How can organizations chart their path ahead by implementing LPM?

Introduction

"Lean Portfolio Management enables rapid learning, adaptation, and responsive changes in organizations."

Organizations in this ever-changing world seek the right agile framework that aligns their strategies with the execution of their business goals. And Lean Portfolio Management is all about connecting a company's strategy to execution by allocating the right budget. It involves applying Lean-Agile thinking and portfolio management. This methodology relies on three important events such as,

Strategic portfolio review for budget alignment.

Portfolio sync to meet the business objectives.

Participatory budget to invest in value creation.

Let's discuss these events in detail to understand how the Lean Portfolio Management process can help organizations to continue to evolve in this dynamic work culture. 

Three important events of Lean Portfolio Management

Reviewing the portfolio: This LPM event focuses on determining the next PI Planning in advance. This way the ARTs get to prepare themselves ahead to support changes during value creation. It also helps improve the strategy, implementation process, and budget alignment.

Syncing portfolio: This event helps to understand the progression towards achieving the business goals. Portfolio sync includes reviewing the implementation process, tracking the KPIs, and eliminating impediments.

Participatory budget: Here a group of stakeholders determines the portfolio budget to invest in solutions.

With the refined events mentioned above, Lean Portfolio Management certainly continues to support organizations thriving in this dynamic work. And it will also continue to play a crucial role in assisting organizations to embark a path ahead in the future.

Organizations charting their path ahead with LPM

In the coming years, the key trends are likely to shape the way organizations perceive the importance of producing value. So, businesses creating more responsive applications can face challenges if they do not have a proper development tool. And so, implementing the best framework becomes a must for companies. In that case, with the increasing demand for continuous improvement in the methods, the need for applying the Lean Portfolio Management process also increases.

Following are the crucial steps that LPM covers for an organization to achieve business agility.

Formation of strategic themes.

Identifying and managing the demands by value streams.

Resource management.

Lean governance implementation.

Managing the business outcomes.

Continuous planning.

Lean Portfolio Management Challenges

Lack of knowledge regarding portfolio management.

Managing the portfolio in a similar format.

Resistance to a cultural shift.

Prioritizing portfolio in a lean manner.

Determining KPIs.

Restructure and reorganize teams.

Leadership dedication to encourage adaptation and experimentation.

Benefits

Organizations dealing with multiple projects can benefit from LPM. This framework helps improve value streams to carry on high-impact initiatives. It also helps companies to prioritize their high-value tasks to encourage faster delivery. Lean Portfolio Management also assists in allocating resources by identifying important tasks.

It provides transparency for stakeholders to view the projects and identify bottlenecks to make informed decisions.