Final answer:
Transitioning to Lean Portfolio Management leads to decentralized decision-making and value-based funding, which prioritizes value delivery over rigid project structures.
Step-by-step explanation:
When moving to a Lean Portfolio Management capability, centralized control becomes decentralized decision-making, and project-based funding and control become value-based funding. This transition emphasizes the distribution of decision-making power and a focus on delivering value rather than strictly adhering to a set of predefined projects. Decentralized decision-making can lead to more responsive and adaptable organizations where decisions are made closer to the work being performed, often resulting in innovative solutions and better alignment with customer needs and market changes.
Utilizing value-based funding means that funds are allocated based on the value they bring to the organization or its customers, rather than being tied to specific, rigid projects. This approach allows for greater flexibility, with funding being adjusted to support the most valuable initiatives as they emerge. It's an approach that fosters agile decision-making, promotes a deeper understanding of costs and benefits, and aligns investments more closely with organizational goals and customer value.