Lean Portfolio Management (LPM) shares similar goals with a traditional PPM organization but has some significant differences that can offer some substantial incremental benefits. LPM involves applying a lean agile mindset and a modernized set of practices based on lean principles to the conventional functions of portfolio management. Transforming to Lean Portfolio Management means shifting from annual planning and budgeting cycles with fixed scope expectations to more agile and fluid rolling-wave planning with a more continuous flow of work managed by a Portfolio Kanban system.
In the Scaled Agile Framework, the owners, architects and portfolio management team continuously analyzes the proposed epics that make up the portfolio solution sets. Once each (and the minimum viable product) is reviewed, elaborated, estimated and approved (with a Lean business case) they are added to the portfolio backlog to be scheduled for implementation.
Critical to the success of Lean Portfolio Management is ensuring alignment of the portfolio with the enterprise’s business objectives and strategy – and effective collaboration with the key stakeholders to ensure the right investments are made in the right areas.
Additional differentiating responsibilities of Lean portfolio management include agile approaches to forecasting and budgeting, establishing lean portfolio metrics to manage performance and progress, a more frequent and integrated compliance process, and providing governance and support for continuous improvement of a more decentralized practice with groups like an Agile PMO Lean-Agile Center of Excellence and/or communities of practice.
Version 4.5 of the Scaled Agile Framework has significantly elaborated on the elements of Lean Portfolio Management recognizing the opportunity to provide some new perspectives and enhanced practices to PPM.
https://www.scaledagileframework.com/whats-new-in-safe-46/
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