Exploring Lean Portfolio Management

Question 1

What is a SAFe Portfolio

Answer 1

Collection of development Value Streams.
► Each Value Stream builds, supports, and maintains Solutions
► Solutions are delivered to the Customer, whether internal or external to the Enterprise

Question 2

SAFe Portfolio Highlights

Answer 2

► Value Streams – Every value stream has to fund the people and resources necessary to build Solutions that deliver value to the internal or external customer
► Lean Budgets – Lean budgeting allows fast and empowered decision-making, with appropriate financial control and accountability through Guardrails
► Portfolio Kanban – The portfolio Kanban system makes the work visible and uses Work-in-Process (WIP) limits to help assure that demand is matched to the actual capacity of value streams and Agile Release Trains (ARTs)
► Portfolio Vision – The portfolio Vision is a description of the future state of a portfolio’s Value Streams and solutions and describes how they will cooperate to achieve the portfolio’s objectives and the broader aim of the Enterprise
► Portfolio Canvas – The portfolio canvas provides critical inputs to the portfolio vision, Portfolio Backlog, and Lean Budgets.

Question 3

SAFe Portfolio Roles

Answer 3

1. Lean Portfolio Management (LPM) – This function represents the individuals with the highest level of decision-making and financial accountability for a SAFe portfolio
2. Epic Owners – Take responsibility for coordinating portfolio Epics through the portfolio Kanban system
3. Enterprise Architect – Enterprise architects work across value streams and ARTs to help provide the strategic technical direction that can optimize portfolio outcomes

Question 4

What are Epics

Answer 4

Container for a significant Solution development initiative that captures the more substantial investments that occur within a portfolio

► Portfolio Epics are typically cross-cutting, typically spanning multiple Value Streams and PIs
► Epics need a Lean business case, the definition of a minimum viable product (MVP), an Epic Owner, and approval by LPM

Question 5

Types of Epics (2)

Answer 5

– BUSINESS EPICS: Directly deliver business value
– ENABLER EPICS: Support the Architectural Runway and future business functionality

Question 6

Major Fields of Epics (4)

Answer 6

► Value Statement – Describes the Epic in general terms: the “for-who-the …” portion
► Business Outcomes Hypothesis - States the quantitative or qualitative benefits that the business can anticipate if the hypothesis is proven to be correct
► Leading Indicators – Describe the early measures that will help predict the business outcomes
► Nonfunctional Requirements (NFRs) Identify any NFRs associated with the Epic

Question 7

Guardrails (4)

Answer 7

► Apply investment horizons
► Utilize capacity allocation
► Approve Epic initiatives
► Continuous Business Owner engagement

Question 8

Types of Value Streams (2)

Answer 8

Operational value streams – Contains the steps and the people who deliver end-user value using solutions created by the development value streams

Development value streams – Contains the steps and the people who develop solutions used by operational value streams