Question

Lean Portfolio Management creates strategic alignment (LPM) (core competency)

a) Driving innovation
b) Building autonomous teams
c) Implementing Agile frameworks
d) Aligning strategy and execution

Answer 1

Lean Portfolio Management is part of the Scaled Agile Framework focusing on aligning an organization's strategy with its execution.

Step-by-step explanation:

Lean Portfolio Management (LPM) is a core competency within the Scaled Agile Framework (SAFe) that helps organizations align their strategy and execution by applying lean and systems thinking approaches to strategy and investment funding. The main goal of LPM is to ensure that the organization's strategy is accurately reflected in its portfolio of projects and that its initiatives are being executed effectively. Among the options provided, Lean Portfolio Management is most aligned with aligning strategy and execution.

Lean Portfolio Management (LPM) is indeed a fundamental competency in the Scaled Agile Framework (SAFe), designed to facilitate the alignment of organizational strategy and execution. By integrating lean and systems thinking principles into strategy and investment funding, LPM aims to ensure that the organization's strategic objectives are faithfully represented in its portfolio of projects. The primary goal is to enable effective execution of initiatives in line with the overarching strategy. Among the options provided, Lean Portfolio Management is most aligned with the objective of aligning strategy and execution. Through LPM, organizations can optimize their portfolio, enhance strategic alignment, and foster agile principles at the portfolio level, contributing to the overall success of the organization in delivering value in an efficient and strategic manner.

Answer 2

Lean Portfolio Management focuses on aligning an organization's strategic objectives with execution of projects, ensuring business outcomes are achieved efficiently. It integrates portfolio vision, funding, budgeting, and governance, fostering business agility and adaptability.

Step-by-step explanation:

The core competency of Lean Portfolio Management (LPM) is d) Aligning strategy and execution. This approach ensures that an organization's strategic objectives are aligned with the execution of projects and initiatives. By doing so, LPM supports enterprises in optimizing their portfolio to achieve the desired business outcomes.

LPM is crucial as it bridges the gap between strategy and implementation. It involves various practices such as establishing portfolio vision, funding innovation, agile budgeting, and Lean governance. Organizations that practice LPM are better equipped to adapt to changes in the market, promptly deliver value, and drive business agility.

Aligning strategy and execution allows businesses to focus on value streams that directly contribute to strategic objectives. It facilitates quicker decision-making and ensures that investments are made in the most important projects. Moreover, it empowers teams to innovate within the context of the business goals, thus leading to the creation of products and services that better meet customer demands and market conditions.