Lean Portfolio Management (LPM) is a powerful approach to managing portfolios in a fast-paced business environment. While implementing LPM is important, measuring its success is equally critical. In this post, we'll discuss how to measure the success of LPM and the benefits it brings.
Benefits of LPM
Before diving into measurement, it's important to understand the benefits of LPM. These include:
Improved visibility: LPM provides clear visibility into the work being done across the portfolio. This visibility helps ensure that initiatives are aligned with the organization's strategic goals and enables informed decision-making.
Increased agility: LPM allows organizations to quickly respond to changing customer needs and market demands. This increases agility and enables organizations to stay ahead of the competition.
Better resource allocation: LPM helps organizations make informed decisions about where to allocate resources. This ensures that initiatives are aligned with the organization's strategic goals and increases the likelihood of success.
Enhanced collaboration: LPM promotes collaboration across teams and stakeholders, enabling them to work together to identify and address issues. This collaboration improves overall efficiency and helps ensure success.
Now that we understand the benefits of LPM, let's discuss how to measure its success. Here are some key metrics to consider:
Business outcomes: The ultimate measure of LPM success is the achievement of business outcomes. This could include increased revenue, improved customer satisfaction, or increased market share. By tracking these outcomes, organizations can determine whether LPM is having a positive impact.
Time-to-market: LPM is designed to help organizations move quickly and efficiently. By tracking the time it takes to get products or features to market, organizations can determine whether LPM is improving efficiency and speed.
Work-in-progress (WIP): LPM involves managing work across the portfolio. By tracking the WIP limit, organizations can ensure that they are not overburdening teams and can identify bottlenecks or issues.
Flow efficiency: Flow efficiency measures the time work spends in active development versus waiting in queues. By tracking this metric, organizations can identify areas where they can improve efficiency.
Customer satisfaction: Finally, organizations can measure the success of LPM by tracking customer satisfaction. This could include metrics like Net Promoter Score or customer feedback. By understanding how customers are responding to products and features, organizations can determine whether LPM is delivering value.
In conclusion, measuring the success of LPM is critical to ensuring that it is having a positive impact. By tracking key metrics like business outcomes, time-to-market, work-in-progress, flow efficiency, and customer satisfaction, organizations can determine whether LPM is improving efficiency, driving success, and delivering value to their customers.