What is one component of a Guardrail in Lean Portfolio Management?
What is one component of a Guardrail in Lean Portfolio Management?
One component of a Guardrail in Lean Portfolio Management (LPM) is the capacity allocation of the Value Stream. Capacity allocation helps in optimizing value and ensuring solution integrity within the portfolio, which is a crucial aspect of managing lean budgets and resources effectively. This aligns with the principles of LPM to ensure that resources are allocated in a way that maximizes value creation and strategic alignment.
Correct answer should be A. Reason being, Budget constraint is one of the guardrails for LPM. The rest of the choices don't talk about LPM.
There are 4 guardrails for LPM mentioned below and only the answer C matches one of them: Guiding investments by horizon Applying capacity allocation to optimize value and solution integrity Approving significant initiatives Continuous Business Owner engagement © Scaled Agile, Inc.
There are 4 components of Guardrail in LPM, Capacity Allocation is one of them. Hence C is the correct answer
B. Determining if business needs meet the Portfolio Threshold One component of a Guardrail in Lean Portfolio Management is determining if business needs meet the Portfolio Threshold. In the context of Lean Portfolio Management (LPM), Guardrails are policy guidelines or criteria that help organizations make decisions regarding the allocation of budgets and resources to various value streams, programs, or initiatives. These Guardrails can include criteria such as ensuring that business needs meet a certain threshold or level of strategic alignment, which helps in making investment decisions and prioritizing work within the portfolio.
https://scaledagileframework.com/lean-budgets/ Lean-Agile Approach:- Applying capacity allocation, Lean Budgets
Capacity Allocation is correct.
four Lean budget guardrails: Guiding investments by horizon Applying capacity allocation to optimize value and solution integrity Approving significant initiatives Continuous Business Owner engagement SOURCE: https://scaledagileframework.com/guardrails/#:~:text=Lean%20Budget%20Guardrails%20describe%20the,funding%20and%20cost%20accounting%20overhead. © Scaled Agile, Inc. Include this copyright notice with the copied content.
The question is confusing however reading again and again, I see correct Answer is C. Four Components of Guardrails are 1) Investment Horizon 2) Capacity Allocation 3) Approve significant Initiatives 4) Business Owner Engagement (refer to Workbook).
It can be only A