Scaled Agile Framework (SAFe) Lean Portfolio Management Practice Exam

Participatory budgeting is primarily used to adjust which type of budget?

1. Value Stream

2. Portfolio

3. Agile Release Train

4. Agile team

The correct answer is: Value Stream

Participatory budgeting is primarily used to adjust the portfolio budget. In the context of Lean Portfolio Management within the Scaled Agile Framework, participatory budgeting enables stakeholders to collaboratively allocate resources to different initiatives based on value and strategic alignment. This approach fosters transparency, encourages team involvement, and allows for a greater alignment between the portfolio’s objectives and the organization’s strategy. When involving teams and stakeholders in the budgeting process, the focus is on ensuring that the funds are directed towards the initiatives that will yield the highest value for the organization. By utilizing participatory budgeting, organizations can adapt their investment decisions more effectively, responding to changing needs and market conditions. While value streams play a role in identifying areas where funds could be allocated, the participatory budgeting process is more explicitly tied to the overall portfolio budget, as it encompasses the broader strategic initiatives and investments. Agile Release Trains and Agile team budgets operate at a more granular level and are not the primary focus of the participatory budgeting process in this framework.