Scaled Agile Framework (SAFe) Lean Portfolio Management Practice Exam

What is one essential collaboration the Lean Portfolio Management function provides to realize its responsibilities?

1. Participatory budgeting

2. Strategy and investment funding

3. Developing value propositions

4. Conducting market research

The correct answer is: Strategy and investment funding

The Lean Portfolio Management function plays a critical role in aligning portfolio strategy with the organization’s broader goals. Strategy and investment funding is an essential collaboration because it involves ongoing dialogue between key stakeholders to ensure that funding and resources are allocated effectively to initiatives that deliver the highest value. This collaboration helps establish strategic priorities and guides how investments are made, ultimately enabling the organization to achieve its strategic objectives. In the Lean Portfolio Management framework, this collaboration occurs through activities like portfolio sync meetings and the continuous assessment of how well investments align with strategic objectives. By fostering collaboration around strategy and funding, organizations can become more adaptable in their portfolio decisions, responding proactively to changes in the market or shifts in customer needs. Other options, while important in various contexts, do not encapsulate this essential collaboration as effectively as strategy and investment funding. Participatory budgeting is a related concept but focuses more on the budget allocation process rather than the strategic alignment of investments. Developing value propositions is relevant but tends more towards product development and customer focus rather than the holistic view of the portfolio. Conducting market research is vital for understanding customer needs but does not specifically address the collaboration aspect of aligning strategy with funding decisions.