SAFe® 6.0 Lean Portfolio Management Certification (LPM)

Various metrics, also known as key performance indicators (KPIs), are used in Lean Portfolio Management (LPM) to measure and track the progress, performance, and success of portfolios, programs, and projects. Here are some examples of the key metrics used in LPM:

• Portfolio performance: The overall performance of the portfolio is measured based on the business outcomes achieved, which could be revenue growth, profitability, customer satisfaction, market share, or other relevant metrics.

• Investment return: This metric measures the return on investments made in a portfolio or in a specific program or project.

• Resource utilization: This metric is about ensuring that resources such as personnel, budgets, and infrastructure are used effectively and efficiently.

• Delivery speed: The speed and frequency of delivering valuable products or services are measured and monitored to ensure the portfolio stays on course.

• Risk management: The identification, evaluation, and monitoring of risks are measured using metrics such as risk scores and trends.

• Customer satisfaction: Customer satisfaction is measured to ensure that the portfolio delivers valuable products and services that meet the needs and expectations of customers.

The concept of LPM was first introduced by Dean Leffingwell in his book "Scaling Software Agility: Best Practices for Large Enterprises" in 2007. Leffingwell is the creator of the Scaled Agile Framework (SAFe), which is now used by many companies and organizations to implement LPM practices and processes.

At its core, LPM is based on the principles of Lean Thinking, which emphasizes the elimination of waste and the creation of value through customer-oriented processes. LPM integrates Lean principles into portfolio management to optimize the value and flow of work within the organization.

No recording and/or dissemination of distance learning is not permitted. All participants must be in the live training as if the seminar were in person.

Anyone can join the course, regardless of experience.

• However, the following suggestions increase the efficiency of the seminar.
• Familiarity with agile concepts and principles
• Experience in the SAFe environment
• Attending a leading SAFe or SAFe PO/PM course

There is a multiple-choice procedure for the certification exam. There are 45 questions in total. At least 32 of these questions must be answered correctly. This corresponds to a percentage of 71%. Please note that some questions have multiple correct answers (2-3). There are no partial points, so all correct answers must be selected.

• Introduction of lean portfolio management (16%)
• Defining strategy and investment finance (16%)
• Establishment of investment funds (16%)
• Managing portfolio flow (16%)
• Execution of portfolio vision through epics (13%)
• Application of agile portfolio operations (13%)
• Application of Lean Governance (10%)

LPM works by creating an agile and flexible structure for portfolio management that enables teams and employees to quickly respond to market changes and customer needs. It emphasizes the importance of clear alignment with the business strategy and creating value for the customer.

Overall, LPM is designed to ensure that portfolios of work are continually improved to increase the agility and effectiveness of the organization. It promotes collaboration and transparency between teams and leaders, enabling businesses to achieve their goals and strategies in a fast-paced and constantly changing environment.

LPM helps companies make their business strategy agile by enabling them to adapt quickly to market changes, work more effectively, and create more value

Traditionally, portfolio management in companies was done in a plan-driven manner. It was based on detailed plans and processes that were often rigid and offered little flexibility. However, agile methods have changed this paradigm by promoting an iterative, incremental, and adaptable approach.

LPM uses agile methods such as Scrum, Kanban, and SAFe (Scaled Agile Framework) to break down portfolio management into smaller, more manageable parts. It also promotes collaboration and transparency between teams involved in implementing projects and programs within the portfolio.

LPM helps companies make their business strategy agile by enabling them to quickly adapt to market changes, work more effectively, and achieve higher value creation.

Lean Portfolio Management (LPM) is most commonly used by companies and organizations that need to manage complex and extensive portfolios of work. This can include small, medium, or large companies in various industries, including financial services, telecommunications, IT, healthcare, automotive, and more.

LPM is particularly useful for companies that want to use agile methods and practices to achieve continuous improvement and higher value creation. It is often used by companies undergoing an agile transformation or already using agile practices in their product development.

LPM is also commonly used in companies operating in a rapidly changing environment where it is important to quickly respond to market changes and customer needs. By using LPM, companies can ensure that their portfolios are agile and flexible and that they maximize value for their customers and their business.

Overall, LPM is widely used in companies and organizations of all sizes and industries and is increasingly being used to increase the agility and flexibility of their portfolios.

Lean Portfolio Management (LPM) has its roots in Lean Thinking, a philosophy of continuous improvement developed by Taiichi Ohno and Shigeo Shingo at Toyota in the 1990s. The principles of Lean Thinking are based on the idea that eliminating waste and creating value through customer-oriented processes increases the effectiveness and efficiency of organizations.

In an organization, the responsibility for Lean Portfolio Management (LPM) lies with the leadership team, including the CEO, COO, CIO, or other top executives. The leadership team is responsible for creating a culture of continuous learning and improvement that enables teams and employees to leverage the agile methods and practices used within the context of LPM.

The portfolio management team, including portfolio managers, program managers, and agile coaches, is responsible for implementing LPM practices and processes. They must ensure that the portfolio is managed in accordance with the company's strategic alignment and agile principles and methods.

Team leaders and employees involved in implementing projects and programs within the portfolio also have responsibility for LPM. They must ensure that they adhere to agile methods and practices to ensure effective collaboration and delivery of valuable products and services.

Overall, LPM is a shared responsibility of the entire organization, requiring collaboration and transparency to ensure that the portfolio aligns with the company's strategic objectives and is continuously improved.

The target audience for Lean Portfolio Management (LPM) is companies that need to manage complex and extensive portfolios of work. This can include small, medium, or large businesses operating in a variety of industries. LPM is particularly useful for companies that want to use agile methods to implement their business strategy to achieve continuous improvement and greater value creation.

The target audience for LPM typically includes executives such as CEOs, COOs, and CIOs as well as portfolio managers, program managers, and agile coaches responsible for leading portfolio and program management initiatives. LPM is also relevant for teams and employees involved in implementing projects and programs within the portfolio.

• Executives and leaders (CIOs, CEOs, CFOs, CTOs and VPs)
• Product manager and solution manager
• Enterprise Architects
• Division Manager
• HR department
• Epic Owner
• SPCs and Enterprise Agile Coaches
• RTEs

LPM aims to ensure that all stakeholders in the portfolio, including teams and executives, have transparent information and can collaborate effectively. This helps to identify and resolve bottlenecks and issues in advance.

The goals of Lean Portfolio Management (LPM) typically include:

• Strategic alignment: LPM aims to ensure that all projects and programs within the portfolio are aligned with the company's strategic goals and objectives. Clear alignment helps to increase the effectiveness and efficiency of the portfolio.

• Increased value: LPM aims to ensure that all projects and programs in the portfolio generate value for the company. This means that all activities must be geared towards meeting customer needs and/or advancing the company.

• Improved decision-making: LPM aims to ensure that decisions regarding the portfolio are made on a solid, data-driven basis. Improved decision-making leads to better use of resources and a higher success rate in implementing projects.

• Better transparency and collaboration: LPM aims to ensure that all stakeholders in the portfolio, including teams and executives, have transparent information and can collaborate effectively. This helps to identify and resolve bottlenecks and issues in advance.

• Continuous improvement: LPM aims to ensure that continuous improvement is embedded in the entire portfolio management process. This means that mistakes are recognized, evaluated, and taken into account in future decisions in order to achieve greater effectiveness and efficiency of the portfolio.

LPM (Lean Portfolio Management) is closely related to Agile. It is a framework that incorporates the principles of Agile methods into portfolio management. It helps companies to implement their strategies in an agile and flexible way and achieve continuous improvement as well as higher value.

LPM typically encompasses the following key practices:

• Strategy and investment funding: LPM starts with identifying the organizational business strategy and allocating funds for investments.

• Agile portfolio operations: LPM uses agile methods to break portfolios of work into smaller, more manageable pieces.

• Lean governance: LPM employs a governance structure that ensures control and flow of work throughout the organization.

• Agile program management: LPM involves using agile methods to execute programs of work and ensure they are aligned with the organizational strategy.

• Continuous improvement: LPM emphasizes continuous improvement through monitoring performance metrics, retrospective evaluations, and introducing changes to enhance the value and flow of work in the organization.

Lean Portfolio Management (LPM) is an organizational approach used to manage large portfolios of work in an agile and lean way. LPM provides a way to align strategic goals and objectives with the execution of work across multiple teams and business units while promoting continuous improvement and value creation.

If you pass the exam, you will receive the "Certified SAFe® Lean Portfolio Management" certificate in PDF form and as a digital badge for your online presence. You will have access to the SAFe® Community Platform for one year. Free membership includes access to the LPM Community Meetup groups and events and access to many resources that can provide day-to-day support for certified SAFe® specialists.