PM provides an alignment and governance model for a specific portfolio, which contains a set of Development Value Streams (DVS) for a business domain in an Enterprise. Each DVS builds, supports, and maintains Solutions for Operational Value Streams (OVS). These solutions are delivered by the OVS to the enterprise’s external or internal Customers. Examples include developing an e-commerce website, medical device, or satellite and developing and deploying a software application within an enterprise for internal customers. LPM is one of the seven core competencies essential to achieving Business Agility. Each core competency is supported by a self-assessment, enabling the enterprise to assess its proficiency. The Measure and Grow article provides a competency assessment and recommends improvement opportunities for implementing LPM.

Why Lean Portfolio Management?

Traditional approaches to portfolio management were not designed to compete in the ‘age of software and digital.’ Enterprises face a higher degree of uncertainty and must deliver innovative solutions faster. Many legacy portfolio practices remain despite massive market changes and how businesses operate in the digital era.