In an organization, every project has its requirements. One of the best strategies that most of the companies follow is the Lean Portfolio Management approach. It helps organizations to plan and strategize their resource allocation for the portfolios of projects they handle to generate better outcomes. This approach creates an alignment between strategy and execution of a company. But when it comes to applying the new methodology to change the entire system, it is important to remember that it not only involves updating the decision-making process but also it affects the people involved within the organizations.
In this article, we share the crucial steps to follow while implementing the Lean Portfolio Management approach for your large organization with large portfolios.
Also read “The Role of Lean Portfolio Management in Enterprise Agile Transformation” to implement LPM.
Benefits of Applying the Lean Portfolio Management Approach
The Lean Portfolio Management approach is a Lean-Agile way of working. It helps organizations align their portfolios of complex projects to plan, fund, and execute systems at the portfolio level. Here are some benefits associated with implementing Lean methodology:
1. The LPM approach helps organizations deliver solutions faster.
2. It improves business outcomes.
3. It maximizes the amount of value generated by the organization.
4. By streamlining the most important task, it helps increase time to market.
5. It helps address and adapt the changing conditions.
6. The Lean Portfolio Management approach focuses on funding the most important work that improves the results.
7. Here the plans are value-driven to gather customer feedback to improve the business outcome.
There are plenty of benefits LPM approach can support organizations with. And joining a Lean Portfolio Management Training course can equip professionals with appropriate knowledge to drive benefits with LPM.
Also, to implement agile transformation for your enterprise, check “How to Lead an Enterprise Lean Agile Transformation.”
Tips to Introduce Lean Portfolio Management Approach in Large Portfolios
As an agile professional, are you wondering how to align the large portfolios of your large organization?
Also, are you thinking about what is the impact of introducing change to your large organization that involves thousands of people?
Well, here we discuss some important tips that can help you sort this out.
1. Align with Executive Leadership to change the mindset: If you are planning to implement Lean Portfolio Management at a certain level, it is important to make sure that you are successful enough in changing the mindset of your team members. And always begin with keeping the end in mind. Focus on strategy and outcomes.
2. Understanding the Strategy of the organization: This involves thinking about the new portfolios that need to be created in upcoming years, and results that the future clients may expect. And also analysing the current working system.
3. Analysing the decision-making: Here it is to identify and analyse the decisions taken in your organization. Also, measure what initiatives these decisions make. And determine the fiscal process in your company.
4. Analyse when the change can be initiated: As mentioned earlier if you are clear with the decisions that are made in your organization, you can determine the other decisions that can impact any big changes that you make in the future. So, it is better to discuss with the strategist a few months ahead before crafting a new plan for the next cycle.
5. Creating the existing Portfolio canvas: Crafting a portfolio canvas concerning the views of all team members helps reduce the re-work. Also, before setting up ARTs into the Lean-Agile portfolio it is important to consider the current portfolio state. And decide on the value stream that best defines your enterprise goals.
6. Providing due attention to each portfolio: Implementing change at a time for every portfolio can create a clash. So, it is better to pay due attention to each portfolio to implement LPM practices.
7. Maintaining the connection between the systems and new portfolios: Apply System Thinking to keep track of Lean Portfolio Implementation in the organization. so that you don’t lose focus on decisions that affect your business.
Focusing on the tips discussed here can save you from taking steps that can affect your organization’s growth. Also, with right set of professionals who possess the Lean Portfolio Management Certification can save you disagreements and clashes between team members. And with the right knowledge, a certified candidates can prove to be a great asset for your large organization.
In conclusion, Lean Portfolio Management can be applied to understanding the important measures and aspects of the organization so that it does not disturb the systems of a company. And above-mentioned tips can help you follow the right strategy at the right time.
For further reading: “The Future of Lean Portfolio Management Some Predictions and Trends to Watch.”
1. How does LPM differ from traditional portfolio management?
LPM differs in many ways like it focuses on generating the desired results instead of quantity of values. It helps make changes in the strategy based on feedback whereas in the traditional process it is quite difficult to implement changes. LPM maintains finances quarterly not annually.
2. Why do you need Lean Portfolio Management?
Because it helps deliver incremental value in a shorter period. Also helps analyse feedback to reinvest in ideas to produce better business outcomes.
3. What are the pain points covered by the LPM approach?
The LPM approach helps address pain points such as building cross-functional teams, planning and execution for continuous value flow, modification in budgets, and more.
4. What are the main elements of the Lean Portfolio Management approach?
Some of the important elements are setting outcome-based objectives, converting ideas into investments, and targeting value delivery based on market needs.
About Advance Agility
We, at Advance Agility, are the new-age Agile Coaching, Consulting and IT services company. We enable end-to-end Digital Transformation. Agile execution is integral to our being. We are doing SAFe implementation with small, medium and large organization across the globe. Our vision is to be the leading Agile execution player globally. To keep adding value at every process stage. We are on a mission to empower our clients, move from concept to cash in the shortest sustainable lead time by adopting human centric approach to business agility. Embracing the change is in our DNA. Things that keep us apart are Quicker and Seamless execution with End-to-end gamut of services. Our Global presence and Stellar Track Record give us an edge over our competitor.
Connect with us at advanceagility.com to learn about SAFe and SAFe Implementation. We provide various SAFe certification courses along with DevOps, Scrum, Agile Coaching and more trainings. Write to us at email@example.com for any agile training or consulting needs. We are always looking for competent agile trainers as well. So if you are a good trainer or want to become one, do get in touch with us to that we can learn, grow and achieve together.