LPM Lesson 1 - Introducing Lean Portfolio Management Flashcards
Why LPM? Lean-Agile Mindset & SAFe Principles Problem with Project-Based Accounting Benefits of Organizing Around Value SAFe Portfolio Structure Shift to LPM
What are the 2 primary aspects of Lean-Agile Mindset?
- Thinking Lean with the SAFe House of Lean
2. Embracing Agility with the Agile Manifesto
What are the 3 essential collaborations for LPM to realize its responsibilities?
- Strategy & Investment Funding
- Agile Portfolio Operations
- Lean Governance
What are the 4 pillars to the House of Lean?
- Respect for people and culture
- Flow
- Innovation
- Relentless Improvement
What is the roof to the House of Lean?
Value
What is the foundation to the House of Lean?
Leadership
Name 5 key SAFe Lean-Agile Principles to apply to Portfolio
#1 - Take an economic view #5 - Base milestones on objective evaluation of working systems #6 - Visualize and limit WIP, reduce batch sizes, manage queue lengths #9 - Decentralize decision-making #10 - Organize around value
What are 3 keys to implementing flow (principle #6 - Visualize & Limit WIP)
- Visualize and limit WIP (to match demand to actual capacity)
- Reduce batch size of work (smaller batches go through the system faster with lower variability)
- Manage queue lengths (decrease delays, reduce waste, improve predictibility of outcomes)
What decisions should be centralized?
Centralize strategic decisions - those thta are infrequent, long lasting, and have significant economies of scale. Decentralize all others.
Development Value Streams are realized by what?
ARTs
What is the purpose of an ART?
ARTs build, support and maintain solutions within a Development Value Stream
How do feature overruns or changing priorities impact Lean Budgets?
They don’t - lean budgets are fixed per PI.
When a feature takes longer than planned, keep people working on the right feature for the right reasons, delay next feature as necessary.
What are the 2 types of Value Streams?
- Operational Value Streams (Sequence of activities needed to deliver a product or service to a customer)
- Development Value Streams (Sequence of activities needed to convert a business hypothesis into a technology-enabled solution that delivers customer value)
What is used to identify the portfolio around value?
Strategic Themes
What are the 4 key benefits to organizing around value?
- Enables long-lived, stable teams
- Enables faster learning and shorter time-to-market
- Contributes to higher quality and more productivity
- Supports leaner budgeting mechanisms
What is a SAFe portfolio?
A collection of Development Value Streams
What are the 2 trademarks of a Development Value Stream?
- Each DVS builds, supports and maintains solutions
2. Solutions are delivered to the Customer, whether internal or external to the Enterprise
Y/N - Can an enterprise have more than one Portfolio?
Yes - an Enterprise may have one or multiple portfolios.
Does LPM organize around people?
No - it organizes around value.
Organizing around value and applying cadence-based planning aligns all teams to a shared mission and vision. Traditional project portfolio approaches and siloed organizational structure inhibits the flow of value and innovation.
Which is LPM - annual planning or rolling wave budgeting?
Rolling wave budgeting
Enables adapting to change
Which is LPM - perpetual overload of demand or matching demand to capacity?
Matching demand to capacity
Increases flow through the system
Which is LPM - phase gate approvals or incremental value delivery?
Incremental value delivery
Delivers working solutions faster and earlier than phased-gate approaches. Learning is continuous and adjustments can be made incrementally each iteration.
Which is LPM - overly detailed business case or lean business case?
Lean business case
Provide just enough detail to establish viability, define MVP with a business outcome hypothesis, and deployment impact.
