Lean Portfolio Management: Definition & Principles

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  • 0:04 Lean Portfolio Management
  • 0:39 Lean Thinking
  • 1:59 Purpose of LPM
  • 3:47 Lesson Summary
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Lesson Transcript
Instructor: Ashutosh Juneja

Ashutosh has over 18 yrs of exp. in managing business & IT teams. He holds a Bachelors degree in Electronics Engineering and a Masters degree in Information Systems.

In this lesson, we'll define lean portfolio management and explain how it uses lean thinking methodology to efficiently manage project portfolios and quickly deliver projects.

Lean Portfolio Management

Lean portfolio management (LPM) is the process of managing a program and product portfolios by applying the concept of lean thinking. This result-oriented approach delivers high-quality work by prioritizing and managing the work in the lean portfolio. It increases the speed of planning and reporting processes and eliminates the time-consuming governance.

Features of LPM include:

  • Prioritization of the most valuable and critical activities
  • Quick delivery of high-value work without interruptions
  • Task alignment with the company's objectives
  • Timely inspections and validation of work

Lean Thinking

Lean thinking is a methodology that's used to eliminate waste from activities, services, or processes in order to improve the efficiency and deliver more value to systems. For organizations to be successful in today's business world, it's imperative to focus on innovation and to adapt quickly to the changing demands of the business. Lean thinking helps to meet these changing business demands and speed up the decision-making process.

Every organization has a portfolio of projects that requires effective planning and management to maximize return on their investments. LPM uses lean thinking to manage a large project portfolio. It creates a project pipeline. The goal is to select tasks on a fast-flexible-flow basis that delivers maximum value to the organization.

Let's explore how lean thinking helps in managing a project.

  1. It helps businesses focus on delivering the critical tasks first by minimizing work-in-progress and maintaining sustainable speed.
  2. It addresses the risk associated with development activity by creating a feedback mechanism.
  3. It directs businesses to choose a mix of small and large tasks from the pipeline to ensure essential tasks are being worked on all the time.
  4. It helps businesses to prioritize tasks that deliver value to customers more quickly.

Purpose of LPM

The main purpose or benefits that lean portfolio management provide are:

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