LPM Lesson 4 - Establishing Investment Funding

Question 1

True/False - There is a single set of budget guardrails for the Enterprise?

Answer 1

False. Each Portfolio establishes a set of budget guardrais.

Question 2

What are the 4 lean budget guardrails?

Answer 2

1. Guiding investments by horizon
2. Apply capacity allocation
3. Approve significant initiatives
4. Continuous Business Owner engagement

Question 3

True/False - LPM should apply equal funding for each investment horizon?

Answer 3

False. LPM identifies the % of the portfolio budget to be invested to each horizon.

Question 4

What are the 3 components (types of work) to Portfolio Capacity Allocation?

Answer 4

1. New Features
2. Enablers
3. Tech debt/maintenance

Question 5

What are the 5 qualities a Business Owner should posses?

Answer 5

1. Responsible for Business Outcomes
2. Steer the ART
3. Speak to technical competence
4. Speak for the customer and business
5. Approve PI plans

Question 6

What 3 things does a Business Owner do?

Answer 6

1. Provide input for backlog refinement
2. Ensure alignment with business objectives
3. Prepare business context (milestones & significant dependencies)

Question 7

True/False - a Business Owner is only active during PI planning sessions?

Answer 7

False. They stay continually engaged with activities such as Solution Demos and contribute to release-on-demand strategy.

Question 8

What are the 3 LPM events?

Answer 8

1. Strategic Portfolio Review
2. Portfolio Sync
3. Participatory Budgeting

Question 9

What is the recommended cadence for Strategic Portfolio Review?

Answer 9

Quarterly

Question 10

What is the recommended cadence for Portfolio Sync?

Answer 10

Monthly

Question 11

What is the recommended cadence for Participatory Budgeting?

Answer 11

Bi-Annual

Question 12

What are the 3 components to the Strategic Portfolio Review?

Answer 12

1. Focused on achieve and advancing Portfolio Vision
2. Provides continuous strategy, implementation and budget alignment
3. Held quarterly at least 1 month before the next PI Planning

Question 13

What are the 3 components to the Portfolio Sync?

Answer 13

1. Focused on Portfolio Operations
2. Provide visibility into how well the Portfolio is progressing towards meeting its objectives
3. Held monthly and may be replaced with Strat. Portfolio Review

Question 14

What are the 3 components to Participatory Budgeting?

Answer 14

1. Focused on establishing and adjusting Lean Budgets
2. Provides a forum for stakeholders to decide how to invest the Portfolio Budget across Solutions and Epics
3. Held every 2 PIs

Question 15

Which meeting is used to maintain Portfolio Vision?

Answer 15

Strategic Portfolio Review

Question 16

Which meeting is used to Update the Portfolio Roadmap?

Answer 16

Portfolio Sync

Question 17

Which meeting is used to review Portfolio Roadmap?

Answer 17

Strategic Portfolio Review

Question 18

Which meeting is used to address cross Value Stream coordination

Answer 18

Portfolio Sync

Question 19

Which meeting is used to Address blocks and impediments

Answer 19

Portfolio Sync

Question 20

Which meeting is used to review Portfolio Metrics & KPIs

Answer 20

Strategic Portfolio Review

Question 21

Reviewing the results of MVPs and determining to pivot, persevere or stop is an example agenda item for which meeting?

Answer 21

Strategic Portfolio Review

Question 22

Reviewing Strategic Themes and OKRs is an example agenda item from which meeting?

Answer 22

Strategic Portfolio Review

Question 23

Review and action Lean Metrics is an example agenda item from which meeting?

Answer 23

Portfolio Sync

Question 24

Planning for cross-Value Stream dependencies and releases is an example agenda item from which meeting?

Answer 24

Portfolio Sync

Question 25

What are the 4 steps needed to run a successful Participatory Budgeting sessions?

Answer 25

1. Prepare the content 2. Assemble the participants 3. Conduct budgeting events 4. Analyze the result

Question 26

During Participatory Budgeting session, does (A) each person at the table gets an equal share of the budget to invest or (B) budget is portioned out based on seniority, with the most senior title getting the largest portion of the budget to allocate?

Answer 26

A - every voice is equal at the table during Participatory Budgeting.

Question 27

During Participatory Budgeting, in general, do you fund the baseline solution or the new Epics first?

Answer 27

Baseline solution (Run).

Question 28

True/False, Participatory Budgeting creates the budget/funding for the Portfolio.

Answer 28

False - it sets the Value Stream budgets.

Question 29

Who establishes the Portfolio Budget?

Answer 29

The Enterprise establishes to the total Portfolio budget.

Question 30

How often are Value Stream budgets adjusted?

Answer 30

Typically, 2x/year. Less frequently and it may limit agility More frequently and it planning may be more challenging.

Question 31

What happens after analyzing the results of the Participatory Budgeting session?

Answer 31

Adjust Value Stream budgets as needed. Total Portfolio budget remains the same. Then, Implement.