A. It will remain in the analyzing step until one or more Agile Release Trains can implement it
B. It will be implemented once the Lean business case is approved by the Epic Owner
C. It will be implemented if it has the highest weighted shortest job first (WSJF) ranking
D. It will be moved to the Portfolio Backlog if it receives a ‘go’ decision from Lean Portfolio Management
The Correct Answer is
D). It will be moved to the Portfolio Backlog if it receives a ‘go’ decision from Lean Portfolio Management
Explanation
The next step for an Epic in the analyzing step of the Portfolio Kanban system, after completing a Lean business case, is that it will be moved to the Portfolio Backlog if it receives a ‘go’ decision from Lean Portfolio Management. This step is crucial in the SAFe (Scaled Agile Framework) process as it ensures that only those Epics that align with the strategic themes and funding priorities of the organization, and have been validated for feasibility and value, are progressed to the point where they can be considered for implementation. The Lean Portfolio Management (LPM) function plays a key role in this decision-making process, evaluating the Lean business case and deciding whether an Epic warrants further investment and resources.
In the Scaled Agile Framework (SAFe), the Portfolio Kanban is a critical tool for managing the flow of Epics—from their initial proposal through to implementation. The step following the completion of a Lean business case for a new Epic—within the analyzing phase—is pivotal, as it determines whether an Epic progresses towards realization. Let’s delve deeper into this process and the significance of moving an Epic to the Portfolio Backlog after receiving a ‘go’ decision from Lean Portfolio Management (LPM).
The Role of Lean Portfolio Management (LPM)
Lean Portfolio Management is central to SAFe’s approach to aligning strategy with execution. LPM has several key responsibilities:
- Strategic Alignment: Ensuring that investments in new Epics align with the organization’s strategic themes and objectives.
- Budgeting and Funding: Allocating budgets to fund Epics that are aligned with strategic objectives, based on a Lean-Agile budgeting model.
- Governance: Making go/no-go decisions on Epics, based on their Lean business cases, to ensure that only those with sufficient value, feasibility, and alignment are pursued.
The Analyzing Step in the Portfolio Kanban
During the analyzing step, the focus is on evaluating the potential value and impact of proposed Epics. This evaluation includes:
- Developing a Lean Business Case: This document outlines Epic’s expected benefits, costs, impacts, and risks. It provides a rational basis for decision-making.
- Assessing Value and Feasibility: LPM reviews the Lean business case to assess whether Epic is feasible, whether it delivers sufficient value to the business, and how it aligns with strategic goals.
Moving to the Portfolio Backlog
Once an Epic receives a ‘go’ decision from LPM, the following occurs:
- Portfolio Backlog Entry: The Epic is moved to the Portfolio Backlog. This backlog represents the queue of approved Epics awaiting implementation. It is the single, prioritized list of Epics that have passed the initial scrutiny and are considered valuable investments for the organization.
- Prioritization for Implementation: Epics in the Portfolio Backlog are then prioritized, often using the Weighted Shortest Job First (WSJF) model, to determine their order of implementation based on the cost of delay and other factors.
- Resource Allocation: The decision to progress an Epic from the Portfolio Backlog into implementation depends on the availability of resources, including the capacity of the relevant Agile Release Trains (ARTs) and Solution Trains.
The Importance of this Step
The transition of an Epic from the analyzing step to the Portfolio Backlog is a critical juncture in SAFe’s Portfolio Management process. It ensures:
- Strategic Alignment: Only Epics that are aligned with the organization’s strategic goals and can deliver significant value are moved forward.
- Efficient Use of Resources: By carefully selecting which Epics proceed to the Portfolio Backlog, the organization ensures that its resources are focused on the most impactful initiatives.
- Transparency and Governance: The process provides a transparent and governed approach to decision-making, ensuring that stakeholders have visibility into which Epics are approved and why.
In summary, the movement of an Epic to the Portfolio Backlog after a ‘go’ decision from Lean Portfolio Management is a key step in SAFe’s approach to aligning strategic objectives with the execution of significant initiatives. It represents a commitment to investing in projects that offer the highest value and strategic alignment, guided by a disciplined and transparent decision-making process.
