precisely specify value by product
2) Identify the Value Stream for each product
3) Make value flow without interruptions
4) Let the Customer pull value from the producer
5) Pursue perfection
True or False: LPM is part of the 8 Core Competencies of Business Agility correct answers
False: LPM is part of the 7 Core Competencies of Business Agility
Agile Values correct answers -individuals and interactions over process and tools
-working software over comprehensive documentation
-customer collaboration over contract negotiation
-responding to change over following a plan
What are the 5 Lean Agile Principles critical to LPM correct answers 1) Take an Economic View
5) Base milestones on objective evaluation of working systems
6) Make value flow without interruptions
9) Decentralize decision-making
10) Organize around value
Take an Economic View correct answers ► Deliver early and often
► Operate within Lean Budgets
and Guardrails
► Understand economic trade-offs
for Solutions
► Leverage Suppliers
► Sequence jobs (Epics) for
maximum benefit
► Empower local decision-making
Base milestones on objective evaluation of working systems correct answers Base milestones on
objective evaluation of working systems
► 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
Principle #6: Make value flow without interruptions correct answers 1. Visualize and limit WIP
2. Address bottlenecks
3. Minimize handoffs and dependencies
4. Get faster feedback
5. Work in smaller batches
6. Reduce queue length
7. Optimize time 'in the zone'
8. Remediate legacy practices and policies
Principle #9: Decentralize decision-making correct answers - Centralize strategic decisions—
those that are infrequent, long lasting, and have significant economies of scale. Decentralize all
others.
Provide clarity on organizational objectives and provide opportunities to exercise and cultivate
decision-making abilities.
Openly discuss how to move authority for decisions closer to where the work is performed.
Establish a decision-making framework that equips knowledge workers with the information to
make good decisions.
Apply Lean Budget Guardrails to create alignment for decentralized decisions with the
appropriate controls.
Problems with Project Cost-Center Budgets correct answers Create Overhead, Friction, and
Lower Velocity
When cost overruns happen, wait for new budgets to be approved, which causes an Increase to
Cost of Delay...leads to blame game. Resource scramble reassignments.
How are Lean Budgets affected by Feature Overruns? correct answers When a Feature takes
longer than planned, keep people working on the right Feature for the right reasons
Why is it necessary to estimate epic costs? correct answers To understand the potential
investment required
What does the Portfolio Roadmap give an organization? correct answers A forecast of Future
Work
What is one responsibility of Agile portfolio operations? correct answers Coordinating value
streams
What is an example of a vanity metric? correct answers Feature percent complete
