Scaled Agile Framework (SAFe): How to implement Lean Portfolio Management (2023)

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Today's corporate world is changing rapidly due to globalization and disruptive innovations in the technology sector. Businesses need to keep up with the changing needs and interests of consumers. You need to be agile and develop unique solutions faster and more efficiently. On this lap, Escaladoagile structure(SAFe) provides a better view ofPortfolio-ManagementComplaint.

Traditional methods ofPortfolio-Managementare no longer efficient. A way to improve the businessagilityIt's thinPortfolioManagement. It allows you to build an agile framework to manage costs and deliver greater value. This simplifies your investment decisions and improves strategic business outcomes.

Introduction to the Scaled Agile Framework

The Scaled Agile Digital Framework (SAFe) is a versatile industry-standard framework for deliveryAgile,DevOpsand Lean practices at scale. It's also customizable and sustainable. SAFe follows ten agile principles toStrategyImplementation in any business context. They help you find solutions to unique and complex problems and ensure continuous improvement.

The SAFe portfolio aligns business strategy with portfolio execution through a collection of value streams for development. Each value stream operates under a common governance model. It offers one or more solutions for a business domain to fulfill its strategy.

Typically, a SAFe portfolio can develop the entire suite of solutions for a small to medium-sized business. Large organizations often require multiple portfolios for each business unit, division, or line of business. The SAFe portfolio configuration is a smaller configuration that you can leverage to gain business agility.

The SAFe portfolio has three other core competencies:

  • Lean portfolio managementment: Aligns business strategy with portfolio execution and applies lean thinking approaches to investment plans and financing.
  • Continuous learning culture:A set of practices and values ​​that motivate individuals and organizations. It helps them to improve performance, knowledge, innovation and competence.
  • Organizational Agility:Explains how disciplined agile teams and individuals with a lean mindset can create new strategies. They are always looking for ways to streamline their business processes and quickly adapt to new opportunities.

The SAFe portfolio hasprogramHigher level functions, artifacts and events. The portfolio palette is structured as follows.

Scaled Agile Framework (SAFe): How to implement Lean Portfolio Management (1)


Portfoliomanagement im SAFe Framework

Lean Portfolio Management (LPM) in SAFe involves the collection of development value streams from the SAFe portfolio. Value streams can provide internal operational value streams and develop products or create solutions for external customers. The Scaled Agile Framework portfolio management is modernized to facilitate the Lean-Agile way of working in today's world.

(Video) Implementing SAFe® Lean Portfolio Management for Executives

The LPM function of a SAFe portfolio has the highest level of financial responsibility and decision-making ability for the value streams. Together it enables the definition, communication and alignment of various business strategies. Let's look at the three dimensions of lean portfolio management in SAFe.

Investment strategy and financing

Strategyand investment finance ensures the entire portfolio is aligned and funded. Building solutions is necessary to achieve business goals. You must ensure that the right investments are made in the right places to achieve the goals.

Strategy and investment finance requires collaboration between executives, portfolio shareholders, companies andProductsowners, enterprise architects,hustleMaster and Product Manager. Your tasks include:

Linking the portfolio to the corporate strategy

The primary role of investment strategy and funding is to support the organization's broader objectives. It also helps providereturnto the company through the context of the portfolio.

Maintaining a portfolio vision

The portfolio vision describes the future state of value streams and solutions. It also explains how they coordinate to achieve portfolio goals and the broader goals of the organization. The LPM function reviews the Portfolio Canvas quarterly and discusses how it can improve its alignment with strategic themes.

Realizing the portfolio vision through Epics

Epics are large initiatives required to achieve the planned future state in the portfolio vision. The LPM function shows and manages the flow of epics through thePortfolio in Kan🇧🇷 Epics can be pretty uncertain. Therefore, it is better to use the SAFe Lean Startup CycleEposImplementation.

Configuring lean budgets and guardrails

Lean Budgets and Safeguards is a set of governance and financial practices that improve development and maintain financial governance. Reduces or eliminates the need for traditional cost accounting andProject-Based.

It also minimizes lag, friction, and overhead. Lean budgets finance value streams. At the same time, guard rails support these budgets by providing governance and spending practices and guidelines.

Building the portfolio flow

PortfolioFlow is the process of managing portfolio epics throughout their lifecycle. Limits the number of significant ongoing business initiatives to align with portfolio capacity.

The LPM function uses the Kanban system to:

  • reduce batch sizes;
  • limit unfinished goods;
  • Size of long-term development queues.

Architectural practices and agile principles are critical to driving portfolio flow. Enterprise architects use engineering methods and adaptive design to facilitate constructive portfolio initiatives. Of course, they translate the company's overall vision and strategy into successful technology plans.

(Video) SAFe Explained in Five Minutes

Agile portfolio operations

portfolioOperations coordinate value streams, support decentralized strategy execution and ensure operational excellence.

value stream coordination

Typically, value streams tend to rely on each other to function. However, coordination allows you to manage all dependencies between value streams. This process gives you certain advantages and capabilities that your competitors cannot understand.

Decentralized execution of the program

Centralized decision-making is a traditional approach that can undermine your Lean-Agile efforts. You can recreate the traditionalprogram managementOffice (PMO) in one AgileprogramAdministrative Office (APMO). The LPM function operates through the APMO and can successfully promote and enforce program execution standards across the portfolio.

The APMO can leverage the expertise, skills and relationships with leaders, managers and othersinterested partsof traditional PMO. In addition, the APMO is responsible for supporting Human Resources with staff development and agile recruitment.

Operational Excellence

Operational excellence is a process focused on continuous improvement of practices, outcomes and efficiencies to optimize performance. LACE - Lean-Agile Center of Excellence - often takes a leadership position to drive operational excellence. LACE can be part of the APMO or an autonomous group.

Lean Governance

Lean governance addresses the management of spending forecasting, spending, measurement and verification, and compliance. APMO/LACE, enterprise architects and business owners must work together to actively ensure lean governance.

Therefore, the lean governance role has the following responsibilities:

Dynamic forecasting and budgeting

The Scaled Agile Framework allows you to create lean budgets. The agile process is a welcome substitute for fixed and long budget cycles and financial commitments. Budgets may be adjusted periodically, typically semi-annually, or as required by significant events.

Portfolio performance measurement

You need to define the necessary metrics for each portfolio to ensure proper execution of the strategy. Here are some of the lean portfolio metrics that can be used to measure a portfolio's progress.

Scaled Agile Framework (SAFe): How to implement Lean Portfolio Management (2)


(Video) Einführung in Scaled Agile Framework (SAFe) Lean Portfolio Management (German)

Permanent compliance coordination

Traditional compliance methods expose organizations to the risk of late discovery and even legal trouble. Lean Audit and Compliance is a more continuous approach that supports the value stream and reduces overhead. Now let's look at how you can implement SAFe Lean Portfolio Management.

Implementing an agile framework at scale

The key to implementing Scaled Agile Framework management lies in defining the LPM role and leveraging the Kanban system.

Define the LPM function

As mentioned above, the LPM role focuses on investment strategy and finance, agile portfolio operations and lean governance. program andPortfolio-Management(PPM) leaders need to look for the right talent in each area.

You need to ensure the APMO understands agile philosophies, LPM events, SAFe core terms, and traditional PMO services:

  • data collection;
  • Analyse;
  • Communicate;

The APMO should work together and share their knowledge.

Establish the Kanban system portfolio

The scaled agile approach advocates the build-measure-learn approach to agile development. Epics are large corporate investments made within a portfolio.

PPM leaders can use Portfolio Kanban to visualize and manage the flow of epics. EveryoneEposgoes through several Kanban states. An epic must be defined by an assigned ownerProduct with minimal viabilityand monitor your progress.

You can see the portfolio kanban system in the image below.

Scaled Agile Framework (SAFe): How to implement Lean Portfolio Management (3)


The first three states - Funnel, Review and Analysis - focus on priorities.

(Video) Using OnePlan to Implement Scaled Agile Framework Portfolio Management

  • funnel: Consists of the ideas ofagile release moves(ARTS). These ideas address all strategic issues that can affect business models. The funnel is only used for brainstorming.

Therefore, no WIP limit is required. Ideas are sent to the respective Kanban portfolio funnels. They can be reviewed and approved based on strategic importance, expected costs and other factors.

  • examination: Epic owners work with stakeholders to define Epic's purpose, business outcomes, and quantitative and qualitative benefits. Here you need to specify WIP limits.
  • Analyze: Business owners, disciplined members of agile teams, and solution architects work together to analyze the epics. Architects identify alternative solutions and check commercial and technical properties. BOs define the minimum viable product, determine cost forecasts and form a leanBusiness case.

In a value-based portfolio kanban system, it is necessary to set WIP limits for each status except funnel. PPM leaders can adapt their traditional portfolio management practices to lean-agile portfolio kanban states.

Set up regular LPM events

LPM events are essential for prioritizing and reviewing all proposed work. All relevant stakeholders can participate in these events. They leverage the portfolio metrics and other actionable insights provided by the APMO.

For the LPM function to work effectively, three important events must occur:

  • Portfolio Sync: Checks the progress of the portfolio towards its goal. This monthly event reviews epics at various stages of the Kanban system, assesses metrics, and resolves bottlenecks.
  • Strategic portfolio review: focuses on realizing and improving the portfolio vision. It ensures the continuous coordination of strategy, budget and implementation. It is a quarterly event to review metrics and update OKRs (Objectives and Key Results), Epics and Investment Guards.
  • common budget: Here, a stakeholder group decides on the allocation of the portfolio budget to epics and solutions. It usually happens twice a year.

How PPM Express can helpYorEUImplement lean portfolio management

PPM Express is a SaaS platform that helps improve portfolio and project visibility by collecting project-related information across portfoliosproject managementsystems likeSimeAzure-DevOps🇧🇷 If you are struggling to move from traditional to agile frameworks, PPM Express is the right tool for you.

Working with the right PPM toolkit is essential to improve PMO impact and reach. Your tool kit should be:

  • Scalable – Suitable for small teams and large numbers of employees
  • Flexible – Adapt to both traditional and agile methods
  • Provide transparency and link - Provides a portfolio overview and detailed information about a specific business project.

PPM Express is a sleek, lightweight portfolio management tool that addresses the immediate needs of teams and business units. The number of users starts from 20 people to hundreds and thousands. This allows you to scaleagile structureAdministration with the following functions:

  • Easy-to-use interface and ease of use that connects all project data, from deadlines and budgets to performance indicators
  • Advanced adaptability for any market segment or business area
  • “Budget Section” for budget and “Launch Section” for recording portfolio launch dates
  • Ability to create short and long term reports
  • Ability to meet the needs of APMOs and executives for portfolio flexibility and transparency
  • Data synchronization feature that allows you to set up permanent synchronization as well as a specific coordination routine
  • Scalable and transparent configurable spreadsheet to review the basic stats of each portfolio and get an overall schedule. The dashboard contains all portfolio details for viewing and editing. It has a "progress bar" and a "status area" with summary details of all portfolios.

Wondering if it's right for your business? Subscribe to our30 days free trialand see for yourself!

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    (Video) Lean Portfolio Management in SAFe: Connecting Strategy to Execution

    Scaled Agile Framework (SAFe): To implement lean portfolio management


    How do you implement Lean portfolio management? ›

    Implementing Lean Portfolio Management
    1. Shift to stable, yet iterative funding by value stream.
    2. Shift to outcome-focused measurement.
    3. Shift to continuous flow and improvement.
    4. Shift to less governance and more autonomy.
    5. Shift to focus on customer value first.

    What is portfolio in Scaled Agile Framework? ›

    A SAFe portfolio aligns strategy to execution via a collection of development value streams. Operating under a common governance model, each value stream provides one or more solutions the enterprise needs to accomplish its business mission.

    What are the three dimensions of Lean portfolio management competency? ›

    The effective operation of the LPM function relies on three significant events: Strategic Portfolio Review. Portfolio Sync. Participatory Budgeting.

    What is key to successfully implementing the Scaled Agile Framework? ›

    Getting Started with Implementing SAFe:

    They must identify Value Streams and Agile Release Trains (ARTs), implement a Lean-Agile portfolio, build quality in, and establish the mechanisms for continuous value delivery and DevOps. And, of course, the culture must evolve as well.

    What are the 4 levels of Scaled Agile Framework? ›

    SAFe Full Configuration consists of four levels: Team, Program, Large Solution and Portfolio. It is constantly being improved, and its latest version is 4.5.

    What are the first 3 steps of the SAFe implementation roadmap? ›

    Steps involved in SAFe Implementation Roadmap
    • Achieving the point of threshold. ...
    • Foster Agents of Lean-Agile Change. ...
    • Train and promote leaders, supervisors, and teams. ...
    • Devise a Masterplan for Lean-Agile Management. ...
    • Determine the business processes and ARTs. ...
    • Construct an implementation strategy.
    29 Jun 2022

    What are the 3 types of portfolio assessment? ›

    There are three different types of portfolios: process, product, and showcase. Although each type is compiled for a different audience, all have a developer, purpose, spe- cific audience, and reflection section (discussed in Chapter 3) for reflecting on the evidence.

    What are the stages in implementing portfolio assessment? ›

    Portfolio assessment has five stages:
    • Collection of evidence of achievement of learning. outcomes.
    • Reflection on learning.
    • Evaluation of evidence.
    • Defense of evidence.
    • Assessment decision.
    5 Jul 2022

    What is the main role of the SAFe portfolio? ›

    The SAFe portfolio aligns business strategy to portfolio execution through a collection of development value streams. Each value stream functions under a shared governance model. It provides one or more solutions for a business domain to fulfill its strategy.

    What is the purpose of Lean portfolio management? ›

    The objectives of Lean Portfolio Management are to: Maximize the throughput of value - Actively manage the backlog of investments to find the highest-value opportunities, and actively manage WIP across groups of teams(team-of-teams) to speed the delivery of value into the marketplace.

    What are three essential collaborations the Lean portfolio management function? ›

    The LPM function provides a set of three key collaborations—strategy and investment funding, Agile portfolio operations, and Lean-Agile governance—that are intended to align leadership around organizational strategy.

    What are the three main criteria used for portfolio analysis? ›

    In the framework that we present, we propose to retain the three most important criteria: value, risk and strategic alignment. Note that these criteria can be changed depending on the choice of project portfolio managers.

    What are the 3 main principles of lean management? ›

    Lean Basics

    The Lean approach to business processes, originally derived from the enormously influential Toyota production system (TPS) , is based on three fundamental principles: delivering value as defined by the customer, eliminating waste, and continuous improvement.

    Which are the 3 main tools in lean management? ›

    Some lean tools may be more appropriate for one business than another. However, Kaizen, 5S, Kanban, Value Stream Mapping, and Focus PDCA are among the most useful lean tools.

    What are the 4 principles of lean? ›

    The 4 Lean Principles
    • Principle 1: Respect for People. This is one principle that I find being violated grossly across most places where I have seen what people would like me to believe is Lean implementation. ...
    • Principle 2: Push or Pull. Okay now. ...
    • Principle 3: Value – Who Defines It? ...
    • Principle 4: Training Employees.
    8 Jun 2022

    What is the most important lean principle? ›

    Pursue Perfection

    Wastes are prevented through the achievement of the first four steps: 1) identifying value, 2) mapping value stream, 3) creating flow, and 4) adopting a pull system. However, the fifth step of pursuing perfection is the most important among them all.

    What is an example of a lean principle? ›

    Elimination of waste

    To that end, one of the core lean manufacturing principles to follow is to make sure that there is as little waste as possible in and created by everything that you do. The more waste you eliminate, the more your business saves with every product it produces and every process carried out.

    What is lean Agile methodology? ›

    Lean agile is an agile methodology that, in basic terms, is quite simple: improve efficiency by eliminating waste. Unlike traditional, waterfall project management, which dictates a set plan laid out by a project manager, lean agile strives to reduce all tasks and activities that don't provide real value.

    What is a key characteristic Lean agile leaders need to have when implementing SAFe? ›

    Lean-Agile leaders must do more than simply support the transformation: they must actively lead the change, participating in and guiding the activities necessary to understand and continuously optimize the flow of value through the enterprise.

    What are the three primary keys to implementing flow in Scaled Agile? ›

    Three primary keys to achieving flow are: Visualize and limit work in process (WIP) Reduce the batch sizes of work items. Manage queue lengths.

    How do you pass a SAFe Scaled Agile exam? ›

    Know the exam content
    1. Step 1: Study SAFe materials. Review the course slides and your notes after the class. ...
    2. Step 2: Target your weaknesses. To make the best use of your time, you need to target not only your perceived weaknesses but your objective weaknesses. ...
    3. Step 3: Engage creatively with the content.
    18 Aug 2020

    How are the 5 Whys used Scaled Agile? ›

    Once a cause is identified, its root cause is explored with the 5 Whys technique. By simply asking 'why' multiple times, the cause of the previous cause is uncovered, and added to the diagram. The process stops once a suitable root cause has been identified and the same process is then applied to the next cause.

    What are 3 frameworks for agile? ›

    Scrum is the most common Agile framework. Others include the Dynamic Systems Development Method (DSDM), Crystal, and Feature-Driven Development (FDD).

    What are the 3 levels of SAFe Agile Framework? ›

    There are three levels of Scaled Agile Framework: Portfolio, Program, and Team. Another level, Large Solution, has been added to the most recent version of SAFe, which is 5.0.

    What is the first step in Lean thinking SAFe? ›

    Thinking Lean with the SAFe House of Lean

    Precisely specify value by product. Identify the value stream for each product. Make value flow without interruptions. Let the customer pull value from the producer.

    What activity is key to successful implementation of SAFe? ›

    SAFe Ceremonies

    Program Increment (PI) Planning is the most important part of the SAFe. It is quoted that if teams are not doing PI Planning, they are not doing SAFe. PI Planning is essentially a cadence-based event in which all the teams of ART get together where the mission and vision is shared.

    How do you start implementing a SAFe? ›

    Here are the first three steps recommended to get underway with SAFe:
    1. 1 – Find a sponsor, the more senior the better. ...
    2. 2 – Find a SAFe specialist consultant. ...
    3. 3 – Pick a date to start with your first agile release train.

    What are the 7 steps of portfolio process? ›

    Processes of Portfolio Management
    1. Step 1 – Identification of objectives. ...
    2. Step 2 – Estimating the capital market. ...
    3. Step 3 – Decisions about asset allocation. ...
    4. Step 4 – Formulating suitable portfolio strategies. ...
    5. Step 5 – Selecting of profitable investment and securities. ...
    6. Step 6 – Implementing portfolio. ...
    7. Step 7 – ...
    8. Step 8 –

    What are the 4 types of portfolio? ›

    4 Common Types of Portfolio
    • Conservative portfolio. This type is also called a defensive portfolio or a capital preservation portfolio. ...
    • Aggressive portfolio. Also known as a capital appreciation portfolio. ...
    • Income portfolio. ...
    • Socially responsible portfolio.
    28 Nov 2022

    What is the example of portfolio assessment? ›

    Portfolio assessments ask students or teachers to collect work products that show growth over a specific period of time. Examples of work products include collections of student essays, artwork, lab reports or reading logs.

    What is the first step in implementing portfolio assessment? ›


    The very first and most important part of organizing portfolio assessment is to decide on the teaching goals. These goals will guide the selection and assessment of students' work for the portfolio.

    What are the 6 stages of implementing portfolio assessment? ›

    Stages in Implementing Portfolio Assessment
    • Identifying teaching goals to assess through portfolio.
    • Introducing the Idea of Portfolio Assessment to your class.
    • Specification of Portfolio Content.
    • Giving clear and detailed guidelines for portfolio presentation.
    • Informing key school officials, parent and other stakeholders.
    16 Feb 2014

    What are the 4 qualities effective of portfolio? ›

    5 Characteristics of a Good Investment Portfolio:
    • Effective Portfolio Diversification. Diversification in investing is considered the simplest approach for designing a good stock portfolio. ...
    • Long Term Viability. ...
    • Liquidity. ...
    • Strong Financials. ...
    • Cost-Efficiency.
    3 Dec 2021

    What are the six steps to effective portfolio management? ›

    Six Best Practices for Effective Portfolio Management
    1. Creating a strategic decision-making framework.
    2. Establishing a value-based culture.
    3. Developing value-based business cases.
    4. Optimizing portfolios to targets.
    5. Adapting to change.
    6. Tracking benefits to continuously improve.

    What are the three essential collaborations necessary for lean portfolio management implementation? ›

    Success with Lean Portfolio Management

    The LPM function provides a set of three key collaborations—strategy and investment funding, Agile portfolio operations, and Lean-Agile governance—that are intended to align leadership around organizational strategy.

    How do you implement lean culture? ›

    Here are some steps you can take to develop and implement a lean culture:
    1. Consider the customer. ...
    2. Develop expectations for behaviors. ...
    3. Foster a learning environment. ...
    4. Create a vision. ...
    5. Train all employees. ...
    6. Monitor performance metrics. ...
    7. Create interdepartmental teams. ...
    8. Lack of transparency.
    2 Nov 2021

    What is SAFe's first Lean Agile principle? ›

    Therefore, SAFe's first Lean-Agile Principle is to take an economic view. It is Principle #1 for a reason. Economics should inform and drive decisions at all levels, from Portfolio to Agile Teams. While many factors can contribute to failed solutions, poor economics is one of the most common.

    What is most important in Lean and Agile? ›

    In both methodologies, the people – the workers – who perform the tasks are more important than the tools they use. When it comes to Agile and Lean, nothing is more important than the final result. This result must create value for the customer and is the only goal of the development process.

    What are the best practice for implementing lean development model? ›

    Best Practices for Lean Software Development
    • Eliminate waste. The key element of practicing Lean is to eliminate that does not add value. Development of unnecessary code or functionality delays the delivery time to customer and also slows down feedback loop. ...
    • Create knowledge. ...
    • Deliver Fast. ...
    • Respect People. ...
    • Optimise the whole.
    10 Sept 2019

    What is a good example of lean thinking? ›

    Lean Thinking Principle 4: Pull

    The goal of a pull-based system is to limit inventory and work-in-process while ensuring there are enough materials and information to optimize the flow of work. Two common examples of this include just-in-time delivery and on-demand production.

    What are the 4 principles of lean systems? ›

    Let me explain each of them for you.
    • Principle 1: Value. One of the first foregone conclusions whenever someone talks about Lean in a company is who defines value. ...
    • Principle 2 : Value Chain or Value Stream. ...
    • Principle 2 : Flow. ...
    • Principle 3 : Pull. ...
    • Principle 4 : Perfection.
    8 Jun 2022

    What lean management means? ›

    The definition of Lean Management

    Lean Management optimises processes by reducing time spent on non-value-added tasks (unnecessary operations or transport, waiting, overproduction, etc.), causes of poor quality and complications.

    What is tool of lean management? ›

    What Are Lean Tools?
    Lean ToolsSummary
    Bottleneck AnalysisStructured way of looking at workflows
    Just-in-Time (JIT)On-demand system of production
    Value Stream MappingAnalyzing and optimizing a process
    Overall Equipment Effectiveness (OEE)Measure of productive time
    3 more rows
    30 Jun 2021

    What is the most important in lean management? ›

    The main purpose of Lean management is creating value to the customer by optimizing resources. Lean management principles aims to create a stable workflow based on actual customer's demand. Continuous improvement is a major part of Lean management, ensuring that every employee is involved in the process of improving.

    What are the 7 lean principles? ›

    The seven Lean principles are:
    • Eliminate waste.
    • Build quality in.
    • Create knowledge.
    • Defer commitment.
    • Deliver fast.
    • Respect people.
    • Optimize the whole.

    What are the four stages of the lean methodology? ›

    • Hypothesize. Lean product development specifies the potential answer to the question or solution to the observed problem up front. ...
    • Plan. During the Plan stage of lean product development, the engineers create designs or change existing designs based on the new hypothesis. ...
    • Test. ...
    • Interpret.

    What is the purpose of the 5 lean principles? ›

    The five Lean principles provide a framework for creating an efficient and effective organization. Lean allows managers to discover inefficiencies in their organization and deliver better value to customers. The principles encourage creating better flow in work processes and developing a continuous improvement culture.


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