Scaled Agile Framework (SAFe) Lean Portfolio Management Practice Exam

What is essential for effective portfolio governance under Lean principles?

1. Decentralized decision-making

2. Rigid planning cycles

3. Regular feedback mechanisms

4. Strict budgeting controls

The correct answer is: Regular feedback mechanisms

Effective portfolio governance under Lean principles emphasizes the importance of regular feedback mechanisms. These mechanisms are critical because they allow organizations to continuously assess and adapt their strategies based on the latest information and performance data. In a Lean context, the ability to respond swiftly to change, validate assumptions through feedback, and iterate on decision-making fosters a culture of continuous improvement. This approach aligns with Lean values that prioritize delivering maximum value to customers while minimizing waste. Regular feedback mechanisms enable teams to gather insights not only from executed work but also from stakeholders and market conditions. This information can then be utilized to make informed decisions about prioritization, resource allocation, and alignment with strategic objectives, ensuring that the portfolio remains responsive and relevant. The other options, while they may be part of a broader governance strategy, do not align as closely with the core Lean principles. For example, decentralized decision-making can support agile responsiveness but may lack the structured approach that feedback offers. Rigid planning cycles can hinder flexibility and responsiveness to change, which Lean seeks to address. Strict budgeting controls may limit financial adaptability and the ability to pivot as required in a dynamic environment. Therefore, regular feedback mechanisms stand out as essential for effective portfolio governance in a Lean framework.