The first step in Lean Portfolio Management

August 8, 2018 — Posted by Al Shalloway

Lean portfolio management is an important aspect of enterprise Agility. Organizations always have more options than capacity. One therefore needs to be able to understand what is the most important value to deliver. But what is value to one company may be waste to another. The first step in Lean Portfolio Management therefore, is determining what’s of value to the organization.

This, of course, is typically oriented around value to customers. or example, a financial company might focus on:

  1. Retaining assets (because they make money based on a percentage of assets)
  2. Improving customer experience
  3. Lowering costs
  4. Compliance
  5. Lowering risk

Without a clear definition of what a company is going to invest in, and each components relative importance, measuring the value of a business increment is meaningless. Many companies actually have great clarity on this on the business side but haven’t taken the effort to make it clear on technology. That’s a must. If it’s not clear on the business side, that’s the first step in Lean Portfolio Management. 

See Create Clarity on What Represents Value for the Business and Its Customers. 

This post is a continuation of our Tips for Agile on our portal.

Al Shalloway
CEO, Net Objectives

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About the author | Al Shalloway

Al Shalloway is the founder and CEO of Net Objectives. With 45 years of experience, Al is an industry thought leader in Lean, Kanban, product portfolio management, Scrum and agile design. He helps companies transition to Lean and Agile methods enterprise-wide as well teaches courses in these areas.



        

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