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Guide to Lean Portfolio Management

Why it is Important:
Lean Portfolio Management is essential because it aligns strategy to execution, fostering better decision-making capabilities. It also helps optimize portfolio operations, increasing the predictability and visibility of organizational objectives.

What it is:
Lean Portfolio Management (LPM) is a methodology which applies Lean principles to portfolio management, aiming to optimize the flow of value delivery in organizations. It is about applying Lean thinking to prioritize and manage the flow of value through portfolios of dependent, interrelated projects.

How it Works:
LPM operates under three primary functions: Strategy and Investment Funding, Agile Portfolio Operations, and Lean Governance. It utilizes key concepts from Lean thinking, such as visualizing work, limiting work in progress (WIP), managing flow, making policies explicit, and using feedback loops.

Exam Tips - Answering Questions on Lean Portfolio Management:
1. Understand core principles: Get a deep understanding of Lean thinking and the primary functions of LPM.
2. Practical examples: Use practical examples when describing how LPM works.
3. Scenario-based questions: Most questions on LPM test your ability to apply Lean principles in various scenarios.
4. Summary understanding: Ensure a comprehensive understanding of terms and concepts central to LPM, such as limiting WIP and visualizing work.

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Lean Portfolio Management practice test

Lean Portfolio Management (LPM) is a SAFe concept that represents a shift in mindset for many organizations. With LPM, organizations can execute strategy with a sustainable flow of value, which embraces an iterative planning process. It also establishes portfolio flow by defining the key indicators for measuring the active work within the portfolio and reduces the batch size at the portfolio level to facilitate faster customer value.

Time: 5 minutes   Questions: 5

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PMI Agile Certified Practitioner Preparation Package (2024)

  • 4442 Superior-grade PMI Agile Certified Practitioner practice questions.
  • Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
  • Unlock Effortless PMI-ACP preparation: 5 full exams.
  • 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
  • Bonus: If you upgrade now you get upgraded access to all courses
  • Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!