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Lean Portfolio Management (LPM)

A management approach that uses Lean and Agile practices to keep portfolio funding and initiatives aligned with organizational strategy.

Key Points

  • Aligns investments, epics, and value streams to strategic themes using Lean-Agile thinking.
  • Uses lightweight governance such as portfolio Kanban, guardrails, and participatory budgeting.
  • Limits work in progress and optimizes flow instead of relying on big-batch, annual planning.
  • Measures outcomes with OKRs/KPIs and shifts funding based on evidence of value.

Example

A portfolio office adopts LPM, visualizes epics on a portfolio Kanban, and runs quarterly participatory budgeting. Leadership moves funds between value streams to prioritize the most strategic initiatives, guided by OKR results and flow metrics.

PMP Example Question

A company wants its portfolio investments to continuously support strategic objectives while maintaining flow of value. What should the PMO implement?

  1. Traditional annual budgeting with fixed project scopes
  2. Detailed critical path scheduling across all programs
  3. Lean Portfolio Management with portfolio Kanban and participatory budgeting
  4. A policy to maximize team utilization to 100 percent

Correct Answer: C — Lean Portfolio Management (LPM)

Explanation: LPM applies Lean-Agile practices to align funding and initiatives with strategy and governs flow through lightweight mechanisms.

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