Lean Portfolio Management Trainer Guide (5.1.2)

Lean Portfolio
Management
Aligning Strategy with Execution
5.1.2
Trainer Guide
PROVIDED BY
© Scaled Agile, Inc.

Table of Contents
Privacy Notice��3
License Agreement��3
Teaching SAFe Courses Remotely��3
Quick Tips for Remote-enabled Delivery of SAFe Courses��4
Courseware Kit Overview��4
Preparation for Teaching and Facilitating��5
Remote Delivery Instructor SPC/SPCT Roles��6
SAFe Glossary��7
Knowledge Checks��8
Timing��8
Remote Class Timing��9
Course Introduction.............................................................................11
Lesson 1: Introducing Lean Portfolio Management.........................18
Lesson 2: Establishing Portfolio Strategy and Vision.......................62
Lesson 3: Realizing Portfolio Vision through Epics....................... 100
Lesson 4: Establishing Investment Funding................................... 133
Lesson 5: Managing Portfolio Flow................................................. 174
Lesson 6: Applying Agile Portfolio Operations............................. 204
Lesson 7: Applying Lean Governance............................................ 228
Lesson 8: Practicing SAFe................................................................. 263
Optional Workshop: Getting Started
with Lean Portfolio Management.................................................... 278
Trainer Guide 2 © Scaled Agile, Inc.

Privacy Notice
Your name, company, and email address will be shared with Scaled Agile, Inc. for course fulfillment,
including testing and certification. Your information will be used in accordance with the Scaled Agile
privacy policy available at https://www.scaledagile.com/privacy-policy/.
License Agreement
• The license agreement that governs this copyrighted material strictly limits its
reproduction and use.
• You may only distribute the workbook to an attendee for whom you purchased a license.
• You may provide one printed copy of the workbook per attendee.
• You must instruct all attendees that the workbook is for personal use only and may not be
reproduced or distributed by them.
• The material may not be modified or used to create derivative works, and all copyrighted notices
and trademarks must remain unchanged.
• The Trainer Guide is for Certified SAFe Trainer usage only. Do not distribute, modify, or create
derivative works, and all copyright notices and trademarks must remain unchanged.
Teaching SAFe Courses Remotely
Video link: http://bit.ly/TeachingSAFeRemotely

Quick Tips for Remote-enabled Delivery of SAFe Courses
NOTE: Pay special attention to the roster section of the guidance. You need to pre-roster students at
least 7 days prior to the first day of class. Watch this video to review general remote course
delivery guidance.
Video link: https://bit.ly/Video-QuickTipsRemoteDelivery
Courseware Kit Overview

After you pass your validation exam, accept the license agreement and purchase the course, you will
be able to download the Courseware Kit. It contains all the artifacts you will need to deliver the course.
This is an overview of what’s included in the Courseware Kit.
Getting Started Folder

This folder contains the Release Notes document which outlines changes made in the current version
of the course and a copy of this Trainer Guide document.
Templates Handouts Folder

This folder contains handouts and templates you will need to schedule, prepare and facilitate the
course in remote or in-person setting. This folder contains two very important document templates:
The Remote Classroom Document Template and Remote Group Document template.
Remote Classroom Document Template is recommended for use as your virtual whiteboard. It could
serve as a collection of remote classroom norms, activity notes, links, and more. This document can
be customized and updated. You can also share this document on the video conference during the
course. After the course, you can export and share the final document with learners as a PDF. If you
customize the file in Google or Microsoft Live/Teams and plan to share the link with learners, set the
document permissions to allow all facilitators to edit and all learners to be able to comment.

Remote Group Document Template - It is recommended that you customize and prepare this
document for the group members to use during some of the group activities. You should customize
one Remote Group Document Template per group and share it with the Group Facilitators and group
members. It should be managed by the Group Facilitator during the course group activities. This is best
utilized in a web-based tool to allow for sharing (Google, Microsoft Live/Teams) with the permissions to
set to edit for all users.
PPT Folder
This folder contains the PowerPoint slides you will use during the facilitation of the course. Per your
license agreement, these slides cannot be changed, deleted, or modified.
Workbook Folder
This folder contains the Student Workbook file and printing instructions. If you use a printing vendor,
simply provide them the contents of this folder, and they will have everything they need.
A digital workbook is available to all students on their Learning Plan. Remember to upload the roster
at least a week prior the course beginning. This will enable student access to their Learning Plan and
digital workbook for download. Step-by-step instructions for uploading a course roster are available in
the SAFe Community FAQs, linked below:
☁ Roster Upload FAQ: http://bit.ly/rosterUpload
NOTE: The Courseware Kit may contain additional folders and files supporting the course delivery.
Preparation for Teaching and Facilitating

Teaching or facilitating a SAFe course requires thorough preparation to provide an interactive,
engaging, and effective learning experience for the participants in the class. SAFe courses are
designed to be experiential with activities that help learners connect what they’re learning to their work
context. A common pattern you will find in our courseware is that you will present content and then ask
learners to complete activities that require them to think critically about the content and how it applies
to their work and lives. This active learning helps make content memorable, so learners can apply their
new knowledge, skills, and mindset in their work once they’ve completed the course.
Active Learning
Active learning is an approach in which all learners are engaged in the learning process. This means
that learners are encouraged to engage with the material, to participate in the activities, and to
collaborate with each other. Active learning stands in contrast to traditional models in which learners
are passive recipients of knowledge from an expert. Don’t expect learners in class to listen and
memorize. Instead, help them demonstrate their understanding, and ask them how they would apply
the new knowledge.

Tips for Teaching
1. Establish a comfortable learning environment.
2. Use working agreements to help manage the learning environment.
3. Encourage collaboration and teamwork during the activities. Use readouts at the end of activities
to ensure learners stay engaged. Knowing there will be a readout can keep teams from losing
focus on the activity.
4. Keep the focus of your facilitation on the specific learning objectives and seek to understand
the students’ context to help them apply the new knowledge, skills, and mindset to their
own environment.
5. Control distractions and side conversations as well as more intricate consulting type questions
using a parking lot or question and answer session.
6. Use personal experiences as examples liberally.
7. Adhere to the time boxes for each lesson.
Teaching and facilitating in a remote environment requires some additional considerations and
preparations. This guidance is intended to provide you with the tools and tips you need to succeed in
the role of a remote instructor.
Review this guidance and the recommendations, as well as all of the course materials and assets as you
prepare to teach remotely.
Remote Delivery Instructor SPC/SPCT Roles

It is recommended that you have at least two SPCs to facilitate a remote course. In addition, you can
assign learners into groups and designate a Group Facilitator before the first day of class.
• Instructor: Main instructor/trainer who facilitates the course content and activities and monitors
group breakout rooms during activities.
• Co-Instructor: Secondary instructor/trainer who assists with course instruction, updates the
Remote Classroom Document, monitors the classroom chat, and monitors group breakout rooms
during activities.
• Tech support: Ensure that someone is available on standby to support the instructors and learners
with technical issues.
• Group facilitator: Designated group facilitator for all activities conducted in breakout rooms, they
maintain the virtual whiteboard or the Remote Group Document.
• Learners: Rostered students in the course who are eligible to take the certification exam.

Remote Delivery Instructor Tools
Consider what technology tools you will use for your remote classroom. Give yourself ample time to
practice using the tools.
• Web conferencing software (Zoom, Cisco Webex, Adobe Connect)—check with your enterprise for
license availability.
• Web-based documentation tool (Google Docs, Microsoft Office Live/Teams)
• Web-based whiteboard tool (SAFe Collaborate, MURAL, Miro)
• Web-based polling/assessment/feedback tool (Kahoot, Poll Everywhere, Google Forms)
• Digital, web-based timer: http://bit.ly/digitalTimer
• Tools and resources for remote workers: https://www.collaborationsuperpowers.com/tools/
Remote Video Instruction

Video instruction to demonstrate ideas and concepts are powerful learning tools. To share videos
effectively in a remote learning environment, there are two options:
OPTION 1
1. Utilize the functionality to share your audio through screen sharing and play the video for
learners in real time.
2. Audibly cue the end of the video to bring the learners back to the group with a question
about the video.
OPTION 2
1. Learners access the link for the video through their Digital Workbook.
◦ Note that video links are also accessible in the Remote Classroom Document Template if you
need to send the link to a learner.
2. With 10 seconds remaining in the video, write a question in the chat to draw the learners back into
the whole group.
3. After the timebox for the video has ended, audibly cue learners to finish the video by repeating
the question and some possible answers that have come through on chat.
4. Write your own question or use the example provided in the remote trainer guidance.
SAFe Glossary
A glossary of SAFe terms is available in several languages. More translations are added frequently.
Access the SAFe Glossary in English or any other available language.
📖 SAFe Glossary: https://www.scaledagileframework.com/glossary/

Knowledge Checks
A knowledge check is a way to assess how the learners achieving the learning objectives. It is
recommended that you engage your learners at the end of each lesson with some knowledge-check
questions. You can write your own based on your class in real-time or you can use some of these
developed by SPCTs in the field. Open-ended questions are the best types of questions for student
engagement and for the instructor to provide feedback. Follow up each knowledge-check question
with feedback to facilitate a discussion with the learners and increase understanding.
Options for how to administer knowledge-check questions:

• Put the questions in a web-based polling/assessment/feedback tool (Kahoot, Poll
Everywhere, Google Forms)
• Share your screen, ask the question, and for students to respond with a letter option answer on
paper in a physical classroom or a letter option answer in the chat for remote.
☁ Access to Knowledge Checks:

https://rise.articulate.com/share/RxL-aHclZDDvvoDFdbylf-dFQdx_sIEA#/
Timing
Timing for the course greatly depends on the number of attendees and their experience levels.
The timings below are based on a class of approximately 30 attendees with a wide range of
experience. If your class is small, you will have more time for discussion and interactions. The days were
based on a daily schedule of 8:00 A.M. – 5:00 P.M. with a 30-minute lunch and four 10-minute breaks
(approximately 7 hours and 50 minutes of instruction per day)
Day 1 Approximate Time
01 Introducing Lean Portfolio Management 1h 30min
02 Establishing Portfolio Strategy and Vision 2h
03 Realizing Portfolio Vision Through Epics 2h
04 Establishing Investment Funding 1h 30min
Total Approximate Time 7h

05 Managing Portfolio Flow 1h 30min
06 Applying Agile Portfolio Operations 1h 30min
07 Applying Lean Governance 2h 30min
08 Practicing SAFe 30min
Getting Started with Lean Portfolio Management Workshop 7h
Remote Class Timing

Consider altering the schedule for remote delivery. Below is a recommendation for how to break up
the lesson delivery. It is also recommended that you allocate time—about 30 minutes—with the learners
to review the web conferencing software, course expectations, and requirements, as well as provide
an opportunity to answer questions about the remote course environment. This can be done as a
pre-course webinar* or to kick off the first day of the course. See the recommended agenda below for
introducing a remote enabled course.
Pre-Course Webinar (optional) Approximate Time
Remote-enabled course introduction 0h 30min 0h 30min
Total Approximate Time 30min
01 Introducing Lean Portfolio Management 1h 30min
02 Establishing Portfolio Strategy and Vision 2h
Total Approximate Time 3h 30min

03 Realizing Portfolio Vision Through Epics 2h
04 Establishing Investment Funding 1h 30min
05 Managing Portfolio Flow 1h 30min
06 Applying Agile Portfolio Operations 1h 30min
07 Applying Lean Governance 2h 30min
08 Practicing SAFe 30min
Total Approximate Time 4h 30min
Getting Started with Lean Portfolio Management Workshop 7
*Sample agenda for introducing a remote enabled course

• Welcome and introductions (3 – 5 minutes)
• Conference tool overview (5 minutes)
◦ Polling
◦ Raise hands
◦ Whole group chat
• Icebreaker activity using the web conferencing tools (5 minutes)
• Course expectations and schedule (5 minutes)
• Groups (2 minutes)
◦ Roles and expectations
• Brief overview of SAFe Community and Learning Plan (2 minutes)
◦ How to access learner workbook
◦ How to access pre-work/articles
• Support resources (2 minutes)
• Questions (3 – 5 minutes)

Lean Portfolio
Management
Aligning Strategy with Execution
using the Scaled Agile Framework®
SAFe® Course - Attending this course gives students access to the
SAFe Lean Portfolio Manager exam and related preparation materials.
5.1.2
Trainer Guidance:

Logistics
► Course meeting times
► Breaks
► Facilities
► Technology requirements
► Working agreements
1-2
Trainer Guidance:
It is often helpful to provide general times of breaks in case students need a set time
for making calls or engaging with work.
It’s important to start and end on time, so manage timeboxes well.
Working agreements can help ensure a suitable learning environment is created.
Some suggestions:
• Minimize use of devices (laptops, phones, etc.) during class
• Be present and engaged
• Foster an open, honest, safe, and judgment-free environment

Prepare Share
Discussion: Introductions 5
min
2
min
► Step 1: Introduce yourself to your

break-out group and share
something you know about SAFe
and the role of Lean Portfolio
Management (LPM)
► Step 2: Be prepared to share with

the class:
– What is your current role?

– What are your expectations for
this class?
1-3
Trainer Guidance:
Create opportunities for the learners to connect to each other and share their
expectations from the course.

Lean Portfolio Management is a two-part course
Lean Portfolio Getting Started

Management with LPM
One Day Workshop
Two Day Course
Part One: Two-Day Course Part Two: One-Day Optional Workshop

Two-day, interactive course that teaches One-day, optional workshop available
the practical tools and techniques to help Enterprise teams get started
necessary to adopt LPM. with LPM in their organization.
https://bit.ly/Communtiy-AdoptLPM
. 1-4
Trainer Guidance:
The one-day optional workshop, “Getting Started with LPM,” is available on the
Community Platform in Adopt LPM.
Adopt LPM landing page link: https://bit.ly/Communtiy-AdoptLPM

Course Outline
► Lesson 1: Introducing Lean ► Lesson 5: Managing Portfolio Flow

Portfolio Management
► Lesson 6: Applying Agile Portfolio
► Lesson 2: Establishing Portfolio Operations
Strategy and Vision
► Lesson 7: Applying Lean
► Lesson 3: Realizing Portfolio Governance
Vision through Epics
► Lesson 8: Practicing SAFe
► Lesson 4: Establishing Investment
Funding
1-5
Trainer Guidance:
This class can generate very interesting and lengthy conversations among attendees.
In order to draw a balanced pace for this class:

• Prepare a visible chart listing the lessons, to share the progress with the class as
each lesson concludes.
• Alternatively, preprint each lesson title on a separate empty page and post the
pages on the wall on a simple Kanban: To Do – In Process – Done.

Duration
Activity: Agility and SAFe Experience 5

min
► Step 1: Identify where you are on the Agility

and SAFe Experience Matrix in terms of:
– Experience with Agile

– Existing certification or courses taken
► Step 2: Identify where your Enterprise is in
terms of the SAFe Implementation Roadmap
1-6
Trainer Guidance:
Refer to the Remote Classroom Document Template slides for this activity. Instruction
and guidance are provided in the slides with the Agility and SAFe Experience Matrix
and the SAFe Implementation Roadmap.
Purpose: To ask learners to assess their readiness to take this course, see their
progress in relation to the Implementation Roadmap, and share with others in the
class.

Duration
Activity: Access the Class Page 5

min
► Step 1: Navigate to the Class Page

on the SAFe Community Platform
► Step 2: Select Learn, then My

Classes, then Lean Portfolio
Management Workbook (5.1)
► Step 3: Click on the link to Download

the Lean Portfolio Management (5.1) COMMUNITY
workbook (PDF)
Visit the Lean Portfolio Management
Class Page to download the workbook
https://bit.ly/CP‐LPM
1-7
© Scaled Agile. Inc.
Trainer Guidance:
Purpose: To ensure learners know how to access the SAFe Community Platform
Trainer Instructions: Follow the instructions on the slide. If learners are unable to login or
encounter other issues when logging in, help them contact support during the next break.
Link: https://bit.ly/CP-LPM

Lesson 1
Introducing Lean Portfolio Management
SAFe® Course - Attending this course gives learners access

to the SAFe® Lean Portfolio Manager exam and related
preparation materials.
Trainer Guidance:

Lesson Topics
1.1 Why LPM?
1.2 The Lean-Agile Mindset

and SAFe Principles
1.3 The problem with

project-based accounting
1.4 Benefits of organizing

around value
1.5 SAFe portfolio structure
1.6 Shift to LPM
1-9
Trainer Guidance:
The Scaled Agile Framework applies the power of Agile, along with the contemporary
knowledge found in systems thinking and Lean product development to help
businesses address the significant challenges of developing and delivering
enterprise-class technology-based solutions with high quality and fast time-to-market.
It is an online, freely-revealed knowledge base of proven success patterns for
achieving business agility.

Learning objectives
At the end of this lesson, you should be able to:
► Explain the need for Lean Portfolio Management
► Describe the Lean-Agile Mindset and SAFe Principles
► Recognize the problem of project cost accounting
► Describe the key benefits of organizing around value
► Define a SAFe portfolio structure
1-10
Trainer Guidance:

1.1 Why LPM?
1-11
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Why Lean Portfolio Management?
► The LPM function governs each SAFe

portfolio
Strategy
& Investment
Funding
► It provides three essential Enterprise
collaborations to realize its Executives
responsibilities: Business
Owners
Enterprise
Architect
1. Strategy and investment funding

Agile
Lean Portfolio
2. Agile portfolio operations

Governance Operations
3. Lean governance
APMO
Enterprise Business RTE and

Owners APMO/LACE SM CoP
Architect
1-12
Trainer Guidance:
The Lean Portfolio Management competency aligns strategy and execution by

applying Lean- and systems-thinking approaches to strategy and investment funding,
Agile portfolio operations, and governance. The LPM function needs to provide clarity
on direction and purpose of work for the organization so that we can link strategy to
execution. Without clarity there is no decentralization of decision making. LPM carries
out its responsibilities through three essential collaborations: strategy and investment
funding, Agile portfolio operations, and Lean governance. The people who fulfill the
LPM function have various titles and roles and are often distributed throughout the
organization’s hierarchy.

LPM is one of the seven core competencies of the Lean Enterprise
► The LPM competency aligns strategy with execution

by applying Lean and systems thinking approaches
to strategy and investment funding, Agile portfolio
operations, and governance.
► It’s one of the seven core competencies of the Lean

Enterprise, each of which is essential to achieving
Business Agility.
► Each core competency is supported by a specific

assessment, which enables the enterprise to assess
their proficiency.
1-13
Trainer Guidance:
Describe that LPM is one of the seven core competencies. Frame the competency, as
needed, relative to the other competencies. Note that LPM is most closely associated
with Agile Product Delivery and Lean-Agile Leadership.

SAFe portfolio elements
1-14
Trainer Guidance:
This slide orients learners to where the portfolio is located on the Big Picture.

1.2 The Lean-Agile Mindset and SAFe Principles
1-15
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
Although principles are universal in nature, many people have difficulty relating the
Lean-Agile mindset and SAFe principles to the portfolio. It’s important to understand
how the principles apply, so they can be used to adapt the portfolio to a specific
context. We have chosen five principles to highlight in this learning objective. You
should be comfortable highlighting other principles as they may relate to your
personal experience or any unique knowledge or insight you may have regarding the
class attendees.

Two primary aspects of a Lean-Agile Mindset
Thinking Lean with the SAFe House of Lean Embracing Agility with the Agile Manifesto
We are uncovering better ways of developing software by

doing it and helping others do it. Through this work we
VALUE have come to value:
people and culture
Individuals and interactions over processes and tools
improvement
Respect for
Relentless
Innovation
Working software over comprehensive documentation
Flow
Customer collaboration over contract negotiation
Responding to change over following a plan
LEADERSHIP That is, while there is value in the items on the

right, we value the items on the left more.
1-16
Trainer Guidance:
Briefly remind the learners of the two primary aspects of a Lean-Agile mindset in
SAFe.

Applying the SAFe Lean-Agile Principles to the portfolio
#1-Take an economic view

#2-Apply systems thinking
#3-Assume variability; preserve options
#4-Build incrementally with fast, integrated learning cycles
#5-Base milestones on objective evaluation of working systems
#6-Visualize and limit WIP, reduce batch sizes, and manage queue lengths
#7-Apply cadence, synchronize with cross-domain planning
#8-Unlock the intrinsic motivation of knowledge workers
#9-Decentralize decision-making
#10-Organize around value
1-17
© Scaled Agile, Inc. https://www.scaledagileframework.com/safe-lean-agile-principles/
Trainer Guidance:
You don’t have to walk through each one. Just show as the example of what the
principles are and how they can be used to cross-check. The goal of SAFe is to
synthesize this body of knowledge, along with the lessons learned from hundreds of
deployments. This creates a system of integrated, proven practices that have
improved employee engagement, time to market, solution quality, and team
productivity. Given the complexities discussed earlier, however, there’s no off-the-
shelf solution for the unique challenges each enterprise faces. Some tailoring and
customization may be required. Not every SAFe-recommended practice will apply
equally in every circumstance. This is why we work hard to ensure that SAFe
practices are grounded in fundamentally stable principles. That way we can be
confident they’ll apply in most situations. Although the principles are numbered in
order to identify them, they are not prioritized in that order.
Additional Resource: Make sure you have read the articles for each of the SAFe
Principles before you teach the class: https://www.scaledagileframework.com/safe-
lean-agile-principles/

Principle #1: Take an economic view
Base decisions on economics to

achieve better business outcomes: Lead Time Product Cost
► Deliver early and often Lean Budgets

Value
Development
Expense
► Operate within Lean Budgets and Guardrails Risk
Guardrails
► Understand economic trade-offs for
Solutions
► Leverage Suppliers
Cost of Delay
► Sequence jobs (Epics) for WSJF
Job Duration Supplier
maximum benefit (Job Size)
► Empower local decision-making

https://www.scaledagileframework.com/safe-lean-agile-principles/ 1-18
Trainer Guidance:
Principle #1 is about mechanisms for economic decision-making. This is the

foundation for effective management based on economics. However, those decisions
don’t make themselves. Leaders with the relevant context, knowledge, and authority
lead the process. They empower practitioners and work with their larger stakeholder
community to determine the best path. The concepts of the economic framework
ensure that responsible decision-making happens throughout the development
organization, bringing all the economic benefits of Lean-Agile development to the
entire enterprise. We want to create a system that delivers early and often. We need
to be able to constantly adapt and respond to changes. Taking an economic view
enables these steps to happen.
Note: APM course has a lesson on value stream economics. LPM managers should
collaborate with Agile Product Managers to enable this SAFe principle.
Link: https://www.scaledagileframework.com/safe-lean-agile-principles/

Principle #5: Base milestones on objective evaluation of working systems
Program Increment (PI) System Demos are orchestrated to deliver objective

progress, product, and process Metrics.
► Build the system in

Progress Product Process
increments, each of
which is an integration
point that demonstrates Objectives Customer Product/Solution Improvement
Feedback Performance Backlog Items
evidence of the
Solution feasibility
System Demo
► Milestones based on
objective evaluation of
working systems
http://www.scaledagileframework.com/safe-lean-agile-principles/
1-19
Trainer Guidance:
We replace phase gates with ‘Programmatic Milestones,’ using conversations as

indicated in the Framework. We can work them into a model like this one. Then we
can make better-informed decisions using these milestones based on concrete
learning and move forward in this new way of working.
• Progress Metrics inform the solutions builder on where they are on the way to
accomplishing the current mission and vision for the solution. These include
measures like PI and Release status, and Feature implementation status.
• Product Metrics provide the teams with objective knowledge of the current
operational capability of the solution performance. These objective measures
inform teams of the current state of the solution against both functional and non-
functional requirements. They also provide the enterprise with the objective data
needed to evolve the solution to the next, future state.
• Process Metrics provide a means for the portfolio, solution train, ART, and the
teams to measure their performance as their primary mechanism for relentless
improvement of their process. These include such measures as ART velocity, PI
Predictability Measure, and ART and team self-assessments, some of which we’ll
discuss later.
Link: http://www.scaledagileframework.com/safe-lean-agile-principles/

Principle #6: Visualize and limit WIP...
Lean Enterprises strive to achieve a continuous flow of value. Three keys to

implementing flow:
► Visualize and limit the amount of 3 3
work-in-process (WIP) to match

demand to actual capacity. Funnel Reviewing Analyzing Portfolio Backlog Implementing Done
MVP Persevere
► Reduce the batch sizes of work.

Smaller batches go through the
system faster and with lower
variability.
► Manage queue lengths to decrease

delays, reduce waste, and improve
predictability of outcomes. https://www.scaledagileframework.com/safe-lean-agile-principles/
1-20
Trainer Guidance:
Discuss that even at the portfolio level traditional organizations are susceptible to too
much WIP.

Principle #9: Decentralize decision-making
Centralize strategic decisions—those that are infrequent, long lasting, and have
significant economies of scale. Decentralize all others.
Provide clarity on organizational objectives and provide opportunities to exercise

and cultivate decision-making abilities.
Openly discuss how to move authority for decisions closer to where the work is
performed.
Establish a decision-making framework that equips knowledge workers with the

information to make good decisions.
Apply Lean Budget Guardrails to create alignment for decentralized decisions with
the appropriate controls.
https://www.scaledagileframework.com/safe-lean-agile-principles/
1-21
Trainer Guidance:
You can emphasize practicing decentralized decision-making because most

companies are still highly-centralized. But the reality is that there needs to be a
careful balance between decentralizing and centralizing certain decisions. Should
every decision be decentralized? Can we decentralize a decision for acquiring
another company for example? The answer is, absolutely not. But moving a story to
the next iteration should not be something that goes through multiple levels of
approval.

Principles Review
SAFe
Principles
https://www.scaledagileframework.com/safe-lean-agile-principles/
1-22
Trainer Guidance:
Remind participants of SAFe Principles that can be found on the framework site.

1.3 The problem with project-based accounting
1-23
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Project cost-center budgets create overhead, friction, and lower velocity
Project effort Project cost

estimate estimate Project A project requires collaboration of cost
centers, assignment of people, budget,
and schedule. It takes multiple budgets
$ $
$ $ to build a single project budget.
...
Result:
Enterprise
Cost center 1 Cost center 3

Slow, complex budgeting process
Leads to utilization-based planning and execution
Low program throughput
...
Cost center 4
Moves the people to the work
Cost center 2
1-24
Trainer Guidance:
The enterprise is organized into cost centers. Each must contribute to project
spending or people—the primary cost element—to the new effort. This creates some
problems:
• The project budget process is slow and complicated. It requires many individual
cost center budgets to fund the project.
• It drives teams to make fine-grained decisions far too early in the ‘cone of
uncertainty.’ If they can’t identify all the tasks, how can they reasonably estimate
how many people are needed, and for how long? Their hands are forced.
• People are assigned on a temporary basis. After the project is complete, people
return to their organizational silo for future assignment within their cost center. And
if they don’t, other planned projects will suffer.
• The model drives cost-center managers to make sure everyone is fully allocated to
one or more projects. However, running product development at 100 percent
utilization is an economic disaster, resulting in high variability between forecasted
and actual, time and costs.
• The model prevents individuals and teams from working together beyond a single
project. This hinders learning, team performance, and employee engagement. And
collocation is out of the question. What happens if the project takes longer than
planned, which often happens. Many people will have moved on to other projects,
and further delays will occur.

Project overruns cause re-budgeting and increase cost of delay
Project estimate What/who do we blame?

▸ Technology challenge?
Planned: Project
▸ Change in scope?
▸ The team?
Actual: Project
▸ Does it matter?
Results:
▸ Wait for new budget approval; increase cost of delay (CoD)
▸ Costly variance analysis; blame game; threatens transparency
▸ Resource scramble reassignments
1-25
Trainer Guidance:
Here’s an example of cost overrun – the blame game, etc. Product development
cannot innovate without taking risks. Because it contains a high degree of technical
uncertainty, it’s challenging to estimate product development: everyone knows that
most things take longer than planned. Moreover, even when things go well,
stakeholders may want a specific feature. That requires approval from a change
control board, which adds further delay. Again, project-based funding hinders
progress, culture change, and transparency. Project overruns often result in the
blame game, which is unproductive and unhealthy.

1.4 Benefits of organizing around value
1-26
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
To fully understand the structure of a SAFe portfolio, we need to thoroughly explore

what we mean when we advocate that an organization organizes around value.

Value doesn’t follow functional silos
Political boundaries can

prevent cooperation
across silos.
Value delivery in silos is
Communication across
inhibited by hand-offs
silos is difficult.
and delays.
Business Product Hardware Software Quality Testing Compliance Operations Security
Management challenge: Connect the silos
1-27
Trainer Guidance:
Take, for example, a highly-distributed team of developers working in silos. Gaining

alignment and communicating the same message across would be extremely difficult.

Instead, organize the portfolio around value
► Move from organizing in projects to organizing around the portfolio’s

development Value Streams that create Solutions—products and services—
used by customers.
► Customers do not buy Features or Capabilities. Rather, they buy whole-

product Solutions that deliver desired outcomes, which make Solutions one
of the central concepts in SAFe.
AGILE RELEASE TRAIN
AGILE RELEASE TRAIN
AGILE RELEASE TRAIN
Development Value Streams

1-28
Trainer Guidance:
Organizing around value is not your typical re-org. Reporting lines are not impacted.
Instead, we are talking about forming “virtual,” or matrixed organizations, that cut
across functional silos, which are the Agile Release Trains.

Identify the Development Value Streams within a portfolio
Use the following resource from the SAFe Community

Platform to build your high-performing team
SAFe® Value Streams and ART

► SAFe Value Streams and ART Identification Identification Workshop
Workshop, so you can:
► Understand how the organization of Development

Value Streams and Agile Release Trains (ARTs)
impact value delivery
► Identify Development Value Streams and ARTs within

This workshop is led by an experienced
a portfolio
SPC who has access to this toolkit in the
► Periodically run the SAFe Value Stream and ART SAFe Community Platform
Identification Workshop to optimize the flow of value
https://bit.ly/Community-OrganizeAroundValue
1-29
Trainer Guidance:
It’s highly recommended that enterprises periodically run the Value Stream and ART
Identification Workshop to ensure it is optimized for value flow. It’s not a one-and-done
exercise.
Link: https://bit.ly/Community-OrganizeAroundValue

Development Value Streams are realized by ARTs
► Agile Release Trains (ARTs) build, support, and maintain Solutions within a
Development Value Stream
► ARTs contain all the people needed to define, deliver, and operate the Solution
Business Product Hardware Software Quality Testing Compliance Operations Security

Mgmt.
AGILE RELEASE TRAIN
1-30
Trainer Guidance:
Value streams deliver solutions to customers. Solutions vary in size, scope, and
complexity. Customers can be internal or external. There's no such thing as a value
stream that doesn't produce solutions.

Lean Budgets are not affected by Feature overruns or changing priorities
Planned: Feature 1 Feature 2
When a Feature takes longer than planned, keep

people working on the right Feature for the right
reasons
Feature 2
Actual: Feature 1
Delay this Feature
as necessary.
Fixed cost per PI
1-31
Trainer Guidance:
When we fund a value stream, the local content authority (product or solution
management) can make the decision of whether to keep investing in a feature that
requires more investment or shift direction. We have many options now when we
overrun, and they’re all based on the economic decision-making framework.

Value Streams in SAFe
1. Operational Value Streams

Quick Complete Eligibility Extend Setup
Attract
customer
rate
quote
loan
application
decision and
underwriting
load
terms
Award
loan
payment
terms
Repay
money
Close
loan The sequence of activities needed to deliver a
Loan Need Repayment
plus interest
product or service to a customer. Examples
Channels
Loan
Origination
System
Credit
Scoring
System
Core
Banking
include manufacturing a product, admitting
and treating a patient, and delivering a
professional service.
2. Development Value Streams

The sequence of activities needed to convert a
80 US (Atlanta and Redmond) business hypothesis into a technology-enabled
230 India (Bangalore and Delhi) 150 US (Chicago)
solution that delivers customer value. Examples
include developing a medical device, building a
30 Estonia
satellite, and building an eCommerce site.
1-32
Trainer Guidance:
• I want to get a house, or a car, or something that requires a loan.

• The operational value stream is the technical description of customer journey
• The supporting process underneath that journey is the development value stream.
• That includes the systems, the people, and the process, from the trigger (loan
need) through the full servicing of the loan.
The benefits of organizing people in value streams are:

• Fewer handoffs and delays, allowing teams to work with smaller batch sizes
• Enables long-lived, stable teams that focus on delivering value instead of projects,
which focuses on task completion.
• Allows faster learning and shorter time-to-market
• Contributes to higher quality and more productivity
• Supports Leaner development and budgeting methods
Note that in many organizations, operational value streams are closely aligned, or are
considered directly, a profit center.

Prepare Share
Discussion: Organizing the portfolio around 5 3
value min min
► Step 1: Considering the current state of SAFe Portfolio

your portfolio, discuss: Strategic
Themes
– Is your portfolio organized in functional
silos or is it organized around value
AGILE RELEASE TRAIN
AGILE RELEASE TRAIN
using cross-functional teams?

AGILE RELEASE TRAIN
– Do you manage work through projects

or Agile Release Trains, which are
empowered for continuous value flow?
► Step 2: Be prepared to share with the

class.
1-33
Trainer Guidance:
Each group will participate in a discussion to determine if they are truly organized for
value flow. When debriefing after the discussion, ask the class if they are still
managing work using projects. If the answer is yes, they are not organized for value.

Key benefits to organizing around value
Enables long-lived, stable teams
Enables faster learning and shorter time-to-market
Contributes to higher quality and more productivity
Supports leaner budgeting mechanisms
1-34
Trainer Guidance:
Describe the key benefits of organizing the portfolio around value. The goal is to
provide the ‘why’ for making such a significant change.

Prepare Share
Activity: Assess current process alignment to 5 5
SAFe Lean-Agile Principles min min
► Step 1: Using the scale,

identify the degree to (low ) (high)
which your current 1 2 3 4 5
#1 Take an economic view
process is aligned with
the SAFe principles #5 Base milestones on objective
discussed in the class evaluation of working systems
#6 Visualize and limit WIP, reduce batch

► Step 2: Be prepared to sizes, and manage queue lengths
present to the class #9 Decentralize decision-making
#10 Organize around value
1-35
Trainer Guidance:
Since only four SAFe principles were covered in this lesson, this activity is designed
to enforce how the other principles apply to the portfolio. Have each table do a
different principle and have them briefly share how the principle they chose applies to
the portfolio.
Purpose: To assess the degree to which learners’ processes are aligned with the
SAFe principles discussed in this class.
Remote Guidance: A Collaborate template is available in your Virtual Classroom. A

template for this activity is also provided in the digital workbook (for individual
assessment) and in the Remote Group Document Template to help you facilitate this
as a group activity.

1.5 SAFe portfolio structure
1-36
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
The key points for this topic are that:

1. A SAFe portfolio is a set of development value streams
2. Enterprises may have a single portfolio or multiple

What is a SAFe portfolio?
A SAFe portfolio is a collection of Development Value Streams.
► Each Development Value Stream builds, supports and maintains Solutions
► Solutions are delivered to the Customer, whether internal or external to the

Enterprise
AGILE RELEASE TRAIN
PB AGILE RELEASE TRAIN

AGILE RELEASE TRAIN
1-37
Trainer Guidance:
SAFe did not invent portfolios. Every organization has an established structure to
prioritize and govern investments. SAFe’s portfolio is different in the way these
functions are performed because it is based on Lean-Agile principles and the Lean-
Agile mindset.
Tip: Ask the class, “What is a portfolio in your own worlds?” Some of the common
answers include: “Our portfolio is a collection of work,” or “Our portfolio is a set of
projects and investments.” Explain that the SAFe portfolio contains one or more
development value streams, each of which support developing solutions that an
enterprise or government agency needs to accomplish its business mission. A
portfolio is often a single business unit to support a value stream and the solution it
produces. It is a subset of the business. Solutions are what constitutes the portfolio.
Because solutions are long lasting, they are built and maintained via stable teams
and ARTs, reducing long-term costs associated with project-based funding and
increasing quality. Solution performance as measured by KPIs informs the portfolio in
ongoing funding choices.
Note that the funding of value streams in portfolios that manage market-facing
products is influenced and often “right-sized” by the revenue and profit generated by
these solutions.

An Enterprise may have a single portfolio or multiple portfolios
SAFe Portfolio
Strategic
Themes
A GILE R ELEA SE TR A IN
PB A GILE R ELEA SE TR A IN
Small Enterprise Single Portfolio
SAFe Portfolio
Strategic
Themes
PB A GILE R ELEA SE TR A IN
Large Enterprise
Multiple portfolios
1-38
Trainer Guidance:
SAFe enterprises may have a single or multiple portfolios.
In the small-to-midsize enterprises, one SAFe portfolio can typically govern the entire
technical solution set.
In larger enterprises, there can be multiple SAFe portfolios, typically one for each line
of business, business unit, or division.
How to identify the SAFe portfolio?

1) By offering, e.g., in a bank you could have a separate portfolio for depository,
lending, payments, investments.
2) By market: millennials vs boomers
3) By business unit

Prepare Share
Activity: Understand your current portfolio 20 10
process min min
► Step 1: Capture your current portfolio process.

Current LPM process
For example:
– What is the portfolio intake process?

– How is new work approved and introduced to
teams?
– What challenges do you have with your current
process? For example, are you satisfied with
how quickly you make decisions?
► Step 2: Be prepared to share with the class.
1-39
Trainer Guidance:
It can be especially helpful to focus on the challenges that learners are experiencing.
Encourage students to draw their pictures using flip charts so that they have plenty of
space for ideas.
Purpose: To describe learners’ current portfolio processes in terms of intake, new

work, and challenges.
Remote Guidance: A Collaborate template and instructions for this activity are
provided in your Virtual Classroom. A template with instructions is also provided in
the Remote Group Document Template.

1.6 Shift to LPM
1-40
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
There are several key points for this topic:

1. The Lean portfolio management (LPM) function governs each SAFe portfolio
2. It provides three essential responsibilities: strategy and investment funding, Agile
portfolio operations, and Lean governance
3. The responsibilities are carried by different collaborations.

Traditional project portfolio management challenges
Traditional project portfolio approaches inhibit the flow of value because of:
► Project cost accounting
► Annual planning and rigid budgeting cycles
► Perpetual overload of demand versus capacity
► Phase-gate approval processes that fail to mitigate risk
► Overly detailed business cases with speculative ROI
1-41
Trainer Guidance:
Briefly provide a summary of traditional portfolio management challenges. Don’t

elaborate on each of the challenges. The next few slides explain each of them in
detail.

Traditional approaches to organizing people vs organizing around value
People organized in functional silos VS. People organized in Value Streams/ARTs
AGILE RELEASE TRAIN
Business Product Hardware Software Quality Testing Compliance Security

Mgmt.
Functional silos inhibit value flow
Traditional project portfolio approaches and Organizing around value and applying
siloed organizational structure inhibit the flow cadence-based planning aligns all teams
of value and innovation in the Enterprise. to a shared mission and Vision.
1-42
Trainer Guidance:
Briefly describe the difference between people organized in functional silos versus
being organized in value streams and ARTs. Remember value streams and ARTs are
virtual organizations and do not require a physical HR reorganization.

Project cost accounting vs Lean Budgets and Guardrails
Funding projects VS. Funding development Value Streams
AGILE RELEASE TRAIN
PB
AGILE RELEASE TRAIN
AGILE RELEASE TRAIN
Funding work as projects causes friction, Funding development Value Streams, along
unnecessary overhead, and delays. with budget Guardrails, enables faster delivery
while maintaining financial and fitness for use
governance.
1-43
Trainer Guidance:
Briefly describe the difference between funding projects versus value streams and
why the latter approach is better. Accounting systems can have a lot of influence as
well. When we fund value streams, it comes with guardrails. The concept ensures that
the money is being spent wisely while there is still autonomy and decentralized
decision-making with checks and balances in place.

Annual planning and rigid budgeting cycles vs. rolling wave budgeting
Big up-front annual plan and budget VS. Rolling waveSync

Portfolio planning and budgeting
process
Strategic
PI Planning
PI Planning
PI Planning
Strategic
Portfolio Review Portfolio Review
Annual planning April May June July August September
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio

Sync Sync Sync Sync Sync Sync
Annual planning and rigid budgeting cycles Rolling wave planning and dynamically
inhibit the ability to respond to change. adjusting budgets enables adapting to change.
1-44
Trainer Guidance:
Explain the contrasts between an annual planning approach versus rolling-wave

planning using participatory budgeting. Avoid going into detail about participatory
budgeting since it will be described in another lesson. Describe the downfalls of
annual planning (upfront planning and analysis of future initiatives is ineffective,
causing the initiatives to become irrelevant in the future) and compare it to the ability
of an organization to plan and budget dynamically.

Perpetual overload of demand vs. matching demand to capacity
Unlimited work intake Matching demand to capacity
NFRs
Uncontrolled management of demand and Matching the demand to capacity increases

work-in-process (WIP) decreases throughput. flow through the system.
1-45
Trainer Guidance:
In most organizations, there is uncontrolled management of demand, and the portfolio

is used to intake all types of work. Explain that only epics should be a concern of
portfolio management and how the portfolio Kanban improves transparency and
matches demand to capacity using WIP limits. A fully utilized system is a slow
system, prone to error, and not resilient or adaptive to major changes. Most
organizations are overloaded with too much work which was driven from the top. The
LPM function should be responsible for limiting what the ARTs work on to
optimize flow.

Phase-gate approvals vs incremental value delivery
Phase-gated development VS. Incremental development
Requirements Design Planned

complete complete deployment
Point
solution
Not enough Optimum
time to adjust Actual solution solution
False-positive feasibility of initiatives due to Delivers working solutions faster and earlier
waterfall measures of progress and than phase-gated approaches. Learning is
phase-gates. Defers learning to the end. continuous and adjustments can be made
incrementally each Iteration.
1-46
Trainer Guidance:
Describe the difference between using phase-gates and an incremental delivery

approach. It’s been proven that phase gates have zero correlation to project success.
Worse, they create a sense of false-positive feasibility. We want to shift our portfolio
focus on incremental and iterative delivery and continuous learning.

Overly detailed business cases vs Lean business cases
Big up-front commitment VS. Initial commitment limited to MVP
Detailed business cases drive over-specificity Lean business cases provide just enough detail
and commitment too early in the cone of to establish viability, a definition of a minimum
uncertainty due to the large effort invested. viable product (MVP) with a business outcome
hypotheses, and deployment impact.
1-47
Trainer Guidance:
Briefly contrast the different approaches for business cases. Share a story about how
you used to create a detailed business case for every initiative and the waste and
delays it caused. One antipattern is creating business cases that are highly detailed in
nature (ROI, demand, number of years, etc.) for every single initiative in the funnel.
Lean business cases may take a couple of PIs to complete. It ensures that the
initiative is aligned with the enterprise’s strategic theme. Emphasize the importance of
changing the language from ’benefits of the initiative’ to a ‘benefit hypothesis of the
minimal viable product’.

Duration
Action Plan: Shifting to Lean Portfolio Management 5

min
► Step 1: Consider the topics

discussed in this lesson
► Step 2: Write three action items you

can take to organize your portfolio
around value and shift towards Lean
Portfolio Management
► Step 3: Share your insights with the

class
1-48
Trainer Guidance:
Action plan pages are provided in the learners’ digital workbook. Allow the time
needed for reflection and capturing of key takeaways from the topics discussed in the
lesson.

Lesson review
In this lesson you:
► Explained the need for Lean Portfolio Management
► Described the Lean-Agile Mindset and SAFe Principles
► Recognized the problem of project cost accounting
► Described the key benefits of organizing around value
► Defined a SAFe portfolio structure
1-49
Trainer Guidance:

Articles used in this lesson
Read these Framework articles to learn more about topics covered in this lesson
► "Lean Portfolio Management"

https://www.scaledagileframework.com
/lean-portfolio-management/
► “Lean-Agile Mindset”
/lean-agile-mindset/
► “SAFe Principles”
/safe-lean-agile-principles/
1-50
Trainer Guidance:
Links:
• https://www.scaledagileframework.com/lean-portfolio-management/
• https://www.scaledagileframework.com/lean-agile-mindset/
• https://www.scaledagileframework.com/safe-lean-agile-principles/

Continue your SAFe journey with the following resources:
Use the practice guide, "Align: A Change Leader’s Watch this seven-minute video, An Introduction to
Guide to Implementing Lean Portfolio Lean Portfolio Management, for an overview of
Management," to review the critical steps of LPM.
an LPM implementation. https://bit.ly/Video-IntroductionLPM
https://bit.ly/E-learning-AlignImplementingLPM
Listen to the fifteen-minute podcast, “Lean Download “Introduction to LPM for Executives” to
Portfolio Management in the Wild: Practical guide your introduction of concepts to leadership
Applications,” to learn practical advice from the groups.
field on how to implement LPM. https://bit.ly/Toolkit-IntrotoLPMforExecutives
https://bit.ly/Podcast-LPMPracticalApplications
Watch the one-minute video, Welcome to Lean Watch this four-minute video, Lean-Agile Mindset,
Portfolio Management Course, to gain an overview to learn the importance of the right mindset in
of the LPM course. SAFe.
https://bit.ly/Video-WelcometoLPM https://bit.ly/Video-LeanAgileMindset
1-51
Trainer Guidance:
Review this slide with learners.
Optional: Display the My Classes page on the SAFe Community page and
demonstrate how to access this page.
Links:
• https://bit.ly/E-learning-AlignImplementingLPM
• https://bit.ly/Video-IntroductionLPM
• https://bit.ly/Podcast-LPMPracticalApplications
• https://bit.ly/Toolkit-IntrotoLPMforExecutives
• https://bit.ly/Video-WelcometoLPM
• https://bit.ly/Video-LeanAgileMindset

Lesson 2
Establishing Portfolio
Strategy and Vision
Trainer Guidance:

Strategy and investment funding: Collaboration and responsibilities
Strategy and investment funding ensures that the entire portfolio is aligned
and funded to create and maintain the Solutions needed to meet business
targets
Enterprise Connect the portfolio to Enterprise strategy

Executives
Maintain a portfolio Vision
Realize portfolio Vision through Epics
Establish Lean Budgets and Guardrails
Business Enterprise
Owners Architect Establish portfolio flow
2-2
Trainer Guidance:
Review this slide and the focus on the highlighted section when teaching this lesson.
Note that the remaining bullets will be covered in subsequent lessons.

Strategy
Lesson Topics Objective & Investment

Funding
Key Results
2.1 Connecting the

Enterprise
Executives
portfolio to the Enterprise Business Enterprise

strategy Owners Architect
2.2 Maintaining the

portfolio Vision Lean
Agile
Portfolio
2.3 Developing the

portfolio Roadmap APMO

Architect Owners APMO/LACE SM CoP
2-3
Trainer Guidance:
enterprise-class technology-based solutions with high quality and fast time-to-market.

Learning objectives
At the end of this lesson you should be able to:
► Construct well-written Strategic Themes
► Explore a current and a future state of a portfolio
► Describe the portfolio Roadmap
2-4
Trainer Guidance:

2.1 Connecting the portfolio to the
Enterprise strategy
2-5
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
A key point for this topic is that SAFe offers two primary mechanisms for connecting
the enterprise strategy to a portfolio:
1. The portfolio budget is the total funding provided to a portfolio for development,
operating, and capital expenditures. It’s then allocated to the individual value
streams by Lean portfolio management.
2. Working together, enterprise executives and portfolio stakeholders establish a set
of strategic themes that communicate aspects of strategic intent from the
enterprise to the portfolio.

Elements of Enterprise strategy formulation
KPIs
Portfolio Qualitative data
• Vision
context Lean Budget Guardrails
• Mission
• Core values
Enterprise Enterprise Portfolio

business budgets
drivers Strategy
Formulation Strategic
Distinctive Themes
competence
Financial Competitive
goals environment
2-6
Trainer Guidance:
A strategy is best described as a plan of action to achieve the mission of the

enterprise. Therefore, defining a strategy may be the most critical activity of every
enterprise. An effective strategy answers four critical questions about the business:
• What customers and markets do we serve?
• What products and solutions do we provide?
• What unique value and resources do we bring to the endeavor?
• How will we extend these in the future?
Each enterprise must have some approach to determine its strategy. The best way to
think about strategy is that it’s a natural output of a logical and reasoned business
process. Rather than leaping to conclusions or allowing the loudest or highest-ranking
people to mandate the path, a more effective approach is to collaborate and reason
about the strategy inputs. That will generally lead to agreement and alignment about
what the strategy should be. One such model was described by Jim Collins in Beyond
Entrepreneurship. The adaptation shown on the graphic in this slide highlights the
inputs to strategy and defines two outputs—Portfolio Budgets and Strategic
Themes—that the portfolio needs to link strategy to execution.

Businesses have various approaches to develop enterprise strategy. This model was
adapted from one of Jim Collins's earlier works and shows how the SAFe portfolio
context influences enterprise strategy. The two critical outputs are the portfolio
budgets and a set of strategic themes for each.
Vision – Represents the future state of what the business wants to be. It’s persistent
and long-lasting.
Mission – Identifies the business objectives that implement the enterprise vision and
frame the strategy. They may be somewhat more temporal, and likely be incremental,
in that each build on the one that came before.
Core values – Provide the immutable belief system that governs all individual and
corporate behaviors and activities.
Enterprise business drivers – Reflect the emerging industry themes and trends that
affect the business.
Distinctive competence – Strategy naturally leverages distinctive capabilities, the

unique advantages that differentiate this business from others, and provides a
competitive edge.
Financial goals – Whether measured in revenue, profitability, people market share, or

other metrics, financial performance goals should be clear to all stakeholders.
Competitive environment – Competitive analysis identifies the most significant

competitive threats to the business.
Portfolio context – Knowledge of the current state of each solution portfolio informs
enterprise strategy.

Strategy development is bi-directional
SAFe Portfolio
Strategic Lean Portfolio

Themes Budgets
Strategic Themes and Lean Budgets

are outputs of Enterprise strategy SAFe Portfolio
formulation
Strategic
Themes
A G ILE R EL EA SE TR A IN
PB A G ILE R EL EA SE TR A IN
A G ILE R EL EA SE TR A IN
Lean Budgets
Enterprise Strategy
Portfolio Context
• KPIs
• Qualitative data
• Lean Budget Guardrails
The portfolio context is an input to the

evolving Enterprise strategy
2-7
Trainer Guidance:
Although any strategy is mainly a centralized concern, some elements simply cannot
be known in advance. Challenges and opportunities that exist in the current solution
set and in local market conditions inform the enterprise strategy. Therefore, strategy
development is a bi-directional process that requires continuous collaboration,
communication, and alignment with its downstream portfolios. It requires total
awareness of the portfolio context, which provides constant feedback to support
governance and inform the evolving enterprise strategy development.

Connect the portfolio to the Enterprise with Strategic Themes
Strategic Themes are differentiating business objectives that:

Enterprise Government ► Are a collaboration between LPM and the larger Enterprise
► Drive the future state of a portfolio
Strategic
Themes
► Connect the Portfolio to the Enterprise strategy
► Provide context for the Portfolio Vision and Lean budgeting
Good examples of Strategic Themes Bad examples of Strategic Themes

(Retail e-commerce):
• Increase shareholder wealth
• Appeal to a younger demographic (18 – 29) • Maximize corporate value
• Reduce warehousing cost by 35%
2-8
Trainer Guidance:
Describe what a strategic theme is and review the good and bad examples at the
bottom of the slide. Ask the class what’s the problem with the bad examples.
(Answer: They are not differentiating business objectives that drive the future state of
the portfolio.)
Be sure to say that strategic themes are formulated via a collaborative process in
which the enterprise executives and other fiduciaries work with Lean portfolio
management and to develop the themes. This is often associated with the Strategic
Portfolio Review and is often reviewed in the Portfolio Sync.

Describe Strategic Themes with objectives and key results (OKRs)
► Objectives represent the Strategic Themes (differentiating business objectives) that

drive the future state of a portfolio.
► Key results must be measurable. Two to five key results per Strategic Theme is
recommended.
Objective Key Results

Reduce membership churn from 20% to 5%
Increase Net Promoter Score (NPS) from 35 to 60
Improve average weekly visits per active user from
Increase customer engagement in
5,000 to 20,000
our community platform
Increase non-paid (organic) traffic from 1,500 to 5,000
users
Improve engagement from 30% to 60%
2-9
Trainer Guidance:
Avoid an in-depth discussion of OKRs, as it is a very deep subject area with several
nuances. Focus on the SAFe use of OKRs: strategic themes represent objectives and
key results are the means by which the portfolio can track progress against these
objectives. We will also cover KPIs more thoroughly in the lesson Lean governance.
You and your learners can find a lot of information about OKRs on the internet. You
can also review John Doerr’s book Measure What Matters.

Influence of Strategic Themes
Strategic Themes influence portfolio strategy and provide business context for
portfolio decision-making.
Portfolio Vision
Enterprise Government Portfolio Kanban and Portfolio Backlog
Vision for Solution, Program, and Team Backlogs

Strategic
Themes
Value Stream Budgets
Investment Horizons Capacity Allocation
Lean Budget Guardrails
Above portfolio
threshold?
Approve Significant Business Owner

Initiatives Engagement 2-10
Trainer Guidance:
Describe the influence of strategic themes and how they provide the context for
decision-making. For example, strategic themes are direct inputs to the portfolio
canvas and vision, as they may affect key partners and activities, customer segments,
and so on.
Strategic themes also have an influence on the vision and backlogs for development
at every level of SAFe. For example, if an epic is not aligned with a strategic theme, it
probably should not be reviewed and analyzed.
Strategic themes influence value stream budgets and guardrails. Always consider if
the current investments in value streams reflect the changes necessitated by the
strategic themes.

Duration
Video: Introduction to Terrific Transport Corporation 2

min
https://bit.ly/Video-TTCIntro
2-11
Trainer Guidance:
This course uses a fictitious company, the Terrific Transport Corporation (TTC) to
convey certain LPM concepts by engaging learners in scenario-based activities.
Being able to engage in the course materials within the TTC context helps keep
learners from getting too deep in the intricacies of their own context and provides an
opportunity for learners to work together through the course activities.
Link: https://bit.ly/Video-TTCIntro

Prepare Share
Activity: Establish Strategic Themes 10

min
5
min
► Step 1: Working in your group, choose at

least one Strategic Theme below for TTC
and identify at least three measurable key
results:
- Expand autonomous delivery into

healthcare
- Expand autonomous delivery into retail
2-12
Trainer Guidance:
Use one of your own objectives (instead of TTC) to analyze. How would you change
the theme and what key results would you write?
Purpose: To identify three measurable key objectives for the strategic theme.
provided in your virtual classroom. A template and instructions are also provided in
the Remote Group Document Template. Learners have access to a template in their
digital workbooks, as well.

2.2 Maintaining the portfolio Vision
2-13
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Define the Value Streams and portfolio domain via the portfolio canvas
► Describes the Development

Value Streams
► Captures essential
information regarding
partners, activities,
resources, and economics
► Current and future state

canvases define the
intended Portfolio Vision
Blank Collaborate template for future use: https://bit.ly/Template-PortfolioCanvas

2-14
Trainer Guidance:
The portfolio canvas describes how a portfolio of solutions creates, delivers, and
captures value for an organization. It also helps define and align the portfolio’s Value
Streams and solutions to the goals of the enterprise. It’s a key artifact in developing
and maintaining the portfolio vision.
Ask learners how the four questions in the What is Strategy video (slide 6) relates to
the blocks on the portfolio canvas. Below are the questions and the related blocks on
the canvas:
1. What customers and markets do we serve? (Answer: Customers and Channels)
2. What products and solutions do we provide? (Answer: Solutions)
3. What unique value and resources do we bring? (Answer: Value Streams, Key
Partners, and Key Resources)
4. How do we sustain value? (Answer: Key Activities, Cost Structure, and Revenue
Streams)
Download this canvas from the framework here:

https://www.scaledagileframework.com/portfolio-vision/, or access blank Collaborate
template for future use here: https://bit.ly/Template-PortfolioCanvas

The portfolio canvas is an adaptation of the Business Model Canvas
► Documents business models of Business Model Canvas

Key Value Customer
existing or new products

Activities Proposition Relationships
Key
Aligns business and technology to

Partners Customers
►
a common language
► Provides a shared language to

describe and visualize the current
Costs Key Revenue
Resources Channels
drawings by JAM
and future business model

There is a large body of knowledge about how
to use the Business Model Canvas. You can
refer to: Osterwalder, Alexander; Pigneur,
Yves. Business Model Generation: A
Handbook for Visionaries, Game Changers,
and Challengers Wiley. Kindle Edition
2-15
Trainer Guidance:
The SAFe portfolio canvas is based on the Business Model Canvas developed by
Alexander Osterwalder. The advantage of this is that there is a large body of
knowledge about how to use the Business Model Canvas that can be applied to the
portfolio canvas. In the value propositions section of the canvas, be sure students
know that they should create a separate row for each value stream.
The subsequent blocks in this section (e.g., solutions, customer segments) apply to
each value stream row. The nine original blocks of the Business Model Canvas
appear in a bold font with an icon.
New blocks, which appear in a standard font, enable alignment of the portfolio canvas
to specific SAFe constructs.

Duration
Video: Understanding the Portfolio Canvas 4

min
https://bit.ly/Video-UnderstandingPortfolioCanvas
2-16
Trainer Guidance:
The portfolio canvas describes how a portfolio of solutions creates, delivers, and
captures value for an organization. It also helps define and align the portfolio’s value
streams and solutions to the goals of the enterprise. It’s a key artifact in developing
and maintaining the portfolio vision. Lightly review a few key boxes, and emphasize
that there will be an activity that enables learners to explore each box.
Links: https://bit.ly/Video-UnderstandingPortfolioCanvas

Prepare Share
Activity: Understand portfolio canvas structure 10

min
5
min
Value Propositions
► Step 1: Working in your group, Value Streams Solutions

Customer
Segments
Channels
Customer
Relationships
Budget
KPIs /
Revenue
explore the structure of the TTC’s

portfolio by placing each portfolio Key Partners Key Activities Key Resources
item in the correct location.
Step 2: Be prepared to share with

Cost Structure Revenue Streams
► EXAMPLE
the class
Autonomous Commercial Delivery Vehicles; Autonomous vehicles for delivery of commercial
Autonomous Public Transportation Vehicles goods; Autonomous vehicles for public
transportation of people
Development and innovation lab; Regulation and
license fees Online Platform with eCommerce capabilities;
Interactive app with customizable preferences
Engineers building the SaaS solution on TTC Web
Services Partner Network; Enhanced vision system Local business delivery; local public
and laser-based lidars transportation service
Service charge; Membership subscription 10 Voice of the customer; Service subscribers
4 million; 5 million TTC Web Services Partner Network; Regional

Transportation Transit System
Safe and fast on demand grocery delivery;
Safe, reliable, fast and economical transportation Average profit margin, customer acquisition cost;
with built-in on-board services Customer retention
Blank Collaborate template for future use: https://bit.ly/Template-PortfolioCanvas

2-17
Trainer Guidance:
The primary purpose of this activity is to familiarize the learner with the structure of
the portfolio canvas. It should be relatively easy to complete.
Purpose: To learn to use the portfolio canvas by placing items in the correct location.
Remote Guidance: A Collaborate template and instructions for this activity can be
found in your Virtual Classroom. A template and instructions are also provided is in
the Remote Group Document template. Learners have access to a template in their
Download this canvas from the framework here:

https://www.scaledagileframework.com/portfolio-vision/, or a blank Collaborate
template for future use here: https://bit.ly/Template-PortfolioCanvas

Understand the portfolio’s investment mix by horizon
Horizon 3 Horizon 2 Horizon 1 Horizon 0

Evaluating Emerging Investing Extracting Retiring
Decommission
Decommission
STOP
2-18
Trainer Guidance:
The SAFe investment horizon model highlights spending allocations for solutions that
are created by the individual value streams. This helps enable value stream owners
and fiduciaries to make more informed decisions, and it helps align the portfolio with
strategic themes while promoting overall health and growth, as well as identify holes
in the current strategy.
Horizon 3 investments are those dedicated to investigating new potential solutions.

Often, an epic is created to start the initiative, and an MVP is defined to test the
benefit hypothesis. The investment continues until the initiative is stopped or allowed
to continue to horizon two.
Horizon 2 reflects the investments in solutions which have emerged from horizon
three. Since these are promising new solutions, the business is willing to make
ongoing investments in excess of the current return. However, if the decision is made
to stop the program, it’s likely that some modest investment is necessary to
decommission the system, as it has likely made its way into the internal and external
business ecosystem.
Horizon 1 reflects the desired state where solutions deliver more value than the cost
of the current investment. These solutions require ongoing investment to maintain and
extend functionality. This investment profile often consumes much of a portfolio
budget, sometimes with lack of focus on innovation at other horizons.
Horizon 0 reflects the investment needed to decommission a deployed solution.

Identify opportunities for the portfolio’s future state with SWOT
► Establishes an S Strengths
W Weaknesses
understanding of the
Internal origin
portfolio’s strengths and
weaknesses
► Helps identify the most O Opportunities T Threats
External origin
significant opportunities
and potential threats
Blank Collaborate template for future use:
https://bit.ly/Template-SWOT-Analysis Tip: Start with the external opportunities and threats first
then see what strengths and weaknesses would be
applicable for your context.
2-19
Trainer Guidance:
There are many tools and techniques to help understand opportunities for the future
state portfolio canvas. One of these techniques is a SWOT analysis which can be
used to identify the strengths, weaknesses, opportunities, and threats related to
business competition or a business plan. The SWOT analysis helps uncover
opportunities for success that were previously unarticulated or to highlight threats
before they become overly burdensome. The top two quadrants are internal, the
bottom two quadrants are external.
You can download the SWOT analysis Collaborate template for future use here:
https://bit.ly/Template-SWOT-Analysis

TOWS strategic options matrix
► The key difference between the External Opportunities (O) External Threats (T)
SWOT and TOWS analysis are the 1. 1.

2. 2.
outcomes that they create. 3. 3.
4. 4.
► TOWS is used primarily for Internal Strength (S) SO ST

1. How can your How can you apply
identifying strategic options to 2.
strengths be used your strengths to
to exploit and overcome present
create a better future state. 3. maximize and potential
4. opportunities? threats?
SWOT analysis is a great way to

Internal Weaknesses (W) WO WT
► 1. How can your How can you
opportunities be
uncover the current situation of 2. leveraged to
minimize
weaknesses and
3. overcome
your value stream, product or 4.
weaknesses?
avoid threats?
portfolio.
Blank Collaborate template for future use: https://bit.ly/Template-SWOTandTOWSAnalysis
2-20
Trainer Guidance:
Many teams find the WT quadrant hard: “How can I minimize my weaknesses and
avoid threats?” One approach is to focus on Horizon 3 disruptive innovations. Don’t
address your weakness; eliminate it by pursuing an entirely new approach. If you do
this effectively, you will also neutralize any threats – because you’ll be operating in a
new space.
You can download the SWOT and TOWS Collaborate template for future use here:
https://bit.ly/Template-SWOTandTOWSAnalysis

Prepare Share
Activity: Identify significant opportunities with 10 5
SWOT and TOWS min min
Step 1: Working in your group,

SWOT / TOWS Analysis
► SO: How can your strengths be EXTERNAL OPPORTUNITIES EXTERNAL THREATS
perform a SWOT/TOWS analysis

used to exploit and maximize
opportunities?
ST: How can you apply your
strengths to overcome present
for the TTC portfolio. Start by filling

and potential threats?
WO: How can your opportunities
be leveraged to overcome
weaknesses?
in the outer box of the templates. WT: How can you minimize
weaknesses and avoid threats?
Use the questions in the template

INTERNAL STRENGTHS
to identify strategic options for

advancing the portfolio.
INTERNAL WEAKNESSES

the class.
Blank Collaborate template for future use: https://bit.ly/Template-SWOTandTOWSAnalysis

2-21
Trainer Guidance:
It can be helpful for the learners to start with the content in the previous slides and the
extend them as they feel appropriate into the TTC context.
Purpose: To identify opportunities for TTC portfolio by performing a SWOT and

TOWS analysis.
Trainer Instructions: Ask learners to use the Remote Group or Collaborate template
to identify strategic options for the TTC portfolio.
found in your Virtual Classroom. A template and instructions are also provided in the
Remote Group Document template. Alternatively, learners have access to a template
in their digital workbooks.
You can download the SWOT and TOWS Collaborate template for future use here:
https://bit.ly/Template-SWOTandTOWSAnalysis

Envision the future state of the portfolio
► LPM selects a specific

block in the portfolio
canvas, identifies a
SWOT analysis TOWS analysis
potential change or
opportunity, and then
explores how it impacts the Epic Epic
other parts of the canvas. Enabler Epic
Current State Future State

Epic Enabler
Portfolio Canvas Portfolio Canvas
► Alternatives are compared
and agreed upon. LPM
Divergent Thinking
generates the future state Convergent Thinking
portfolio canvas.
2-22
Trainer Guidance:
Evaluate alternatives to determine the future state of the portfolio. The portfolio’s
strategic themes are one essential input. Key members of the LPM function—ideally
including the same team that is making financial decisions—uses the current state
portfolio canvas as a starting point to explore the different ways in which the portfolio
could evolve in alignment with the strategic themes.
Start by selecting a specific block in the portfolio canvas, identifying a potential

change or opportunity, and then exploring how it impacts the other parts of the
canvas. Explain that evolving the portfolio requires both convergent and divergent
thinking. Divergent thinking first produces many possible solutions to a problem. Then
convergent thinking helps select the most probable solutions and reject the others.
Finally, we identify business and enabler epics to advance the portfolio to a new
future state.
Note that this is modeled after design thinking - diverge and converge. The future
state canvas that you converge on could be one of the diverge options, or a
combination of several options.

Express the future state as a Vision
A long view: Vision: A postcard from the future

► How will our portfolio of future solutions solve
POSTCARD
the larger customer problems?
► How will these solutions differentiate us?
► What is the future context within which our

solutions will operate?
► What is our current business context, and how

must we evolve to meet this future state?
► Aspirational, yet realistic and achievable
► Motivational enough to engage others on the journey
Result: Everyone starts thinking about how to apply

their strengths in order to get there.
Switch: How to Change Things When Change is Hard, Heath and Heath,
Broadway Books, 2010
2-23
Trainer Guidance:
• The portfolio vision sets a longer-term context for near term decisions. Local
decisions are made in the light of a longer-term context, and inspirational — “this is
something really worth doing.”
• Lean-Agile leaders largely have their responsibility to set the strategic direction of
the company and to establish the mission for the teams who will implement that
strategy. In the book Switch, the authors call this longer-term view a ‘Destination
Postcard.’
• A postcard from the future is a vivid picture from the near-term future that shows
what could be possible. To create this postcard, imagine you are in that future.
What is happening around you? What do you see that tells you have reached your
goals? What do people say? Describe it in a concise (postcard-length), and
concrete way.
• People at work are thirsting for context, yearning to know that what they do
contributes to a larger whole. —Daniel Pink
• You’ve got to think about big things while you’re doing small things, so that all the
small things go in the right direction. —Alvin Toffler
References: Switch: How to Change Things When Change Is Hard, Heath and
Heath, Broadway Books, 2010

Prepare Share
Activity: Explore possibilities for future states 10

min
5
min
► Step 1: Working in your group,

develop one potential future state
SWOT analysis
canvas for TTC using the insights

TOWS analysis
derived from your TOWS analysis. Epic Epic
Enabler Epic
► Step 2: Be prepared to share with Current State

Portfolio Canvas
Future State
Portfolio Canvas
Epic Enabler
the class.
Divergent Convergent
Thinking Thinking
2-24
Trainer Guidance:
Encourage the participants to produce one future state, then to pick a block on the
canvas to alter and create a new canvas for that block to see the implications and the
relationships with the rest of the blocks.
Purpose: To develop a future state canvas from the TOWs analysis.
Trainer Instructions: Ask learners to work in their groups to develop a future state
canvas and share with the class.
found in your Virtual Classroom. A template and instructions are also provided is in
the Remote Group Document template.

2.3 Developing the portfolio Roadmap
2-25
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Roadmaps guide the organization to realize Strategic Themes
Less
detail Portfolio Roadmap
Typically, 1- 3+ years
Solution Roadmap
PI Roadmap 1 – 3 PIs
Current Plan 8 – 12 weeks
Iteration Plan
1 - 2 weeks
Daily Plan 1 day

More
detail
2-26
Trainer Guidance:
Roadmaps are the glue that links strategy to tactics. They are dynamic as the market
can change at any time. Consider discussing which role is associated with a specific
time horizon.

Each Solution within a portfolio has its own Roadmap
► A Solution Roadmap is a schedule of events and Milestones that

communicate forecasted Solution deliverables over a planning horizon.
► Roadmaps guide the development of the Solution over its natural lifecycle in
alignment with the portfolio Vision.
A utonom ous platform Route follow ing and Firstfield O n-road testing Terrific Transoport A utonom ous
integration w ith vehicle lane keeping v1.0 test certification D elivery Vehicle v1.0 vehicle auto show
Q1 Q2 Q3 Q4 H1 H2 Y3 Y4
GPS Follow route Make turns Perform Delivery Spike Perform delivery tests
Surround cameras Stay in lane Obey traffic laws Avoid obstacles
Forward radar Forward collision Ultrasonic sensors Go thru intersection Self-park
2-27
Trainer Guidance:
Emphasize that a roadmap is a forecast that will be dynamically adjusted based on

business context and emerging realities.

Portfolio Roadmap offers a comprehensive view across all Value Streams
It integrates various aspects

Portfolio Roadmap
of lower-level Roadmaps
into a more comprehensive
Route following Traffic Transport Autonomous
Autonomous platform and lane keeping v1.0 First field test On-road testing Delivery Vehicle Vehicle Auto
integration with Vehicle certification v1.0 show
view, which communicates

the larger picture to the
Q1 Q2 Q3 Q4 H1 H2 Y3 Y4
Enterprise stakeholders. Enabler Epic Epic Enabler Epic
Enabler Epic Epic Epic
Enabler Epic Enabler Epic Epic
Forecasted work Forecasted work Forecasted

Solution Roadmap in quarters in half years work in years
Q1 Q2 Q3 Q4 H1 H2 Y3 Y4
GPS Follow route Make turns Perform Delivery Spike Perform delivery tests
2-28
Trainer Guidance:
This slide illustrates a portfolio level roadmap that covers about three years. The first
year is planned in quarters (e.g., Q1, Q2, etc.), which may or may not align with PI
boundaries. The second year is planned in 6-month increments (e.g., H1 and H2).
Anything beyond that is scheduled in years (e.g., Y3 and Y4). As the time horizon
extends, the level of granularity and certainty is significantly reduced. This roadmap is
a roll-up of lower-level roadmaps which communicates the larger solution
development picture to enterprise stakeholders.
Note that not every Solution will be listed. In this kind of structure, look for solution or
product families or other groupings of the individual products.

Forecasting portfolio Epics for roadmapping
Forecasting an Epic’s duration requires an understanding of three data points:

► An Epic’s estimated size in Story points for each affected ART
► The historical velocity of the affected ARTs
► The percent (%) capacity allocation that can be dedicated to working on the
Epic as negotiated between Product and Solution Management, Epic Owners,
and the LPM team
Estimated size range Negotiated Available points

for each ART’s ART PI ART capacity for for Epic 1 Forecasted # of PIs
portion of Epic 1 velocity Epic 1 (velocity * capacity) (size / points)
ART 1 2000 – 2500 1000 40% 400 5-7
ART 2 500 – 800 500 25% 125 4-7
Supplier ART 1500 – 1800 500 50% 250 6-8

2-29
Trainer Guidance:
It can be challenging to forecast the duration of an epic implemented by a mix of

internal ARTs and external suppliers.
Forecasting an epic’s duration requires an understanding of three data points:

1. An epic’s estimated size in story points for each affected ART, which can be
estimated using a t-shirt estimation technique, which has a range of story points
2. The historical velocity of the affected ARTs
3. The percent capacity allocation that can be dedicated to working on the epic as
negotiated between Product and Solution Management, epic owners, and LPM

Market rhythms help identify valuable release windows
The ‘value’ is highest

during the high-volume
holiday season.
On our business
The ‘value’ of the release is Optimal release

Impact:
relatively constant, meaning Optimal release window

we can release anytime! window
Low Value
The ‘value’ plummets because retailers

‘lock down’ production environments
and don’t want to change their backend
Q1 software during the holiday season. Q4
Time: When should we release? B2B Retail Software
B2C Social Media
Toy Maker 2-30

Trainer Guidance:
This slide explores the specifics and has some examples around market rhythms.
Product managers need to create their own market rhythms for their unique markets.
The release window precedes the actual release.
When we say the value of the release is relatively constant for a social media
platform, we mean that there isn’t a strong difference in perceived customer value as
determined by the timing of the release. We contrast this with a toy, when the value of
the toy is greatest during the holiday shopping season.

Market milestones also help identify valuable release windows
We want to beat the

competition!
High Value Our customers Expected

need time to release by
prepare competitor
To our business
We want to
leverage new tech
Impact:
Known
change to after it is stable
regulations
Potential
technology
change
Low Value
Q1 Q2 Q3 Q4
Time: When should we release? B2B Retail Software
B2C Social Media
Toy Maker 2-31

Trainer Guidance:
Each of these key market-driven milestones has its own unique value curve.
The value of a release can plummet if the market-driven milestone is not realized.
The release can sometimes follow the milestone.
These curves are not formally correlated with the PI planning and execution cadence.
Use these curves to help determine release on demand opportunities.

Market rhythms and milestones influence roadmaps
Route following
Autonomous platform and lane keeping First field test On-road testing
integration with Vehicle v1.0 certification
Influence Q1 Q2 Q3 Q4 H1 H2 Y3
Medical specimens (hospitals) Medical specimens (clinics)

Follow route Make turns Stay in lane Forward collision Self park
GPS Surround cameras Forward radar Ultra sonic sensors Delivery spike
Market Rhythms
GPS integrated with Camera integration
Annual Automotive vehicle prototype with vehicle prototype
suppliers event
PI 1 PI 2 PI 3
Selection of mapping GPS Surround cameras

software Change lane
Rear camera
Front camera
Follow straight path
Radar components
Detect fixed obstacles
Install communications on
mule
Uncommitted Objectives
Send real-time status
Market Events Committed

Forecast
2-32
Trainer Guidance:
This slide introduces rhythms and events that inform solution and PI roadmaps.

Prepare Share
Activity: Identify market rhythms and milestones 10

min
5
min
► Step 1: Working in your group, identify

market rhythms and milestones that
TTC may be able to leverage in the
autonomous delivery vehicle market.

class.
2-33
Trainer Guidance:
Ask learners to work in groups using provided templates to identify market information
for TTC.
Purpose: To identify market rhythms and milestones for TTC.
found in your Virtual Classroom. A template and instructions are also provided in the
Remote Group Document template.

Duration
Action Plan: Establish portfolio strategy and vision 5

min
► Step 1: Consider the topics discussed in

this lesson.
► Step 2: Identify three action items.
► Step 3: Share your insights with the class.
2-34
Trainer Guidance:
Action plan pages are provided in the learners’ digital workbooks. Allow the time
lesson.

Lesson review
In this lesson you:

► Constructed well-written Strategic Themes
► Explored a current and a future state of a portfolio
► Described the portfolio Roadmap
2-35
Trainer Guidance:


► "Lean Budget Guardrails"

/guardrails/
2-36
Trainer Guidance:
Links:
• https://www.scaledagileframework.com/guardrails/

Use the practice guide, “Organize: A Change Download the “Strategic Themes Template” to
Leader’s Guide to Implementing Lean Portfolio assist in identifying your strategic themes.
Management,” to review the critical steps https://bit.ly/Template-StrategicThemes
for implementation.
https://bit.ly/PG-LeadersGuidetoImplementingLPM
Visualize the action items within the adoption Watch the sixty-minute webinar,
journey by downloading the “LPM Growing LPM Capabilities, to learn how
Implementation Roadmap”. to manage and define your portfolio.
https://bit.ly/Community-LPMRoadmap https://bit.ly/Video-GrowingLPMCapabilities
Watch this two-minute video, Starting the

LPM Conversation, to prepare for discussing the
need for implementing LPM with stakeholders.
https://bit.ly/Video-StartingLPMConversation
2-37
Trainer Guidance:
Links:
• https://bit.ly/PG-LeadersGuidetoImplementingLPM
• https://bit.ly/Template-StrategicThemes
• https://bit.ly/Community-LPMRoadmap
• https://bit.ly/Video-GrowingLPMCapabilities
• https://bit.ly/Video-StartingLPMConversation

Lesson 3
Realizing Portfolio Vision
through Epics
Trainer Guidance:

targets.

Executives
Business Enterprise
3-2
Trainer Guidance:

Strategy
Lesson Topics & Investment

Funding
3.1 Defining portfolio Epics Enterprise

Executives
3.2 Estimating Epic costs Business

Owners
Enterprise
Architect
3.3 The SAFe Lean

Startup Cycle Lean
Agile
Portfolio
APMO

3-3
Trainer Guidance:
Review the lesson topics with the class. This lesson will focus on the Strategy and
Investment Funding dimension of the Lean Portfolio Management competency.

Learning objectives
► Define portfolio Epics
► Explain how to estimate Epic costs
► Describe the benefits of the SAFe Lean Startup Cycle
3-4
Trainer Guidance:

3.1 Defining portfolio Epics
3-5
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

What is a portfolio Epic?
► An Epic is a significant Solution development Epic Enabler

initiative. There are two types:
– Business Epics directly deliver business Portfolio

value. Backlog
– Enabler Epics support the Architectural Feature Feature Enabler
Runway and future business functionality. Feature

Enabler
Enabler
Feature
Enabler
Feature Feature
► Portfolio Epics are typically cross-cutting, Program
Backlog
typically spanning multiple Value Streams and
PIs. Story Story Story Enabler
Story Story Enabler Enabler
► Epics need a Lean business case, the definition Enabler

Story
Story
Story
Story
Story
of a minimum viable product (MVP), an Epic
Team
Owner, and approval by LPM. Backlog
3-6
Trainer Guidance:
Emphasize that, in the simplest terms, Epics represent a significant opportunity, not a
large collection of Features. There can be lots of great ideas that don't qualify as
Epics. They may be more appropriately planned as Features. Also, not all Epics are
portfolio Epics.

Epics are not projects
Epics Projects
Implemented by stable, cross-functional Implemented by temporary teams, which
Value Streams and ARTs. disband after work is completed.
No definitive start and end date; scope is Definitive start and end date; scope is fixed. All
variable. Continue until WSJF says otherwise. scope must be implemented.
Progress is measured as outcomes against Progress is measured based on task
the benefit hypothesis. completion.
Lean Business Case, based on benefit Overly detailed business case, based on
hypothesis and definition of an MVP. speculative ROI.
Implementation follows the build – measure – Implementation typically follows phase-
learn SAFe Lean Startup Cycle. gated, sequential (waterfall) process.
After the Lean Business Case is approved, After business case is approved, up-front
commitment is to the evaluation of the MVP. commitment is made to the entire project scope.
3-7
Trainer Guidance:
It’s important to note that Epics are not merely a synonym for projects; they operate
quite differently, as the slide highlights. SAFe generally discourages using the project
funding model. Instead, the funding to implement Epics is allocated directly to the
value streams within a portfolio. Moreover, Agile Release Trains (ARTs) develop and
deliver Epics following the Lean startup cycle. It’s an anti-pattern if organizations
simply replace projects with Epics and treat them the same. There is a stark
difference between the two. Showcase the difference using the table on this slide.

Achieve the future state of the portfolio with Epics
Epics are the container for work used to achieve portfolio-level initiatives and are
implemented by ARTs using the SAFe Lean Startup Cycle.
1 Explore possibilities 2 Make decisions 3 Identify Epics
Epic Epic
Enabler Epic
Portfolio Canvas Epic Enabler
Portfolio Canvas
Divergent Convergent
Thinking Thinking
3-8
Trainer Guidance:
Envisioning the future state helps define the vision for the portfolio. The difference
between the current and future state represents the gap, which is translated into the
vision to attain the future state.

Decomposing portfolio Epics into program or Solution Epics
Sometimes it’s helpful to split portfolio Epics into program or Solution Epics to facilitate
incremental implementation. In other cases, it’s best to split them directly into Features.
► Local Epics created by ARTs or Solution Trains may
need LPM visibility and approval.
- Epics above the portfolio threshold will need review Enabler Program Epic ART 1
and approval through the Portfolio Kanban system.
Portfolio
- If below the threshold, Epics are managed thorough
Program Epic ART 2
Epic
the program or Solution Kanban systems. Program Epic ART 3
► All Epics require a Lean business case and the PI PI PI PI

definition of an MVP, regardless of where they were
created.
3-9
Trainer Guidance:
The purpose of program and solution Epics can sometimes feel like a paradox: If
SAFe promotes decentralization of decisions, then why do we need program and
solution Epics?
The answer is based on how SAFe promotes healthy collaboration and trust-based
relationships. Let’s assume that there is a married couple. Both partners are runners.
The couple also have a very old car. The car is so old that it is breaking down quite
frequently and the mechanic has suggested that the repairs are going to become
even more expensive in the future. Accordingly, the couple has agreed that they will
not make any more repairs and will purchase a new car in the next few months.
Let’s assume one partner purchases a new pair of running shoes. It is unlikely that
the other partner would care about the purchase because it small and part of the
normal budgeting and expense process.
However, if one partner purchased a new car without consulting the other person, it is
highly likely that their relationship would suffer, precisely because the other partner
was not consulted. It doesn’t matter that the couple had previously agreed that they
would eventually make the investment in a new car. The point is that this is the kind of
large, infrequent expense that should be discussed. That’s a key purpose of a SAFe
Program Epic: It is designed to promote healthy relationships among a group of
people. Once we have defined a program Epic, the rest of this guidance follows.
Program Epics are maintained, if needed, on a program Epic Kanban board.

Epic Owners coordinate Epics through the portfolio Kanban system
They may also have some responsibility for supporting the Epic as it moves
downstream through the Continuous Delivery Pipeline to Release-on-Demand.
Business Enabler
Epic Epic
Typical Epic Owners for Business Epics Typical Epic Owners for Enabler Epics
Product Solution Business System Solution Enterprise

Mgmt Mgmt Owners Arch/Eng Arch/Eng Architect
3-10
Trainer Guidance:
This Epic owner is the one responsible for shepherding the Epic through the portfolio
approval process and for guiding the Epic through implementation in parallel with the
product manager. Capabilities or features can trip the economic threshold for an Epic.
In those cases, consider the Epic and capture the benefits in a Lean business case.

Epic Owners collaborate closely with other groups
They collaboratively define the Epic, MVP, and Lean business case, and—when approved—
facilitate its implementation.
► Business Owners – Synchronize business

priorities with LPM and ARTs
► Product and Solution Management – Split Epics, Business Teams

Owners
prioritize business Features and Capabilities
Epic Owners
► System Architects and Engineers – Split Enabler
Epics, prioritize Enabler Features and
Capabilities, work with Enterprise Architects to
align with technology standards and Roadmaps Product and Solution Solution and system
Management Architects/Engineers
► Agile Teams – Build and test MVPs, implement
additional Features
An Epic Owner can only be effective by
collaborating closely with other groups.
3-11
Trainer Guidance:
Epic owners are responsible for coordinating Epics through the portfolio Kanban
system. They collaboratively define the Epic, its minimum viable product (MVP), and
Lean business case, and when approved, facilitate implementation. Epic owner works
directly with the agile release train (ART) and solution train stakeholders to define the
features and capabilities that realize the value of approved Epics. They may also
have some responsibility for supporting the initiative as it moves downstream through
the continuous delivery pipeline to release on demand.

Epics are initially described with the Epic hypothesis statement
Epic hypothesis statements are described Epic Hypothesis Statement
with four major fields: Funnel Entry Date:

Epic Name:
<The date that the epic entered the funnel.>
<A short name for the epic.>
Epic Owner: <The name of the epic owner.>
► The value statement – Describes the Epic in Epic Description: <An elevator pitch (value statement) that describes the epic in a
clear and concise way.>
general terms: the “for-who-the …” portion

For <customers>
who <do something>
► Business outcomes hypothesis – States the the <solution>

is a <something – the ‘how’>
quantitative or qualitative benefits that the that <provides this value>
business can anticipate if the hypothesis is unlike (competitor, current solution or non-existing solution>
our solution <does something better – the ‘why’>
proven to be correct
Business Outcomes: <The measurable benefits that the business can anticipate if the
► Leading indicators – Describe the early epic hypothesis is proven to be correct.>
measures that will help predict the business Leading <The early measures that will help predict the business outcome
Indicators: hypothesis. For more on this topic, see the Innovation Accounting
outcomes advanced topic article.>
Nonfunctional <Nonfunctional requirements (NFRs) associated with the epic.>

► Nonfunctional requirements (NFRs) – Identify Requirements
(NFRs):
any NFRs associated with the Epic

Blank Collaborate template for future use: https://bit.ly/Template-EpicHypothesisStatement
3-12
Trainer Guidance:
Reasoning about a potential Epic must be based on a definition and intent that
stakeholders can agree on. The Epic Hypothesis Statement template serves as a tool
that can be used to capture, organize, and communicate critical information about an
Epic.
Since Epics are some of the most significant enterprise investments, stakeholders
need to agree on their intent and definition. This slide provides an Epic hypothesis
statement template that can be used to capture, organize, and communicate critical
information about an Epic.
Access the blank Collaborate template for future use here: https://bit.ly/Template-
EpicHypothesisStatement

Epics are analyzed and approved using the Lean business case
During the analysis state, the following

activities typically occur:
► Identification and review of Solution

alternatives
► Definition of the MVP
► Cost estimates for the MVP and the

anticipated scope of the entire Epic
► Presentation of the Lean business case

for a go/no-go decision by LPM
Blank Collaborate template for future use: https://bit.ly/Template-LeanBusinessCase

3-13
Trainer Guidance:
The LPM reviews the Lean business case to make a go or no-go decision for the
Epic. Once approved, portfolio Epics stay in the portfolio backlog until implementation
capacity and budget becomes available from one or more ARTs. The Epic Owner is
responsible for working with Product and Solution Management and System
Architect/Engineering to split the Epic into Features or Capabilities during backlog
refinement. Epic Owners help prioritize these items in their respective backlogs and
have some ongoing responsibilities for stewardship and follow-up.
You can download the Lean Business Case template from the Epic Article here:
https://www.scaledagileframework.com/epic/, or you can access the blank
Collaborate template for future use here: https://bit.ly/Template-LeanBusinessCase

Epic MVPs promote rapid experimentation and learning
A SAFe minimum viable product (MVP) is an early version of a new product, service, or Solution
that requires the minimum investment necessary to validate the Epic hypothesis.
► As opposed to story boards, prototypes, mockups,

and other exploratory techniques, the MVP is an
Build
actual product that can be used by real customers to
generate validated learning. Design Lean
Thinking Startup
► It’s helpful to think of the MVP as the smallest portion

MVP
of an Epic needed to validate the Epic hypothesis. Learn Measure
This smaller scope enables many low-cost
experiments to be conducted to evaluate the MVP.
► MVPs enable faster learning, less risk, better

decisions, and improved time-to-market.
3-14
Trainer Guidance:
Analysis of an Epic includes the definition of a Minimum Viable Product (MVP) for the
Epic. In the context of SAFe, an MVP is an early and minimal version of a new
product or business solution that is used to prove or disprove the Epic hypothesis. As
opposed to story boards, prototypes, mockups, wire frames and other exploratory
techniques, the MVP is an actual product that can be used by real customers to
generate validated learning.

Duration
Video: Establish leading indicators with innovation 2

accounting
min
https://bit.ly/Video-InnovationAccounting
3-15
Trainer Guidance:
This cycle and methods for evaluation and measurement are common ground in
innovation accounting. The video on this slide provides a short overview of how
innovation accounting uses measures such as leading indicators that enable us to
quickly evaluate the minimum viable product. You can watch it directly form the PPT
slide or from the application in the LPM Trainer Enablement Plan on the Community
Platform.
Link: https://bit.ly/Video-InnovationAccounting

Prepare Share
Activity: Describe portfolio Epics 10

min
5
min
Epic Hypothesis Statement

► Step 1: Working in your group, define Funnel Entry Date: <The date that the epic entered the funnel.>
the following Epic for TTC:

Epic Name: <A short name for the epic.>
Epic Owner: <The name of the epic owner.>
Epic Description: <An elevator pitch (value statement) that describes the epic in a
- Expand autonomous delivery into the

For <customers>
healthcare market segment who <do something>

the <solution>
is a <something – the ‘how’>
Step 2: Be prepared to share with the

that <provides this value>
► unlike (competitor, current solution or non-existing solution>
class.
Business Outcomes: <The measurable benefits that the business can anticipate if the
epic hypothesis is proven to be correct.>
Leading <The early measures that will help predict the business outcome
Indicators: hypothesis. For more on this topic, see the Innovation Accounting
advanced topic article.>
Blank Collaborate template for future use:

https://bit.ly/Template-EpicHypothesisStatement Requirements
(NFRs):
3-16
Trainer Guidance:
Purpose: The purpose of this workshop is to be able to describe the Epics using the
Epic Hypothesis Statement.
Remote Guidance: A Collaborate template and instructions for this activity is

provided in your Virtual Classroom. A template and instructions are also included in
the Remote Group Document Template. Alternatively, learners have access to a
template in their digital workbooks.
Access the blank Collaborate template for future use here: https://bit.ly/Template-
EpicHypothesisStatement

Prepare Share
Discussion: Adapting the Lean business case 10 5
template min min
► Step 1: Working in your group, assess the

Lean business case template:
– What are some of the main attributes of

the Lean business case?
– How would you adapt the Lean business

case template to better fit your business
context?
– Identify anything in the Lean business

case that you don't understand.

Blank Collaborate template for future use here: https://bit.ly/Template-LeanBusinessCase
3-17
Trainer Guidance:
Purpose: Facilitate this discussion to ensure that learners understand all parts of the
Lean business case and that it can be adapted to a particular portfolio context. Stress
that any changes to the business case must be aligned with SAFe principles and
values so we don’t revert to a waterfall way of working.
provided in your Virtual Classroom. A template and instructions are also provided in
the Remote Group Document Template.
You can download the Lean Business Case from the Epic article here:
https://www.scaledagileframework.com/epic/ or you can access the blank Collaborate
template for future use here: https://bit.ly/Template-LeanBusinessCase

3.2 Estimating Epic costs
3-18
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Epic estimates include both internal and external costs
► Large strategic efforts often require

collaboration with external
Suppliers to develop Solutions.
► The MVP and the anticipated full

implementation cost estimates
should include both the internal
costs plus forecasted external
Supplier expenses.
3-19
Trainer Guidance:
As Epics progress through the portfolio Kanban, the LPM team will eventually need to
understand the potential investment required to realize the hypothesized value. This
requires a meaningful estimate of the cost of the MVP and the forecasted cost of the
full implementation should the Epic hypothesis be proven true. The MVP cost ensures
the portfolio is budgeting enough money to prove/disprove the Epic hypothesis and
helps ensure that LPM is making investments in innovation in accordance with lean
budget guardrails the forecasted implementation cost factors into ROI analysis, help
determine if the business case is sound, and helps the LPM team prepare for
potential adjustments to value stream budgets.

Establishing Epic cost estimates
It's better to be approximately right than precisely wrong. –Warren Buffett
► T-shirt sizes simplify estimating Epic T-shirt estimates

Epics in the early stages.
2M+
XXL
► A cost range is established for each

t-shirt size using historical data. XL 1M – 1.5M
► The gaps in the cost ranges reflect L

500K – 800K
the uncertainty of estimates.
► Each portfolio must determine the M 250K – 400K

relevant cost range for the t-shirt
sizes.
S 100K – 200K
3-20
Trainer Guidance:
T-shirt sizing is a cost estimation technique in which LPM, Epic Owners, and other
relevant stakeholders collaborate on the placement of Epics into bands of similar
sizing. A cost range is then established for each band using known historical data.

The Lean business case has two cost elements
► Anticipated ‘full’ implementation cost

- The estimated cost for implementing the full
anticipated scope of the Epic
- Refined based on the learnings from the MVP
► MVP cost
- The estimated investment needed to fund the
MVP to validate the Epic hypothesis
- Once approved, this cost is considered a hard
limit, and the value stream will not spend more
than this cost in building and evaluating the MVP
without additional approval from LPM
3-21
Trainer Guidance:
The MVP cost is created by the Epic Owner in collaboration with other key
stakeholders. It should include an amount sufficient to prove or disprove the MVP
hypothesis. Once approved, the MVP cost is considered a hard limit, and the value
stream will not spend more than this cost in building and evaluating the MVP. If the
value stream has evidence that this cost will be exceeded during Epic
implementation, further work on the Epic should be stopped.
The MVP and/or the full implementation cost is further comprised of costs associated
with the internal value streams plus any costs associated with external suppliers. It is
initially estimated using t-shirt sizing and refined over time the MVP is implemented.

Estimating Supplier cost with Agile contracts 8
Estimate Epics delivered by Suppliers by applying Agile contracting.
► Agile development requires more

flexible contracts and cost estimate
techniques.
► All parties are equally incentivized to

collaborate toward the most cost-
effective Solution.
http://www.scaledagileframework.com/agile-contracts/
3-22
Trainer Guidance:
Link: http://www.scaledagileframework.com/agile-contracts/

Duration
Video: Estimating Supplier cost with Agile 8
contracts min
SAFe
Managed-
Investment
Contract
https://bit.ly/Video-SAFeManagedInvestment
3-23
Trainer Guidance:
Link: https://bit.ly/Video-SAFeManagedInvestment

3.3 The SAFe Lean Startup Cycle
3-24
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Epics are implemented using the SAFe Lean Startup Cycle
What if we found ourselves building something that nobody wanted? In that case, what did it
matter if we did it on time and on budget? —Eric Ries, The Lean Startup
► The Lean startup process promotes building new

products, services, and Solutions through a
combination of experimentation, iterative releases,
and fast validated learning.
► Customer feedback is key to the Lean startup

process and ensures that the company does not
invest time designing Solutions that Customers do
not want.
3-25
Trainer Guidance:
In SAFe, Epics are motivated by The Lean Startup. If you haven't read the book,
please read it and discuss the fact that customers' feedback during development is
integral to the Lean startup process. We need to ensure we're not building things that
our customers do not want.

Achieving the Vision with the SAFe Lean Startup Cycle
Apply the SAFe Lean Startup Cycle to create an MVP for Epics to accelerate
learning, accelerate Solution development, and reduce risk.
Create new epic and hypothesis
Yes
Build and No
Hypothesis
Epic evaluate MVP
proven?
Pivot?
Epic state: MVP
Approved Lean business case
Portfolio
with a defined MVP and
Kanban No
business outcome hypothesis Yes
Epic state: Portfolio Backlog
Stop
Development continues
Note: Many Epic state: Persevere
experiments are or Development stops
done here! When portfolio governance no Epic state: Done
longer required
Epic state: Done
Continue
Local features and until WSJF
other epic input determines
otherwise
Program Kanban systems
3-26
Trainer Guidance:
The Lean startup cycle strategy recommends a highly iterative build-measure-learn

cycle for product innovation and strategic investments. This strategy for implementing
Epics provides the economic and strategic advantages of a lean startup by managing
investment and risk incrementally while leveraging the flow and visibility benefits of
SAFe. Gathering the data necessary to prove or disprove the Epic hypothesis is a
highly iterative process that continues until a data-driven result is obtained or the
team consumes the MVP budget. In general, the result of a proven hypothesis is an
MVP suitable for continued investment by the value stream. Continued investment in
an Epic that has a disproven hypothesis requires the creation of a new Epic and
approval from the LPM function.

Lean startup pivot examples
1. Customer segment pivot – The product may prove

popular but not with the user or customer segment
that was initially targeted. The value proposition, Examples
pricing, and channels will need to be revisited.
Uber
2. Customer need pivot –The customer is facing a
different problem than what was hypothesized. Twitter
3. Value capture pivot – This pivot changes how the
YouTube
business captures value, typically by charging Pinterest
customers money. Instagram
4. Zoom-in pivot (Feature pivot) – One Feature in the Starbucks
MVP gets far more traction and interest than all the
others. You can pivot by offering a new product that
offers that one Feature only.
3-27
Trainer Guidance:
Provide examples of each type of pivot. The value capture pivot is unique to safe. The
development of the SAI SLS is an example of a value capture pivot: SAI started
selling individual subscriptions and corporate customers wanted to pay for these
subscriptions in bulk. Product management and portfolio managers would collaborate
on these pivots.
Here are some examples of business Epic pivots that can spur compelling
conversations: https://www.Forbes.Com/sites/jasonnazar/2013/10/08/14-famous-
business-pivots/#10af17665797.
Another example for a customer segment pivot is Jimdo. It started as a company to

help businesses create e-commerce websites and pivoted based on customer
feedback to a website that helps individuals create websites.

Evaluating a potential pivot
► A pivot doesn't necessarily mean stop; a

pivot means you may have another
hypothesis worthy of testing.
► Stakeholders should return to the Lean

business case to help assess the impact
of pivoting.
► Beware of the sunk cost trap in which

committed stakeholders continue working
on the product even when the data
suggests they should stop.
► If a pivot is warranted, a new Epic is

created.
3-28
Trainer Guidance:
Lastly, discuss how to use the lean business case to assess a potential pivot. A
portfolio without pivots is likely missing the mark. ‘Projects’ are the death of Agile
because the goal is to get to the end of the project and deliver as planned, doesn't
encourage failures or pivots.

Prepare Share
Discussion: Exploring pivots 7

min
3
min
► Step 1: Working as a group, discuss

Customer Value
the four pivots described in this Capture
Need
lesson and identify a situation where
one of them would have been
helpful to make a course correction. Customer Feature
Segment Pivot
the class.
3-29
Trainer Guidance:
The purpose of this discussion is to consider the importance of evaluating a potential

pivot.
Remote Guidance: A Collaborate template and instructions for this discussion are
provided in Virtual Classroom. A template and instructions are also included in the
Remote Group Document Template.

Duration
Action Plan: Managing innovation 5

min
► Step 1: Reflect on the topics discussed in

this lesson.
► Step 2: Write three action items you can

take to manage innovation through the
SAFe Lean Startup Cycle.
► Step 3: Share your insights with the class.
3-30
Trainer Guidance:
lesson.

Lesson review
In this lesson you:
► Defined portfolio Epics
► Explained how to estimate Epic costs
► Described the benefits of the SAFe Lean Startup Cycle
3-31
Trainer Guidance:

► “Agile Contracts”
https://www.scaledagileframework.com/
agile-contracts/
► “Value Stream Coordination”
value-stream-coordination/
► “Applied Enterprise Workflow with
SAFe”
guidance-article-applied-enterprise-
workflow-with-the-safe-portfolio-
kanban/
3-32
Trainer Guidance:
Links:
• https://www.scaledagileframework.com/agile-contracts/
• https://www.scaledagileframework.com/value-stream-coordination/
• https://www.scaledagileframework.com/guidance-article-applied-enterprise-
workflow-with-the-safe-portfolio-kanban/

Download “The Facilitator’s Guide to SAFe: Lean Listen to this 17-minute podcast, “Enterprise
Portfolio Management: Explanation of Portfolio Strategy Formulation and Lean Portfolio
Epics” to learn more about the relationship Management,” to learn how enterprise strategy
between Epics and other SAFe backlog items. relates to LPM.
https://bit.ly/Toolkit-ExplanationofPortfolioEpics https://bit.ly/Podcast-
EnterpriseStrategyFormulation
Listen to this 23-minute podcast, “LPM and SAFe, Access the Collaborate template, “SAFe Solutions
Lean Agile Budgeting and More,” to learn how by Horizon,” to collaboratively map Solutions and
SAFe enables LPM. https://bit.ly/Podcast- Portfolios.
LPMandSAFeLean-Agile https://bit.ly/Template-SolutionsbyHorizon
Read this blog post, “Avoid Saturation to Land

Change Well,” to learn about avoiding change
fatigue.
https://bit.ly/Article-AvoidChangeSaturation
3-33
Trainer Guidance:
Links:
• https://bit.ly/Toolkit-ExplanationofPortfolioEpics
• https://bit.ly/Podcast-EnterpriseStrategyFormulation
• https://bit.ly/Podcast-LPMandSAFeLean-Agile
• https://bit.ly/Template-SolutionsbyHorizon
• https://bit.ly/Article-AvoidChangeSaturation

Lesson 4
Establishing Investment Funding

to the SAFe Lean Portfolio Manager exam and related
Trainer Guidance:

targets.

Executives
Business Enterprise
4-2
Trainer Guidance:

Strategy

Funding
4.1 Lean Budget Guardrails Enterprise

Executives
4.2 LPM events overview Business

Owners
Enterprise
Architect
4.3 Strategic Portfolio

Review and Portfolio Sync Lean
Agile
Portfolio
4.4 Participatory Budgeting
APMO

4-3
Trainer Guidance:
enterprise-class technology-based solutions with high quality and fast time to market.

Learning objectives
► Describe the need for the four Lean Budget Guardrails
► Explain the purpose of the LPM events
► Explore how to establish Value Stream budgets
4-4
Trainer Guidance:

4.1 Lean Budget Guardrails
4-5
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
The key points for this learning objective are:

• Lean Budget Guardrails describe budgetary governance and spending policies and
practices for the Lean Budgets allocated to a specific portfolio.
• These can be driven by–and are drivers of–elements of the business strategy.

Each portfolio establishes a set of budget Guardrails
Guardrails describe portfolio-level budgeting,

Lean Budget Guardrails
spending, and governance policies that:
Guiding investments Applying capacity
1. Ensure the mix of investments balance near-term by horizon allocation
opportunities with long-term strategy and growth
1 2
2. Balance the backlog of new business Features with

the need to continuously invest in the Architectural
Runway
Lean Budgets
3. Ensure large, significant investments (Epics) are

approved appropriately
W W
S S
4. Actively engage Business Owners to ensure the 3 4

J J
F F
alignment of priorities of the ARTs and portfolio Approving significant Continuous Business
initiatives Owner engagement
4-6
Trainer Guidance:
Lean Budget Guardrails describe the policies and practices for budgeting, spending,
and governance for a specific portfolio. SAFe provides strategies for Lean budgeting
that eliminates the overhead of traditional project-based funding and cost accounting.
In this model, LPM maintains appropriate levels of oversight through the allocation of
value stream budgets and by applying Lean Budget Guardrails. This way, enterprises
can have the best of both worlds: a development process that is far more responsive
to market needs, with professional and accountable management of spending.

Guiding investments by horizons 1
Ensure the mix of investments balance near-term opportunities and long-term

strategy and growth.
Portfolio H orizon 3 H orizon 2 H orizon 1 H orizon 0
LPM identifies the percentage of

the portfolio budget to be invested D EC O M M ISSIO N
to each horizon.
D EC O M M ISSIO
N
Development Value Streams H orizon 3 H orizon 2 H orizon 1 H orizon 0
The percentage invested in each

horizon for a Value Stream may D EC O M M ISSIO N
D evelopm entValue Stream 1
not match the overall portfolio.
D evelopm entValue Stream 2
D EC O M M ISSIO
N
4-7
Trainer Guidance:
As described in Lean budgets, portfolio investments are organized in accordance with

investment horizons that reflect four-time horizons. The amount of budget that a given
value stream allocates to solutions in these horizons determines the near- and long-
term health of both the value streams and portfolio. For example, a value stream
solely focused on a horizon one solution may be under-investing in future solution
innovations, creating long-term risk. This may be balanced by the portfolio’s intention
to move the solution into horizon zero for subsequent decommissioning to enable the
value stream to focus on other, more promising solutions. Accordingly, LPM
establishes portfolio-level guidance for investments to optimize the whole, while
promoting decentralization so that individual value streams can optimize
their solutions.

Apply capacity allocation to optimize value and Solution integrity 2
► LPM provides a recommended

capacity allocation for new local Portfolio Capacity Allocation
Features, local Enablers, Features
from Epics and technical debt and 10% Features
maintenance across the portfolio. Recommended

75%
Enablers
capacity
15% Tech debt
allocation
and maintenance
► Capacity allocations will
periodically change based on the
portfolio context. Capacity Allocation
Capacity Allocation
Value Stream Capacity Allocation
► The capacity allocation of a given
Features
Value Stream may not match the Features
Enablers
Features
30%
recommended capacity allocation Enablers
TechEnablers
Debt
50% Tech Debt
of the portfolio. 20%
and Maintenance
Tech debt
and Maintenance
and maintenance
4-8
Trainer Guidance:
Lean budgeting enables decentralized decision-making and more efficient execution.

However, one of the challenges every ART and solution train faces is how to balance
the backlog of new business features with the need to continuously invest in the
architectural runway, maintain current systems, avoid velocity reduction, and replace
components or solutions due to technological obsolescence. Balancing business
features and enablers complicates the challenge of prioritizing work, since different
forces can pull the teams in different directions. Capacity allocations can be reviewed,
and if needed, adjusted, at any LPM sync event.

Establish portfolio Epic thresholds 3
This threshold is defined by the LPM function to determine which Epics are a portfolio
concern based on forecasted cost, number of PIs, strategic importance to the portfolio,
or a combination of factors.
Epic requires review and

Above approval through Portfolio
Kanban system
Identify Does it exceed
significant portfolio
initiative threshold?
Below Epic is managed through

Program/Solution Kanban
4-9
Trainer Guidance:
While each value stream is funded to promote empowerment and local decision-
making authority, it is reasonable to ensure that significant investments are
responsibly governed. The graphic on the slide shows that a significant initiative has
been identified. It then goes through a decision filter to determine whether it exceeds
the portfolio Epic threshold, which is established by LPM.
Below threshold – If the Epic estimate is below the portfolio Epic threshold, approval
is managed through the program or solution Kanban systems.
Above threshold – If the Epic estimate exceeds the portfolio Epic threshold, it requires
review and approval through the portfolio Kanban system, regardless of which level
the initiative originates.
The portfolio Epic threshold is defined by LPM to determine which Epics are a
portfolio concern. Example thresholds include forecasted Epic cost, forecasted
number of PIs to implement an Epic, strategic importance of the Epic or a
combination of these factors.

Continuous Business Owner engagement 4
► Business Owners ensure that:
– The priorities of the ARTs and Solution Trains

are in alignment with the portfolio
Customer
– Investments are spent on the right things at the Product and Solution
Lean Portfolio
right time Management
Management
► Business Owners actively engage by:

Business
– Communicating the Portfolio Vision Owners
WSJF WSJF
– Assisting in the preparation for the upcoming PI
– Attending PI Planning, reviewing plans, and
assigning business value
– Attending Inspect and Adapt, and helping
resolve problems
4-10
Trainer Guidance:
Business owners are uniquely qualified to ensure that the funding allocated to value
streams is going toward the right things. Therefore, they serve as a critical guardrail
that ensures that the priorities of the ARTs and solution trains are in alignment with
LPM, customers and product, and solution management, as illustrated on the slide.

Duration
Video: Business Owners in SAFe 3

min
https://bit.ly/Video-BusinessOwnersSAFe
4-11
Trainer Guidance:
Link: https://bit.ly/Video-BusinessOwnersSAFe

Prepare Share
Activity: Establish Lean Budget Guardrails 10

min
5
min
► Step 1: Working in your group, Applying capacity

Guiding investments
establish guardrails for the TTC by horizon allocation
Portfolio 1 2

the class
3 4
Approving Continuous Business
significant initiatives Owner engagement
4-12
Trainer Guidance:
Purpose: The purpose for this activity is to practice applying the Lean Budget
Guardrails as a mechanism for describing the policies and practices for budgeting,
spending, and governance for their portfolio.
provided in your Virtual Classroom. A template and instructions for this activity are
also provided in the Remote Group Document Template.

4.2 LPM events overview
4-13
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

What are the LPM events?
1. Strategic Portfolio Review
2. Portfolio Sync
3. Participatory Budgeting
Participatory Participatory
Budgeting Budgeting
Strategic Strategic
Strategic Strategic Strategic
Portfolio Portfolio Portfolio Portfolio
Portfolio
Review Review Review Review
Review
January February March April May June July August September October November December
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sync Sync Sync Sync Sync Sync Sync Sync Sync Sync
Sync Sync
4-14
Trainer Guidance:
How often should budgets be adjusted, when, and how? LPM stakeholders lead the
adjustments of budgets over time. Funding will evolve based on changing business
needs, and as a result at PI boundaries these budgets will get adjusted.
Review value stream budgets in advance of the PI boundary so that they don't disrupt
the PI.

LPM events overview
Strategic Portfolio Review Portfolio Sync Participatory Budgeting
• Focused on achieving and • Focused on portfolio • Focused on establishing and

advancing the Portfolio operations adjusting Lean Budgets
Vision
• Provides visibility into how • Provides a forum for
• Provides continuous well the portfolio is stakeholders to decide how to
strategy, implementation, progressing toward meeting invest the portfolio budget
and budget alignment its objectives across Solutions and Epics
• Typically held on a quarterly • Typically held monthly and • Typically held every two PIs
cadence, at least one month may be replaced on a given
before the next PI Planning month with the strategic
portfolio review
4-15
Trainer Guidance:

4.3 Strategic Portfolio Review and Portfolio Sync
4-16
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Example actions and participants for each event
Strategic Portfolio Review Portfolio Sync

Review in-flight Epics, evaluate MVPs and make
Assess portfolio context
decisions
Maintain Portfolio Vision Advance Epics through the Kanban system
Review and update Strategic Themes Address blocks and impediments

Review investment horizons and other Lean Budget
Address cross Value Stream coordination
Guardrails
Review portfolio Metrics and KPIs Collect portfolio Metrics and Value Stream KPIs
Review portfolio Roadmap Update the portfolio Roadmap
Required participants: Senior Leaders, Business Required participants: Senior leaders, Business
Owners, Enterprise Architect, Solution Portfolio Owners, APMO, LACE
Manager
Optional supporting roles: RTEs, Scrum Masters, Epic
Optional supporting roles: Epic Owners, Product Owners
and Solution Management, RTEs
4-17
Trainer Guidance:
The strategic portfolio review event provides continuous strategy, implementation,

and budget alignment. The event is focused on achieving and advancing the portfolio
vision. To enable value streams to prepare and respond to any changes, it’s typically
held on a quarterly cadence, at least one month before the next PI Planning.
The portfolio sync provides visibility into how well the portfolio is progressing toward
meeting its objectives. This event has a more operational focus than the strategic
portfolio review. Topics typically include reviewing Epic implementation, the status of
KPIs, addressing dependencies, and removing impediments. The portfolio sync is
typically held monthly and may be replaced on a given month with the strategic
portfolio review.

Strategic portfolio review purpose and agenda
► The agenda enables senior Strategic Portfolio Review:

management to create, define, and Example Agenda
optimize the portfolio’s solutions that • Review the results of MVPs and
best deliver the vision, balancing determine whether to pivot,
persevere, or stop
short- and long-term objectives,
• Review the Portfolio Kanban and
risks, and costs. Lean business cases and approve
and prioritize Epics
► Each agenda should be specifically • Maintain the Portfolio Vision and
tailored toward the decisions portfolio canvas
• Update the portfolio context for the
needed to advance the portfolio. Enterprise
• Review Strategic Themes and
OKRs
4-18
Trainer Guidance:

Portfolio sync purpose and agenda
► The portfolio sync is an LPM event

designed to gain visibility into how well the Portfolio Sync: Example Agenda
portfolio is progressing toward meeting its
strategic objectives. • Review and action Lean Metrics
• Review Epic and program
► Typical topics include reviewing Epic, Value execution issues
Stream, and program execution, addressing • Plan for cross Value Stream
cross-product dependencies, and dependencies and releases
escalating and removing impediments. • Review continuous improvement
backlog and progress
► The portfolio sync is typically held monthly • Summary of decisions
and may be replaced on a given month with • Questions/discussions
a strategic portfolio review.
4-19
Trainer Guidance:

Prepare Share
Discussion: Efficient portfolio sync events 7

min
3
min
► Step 1: The portfolio sync is intended to

be shorter and more focused than the
strategic portfolio review. Working in
your group, discuss the following:
– What artifacts are required to ensure

an efficient portfolio sync?
– What might determine who should
attend a given portfolio sync?

class
4-20
Trainer Guidance:
The purpose of this discussion is for learners to engage in a conversation about how
they would conduct the portfolio sync in their enterprise. There are no right or wrong
answers. The important thing is to try something, and then inspect and adapt as
adjustments are needed.
Remote Guidance: A Collaborate template for this discussion is provided in your

virtual classroom. A template for this discussion is also provided in the Remote Group
Document Template.

4.4 Participatory Budgeting
4-21
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
There are three key points for this learning objective:

1. Value stream budgets must be adjusted over time.
2. Participatory budgeting is a forum used for making decisions on how to adjust the
budgets for the value stream.
3. The outcome of the forum is an agreed upon list of epics to fund across the
portfolio for the next budget cycle.

Duration
Video: How to Use Participatory Budgeting in SAFe 5

min
https://bit.ly/Video-UseParticipatoryBudgeting
4-22
Trainer Guidance:
Link: https://bit.ly/Video-UseParticipatoryBudgeting

The Enterprise establishes the total portfolio budget
Each portfolio’s budget is adjusted based on the portfolio context or in response to

significant events:
Enterprise & Market

Product
portfolio changes
feedback Internal/external
Changes to performance economic
Strategic
conditions
Themes
Enterprise Government
Next
Current period’s
Budget adjustment
portfolio portfolio
from Enterprise
budget budget

This is our budgeting starting point. 4-23
Trainer Guidance:
Explain where the total budget comes from and some of its factors, which may
influence the adjustments of it.

Budgets are allocated to development Value Streams to develop Solutions
Each development Value Stream develops one or more Solutions
10M AGILE RELEASE TRAIN
Lean Budgets AGILE RELEASE TRAIN
18M AGILE RELEASE TRAIN
Guardrails
Total portfolio budget: 28M
4-24
Trainer Guidance:

Establish Value Stream budgets with participatory budgeting
► Most organizations will generate

more good ideas than they can
fund, resulting in a portfolio
prioritization challenge.
► LPM and participants from different

Value Streams use participatory
budgeting to collaboratively
establish and adjust Value Stream
budgets.
4-25
Trainer Guidance:
The technique for adjusting the budgets is participatory budgeting. This is not a new
technique. It has its roots from political movements in the late 1980s when a need for
a democratic budgeting decision-making process was most pronounced.
Participatory budgeting was then adopted as a process for democratic deliberation

and decision-making, in which people from communities got involved in the allocation
of a municipal or public budget. The problem that this process solves is how to make
decisions on what to fund when dealing with limited funding and unlimited ideas.

Value Stream budgets are inclusive
‘Run the Business’ ‘Grow the Business’
Baseline Proposed Solution

Solution Investments Initiatives
(BSIs) (PSIs)
Includes Features, Capabilities and Epics Includes program, Solution and portfolio
below the Portfolio Epic threshold Epics above the Portfolio Epic threshold
4-26
Trainer Guidance:
A value stream’s total budget composition has two major components:

1. ‘Run the business’ costs
2. ‘Grow the business’ costs
These are the parts of the budgets that each value stream designates for. The ‘run
the business’ cost has the purpose of supporting the everyday operations of the
business. For any small business, these could be labor costs, the cost of the
equipment, inventory, supplies, taxes, insurance, and utilities. For any large IT
business, these are the expenses for infrastructure and operations, security,
compliance, business support, IT, financial management, and application
maintenance. ‘Run the business’ expenses are often fixed and non-discretionary.
The ‘grow the business’ costs are those that support new business capabilities and
are dedicated to growing the revenue by transforming the business. Examples of
expenses for growing the business may be business process analysis, Agile PMO
management, solution or application architecture, and sourcing and procurement.
Transformational enterprises will investigate ‘grow the business’ expenses as
expenses for delivering innovation, creating new sources of revenue, exploring new
markets, or developing new products and services.

Value Stream budgets are adjusted over time
► Typically, Value Stream budgets are adjusted twice annually

► Adjusted less frequently and spending is fixed for too long, and it may limit agility
► Adjusted more frequently and planning may be more challenging
Lean Budgets
Lean Portfolio
Management
Value Stream 1
Value Stream 2
Value Stream 3
Value Stream 4
PI 1 PI 2 PI 3 PI 4
4-27
Trainer Guidance:

Participatory budgeting overview
Baseline
Solution
Investments
Total Portfolio Budget (BSIs)
and Guardrails
‘Run the Business’
Proposed
Solution
Initiatives
(PSIs)
‘Grow the Business’

Business Context
Value Stream 1 Value Stream 1

PI 1 PI 2 PI 3 PI 4 PI 1 PI 2 PI 3 PI 4
Current Value Stream Budgets New Value Stream Budgets
Participatory Budgeting Forums
4-28
Trainer Guidance:
Now that the budget composition is understood, the Epics are prepared and we have
detailed briefings and agendas, let’s take a larger view of the process and
components of participatory budgeting. In this diagram, we illustrate the role of the
participatory budgeting in adjusting the value stream budgets. We have current
budgets and after a few rounds of the forum, we would have new, adjusted budgets.
To make decisions on what these budgets would look like, we consider the business
priorities first. Based on these priorities, we would have selected potential Epics from
the value streams or from the portfolio. We would consider the portfolio roadmap for
short- and longer-term planning of the Epics’ implementation. We would also consider
run and grow the business budgets, the total portfolio budget allocation,
and guardrails.

Running a participatory budgeting event
Participatory budgeting is a significant event that requires preparation, coordination,

and communication.
2
4
1 Assemble the
Prepare the
participants 3 Analyze
results
content Conduct the
forums
4-29
Trainer Guidance:
Participatory budgeting is an event that requires significant preparation. In the next

few slides, we will go into details on how to prepare.

Prepare the content 1
The LPM Execution toolkit provides additional guidance for the participatory budgeting
event preparation.
Participatory Budgeting Guide

LPM Execution Toolkit
Guidance for preparing
Includes: Guidance, Templates, the business context
Workbooks, Calendars, Agendas, and
Videos on the following topics:
Templates for Portfolio and
• Implementing Lean Portfolio Management Value Stream Epics’ cost
• Strategy and Investment Funding estimates
• Portfolio Operations
• Lean Governance Guidance for estimating
Solution cost
https://bit.ly/Community-ToolkitsandTemplates
4-30
Trainer Guidance:
The LPM Execution toolkit is available to all SPCs. It contains materials that can be
very useful in preparing the content for the participatory budgeting event.
Link: https://bit.ly/Community-ToolkitsandTemplates

Assemble the participants 2
► Organize participants into groups of five to eight people

► Ensure each group has participants from different Value Streams
► Try to include a mix of roles in each group
Example
The LPM team wants to gather data from 40 leaders and stakeholders.
The group is organized into five 8–person groups.
4-31
Trainer Guidance:
Next, the right people should be gathered for the forum. The most common
participants in SAFe participatory budgeting forums are product and solution
managers, Agile teams, enterprise architects, system architects, business owners,
LPM fiduciaries, and other stakeholders. Once assembled, you will find that you often
have as many as 20 or 30 people who should be included in the process. Because
this is too many to structure healthy collaboration, you will organize multiple forums of
five to eight participants and then analyze the results across the forums to identify
actionable patterns.

Conduct the event 3
► Each group is given the total portfolio Each person gets 3.5M
budget equally divided among the

participants.
► Each group collaboratively funds the 28M

Solution investments.
► Partially funded Solutions and Epics are 28M
candidates for termination or negotiation.
28M
4-32
Trainer Guidance:
Make sure to get familiar with and be able to explain the logistics of how real
participatory budgeting forums are conducted at a high level.

Analyze results 4
Fully funded by all groups
Solutions Description
We fund all BSI: Channel

Management
The channel management solution assists the bank in acquiring new loan customers.
of these. BSI Loan Origination Fully funded by some groups

The loan origination solution supports the systems by which a borrower applies for loan. Partially funded by some groups
The credit scoring solution uses multiple sources of data and various strategic partners to develop a credit
BSI: Credit Scoring
score of loan applicants.
BSI: Core Banking The core banking solution provides checking and savings accounts to bank customers.
We fund some of these; In-Progress Epics Description

the rest are cut. Facebook Login Extend the loan origination to solution allow for a Facebook login
Microservice Core
Continue the re-architecture of the core banking application
Banking
New Epics Description

This epic is special, it has College Student This business epic is designed to create new channel, loan origination, and credit scoring solutions to align Special case
overwhelming support for Loans with the strategic theme of providing loan products to the college student market.
partial funding, suggesting it’s Move to Flutter

This enabler epic is designed to align ALL of the value streams user interface development to Flutter,
starting with the loan origination system.
estimated cost was too high. This enabler epic is designed to improve the ability for the ARTs to manage the DevSecOps infrastructure.
It might be funded at a lower Adopt Puppet
This includes training for all teams in the Portfolio across all value streams.
amount or reduced scope. OCR Verification

This enabler epic will verify the suitability of a new offering from a Supplier that uses advanced OCR
technology to automatically verify documents submitted during the load application process.
Decommission
This business epic completes the decommissioning of the credit system by migrating the last of the
Insecure Credit
historical data from the old legacy system into the new data lake.
System
Little or no funding support

4-33
Trainer Guidance:
Analysis is crucial because it leads to the best insights. Note that in the
highlighted examples.

Adjust Value Stream budgets after analyzing results
► LPM finalizes the adjustments needed to development Value Stream budgets.

► LPM verifies that the investments are aligned with the budget Guardrails.
► Total portfolio budget remains the same.
28M Total 28M Total

AGILE RELEASE TRAIN AGILE RELEASE TRAIN
10M 13M
18M 15M

Total Portfolio Total Portfolio
Budget Budget
Development Value Stream budgets
4-34
Trainer Guidance:
Describe how the budgets are adjusted after the forums were conducted. Make sure
to emphasize that LPM fiduciaries verify the resulting investments are also aligned
with the established Lean budget guardrails.

Implement the budget changes
► Value Streams are reorganized to align with the

new budgets as needed. These are typically
virtual changes, not functional changes.
► Organizational changes are coordinated with

HR, legal, finance, and functional managers as
needed.
► LPM works with key leaders to communicate and

implement the change and to update the
backlogs.
4-35
Trainer Guidance:

Benefits of participatory budgeting
► It helps ensure that empowered Value Stream

stakeholders are making the best possible
decisions.
► Resulting Value Stream budgets are more

realistic and more achievable than those
imposed top-down.
► More ownership improves morale and typically

results in greater efforts by employees to
achieve what they forecasted.
► It achieves better agreement and buy-in to the

funding of each Value Stream.
4-36
Trainer Guidance:
Explain the general benefits of the participatory budgeting. Make sure to emphasize
the fact that by creating collaborative forums in which participants explore, shape, and
negotiate over the use of resources and people, participatory budgeting helps ensure
that empowered value stream stakeholders are making the best possible decisions.

Prepare Share
Activity: Participatory Budgeting event 30

min
10
min
► Step 1: Working in your group, use the

Participatory Budgeting Forum
Participatory Budgeting spreadsheet to
conduct a Participatory Budgeting event
simulation for TTC
► Step 2: Be prepared to reflect with the class on

some key insights from the event
4-37
Trainer Guidance:
Participatory budgeting forums, in real terms, may take a few rounds over a few days.
For this short simulation, we have provided a common context. The supplemental
materials are in the courseware kit in folder ‘Templates Handouts.’ There are two
primary outcomes from a PB event: the results (what gets funded), and
the reasons behind the funding (the conversations that clarify which solutions and
Epics get funded, why, and how they will drive the future of the business).
Purpose: This activity is designed to immerse the learners in participatory budgeting.
Remote Guidance: You can access the Collaborate Participatory Budgeting template
through the community platform here: https://bit.ly/Template-PB. Instructions are on
the template, or you can download the spreadsheet from here:
https://community.scaledagile.com/s/content-file-
preview?contentDocumentId=0696T00000FRnaOQAT
• Import the spreadsheet to Google sheets.
• Ask learners to go to go to the breakout rooms and go to the appropriate tab on the
spreadsheet.
• Next, have them add their names at the top of the columns to replace the word
‘person’ (See columns F through O). As each person enters their name, the
spreadsheet will equally divide the money amongst the participants for their table.

Duration
Action Plan: Establishing Investment Funding 5

min
► Step 1: Reflect on the topics we

► Step 2: Write three improvement

items you can take regarding
investment funding
► Step 3: Share your insights with

the class
4-38
Trainer Guidance:
needed for reflection and capturing of key takeaways from the topics discussed in
the lesson.

Lesson review
In this lesson you:
► Described the need for the four Lean Budget Guardrails
► Explained the purpose of the LPM events
► Explored how to establish Value Stream budgets
4-39
Trainer Guidance:

► "Business Owners"
/business-owners/
► "Lean Budgets"
/lean-budgets/
► "Lean Budget Guardrails"

/guardrails/
4-40
Trainer Guidance:
Links:
• https://www.scaledagileframework.com/business-owners/
• https://www.scaledagileframework.com/lean-budgets/
• https://www.scaledagileframework.com/guardrails/

Download the “Portfolio Sync Event Toolkit” to Download the “Lean Budget Guardrails” toolkit to
see how the portfolio is progressing toward establish the guardrails and maintain strategic
meeting its objectives. Alignment.
https://bit.ly/Toolkit-PortfolioSyncEvent https://bit.ly/Toolkit-LeanBudgetGuardrails
Access the toolkit, “Participatory Budgeting Use this spreadsheet “Forecasting Epics
Guide,” to prepare the content and plan a Template,” to estimate how long it will take an
successful event. Epic to move from planned work to an MVP.
https://bit.ly/Toolkit-ParticipatoryBudgetingGuide https://bit.ly/Template-ForecastingEpics
4-41
Trainer Guidance:
Links:
• https://bit.ly/Toolkit-PortfolioSyncEvent
• https://bit.ly/Toolkit-LeanBudgetGuardrails
• https://bit.ly/Toolkit-ParticipatoryBudgetingGuide
• https://bit.ly/Template-ForecastingEpics

Lesson 5
Managing Portfolio Flow

Trainer Guidance:

targets.

Executives
Business Enterprise
5-2
Trainer Guidance:

Strategy
Lesson Topics Objective & Investment Key

Funding
Results
5.1 Establishing flow with Enterprise

Executives
the Portfolio Kanban

Business Enterprise
Owners Architect
5.2 Sequencing Epics for

implementation using WSJF
Agile
Lean Portfolio
APMO

5-3
Trainer Guidance:
The Scaled Agile Framework (SAFe) applies the power of Agile, along with the
contemporary knowledge found in systems thinking and Lean product development to
help businesses address the significant challenges of developing and delivering

Learning objectives
► Explain the value of portfolio flow
► Define the steps in a Portfolio Kanban
► Explain how to sequence Epics with weighted shortest job first (WSJF)
5-4
Trainer Guidance:

5.1 Establishing flow with the Portfolio Kanban
5-5
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
The key points for this topic are:

• The portfolio Kanban is a mechanism used to visualize, manage, and analyze the
prioritization and flow of portfolio Epics from ideation to implementation
and completion.
• Implementation and management of the portfolio Kanban system occur with the
support of lean portfolio management.

Understand how Kanban works
► Kanban is a visual tool for 3 3

monitoring and managing
workflow.
Funnel Reviewing Analyzing Portfolio Backlog Implementing Done
► Columns represent process MVP Persevere
states; numbers above the

columns are work-in-process
(WIP) limits.
► Explicit process policies define

how and when work moves Epics are ‘pulled’ across the Kanban board as WIP limits and
across the board. other policies permit.
► WIP limits promote faster flow

and the continuous delivery of
value.
5-6
Trainer Guidance:

Portfolio Kanban benefits
The Portfolio Kanban provides a transparent and quantitative basis for economic
decision-making.
WIP limits ensure that teams
review and analyze responsibly, Helps drive collaboration
preventing unrealistic among key stakeholders
expectations
Makes the largest
business and technical 3 3
initiatives visible Funnel Review Analyzing Portfolio Backlog Implementing Done
Enabler
Epic
Brings structure to Transparency in

Epic analysis and evaluating the business
go/no-go decision outcome hypothesis
5-7
Trainer Guidance:
Explain all the benefits of the portfolio Kanban shown on this slide. Suggest that one
of the most valuable things the LPM team can immediately do is to implement the
portfolio Kanban, providing visibility to the largest business and technical initiatives.
This has an immediate positive effect.

Epics flow through the Portfolio Kanban
The Portfolio Kanban system describes the process states that an Epic goes
through from the funnel to done.
Funnel Reviewing Analyzing Portfolio Backlog Implementing Done
All big ideas are • Refine • Solution • Epics MVP Persevere • Done when LPM
captured, such as: understanding of alternatives approved by governance is no
the Epic LPM • Build and • Affected ARTs longer required
• New business • Refined cost evaluate MVP or Solution
opportunities • Create the Epic estimates and • Sequenced Trains reserve
hypothesis WSJF using WSJF • Pivot or capacity for the
• Cost savings persevere
statement Epic
• Define MVP decision made
• Marketplace changes
• Preliminary cost • Continue
• Create Lean • Pulled by teams
• Mergers and estimates and Feature
business
acquisitions WSJF implementation
case
• Problems with • WIP limited until WSJF
• Go/no-go decision determines
existing Solutions
• WIP limited otherwise
Pull when an Pull when an Epic Pull when Pull when train Pull when MVP Pull when Epic is
Epic Owner is Owner has approved by capacity and hypothesis no longer a
available capacity LPM budget available proven true portfolio concern
5-8
Trainer Guidance:
The portfolio Kanban system is a method to visualize and manage the flow of portfolio
Epics, from ideation through analysis, implementation, and completion. There are
several Kanban systems used throughout SAFe, including the team, program,
solution, and portfolio Kanban systems. These systems help match demand to
capacity based on work-in-process (WIP) limits, and visualizing bottlenecks in each
process state helps identify opportunities for relentless improvement.
Kanban systems also include policies governing the entry and exit of work items in
each state. The portfolio sync event is a cadence-based event in which LPM reviews
and manages the epics within the portfolio Kanban. The portfolio Kanban system, as
illustrated on this slide, describes the process states that an epic goes through on its
way to from creation through completion. The advancement of the epic through the
portfolio Kanban is coordinated by the epic owner.
Each of the default portfolio Kanban states is described in the details on the slides
that follow. It’s important to note that these portfolio Kanban states represents an
example process. The design of the Kanban should evolve to reflect improvements of
the default Kanban states based on relevant portfolio experience. These
improvements may include adjusting WIP limits, splitting or combining Kanban states,
or adding classes of service to optimize the flow and priority of Epics.

Funnel is used for intake of new Epics
► All big ideas are welcomed:
– New business opportunities The Portfolio Vision, Roadmap, and future state portfolio canvas
– Cost savings
Portfolio Epic
Portfolio Epic
Vision
– Problems with existing Vision
Solutions Current State

Portfolio Canvas
Portfolio Canvas
Future State
Portfolio Canvas
Portfolio Canvas
Enabler
Portfolio
Portfolio
– Marketplace changes Roadmap
Roadmap Epic
– Mergers and acquisitions

AGILE RELEASE TRAIN
Solution
Solution
► Only potential Epics should Vision
Vision
AGILE RELEASE TRAIN NFRs
go in the funnel; it’s not a Funnel
central intake for all work. Solution

Roadmap
Solution
Roadmap
AGILE RELEASE TRAIN
5-9
Trainer Guidance:
The funnel is used to capture all new big ideas. These ideas can come from any
source and may be business or technical concepts (enablers). Typical drivers of
Epics include portfolio strategic themes, unanticipated changes in the marketplace,
business acquisitions, mergers, responses to competitors, improving the efficiency or
cost of a solution or its operation, and problems with existing solutions that hinder
business or technical performance. Epics are typically described using a short phrase
on a card, such as, “self-service for all auto loans.” Epics that meet the decision
criteria are then moved to the next state, ‘Reviewing.’ There is no WIP limit for the
funnel since it’s just used for intake of potential new Epics. Epics could come from
team members, hackathons, customers, partners, and numerous other sources.

Reviewing is where stakeholders agree on the Epic’s intent and definition
Epics that exceed the Epic threshold Epic Hypothesis Statement
criteria are pulled into the reviewing Funnel Entry Date:

Epic Name:
<The date that the epic entered the funnel.>
<A short name for the epic.>
state when WIP limits permit. Epic Owner:

Epic Description:
<The name of the epic owner.>
<An elevator pitch (value statement) that describes the epic in a
► Refine understanding For <customers>

who <do something>
the <solution>
► Create Epic hypothesis statement is a <something – the ‘how’>

that <provides this value>
unlike (competitor, current solution or non-existing solution>
Preliminary cost estimates and

►
weighted shortest job first (WSJF) Business Outcomes: <The measurable benefits that the business can anticipate if the
epic hypothesis is proven to be correct.>
► WIP limited Leading

Indicators:
<The early measures that will help predict the business outcome
hypothesis. For more on this topic, see the Innovation Accounting
advanced topic article.>

Requirements
(NFRs):
5-10
Trainer Guidance:
Epics that reach this state warrant some further time and effort. Here, they are roughly
sized and given an estimate of value. Time investment is limited to the discussion
level, with perhaps some preliminary investigation. Next, the Epic will be elaborated
upon in the Epic hypothesis statement format. Since the investment of time is now
increasing, a WIP limit is applied to restrict the number of Epics being reviewed.
Sources of business benefit are identified, and Epics are prioritized using weighted
shortest job first (WSJF). Epics that rise to the top are pulled into the next state,
‘analyzing,’ as soon as space is available in the Kanban.

Analyzing is for Epics that deserve more rigorous analysis and investment
An Epic Owner assembles the group of

stakeholders who will help analyze the
Epic. Activities in this stage include:
► Identify Solution alternatives Business Team

Owners
► Define MVP
Epic Owners
► Create Lean business case

Solution and Product Solution and System
► Refine cost estimates and WSJF Management Arch/Eng
► WIP limited
► Go or no-go decision
5-11
Trainer Guidance:
Epics that make it to this state merit more rigorous analysis and require further
investment. Epic owners take responsibility for this ongoing work. They establish an
active collaboration among enterprise architects, system and solution architects, Agile
teams, and product and solution management. Other key stakeholders in the
potentially involved ARTs and solution trains may also be included. Alternatives are
explored for the solution and its design and implementation. A Lean business case—
with a go or no-go recommendation—is developed, and options for internal
development and outsourcing are also considered.
Since Epics in this state use scarce resources and, more importantly, imply a
substantial upcoming investment, a WIP limit is applied. The approval of Epics is a
critical economic decision from the enterprise. It can only be made by the appropriate
authority, based on the developed business case. Epics that meet the go criteria are
usually approved by a subset of LPM and are moved to the ‘portfolio backlog’ state.
Most importantly, a minimum viable product (MVP) is developed after the Lean
startup cycle. It includes the smallest portion of the Epic needed to understand if the
‘Epic hypothesis statement’ is validated. This MVP will be the part of the Epic flowing
through the rest of the portfolio Kanban system.

Portfolio Backlog holds Epics approved for implementation
► Epics approved by LPM are maintained in the Portfolio Backlog.

► They are sequenced using WSJF.
Participatory Budgeting
Epic 6
Epic 5
Epic 4
Epic 3
Epic 2
Epic 1
Epics are pulled into the relevant Program
or Solution Backlog
Portfolio Backlog
5-12
Trainer Guidance:
This state is used to maintain Epics that have been approved by LPM. They’re
reviewed and prioritized on a periodic basis using WSJF. When sufficient capacity
from one or more ARTs is available, the item advances to the ‘Implementing‘ state.

Implementing is where the MVP for the Epic is defined and built
► The Epic Owner works with Agile

Teams to begin the activities needed to Implementing
develop the MVP and evaluate the
MVP Persevere
business outcome hypothesis.
Build and Affected ARTs
evaluate MVP or Solution
► This strategy for implementing Epics Pivot or
Trains reserve
capacity for the
provides the economic and strategic persevere
decision made
epic
advantages of a Lean startup by Continue
feature
managing investment and risk implementation
until WSJF
incrementally, while leveraging the flow determines
otherwise
and visibility benefits of SAFe.
5-13
Trainer Guidance:
Due to their strategic value and size, Epics are implemented using a ‘build-measure-
learn’ cycle. After being approved for implementation, the Epic owner works with the
Agile teams to begin the activities needed to develop the MVP and evaluate the
business outcome hypothesis. If the hypothesis is proven true, teams will implement
additional features and capabilities for the Epic or possibly new Epics. ARTs manage
the additional investment via ongoing feature prioritization of the program Kanban in
various value streams. However, if the hypothesis is proven false, the LPM fiduciaries
can decide to pivot by creating a new Epic or dropping the initiative altogether.

Implementing in the persevere state is done if the Epic hypothesis is proven
When the hypothesis is proven, the Epic moves to the persevere state where the ARTs
continue development of the new offering.
If not proven, there are two main
courses of action: Yes
Hypothesis No
Epic Pivot?
► Pivot – A structured course Proven?
correction designed to test a new Portfolio Kanban Build

MVP Yes
No
hypothesis Stop
Persevere and
continue
► Stop – Development of the Epic development Development
stops
stops
Feature
AGILE RELEASE TRAIN Continue
Enabler
until WSJF
AGILE RELEASE TRAIN determines
Feature
otherwise
Feature AGILE RELEASE TRAIN
5-14
Trainer Guidance:
When sufficient capacity from one or more ARTs is available, the Epics with the
highest WSJF advances to the Implementing: MVP state. Here, the Epic owner works
with the Agile teams to begin the activities needed to develop the MVP and evaluate
the business outcome hypothesis. Work on the MVP continues until the money
allocated for the MVP has been spent or the hypothesis is proven or disproven. If the
value stream runs out of money to implement the MVP and the customer problem still
exists, a new Epic may be proposed and placed in the funnel state, or the Epic is
considered done and there is no further consideration.
If the hypothesis is proven true, the Epic advances to the Implementing: Persevere
state and teams will continue to implement additional features and capabilities for the
epic. ARTs manage the additional investment via ongoing feature prioritization of the
program Kanban in various value streams. Eventually, the Epic will be ‘done enough’
such that ongoing WSJF will prioritize new capabilities and features from other
sources as higher priority.

Done is when one of the following conditions is met
► The business Create new Epic and

hypothesis
outcome Yes
hypothesis is Hypothesis No
Epic Build and
Pivot?
proven false. evaluate MVP
Epic state: MVP
proven?
Portfolio Approved Lean business

Kanban case with a defined MVP
No
► The hypothesis is and business outcome
hypothesis
Yes
proven true and Epic state: Portfolio Backlog

Development continues
Epic state: Persevere
Stop
Note: Many
LPM has experiments are or
If portfolio governance is
Development stops
Epic state: Done
possible here!
determined that no longer required
Epic state: Done
additional portfolio
governance is no Continue
until WSJF
Local Features and
longer required for other Epic input
determines
otherwise
the Epic. Program Kanban systems
5-15
Trainer Guidance:
From a portfolio perspective, an Epic is considered done when sufficient knowledge

or value is achieved such that the initiative is no longer a portfolio concern.
Completion of the full envisioned scope from the Lean business case is not a
criterion. Rather, the Epic is considered done when:
• It is ejected from the portfolio Kanban by LPM in any of the earlier states.
• The MVP disproves the hypothesis.
• The hypothesis is proven, but LPM has determined that additional portfolio
governance is no longer required.
In the latter case, work on the Epic may continue by various ARTs and the Epic owner
may have some ongoing responsibilities for stewardship and follow-up. Since the Epic
itself is no longer a portfolio concern, leading indicators, value stream KPIs, and
guardrails are used to keep LPM informed of progress.

Epic refinement and flow are supported by LPM events and practices
Funnel Review Analyzing Backlog Implementing & Done

Epic Hypothesis Statement Template SAFe Lean Startup Cycle
Lean Business Case for <short name of epic>
Epic Owner: Yes
Epic Hypothesis Statement
Funnel Entry Date: Key Stakeholders:
(Use for tracking, aging and analysis (Who is the epic owner?) (List the names of key stakeholders)
in the Kanban)
For <customers> Epic Description:

No
Build and Hypothesis
(Consider using the epic Hypothesis Statement in the epic article as a starting point for a description of the epic.)
Epic evaluate MVP Pivot?
who <do something> proven?
Business Outcome Hypothesis: Leading Indicators: Epic state: MVP
(Describe how the success of the epic will be (Establish innovation accounting metrics to provide
the <solution> measured: for example, 50% increase in shoppers
under 25: Availability increases from 95% to 99.7%,
leading indicators of the outcomes hypothesis: for
example, a measurable change in purchaser
Approved Lean business case
etc.) demographics within 30 days of feature release) with a defined MVP and No
is a <something – the ‘how’> business outcome hypothesis Yes
In Scope: Out of Scope: Nonfunctional Requirements:
Epic state: Portfolio Backlog
Stop
that <provides this value> Development continues
Epic state: Persevere
All big
Unlike <competitor, current solution or non-existing solution>
Minimum Viable Product (MVP) Features
(Feature or Capability)
Additional Potential Features
(Feature or Capability) Or Development stops
When portfolio governance no Epic state: Done
our solution <does something better – the ‘why’> longer required
Analysis Summary: Go / No-Go:
NFRs Epic state: Done
ideas are
(Brief summary of the analysis that has been formed to (Go, or No-Go recommendation)
create the business case.)
Business Solution Analysis WSJF

Outcome Continue
welcomed
Hypothesis:
Which internal and/or external customers are affected, and how?
until WSJF
(Describe the user community and any markets affected) Local features and other
determines
Leading epic input
What is the potential impact on solutions, programs and services? otherwise
Indicators: (Identify solutions, programs, services, teams, departments, etc, that will may be impacted by this epic)
NFRs
here!
What is the potential impact on sales, distribution, deployment and support?
(For external solutions or products, describe any potential impact on how the product is sold, distributed, or Program Kanban systems
deployed)
Is this really a Is the Epic aligned to Should we approve What are the Epic Did we prove the benefit
Portfolio Epic? a Strategic Theme? the Epic? Is it a good priorities? hypothesis of the MVP?
business decision?
LPM events and practices that support the Portfolio Kanban
Strategic Portfolio Participatory Sequence Epics

Portfolio Review Sync Budgeting with WSJF
5-16
Trainer Guidance:
How does everything we’ve discussed flow together. Relate this to principle #7.
• The hypothesis statement helps us identify if the epic is aligned to our strategy.
• The cost and initial Lean business case helps us determine if this individual Epic is
worthy of pursuing.
• The PB forum helps us determine which of a collection of promising Epics are the
ones that we, as a group, want to invest in and teases out important non-financial
motivations and factors.
• Once we determine the set of investments, WSJF helps us sequence the work
within and across value streams to generate the best returns.
• Once the work has started, the MVP helps us ensure that all the above is
sufficiently true to warrant full implementation.
• Once we’re committed, the SAFe Lean Startup cycle helps the LPM focus on
strategy, not execution, by promoting the decentralization of work.
• Metrics help us monitor performance/value of the investments and provide us data
to help us continually optimize our portfolio.
Go to LPM landing page to find LPM events here:

https://community.scaledagile.com/s/implement-lpm
You can access Sequence Epics Collaborate Template for future use here:
https://bit.ly/Template-SequencePortfolioEpics

SAFe has multiple, connected Kanban systems to support fast flow
Work originates at all levels of SAFe. It’s not just a top-down system.
Measure
Operational Value Streams
Business Agility & Grow
Epic
Business Agility
PORTFOLIO
Portfolio
Portfolio Kanban
Enabler
concerns
Some work Vision
originates at LARGE SOLUTION

Roadmap
the levels
Solution Capability
Solution
Epic
Solution Kanban
concerns
Milestones
Enabler Enabler
above.
Shared
Services
ESSENTIAL
Some work
Program
CoP
is defined
Program Feature
Epic
Program Kanban
Enabler Enabler System
concerns
and
Team
managed Lean UX
locally. Story Story

Metrics
Team
Enabler
Team Kanban
concerns
Core Lean-Agile SAFe Implementation
Values Mindset Principles Roadmap
SPC 5.1
5-17
Trainer Guidance:
Here, talk about the multiple, connected Kanban systems that we have within SAFe.
Make sure you describe how some of the work can originate from the levels above.
For example, a program Epic could originate from a portfolio Epic, but some of the
work is defined and managed from a local context. Capabilities or features can trip the
economic threshold for an Epic. In those cases, consider the Epic. We will want to
capture the benefits in a Lean business case.

Prepare Share
Discussion: Assessing Portfolio Kanban 10 5
design min min
► Step 1: Working in your group,

discuss how would you apply and
evolve a Portfolio Kanban

class
https://bit.ly/Video-ImplementingPortfolioKanban
5-18
Trainer Guidance:
The purpose of this discussion is to bring out the point that the portfolio Kanban states
detailed in this lesson are just an example process, and that they are driven by
application of SAFe principles and the Lean-Agile mindset. You should hear things
like adjusting WIP limits, splitting or combining states, or adding classes of service to
optimize the flow and priority of Epics.
Remote Guidance: A Collaborate template for this discussion is provided in the

Virtual Classroom. A template for this discussion is also provided in the Remote
Group Document Template.
Link: https://bit.ly/Video-ImplementingPortfolioKanban

5.2 Sequencing Epics for implementation
using WSJF
5-19
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
After the decision is made on which Epics to fund for growing the business, we use
weighted shortest job first to sequence their implementation. This section of the
lesson provides a short overview of the WSJF model. Many of the class participants
may be familiar with the model. However, this section will be a good reminder of how
and why we sequence Epics There are two key points for this topic:
1. Prioritization in a flow-based system requires knowing two things:
a. The cost of delay of delivering value
b. The duration to implement the value
2. Prioritizing and forecasting portfolio Epics reduces wasteful spending and avoids
investing in unnecessary functionality.

Sequence Epics for optimal economics
► To apply WSJF, we need to know two things: Cost of Delay

(Value)
WSJF =
1. Cost of delay (CoD) – The amount of money lost due to Duration
delaying the delivering of value (Cost)
2. Duration – The time it takes to deliver the Epic
► Since we don’t know which ARTs are going to do the work

and the timing of the implementation, it’s difficult to know the
Epic’s duration. The cost of an Epic is a generally a good NFRs
proxy for duration. Larger Epics typically take longer to deliver Portfolio Kanban
than smaller ones.
► Epics that can deliver the most value—or highest CoD—and

are of the shortest duration are selected first for
implementation.
https://bit.ly/Video-CalculatingWSJFBacklog
5-20
Trainer Guidance:
Reinertsen describes a comprehensive model, called weighted shortest job first

(WSJF), for prioritizing jobs based on the economics of product development flow.
WSJF is calculated by dividing the cost of delay by the duration. Jobs that can deliver
the most value (or highest CoD) in the shortest duration are selected first
for implementation.
Link: https://bit.ly/Video-CalculatingWSJFBacklog

Components of cost of delay
User-Business Value Time Criticality Risk Reduction & Opportunity

Enablement (RR&OE)
Relative value to the How user or business value What else does this do for our
customer or business decays over time business
• Do they prefer this over • Is there a fixed deadline? • Reduce the risk of this or
that? • Will they wait for us or future delivery?
• Revenue impact? move to another solution? • Is there value in the
• Potential penalty or other • What is the current effect information we will receive?
negative impact? on customer satisfaction? • Enable new business
opportunities?
5-21
Trainer Guidance:
Explain how value changes over time. Things that are high or low in any category
now can be different over time. Describe an example of each of the components
of CoD.

Calculate WSJF to sequence Epics
► Simplify the WSJF math by ‘normalizing’ the Example: Normalizing Epic cost
Epic’s cost. Epic Epic Normalized
ID Cost Cost
► To normalize cost, give the lowest cost Epic a
#6 0.5M 1.0
‘1.0,’ then divide the cost of subsequent Epics
by the cost of the first Epic. #7 1.5M 3.0
#3 4.6M 9.2
► The WSJF is then calculated as follows:
#8 5.6M 11.2
Cost of Delay #5 7.2M 14.4

(Value)
WSJF = Duration
(Normalized Cost)
5-22
Trainer Guidance:
Focus on explaining what job duration conveys in the context of WSJF. Job duration
can be difficult to determine, especially early on when we might not know who is
going to do the work, or what is the capacity allocation of the ARTs. In such case, we
use the job size as a proxy for job duration. This is especially beneficial in systems
with fixed resources. Note that this use of WSJF is not relative cost—this is a different
implementation of cost—we’re using actual projected cost, not normalized cost.

Time is a key component in determining CoD value
Sometimes missing a market window means an Epic is ‘worthless’
High Optimal
Value Value generated market
is not zero! window Value generated
plummets when
the market window
is missed!
Low
Value
Q1 Q2 Q3 Q4
Market Rhythms
5-23
Trainer Guidance:
Tie this into the reasons we want students to create roadmaps with events and
rhythms. Discuss how time is a key component in determining value and how value
changes over time. If we miss our optimal market windows, this could be detrimental
to the value generated when we miss that market window. Explaining how value
changes over time is critical.

Enablers support the continuous flow of value
► The Architectural Runway supports the continuous flow of value through the
Continuous Delivery Pipeline, providing the necessary technical foundation for
developing business initiatives and implementing new Features and or Capabilities.
► Since the development of new Features and Capabilities consumes the Architectural
Runway, continual investment must be made to extend it by implementing Enablers.
Feature
Feature Feature
…to support future Features

Enabler Epic
Implemented now…
Architectural Runway
5-24
Trainer Guidance:
The architectural runway is one of the tools SAFe uses to implement the concepts of
Agile architecture. This runway provides the necessary technical basis for developing
business initiatives and implementing new features and/or capabilities. Agile
development avoids big up-front design (BUFD) and replaces it with a simple belief
that the best architectures, requirements, and designs emerge from self-organizing
teams. Out of this comes the practice of emergent design—the Agile architecture
evolutionary process of discovering and extending the design only as necessary to
implement and validate the next increment of functionality.

Calculating WSJF for portfolio Epics 7
► Determine the normalized cost by giving the lowest cost Epic a 1.0, then divide the cost of
subsequent Epics by the cost of the first Epic. Enter the normalized cost in the Epic Cost column.
► Calculate the CoD column by adding its three components.

Example: Normalizing Epic cost
► Calculate the WSJF column (CoD / Epic Cost). Epic Epic Normalized
ID Cost Cost
► Implement the item with the highest WSJF first. #6 0.5M 1.0
3 #7 1.5M 3.0
#3 4.6M 9.2
Single-sign on 5 + 8 + 1 = 14 / 3.0 = 4.7
#8 5.6M 11.2
Move to cloud 3 + 5 + 3 = 11 / 9.2 = 1.2
Mobile first 1 + 1 + 5 = 7 / 1.0 = 7.0 #5 7.2M 14.4
Tips:
• Do one column at a time. Start by picking the smallest item in each column and give it a ‘1’
• Determine the numbers for the rest of the items relative to that ‘1’ using this scale (1, 2, 3, 5, 8). Each
column must contain at least one ‘1’
5-25
Trainer Guidance:

Prepare Share
Activity: Sequence portfolio Epics 7

min
3
min
► Step 1: Working in your group, prioritize three TTC Epics:

- Epic 1: Local farm delivery of produce to supermarkets
(will result in 25% increase in market share) and has an
estimated cost of $5M
- Epic 2: Drone delivery platform
(will enable faster autonomous delivery to all TTC markets)
and has an estimated cost of $500K
- Epic 3: Delivery of contractor supplies
(will result in 10% increase in market share) and has an
estimated cost of $2M
► Step 2: Be prepared to share with the class
5-26
Trainer Guidance:
Ask learners to break into groups and prioritize the TTC Epics.
Purpose: The purpose of this activity is to demonstrate calculating WSJF economic

prioritization.
provided in the Virtual Classroom. A template and instructions are also provided in
the Remote Group Document Template. Learners have access to a template in their

Duration
Action Plan: Managing portfolio flow 5

min
► Step 1: Reflect on the topics


can take to manage the portfolio
flow

class
5-27
Trainer Guidance:
needed for reflection and capturing of key takeaways from the topics discussed in
the lesson.

Lesson review
In this lesson you:
► Explained the value of portfolio flow
► Defined the steps in a Portfolio Kanban
► Explained how to sequence Epics with WSJF
5-28
Trainer Guidance:

Articles used in this lesson:
► "Portfolio Kanban"
/portfolio-kanban/
► "Applied Enterprise Workflow with

the SAFe Portfolio Kanban: An
Experience Report"
/guidance-article-applied-enterprise-
workflow-with-the-safe-portfolio-
kanban/
5-29
Trainer Guidance:
Links:
• https://www.scaledagileframework.com/portfolio-kanban/
• https://www.scaledagileframework.com/guidance-article-applied-enterprise-
workflow-with-the-safe-portfolio-kanban/

Download the “Establish Portfolio Download the “Strategic Portfolio

Kanban” template to identify Epics and place Review Event” toolkit to help structure and
them on the Portfolio Kanban. facilitate a successful strategic portfolio
https://bit.ly/Toolkit-EstablishthePortfolioKanban review event.
https://bit.ly/Toolkit-
StrategicPortfolioReviewEvent
Watch this three-minute video, Kanban -

Measuring and Improving, to learn about the
metrics that can help improve your team’s
Kanban board.
https://bit.ly/Video-
KanbanMeasuringandImproving
5-30
Trainer Guidance:
Links:
• https://bit.ly/Toolkit-EstablishthePortfolioKanban
• https://bit.ly/Toolkit-StrategicPortfolioReviewEvent
• https://bit.ly/Video-KanbanMeasuringandImproving

Lesson 6
Applying Agile Portfolio
Operations
Trainer Guidance:

Agile portfolio operations: Collaboration and responsibilities
Agile portfolio operations coordinates and supports decentralized program

execution, enabling operational excellence.
Coordinate Value Streams
Agile PMO/LACE RTE and SM Support Program Execution

CoP
Foster Operational Excellence
6-2
Trainer Guidance:
This slide provides an overview of the Agile portfolio operations collaborations and
responsibilities. Use it to set the context for this lesson. Orient the students in the
course that the lessons until now have been the first dimension (the top portion of the
competency triangle). Now we are moving to the next dimension.

Strategy

Funding
6.1 Value Stream Enterprise

Executives
coordination
Business Enterprise
Owners Architect
6.2 Supporting program

execution and operational
excellence Lean
Agile
Portfolio
APMO

6-3
Trainer Guidance:

Learning objectives
► Describe Value Stream coordination
► Describe the role of the LACE in supporting program execution
► Discuss the value of the APMO
► Explain how to use Measure and Grow to improve program execution
6-4
Trainer Guidance:

6.1 Value Stream coordination
6-5
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
There are two key points for this learning objective:

1. Although it’s sensible for value streams to be organized as independent as
possible, some coordination of dependencies among value streams is necessary.
2. Value stream coordination provides guidance to manage dependencies and
exploit the opportunities in a portfolio.

Value Stream coordination creates portfolio-level opportunities
► Although many Value Streams operate

independently, cooperation among a
set of solutions can provide some
portfolio-level capabilities and benefits
that competitors can’t match.
► Lean-Agile leaders seek to make

Value Streams as independent as
possible, while simultaneously
interconnecting and coordinating them
with the Enterprise’s larger purpose.
https://www.scaledagileframework.com/value-streams/
6-6
Trainer Guidance:
Value stream coordination defines how to manage dependencies and exploit the
opportunities that exist only in the interconnections between value streams. Although
many value streams operate independently, cooperation among a set of solutions can
provide some portfolio-level capabilities and benefits that competitors can’t match. To
this end, Lean-Agile leaders understand the challenge and opportunity their value
streams provide. They make them as independent as possible, while simultaneously
interconnecting and coordinating them with the enterprise’s larger purpose.
Link: https://www.scaledagileframework.com/value-streams/

Value Stream coordination overview
1 Coordination Introducing new Ensured integration

3 4
Roles portfolio work points
Epic
Owners
Enterprise Solution
Architect Portfolio Mgmt Enabler Epic Enabler Epic
Epic Epic
APMO
5 Portfolio Roadmap
Release on
6 Demand
2 Apply cadence and

synchronization
6-7
Trainer Guidance:
By their very nature, value streams are long-lived and generally independent of each
other. For example, a systems or software company may sell many products and
services, largely decoupled from each other in technology. More likely, however, is
that they have dependencies between them. Although we typically think of
dependencies in a negative sense, Principle #2 – Systems Thinking informs us that
value flows through these dependencies. Yes, there are challenges to be addressed,
but there are also valuable opportunities to exploit. Most importantly, this additional
value is often unique and differentiated. Indeed, an enterprise may offer a set of
solutions via those very dependencies that cannot be matched by competitors. Or
perhaps the competitor has not developed mastery in surfacing the unique and
emerging capabilities that these coordinated value streams can provide.

Coordination roles and responsibilities
► Solution Portfolio Management has overall

responsibility for guiding a portfolio to a set of
integrated Solutions.
Enterprise Solution
Architect Portfolio Mgmt.
► The Enterprise Architect provides technical

guidance for the long-term evolution of
APMO, RTEs,
technologies and platforms and larger STEs
nonfunctional requirements.
► The Agile Program Management Office (APMO)—

along with RTEs and STEs—support efficient,
decentralized program execution.
6-8
Trainer Guidance:
Each level of SAFe is anchored by people in three primary roles, which are generally
a repeating pattern or fractal of the level below it. So, it’s not surprising to see similar
roles for large portfolios. For example, solution portfolio management guides the
portfolio to an integrated set of solutions. The enterprise architect provides technical
guidance for the long-term evolution of technologies and larger non-functional
requirements, and the Agile Program Management office along with RTEs and STEs
support efficient, decentralized program execution and provide servant leadership.

Apply cadence and synchronization
► Ideally, align all Value Self-Driving Vehicles: 2

Streams to a common Autonomous Public Transport
cadence. Autonomous Commercial Vehicles
► Include internal and Courier Vans
external Suppliers. Components:

Engine SUPPLIER
Brakes SUPPLIER
Chassis SUPPLIER
Transmission SUPPLIER
6-9
Trainer Guidance:
Describe how the principles of cadence and synchronization apply equally to the
portfolio level as they do to large solutions. The benefits are the same: making
routines happen regularly and synchronizing the various aspects of multiple value
stream solution development. Shared cadence enables the portfolio-level solution—
via business epics—to move forward in sync with defined planning and integration
points, providing a way to evaluate the solution set under development objectively.
Suppliers could be included, but they may not be Agile organizations.

Introducing new portfolio work
► Epic Owners work with the ART to decompose Epics into Features and
Enablers in advance of the PI that initiates work.
► Epic decomposition can occur during backlog refinement meetings.
Solution Demo
System Demos
3
Epic
Feature
Enabler
Feature
Feature
Epic Owners Epic Feature AGILE RELEASE TRAIN
Enabler
AGILE RELEASE TRAIN
Approve Epics for Split Epics into Features and ARTs implement Features
implementation Enablers during pre-PI Planning and Enablers
6-10
Trainer Guidance:
Here we describe how the portfolio cadence determines the rate and timing at which
new portfolio level work can be added into the system. This cadence provides a
reliable rhythm for introducing new portfolio work at PI boundaries since teams often
cannot meet existing commitments and mix in significant unplanned work.

Ensure integration points
► Frequent integration and testing

provides fast feedback. Full Solution
Integration 4
Full or Partial Integration
► Do not let small changes sit idle; during the PI
find a way to integrate them with

other changes.
► Economic trade-offs are inevitable

in terms of:
AGILE RELEASE TRAIN
AGILE RELEASE TRAIN
AGILE RELEASE TRAIN
– Frequency of integration
– Depth of integration
– Fidelity of feedback
6-11
Trainer Guidance:
When integrating solutions across value streams, it may not be possible to fully
integrate every iteration. Strive to integrate as frequently as economically possible.
Understand the economic trade-offs with less or more frequent integration.
Remember, the more frequently we integrate, the faster the learning. Describe how
DevOps practices, automation, and models can also support end-to-end integration to
demonstrate complete or partial system-level functionality.

The Portfolio Roadmap offers a comprehensive view across all Value Streams
It integrates various aspects of lower-level Roadmaps into a more comprehensive

view, which communicates the larger picture to the Enterprise stakeholders.
5
Portfolio Roadmap
Route following Traffic Transport Autonomous
Autonomous platform and lane keeping First field test On-road testing Delivery Vehicle Vehicle Auto
integration with Vehicle v1.0 certification v1.0 show
Q1 Q2 Q3 Q4 H1 H2 Y3 Y4
Solutions
Enabler Epic Epic Enabler Epic
Enabler Epic Epic Epic
Enabler Epic Enabler Epic Epic
Forecasted work Forecasted work Forecasted

Solution Roadmaps in quarters in half years work in years
Q1 Q2 Q3 Q4 H1 H2 Y3 Y4
Solution GPS Follow route Make turns Perform Delivery Spike Perform delivery tests
6-12
Trainer Guidance:
This slide illustrates a portfolio-level roadmap that covers about three years. The first
year is planned in quarters (e.g., Q1, Q2), which may or may not align with PI
boundaries. The second year is planned in 6-month increments (e.g., H1 and H2).
Anything beyond that is scheduled in years (e.g., Y3 and Y4). As the time horizon
extends, the level of granularity and certainty is significantly reduced. This roadmap is
a roll-up of lower-level roadmaps that communicates the larger solution development
picture to enterprise stakeholders. Note that not every Solution (if you have hundreds)
will be listed. In this kind of structure, look for solution/product families or other
groupings of the individual products.

Deploying and releasing portfolio work
► A System Team dedicated to 4

Ensured integration
6
points
integrating work across the
Value Streams can be helpful Enabler Epic Enabler Epic
in coordinating releases.
Epic Epic
Operations
Support
► Effective DevSecOps
capabilities promote Release
on Demand. System
Release on
Demand
Team
Apply cadence and
synchronization
6-13
Trainer Guidance:
Deploying integrated value across value streams depends on effective DevOps

capabilities. In some cases, ARTs provide all the DevOps capability needed. In
others, there are additional considerations. These may even require dedicated or
shared services and system teams that help integrate the solution into a portfolio-level
release. Can you think of examples of how your organization can benefit from release
coordination processes and responsibilities?

Prepare Share
Discussion: Releasing value across the 5 5
portfolio min min
► Step 1: Discuss as a group:
- What are the portfolio considerations for releasing value in your

context?
- Do you need additional roles for coordination in your context?
- What Value Streams in your portfolio would be on the same
cadence?
- How do you support independent but aligned releases?
6-14
Trainer Guidance:
The purpose of this discussion is to explore opportunities from the interconnections

between value streams. By understanding the interconnections, learners can discuss
what is necessary to ensure proper coordination of the value streams within
their portfolio.


6.2 Supporting program execution and
operational excellence
6-15
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
There are two key points for this topic:

1. Assuring operating alignment and execution consistency across the portfolio is a
constant concern for managers and executives.
2. The LPM function—working through the APMO and Lean-Agile Center of
Excellence (LACE)—can help develop, harvest, and apply successful program
execution patterns across the portfolio.

The function of the Lean-Agile Center of Excellence (LACE)
► Communicating the business need

for SAFe
► Integrating SAFe practices and fostering
communities of practice
► Creating alignment around
organizational changes
The LACE is a small team of people dedicated
► Providing coaching and training to ART to implementing the SAFe Lean-Agile way of
stakeholders and teams working. They operate as an Agile Team.
► Establishing objective Metrics

► Facilitating Value Stream
identification workshops
https://bit.ly/Video-DeliveringBetterBusinessOutcomes
6-16
Trainer Guidance:
The LACE is a small team of people dedicated to implementing the SAFe Lean-Agile
way of working. It is often one of the key differentiators between companies practicing
Agile in name only and those fully committed to adopting Lean-Agile practices and
getting the best business outcomes.
Operationally, the LACE typically functions as an Agile team and applies the same
iteration and PI cadences. This allows the LACE to plan and inspect and adapt in
harmony with the ARTs, serving as an exemplar for Agile team behavior to leaders.
Link: https://bit.ly/Video-DeliveringBetterBusinessOutcomes

LACE operating models
Centralized Decentralized Hub-and-spoke
Local Local
1 1
Local Local Local Local

5 2 5 2
Centralized Central
Local Local Local Local

4 3 4 3
A single instance of SAFe Independent units have their own A small LACE typically serves as
with one portfolio autonomous SAFe portfolios the hub for decentralized spokes
Value Streams and ARTs Cross-business unit collaboration Some core practices are developed
operate under a common can provide the necessary centrally and then shared with
budget knowledge sharing spokes
Centralized funding for LACE Decentralized funding for LACE Centralized funding for hub
personnel, tooling, and personnel, tooling, and coaching personnel and common tooling
coaching
Decentralized funding for LACE
personnel, tooling, and coaching
Enterprise LACE is funded by the Enterprise Local LACE is funded by Local LACE is funded by the portfolio;
through business unit allocations the portfolio Enterprise LACE is funded centrally
6-17
Trainer Guidance:
Describe the three different LACE operating models: centralized, decentralized, and
hub-and-spoke. Be sure students understand when each model should be applied.
LACEs tend to start as centralized, then become decentralize over time.

Decentralized or hub-and-spoke LACE models are local to business units.

The APMO supports portfolio operations and program execution
► Facilitates the portfolio sync
► Works with the LACE to develop,

harvest, and apply successful
program execution patterns across
the portfolio
► Facilitates Lean budgeting and

coordinates portfolio governance
► Fosters decentralized PI Planning

and operational excellence
► Fosters more Agile contracts and Some Enterprises refer to the APMO as a
leaner Supplier and Customer VMO (Value Management Office)
partnerships
https://www.scaledagileframework.com/lean-portfolio-management/
6-18
Trainer Guidance:
Many enterprises have discovered that centralized decision-making and traditional

mindsets can undermine the move to Lean-Agile practices. As a result, some
enterprises have abandoned the PMO approach, distributing all the responsibilities to
ARTs and solution trains.
However, many organizations are better served by redesigning the traditional PMO to
become an Agile PMO (APMO). After all, the people in the PMO have specialized
skills, knowledge, and relationships with managers, executives, and other key
stakeholders that are extremely useful in changing the ways of working.
Briefly describe how the APMO supports portfolio operations and program execution
using the bullet points on this slide.
Link: https://www.scaledagileframework.com/lean-portfolio-management/

Measure and grow to improve LPM competency
Lean Portfolio Management Self-Assessment
► The LPM self-assessment enables Strategy and Investment Funding
the Enterprise to assess their

proficiency in this competency and
identify potential areas
for improvement.
Lean Governance Agile Portfolio Operations
► The LPM Grows are a set of

LPM: Agile Portfolio Operations Grows
recommended resources and actions Agile Portfolio Operations coordinates and supports
decentralized program execution and fosters
organizations can leverage to create

operational excellence.
TBM and SAFe
a learning organization that

ADVANCED
innovates and relentlessly improves.

Value Stream Coordination
INTERMEDIATE
LPM Class Value Stream and ART APMO Formation

LACE Toolkit LPM Toolkit Identification Toolkit LPM Self-Assessment
CORE
https://bit.ly/Community-MeasureAndGrow 6-19
Trainer Guidance:
In most cases, assessing prowess towards business agility spurs the enterprise to
greater, deeper efforts. That leads the business to explore and measure and take
more specific actions on some or all of the seven core competencies. Structured
similarly to the business agility assessment, each core competency assessment has
a set of statements, organized by dimension, that are rated on the same scale as the
business agility assessment. The questions go one step deeper into specific aspects
and areas of opportunity along each of the three dimensions of that competency—in
this case, the LPM.
Link: https://bit.ly/Community-MeasureAndGrow

Prepare Share
Discussion: The role of the LACE and APMO 5

min
3
min
► Step 1: Working in your group, discuss how the LACE and the APMO
help your Enterprise achieve its business goals.
6-20
Trainer Guidance:
Since people often get confused between the LACE and APMO, the purpose of this
exercise is for them to reason through their functions and why they may or may not
need both in their context. If the organization doesn’t currently have a PMO, it may or
may not make sense to create one. It’s important to figure out who will be handling
the responsibilities in either case.


Duration
Action Plan: Supporting program execution and 5
operational excellence min
► Step 1: Reflect on the topics


can take to support program
execution and operational
excellence

class
6-21
Trainer Guidance:
Learners will reflect on what action they can take to support program execution and
foster operational excellence and use the action plan page in their workbooks to
capture the ideas. If there is time, ask learners if they would like to share their action
plan items with the class.

Lesson review
In this lesson, you:
► Described Value Stream coordination
► Described the role of the LACE in supporting program execution
► Discussed the value of the APMO
► Explained how to use Measure and Grow to improve program execution
6-22
Trainer Guidance:

Articles used in the lesson
► "Value Streams"
/value-streams/

► "Identify Value Streams and ARTs"

/identify-value-streams-and-arts/
6-23
Trainer Guidance:
Links:
• https://www.scaledagileframework.com/value-streams/
• https://www.scaledagileframework.com/identify-value-streams-and-arts/

Read the blog post, ‟Three Steps to Prepare for a Download the ”Development Value Stream Canvas”
Successful Value Stream Workshop,” for guidance toolkit to guide you through the process of defining
on how to achieve organizational readiness. your development Value Streams.
https://bit.ly/Article-PrepareValueStreamWorkshop https://bit.ly/Toolkit-
DevelopmentValueStreamCanvas
Access the “Value Stream and ART Identification Download the “Value Stream Capacity Estimation
Workshop Preparation Guide” to create the right Worksheet” to calculate current development value
conditions for success. stream budgets.
https://bit.ly/Toolkit-VSAIWPreparationGuide https://bit.ly/Toolkit-ValueStreamCapacityWorksheet
Access the Community Platform to view valuable

resources for the four stages of Organizing
Around Value.
https://bit.ly/Community-OrganizeAroundValue
6-24
Trainer Guidance:
Links:
• https://bit.ly/Article-PrepareValueStreamWorkshop
• https://bit.ly/Toolkit-DevelopmentValueStreamCanvas
• https://bit.ly/Toolkit-VSAIWPreparationGuide
• https://bit.ly/Toolkit-ValueStreamCapacityWorksheet
• https://bit.ly/Community-OrganizeAroundValue

Lesson 7
Applying Lean Governance

Trainer Guidance:

Lean governance: Collaboration and responsibilities
Lean governance manages spending, audit and compliance, forecasting
expenses, and measurement.
Forecast and budget dynamically
Enterprise Business Measure portfolio performance

Architect Owners
Coordinate continuous compliance
Agile
PMO/LACE
7-2
Trainer Guidance:
We’ll use the lean governance collaborations and responsibilities as the outline for
teaching this lesson. Use it to set context for this lesson.

Lesson Topics
7.1 Measuring LPM Objective
Strategy
& Investment Key Results
performance Funding
Enterprise
7.2 Coordinating compliance

Executives
Business Enterprise
7.3 TBM with SAFe

Owners Architect
7.4 Agile software

capitalization Lean
Agile
Portfolio
7.5 The Getting Started

Workshop APMO

7.6 Additional LPM
Resources © Scaled Agile, Inc.
7-3
Trainer Guidance:

Learning objectives
► Discuss strategies for measuring Lean portfolio performance
► Explain how to achieve continuous compliance
► Relate Technology Business Management to SAFe
► Explore Agile software development capitalization
► Prepare for the LPM Getting Started Workshop
7-4
Trainer Guidance:

7.1 Measuring LPM performance
7-5
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
We discussed adjusting portfolio budgets with participatory budgeting (how

stakeholders decide which initiatives to fund) considering the value stream budgets
for run- and grow-the-business expenses. After deciding what to fund, the Epics are
sequenced for implementation, and the implementation is forecasted.
Now we will continue with the topic of how we measure the performance of
the portfolio.
Key points for this topic:

1. Value streams may establish a broad set of measures.
2. Lean portfolio metrics provide the measurements for assessing internal and
external progress for an entire portfolio.

Establish LPM Metrics
► Metrics are agreed-upon Goals Measures Desired Benefits
measures used to evaluate Employee Engagement

Employee surveys: Agile People
Operations data
Improved employee satisfaction, higher employee
engagement, and better business outcomes
how well the organization Customer Satisfaction Net Promoter Score (NPS) Improved customer experiences and loyalty
is progressing toward Partner Health Partner and vendor surveys Improved ecosystem relationships
Improved ability to respond to market changes,
business and technical Business Agility Business Agility self-assessment
emerging opportunities and threats
objectives. Portfolio Performance

Objectives and Key Results (OKRs);
LPM Self-Assessment
Better alignment and improved progress toward the
portfolio’s strategic themes, and portfolio
performance
Improved performance against the forecasted
► Each portfolio must Value Stream Performance Value Stream KPIs
business outcomes
Program Predictability Program predictability measure
establish Metrics to assure
Improved actual business value achieved
Time-to-Market Number of releases; feature cycle time More frequent releases; faster feature delivery
results are continually Relentless improvement
Self-assessments for each level of the Relentless improvement in team, program and
Framework portfolio performance
improving, while promoting Quality
Defect count and cycle time; support Improved customer satisfaction; reduced support call
call volume; escaped defects volume, and lower product development costs
decentralization of
decision-making.
7-6
Trainer Guidance:
Provide an overview of the set of LPM metrics that can be used to assess internal and

Development Value Stream KPIs measure portfolio progress
Development Value Stream key performance indicators (KPIs) are the quantifiable measures
used to evaluate how a Value Stream is performing against its forecasted business outcomes .
Strategic Themes
Theme Key Result
Key result 1
Value Stream KPIs Strategic Key result 2
create the feedback Themes Key result 1
loop back to Key result 2
the portfolio. Key result 1

Key result 2
Key result 3
KPIs Key result 4
Value Stream KPIs
KPIs may include Key result 1

Key result 2
KPI Measure 1
outputs, outcomes, KPI Measure 2

KPI Measure 3
employee satisfaction, KPI Measure 4
Agile Team KPI Measure 5
performance, KPI Measure 1

and more. KPI Measure 2
KPI Measure 3
KPI Measure 4
7-7
Trainer Guidance:
A combination of value stream KPIs and portfolio business objectives indicate the
health of the portfolio.

Example development Value Stream KPIs
Type of Value Stream Example KPIs

AARRR (also known as ‘pirate metrics’):
A web service for attracting and retaining users Acquisition, Activation, Revenue, Retention,
Referrals
Net Promoter Score (NPS), first response time,
Support Value Stream for products or services mean time to resolution, customer experience
score, cost per ticket
Units sold, revenue, gross margin, market
Product Value Stream share, quality metrics, customer satisfaction,
trends on all
Cost vs. budget, predictability, NPS, feature

Software or hardware development Value
cycle time, quality, release frequency, horizon
Stream
investments, guardrails, leading indicators
NPS, total members, revenue per member,

Online membership Value Stream active members, feature usage, churn, trends
on all
NPS, revenue, gross margin, customer
Professional services delivery Value Stream
retention, referrals, billable utilization
7-8
Trainer Guidance:
Provide an overview of the set of LPM Metrics that can be used to assess internal and

Create high-impact development Value Stream KPIs
► Focus on objective, quantitative, and measurable

business outcomes that align with Strategic Themes
and OKRs.
► Four to seven KPIs per Value Stream is typically

sufficient; more is not better.
► Avoid ‘vanity metrics’, which measure internal or

external activities, but do not correlate to desired
business results.
7-9
Trainer Guidance:
Value stream key performance indicators (KPIs) are the quantifiable measures used
to evaluate value stream performance against its forecasted business outcomes.
Value stream KPIs close the feedback loop that travels from:
• Strategic themes through the Lean budgeting process funding the value streams
• Through the portfolio Kanban that establishes key portfolio initiatives
• Forward to measuring the business outcomes the investments were intended
to create

Prepare Share
Discussion: Measuring LPM performance 7

min
3
min
► Step 1: Working your group, discuss the following:
– How do you currently assess the progress of

your portfolio?
– What is one Metric you might remove? How
might removing it effect operations?
– What is one Metric you could add? How might
adding it improve operations?
7-10
Trainer Guidance:
The purpose of this discussion is to review the set of metrics and assess what is
relevant to measuring the LPM performance for the portfolio in their organizations.


7.2 Coordinating compliance
7-11
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Traditional compliance approach
► Many organizations rely on a comprehensive quality management system

(QMS) that is based on phase-gated development models, which are
intended to reduce risk and ensure compliance.
► Traditional compliance approaches don’t scale, nor do they keep pace with
accelerating time-to-market demands.
Inspection does not improve the quality, nor guarantee

quality. Inspection is too late. The quality, good, or bad, is already
in the product. As Harold F. Dodge said, ‘You cannot inspect
quality into a product.’ ”
—W. Edwards Deming

7-12
Trainer Guidance:
Briefly outline how traditional development models have historically obstructed

organizational efforts to meet regulatory requirements.

Regulatory and compliance meet Agile
Regulatory and compliance Agile Manifesto
• Quality, safety, security, and efficacy

• Specifications Individuals and interactions over processes and tools
• Verification and validation
Working software over comprehensive documentation
• Objective evidence
Customer collaboration over contract negotiation
• Inspections, audits, and sign-offs
• Quality management systems (QMS) Responding to change over following a plan
• Metrics: defects, requirements and

code coverage, and traceability
7-13
Trainer Guidance:
Lean-Agile practices and those associated with traditional compliance processes

appear to be diametrically opposed, with conflicting goals and disparate communities.
Through rigorous, stage-gated activities, the compliance world emphasizes quality,
safety, and security to ensure that systems perform their intended purpose without
causing harm. To this community, change and variability equal added risk
and uncertainty.

Coordinating continuous compliance
A Lean-Agile quality management approach improves quality and makes compliance

more predictable.
Waterfall
Requirements
Design
Implementation Defer compliance to the
Verification end of Solution
development
Documents Documents Unverified System System
Incremental delivery
Validate ongoing
compliance with relevant
standards and regulations
7-14
Trainer Guidance:
By contrast, Lean-Agile development strives to discover the ultimate and optimal

system iteratively by creating an environment for learning. Building a working system
in frequent, small batches confirms or rejects design hypotheses.

Improving quality with a Lean approach
►Build the Solution and Requirements Design Critical design Planned
Traditional
complete complete complete deployment
compliance incrementally.
Requirements
►Organize for value and Design

Implementation
compliance. Verification
►Build quality and compliance in. Functional test Functional test

Security test Security test
Lean
Performance test Performance test
►Continually verify and validate.

QA test QA test
Quality Safety V&V Security Compliance test Compliance test
Progress
►Release validated Solutions on
Done
demand. Building functionality
Functional test automation
Compliance test automation
7-15
Trainer Guidance:
Unfortunately, the waterfall-centric QMS system seriously inhibits, and can even
prevent, the adoption of newer methods. This is because older methods are
hardcoded into the only approved way of working. SAFe describes an incremental
approach to both development and compliance. Those who want the benefits of
Lean-Agile development—such as faster time-to-market and higher quality—will
typically have to evolve a Lean QMS.

For more information on compliance with SAFe
Achieving Regulatory Achieving Regulatory and Industry

and Industry Standards Standard Compliance with the
Compliance with the
Scaled Agile Framework®
Scaled Agile Framework� (SAFe �)
Available in the SAFe Community Platform
https://www.scaledagileframework.com/achieving-regulatory-and-industry-standards-compliance-with-safe/
7-16
Trainer Guidance:
Make sure to read the white paper prior to teaching the class and to recommend it as
a resource to the class participants.
Regulatory compliance white paper link:

https://www.scaledagileframework.com/achieving-regulatory-and-industry-standards-
compliance-with-safe/

7.3 TBM with SAFe
7-17
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
Previously, we discussed how Lean governance influences spending, future expense

forecasts and milestones, and governance of the development effort. However, many
IT organizations don’t have full transparency into their spending or don’t have a
method for allocating their costs and, therefore, may not demonstrate the real value
they bring to the business in return for the investment in technology. Fortunately,
there’s an established approach to running IT like a business. In this section of the
lesson, we discuss the technology business management framework and its
value propositions.

Technology Business Management (TBM)
► Many Enterprises using SAFe have 2 Organizational
Elements
Continuously Improve
implemented TBM to provide a standard IT Plan and Govern
cost accounting system to understand the Run-the-Business Change-the-Business
total cost of ownership of Solutions. 4 Conversations
Deliver Shape
4 Core Cost for Business-Aligned Investment in Enterprise
Value for Business
Disciplines Performance Portfolio Innovation Agility
TBM is a value-management framework

Money Demand
► Value Conversations
that helps CIOs, CTOs, financial, and

business leaders measure the value IT The TBM Framework
Create Transparency
brings to the Enterprise. 2 Organizational

Changes
Position for Value
► It provides a standard way to categorize SAFe® White Paper

Accelerating Business Value with SAFe
and Technology Business Management
and measure IT investments and make

A Scaled Agile, Inc. White Paper
March 2019
trade decisions.
► For more on how SAFe and TBM work

together, read the white paper. https://bit.ly/Community-TBMWhitePaper
7-18
Trainer Guidance:
TBM provides technology leaders with standards and validated best practices to
measure and communicate the cost, consumption, and performance of business
technology investments to their business partners.
Link to TBM white paper: https://bit.ly/Community-TBMWhitePaper

7.4 Agile software capitalization
7-19
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:
This section is about capital expenses (CapEx) and operating expenses (OpEx).
Enterprises fund a SAFe portfolio to support the development of the technical
solutions that allow the company to meet its business and financial objectives. These
Lean budgets may include both CapEx and OpEx elements.

Software capitalization in Agile
► Some organizations capitalize certain costs incurred in the development,

implementation, or purchase of software assets.
► Agile capitalization strategies and practices are fundamentally different from

traditional approaches.
► Explore strategies for Agile software capitalization in this SAFe Advanced

Topic article: http://www.scaledagileframework.com/capex-and-opex/
7-20
Trainer Guidance:
SAFe Advanced Topic article about CapEx and OpEx:

http://www.scaledagileframework.com/capex-and-opex/

Software capitalization in Agile: Example
Expense Capitalize
Costs associated with establishing Costs associated with committed new

feasibility of a program, including: projects and upgrades and
Feasibility research and enhancements that increase
prototyping functionality of existing software
(including major revisions of third-party
Analysis and formulation of products), which may include detailed
alternatives
design activities for committed new
High-level architectural work in functionality, including:
support of decision-making
Salaries
Training
Cost of materials
Production maintenance Contract labor
and support
Burden, including some directly
associated indirect labor, and
interest
Excluded: General and administrative
cost and overhead
Note: The treatment of software costs and potential for capitalization vary by country, industry, and individual
company policy. 7-21
Trainer Guidance:

7.5 The Getting Started Workshop
7-22
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Introduction to the LPM Getting Started Workshop
► Prepare and create a plan for the

portfolio to successfully adopt and
execute SAFe Lean Portfolio
Management (LPM). Getting Started with LPM
One Day Workshop
► This workshop supports SPCs,
members of the APMO and LACE,
and senior leaders.
► After course completion,

conducting the LPM workshop is
the first step toward adopting the
portfolio.
7-23
Trainer Guidance:
Students will only have access to this page after you mark them as having attended.
Link: https://bit.ly/Communtiy-AdoptLPM

Key activities of the LPM Adoption Roadmap
Measure &
Align Organize Strategize Operate Govern Grow
 Establish the LPM  Capture the  Identify  Establish Agile  Adopt Lean  Run assessments
team current state of Strategic PMO and LACE Metrics to baseline the
the portfolio Themes current state
 Gain executive buy-in  Establish RTE  Establish Value
 Establish  Define the and Scrum Stream KPIs  Learn and act using
 Identify opportunities
Portfolio Kanban Portfolio Vision Master CoPs the grows for each
for improvement of the
LPM dimension
LPM process  Schedule LPM  Identify Epics to
events realize the
 Agree on the
vision
definition of the
portfolio  Establish Lean
Budgets and
 Understand the
Guardrails
Enterprise strategy
7-24
Trainer Guidance:

Prepare Share
Discussion: Getting ready for the LPM Getting 7 3
Started Workshop min min
► Step 1: Working in your group, discuss the

following:
- What research and activities need to be

done prior to the workshop?
- Who should attend the workshop?
- When should you conduct the workshop?
7-25
Trainer Guidance:
The purpose of this discussion is to prepare learners for the upcoming workshop.


7.6 Additional LPM Resources
7-26
©©Scaled
Scaled Agile,
Agile, Inc.Inc.
Trainer Guidance:

Continue the learning journey in the SAFe Community Platform
7-27
Trainer Guidance:

LPM resources page available on the SAFe Community Platform
7-28
Trainer Guidance:
Link: https://bit.ly/SAI-SAFeEnterprise

Templates and tools from the SAFe Community Platform
► SAFe Community Platform SAFe Collaborate available on the Community Platform
provides a curated
collection of LPM resources
and templates to support
the LPM team.
► Remotely engage in real-

time with SAFe Collaborate.
https://bit.ly/Community-LandingPage
7-29
Trainer Guidance:
Direct learners to the community platform to the implement tab.
Link: https://bit.ly/Community-LandingPage

Download the LPM Execution Toolkit from the Community Platform
Toolkits main uses: Toolkit Contents:

• Introduction to LPM for Executives
• Tip executives and stakeholders to LPM • LPM Readiness Workbook
• LPM Adoption Roadmap
• Assist with conducting LPM activities • Strategic Themes Template (OKRs)
• Additional learning • SWOT and TOWS Analysis Templates
• Portfolio Canvas Template
• Development Value Stream Canvas
• Epic Hypothesis Statement Template
• Lean Business Case Template
SAFe LPM Execution Toolkit • Portfolio Kanban Exit Criteria
• Lean Budget Guardrails Template
• Participatory Budgeting Guide
• Participatory Budgeting Handouts
• Participatory Budgeting Event Template
• Strategic Portfolio Review
• LPM Events Calendar
• Agile Contracting with SAFe video
• Portfolio Sync
• Forecasting Epics Template
• Compliance White Paper
https://bit.ly/Community-ToolkitsandTemplates • CapEx and Op Ex in Agile Development
• TBM White Paper
7-30
Trainer Guidance:
SPC’s and those who have passed the LPM exam will have access to the LPM
execution toolkit.
Link: https://bit.ly/Community-ToolkitsandTemplates

Learn more about SAFe and SAFe Enterprise
Visit our free knowledge base:

Adapt and Thrive with SAFe Enterprise
https://bit.ly/SAI-SAFeEnterprise
7-31
Trainer Guidance:
Links:
• https://www.scaledagileframework.com/
• https://bit.ly/SAI-SAFeEnterprise

Duration
Action Plan: Measuring Lean portfolio performance 5

min
► Step 1: Reflect on the topics we


can take to measure the
performance of the portfolio

class
7-32
Trainer Guidance:
Learners will engage in reflection upon items the action they can take to measure the
performance of their portfolios using the action plan page in their workbooks. If there
is time, ask if learners would like to share their action plan items with the class.

Lesson review
In this lesson you:
► Discussed strategies for measuring Lean portfolio performance
► Explained how to achieve continuous compliance
► Related Technology Business Management to SAFe
► Explored Agile software development capitalization
► Prepared for the LPM Getting Started Workshop
7-33
Trainer Guidance:

► "Achieving Regulatory and

Industry Standards Compliance
with SAFe"
/achieving-regulatory-and-industry-
standards-compliance-with-safe/
► "CapEx and OpEx"

/capex-and-opex/
7-34
Trainer Guidance:
Links:
• https://www.scaledagileframework.com/achieving-regulatory-and-industry-
standards-compliance-with-safe/
• https://www.scaledagileframework.com/capex-and-opex/

Watch this one-minute video, Measure your Explore this nine-video series, Agile
Progress Towards Business Agility, to learn Contracting with SAFe, to guide an approach
how SAFe practices can positively impact within Lean Agile and
your organization. DevOps context.
https://bit.ly/Community-MeasureAndGrow https://bit.ly/Playlist-AgileContractingwithSAFe
Use the Measure and Grow page to access Download the SAFe Measure and Grow
the resources needed to facilitate a Measure Toolkit for tools and resources to
and Grow workshop facilitate Measure and Grow workshops in
https://bit.ly/Community-MeasureAndGrow your organization
https://bit.ly/Toolkit-MeasureandGrowWorkshop
Join the Measure and Grow Community Checkout our Measure and Grow FAQs to
Forum to learn from peers in the SAFe ask and review answers form peers and
community SAFe experts in the field
https://bit.ly/Community-MeasureandGrowForum https://bit.ly/Community-MeasureandGrowFAQs
7-35
Trainer Guidance:
Links:
• https://bit.ly/Community-MeasureAndGrow
• https://bit.ly/Playlist-AgileContractingwithSAFe
• https://bit.ly/Community-MeasureAndGrow
• https://bit.ly/Toolkit-MeasureandGrowWorkshop
• https://bit.ly/Community-MeasureandGrowForum
• https://bit.ly/Community-MeasureandGrowFAQs

Lesson 8
Practicing SAFe

Trainer Guidance:

Duration
Video: SAFe Certification Benefits 3

min
https://bit.ly/Video-BenefitsofCertification
8-2
Trainer Guidance:
Show the video to highlight the value of becoming a SAFe Certified Professional.
Link: https://bit.ly/Video-BenefitsofCertification

A Path Towards Certification
Access exam study guides and practice tests

Becoming a
Certified
Download your certificate of course completion SAFe
Professional
Take the Certification Exam
Showcase your Digital Badge and get recognized as

Certified SAFe Professional
Exam and certification details at:

https://bit.ly/BecomingSAFeAgilist
© Scaled
© Scaled Agile,
Agile, Inc.
Inc. 3 8 -3
Trainer Guidance:
This slide highlights the steps to take after class for those interested in certification.
Demonstrate how to access class learning plans by logging into the SAFe Community
Platform. Using the top Navigation, click on Learn, and My Learning. Select a learning
plan to show the students an example of the exam study guides, practices tests and
certification exam.
As a SAFe Certified Professional, share a story of how your certification helped you in
your career. Answer any questions about the exam preparation materials on the
SAFe Community Platform.

Duration
Video: Welcome to the SAFe Community Platform 3

min
https://bit.ly/Video-WelcomeSAFeCommunityPlatform
8-4
Trainer Guidance:
Show the video to highlight the assets and resources available to learners after class
on the SAFe Community Platform.
Link: https://bit.ly/Video-WelcomeSAFeCommunityPlatform

Team
LPM and Page
Class Technical Agility
8-5
Trainer Guidance:
Demonstrate the navigation to the class page: Login, Learn, My Classes
Demonstrate each tab of the class page. Spend additional time highlighting the
various resources in the Practicing SAFe tab, which will be available once the class is
completed.
On the second day of the course, mark those who attended.

Team
SAFe and
ARTTechnical
and TeamAgility
Events
SAFe ART and Team Events: Tools to support RTEs, Scrum Masters, and
coaches in scheduling, preparing for, and facilitating key SAFe events
8-6
Trainer Guidance:
Demonstrate the navigation to SAFe ART & Team Events page. Once logged into the
SAFe Community Platform, navigate to the SAFe ART & Team Events Page: Login,
Implement, SAFe ART & Team Events
From the SAFe Community Platform, all learners can access the resources on the
SAFe ART & Team Events page. The purpose of the page is to provide the
necessary resources for facilitating and participating in SAFe ART and Team events
for both in-person and distributed teams. Here is a list of items available on the SAFe
ART & Team Events page that were mentioned in this course:
• Facilitator’s Guide to PI Planning
• Distributed I&A Facilitator’s Checklist
• Iteration Retrospective Facilitator Checklist
As a trainer, share a story of how you have used one of the resources on this page.
Share any additional tips you have for your class on how to practice SAFe events.

Team
SAFe and Technical Agility
Toolkits
Explore ready-to-use templates and job resources to help execute

SAFe events and workshops more effectively
SAFe Executive SAFe LPM Execution SAFe Regulatory and

Workshop Toolkit Toolkit Compliance Toolkit
Introducing SAFe SAFe Implementation

Toolkit Roadmap Toolkit
8-7
Trainer Guidance:
Demonstrate the navigation to the Toolkits and Templates page.
Once logged into the SAFe Community Platform, navigate to the Toolkits and
Templates page. Login  Implement  SAFe Toolkits and Templates
Remind learners of the following toolkits that have already been mentioned in class:
• Iteration Execution Toolkit
• PI Planning Toolkit
• Team Formation Toolkit
• PI Execution Toolkit
• SAFe Remote ARTs Toolkit
Tell a personal story of a toolkit you have used to execute an event. Highlight that all
members have access to the following toolkits:
• Essential SAFe
• Introducing SAFe
• Iteration Execution
• PI Planning Toolkit
• PI Execution Toolkit
• Meetup Organizer
• Remote ARTs
• Measure and Grow Workshop
• Team Formation
Plus, more toolkits will be available after certification.

Team and Technical
E-learning ResourcesAgility
Discover and develop skills through self-paced, interactive

e-learning modules to achieve your personal and professional goals
8-8
Trainer Guidance:
Demonstrate the navigation to Getting Started page. Once logged into the SAFe
Community Platform, navigate to the Getting Started Page. Login  Learn 
Getting Started.
From the SAFe Community Platform, all learners can access the resources on the
Getting Started page. The purpose of the page is to provide a resource library
designed to build familiarity with Agile, SAFe, and how these practices can support
additional post-class learning.
These items are in a suggested order to support those newest to Agile and SAFe
progress through all topics in a sequenced way.

Team and Technical
Community Video HubAgility
Access videos to support your learning and grow your skills
8-9
Trainer Guidance:
Demonstrate the navigation to Community Video Library: Login  Learn 

Media Library
Note that the video thumbnails on the slide are not linked to the community site.
Please showcase the video library and the navigation process to help orient learners
to the platform and how to use it.
Find a video that was impactful for you and share the story of how you used the video
with your students.
Some of our most watched videos are:

• Introduction to PI Planning: A Quick Overview
• SAFe RTE Stories: Tamara Nation
• An Overview of WSJF
• Business Owners in SAFe
• How to Run an Effective Iteration Planning Meeting
• Measure Your Progress Toward Business Agility
• What is DevOps?
• Value Stream Mapping

Team
Collaborate
Organize and run virtual SAFe events in real time

SAFe Collaborate is a visual, cloud-based workspace where organizations can
orchestrate virtual SAFe events activities easily and effectively with predesigned and
customizable templates.
https://bit.ly/KC-LPM
8-10
Trainer Guidance:
Demonstrate the navigation to SAFe Collaborate.
Once logged into the SAFe Community Platform, navigate to SAFe Collaborate:
Login  Implement  Access SAFe Collaborate.
SAFe Collaborate is a tool for all SAFe Community members and included in the
SAFe Community Membership.
If you did not use the SAFe Virtual Classroom, find a Collaborate template that you
have used to facilitate a SAFe event and share a story with the class.
Link: https://bit.ly/KC-LPM

Team andand
Measure Technical
Grow Agility
Evaluate progress towards business agility with the SAFe

assessments, Measure and Grow workshop and our
assessment partners.
Business Agility Assessment
Team and Technical Agility (TTA)
5.00
Measure and Grow
Workshop Toolkit
Continuous 4.00
Agile Product
Learning Culture Delivery
(CLC) (APD)
3.00
2.00
1.00
Enterprise
Organizational Solution Delivery
Agility (OA) (ESD)
Lean-Agile Lean Portfolio

Leadership Management
(LAL) (LPM)
8-11
Trainer Guidance:
Demonstrate the navigation to the Measure and Grow page.
Once logged into the SAFe Community Platform, navigate to the SAFe Assessments
Page: Login  Measure  SAFe Assessments.
Use the Measure and Grow tools and guidance to determine your progress towards
Business Agility. These resources include a video and toolkit designed to help you to
prepare to facilitate, and assessments on Business Agility and the SAFe seven core
competencies. Try the online SAFe assessments with our partners Agility Health and
Comparative Agility.
Share a story as to why and how assessments are a valuable follow-up in learners'
practice of SAFe.

Team
Forums
Join the SAFe Lean Portfolio Management Community Forum to

connect with a community of LPM practitioners.
8-12
Trainer Guidance:
Demonstrate the navigation to the SAFe Release Train Engineers Community forum.
Once logged into the SAFe Community Platform, navigate Connect  Community
Forums  search Lean Portfolio Management  select the group  demo how to
join and add a question that was added to the Parking Lot during the course

Team
SAFe and
FAQsTechnical Agility
When you need support, check the FAQ page for your
question, or contact SAI support directly.
8-13
Trainer Guidance:
Demonstrate the navigation to the SAFe Support site.
Once logged into the SAFe Community Platform, navigate  Support  FAQ page
 Learner  show some examples
Great examples include:

• FAQs on how to use SAFe Collaborate (with how-to videos)
https://support.scaledagile.com/s/topic/0TO6T000001EKrsWAG/safe-
collaborate?language=en_US
• FAQs on our certification program
https://support.scaledagile.com/s/topic/0TO0W000001YtQBWA0/certifications?lan
guage=en_US
• FAQs for using the Community Platform
https://support.scaledagile.com/s/topic/0TO6T000001EKrtWAG/community-
platform?language=en_US
Show the students how to contact support:

https://community.scaledagile.com/s/contactsupport

Team andOne-Day
Optional Technical Agility
workshop
To access additional assets to support running the workshop and adopting LPM,
go to the Adopt LPM page and select Understand and Align.

https://bit.ly/Communtiy-AdoptLPM 8-14
Trainer Guidance:
The optional one-day workshop is included in the courseware kit.

Good luck on your
SAFe Practice
with the
SAFe Community
Platform!
https://community.scaledagile.com
8-15
© Scaled Agile, Inc. 15
Trainer Guidance:
Link: https://community.scaledagile.com/

Getting Started
with Lean Portfolio
Management
One-Day Workshop
5.1.2
Trainer Guidance:
This workshop is optional for public classes and must follow the two-day LPM course.
Before this workshop starts, the facilitator should mark all attendees as attended on
the Community site, so they gain access to all resources required in this workshop.

Workshop logistics
► Workbook
► Group activity
templates
► Community
platform access
© Scaled Agile. Inc. 1-2
Trainer Guidance:
• Workbook: Instruct the attendees to download the workshop workbook from the
learning plan.
• Group activity templates: Provide the link to the workshop in Collaborate and ask
attendees to click on it. Trainer is expected to ensure the group activity templates
are set up in Collaborate or other tooling for online collaboration. Make sure to
reset the dates of the class, to include the workshop date.
• Community platform access: As a reminder, this workshop will leverage assets on
the Community platform that are restricted to attendees of the LPM class,
enterprise subscription members, and SPCs. Facilitator needs to ensure they have
uploaded the class roster at least 24 hours in advance of the workshop so that
attendees can access resources and assets on the Adopt LPM page (Community
platform). If the facilitator does not submit the roster at least 24 hours in advance,
the participants will not have access to the Adopt LPM page and its assets.

Getting started
with LPM
• Introduction to
implementing LPM
• Prepare for the LPM

kickoff event
• Next steps
Trainer Guidance:
This workshop has three main sections:

1. An overview of the LPM implementation steps with supporting assets
2. A drill down on the first step of Align which includes describing the LPM kickoff
event designed to happen within two - four weeks of this workshop
3. Immediate next steps to start the journey, including anticipating some common
challenges

Introduction to the LPM Getting Started Workshop
Purpose
► This one-day workshop is designed

for change leaders, SPCs, coaches,
members of
the APMO or LACE to prepare for
the SAFe Lean Portfolio
Management (LPM) kickoff event.
Pre-requisite
► Participants in this workshop are

required to attend the full two-day
LPM class in advance.
Trainer Guidance:
This workshop is designed to help the change agents who are implementing LPM to
prepare for an effective LPM kickoff event.
The content builds on what is in the LPM course and does not duplicate it. LPM class
attendance is a pre-requisite to this workshop.

Workshop objectives
By the end of this workshop,

you will be able to:
► Describe the LPM implementation

roadmap to team members. Align Organize
► Anticipate common challenges in

implementing LPM.
Strategize Operate
► Prepare for the LPM kickoff event.
Measure &
Govern Grow
Trainer Guidance:
This is a brief slide to set context. Instructors should not teach to the six steps from
this slide.
Three things to look forward to today:

1. Understand the details in the LPM implementation roadmap.
2. Anticipate common challenges, and prepare with success patterns.
3. Get ready the LPM kickoff event.

Duration
Activity: Watch the LPM in Practice video 5

min
As we go through the LPM implementation steps, 1 2
► Step 1: Access the LPM resources on the

Community platform:
- Sign into the Community Platform

- Select Implement > Adopt LPM > Align
► Step 2: Open the LPM Practice Guide 3
module one: Align
► Step 3: In the Align practice guide module,

watch the LPM in Practice video
Trainer Guidance:
Participants need to log into the Community site to access the LPM practice guide
module one: Align (go to the Adopt LPM page, click on the Align card, and then open
the Align module of the LPM practice guide). Have attendees navigate to the series
overview and watch the LPM in Practice video, which is about 30 seconds long.
Trainer needs to ensure they have submitted the LPM course roster at least 24 hours
in advance of the Getting Started Workshop for participants to have visibility to the
Adopt LPM page and its assets. This asset can be found inside the Align practice
guide or on the Align page. If you do not submit the roster at least 24 hours in
advance, the participants will not have access to the Adopt LPM page and its assets.
Purpose: To demonstrate accessing the Community Platform, have participants log

on to the platform, and guide them to the Practice Guide for review
Remote Guidance: Refer to the Virtual Classroom or Remote Group Document

slides for this activity.

Exploring the LPM implementation roadmap
Measure &
Trainer Guidance:
The LPM implementation was abstracted into these six steps. The steps will be
discussed in the upcoming slides. Trainers should avoid teaching the details of the
steps on this slide.

Duration
Align the people and start up activities 5

min
Align stakeholders for launching the LPM implementation Suggested asset

and creating a sense of urgency for change. Align module in
LPM Implementation
Align ► Gain executive buy-in. Practice Guide
► Agree on the definition of your portfolio.

Question:
What will you do ► Evaluate your portfolio readiness.
to help the people
impacted by
► Kick off the LPM journey with a high visibility event.
the change, to
► Develop your LPM implementation plan and
connect
change strategy.
with LPM?
► Establish the LPM team and participants.
► Schedule LPM events.

https://bit.ly/PG-
GuidetoImplementingLPM
► Communicate the LPM change vision.
Trainer Guidance:
1. Be brief: The facilitator should briefly cover some of the key messages in this slide.
2. Question discussion: Facilitate a class discussion using the question listed on the
left of the slide.
3. Skip the assets: The suggested assets are cited for future reference, and not to
open during class.
4. Take notes: Encourage attendees to capture the question responses and key
learnings in their workbooks.
Purpose: The Align step is focused on forming the LPM participants and
determining early decisions such as portfolio scope. Here we weave in change
leadership techniques and help the change agent prepare for a high visibility LPM
kickoff event.
Link: https://bit.ly/PG-GuidetoImplementingLPM

Duration
Organize the development value streams in 5

the portfolio min
Suggested asset
Organizing the Value Streams and ARTs to Generating Buy-in module in
Organize Around Value
Organize
optimize the flow of value in the portfolio, by practice guide
facilitating the Value Stream and ART Identification
Question: workshop (VSAIW).
Is your portfolio
organized around ► Generate buy-in for the workshop.
value? What can
you do to improve
► Prepare to identify Value Streams and ARTs.
the flow of value?
► Run the Value Stream and ART
Identification workshop.
► Take action.
https://bit.ly/Community-
OrganizeAroundValue
Trainer Guidance:
left of the slide.
open during class.
Purpose: The Organize step sets the context to organize the ARTs and solution
trains around the flow of value, with the Value Stream Identification and ART Design
Workshop (VSAIW). While many organizations may have run the VSAIW in the past,
it is recommended to re-run it with the broader scoping of the portfolio. It is likely that
additional Value Streams will be invited.
Link: https://bit.ly/Community-OrganizeAroundValue

Duration
Connect the portfolio to the Enterprise strategy 5

min
Suggested asset
Establish the Portfolio Vision, Strategic Themes, Strategize page
Strategize
and Lean Budget Guardrails to connect strategy
to execution.
Question: ► Identify Strategic Themes with key results.
What are the
things you need ► Define the Portfolio Vision.
to do to connect
your portfolio to ► Establish Lean Budgets and Guardrails.
the Enterprise
strategy?
OrganizeandStrategize
Trainer Guidance:
left of the slide.
open during class.
Purpose: In the Strategize step, you’ll connect the overall Enterprise strategy to what
the teams will be executing, through setting the Portfolio Vision, Strategic Themes,
and Lean Budget Guardrails.
Link: https://bit.ly/Community-OrganizeandStrategize

Duration
Establish and run LPM operations 5

min
Suggested asset
Evolve the Portfolio Kanban system and Operate page
Operate investment decision making.
► Establish and evolve the Portfolio

Question: Kanban flow.
Who should
engage in evolving
the Portfolio
► Facilitate successful LPM events, including
Kanban system Participatory Budgeting.
and events?
How will you ► Prepare the Value Stream participants for the
empower members
of the Value LPM implementation. https://bit.ly/Community-OperateLPM
Stream to take
meaningful action
in the LPM
implementation?
Trainer Guidance:
left of the slide.
open during class.
Purpose: The Operate step addresses running the portfolio operations with LPM and
within the Value Streams. Operating the portfolio includes three equally important
sections:
1. Establishing and evolving the Portfolio Kanban
2. Operating LPM events and activities with LPM participants
3. Engaging people in the Value Streams through this journey
Link: https://bit.ly/Community-OperateLPM

Duration
Govern a Lean portfolio 5

min
Suggested asset
Ensure governance and compliance support Govern and
Measure and Grow page
Govern Lean Portfolio Management.
► Establish portfolio and Value Stream

Question: Lean metrics.
Which of
these topics ► Explore advanced LPM topics:
do you need to
tackle first? ‐ Compliance
Who would
engage in ‐ Software Capitalization
discussing https://bit.ly/Community-
this topic?
‐ Agile Contracting GovernMeasureGrow
‐ Technology Business Management (TBM)
Trainer Guidance:
left of the slide.
open during class.
Purpose: In the Govern step, you’ll address LPM topics that need to be transformed
as some point. Note that you can address these topics independently; they don’t have
to happen sequentially. These topics include:
• Software capitalization
• Compliance
• Agile contracts
• Technology Business Management (TBM), if it applies in your context
Link: https://bit.ly/Community-GovernMeasureGrow

Duration
Evolve the portfolio with Measure and Grow 5

min
Suggested asset
Evolve the LPM implementation with regular Measure and Grow
Measure & Workshop Toolkit
Grow
assessment and growth recommendations.
► Run assessments to baseline the current

Question: state
How would you
establish the ► Continuously improve with the growth
current baseline
recommendations
for the portfolio?
On what
cadence should
you run the
assessment?
GovernMeasureGrow
Trainer Guidance:
left of the slide.
open during class.
Purpose: The guidance in the final section, Measure and Grow, describes how to
measure using the LPM assessment, and grow to improve business outcomes.
Reevaluate progress regularly and adapt your LPM implementation accordingly.
Link: https://bit.ly/Community-GovernMeasureGrow

Practice tips for the LPM implementation roadmap
LPM implementation is a journey that typically takes

many months.
► Facilitate the LPM kickoff event with stakeholders, within two

- four weeks from class completion.
► Take an iterative test and learn approach to advance LPM

within your organization, as the journey is not linear.
Practice
► Apply organizational change management methods to build Tips
and sustain support for this journey.
► While getting started with LPM can be done quickly,

reaching self-sustenance can take months and requires
coaching and support to fully embed the Lean-Agile mindset.
Trainer Guidance:
This is one of several Practice Tips slides in this workshop, summarizing some
learnings from applied LPM implementations.
The key messages in this slide:

• Don't wait too long. Schedule the LPM Kickoff event, ideally within a few weeks, in
order to maintain momentum.
• LPM implementation is not linear. Regularly assess and refine the LPM
implementation roadmap for your organization.
• The technical aspects of LPM are not enough. At its heart, this is an organizational
change management journey.

Getting started
with LPM
• Introduction to
implementing LPM

kickoff event
• Next steps
Trainer Guidance:
In this next section we will cover several topics for the early steps of the LPM
implementation up to the point of facilitating the LPM Kickoff event.
These steps include the following topics:

• Establish the case for change.
• Define the portfolio scope.
• Identify the LPM participants.
• Plan the empathy interviews.
• Design the LPM events.
• Plan the Volunteer LPM CoP.

Upcoming topics focus on the Align step of the LPM implementation
Measure &
Trainer Guidance:
From this point forward in the workshop, we will focus on the Align step.

Establish the case for change
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-17
Trainer Guidance:
A compelling case for change is necessary for the level of change involved in LPM.

Establishing the case for change
LPM implementation requires Change Accelerators

change leadership as well as
change management to INSTITUTE CREATE
ensure sustained change.
Change A Sense of Urgency
8 1
SUSTAIN BUILD
Acceleration 7 2 A Guiding Coalition
THE BIG
Opportunity
6 3
GENERATE FORM
Short-Term Wins A Strategic Vision
5 4
ENABLE
Action by ENLIST
Removing Barriers A Volunteer Army
Change accelerators come from the work of John Kotter

Trainer Guidance:
Introduce the eight Accelerators for change from John Kotter. We will re-visit this
again. The LPM implementation requires change leadership and change
management to succeed. In the Align step, we really leverage and lean on the first
four change accelerators.
1. Create a Sense of Urgency: Help others see the need for change through a bold,
aspirational opportunity statement that communicates the importance of acting
immediately.
2. Build a Guiding Coalition: A volunteer army needs a coalition of effective people—
born of its own ranks—to guide it, coordinate it, and communicate its activities.
3. Form a Strategic Vision: Clarify how the future will be different from the past and
how you can make that future a reality through initiatives linked directly to the
vision.
4. Enlist a Volunteer Army: Large-scale change can only occur when massive
numbers of people rally around a common opportunity. They must be bought-in
and urgent to drive change—moving in the same direction.

Gain executive buy-in
The level of change for the LPM implementation requires executive engagement
and support.
► Do we agree that implementing LPM is the right thing to do for this portfolio?
► Are there any concerns with the practices or principles of Lean Portfolio
Management?
► What other stakeholders do we need to influence to ensure a successful LPM

implementation?
Trainer Guidance:
Executive buy-in is key for the level of change required from an LPM implementation.
This slide lists a sampling of questions to help broach the executive conversation.

Establish a sense of urgency
Identify a compelling case for change to build a sense of urgency for the LPM implementation.
Approach A:
Demonstrate evidence of the problem to solve.
Question:
What other ► Analyze sample initiatives and identify the lead times and potential bottle necks.
approach ► Quantify the resulting Cost of Delay (CoD) to the business.
would you
Approach B:
consider for
Identify a disruptive threat that warrants a fundamentally different way of
your
investment decisioning.
organization to
► Explore significant threats to the business from market sensing activities.
establish
a sense of ► Demonstrate the likely outcome if the portfolio status quo is maintained with this threat.
urgency?
QUICK RESPONSE TO
BUSINESS OPPORTUNITY
Sense Fund Organize Connect to Deliver Pivot or Deliver value Learn

opportunity MVP around value customer MVP persevere continuously and adapt
Trainer Guidance:
A compelling case for change is needed to build and sustain momentum for the
change journey. This slide lists two approaches you can consider.
The first approach leverages data to establish the case, by analyzing current
initiatives and the resulting cost of delay. Alternatively, the change agent could
demonstrate impact of investing significantly in the wrong unvalidated initiative.
The second approach is identifying the market disruptor or threat that requires a much
more effective and timely investment strategy.

Prepare Share
Activity: Advocating the LPM implementation 20

min
10
min
Consider the following:
- Your target audience

- Example from your current context to demonstrate
the case for change
► Step 1: Write a three-minute elevator pitch to gain buy-in

for LPM:
- What are we solving?

- What will we lose if we don't proceed?
- What will we gain if we proceed?
- What is the call to action?
► Step 2: Present your message and capture feedback
Trainer Guidance:
This is a working activity designed for the participants to build actionable artifacts for
their LPM journey and Kickoff.
This activity gives the participants a chance to craft and test their pitch for LPM.
Purpose: For participants to write a three-minute 'pitch' to gain buy-in for LPM to
share with team members in their work context


Define the portfolio scope
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-22
Trainer Guidance:
Defining the portfolio at the right level avoids common anti-patterns related to
portfolio.

Agree on the scope of the portfolio
Portfolios should operate independently to deliver a set of Solutions and cooperate for larger
value delivery.
► Target: End-to-end value for a set of related portfolio Solutions
- By a business unit
- By a set of related development value streams
- By an operating division
► Constraints and other considerations:
- If a portfolio has a lot of dependencies with another portfolio, consider combining

portfolios.
- Will the portfolio design cause funding conflicts between business units?
- Start with a single portfolio and determine if multiple portfolios are required.
Trainer Guidance:
Portfolios are typically large and cross-cutting across multiple development value
streams. They typically align to a BU, a set of Value Streams, or an operating
division. This allows for better connection to the Enterprise strategy, and economic
decisioning across the Value Streams. The more common anti-pattern observed is
portfolio defined too narrowly to map to a funding source or a leader's reporting
structure, a singular Value Stream, or even a subset. Applying systems thinking
encourages us to optimize for the whole portfolio. Note a potential sensitivity, as it can
be perceived by some leaders as giving up control. A savvy change agent will build
alignment when tackling this subject.

Prepare Share
Activity: Define the portfolio scope 15

min
15
min
► Step 1: In your group, ideate possible scope of the portfolio.

Evaluate each idea on whether it is appropriate for portfolio
Validate the portfolio definition
definition or is something narrower:
- Major initiative/Epic, Strategic Theme, one of several Value Major
Stream initiative
possible Value Streams in the portfolio, or ART Portfolio
► Step 2: For the selected portfolio scope, discuss:

Portfolio
- Who are the customers you serve?
- What solutions do you provide them?
ART Strategic
► Step 3: Share your insights with the group Theme
Trainer Guidance:
This is a working activity designed for the students to build actionable artifacts for
In this activity, participants ideate in their group a potential definition of the portfolio
and vet the ideas on whether this is better described as a portfolio or something
narrower. Once they select a portfolio definition, participants can discuss the
customers the portfolio serves, and the Solutions the portfolio provides to the
customers. Going through this activity is intended to give the participants the
reasoning and language for their portfolio definition. Share your insights with the
group. Allow time to debrief and discuss questions from the attendees within the
designated share time.
Purpose: For participants to align to a definition of the portfolio at the appropriate

level. As participants define their portfolio, they should test the portfolio definition to
ensure it is not a Value Stream, major initiative or Epic, Strategic Theme, or Agile
Release Train (ART).


Identify LPM participants
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-25
Trainer Guidance:
Understanding the different participants and responsibilities—and how they interact

with LPM—helps prepare the organization and anticipate change needs.

Identify the portfolio participants
Identify the key stakeholders in your portfolio, and their engagement with the LPM activities and events.
Makes Influences
investment investment Supports
decisions decisions portfolio
Implements Fosters Facilitates Executes within

LPM Epic portfolio the Value Stream
Trainer Guidance:
Seven different types of participants are identified in LPM, who interact with LPM
activities and decisions in varying degrees.
In the subsequent slides, only spend about one minute per slide reviewing each LPM
participant.

Makes investment decisions
Senior leaders who have ultimate fiduciary responsibility for the

portfolio, and the authority to make the largest
Makes investment decisions.
investment
decisions
► Establish the Portfolio Vision and Lean Budget Guardrails.
► Connect the Enterprise strategy with the portfolio.
► Approve major investments.
► Decide on Value Stream budget allocation.
► Participate in Portfolio Sync and Strategic Portfolio Review.
Examples: Business Unit Leader, Senior Executive
Trainer Guidance:
‘Makes investment decisions’ includes the ultimate fiduciaries that bridge enterprise
strategy with the Portfolio vision. Think of the people that are authorized to make the
biggest monetary investments.
Only spend about one minute reviewing this slide.

Influences investment decisions
Leaders who influence the Portfolio Vision and contribute

insight to the investment decisions.
Influences
investment ► Contribute relevant context to enable economic
decisions
tradeoff decisions.
► Participate in Portfolio Sync and Strategic Portfolio Review.
► Influence Strategic Themes.
► Vet the Epics.
Examples: Value Stream leaders, Enterprise strategy

function, Enterprise architecture, and financial planning
within the portfolio
Trainer Guidance:
‘Influences investment decisions’ includes various leaders that have influence over
the investment decisions, including Value Stream leaders, functional leaders, and
enterprise architects.

Supports investment decisions
A collection of different functions that support the portfolio, but

do not perform direct LPM responsibilities. Informing them of
the LPM implementation and implications is valuable.
Supports
portfolio
► Provide financial data to support Epic returns and Value
Stream budgets.
► Support people change impact as a result of Value Stream

budget adjustments.
► Identify changes to Software Capitalization processes.
► Update financial reporting that may be impacted.
Examples: Finance, Accounting, Procurement, HR, Legal

Trainer Guidance:
‘Supports portfolio’ also represents different roles of groups impacted by LPM,

including financial analysts, HR, and Legal. A financial analyst for instance may be
asked to help with the ROI for a proposed Epic. They may also wonder how LPM
impacts their financial reporting.

Implements LPM
Change agents who facilitate the LPM implementation, educate

and mentor the LPM participants through the journey.
Implements ► Design and execute the implementation for improved
LPM
business outcomes.
► Apply change approach to ensure sustainable results.
► Enable the facilitators of portfolio operations on the

new process.
Examples: LPM change leader, LACE, Coaches, SPCs
Trainer Guidance:
‘Implements LPM’ are the change agents—including the LACE—who are responsible
for implementing LPM. Note, the responsibility of running the portfolio operations in
the long run may reside elsewhere.

Facilitates portfolio operations
Active facilitators of the portfolio operations including events,

activities, measurement and operational excellence.
► Facilitate LPM events: Portfolio Sync, Strategic Portfolio Review.

Facilitates
portfolio ► Help the organization to prepare for and facilitate
Participatory Budgeting.
► Ensure Portfolio Kanban flow and accuracy.
► Establish and evolve portfolio measurement.
► Foster operational excellence and CoPs.
► Participate in implementing LPM and transition to own portfolio

operations after the LPM implementers move on.
Examples: APMO, VMO, LACE, Portfolio Management
Trainer Guidance:
‘Facilitates portfolio’ is the group that owns running the LPM activities. Unlike the prior
responsibility, this responsibility continues to own LPM operations long after the
implementers move on.

Fosters Epic
Epic owners who collaboratively define the Epic, and shepherd it

through the Portfolio Kanban system.
► Collaboratively define the Epic hypothesis statement and Lean

Fosters
business case.
Epic
► Present the Epic in the LPM events.
► Prepare cost estimates and relevant Epic information for

Participatory Budgeting.
► Work with Product and Solution Management and Architects to

refine the approved Epic for the impacted Value Streams.
Examples: Any role can be an Epic Owner, often observed with

Product and Solution Management, System and Solution Architects.
https://www.scaledagileframework.com/epic-owner/
Trainer Guidance:
‘Fosters initiatives’ correlates to Epic owners. While it's not a role, various roles can
take on the responsibility of advocating for and shepherding an Epic.
Link: https://www.scaledagileframework.com/epic-owner/

Executes in the Value Stream
Members in the Value Stream who execute the portfolio strategy

within the ARTs and Solution Trains.
► Join the voluntary LPM CoP to support and inform the LPM design
Executes within
and implementation.
the Value Stream
► Evolve Epic/Capability/Feature writing.
► Contribute to MVP identification and Epic estimation.
► Define and plan Features and Capabilities to realize the approved

portfolio Epics.
► Balance ART and Solution Train capacity between local items vs

portfolio Epic items.
Examples: RTEs/STEs, Product/Solution Management, Architects,

Scrum Masters, Product Owners
Trainer Guidance:
‘Executes within the Value Stream’ are the members of the ARTs—including Product
Management, RTEs, Scrum Masters, and POs. It is important to engage them in
shaping the journey

Duration
Activity: Identify LPM participants 15

min
► Step 1: Retrieve the LPM participants

template
LPM responsibility Participants Actions
► Step 2: Review each LPM participant Makes investment decisions
and discuss: Influences investment decisions
- Who should be involved?

Facilitates portfolio operations
Supports portfolio operations
- How would we engage these Implements LPM
participants? Fosters Epic
Executes within the value streams
- What are some anticipated risks and Key stakeholders
how would we mitigate these risks?

► Step 3: Identify potential participants https://bit.ly/Community-Align
and actions to include in your
implementation roadmap
Trainer Guidance:
Access the LPM participants template and complete the participants and potential
actions to engage them. If time allows, facilitate a class discussion after the activity.
Purpose: To identify LPM stakeholders in learners’ organizations who align with

these responsibilities; to plan actions to engage them in LPM activities and events

Link: https://bit.ly/Community-Align
Download the Establish the LPM team template.

Prepare for empathy interviews
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-35
Trainer Guidance:
Once participants are identified, the change agent can start preparing them. One of
the techniques is empathy interviews.

Prepare participants with empathy interviews
Empathy interviews identify the problems

to solve and challenges you may face
during LPM implementation.
► Build rapport and trust with

key stakeholders in advance of the
LPM kickoff event.
► Understand key stakeholder needs

and organizational context.
► Leverage insights to identify problems

to be solved and challenges with
https://bit.ly/Video-GuidetoConductingEmpathyInterviews
LPM implementation.
Trainer Guidance:
Performing empathy interviews with key stakeholders of your LPM journey helps
participants understand their context and build trust in advance of the LPM Kickoff.
Play the two-minute video to provide an overview of empathy interviews.
An eight-minute mock interview video is available on the Community platform in the

Align module of the LPM practice guide. Navigate to the Align module of the LPM
practice guide, open Topic 6: Evaluating the Current State, and watch the Mock
Empathy Video.
Links:
• https://bit.ly/Video-GuidetoConductingEmpathyInterviews
• https://bit.ly/PG-GuidetoImplementingLPM

Duration
Activity: Prepare for empathy interviews 15

min
► Step 1: Identify 1-3 empathy

interviews you can conduct Questions:
What are your roles and responsibilities?
- Identify who to interview What are the biggest challenges facing you in your role supporting the organization?
How are you feeling about [insert topic you are conducting empathy interviews on]?
- Refine the interview questions What is the best possible outcome imaginable for our event?
What is the biggest risk in introducing change to your teams?
- Identify the interview

What issues or topics will people avoid discussing that I should be aware of?
Who else should I speak with in preparation for our event?
facilitators: interviewer, note taker, What else should I know about in order to successfully prepare for our event?
observer https://bit.ly/Community-EmpathyInterviewsTemplate

the class
Trainer Guidance:
This is a working activity designed for the students to build actionable artifacts for
Participants determine the interview facilitator roles, the candidates to be interviewed,

and the context relevant questions. A good hint is to start with the sponsor of LPM
and ask them who else you should interview. The number of interviewees can vary,
but typically ranges from five to 20 or so.
Use the Collaborate or remote group document template for the activity. Please note
that in order to access the link on the slide, the participants must be part of an
enterprise subscription or carry an SPC or SAFe RTE certification.
Purpose: Participants prepare for empathy interviews by identifying interviewees and

creating interview questions.

Link: https://bit.ly/Community-EmpathyInterviewsTemplate

Practice tips for empathy interviews
► If unsure where to start, check with the executive

sponsor for recommendations on who to interview.
► To conclude the interview, ask who else should

be interviewed.
► Allow the interviewer to focus on the responses and

probing in the right areas by having a separate Practice
note taker. Tips
► Ensure anonymity and privacy to encourage sharing.
Trainer Guidance:

• Leverage the executive sponsor for early guidance.
• Ask during the interview who else we should talk to.
• Having a note taker allows the interviewer to focus on the responses and ask
probing questions.
• Ensure anonymity.

Design the LPM events
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-39
Trainer Guidance:
Starting the LPM cadence of events is a good place to start the journey, as the events
can be used to advance the implementation over time with the stakeholders.

Design the LPM events cadence
For each LPM event, determine the purpose, agenda, participation, duration, and frequency.
Participatory Participatory
Budgeting Budgeting
Strategic Strategic
Strategic Strategic Strategic
Portfolio Portfolio Portfolio Portfolio
Portfolio
Review Review Review Review
Review
January February March April May June July August September October November December
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Portfolio
Sync Sync Sync Sync Sync Sync Sync Sync Sync Sync
Sync Sync
Trainer Guidance:
Remind the attendees that the detailed explanations of the three LPM events were
presented in class.
Briefly recap the events using the definitions below:

• The Portfolio Sync happens most frequently. You can start with every other week
and tweak the frequency over time. We find that in early implementations, more
frequency is common, and over time it normalizes to monthly.
• The Strategic Portfolio Review is once a PI, and focuses on the Portfolio Vision.
• Participatory Budgeting, if applicable, is typically twice a year.
These events need to occur mid-PI to allow sufficient time to prepare the Value
Streams for any adjustments without disrupting the PI.


Duration
Activity: Design LPM events 20

min
Key agenda Target Stop

► Step 1: In the LPM Events template, design Event Cadence Participants Duration items start date or modify
the LPM events:

Strategic
Quarterly?
Portfolio
Monthly?
- Designate cadence, frequency, duration, Review
participants, and a high-level agenda for

each of the 3 LPM events.
- Determine a realistic target start date for Portfolio

Sync
Monthly?
Every
each type of event.

iteration?
► Step 2: Decide what current meetings will

be replaced or stopped when introducing
the new LPM events. Participatory
Twice per
year?
Budgeting
Quarterly?
Trainer Guidance:
their LPM journey and kickoff. Ask them what cadence they use for these events.
Design each of the three events and set a target start date. Note what current
meetings need to be stopped or replaced.
Purpose: Participants prepare for the LPM event by designing three events, setting
dates, and deciding which current meetings may be replaced with these events.


Practice tips for LPM events design
► Plan and communicate the start date for each

event cadence.
► Start with the Portfolio Sync.
► Explain that the events will evolve and improve over

time, as the process is incrementally implemented,
and stakeholders learn how to apply it. Practice
► Reassess and adjust frequency and attendees
Tips
as needed.
► Stop or modify duplicative or contradictory events

and activities.
Trainer Guidance:

• Declare a start date for each of the cadences as a forcing function to advance the
LPM journey.
• Start with Portfolio Sync to introduce new LPM elements and help the LPM group
shift its decision-making approach.
• These events will only get better with time; set that expectation.
• Refine the event details as you learn.
• Most notably, don't just layer these events on top of other duplicative events. The
goal is to stop or replace current activities and meetings.

Sponsor the LPM Community of Practice
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-43
Trainer Guidance:
The LPM CoP is intended to build support and active engagement from the Value
Stream members towards LPM changes.

Sponsor the LPM Community of Practice
Engage participants from the ARTs and Value Streams through an LPM CoP.
Purpose: Participants:
► Ignite excitement about the ► Encourage participation from each

change journey. Value Stream.
► Amplify LPM learnings and ► Typical roles to target: Product

communications. Manager, System Architect, RTE,
Product Owners, Scrum Masters.
► Gain insight on sentiment about
the change. ► Allow anyone who feels motivated
to learn and be part of the LPM
implementation.
Trainer Guidance:
CoPs are voluntary and can help build engagement in the change journey. In this
instance, we are specifically targeting the members of the Value Streams, who are
ultimately impacted by the portfolio formation and ongoing LPM decisions. The goal is
to actively engage them in the LPM implementation where they can influence the
journey and how it evolves. While voluntary, you want to promote participation from
each of the Value Streams in the portfolio facilitator roles, including Scrum
Masters/RTEs/STEs, POs/Product Managers/Solution Management, and Architects.

Duration
Activity: Sponsoring the LPM CoP 10

min
► Step 1: Determine LPM CoP participation
- Identify 3 people that would own the CoP

creation and nurturing
- Identify how to ensure engagement from

each of the Value Streams in the portfolio
► Step 2: Discuss how the LPM CoP will

collaborate with the LPM team and the
working group focused on implementing LPM
► Step 3: List these notes in your workbook

communities-of-practice/
Trainer Guidance:
Determine who will own the CoP, as it takes effort and nurturing, as well as how to
encourage participation.
Purpose: To form a Community of Practice by identifying and engaging three

potential candidates to assist with the LPM COP

Link: https://www.scaledagileframework.com/communities-of-practice/

Recap of startup steps
The following steps were covered in preparation for the LPM kickoff:
 Establish the case for change

 Define the portfolio scope
 Identify the LPM participants
 Plan the empathy interviews
 Design the LPM events
 Plan the volunteer LPM CoP
Trainer Guidance:
This is a recap slide to set the stage for switching topics to the LPM kickoff event. The
LPM kickoff is something the change agent works towards.

Prepare for LPM kickoff event
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-47
Trainer Guidance:
The LPM kickoff is the next significant event for the change agent to facilitate, and
serves as an alignment builder.

LPM kickoff event generates alignment
The LPM kickoff event engages various Change accelerators

portfolio decision makers, Value Stream
leaders, and key stakeholders at the start of
the journey. INSTITUTE
Change
CREATE
A Sense of Urgency
The event enables several

8 1
change accelerators: SUSTAIN

Acceleration 7 2
BUILD
A Guiding Coalition
THE BIG
► Create a sense of urgency. Opportunity
6 3
GENERATE FORM
► Form a strategic vision. Short-Term Wins A Strategic Vision
5 4
► Enlist a volunteer army. ENABLE

Action by ENLIST
Removing Barriers A Volunteer Army
Change accelerators come from the work of John Kotter

Trainer Guidance:
The LPM kickoff event generates alignment and engagement among the various
stakeholders at the start of the journey. The kickoff also serves as a high visibility
working session to co-create fundamental LPM elements. From an organizational
change management perspective, this event helps create a sense of urgency, form
the change vision, and enlist a volunteer army.

Invite the right participants to create alignment
LPM Responsibility Examples Role in the Event
Makes investment
Fiduciaries, senior leaders of the portfolio Active participant
decisions
Value Stream leaders, strategy specialists,

Influences investment
Enterprise architect(s), functional heads of Active participant
decisions
engineering and development
Select representation from impacted areas,

Supports portfolio Active participant
e.g., CFO or head of Finance, an HR leader
The leader and facilitators of portfolio

Portfolio operations Host and facilitator
operations
Select representation from the LACE involved

LPM implementers Facilitator
in the implementation of LPM
Trainer Guidance:
This event is ideally co-facilitated by the group implementing LPM, and the group that
will own portfolio operations in the long run—typically the APMO. The LPM
implementation executive sponsor needs to be engaged to set the tone and
communicate the why.
A subset of the LPM participants are recommended for this event, to ensure a
working session dynamic. This primarily includes the investment decision makers or
senior leaders, the investment influencers (including Value Stream leaders and
functional owners), the LPM support function representation from Finance, Legal, and
HR.

LPM kickoff inputs, outputs
Inputs are prepared as a proposal to be validated during the event.
Inputs (Drafts) Outputs (Aligned)
► The case for change for LPM

 A decision to support the shift to LPM
 LPM participants and responsibilities

► Portfolio scope definitions
 LPM events design and cadence
► LPM participants and their responsibilities
 Target start date for each of the LPM cadences
► Results of the LPM readiness evaluation
 LPM implementation working group formation
► Results of the empathy interviews
 Tailored LPM implementation plan creation
► Portfolio Kanban flow, policies  Potential short term wins identification
 Communications plan aligned

Trainer Guidance:
Note that the inputs are simply proposed drafts that the participants can work on
during the event. The goal is to leverage the event to co-create and reach alignment.

LPM kickoff agenda FACILITATOR: Modify as appropriate.
8:00 -  Executive sponsor perspective on why LPM and why now

8:30  Change agent overview, what is LPM
8:30 -  Present results of the LPM readiness assessment and empathy interviews
9:00  Activity to craft the case for change
9:00 –  Present portfolio scope/definition

9:30  Discuss impacts and considerations
Break
 Facilitator explains the LPM participants
9:45–  Identify people and responsibilities
10:15  Form the LPM implementation working group
10:15 –  Facilitator explains the LPM events; purpose, outcomes, intent, cadence
10:45
Break  Identify potential short-term wins to target in the first 120 days
11:00 -  Set the start date for each of the LPM events
11.30
 Create the first draft of the implementation plan
11:30 -  Review change management plan

11.45  Align on communications by the attendees following the kickoff
11:45 -  Decision to proceed with LPM implementation

12.00  Review immediate next steps: Class, Value Stream and ART Identification
workshop 1-51
Trainer Guidance:
The LPM kickoff agenda may be tweaked as needed by the facilitator based on
their SAFe context. We recommend a half-day event to validate and co-create early
decisions for the LPM journey.

Practice tips for preparing for the LPM kickoff
► Facilitators are encouraged to tweak the

agenda to account for the stage of the
SAFe implementation. This may include
topics such as establishing the LACE,
if relevant.
► Rehearse the event, this is a high-visibility

opportunity to align senior leaders.
► Consider your audience's readiness for

these materials. For example, invite a
smaller audience first to pre-align.
Practice
Tips
Trainer Guidance:
Consider where you are in your SAFe implementation. This guidance addresses only
the implementation of LPM portion, which could happen early on in the SAFe journey
or later as an advance. This guidance does not preclude other critical SAFe
implementation steps, such as launching the LACE, designing the ARTs, training the
ART roles, etc. For instance, if you are early in the SAFe journey, then include this
LPM kickoff as part of a broader SAFe Kickoff. (For example, they could expand to
one day and include other SAFe implementation elements.)
You only get one chance with the senior leader audience to gain buy-in for the LPM
implementation; rehearse and come prepared.
Gauge your audience readiness and decide on a format. Some organizations opt for a
larger high-visibility event to start, while others split into a smaller session first to pre-
align, followed by the bigger event.

Prepare for the LPM kickoff
Prepare the participants, logistics, and inputs for a successful event.

► Facilitators attend the LPM class.
► Set a date for the LPM kickoff and invite participants.
► Complete the discovery activities and synthesize results.
► Prepare leaders, key influencers, and facilitators for the event.
► Prepare the inputs and presentation for the event.
Trainer Guidance:
Recap key preparation steps.

Duration
Activity: Prepare to kickoff 10

min
In your workbook, answer the following questions:
► What is the date for the LPM kickoff?
► Review participants and inputs. What challenges do

you anticipate?
► What can you do to mitigate these challenges?
Trainer Guidance:
This is a working activity designed for participants to build actionable artifacts for their
LPM journey and kickoff.
The goal of this exercise is to make a few early decisions to aid the preparation for
the event which will start after the workshop. Participants are asked to target a date
for the kickoff, and anticipate challenges.
Purpose: To prepare for the LPM kickoff by targeting a date and anticipating
challenges


Getting started
with LPM
• Introduction to
implementing LPM

kickoff event
• Next steps
Trainer Guidance:
In the last section of this workshop, we will help the students focus on immediate next
steps and work through some common challenging scenarios.

Anticipate common challenges
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-56
Trainer Guidance:
This is an interactive section where students solve for common challenging scenarios
faced when implementing LPM.

Prepare Share
Activity: Identify strategies to address 10 15
common challenges min min
► Step 1: Break out into groups and select a scenario
► Step 2: Read your assigned scenario. Brainstorm 3-5 strategies that you
might use to respond to each challenge
► Step 4: Facilitator debriefs
Hint – these scenarios require applying change leadership strategies.
Trainer Guidance:
This is a learning exercise, where groups split the scenarios and attempt to work
through their scenario solution.
Purpose: To identify strategies to address common challenges


Challenge scenarios summary
1. Hesitation to implement LPM due to complexity 2. Leaders fear loss of control
Stakeholders indicated feeling overwhelmed A fiduciary expresses concerns that the move away
due to the complexity and level of change of from project funding is going to lead to a loss of
the LPM implementation. control over how investments are allocated.
• What can you do to help them work through this • What can you do to help the fiduciary work
and identify a path forward? through this concern?
3. Development value stream members disagree 4. Development value stream capacity is limited
with LPM decisions
Several key members of the Value Stream do not Members of the development value streams
support Epics approved by the LPM process. indicated lack of capacity to work on LPM
• What could be causing this situation, and approved Epics.
what can you do to address it? • What could be causing this situation, and what
can you do to address it?
Trainer Guidance:
This is a snapshot of the challenge scenarios. See each challenge slide for specific
change leadership recommendations to address and mitigate, as well as a list of
assets that can be used to facilitate addressing the specific challenge.

Challenge: Hesitation to implement LPM due to complexity
Scenario 1:
Stakeholders indicated feeling

overwhelmed due to the complexity
and level of change of the LPM
implementation.
► What can you do to help them

work through this and identify a
path forward?
Trainer Guidance:
Any significant change initiative feels overwhelming. Change leadership and change
management techniques can really help with this challenge.
1. Operate from a foundation of empathy, curiosity, and openness: Understand which
steps and components of LPM feel overwhelming and why. Approach these
conversations with empathy, curiosity, and openness to truly understand.
2. Experimentation mindset: Start with small quick wins to build trust. The quick wins
may be the least controversial items that can demonstrate that change is possible.
This paves the way to try more things.
3. Build mutual trust: After you listen to participants’ concerns, engage them in things
that give them visibility and compare the new way of doing things to what they
have today to start build trust.
For the change agent to continue the growth journey in this area, they can explore
taking the Accelerating Change Leadership (ACL) module in our Leading in the
Digital Age (LDA) series.
There are assets on the Community site you can leverage to aid conversations.
These assets are not the solution to the challenge. However, they can be leveraged
after you understand the concerns:
• LPM readiness checklist: This diagnostic helps you identify things you are doing
today in support of LPM
• LPM implementation roadmap: The detailed LPM implementation roadmap
provides step by step guidance, including change leadership and change
management success patterns

Challenge: Leaders fear loss of control
Scenario 2:
A fiduciary expresses concerns that

the move away from project funding is
going to lead to a loss of control
over how investments are allocated.
► What can you do to help the

fiduciary work through this
concern?
Trainer Guidance:
Tackle this scenario from a position of empathy, and apply change leadership.
Building acceptance and trust takes time. Adapt the change in small bites.
1. Operate from a foundation of trust: Engage the executive sponsor to open doors
and advocate for you. Recognize that you may not be in a position of trust, yet.
2. Seek to understand: Understand the sources of fear of loss or control.
3. Experimentation mindset: Start with small quick wins to build trust. This will pave
the way to try more things.
4. Build mutual trust: After you listen to participants’ concerns, engage them in things
that give them visibility and compare what they have today to start build trust.
• Introduction to LPM for executives: Understand how LPM shifts traditional
portfolios to a Lean-Agile approach.
• Lean Budget Guardrails: Guardrails describe portfolio-level budgeting, spending,
and governance policies.
• LPM events: Find a cadence to steer the portfolio and Value Stream funding.
• LPM participants: Gain clarity around participants and responsibilities.

Challenge: Value Stream members disagree with LPM decisions
Scenario 3:
Several key members of the Value

Stream do not support Epics
approved by the LPM process.
► What could be causing this

situation, and what can you do to
address it?
Trainer Guidance:
Change leadership and change management techniques can really help with this
challenge.
1. Operate from a foundation of empathy, curiosity, and openness: Understand why
key members in the Value Stream disagree with LPM decisions. Approach these
conversations with empathy, curiosity and openness to truly understand.
2. Build mutual trust: After you understand the concerns, engage them to co-create a
solution. Consider giving them visibility and compare the new way of doing things
to what they have today to start build trust. Also consider bringing the right people
together to facilitate conversations to address any concerns.
3. Experimentation mindset: Start with small quick wins to build trust. The quick wins
may be the least controversial items that can demonstrate that change is possible.
This paves the way to try more things.

• Portfolio Vision and canvas: Understand portfolio current and future states and the
connection between strategy and execution; communicate the Portfolio Vision
clearly and frequently.
• LPM events: Find a cadence to steer the portfolio and Value Stream funding.
• Lean Budget Guardrails: Guardrails describe portfolio-level budgeting, spending,
and governance policies.
• Portfolio Kanban: Visualize portfolio Epics and portfolio flow. Make sure the
Portfolio Kanban is visible, so people understand what is being prioritized at the
portfolio level.

Challenge: Value Stream capacity is limited
Scenario 4:
Members of the development value

streams indicated lack of capacity to
work on LPM approved Epics.
► What could be causing

this situation, and what can you do
to address it?
Trainer Guidance:
Probe into the root cause to solve the right problem. This scenario could manifest as
a result of any number of possible causes, including but not limited to:
1. A true WIP problem exists.
2. Members of the Value Stream are not bought-in to LPM and therefore
operate autonomously.
3. There is lack of visibility to actual Value Stream capacity.
4. Procurement-related commitments—like binding vendor contracts with fixed scope
and roadmap—consume capacity.
• Visualize capacity: Leverage the Value Stream capacity allocation worksheet to
visualize how and where capacity is allocated.
• Balance and negotiate capacity allocation: Leverage Lean Budget Guardrails to
facilitate and negotiate capacity allocation conversations

Debrief: Change management strategies
Use change leadership strategies to work with these scenarios.

1. Operate from a foundation of trust: Engage the
executive sponsor to open doors and advocate for you.
2. Seek to understand: Understand the source of concern.
3. Experimentation mindset: Start with small quick wins to build trust.
And pave the way to try more things.
4. Build mutual trust: After you have listened, engage them in things
that provide visibility and compare to what they have today.
Trainer Guidance:
Tackle all challenging scenarios from a position of empathy and apply change
leadership. This journey of acceptance and building trust takes time. Adapt the
change in small bites.
1. Operate from a foundation of trust: Engage the executive sponsor to open doors
and advocate for you. Recognize you may not be in a position of trust, yet.
2. Seek to understand: Understand the source of concern.
3. Experimentation mindset: Start with small quick wins to build trust. This paves the
way to try more things.
4. Build mutual trust: After you listened, build mutual trust and engage participants in
things that give them visibility and compare to what they have today

Preparing Finance for LPM implementation
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-64
Trainer Guidance:
This is an overview section with links to additional learning to prepare Finance team
members for the LPM implementation.

Finance is a key impacted role
Prepare Finance for how to support the portfolio within the context of LPM.
► Provide financial data to support Epic decisions.

Supports
portfolio ► Allocate funding for the Value Streams.
► Report spend, profitability and progress towards

financial goals.
► Measure initiative or Epic performance.
► Partner with teams for financial advisory.
► Participate in asset capitalization guidance in SAFe.
Trainer Guidance:
As part of the Enterprise, Finance supports portfolio funding, strategy, and

governance.

The shift to a new Finance operating model
Don't be afraid to engage Finance in the LPM implementation.

Non-lean Lean
Advisory
Advisory
System
75% future focus

implementation
System
Annual
implementation
planning &
Working hours
adoption of new
budgeting
lean processes
Rolling
forecasting,
planning and
setting budgets
Month-end
and annual
reporting
Month-end and
Impact of Working Smarter, Not Harder
annual reporting
Parmenter, David. The Financial Controller and CFO's Toolkit
(Wiley Corporate F&A) (p. xviii). Wiley. Kindle Edition.
Trainer Guidance:
In order to support LPM effectively, Finance needs to be engaged in lean-agile

practices, and adopt the mindset.
Many Finance organizations are moving in a lean-agile direction; maybe yours have,
too. Here's a view of how Finance would apply these Lean-agile practices and
principles within their group, as well as how they interact with the LPM system.
We're seeing Lean Finance spending more time on Advisory and adoption of lean
processes, in effect making them more of a "partner" to the business. In this new
mindset, Finance wants to be more collaborative. Don't be afraid to invite them and
engage them in LPM activities. They can support in an advisory capacity.
The "System Implementation" blue box indicates that they are spending more time on
learning to implement new systems. They see value in education and continuous
improvement, which is the same experience the rest of the LPM participants have
during the LPM implementation journey.
It is important that the development value streams identify Finance as a strategic

partner with regular communication.

Gain the knowledge: Lean Finance and Accounting resources
Prepare yourself for the conversation with Finance.
► Watch the Summit talk on Implementing SAFe for Finance

and Accounting.
► Supplemental reading:
- Book: The Financial Controller and CFO’s Toolkit
https://bit.ly/Book-FinancialControllerandCFOToolkit
- The accompanying templates and tools website
https://bit.ly/Toolkit-FinancialControllerandCFOToolkit
- “Lean Accounting”
https://www.ame.org/sites/default/files/target_articles/06-22-1-
Lean_Accounting.pdf
- “Lean Finance and Accounting”
https://bit.ly/Video-
https://www.ame.org/sites/default/files/target_articles/02-18-4-
ImplementingSAFeforFinance
Lean_Accounting.pdf
- “Lean Budgets”
https://www.scaledagileframework.com/lean-budgets/
Trainer Guidance:
Use these tools to help provide guidance to the Finance department regarding what
they expect as part of this transition. The goals of Finance do not change, but some of
the methods used to manage and report on financial goals have evolved. New ways
of working are required.
Links:
• https://bit.ly/Video-ImplementingSAFeforFinance
• https://bit.ly/Book-FinancialControllerandCFOToolkit
• https://bit.ly/Toolkit-FinancialControllerandCFOToolkit
• https://www.ame.org/sites/default/files/target_articles/06-22-1-
Lean_Accounting.pdf
• https://www.ame.org/sites/default/files/target_articles/02-18-4-
Lean_Accounting.pdf
• https://www.scaledagileframework.com/lean-budgets/

Duration
Discussion - What is your Finance operating 3

model? min
Discuss where your Finance practices are

relative to this chart. Non-lean Lean
Advisory
What traditional or non-Lean practices do

Advisory
► System
75% future focus

implementation
you observe? System

Annual implementation
planning &
Working hours
adoption of new
► What Lean-Agile practices do you observe? budgeting lean processes
Rolling
► Who in your Finance organization can you forecasting,

planning and
setting budgets
validate these observations with? Month-end
and annual
reporting
Month-end and
Hint – consider facilitating an empathy annual reporting
interview with them.
Trainer Guidance:
We want to find out what Finance is doing today, and how might they be more
effective in adopting Lean-Agile ways of working.
Lead a discussion related to Finance practices using these three questions to guide
participants:
1. What traditional or non-Lean practices do you observe?
2. What Lean-Agile practices do you observe?
3. Who in your Finance organization can you validate these observations with?

Plan your next steps
©©
Scaled Agile.
Scaled Inc. Inc.
Agile, 1-69
Trainer Guidance:
This is an interactive section to plan and define next steps for your LPM
implementation.

Duration
Activity: Create next steps to prepare for 10
LPM kickoff min
Discuss the following questions to prepare for the LPM kickoff:
► How will you prepare leaders and key influencers?
► How will you prepare facilitators, speakers, and participants?
► Who will you partner with on preparation of inputs for the event?
► What pre-work is required for participants?
Trainer Guidance:
This is the last working activity in this workshop. The activity aims to help participants
set their immediate next steps leading up to the kickoff event.
Purpose: To support participants in preparing for actions to take for the LPM kickoff
event


Action Plan: Take your next steps
► Step 1: Download the LPM detailed roadmap.

► Step 2: Complete the LPM readiness checklist.

► Step 3: Complete the Align practice guide module.

https://bit.ly/PG-GuidetoImplementingLPM
► Step 4: Launch your LPM CoP.

https://www.scaledagileframework.com/communities-
of-practice/
Trainer Guidance:
Direct attendees to go to the action plans in their workbooks and note the following
steps intended to be completed after the workshop:
1. Download the LPM detailed implementation roadmap: Please note that the link is
to the Adopt LPM page on the Community platform. Participants will then have to
click on the Align card to get to the LPM detailed roadmap. We purposefully have
this link go to the Adopt LPM page to get participants familiar with the Adopt LPM
page and encourage them to explore all the Adopt LPM pages.
2. Complete the LPM readiness checklist: Please note that the link is to the Adopt
LPM page on the Community platform. Participants will then have to click on the
Align card to get to the LPM readiness checklist. We purposefully have this link go
to the Adopt LPM page to get participants familiar with he Adopt LPM page and
encourage them to explore all the Adopt LPM pages.
3. Complete the Align module of the LPM practice guide.
4. Launch your LPM CoP.
Links:
• https://bit.ly/Communtiy-AdoptLPM
• https://bit.ly/Communtiy-AdoptLPM
• https://bit.ly/PG-GuidetoImplementingLPM
• https://www.scaledagileframework.com/communities-of-practice/

Words may inspire but only action
creates change.
-Simon Sinek
©©Scaled
Scaled Agile.
Agile, Inc. 1-72
Trainer Guidance:
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Lean Portfolio

© Scaled Agile, Inc.

Trainer Guide 2 © Scaled Agile, Inc.

Teaching SAFe Courses Remotely

 Video link: http://bit.ly/TeachingSAFeRemotely

Trainer Guide 3 © Scaled Agile, Inc.

 Video link: https://bit.ly/Video-QuickTipsRemoteDelivery

Courseware Kit Overview

This is an overview of what’s included in the Courseware Kit.

Getting Started Folder

Templates Handouts Folder

Trainer Guide 4 © Scaled Agile, Inc.

☁ Roster Upload FAQ: http://bit.ly/rosterUpload

Preparation for Teaching and Facilitating

Trainer Guide 5 © Scaled Agile, Inc.

Remote Delivery Instructor SPC/SPCT Roles

Trainer Guide 6 © Scaled Agile, Inc.

Remote Video Instruction

📖 SAFe Glossary: https://www.scaledagileframework.com/glossary/

Trainer Guide 7 © Scaled Agile, Inc.

Options for how to administer knowledge-check questions:

☁ Access to Knowledge Checks:

Day 1 Approximate Time

01 Introducing Lean Portfolio Management 1h 30min

02 Establishing Portfolio Strategy and Vision 2h

03 Realizing Portfolio Vision Through Epics 2h

04 Establishing Investment Funding 1h 30min

Total Approximate Time 7h

Trainer Guide 8 © Scaled Agile, Inc.

05 Managing Portfolio Flow 1h 30min

06 Applying Agile Portfolio Operations 1h 30min

07 Applying Lean Governance 2h 30min

08 Practicing SAFe 30min

Total Approximate Time 6h

Day 3 Approximate Time

Getting Started with Lean Portfolio Management Workshop 7h

Total Approximate Time 7h

Remote Class Timing

Pre-Course Webinar (optional) Approximate Time

Remote-enabled course introduction 0h 30min 0h 30min

Total Approximate Time 30min

Day 1 Approximate Time

01 Introducing Lean Portfolio Management 1h 30min

02 Establishing Portfolio Strategy and Vision 2h

Total Approximate Time 3h 30min

Trainer Guide 9 © Scaled Agile, Inc.

03 Realizing Portfolio Vision Through Epics 2h

04 Establishing Investment Funding 1h 30min

05 Managing Portfolio Flow 1h 30min

Total Approximate Time 5h

Day 3 Approximate Time

06 Applying Agile Portfolio Operations 1h 30min

07 Applying Lean Governance 2h 30min

08 Practicing SAFe 30min

Total Approximate Time 4h 30min

Day 4 Approximate Time

Getting Started with Lean Portfolio Management Workshop 7

Total Approximate Time 7h

*Sample agenda for introducing a remote enabled course

Trainer Guide 10 © Scaled Agile, Inc.

© Scaled Agile, Inc.

Trainer Guide 11 © Scaled Agile, Inc.

► Course meeting times

Trainer Guide 12 © Scaled Agile, Inc.

Video link: http://bit.ly/TeachingSAFeRemotely

Video link: https://bit.ly/Video-QuickTipsRemoteDelivery