LPM Test Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

LPM Test Questions and Answers | Latest Version | 2025/2026 | Correct & Verified How does LPM support decentralized decision-making? By providing guardrails and guidelines that allow value stream leaders to make local investment choices What is the role of Strategic Themes in LPM? To guide portfolio investment decisions and connect strategy to execution What is a portfolio epic? A large initiative that drives significant business value and requires analysis, approval, and funding How does LPM use WSJF? To prioritize epics based on business value, time criticality, risk reduction, and effort What is the purpose of the Portfolio Kanban? 2 To visualize the flow of epics from ideation through analysis, approval, and implementation How does LPM enable faster response to market changes? By continuously reprioritizing epics and allocating Lean Budgets dynamically What are Lean Budgets? Funding allocated to value streams instead of individual projects to maximize business value What is the role of participatory budgeting in LPM? To involve stakeholders in allocating funding to initiatives based on value and strategic priorities How does an Epic Owner contribute to LPM? By defining epics, validating hypotheses, and guiding implementation toward business outcomes What is the purpose of a Lean Portfolio Canvas? To capture the strategic intent, expected outcomes, and hypotheses of a portfolio initiative 3 How does LPM improve transparency? By visualizing epics, funding, and progress in the Portfolio Kanban and regular Portfolio Sync meetings What is the role of portfolio metrics? To measure progress, predictability, and alignment with strategic objectives How does LPM facilitate continuous learning? Through Inspect and Adapt workshops and feedback loops at the portfolio level What is the purpose of guardrails in Lean Budgeting? To provide boundaries and guidelines for investment decisions while enabling local autonomy How do Strategic Themes influence value stream priorities? They provide guidance for allocating resources to initiatives that align with business objectives 4 What is the Portfolio Backlog? A prioritized list of epics that provides a pipeline for investment and execution How does LPM handle changing business priorities? By continuously reprioritizing epics and adjusting