Lesson 5: Exploring Lean Portfolio Management (6 questions) Flashcards
What are the three dimensions associated with Lean Portfolio Management? (Hint 3 triangles)
- Strategy and Investment Funding
- Agile Portfolio Operations
- Lean Governance
What is a SAFe Portfolio?
A SAFe portfolio is a collection of Development Value Streams (DVS).
► Each DVS builds, supports, and maintains solutions for the Operational Value Stream (OVS)
► These solutions are delivered by the OVS to the Customer, whether internal or external to the Enterprise.
A SAFe portfolio aligns strategy to execution via a collection of DVS.
< blank > < blank > is a template for identifying a specific SAFe portfolio
The Portfolio Canvas is a template for identifying a specific SAFE portfolio. It defines the domain of the portfolio and other key elements.
The portfolio canvas defines the:
- Value proposition
<> the set of DVS in the portfolio
<> the solutions they deliver,
<> customers they serve
<> budgets allocated to each value stream
- other vital activities and events required to achieve the portfolio vision.
Strategic themes are aligned with enterprise vision and strategy through the process of portfolio strategy formulation.
What are the six inputs for Enterprize Strategy fomulation?
Enterprise Vision – This is the north star that ensures all parts of the organization are aligned. It answers, “Why do we exist?
Enterprise Strategy – Outlines how the company will achieve its mission through its products and services, customers, financial position, people, business model, and partnerships. The enterprise strategy answers, “What will we do to win the market?”
Portfolio Context – Describes the current state of the portfolio’s solutions and its performance as measured by value stream KPIs. This is the baseline for developing new epics and features. Portfolio leaders are the experts able to answer, “What is our starting point?”
Competitive environment– Strategies for evolving products and services cannot be formulated in a vacuum. Portfolio leaders answer the question, “What competition do we face?” by drawing on competitive analysis that identifies the most significant threats to the business and opportunities to grow existing market share.
Distinctive competence – Effective strategies naturally leverage the unique advantages that differentiate the organization’s solutions from other solutions in the market. The enterprise’s competitive edge is clarified by answering, “What are we better at than anyone else?”
Financial goals – Whether measured in revenue, profitability, market share, or other metrics, financial goals used to evaluate portfolio solutions are an explicit input to portfolio strategy formulation. Every enterprise is guided by a defined set of financial targets that answer, “How do we measure company performance?”
What are two tools/techniques used to help understand the opportunities for the future portfolio state?
SWOT and TOWS
SWOT - establishes an understanding of the potfolio strength and weaknesses related to the current buisness situation.
internal origin: Strengths || Weaknesses
external origin: Opportunities || Threats
TOWS - used with SWOT used primarly to id strategic options for a future state.
< blank > is used primarily for identifying strategic options to create a better future state.
a) TOWS
b) SWOT
TOWS
< blank > analysis is a great way to uncover the current situation of your value streams, product or portfolio.
a) SWOT
b) TOWS
SWOT
What are the states (steps) to envision a future portfolio state?
- Use the ‘Portfolio Canvas’ captures the current state
- Use SWOT and TOWS to brainstore potential future states.
- Explore possibilies and evaluate your options (diverge/converge). Select a future state (and create a future state portfolio canvas).
- Build out the gap between current and future state by identify the Epics that will get you to this future state.
< Blank > < Blank > are a vital tool for communicating the critical business objectives to Agile Teams and ARTs, aligning their purpose with the purpose of the broader enterprise.
They provide much of the organizational clarity that fuels effective decentralized decision-making and ensure that Value Streams are driven by measurable business outcomes.
Strategic Themes
Strategic themes connect the enterprise strategy to a portfolio.
Strategic themes are best stated in Objective and Key Result (OKR) format. These OKRs say what the portfolio will pursue, providing decision-makers and contributors at all levels the clarity needed for decentralized decision-making.
Enterprise Strategy/vison -> Strategic Themes -> Portfolio Vision
https://scaledagileframework.com/strategic-themes/
Of the six key inputs that provide the strategic, commercial, and technical insight needed to formulate a portfolio strategy. Which input addresses the question “What will we do to win the market?”
a) Enterprize Vision
b) Enterpise Strategy
c) Portfolio Context
d) Distinctive Competence
e) Financial Goals
f) Competitive Enviornment
b) Enterpise Strategy
Outlines how the company will achive its mission through its product and services. The enterprize strategy answers, what will we do to win the market?
Of the six key inputs that provide the strategic, commercial, and technical insight needed to formulate a portfolio strategy. Which input addresses the question “Why do we exist?”
a) Enterprize Vision
b) Enterpise Strategy
c) Portfolio Context
d) Distinctive Competence
e) Financial Goals
f) Competitive Enviornment
a) Enterpize Vision
This is the north star that ensures all parts of the organization are aligned and answers “Why do we exist”.
The enterprize vision establishes a strong ‘why’ for the company.
Of the six key inputs that provide the strategic, commercial, and technical insight needed to formulate a portfolio strategy. Which input addresses the question “What is our starting point?”
a) Enterprize Vision
b) Enterpise Strategy
c) Portfolio Context
d) Distinctive Competence
e) Financial Goals
f) Competitive Environment
c) Portfolio Context
Describes the current state of the portfolio’s solutions and its preformance (measured in KPIs). This is the baseline for developing new epics and features.
Of the six key inputs that provide the strategic, commercial, and technical insight needed to formulate a portfolio strategy. Which input addresses the question “What are we better at than anyone else?”
a) Enterprize Vision
b) Enterpise Strategy
c) Portfolio Context
d) Distinctive Competence
e) Financial Goals
f) Competitive Enviornment
d) Distinctive Competence
When are strategic themes measured and evaluated? Under what portfolio event does this? Pick letter/number
a) monthly 1) Portfolio Sync
b) quartely 2) ART Sync
c) bi-anual 3) Strategic Portfolio Review
d) annually 4) Participatory budgeting
Stategic themes are evaluated quaterly at the Strategic Portfolio Review.
What are the two types of portfolio Epics?
Business Epics - deliver business value
Enabler Epics - support artchitectural runway
Portfolio epics are typically cross-cutting, typically spanning multiple Value Streams and PIs.
Epics need:
– a lean buisness case,
– the defiintion of MVP
– an Epic owner and
– approval by LPM (if exceed a defined threshold).
What are the four parts of a portfolio Epic Hypothesis statement?
1) Epic Hypothesis Statement “For-who-the…”
2) Buisness Outcomes – quanatative or qualatative benifits the business can anticipate if hypothesis is proven correct
3) Leading indicators – Early measures that can help predict the outcome
4) NFR
SAFe provides a Lean budget approach, which reduces the overhead and costs associated with traditional cost accounting and empowers people through Principle #9, Decentralized decision-making.
What are the 3 main steps to achieve Lean Budgets?
- Fund Value Streams, not projects – The portfolio budget funds a set of Development Value Streams. Each delivers one or more business solutions and is given a budget for its value stream
-
Guide Investments by Horizon – 4 horizons:
* horizon 3 (Evaluating) : 3-5 years profiiability
* horizion 2 (Emerging): 1-2 years profitiable
* horizion 1 (Investing/Extracting) : current year
* horizion 0 - Retiring - Applying Participatory Budgeting