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Why Your Business Needs Lean Portfolio Management to Succeed in the Modern Age

Lean Portfolio Management (LPM) has become an increasingly popular practice in organizations of all sizes and industries. In this blog post, we'll explore the reasons why organizations are adopting LPM and why it has become an essential practice for staying competitive in today's fast-paced business environment.

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1. Alignment of Strategy and Execution

One of the primary reasons organizations adopt LPM is to align their business strategy with their execution efforts. By establishing a portfolio of projects and initiatives, organizations can ensure that they are investing in the right initiatives that support their overall business goals. LPM also helps organizations to prioritize and allocate resources effectively, ensuring that teams are working on the initiatives that have the most significant impact on the business.

2. Faster Time to Market

With the increasing pace of business, organizations must be able to move quickly to deliver products and services to their customers. LPM enables organizations to prioritize and execute the most critical initiatives, ensuring that they can deliver value to their customers more quickly. By implementing LPM, organizations can reduce the time it takes to bring new products and services to market, giving them a competitive edge.

3. Better Visibility and Control

LPM provides organizations with better visibility and control over their portfolio of initiatives. With LPM, organizations can track the progress of each initiative, identify roadblocks and risks, and make data-driven decisions to optimize their portfolio. This level of visibility and control enables organizations to make informed decisions quickly and with confidence, ensuring that they are investing in the right initiatives that drive business growth.

4. Improved Collaboration and Communication

LPM fosters collaboration and communication across teams and departments, enabling better coordination and alignment of efforts. With LPM, teams can work together more effectively, sharing information and insights to achieve shared goals. This collaboration also helps to break down silos, improving communication and decision-making across the organization.

5. Reduced Costs and Improved ROI

By implementing LPM, organizations can optimize their portfolio of initiatives, ensuring that they are investing in the most impactful initiatives that support their business goals. This optimization can result in reduced costs and improved return on investment (ROI), as organizations are investing in initiatives that have the most significant impact on the business.

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Success stories of companies that have implemented Lean Portfolio Management

  1. Ericsson: Ericsson, a global telecommunications company, implemented Lean Portfolio Management to achieve a more agile and flexible approach to project management. By embracing SAFe and implementing LPM, Ericsson was able to streamline their processes, reduce time-to-market, and increase customer satisfaction.

  2. Fidelity Investments: Fidelity Investments, a multinational financial services corporation, implemented LPM to manage their large and complex portfolio of projects. By adopting a Lean-Agile mindset and implementing SAFe, Fidelity was able to improve collaboration, reduce waste, and achieve faster delivery times.

  3. Intel: a leading semiconductor manufacturer, implemented LPM to help manage their vast portfolio of products and projects. By adopting SAFe and implementing LPM, Intel was able to improve transparency, collaboration, and decision-making, leading to better alignment with business objectives and increased value delivery.

  4. T-Mobile: T-Mobile, a major US telecommunications provider, implemented LPM to improve their ability to respond quickly to market changes and customer needs. By adopting SAFe and implementing LPM, T-Mobile was able to increase agility, reduce time-to-market, and improve customer satisfaction.

These success stories demonstrate how Lean Portfolio Management can help organizations of various sizes and industries achieve their strategic objectives by providing a flexible and agile approach to portfolio management.

In conclusion, Lean Portfolio Management is a critical practice for organizations that want to stay competitive in today's fast-paced business environment. By aligning their strategy and execution efforts, improving visibility and control, fostering collaboration and communication, and optimizing their portfolio of initiatives, organizations can achieve their business goals more quickly and effectively.

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