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one output of enterprise strategy formulation

What is one output of enterprise strategy formulation?

Picture of SPOCLEARN
Upskill and Reskill in industry-recognized certification courses to become a Global Professional.

A. Portfolio Budgets

B. Portfolio Canvas

C. Portfolio Governance

D. Portfolio Vision

The Correct Answer is

D. Portfolio Vision


One output of enterprise strategy formulation is the Portfolio Vision.

The Portfolio Vision is a key artifact in strategic planning, particularly within the context of the Scaled Agile Framework (SAFe) and other Agile methodologies. It provides a long-term view of the solution portfolio and communicates the vision and strategic objectives to all stakeholders. The Portfolio Vision helps guide the Lean-Agile enterprise by aligning portfolio priorities with the broader organizational strategy, ensuring that investments and efforts are directed towards initiatives that offer the most value in achieving the enterprise’s long-term goals.

The Portfolio Vision is an integral component of the strategic planning process within the context of SAFe (Scaled Agile Framework) and serves as a vital output of enterprise strategy formulation. It plays a crucial role in guiding the development and execution of initiatives at the portfolio level, aligning them with the broader organizational objectives and strategies. Let’s delve into more details about its importance, content, and impact.

Importance of the Portfolio Vision

  • Strategic Alignment: The Portfolio Vision ensures that all portfolio initiatives are aligned with the enterprise’s strategic goals, making sure that investments are focused on areas that provide the highest value and contribute to the long-term success of the organization.

  • Guidance for Decision-Making: It provides a clear direction for decision-making at the portfolio level, helping to prioritize initiatives, allocate resources, and make trade-offs between competing demands based on strategic objectives.

  • Communication Tool: The vision acts as a communication tool, articulating the future state the organization aims to achieve to all stakeholders, including portfolio managers, program managers, teams, and external partners. This helps in building a shared understanding and commitment towards common goals.

Content of the Portfolio Vision

The Portfolio Vision typically includes:

  • Strategic Themes: High-level business objectives that connect the portfolio to the enterprise strategy. They articulate the focus areas that are critical for the organization’s success.

  • Vision Statement: A concise statement that describes the future state the portfolio aims to achieve. It should be inspirational, memorable, and capable of guiding the portfolio’s strategic direction.

  • Business Objectives: Specific, measurable goals that the portfolio aims to accomplish within a certain timeframe. These objectives translate the vision into actionable targets that can be tracked and measured.

  • Key Initiatives: Major efforts or programs that are necessary to achieve the business objectives. These initiatives represent the work that needs to be undertaken to move the portfolio towards the envisioned future state.

Impact of the Portfolio Vision

  • Coherent Execution: By providing a clear and consistent direction, the Portfolio Vision helps to ensure that all efforts and initiatives within the portfolio are coherently executed in alignment with the strategic goals of the organization.

  • Adaptability: The vision allows the portfolio to remain adaptable in a changing environment. As new opportunities and challenges arise, the Portfolio Vision can be revisited and adjusted to ensure that the portfolio continues to align with the enterprise strategy.

  • Motivation and Engagement: A compelling vision motivates and engages stakeholders by providing a sense of purpose and direction. It helps individuals understand how their work contributes to the broader organizational goals, fostering a culture of commitment and collaboration.

The Portfolio Vision is a dynamic document that may evolve as the enterprise strategy changes or as new market opportunities emerge. Regularly revisiting and refining the Portfolio Vision ensures that the portfolio remains aligned with the enterprise’s strategic objectives and continues to deliver value in a rapidly changing business landscape.

Other Leading SAFe 6.0 Question – What are the three dimensions of Lean-Agile Leadership? (Choose three)

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