Understanding Lean Portfolio Management (LPM)
Organisations often grapple with misaligned initiatives, inefficient allocation of resources, and the rigidity of long-term plans in dynamic markets. Lean Portfolio Management (LPM) directly addresses these pain points; by integrating strategic direction with real-time execution, LPM offers a solution to disjointed efforts and suboptimal funding practices. This ensures that initiatives align with business goals, budgets adapt to shifting priorities and that there’s consistent transparency in portfolio progression, paving the way for nimble, coherent, and value-driven operations.
LPM is rooted in Lean principles, aligning an organisation’s strategy, funding, and execution. Key to LPM are Strategic Themes, which guide business objectives, and Value Streams that depict the flow of value to customers. LPM also introduces Lean-Agile Budgeting, shifting from traditional project funding to value streams, with tools like the Portfolio Kanban System for transparency and alignment. The approach prioritises participatory budgeting, continuous exploration, metrics for alignment, and dependency management, ensuring streamlined value delivery.
At Catalyst, we believe that successful Lean Portfolio Management (LPM) goes beyond merely adopting a new methodology; it’s about transforming an organisation’s ethos and way of working. Our approach begins with a deep dive into understanding your organisation’s unique culture, structure, and strategic goals. This ensures that our LPM recommendations are bespoke to your context, not just a one-size-fits-all solution.
Guided by the principles of Lean thinking and agility, we then collaborate closely with key stakeholders across your organisation. We facilitate workshops and sessions to foster alignment, prioritise initiatives, and build a shared understanding of LPM’s tools and techniques. Through our hands-on engagement and iterative feedback loops, we aim to embed the LPM framework in a manner that resonates with your team, ultimately driving effective value delivery and strategy alignment.