Scaled Agile Framework (SAFe) Lean Portfolio Management Practice Exam

When is it appropriate to have a centralized Lean-Agile Center of Excellence (LACE)?

1. When a small- or medium-sized company has a single Portfolio

2. When funding comes from the individual unit's budget

3. When cross-business unit collaboration is required

4. When independent business units have their own Portfolio

The correct answer is: When a small- or medium-sized company has a single Portfolio

A centralized Lean-Agile Center of Excellence (LACE) is most appropriate for a small- or medium-sized company with a single portfolio because it allows for streamlined governance and alignment across the entire organization. In such a setting, a centralized LACE can effectively support the adoption of Lean-Agile practices, ensuring that all teams are following consistent methodologies and frameworks. This centralized approach facilitates training, coaching, and the sharing of best practices, which are crucial when there are fewer complexities involved across business units. By having a single point of oversight and guidance, the organization can respond more effectively to changes, maintain a coherent vision, and ensure that Lean-Agile principles are uniformly embraced. This structure tends to promote efficient communication and feedback loops, which are vital during the initial stages of Lean-Agile transformation. In contrast, other conditions presented in the choices indicate scenarios where a centralized approach may face limitations. For instance, when funding comes from individual unit budgets or when independent business units have their portfolios, the organizational focus tends to shift towards optimizing and managing individual units rather than fostering collaboration and a unified Lean-Agile culture. Similarly, when cross-business unit collaboration is necessary, a decentralized approach may be more beneficial, allowing individual units more autonomy while still