Lean Portfolio Management 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.

It is one of the seven core competencies of the Lean Enterprise, each of which is essential to achieving Business Agility. Each core competency is supported by a specific assessment, which enables the enterprise to assess their proficiency. These core competency assessments, along with recommended improvement opportunities, are available from the Measure and Grow article.

Lean Portfolio Management describes how a SAFe portfolio is a collection of Value Streams for a specific business domain in an Enterprise.

These value streams develop products or solutions for external customers or create solutions for internal operational value streams.

One SAFe portfolio can typically govern the entire solution set for a small-to-medium-size organization. Large enterprises often require multiple portfolios, usually for each line of business, business unit, or division.

Why Lean Portfolio Management? Traditional approaches to portfolio management were not designed for a global economy or the impact of digital disruption. These factors put pressure on enterprises to work under a higher degree of uncertainty and deliver innovative solutions much faster. Despite this new reality, many legacy portfolio practices remain.

Figure 2 illustrates the three dimensions of the Lean Portfolio Management competency, followed by a brief description of each:

1.Strategy & Investment Funding ensures the entire portfolio is aligned and funded to create and maintain the solutions needed to meet business targets.

2. Agile Portfolio Operations coordinates and supports decentralized program execution and fosters operational excellence.

3. Lean Governance is the oversight and decision-making of spending, audit and compliance, forecasting expenses, and measurement.

This video utilizes some parts of information from scaled agile website, for more details please visit www.scaledagileframework.com.

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