• What Does Lean Thinking Mean to LPM?

    Lean Thinking is the core philosophy behind Lean Portfolio Management.

    Focuses on:

    • Maximizing value for the customer
    • Minimizing waste
    • Improving flow and continuous improvement and learning

    In Lean, the goal isn’t just to do things faster – it’s to continuously deliver the right value with the least friction.

    LPM Applies Lean Thinking to Portfolio-Level Decisions

    LPM takes those same principles and applies them to strategy, funding, and governance work across the enterprise.

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  • An Expanded Answer on Efficiency and Speed in a Technology Setting — Continued

    3) Handoffs (Transportation)

    Minimize / get rid of handoffs – keep key people and resources (materials) within reach — without handoffs to other teams. Be resourceful!

    4) Too many steps (extra processing / re-learning)

    Simplify your steps… like re-learning. re-learning is a waste.

    5) Too much stuff lying around (In-process inventory/Partially done work)

    Start finishing! Stop starting! There is no value in anything until it is “done”.

    6) People doing work wrong (defects)

    Double check as you go – build in quality.

    7) Not using people’s ideas (not utilizing talent)

    Let others help.

    8) Task Switching (Motion)

    Maximize your “Time In-The-Zone” – this is also called “Flow”… when you lose track of time whilst engaged in something. Task Switching interrupts flow. Did you know that it takes on average 15 minutes to get back into flow? 15 minutes getting back is a waste.

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  • An Expanded Answer on Efficiency and Speed in a Technology Setting

    An expanded answer on Efficiency and Speed in a technology setting

    We have to look at the process (the steps to creating value – A/K/A “Value Stream” in SAFe ) … and then identify where the inefficiencies slowdowns are at within that process.

    There are eight main kinds of wastes that, if/when fixed, leads to efficiency and speed you need.

    1) Too much stuff (Over production / Extra Features)

    In technology, these are extra features created unnecessarily.

    2) Waiting (Delays)

    Customers waiting for their “Valuable” stuff to get attended to and done. Remove wasteful steps. This will reduce lead time or wait time.

    How long is the wait? Use Little’s Law to calculate Wait Time.

    Wait Time = Work In process divided by Delivery Rate

    To be continued…

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  • A Simple Answer on Efficiency

    A simple answer on Efficiency

    We have to look at the process (the steps to creating value – A/K/A “Value Stream” in SAFe ) … and then identify where the wastage is at within that process.

    There are eight main kinds of wastes:

    1) Too much stuff (over production)

    2) Waiting

    3) Moving around too much (motion)

    4) Too many steps (extra processing)

    5) Too much stuff lying around (inventory)

    6) People doing work wrong (defects)

    7) Not using people’s ideas (unused talent)

    8) Transportation – unnecessary movement of materials, products, or information

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  • Lean Thinking

    Think in terms of efficiency – elimination of waste – and speed.

    Let me illustrate this concept of zero waste and speed using an amazingly simple and common business called “Refreshing Lemonade “– a lemonade stand ran by kids.

    This example is so simple and easy to grasp that the first episode of “The Apprentice “featured a “Lemonade Stand” challenge… it is about marketing and salesmanship challenge

    .Let’s use the same “Lemonade Stand” challenge; however, it is about making lemonades in the most efficient way and fast.

    The challenge: How would you make lemonade in a very efficient way and fast?

    Write your thoughts on a piece of paper.

    See you on next blog for… “A simple answer on Efficiency.”

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  • Lean Thinking — Question

    Question:

    Have you been in a situation wherein you waited for a long time to receive something of value to you?

    Like for example, long queue at Starbucks, McDonald’s, etc.?

    How about congested roads?

    Even when you arrive at the airport from international travel, the queue, sometimes, at the immigration gate, the queue line there is like that of Disneyland’s “S-like” long queue line.

    Long queues make customers bored and cranky.

    The customer is the most important part of the production line! They must not endure unnecessary wait for their Value!

    How to remedy long queue and other flow-related problems?

    Enter, Lean Thinking!

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  • Key Insight

    Systems Thinking in LPM means seeing the portfolio as a living system – every funding, strategy. or governance decision should improve the overall flow of value not just one part of it.

    Systems Thinking gives LPM the ability to manage portfolios as ecosystem of value – aligning strategy, funding, and delivery as one adaptive system.

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  • Tools and Techniques That Apply Systems Thinking in LPM

    Tool/Practice

    Tool/Practice: Portfolio Kanban. Purpose: Visualize flow of epics across the system.

    Tool/Practice: Value Stream Mapping. Purpose: Reveals delays, bottlenecks, and handoffs.

    Tool/Practice: Participatory Budgeting. Purpose: Balances decisions across the system.

    Tool/Practice: Flow metrics. Purpose: Measures system health, not team output.

    Tool/Practice: Inspect and Adapt Workshop. Purpose: Learn from system feedback and evolve governance.

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  • Systems Thinking in LPM

    Systems Thinking underpins all three LPM dimensions:

    1) Strategy and Investment Funding – Balances demand, capacity, and strategic themes as one system.

    2) Agile Portfolio Operations – Coordinates across Value Streams for smooth flow.

    3) Lean Governance – Ensures compliance and measurement reinforce – not restrict – flow.

    It is also one of SAFe’s 10 Core Principles:

    “Apply systems thinking” – focus on optimizing the system, not the parts.

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  • How Systems Thinking Changes Portfolio Behavior

    Using Contrast

    Without Systems Thinking: Focus on individual projects.

    With Systems Thinking: Focus on Value Streams

    Without Systems Thinking: Funding based on requests.

    With Systems Thinking: Funding based on end-to-end flow.

    Without Systems Thinking: Governance by control.

    With Systems Thinking: Governance by feedback and transparency.

    Without Systems Thinking: Siloed metrics

    With Systems Thinking: Shared portfolio KPIs

    Without Systems Thinking: Blame people

    With Systems Thinking: Improve the system

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