What does lean portfolio management do for an organization?
To understand the benefits of this for an organization, firstly, we need to understand the traditional approach. In Traditional Approach: 1. People organized in function silos and temporary project teams. 2. Fund projects and project cost accounting. 3. Big up-front, top-down, annual planning and budgeting. 4. Centralized extensive work intake, project overload. 5. Overly detailed business cases based on speculative ROI. 6. Projects governed by phase gates; waterfall milestones, progress measured by task completion. In Lean-Agile Approach: 1. People organized value streams/ARTs; continuous value flow. 2. Fund value streams, Lean budgets and, guardrails. 3. Value stream budgets adjust dynamically; participatory budgeting. 4. Strategic demand managed by portfolio Kanban: decentralized intake by value streams and ARTs. 5. Lean business cases with MVP, business outcomes hypothesis, agile forecasting, and estimating. 6. Products and services governed by self-managing ARTs, objective m...