LPM Post – Page 4 – Lean Agile Guru

Jan

26

2026

Strategic Leverage in LPM

LPM Post

LPM leaders look for high-leverage decisions -- the few changes that will deliver the most value: Low leverage: Adding more people to slow teams High leverage point: Fixing systemic bottlenecks in value flow Low leverage: Approving more projects. High leverage point: Reduce WIP to improve delivery speed Low leverage: Controlling budgets tightly High leverage: Shifting to Lean guardrails and Participatory Budgeting Low leverage: Measuring output High leverage: Measuring outcomes and value realization LPM leaders don’t just manage – they identify where the system’s “lever” are and pull them wisely. LPM is on Amazon

Jan

25

2026

By Clarence Galapon

The Systems View – Leverage as a Change Multiplier

LPM Post

LPM is built on Systems Thinking, which teaches that: “Not all actions have equal impact – some points in a system are more leveraged than others.” A leverage point is a place in the portfolio system where: A small adjustment (like funding model, governance policy, or prioritization logic) creates a large improvement in speed, or alignment across Value Streams. Example: Shifting from project-based funding to Value Stream funding is a leverage point – it removes bottlenecks, improves alignment, and speeds up delivery across the enterprise. LPM is on Amazon

Jan

24

2026

By Clarence Galapon

Meaning of Leverage in LPM

LPM Post

In LPM, leverage means: Using the smallest, most focused change (a “lever”) at the portfolio level to produce the largest positive impact on value flow. outcomes, or strategy alignment. Think of it as: “Finding where a small shift in policy, funding, or governance can move the whole system” Example: Competence, Learning, Flow, and Outcome are Key Leverage Points (KLPs) in SAFe, in every level (Portfolio, Large solutions, ARTs, Teams). Positive growths in these KLPs – however small these growths are – can move the whole system towards a new and better version of the system. For example – key prompts:…

Jan

23

2026

By Clarence Galapon

Key LPM Mental Models — Leverage

LPM Post

Refer to the image above. It is Game 16 of the 1985 World Chess Championship, featuring Garry Kasparov's masterful deployment of the legendary "Octopus" Knight on d3, a powerful piece that controls eight crucial squares and effectively paralyzes Anatoly Karpov's major pieces, preventing their coordination and enabling Kasparov's decisive victory. A single knight move to a Key Leverage Point (the square on d3) by Kasparov enabled him to control 8 squares and eventually won the game – that’s leverage. This an in example of “Leverage” – the core idea is always using something to gain a greater advantage or result.…

Jan

22

2026

By Clarence Galapon

Exercise

LPM Post

Strategy gone wrong Name a company that is no longer in existence today. If you were the leader of that company, what would you have done differently in terms of strategy? The following companies are examples of companies that no longer exist or have declined: Blockbuster, Kodak, DEC, Wang, Compaq, Gateway, Lotus, Ashton Tate, Borland, WordPerfect, Novell, Sun. This is an exercise on Strategic Thinking. Strategic Thinking is the ability to see the Big Picture, connect the dots from different perspectives, and make decisions that position you (or your organization) for long-term success. LPM is on Amazon

Jan

21

2026

By Clarence Galapon

Top Mental Models for Strategic Thinking

LPM Post

8) Probabilistic Thinking Meaning: Assess outcomes based on likelihood, not certainty. Why it matters: Makes strategy resilient under uncertainty. Example: In portfolio decisions, weigh scenarios and probabilities to avoid “all-in” risks. 9) Feedback Loops Meaning: Systems where outputs become inputs, reinforcing or balancing outcomes. Why it matters: Great strategies constantly learn and adjust through feedback. Example: Customer feedback influencing product design improvements. 10) Compounding Meaning: Small consistent improvements yield exponential returns over time. Why it matters: Encourages patience and long-term thinking in strategy. Example: A culture of continuous improvement (Kaizen) compounds into sustained competitive advantage. LPM is on Amazon

Jan

20

2026

By Clarence Galapon

Top Mental Models for Strategic Thinking

LPM Post

5) Game Theory Meaning: Analyze interactions where other’s decision also affect outcomes. Why it matters: Anticipates competitor or stakeholder reactions to your moves. Example: A company delays product launch knowing a competitor will overextend trying to beat them to market. 6) Inversion Meaning: Instead of asking “How can we succeed?”, ask “What would make us all fail?” and avoid those things. Why it matters: Reduces blind spots and helps build robust strategies. 7) The Pareto Principle (80/20 Rule) Meaning: 80% of results often comes from 20% of efforts. Why it matters: Helps focus limited resources on highest-impact areas. Example: 20%…

Jan

19

2026

By Clarence Galapon

Top Mental Models for Strategic Thinking

LPM Post

3) Second-Order Thinking Meaning: Think beyond the immediate outcome to the next and next-after-next consequences. Why it matters: Prevents short-term wins that cause long-term losses. Example: Lowering prices might boost sales now but destroy profit margins and brand value later. 4) Systems Thinking Meaning: Understand how parts of the system interact and influence one another. Why it matters: Strategic decisions always affect interconnected elements (markets, people, supply chains, etc.). Example: Improving one department’s efficiency may create bottlenecks elsewhere if the whole system isn’t considered. LPM is on Amazon

Jan

18

2026

By Clarence Galapon

Top Mental Models for Strategic Thinking

LPM Post

Here is a list of top Mental Models that sharpen Strategic Thinking, specially useful for leaders, coaches, innovators, and decision-makers. 1) First Principles Thinking Meaning: Break problems down to their most basic truths, then rebuild from there. Why it matters: Helps you avoid copying old patterns and discover truly new strategies. Example: Elon Musk used this to rethink rocket costs from scratch rather than accepting industry norms. 2) Opportunity Cost Meaning: Every choice costs the value of the next best alternative you give up. Why it matters: Forces you to prioritize what truly creates the most value. Example: Choosing to…

Jan

17

2026

By Clarence Galapon

TOWS Analysis

LPM Post

LPM is on Amazon

Jan

16

2026

By Clarence Galapon

SWOT Analysis

LPM Post

LPM is on Amazon

Jan

15

2026

By Clarence Galapon

Strategic Thinking Versus Mental Model

LPM Post

Example in Action In business strategy: 1) You might use SWOT (Strengths, Weaknesses, Opportunities, Threats) to scan environment. 2) Apply Game Theory to anticipate competitors’ move 3) Apply Opportunity Cost to prioritize investments Together, these Mental Models form the foundation of Strategic Thinking. LPM is on Amazon

Jan

14

2026

By Clarence Galapon

Strategic Thinking Versus Mental Model

LPM Post

Strategic Thinking is not a single Mental Model, but rather a way of using multiple Mental Models together to make better long-term decisions. Mental Model is a framework or lens for understanding how the world works. Example: “First Principles Thinking” (breaking problems down to fundamentals). Strategic Thinking is the ability to apply various Mental Models and insights to set direction, anticipate change, and align actions toward a goal. Example: Using opportunity cost, systems thinking, and second-order thinking together to choose a long-term business strategy. Strategic Thinkers use Mental Models as tools – much like a carpenter uses hammers and saws…

Jan

13

2026

By Clarence Galapon

Connection of Strategy to Strategic Thinking

LPM Post

Strategy leads to Action Plan. You convert those insights into specific choices: where to play, how to win, and what to prioritize. Strategic Execution leads to Results You align people, processes, and resources around that chosen direction. Strategic Thinking = Brainstorming the route on the map. Strategy = Choosing the best route to reach your destination... based on insights from Strategic Thinking. Tactics = Driving... step-by-step along that route... which is aligned with the Strategy. LPM is on Amazon

Jan

11

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

10) Reflect and Adapt Why: Strategy is a living process, not a one-time overarching “plan”. In the heart of ABC, Olivia, an experienced program lead, made it a habit to reflect and adapt after every major initiative. Instead of rushing to the next task, she gathered her team for open retrospectives, candidly discussing what worked, what failed, and—most importantly—why. This routine not only surfaced hidden challenges but also fueled a culture of continuous learning. Over time, Olivia’s dedication to reflection and adaptation enabled her team to respond swiftly to market shifts, improve collaboration, and stay one step ahead of the…

Jan

10

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

9) Balance Short-Term and Long-Term Why: Strategy fails when you only chase quick results. At ABC, Alex, a senior strategist, faced pressure to deliver quick wins for quarterly targets while also planning transformative projects for the company’s future. Instead of favoring one over the other, Alex developed the habit of balancing short-term results with long-term vision. During a critical project review, he championed launching a fast, customer-requested feature to boost immediate satisfaction, but also ensured that the team invested in scalable infrastructure for future innovation. By consciously weighing immediate impact against enduring outcomes, Alex helped ABC achieve consistent growth while…

Jan

09

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

8) Use Mental Models Why: Mental Models sharpen how you interpret information. Across the hall, Luis, a senior strategist, made it his habit to apply mental models to every major decision. Rather than relying solely on past experience, he drew from frameworks like inversion, second-order thinking, and the Pareto Principle to dissect complex challenges. For example, when faced with a market expansion dilemma, Luis used inversion by first asking how the plan could fail, then systematically addressing those risks. His disciplined use of diverse models allowed him to uncover blind spots, anticipate outcomes, and communicate decisions clearly—earning a reputation for…

Jan

08

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

7) Encourage Diverse Perspectives Why: Strategic blind spots shrink when different viewpoints are included. At ABC, a breakthrough came when portfolio manager Sofia made it her habit to encourage diverse perspectives during strategic discussions. Rather than relying solely on the views of senior leaders, she invited team members from different departments, backgrounds, and levels of experience to share their insights on upcoming initiatives. This practice revealed hidden challenges and uncovered innovative solutions that would have otherwise gone unnoticed. By fostering an environment where all voices were valued, Sofia helped the company make more balanced decisions, leading to creative strategies and…

Jan

07

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

6) Focus on what Truly Moves the Needle Why: You cannot do everything – focus is power In the heart of ABC’s busy operations, Alexis, a rising leader, developed the habit of focusing only on what truly moved the needle. While others were drawn into endless meetings and side projects, Alexis made it a point to identify the few actions that directly impacted customer value and the company’s strategic goals. By consistently prioritizing these high-impact initiatives—and diplomatically saying no to distractions—Alexis drove significant results, earning both the trust of leadership and the admiration of peers. This focus became the cornerstone…

Jan

06

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

5) Anticipate Second-Order Effects Why: Short-term wins can cause long-term losses At ABC, portfolio analyst Jordan developed a reputation for thinking beyond immediate impacts. When the company planned a major software update, most focused on delivering new features quickly. However, Jordan habitually anticipated second-order effects, asking, “How will this change alter user behavior, and what challenges might arise down the road?” By raising these questions, Jordan helped the team see that a quicker interface could boost user engagement but might also increase support requests. His foresight led ABC to preemptively train support staff and refine documentation, ensuring a smooth rollout.…

Jan

05

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

4) Think in Systems Why: Every decision affects other parts of the system. Consider Clare, a new portfolio leader at ABC, who made it her mission to "think in systems" every day. Rather than reacting to surface-level setbacks, Clare routinely mapped how changes in one project might impact others, spotting feedback loops and hidden dependencies. This habit helped her anticipate downstream effects—like how a resource reallocation in customer support could slow a product launch—and empowered her to propose solutions that benefited the entire organization. Over time, Clare’s systems thinking approach became second nature, enabling her to steer ABC toward cohesive,…

Jan

04

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

3) Connect the dots Why: Strategic Thinkers see patterns others miss. At ABC, strategic thinkers weren’t just defined by their analytical skills—they excelled at “connecting the dots.” Take John, a product lead who saw patterns where others saw isolated problems. When customer feedback surfaced unexpected frustrations, John traced connections between feature delays, cross-team communication gaps, and shifting market demands. By routinely mapping these links, he uncovered root causes and revealed opportunities for collaboration. His habit of synthesizing insights from diverse sources made ABC’s strategies sharper and more adaptive, proving that connecting the dots isn’t just a skill—it’s a powerful habit…

Jan

03

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

2) Ask Better Questions -- Part 2 Over time, this simple habit uncovered hidden risks, revealed untapped opportunities, and encouraged her colleagues to challenge groupthink. One pivotal moment came during a quarterly strategy review. While the team debated minor tweaks to their product roadmap, Alexa asked, “If we started from scratch today, what would we do differently for our customers?” This question shifted the conversation, helping the team identify bold new directions and avoid incremental thinking. By consistently modeling the habit of asking better questions, Alexa inspired a culture where curiosity and critical inquiry were valued as much as expertise,…

Jan

02

2026

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

2) Ask Better Questions Why: Strategy starts with curiosity, not certainty. Asking better questions became the hallmark of ABC's newest strategic thinker, Alexa. Early in her career, Alexa noticed that meetings often revolved around finding answers quickly, not questioning the premises behind decisions. Determined to change this pattern, she made a habit of pausing before reacting, instead asking, “What are we missing?” or “Is there a different way to frame this problem?” LPM is on Amazon

Dec

30

2025

By Clarence Galapon

Top Habits to Develop Strategic Thinking

LPM Post

1) Step Back Regularly Why: Strategic insight comes from distance, not “busy”-ness One quarter, Olivia’s habit paid off when she noticed that several projects had quietly drifted away from the company’s core strategy due to shifting market trends. By pausing to reflect, she recognized the subtle misalignment before it became costly, enabling ABC to course-correct swiftly. Her example inspired others to adopt this reflective practice, embedding a culture where strategic thinkers didn’t just act—they paused, recalibrated, and ensured every step propelled ABC toward enduring success. Over time, stepping back regularly became a hallmark of the company’s strategic agility, empowering teams…

Dec

29

2025

By Clarence Galapon

Key Traits of Strategic Thinkers

LPM Post

In essence Strategic Thinking = mindset that discovers direction Strategy = the roadmap built from that mindset Execution = the journey that follows the map. LPM is on Amazon

Dec

28

2025

By Clarence Galapon

Key Traits of Strategic Thinkers

LPM Post

5) Decision Awareness They weigh trade-offs and consider second-order effects. Decision awareness is a defining trait of strategic thinkers, setting them apart in complex organizational environments. Rather than making choices on autopilot or following established norms, strategic thinkers maintain a conscious understanding of the decisions they face—recognizing when a choice is being made, what options exist, and the potential impact each decision might have. This heightened awareness helps them pause, reflect, and evaluate alternatives, ensuring that every action aligns with broader objectives and delivers meaningful value. In practice, decision awareness means constantly asking questions like, “Is this the right moment…

Dec

18

2025

By Clarence Galapon

A Story on Strategy Vis-a-Vis LPM

LPM Post

Once upon a time, a global technology firm faced mounting competition and market disruption. The executive team knew they had to rethink their strategy, but struggled to translate vision into execution. Enter Lean Portfolio Management (LPM): instead of making annual bets and sticking to rigid plans, they embraced LPM to continuously align strategy with execution. Leaders held regular strategy review sessions, ensuring that every investment directly supported the evolving strategic goals. As a result, teams became more empowered, pivoting quickly when market signals changed. Through strategy-driven LPM, the company transformed its portfolio into a living engine of innovation, delivering rapid…

Dec

08

2025

By Clarence Galapon

Other Mental Models — The Pareto Principle (80/20 Rule)

LPM Post

The Pareto Principle (80/20 Rule) Helps focus resources on the 20% of initiatives that deliver 80% of business value. Applying the Pareto Principle in Lean Portfolio Management (LPM), organizations often find that roughly 20% of their projects deliver 80% of the total value to the business. By identifying and focusing on these high-impact initiatives, leaders can maximize returns with less effort and resource allocation. LPM is on Amazon

Dec

07

2025

By Clarence Galapon

Other Mental Models — Second-Order Thinking

LPM Post

Second-Order Thinking Before funding or prioritizing initiatives, leaders ask: “What happens next? What are the downstream effects?” Other example: When adjusting KPIs to better reflect desired outcomes, second-order thinking considers how these changes may influence team behaviors, reporting practices, and the ability to compare historical performance data over time. Second-order thinking is what Chess Players employ as they think through their next potential move. Chess players ask: “What happens next? What are the downstream effects?” They are not alone. Most of us think this way at work and at home. LPM leaders must think this way too... must be great…