Lean Portfolio Management (LPM)
A management approach that uses Lean and Agile practices to keep portfolio funding and initiatives aligned with organizational strategy.
Key Points
- Aligns investments, epics, and value streams to strategic themes using Lean-Agile thinking.
- Uses lightweight governance such as portfolio Kanban, guardrails, and participatory budgeting.
- Limits work in progress and optimizes flow instead of relying on big-batch, annual planning.
- Measures outcomes with OKRs/KPIs and shifts funding based on evidence of value.
Example
A portfolio office adopts LPM, visualizes epics on a portfolio Kanban, and runs quarterly participatory budgeting. Leadership moves funds between value streams to prioritize the most strategic initiatives, guided by OKR results and flow metrics.
PMP Example Question
A company wants its portfolio investments to continuously support strategic objectives while maintaining flow of value. What should the PMO implement?
- Traditional annual budgeting with fixed project scopes
- Detailed critical path scheduling across all programs
- Lean Portfolio Management with portfolio Kanban and participatory budgeting
- A policy to maximize team utilization to 100 percent
Correct Answer: C — Lean Portfolio Management (LPM)
Explanation: LPM applies Lean-Agile practices to align funding and initiatives with strategy and governs flow through lightweight mechanisms.