LEAN PORTFOLIO MANAGEMENT Created by Abhi Chaturvedi & Ken Martin

Lean Portfolio Management involves applying a lean agile mindset and a modernized set of practices based on lean principles to the conventional functions of portfolio management
CURRENT EXTENSIVE PLANNING UPFRONT PPM DONE BY DELUDED EXECS USE OF SILVER LINED SPREADSHEETS PMO DRIVEN WATERFALL PROJECTS NO MORE OPERATING IN A VACUUM
STATE OF PPM To drive expected results on back end Execs assume they are PPM visionaries Finger in the costs for perceived value Focus on delivery vs. customer value Customer needs no longer predictable
If you imagine a traditional planning approach as a waterfall, you realize that once the plan is set in motion, it will literally require defying gravity to make a change
LONG CYCLE TIMES LACK OF SYNCHRONISATION KEY NEEDLES DON’T MOVE BUDGETS DIFFICULT TO CHANGE MISALIGNMENT OF PRIORITIES
Long cycle times on large initiatives Lack of delivery & sync across teams Work done & key needles don’t move Budgets hard to change on new data With service and business owners
CURRENT PPM
PAIN POINTS LACK OF ADHERENCE TO GOVERNANCE DIFFERENT LEVELS OF MATURITY SOLUTION NOT ELABORATED AT PORTFOLIO LAYER
Prioritization across portfolio layer leads to inability by business to plan & cost Unlike maturity levels - portfolio level This activity ensures coverage of hypothesis, architecture and design landscape
MISALIGNMENT AND LACK OF COLLABORATION LACK OF FEEDBACK LOOP & COMMS At DELAY IN IDENTIFICATION OF STAKEHOLDERS IN CLARIFYING REQUIREMENTS
Misalignment and lack of collaboration between different service teams portfolio, program and team level Due to lack of involvement of stakeholders & in implementation stages
USE AUTONOMOUS TEAMS IN IMPROVE DEFINITION OF CUSTOMER VALUE CONTINUOUS VALUE FLOW MODEL GOALS IN TARGETED BUSINESS OUTCOMES
ORGANISATION When improved, comms improves & clears path for best ideas Value is put in customers' hands Business more likely to move needle on KPI’s
Autonomous teams rid of hand-offs & delays
REMEDIATIONS
FOR PPM PAIN ASSESS OUTPUTS - SHORT FEEDBACK LOOPS SET OBJECTIVE BASED GOALS AS DESIRED BUSINESS OUTCOMES APPLY LEAN START-UP MINDSET AGILE BUDGETING ALIGNED TO STRATEGY
POINTS Adjust short-term plans on what they see now Incremental outputs be evaluated to desired business outcome “Think in Bets” for low cost risk tests Empower teams to build plans that align to
strategic goals, the new distributed liability
IMPLEMENT PORTFOLIO KANBAN ENGAGE DESIGN & DELIVERY LEADS IN LEAN ASSESSMENT GAIN BUY IN FROM STAKEHOLDERS model speeds up the overall delivery of value
Bring structure to analysis and decision making For portfolio epics to gain solution insight and more accuracy Ensure stakeholders attend events
CUSTOMER FOCUSED: Combining Lean Portfolio Management with agile development practices offers a path to improving business agility
WHAT IS LEAN
1. STRATEGY 2. PRIORITISE AND REFINE 3. CREATE AND RELEASE AN MVP 4. LET YOUR CUSTOMERS USE IT
PORTFOLIO
Does it match our vision? Which is more valuable. This one? That one? We don’t want to create the entire kitchen sink! But seriously – let them use it
MANAGEMENT
(LPM)? 5. GATHER CUSTOMER FEEDBACK 6. IMPLEMENT IMPROVEMENTS 7. BRILLIANT IDEA 9. EXPERIMENT
The Good, the Bad, The Ugly Use feedback to implement improvements To create something of value Build, measure, learn. Rinse and repeat

HOW TO STRATEGY AND INVESTMENT FUNDING

IMPLEMENT 1) Alignment between strategic imperatives portfolio 2) Establish portfolio spending & investment 3) Development & ongoing evolution of the IT and strategic annual plan
LEAN LEAN GOVERNANCE AGILE PORTFOLIO OPERATIONS
GOVERNANCE 1) Measure lean portfolio performance 2) Ensure standards compliance 3) Use establish governance 1) Provide guidance on CI 2) Establish & define business processes 3) Allocate & optimise resources
PORTFOLIO MAKES MOST SIGNIFICANT BUSINESS INITIATIVES VISIBLE STRUCTURE TO ANALYSIS AND DECISION MAKING WORK IN PROCESS (WIP)
KANBAN It makes the most significant business initiatives visible Brings structure to analysis & decision-making for hypothesis WIP limits ensure that the teams responsibly analyse hypothesis
SYSTEM
BENEFITS PREVENTS UNREALISTIC EXPECTATIONS DRIVES COLLABORATION SUPPORTS ECONOMIC DECISION MAKING
Portfolio Kanban system prevents unrealistic expectations Drives collaboration among the key stakeholders Allows transparent & quantitative basis for economic decision-making

KANBAN LPM 1. THE FUNNEL 2. REVIEWING 3. ANALYSING 4. PORTFOLIO BACKLOG 5. IMPLEMENTING 6. DONE
PROCESS Used to capture new big ideas Idea needs more time & effort Idea more analysis & investment Approved by LP Management. Hypothesis for further analysis Assessed outcome is done