How LPM helps make decisions on prioritization and investment
Lean Portfolio Management (LPM) is an approach that can help organizations make better decisions regarding the prioritization and investment of resources. It is a system of management that encourages continuous improvement and the elimination of non-value-added activities. It is used to help organizations focus on the most important initiatives and make decisions about how to allocate resources to achieve desired outcomes.
LPM is based on the principles of Lean, which emphasize the elimination of waste and the optimization of resources. With LPM, organizations can identify the most important initiatives and allocate resources accordingly. It helps organizations identify which initiatives are worth investing in, and which ones should be deferred or abandoned. LPM helps organizations prioritize initiatives by first analyzing the value they will bring to the organization. This analysis is based on a criteria that takes into account factors such as the cost, expected return on investment, and the potential risks. LPM also takes into account the customer’s needs and expectations, as well as the organization’s strategy and business objectives.
Once the priority initiatives have been identified, LPM then focuses on the efficient allocation of resources. This includes the use of metrics to measure performance and track progress, as well as the use of agile methods to ensure the successful execution. This helps organizations make decisions about how to best use their resources to achieve desired outcomes.
LPM is a powerful tool for organizations looking to make better decisions about how to prioritize and invest their resources. It helps organizations focus on the most important initiatives, and make decisions about how to allocate resources to achieve desired outcomes. LPM is designed to be an adaptive system that can respond to business threats and opportunities.
Companies are choosing to implement LPM early during the transformation roadmap
LPM used to be introduced later in the agile journey as it was thought of as a more complex topic. Not anymore – companies are realizing that they need to decide what product development they will be investing in early to eliminate the waste that frequently happens from building the wrong things with scarce capacity. There are several reasons why many companies are implementing Lean Portfolio Management (LPM) early in their agile transformations:
Aligns strategy and execution
LPM helps to align the strategic objectives of the organization with the work being done at the team level. This ensures that teams are working on the most important initiatives and that they are aligned with the overall direction of the organization.
Promotes transparency and visibility
LPM helps to provide transparency and visibility into the work being done at the portfolio level, which is essential for effective decision-making and resource allocation.
Supports continuous improvement
LPM is based on the principles of continuous improvement, which is a key aspect of agile. By using LPM, organizations can continuously assess and optimize their portfolio of work to drive efficiency and effectiveness.
Enables faster delivery
By aligning strategy and execution, LPM helps to eliminate waste and reduce lead times, which enables faster delivery of value to customers.
LPM is an effective way for companies to align strategy and execution, promote transparency and visibility, support continuous improvement, and enable faster delivery, which are all important goals in an agile transformation.
The Difference between SWOT and TOWS analysis
SWOT and TOWS analysis are two important strategic planning methods used by businesses to identify and analyze strengths, weaknesses, opportunities, and threats. Both methods are part of SAFe LPM and can help businesses create effective strategies to maximize strengths, minimize weaknesses, exploit opportunities, and address threats.
The SWOT analysis is a tool used to assess the internal and external factors that can affect a business. The acronym stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are internal factors, while opportunities and threats are external factors. It is a useful tool for understanding a business’s current position and creating strategies to improve upon it.
The TOWS analysis is an extension of the SWOT analysis. The acronym stands for Threats, Opportunities, Weaknesses, and Strengths. TOWS is a useful tool for generating strategies to address external threats and exploit external opportunities. It helps businesses to identify weaknesses that can be used to exploit opportunities and threats that can be effectively addressed.
The main difference between SWOT and TOWS analysis is the order in which the factors are assessed. SWOT is used to assess internal and external factors simultaneously, while TOWS is used to assess external factors first and then internal factors.
Both methods can be used to create effective strategies for businesses, but TOWS is better suited for businesses that face more external threats than internal factors.
6 Ways OKRs Help Align Companies Around Goals and Value
Organizational Key Results (OKRs) are a powerful tool used by businesses to set and measure goals. By setting and tracking OKRs, businesses can ensure that everyone within the organization is working towards the same goals and is aligned with the company’s values.
Here are six ways OKRs can help align your company around goals and values:
1. Increase Focus
OKRs help to focus the entire organization on a few key objectives. By setting and tracking OKRs, everyone in the organization is able to prioritize their efforts and ensure they are working towards the same goals.
2. Improve Communication
OKRs help to ensure that everyone in the organization is on the same page. By communicating objectives and key results, everyone can stay up-to-date on the progress and make sure all efforts are aligned.
3. Boost Motivation
Setting and tracking OKRs helps to motivate employees to achieve the set goals. By providing employees with clear objectives, they are more likely to be motivated to reach the targets.
4. Enhance Accountability
OKRs help to hold everyone accountable for their efforts. By setting and tracking OKRs, everyone in the organization knows what they need to do and when they need to do it.
5. Promote Collaboration
OKRs help to facilitate collaboration among team members. By setting and tracking OKRs, everyone in the organization can work together to reach a common goal.
6. Increase Visibility
OKRs help to increase visibility into the progress of the organization. By tracking OKRs, everyone in the organization can easily see the progress and adjust their efforts accordingly.
By setting and tracking OKRs, businesses can ensure that everyone in the organization is aligned around the same goals and values. OKRs can help to focus the organization, improve communication, boost motivation, enhance accountability, promote collaboration, and increase visibility into the progress. With the help of OKRs, businesses can ensure that everyone is working together to achieve success.
Value Streams – Understanding the Basics
Value stream management is a business process that focuses on identifying, analyzing, and improving the flow of materials, information, and value-added work within an organization. It is a key aspect of lean manufacturing and aims to eliminate waste, increase efficiency, and deliver value to customers in the most effective and efficient manner possible.
There are several key essentials that are important to understand about value stream management:
Value stream mapping
This is the process of creating a visual representation of the flow of materials, information, and value-added work within an organization. It helps to identify areas of waste and inefficiency, and provides a clear picture of the current state of the value stream.
Value stream management is based on the principles of lean manufacturing, which emphasizes the elimination of waste and the continuous improvement of processes. Lean principles include the identification and elimination of non-value-added activities, the reduction of lead times, and the creation of flow in the value stream.
Value stream management is an ongoing process of identifying and eliminating waste and inefficiencies in the value stream. It involves the continuous improvement of processes through the implementation of lean principles and the adoption of new technologies and best practices.
The ultimate goal of value stream management is to deliver value to the customer in the most efficient and effective manner possible. This requires a deep understanding of customer needs and preferences, as well as a focus on meeting and exceeding customer expectations.
Collaboration and cross-functional teams
Value stream management requires the collaboration and coordination of different departments and functions within an organization. It also requires the involvement of key stakeholders such as suppliers and customers to ensure a smooth and efficient flow of materials, information, and value-added work.
In summary, value stream management is a key aspect of lean manufacturing that aims to eliminate waste, increase efficiency, and deliver value to customers. It involves the continuous improvement of processes through the adoption of lean principles, the implementation of new technologies and best practices, and the collaboration and coordination of different departments and functions within an organization. Understanding these essentials is crucial for effectively managing the value stream and achieving long-term success in today’s competitive business environment.