Scaled Agile Framework (SAFe) Lean Portfolio Management Practice Exam

What is achieved by establishing Lean budget guardrails?

1. To describe budgetary, governance, and spending practices of the portfolio

2. To analyze the inputs, outputs, and benefits of a participatory budgeting forum

3. To identify items that will centralize portfolio strategy decision-making

4. To apply estimates for the implementation of portfolio epics and capacity allocation

The correct answer is: To describe budgetary, governance, and spending practices of the portfolio

Establishing Lean budget guardrails is essential for ensuring that budgetary, governance, and spending practices are aligned with the strategic objectives of the portfolio. By implementing these guardrails, organizations can provide a framework that supports flexible spending while maintaining control over financial resources. This balance allows for empowering teams to make decisions about investments and expenditures that resonate with the overall goals of the organization. The guardrails serve as guidelines that help portfolio stakeholders understand how budgets can be allocated and what governance measures will be in place to ensure that spending aligns with the desired outcomes. This enables organizations to respond quickly to changes, maximize value delivery, and minimize waste, all of which are core principles of Lean thinking and Agile methodologies. While other choices touch on aspects related to budgeting and decision-making, they do not capture the comprehensive purpose and benefits of Lean budget guardrails as effectively as the option that describes the overarching framework for governance and spending practices.