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Key Agile Beliefs

Key Agile Beliefs

People and Interactions over Processes and Tools Working Solutions over documentation Customer collaboration over contracts Responding to change over following a plan These deeply influence how LPM operates at the portfolio level. LPM is on Amazon
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What Does Agile Thinking Mean to LPM?

What Does Agile Thinking Mean to LPM?

Agile Thinking shapes the Culture and Behavior behind Lean Portfolio Management (LPM).   Agile Thinking is a mindset – not just a process.   It is about adaptability, collaboration, continuous value delivery in a world of uncertainty.   Agile Thinking = a way of thinking and acting that embraces change, feedback, and customer focus.   LPM is on Amazon
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Summary

Summary

Aspect: Value. Lean thinking Principle: Deliver customer-centric outcomes. LPM Application: Portfolio strategy and OKRs. Aspect: Flow. LT Principle: Eliminate bottlenecks. LPM Application: Portfolio Kanban. Aspect: Pull. LT Principle: Work on demand, not schedule. LPM Application: Demand-based funding. Aspect: Transparency: LT Principle: Visualize work. LPM Application: Portfolio Dashboards. Aspect: Learning. LP Principle: Continuous Improvement. LPM Application: Inspect and Adapt at Portfolio level. LPM is on Amazon
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Example in Practice

Example in Practice

Leadership defines Value Streams Instead of funding dozens of projects, the company funds that Value Stream directly Teams pull work based on strategy and customer need Portfolio Kanban ensures work flows continuously – not batch by fiscal year Metrics focus on business outcomes, not project milestones This is Lean Thinking at Portfolio scale – continuous, transparent, and adaptive. LPM is on Amazon
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Lean Thinking Transforms Portfolio Behavior

Lean Thinking Transforms Portfolio Behavior

Instead of focusing on how much work people are doing, LPM focuses on how much value the system is delivering. Traditional: “How can we get more work done?” LPM: “How can we deliver more value with less friction?” Lean Thinking helps LPM: Shorten feedback loops Empower decentralized decision-making Enable adaptive funding and governance Balance innovation, operations, and investment LPM is on Amazon
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The 5 Lean Thinking Principles in LPM

The 5 Lean Thinking Principles in LPM

1) Specify Value – Define portfolio strategy and measurable business outcome. Result: Focus on what truly matters. 2) Map the Value Stream – Identify Value Streams instead of projects. Focus: Visualize how value flows across the enterprise. 3) Create Flow – Enable smooth work progression through ARTs and Portfolio Kanban. Result: Reduce delays, handoffs, and overloading. 4) Establish Pull – Fund and prioritize work based on demand and capacity. Result: Prevent overcommitment and resource waste. 5) Pursue Perfection – Continuously improve governance, budgeting, and metrics. Result: Foster learning and adaptability. LPM is on Amazon
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The Shift

The Shift

Traditional Portfolio Management: Funds projects annually. LPM: Funds Value Stream continuously Traditional: Decisions made top-down LPM: Decisions made collaboratively (e.g., Participatory Budgeting) Traditional: Success = on-time, on budget. LPM: Success = value delivered, outcomes achieved. Traditional: Work starts based on approvals. LPM: Work flows based on capacity and customer value. Traditional: Governance by control LPM: Governance by trust, transparency, and feedback. LPM replaces bureaucracy with Lean flow – strategy flows to execution through value, not approvals. LPM is on Amazon
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What Does Lean Thinking Mean to LPM?

What Does Lean Thinking Mean to LPM?

Lean Thinking is the core philosophy behind Lean Portfolio Management.   Focuses on: Maximizing value for the customer Minimizing waste Improving flow and continuous improvement and learning   In Lean, the goal isn’t just to do things faster – it’s to continuously deliver the right value with the least friction.   LPM Applies Lean Thinking to Portfolio-Level Decisions   LPM takes those same principles and applies them to strategy, funding, and governance work across the enterprise.   LPM is on Amazon
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An Expanded Answer on Efficiency and Speed in a Technology Setting — Continued

An Expanded Answer on Efficiency and Speed in a Technology Setting — Continued

3) Handoffs (Transportation) Minimize / get rid of handoffs – keep key people and resources (materials) within reach -- without handoffs to other teams. Be resourceful! 4) Too many steps (extra processing / re-learning) Simplify your steps... like re-learning. re-learning is a waste. 5) Too much stuff lying around (In-process inventory/Partially done work) Start finishing! Stop starting! There is no value in anything until it is “done”. 6) People doing work wrong (defects) Double check as you go – build in quality. 7) Not using people’s ideas (not utilizing talent) Let others help. 8) Task Switching (Motion) Maximize your “Time…
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An Expanded Answer on Efficiency and Speed in a Technology Setting

An Expanded Answer on Efficiency and Speed in a Technology Setting

An expanded answer on Efficiency and Speed in a technology setting We have to look at the process (the steps to creating value – A/K/A “Value Stream” in SAFe ) ... and then identify where the inefficiencies slowdowns are at within that process. There are eight main kinds of wastes that, if/when fixed, leads to efficiency and speed you need. 1) Too much stuff (Over production / Extra Features) In technology, these are extra features created unnecessarily. 2) Waiting (Delays) Customers waiting for their “Valuable” stuff to get attended to and done. Remove wasteful steps. This will reduce lead time…
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An Expanded Answer on Efficiency

An Expanded Answer on Efficiency

2) Waiting Your customers have to stand around forever because you are still cutting lemons. Result: Bored, cranky customers. 3) Moving around too much (motion) You keep running back and forth from the fridge to the table to the sugar. Result: You get tired and slow. 4) Too many steps (extra processing) You stir the lemonade 20 times instead of 2 – but does not taste better. No value-add! Result: You waste energy for no good reason. To be continued... LPM is on Amazon
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An Expanded Answer on Efficiency

An Expanded Answer on Efficiency

An expanded answer on Efficiency using a fun example. Imagine you have a “Lemonade Stand” business. Your challenge: You want to make the best lemonade, but you do not want to waste lemons, sugar, or cups. You do not want your customers to wait too long to get their lemonade. How to achieve efficiency and speed? We have to look at the process (the steps to creating value – A/K/A “Value Stream” in SAFe ) ... and then identify where the wastage is at within that process. There are 8 main kinds of wastes: 1) Too much stuff (over production)…
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A Simple Answer on Efficiency

A Simple Answer on Efficiency

A simple answer on Efficiency We have to look at the process (the steps to creating value – A/K/A “Value Stream” in SAFe ) ... and then identify where the wastage is at within that process. There are eight main kinds of wastes: 1) Too much stuff (over production) 2) Waiting 3) Moving around too much (motion) 4) Too many steps (extra processing) 5) Too much stuff lying around (inventory) 6) People doing work wrong (defects) 7) Not using people’s ideas (unused talent) 8) Transportation – unnecessary movement of materials, products, or information LPM is on Amazon
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Lean Thinking

Lean Thinking

Think in terms of efficiency – elimination of waste – and speed. Let me illustrate this concept of zero waste and speed using an amazingly simple and common business called “Refreshing Lemonade “– a lemonade stand ran by kids. This example is so simple and easy to grasp that the first episode of “The Apprentice “featured a “Lemonade Stand” challenge... it is about marketing and salesmanship challenge .Let’s use the same “Lemonade Stand” challenge; however, it is about making lemonades in the most efficient way and fast. The challenge: How would you make lemonade in a very efficient way and…
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Lean Thinking — Question

Lean Thinking — Question

Question: Have you been in a situation wherein you waited for a long time to receive something of value to you? Like for example, long queue at Starbucks, McDonald’s, etc.? How about congested roads? Even when you arrive at the airport from international travel, the queue, sometimes, at the immigration gate, the queue line there is like that of Disneyland’s “S-like” long queue line. Long queues make customers bored and cranky. The customer is the most important part of the production line! They must not endure unnecessary wait for their Value! How to remedy long queue and other flow-related problems?…
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Key Insight

Key Insight

Systems Thinking in LPM means seeing the portfolio as a living system – every funding, strategy. or governance decision should improve the overall flow of value not just one part of it. Systems Thinking gives LPM the ability to manage portfolios as ecosystem of value – aligning strategy, funding, and delivery as one adaptive system. LPM is on Amazon
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Tools and Techniques That Apply Systems Thinking in LPM

Tools and Techniques That Apply Systems Thinking in LPM

Tool/Practice Tool/Practice: Portfolio Kanban. Purpose: Visualize flow of epics across the system. Tool/Practice: Value Stream Mapping. Purpose: Reveals delays, bottlenecks, and handoffs. Tool/Practice: Participatory Budgeting. Purpose: Balances decisions across the system. Tool/Practice: Flow metrics. Purpose: Measures system health, not team output. Tool/Practice: Inspect and Adapt Workshop. Purpose: Learn from system feedback and evolve governance. LPM is on Amazon
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How Systems Thinking Changes Portfolio Behavior

How Systems Thinking Changes Portfolio Behavior

Using Contrast Without Systems Thinking: Focus on individual projects. With Systems Thinking: Focus on Value Streams Without Systems Thinking: Funding based on requests. With Systems Thinking: Funding based on end-to-end flow. Without Systems Thinking: Governance by control. With Systems Thinking: Governance by feedback and transparency. Without Systems Thinking: Siloed metrics With Systems Thinking: Shared portfolio KPIs Without Systems Thinking: Blame people With Systems Thinking: Improve the system LPM is on Amazon  
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Example in Practice

Example in Practice

Situation: Portfolio wants to cut cost. Local view: Reduce the number of developers per team. System view: That slows down delivery → delays revenue → increases costs downstream. Systems Thinking helps LPM see this ripple effect and instead find a better lever – like reducing WIP or improving flow efficiency. LPM leaders don’t just fix symptoms – they fix the system that causes them. LPM is on Amazon
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Systems Thinking Core Principles (Applied to LPM)

Systems Thinking Core Principles (Applied to LPM)

Principles Principle: Optimize the whole. Application in LPM: Fund and manage Value Streams, not siloed projects. Result: End-to-end flow of value. Principle: Understand cause and effect. Application in LPM: Use metrics to see how policy changes affect outcome. Result: Better, evidence-based improvement. Principle: Recognize feedback loops. Application in LPM: Use PI reviews and portfolio Kanban to learn and adapt. Result: Continuous portfolio improvement. Principle: Balance stability and change. Application in LPM: Maintain Lean guardrails while adapting budgets. Result: Agility with control. Principle: See interdependencies. Application in LPM: Coordinate strategy, finance, and execution as one system. Result: Alignment from Vision to…
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Why Systems Thinking Matters to LPM

Why Systems Thinking Matters to LPM

Traditional portfolio management often creates fragmented optimization – each team, department, or project maximizes its own metrics (speed, cost, utilization), but the overall system slows down. LPM uses Systems Thinking to: Align strategy, funding, and delivery as one connected flow. Identify bottlenecks that block value across the enterprise. Prevent local optimizations that reduce overall value. Systems Thinking helps LPM leaders “see the forest, not just the trees.” LPM is on Amazon
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Meaning of Systems Thinking in LPM

Meaning of Systems Thinking in LPM

Systems Thinking in LPM means seeing the whole enterprise as an interconnected system – not as separate projects, departments, or budgets – and making the portfolio decisions that optimize the entire flow of value, not local parts. It is about understanding that: Every portfolio decision affects multiple parts of the organization. Optimizing one area in isolation (e.g., cost-cutting in one Values Stream) can hurt the system as a whole. True success = global optimization, not local efficiency. LPM is on Amazon
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Game Theory — Bottom Line

Game Theory — Bottom Line

Bottom line: In Lean Portfolio Management (LPM), Game Theory helps leaders design systems, incentives, and decisions where everyone’s best move is to collaborate, not compete – creating more value for the whole enterprise LPM is on Amazon
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Game Theory Examples

Game Theory Examples

Examples: 1) Budget and Investment decisions a) Each portfolio or product team wants funding b) Game Theory helps leaders design fair rules and incentives so teams collaborate instead of compete destructively. Example: shifting from annual “winner-takes-all” budgeting to continuous flow funding encourages cooperation – a positive-sum game. 2) Prioritization of work a) When teams share capacity (people, systems, budgets). one team’s decision affects others. b) Game Theory helps find win-win trade-offs where all parts of of the portfolio gain value rather than fighting for local wins. 3) Supplier or Partner Negotiations a) LPM leaders use Game Theory to help build…
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Game Theory

Game Theory

Game Theory is about making smart choices when other’s choices matter. It helps people or groups decide what to do when: 1) They depend on each other 2) They have limited resources 3) They each want to “win” or do well In LPM. leaders, teams, and business units are all trying to create value, use budgets wisely, and reach strategic goals. But – just like players in a game – they have to coordinate and balance their decisions. That’s where Game Theory Thinking helps. LPM is on Amazon    
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Key Insight

Key Insight

Leverage in LPM is about finding and pulling the right levers – not doing more work, but making smarter, smaller changes that have system-wide impact. In LPM, leverage means identifying where minimal effort – in policy, funding, or governance – creates maximum improvement in enterprise agility and value flow. LPM is on Amazon
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Leverage and Continuous Improvement

Leverage and Continuous Improvement

Leverage and Continuous Improvement LPM continuously looks for new leverage points using inspect and adapt workshops, metrics, and retrospectives. Common leverage areas: Aligning strategy and execution Improving portfolio flow metrics Balancing capacity across Value Streams Evolving governance models Each improvement acts like a “lever” that amplifies value. LPM is on Amazon
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Example in Practice

Example in Practice

Situation: Teams are Agile, but portfolio decisions are slow. Portfolio analyzes the bottleneck: all funding approvals go through a yearly budget committee. The Leverage point? Move to Lean Budgeting with Participatory decision-making. Result: Value Streams get funded continuously Teams deliver faster Strategy adjusts dynamically A single policy change produced a portfolio-wide improvement – that’s LPM leverage. LPM is on Amazon
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Types of Leverage in LPM

Types of Leverage in LPM

Types and Examples Financial Leverage – Use funding strategy to unlock agility. Example: Switch from project to Value Stream funding Governance Leverage – Use lightweight policies to speed decisions. Example: Implement Lean guardrails instead of heavy approvals. Strategic Leverage – Focus on few strategic themes that drive 80% of outcomes. Example: Prioritize portfolio epics aligned to those themes. Culture Leverage – Foster Lean Agile mindset across leadership. Example: Model servant leadership to empower teams. Flow Leverage – Remove bottlenecks in portfolio Kanban. Example: Limit WIP and reduce delays between steps. LPM is on Amazon
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