Scaled Agile Framework (SAFe) Lean Portfolio Management Practice Exam

What is an expected result of applying Lean principles to Portfolio Management?

1. Faster delivery of products to market

2. Increased budget allocations for each team

3. More rigid governance structures

4. Higher reliance on fixed schedules

The correct answer is: Faster delivery of products to market

Applying Lean principles to Portfolio Management is aimed at optimizing processes and reducing waste, which directly supports a faster delivery of products to market. Lean philosophy encourages a focus on value delivery by streamlining workflows and eliminating non-value-adding activities. Consequently, this leads to quicker decision-making, increased responsiveness to customer needs, and an overall improved cadence in product development. Faster delivery is achieved through practices like continuous improvement, prioritization of work based on customer value, and managing flow. By focusing on delivering increments of value more frequently, organizations can better align their offerings with market demand and gain a competitive edge. The other choices, although they touch upon aspects of portfolio management, do not align with the core objectives of Lean principles. Increased budget allocations contradict Lean's focus on optimizing resources and cutting waste. A more rigid governance structure could hinder flexibility and responsiveness. A higher reliance on fixed schedules may introduce constraints that are contrary to the Lean emphasis on adaptability and continuous flow of value.