SAFe® 6.0 Lean Portfolio Management Certification (LPM)

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) 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.

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

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.