Scaled Agile Framework (SAFe) Lean Portfolio Management Practice Exam

Who is primarily responsible for allocating funds within Lean Budgets?

1. Portfolio Management team

2. Lean budgets are self-managed by teams

3. Executive leadership team

4. Scrum Master

The correct answer is: Lean budgets are self-managed by teams

In the context of Lean Portfolio Management within the Scaled Agile Framework (SAFe), self-managed teams play a crucial role in the allocation of funds within Lean Budgets. This approach empowers teams to make financial decisions that align closely with their operational needs and goals, fostering agility and responsiveness to change. Self-managed teams are encouraged to take ownership of their budgets, which allows them to prioritize their initiatives and allocate resources effectively. This decentralization of budget management supports the principle of aligning spending with value delivery, ensuring that resources are directed toward the most impactful work. By placing the responsibility for funding directly in the hands of the teams executing the work, organizations can enhance their ability to adapt to changing priorities and market conditions. In contrast, portfolio management teams and executive leadership play significant roles in the oversight and establishment of Lean Budgets, but they do not actively manage the day-to-day financial allocations. Instead, their responsibilities focus on setting guidelines and high-level priorities. The Scrum Master has a specific role in facilitating the Scrum process and does not engage in budget allocation. Overall, this structure enhances local decision-making, promotes accountability, and helps in maximizing the delivery of value.