Transitioning to Lean Portfolio Management: Aligning Revenue to Priorities in an Agile Enterprise Setup

In today’s fast-paced business environment, enterprises must be agile and adaptable to stay competitive. However, businesses often need help aligning their revenue with their priorities and efforts. One effective way to tackle this issue is through Lean Portfolio Management (LPM). This methodology marries Lean and Agile practices with portfolio management, enabling businesses to effectively align their strategies with their execution (Leffingwell, 2018).

The three dimensions of LPM © Scaled Agile, Inc.

LPM applies systems thinking to strategy and investment funding, Agile portfolio operations, and governance. This creates a more adaptable and value-focused enterprise, providing the following advantages:

1. Strategy and Investment Funding: LPM empowers organizations to make strategic decisions based on understanding the value, cost, and risk of different initiatives (Poppendieck & Poppendieck, 2003). This approach ensures that the most valuable initiatives are prioritized, leading to a higher return on investment (ROI).
2. Agile Portfolio Operations: By encouraging Agile methodologies in project execution, LPM facilitates a flexible approach that enables teams to deliver increments of value rapidly. This ensures revenue is tied directly to the value delivered (Kniberg &…