Scaled Agile Framework (SAFe) Lean Portfolio Management Practice Exam

Which of the following metrics is most appropriate to measure portfolio performance relative to strategic themes?

1. Objectives and Key Results (OKRs)

2. Return on Investment (ROI)

3. ART Predictability

4. Value Stream KPIs

The correct answer is: Objectives and Key Results (OKRs)

The most appropriate metric to measure portfolio performance relative to strategic themes is Objectives and Key Results (OKRs). OKRs are designed to align teams and portfolios with the broader organizational goals, ensuring that all initiatives and work directly contribute to strategic themes. This alignment is crucial for evaluating how well the portfolio supports the overarching objectives of the organization. OKRs provide a framework for setting specific, measurable goals that can be assessed over time. By linking key results to strategic themes, organizations can track progress toward achieving these themes and ensure that portfolio investments align with desired outcomes. This approach fosters a focus on meaningful results rather than purely on outputs or processes, helping organizations adapt and pivot as needed to stay aligned with their strategic objectives. While Return on Investment (ROI) is a valuable metric for understanding the financial returns of specific investments, it does not inherently assess alignment with strategic themes. ART Predictability focuses on the predictability of Agile Release Trains delivering value, which is more about execution than strategic alignment. Value Stream KPIs evaluate the efficiency and effectiveness of specific value streams but may not explicitly measure how those streams contribute to strategic themes. Hence, OKRs serve as the most direct method for evaluating portfolio performance in relation to strategic goals.