Product Life-Cycle & Portfolio

Lean Portfolio Management in Large Enterprises

Align strategy to execution by funding value streams instead of projects and using flow to govern work. Use guardrails, WSJF, and portfolio Kanban to shorten decision cycles without losing control.

In Lean Portfolio Management, WSJF prioritisation calculates ______.

ROI × job size

NPV ÷ risk

Cost of Delay ÷ job size

Payback period ÷ cost

WSJF ranks work by dividing cost of delay by job size to maximise economic throughput. It surfaces the highest value, fastest items first.

A core shift in LPM funding is to finance ______ rather than individual projects.

departments

value streams

accounts payable

vendor SOWs

Funding value streams enables continuous, capacity‑based delivery aligned to strategy. It reduces stop‑start waste from project cost accounting.

Participatory Budgeting in LPM is used primarily to ______.

negotiate vendor discounts

calculate earned value baselines

approve travel expenses

allocate capacity across strategic themes collaboratively

Participatory Budgeting engages stakeholders to steer investment toward strategy using guardrails. It replaces annual, top‑down line‑item fights.

Which set composes the typical Cost of Delay components in WSJF?

Capex, opex, depreciation

Velocity, story points, WIP

NPV, IRR, payback

User–business value, time criticality, risk reduction/opportunity enablement

Cost of Delay blends value, urgency, and risk‑reduction benefits. Summing these captures the economic impact of delay.

Portfolio Kanban limits WIP mainly to ______.

increase flow and reduce thrashing between epics

satisfy audit trail length

maximise utilisation at all times

optimise for the largest epics first

WIP limits shorten cycle times and stabilise throughput. Flow improves when fewer epics compete for attention.

LPM guardrails are intended to ______.

freeze budgets for a fiscal year

set boundaries for decentralised decisions without central approvals

enforce detailed timesheets at task level

replace all governance with team discretion

Guardrails articulate do’s and don’ts so teams can decide locally. They provide alignment and fiscal control while preserving speed.

Which metric best reflects portfolio flow health in LPM?

Story points planned

Flow efficiency and ageing WIP

Number of environments

Total hours logged

Flow efficiency and ageing WIP indicate delays and bottlenecks. They are leading indicators compared to cumulative activity metrics.

An Epic entering implementation should have ______.

a lean business case and a defined MVP hypothesis

vendor SLAs signed for all features

a fixed multi‑year scope

detailed task breakdown for all teams

Lean business cases and MVPs preserve optionality and learning. Fixed scope early reduces adaptability and value discovery.

Rolling‑wave portfolio planning in LPM primarily helps to ______.

reallocate capacity as evidence emerges

finalise procurement two years in advance

lock multi‑year staffing levels

optimise tax credits

Shorter planning horizons allow responsive rebalance as signals change. That agility is the point of lean flow governance.

Weighted Shortest Job First improves outcomes because it ______.

maximises story points completed

eliminates all dependencies

maximises economic value delivered per unit time

minimises headcount

Ordering by value‑per‑duration improves portfolio throughput. It’s an economic scheduling rule, not a capacity measure.

Starter

You grasp the principles—review WSJF and guardrails to speed decisions safely.

Solid

Strong grasp of flow and funding—tighten WIP limits and metrics for even better outcomes.

Expert!

Excellent—your portfolio economics and governance are dialed in.

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