Question

Which statement is true about Lean portfolio management and budgeting?

a) Lean portfolio management emphasizes fixed budgets.
b) Budgets are frequently adjusted based on actual performance.
c) Lean portfolio management encourages traditional project-based funding.
d) Budgets are set at the beginning and remain unchanged throughout.

Answer 1

The accurate statement about Lean portfolio management and budgeting is that it involves budgets that are adjusted frequently based on actual performance, supporting dynamic allocation of resources.

Step-by-step explanation:

The true statement about Lean portfolio management and budgeting is that budgets are frequently adjusted based on actual performance. This approach aligns with the lean principle of flexibility and continuous improvement. Instead of setting fixed budgets, Lean portfolio management encourages dynamic budgeting whereby resources are allocated and reallocated as needed to optimize value delivery and respond to changes and feedback. It stands in contrast to traditional project-based funding, which typically involves static budgets set at the beginning of a project.