LPM 5.0

Mar

26

2026

By Clarence Galapon

Core Elements of Lean Governance

LPM 5.0

1) Investment Guardrails Define how money is spent and what boundaries exist. Example: caps on operating expenses, innovation budget limits, or spend thresholds requiring review 2) Participatory Budgeting Leaders and teams collaboratively decide funding priorities. Promote shared accountability for results. 3) Continuous Compliance Embeds audit, risk, and regulatory practices into Agile workflows. Reduces the need for massive post-project audits. 4) Lean Metrics and KPIs Focuses on measuring value delivery, flow efficiency, and outcomes – not activity or output. 5) Decentralized Decision-Making Empowers Value Stream and ART (Agile Release Train) leaders to make day-to-day funding and scope calls. LPM is on…

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Feb

24

2026

By Clarence Galapon

Lean Governance – The Heart of LPM

LPM 5.0

Lean Thinking also shapes Lean Governance: Decisions made by those closest to the work Financial guardrails replace rigid controls Metrics based on value and flow (not cost compliance) Lean Governance is about enabling decisions, not controlling them. LPM is on Amazon

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Feb

08

2026

By Clarence Galapon

Systems Thinking in LPM

LPM 5.0

Systems Thinking underpins all three LPM dimensions: 1) Strategy and Investment Funding – Balances demand, capacity, and strategic themes as one system. 2) Agile Portfolio Operations – Coordinates across Value Streams for smooth flow. 3) Lean Governance – Ensures compliance and measurement reinforce – not restrict – flow. It is also one of SAFe’s 10 Core Principles: “Apply systems thinking” – focus on optimizing the system, not the parts. LPM is on Amazon

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Jan

12

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM 5.0

Strategic Thinking is a Mental Process Strategic Thinking is the way you analyze, anticipate, and connect insights to see the big picture. The purpose is to generate insight and direction. Example: You notice trends, think long-term, and explore future scenarios before deciding what to do. Strategy is an overarching “plan,” a blueprint, or framework – based on Strategic Thinking. Purpose is focus and execution. Example: You decide to focus your business on AI-Augmented tools for small businesses rather than competing in all markets. Strategic Thinking leads to Insight -- seeing with the mind. You use Mental Models like System Thinking…

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Dec

27

2025

By Clarence Galapon

Key Traits of Strategic Thinkers

LPM 5.0

4) Prioritization They focus on what truly matters to long-term success. Another distinguishing trait of strategic thinkers is their mastery of prioritization. Rather than spreading resources thinly across numerous initiatives or being swayed by the most vocal stakeholders, strategic thinkers excel at distinguishing between what's urgent and what's truly important. They systematically evaluate projects and tasks against long-term objectives, customer value, and potential business impact, ensuring that the most critical efforts receive focused attention and resources. This ability to prioritize isn't just about making tough choices—it's about creating clarity amidst complexity. Strategic thinkers use frameworks, data, and dialogue to cut…

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Dec

26

2025

By Clarence Galapon

Key Traits of Strategic Thinkers

LPM 5.0

3) Analytical and Creative They combine logic and imagination to find new paths. Beyond first principles thinking, strategic thinkers often display a rare combination of analytical rigor and creative insight. Analytical strategic thinkers excel at breaking down complex problems, identifying patterns, and using data to inform decisions. They are methodical in evaluating options, considering risks, and anticipating potential outcomes. This enables them to make well-founded recommendations and measure the true impact of strategic choices. On the other hand, creativity empowers strategic thinkers to envision possibilities beyond conventional boundaries. Creative individuals are adept at generating innovative solutions, connecting seemingly unrelated ideas,…

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Dec

23

2025

By Clarence Galapon

A Story on Systems Thinking as a Trait Vis-a-vis LPM

LPM 5.0

In a bustling corner of ABC, a portfolio manager named Raul always saw beyond the surface. Where others saw a tangle of independent projects, Raul recognized a living system, each initiative connected like gears in a vast machine. When a crucial product launch faltered, many scrambled to fix isolated flaws, but Raul took a step back and mapped how teams, technologies, and timelines interwove across the portfolio. By tracing the problem through these connections, he unveiled hidden dependencies and uncovered how a resource bottleneck in one team led to delays across the entire release schedule. Raul’s systems thinking transformed panic…

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Dec

22

2025

By Clarence Galapon

Key Traits of Strategic Thinkers

LPM 5.0

2) Systems Thinking They understand how parts interact within the whole system. In Lean Portfolio Management (LPM), “Systems Thinking” as a trait refers to the ability to view the organization’s portfolio as an interconnected whole rather than a collection of isolated projects. Individuals who practice systems thinking consider how changes in one part of the portfolio can impact other areas, striving to optimize for overall business outcomes instead of local successes. This mindset helps leaders identify dependencies, anticipate unintended consequences, and design solutions that support long-term value delivery across the enterprise. LPM is on Amazon

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Dec

21

2025

By Clarence Galapon

Key Traits of Strategic Thinkers

LPM 5.0

1) Future Oriented They look beyond the present and imagine multiple possible futures. In Lean Portfolio Management (LPM), being “future oriented” means consistently focusing on long-term strategic goals and anticipating changes in the market, technology, or customer needs. This trait encourages leaders and teams to look beyond immediate tasks or legacy processes, fostering a mindset that proactively plans for emerging opportunities and potential disruptions. By adopting a future-oriented perspective, organizations can ensure their portfolios remain adaptable and aligned with evolving business value, rather than simply reacting to present circumstances or maintaining the status quo. LPM is on Amazon

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Dec

20

2025

By Clarence Galapon

A Story on Strategic Thinking Vis-a-vis LPM

LPM 5.0

Imagine a large technology firm, ABC, facing stagnant growth despite a wide array of ongoing projects. The leadership team traditionally relied on legacy prioritization methods, often defaulting to projects with the loudest internal champions rather than those truly aligned with customer value. When the company adopted Lean Portfolio Management (LPM), the initial instinct was to simply map old project categories onto the new framework, but a strategic thinker on the team challenged this approach. Applying first principles thinking, she asked: “What problems are our customers actually trying to solve, and are our investments addressing those needs?” Instead of just tracking…

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Dec

19

2025

By Clarence Galapon

Strategic Thinking

LPM 5.0

Strategic Thinking is having the ability to see the big picture, having creativity by connecting the dots, looking for trends, and anticipating future opportunities or challenges (the long-term view) in order to make better decisions today (the short-term view) that move you closer to long-term goals. Strategic thinking in the context of Lean Portfolio Management (LPM) involves deliberately considering the long-term vision, goals, and external environment when making portfolio decisions. Rather than focusing solely on short-term deliverables or incremental improvements, strategic thinking ensures that portfolio initiatives are aligned with the organization’s overarching mission and can adapt to changing market demands.…

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Dec

17

2025

By Clarence Galapon

Strategy — The Philosophy of Becoming

LPM 5.0

Strategy = The Philosophy of becoming a new and better version of yourself, your team, your ART, your Portfolio It is like a “Blueprint” – like the overarching “Plan” of a house or a building. It is a philosophy of becoming overtime... of achieving long-term goals by making choices about where to focus, how to compete, and how to use resources effectively. It is about choosing what to do – and what not to do – to win over time. For example, a company’s strategy might focus on becoming the market leader in sustainable products. From an LPM (Lean Portfolio Management)…

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Dec

16

2025

By Clarence Galapon

Cynefin Challenge

LPM 5.0

Here is a Challenge for you... on Cynefin. Refer to the image below... it has the Challenge... and the instruction The answer is found in my book, LPM. Now that you know Cynefin and Mental Models -- these are two of the many main parts of the Portfolio Operating System -- what are you going to do with these? That is the greater challenge... accept it. Maius Opus Moveo -- "Accept the greater challenge!" Do something with these. Be better: Operationalize your Portfolio with "Cynefin" + shared "Mental Models". LPM is on Amazon

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Dec

15

2025

By Clarence Galapon

The Cynefin Framework

LPM 5.0

Cynefin is a Welsh word for “habitat” or domain. It is pronounced as Kuh-NEV-in. Cynefin was created by Dave Snowden in 1999 when he was working for IBM. It is used as a device for sense-making / decision-making. This can help folks sense what problem domain they have (or are in) so that they can make better decisions vis-à-vis that domain. These 5 domains are: Simple Complicated Complex Chaos Disorder These are now elaborated, one at a time. 1) Simple. This is when there is an existing recipe or pattern to use. For example: a. In the world of chess,…

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Dec

14

2025

By Clarence Galapon

Mental Models Vis-a-vis LPM

LPM 5.0

What is the relationship between Mental Models and LPM? Mental Models equip LPM leaders with enhanced tools for thinking, improving the quality of strategy, prioritization, and funding decisions. By promoting Systems Thinking and value-focused approaches, they help minimize bias and support the essential principles of Lean Thinking. With Mental Models, LPM leaders, when thinking about things, they do not start from scratch. They have Mental Models, as patterns, to start with. A look-ahead: There is a Meta-Mental Model called Cynefin. It is a Mental Model for Mental Models. Cynefin and Mental Models go together. Cynefin and shared Mental Models are…

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Dec

13

2025

By Clarence Galapon

Other Mental Models — Inversion Thinking

LPM 5.0

Inversion Thinking Instead of asking, “How do we deliver more?” ask, “What causes portfolio bottlenecks or delays – and how do we remove them?” Instead of focusing on, “How do we accelerate decision-making?” ask, “What causes decision-making to slow down – and what steps can we take to streamline the process?” Think of the opposite of things or from another vantage point.   LPM is on Amazon

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Dec

12

2025

By Clarence Galapon

Other Mental Models — Circle of Competence

LPM 5.0

Circle of competence Helps portfolio leaders stay within strategic domains they truly understand when making investment decisions. Example: A leader who understands consumer electronics avoids investing in pharmaceuticals, recognizing that their knowledge and experience are best suited to evaluating opportunities within electronics and related supply chains. Likewise in life... would you buy an engagement ring from a butcher? The reverse is also true: Would a butcher set up a Jewelry store? LPM is on Amazon

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Dec

11

2025

By Clarence Galapon

Other Mental Models — Continuous Improvement (Kaizen)

LPM 5.0

Continuous Improvement (Kaizen) Teams use learning cycles to refine priorities, reduce waste, and improve portfolio flow. Example: During quarterly planning, teams gather feedback from recent releases and use it to reprioritize upcoming features. This ensures they focus on the highest-value items, continuously refining priorities based on customer needs and improving overall portfolio flow. The job is never done. There is always a small improvement somewhere. Kaizen can also be applied in life and society.  Leave people and things better than you found them. Continuous And Never-ending Improvement (CANI) is key to success. This is Kaizen. Kaizen = CANI. Kaizen needs…

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Dec

10

2025

By Clarence Galapon

Other Mental Models — Feedback Loops

LPM 5.0

Feedback Loops Reflect (Hansei). Regular Portfolio Syncs and Inspect and Adapt sessions use feedback to improve flow and outcomes. Feedback loop delays can increase the cost of learning, as slow or infrequent reviews mean teams may continue investing in ineffective solutions before discovering misalignments. If feedback mechanisms require excessive manual effort or have unclear ownership, the resulting inefficiency can drive up operational costs and reduce portfolio agility. Lack of automated feedback on project outcomes can lead to increased rework costs, as issues are only discovered late in the lifecycle instead of being caught and corrected early. Feedback from Sentiment Analysis…

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Dec

09

2025

By Clarence Galapon

Other Mental Models — Opportunity Cost

LPM 5.0

Opportunity Cost Ensures portfolio decisions consider what value might be lost if funds or teams are assigned elsewhere. Examples: Allocating resources to a low-impact project means those same resources—time, budget, or talent—cannot be used for a higher-value initiative, potentially delaying or sacrificing greater returns elsewhere. Choosing to continue funding a legacy system upgrade may come at the expense of investing in new product development that could open new markets or improve customer satisfaction. That $10 you spent on something cannot be spent on another competing thing. There is opportunity cost / loss to what has not been chosen. Consider what…

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Dec

06

2025

By Clarence Galapon

Other Mental Models — First Principles Thinking

LPM 5.0

First Principles Thinking Example: Leaders question old budgeting or approval processes (“why do we do this?”) to create simpler, value focused methods. Other Examples: Instead of assuming current project prioritization methods are optimal, first principles thinking asks: What fundamental value are we aiming to deliver to customers, and how can we design our portfolio to maximize that value with minimal waste? Rather than accepting existing budgeting cycles, a first principles approach challenges: Why do we allocate funds annually, and would continuous or dynamic funding better support rapid adaptation and innovation? A long time ago, Lego went down in popularity. Back…

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Jan

28

2020

By Clarence Galapon

LPM 5.0

LPM 5.0, SWOT Analysis, TOWS Analysis

How do you formulate an enterprise strategy? There are various inputs to the formulation of an enterprise strategy. SAFe has prescribed as what you see on figure-1. Figure-1 My favorites are: 1) Distinctive competence – Strategy naturally leverages distinctive capabilities, the unique advantages -- strengths -- that differentiate this business from others, and provides a competitive edge. 2) Competitive environment – Competitive analysis identifies the most significant competitive threats to the business. How? First, do a SWOT analysis... what are your enterprise's internal Strengths, and Weaknesses; what are the external opportunities and threats? Find those. Then do TOWS analysis -- a…

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Jan

27

2020

By Clarence Galapon

LPM 5.0

LPM 5.0

How do you formulate an enterprise strategy? Think about it... To be continued... October 15, 2022: My new book, "SAFe Is Like ...", is now available on Amazon.  You will get a FREE SIGNED COPY if/when you register, pay, and complete a class by the Lean Agile Guru.

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