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:
- Retaining assets (because they make money based on a percentage of assets)
- Improving customer experience
- Lowering costs
- 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.
This post is a continuation of our Tips for Agile on our portal.