How Enterprise Agile Transformation is Facilitated by Lean Portfolio Management Approach?

“The fundamental unit of work in an agile transformation is to create an environment for agile to be able to operate.”

What is a Lean Portfolio Management function?

Enterprise agile transformation is when a company decides to shift from traditional management to go the agile way of working to achieve business agility. It helps organizations achieve goals like creating an environment that encourages innovation and collaboration. It also helps identify wasteful activities that increase manufacturing costs.

The traditional portfolio management systems followed an inflexible annual strategy that was difficult to change as the project funding was planned before the project begins. To incorporate changes in the production process without increasing the cost evolved a modern approach named Lean Portfolio Management which was introduced to connect business strategy with project execution.

Here the funding was provided to tasks that come on the priority list addressing customer needs. Enterprises to survive in this fast-paced business environment are adopting this Lean approach to increase delivery, produce quality products, increase speed, and improve their organizational health.

True business agility stems from forming better leadership support. Certified leaders can diligently help improve the agility of an organization with proper knowledge of what is agility and how it can be inculcated among team members so that they will be able to work towards agile transformation which is easier said than done. The Lean Portfolio Management Training courses are what make enterprise transformation possible by creating expert agile professionals.

In this article, let’s learn more about LPM and its process to facilitate enterprise agile transformation.

Steps to establish Lean Portfolio

1.      Strategy theme: Establish a theme that reflects your business objectives.

2.      Allocating value streams: Here you come up with a plan for budgeting estimated with cost management planning by keeping track of the planned cost concerning the actual cost to deliver value to the customer.

3.      Managing demands: After reviewing the estimated cost, the customer demand should be fulfilled by going against strategic priorities.

4.      Continuous planning: With certain tools, you must continuously review and adapt to the changing environment to eliminate waste.

5.      Estimation of resources: Use Lean Portfolio Management tools to optimize your resource usage to its full capacity and remain flexible as you use adapt plans.

6.      Continuous delivery: This is the basic principle of agile methodology which involves project managers making effective decisions with required data.

7.      Tracking business objectives: With defined KPIs execute adjustments to reduce any disruptions to maximize the efficiency of value streams.

8.      Lean governance: Lean governance is about making decisions based on portfolio performance to improve value and eliminate waste.

How does Lean Portfolio Management facilitate Enterprise Agile Transformation?

1.      Understanding the current state of the business portfolio, the LPM should be implemented to develop a plan that addresses the changing business context. It must ensure that the business portfolio is aligned with the investment strategy.

2.      The LPM approach helps organizations rearchitect their business portfolio in a way that they can pay more attention to the highest-value work.

3.      It helps create a feedback loop where they can easily access the demands of customers and fund the priorities for better business outcomes.

4.      This approach evolves budgeting practices and makes sure that it aligns with the business outcomes.

5.      With Lean Portfolio, you will be able to check all your projects in one place.

6.      The Lean Portfolio Management process is meant for eliminating manufacturing waste and improves the productivity process. Wastes like transportation, excess inventory, idle workers or equipment, overproduction, overprocessing, and defective products.

7.      Some of the Lean manufacturing tools that help eliminate wastes are value stream mapping, kanban boards, Poka-yoke, control charts, SMED, and more.

Benefits of Lean methodology

Some of the common benefits of applying Lean Portfolio Management are:

1.      Improves product quality: Lean Portfolio helps design a valuable process that meets the customer’s expectations and emphasis improving the quality of the product.

2.      Control over inventory: Lean production method helps in reducing costs and prevents issues related to production processes.

3.      Eliminating waste: Main functional priority of Lean methodology is to reduce waste that is bad for costs and deadlines.

4.      Reduce wastage of time: Focusing more on valuable tasks with time management strategies.

5.      Reducing cost: When time management is done properly, the money burned on the unnecessary task will go down automatically.

Title Description

1.      When should Lean Portfolio Management be established?

Lean Portfolio Management should be established when there is a need for communication between strategy and execution and when it is better to work in a decentralized environment.

What are the learning goals covered by Lean Portfolio Management Training?

Lean Portfolio Management Training helps you to identify the most valuable activities to set priorities and make sure that the business portfolio aligns with the business objectives.

 Why do you need a Lean Portfolio Management Certification?

Lean Portfolio Management Certification provides project managers with a proper understanding of the LPM implementation process to improve funding decisions across the business portfolio. Certified leaders possess the ability to recognize the benefits of implementing an agile portfolio strategy. 

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 contact@advanceagilty.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.