Introducing Lean Portfolio Management

Question 1

What are the core principles of Lean Thinking?

Answer 1

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

Question 2

What do we consider when evaluating economic tradeoffs? (SAFe Principle #1)

Answer 2

Lead Time
Product Cost
Value
Development Expense
Risk

Question 3

How do you make value flow without interruptions? (SAFe Principle #6)

Answer 3

1. Visualize and limit WIP
2. address bottlenecks
3. minimize hand offs 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

Question 4

What is a SAFe portfolio?

Answer 4

A collection of Development Value Streams

Question 5

Which three groups connect the portfolio to enterprise strategy and establish portfolio flow?

Answer 5

Enterprise Executives
Business Onwers
Enterprise Architects

Question 6

What do Enterprise Executives, Business Owners, and Enterprise Architects collaborate to do?

Answer 6

Connect the portfolio to the Enterprise strategy
Establish portfolio flow

Question 7

What’s true about strategic themes?

Answer 7

Could be any of these answers:
- a collaboration between LPM and the larger Enterprise
- drive the future state of a portfolio
- connect the portfolio to the Enterprise strategy
- provide context for the Portfolio Vision and Lean budgeting

Question 8

What group of people have the most influence over strategic themes?

Answer 8

Business owners

Question 9

What is the purpose of TOWS?

Answer 9

Identify strategic options

Question 10

What’s important to consider when developing a roadmap?

Answer 10

Clarity/specificity diminishes over time

Question 11

What’s the benefit of having a portfolio roadmap?

Answer 11

Communicates the larger picture to the enterprise stakeholders

Question 12

What influences roadmaps?

Answer 12

Market Rhythms
Market Milestones
Market Events

Question 13

The epic hypothesis statement contains which four fields?

Answer 13

The value statement
Business outcomes hypothesis
Leading indicators
Nonfunctional requirements (NFRs)

Question 14

What are four types of pivots?

Answer 14

Customer Segment Pivot
Customer Need Pivot
Value Capture Pivot
Zoom-in Pivot/Feature Pivot

Question 15

What is achieved with budget guardrails?

Answer 15

Budget,spending, governance guardrails

Question 16

What’s the purpose of the Strategic Portfolio Review?

Answer 16

• focused on achieving and advancing the portfolio vision
• provides continuous strategy, implementation, and budget alignment
• typically held on a quarterly cadence, at least one month before the next PI Planning

Question 17

What is the purpose of the Portfolio Sync?

Answer 17

• focused on portfolio operations
• provides visibility into how well the portfolio is progressing towards meeting its objectives
• typically held weekly, every other week, or monthly, depending on the maturity of the portfolio

Question 18

What is the purpose of Participatory Budgeting?

Answer 18

• focused on establishing and adjusting lean budgets
• provides a forum for stakeholders to decide how to invest the portfolio budget across Solutions and Epics
• typically held every two PIs

Question 19

Why are value stream budgets adjusted over time?

Answer 19

To take advantage of emerging opportunities

Question 20

What’s the output of participatory budgeting?

Answer 20

New or adjusted value stream budgets

Question 21

What are the key benefits to organizing around value?

Answer 21

Enables long-lived, stable teams
Enables faster learning and shorter time-to-market
Contributes to higher quality and more productivity
Supports leaner budgeting mechanisms