Traditional Project Portfolio Management (PPM) has been the go-to approach for managing organizational portfolios for decades. However, as the business landscape continues to evolve rapidly, PPM has shown to be inadequate in meeting the needs of modern businesses. In this blog post, we will explore why PPM is no longer effective, and how Lean Portfolio Management (LPM) with the Scaled Agile Framework (SAFe) provides a better alternative.
Why Traditional PPM is Failing
Traditional PPM is built on a rigid, linear model that requires detailed planning and forecasting upfront, leading to a slow and inflexible decision-making process. The approach also lacks customer-centricity, which means it is not responsive to customer needs and market changes. Additionally, PPM tends to silo departments, leading to misaligned priorities, delays, and increased costs.
The Solution
Lean Portfolio Management with SAFe: SAFe is a methodology that enables organizations to scale agile practices across the entire enterprise. LPM, a key component of SAFe, focuses on continuously delivering value through an organization's portfolio of initiatives. By incorporating Agile Release Trains (ARTs) and Portfolio Kanban systems, LPM enables organizations to be more responsive to market changes and customer needs, while increasing transparency and collaboration across departments.
Benefits of LPM with SAFe
LPM with SAFe offers numerous benefits, including:
Improved portfolio transparency: LPM provides visibility into the status of initiatives, including progress, dependencies, and potential blockers, enabling managers to make informed decisions.
Increased agility: By breaking down silos and creating cross-functional teams, LPM enables organizations to respond quickly to market changes and customer needs.
Faster time-to-market: LPM with SAFe emphasizes continuous delivery, enabling organizations to release products and services more quickly, reducing time-to-market.
Increased customer satisfaction: LPM with SAFe ensures that the focus is on delivering value to customers, resulting in increased customer satisfaction and loyalty.
Conclusion
In conclusion, as the business landscape continues to evolve rapidly, traditional PPM has become outdated and ineffective. By adopting LPM with SAFe, organizations can increase agility, improve portfolio transparency, reduce time-to-market, and increase customer satisfaction. As such, LPM with SAFe is the future of portfolio management, enabling organizations to remain competitive and responsive in an ever-changing business environment.
If you're interested in learning more about Lean Portfolio Management and how it can help your organization achieve business agility, I highly recommend checking out my book on the topic. In "Mastering the Art of Lean Portfolio Management with SAFe", I provide a comprehensive overview of the principles, practices, and tools of LPM, with a focus on how to implement LPM using the Scaled Agile Framework (SAFe).
Whether you're a manager or executive looking to improve your organization's portfolio management practices or an Agile practitioner looking to expand your knowledge of portfolio management, this book has something for you. Get your copy today and start your journey towards improved business agility!