Lean Portfolio Management - an Introduction

In what appears to be an increasingly VUCA world, companies face the challenge of adapting strategic investments flexibly to the changing environment and executing them more quickly. This is where lean portfolio management comes in. It combines a focus on execution with a long-term strategy to help companies deliver results quickly. At the same time, they learn to respond successfully to changes and demands and to adjust their strategic direction. At Pragmatic Solutions, we work closely with you as a "facilitating problem solver" to guide your organization on this journey.

What is Lean Portfolio Management?

Lean Portfolio Management (LPM) is an approach to managing a portfolio of change undertakings, such as initiatives, projects, etc. The main objective is to optimize the creation of value and benefits for customers and the organisation. A key aspect is 'flow': the continuous delivery of results. In other words: LPM aims to reduce project waiting time and thus deliver results faster. LPM flexibly adapts available resources to changing priorities and customer needs, promotes swift decision making, and enables continuous alignment of investments with strategic goals. Put simply, it is better to have fewer projects in parallel, but the right projects with value that can be delivered quickly.

The benefits of Lean Portfolio Management

Lean Portfolio Management creates transparency about your current and planned work in the system, potential duplication and dependencies. It allows you to continuously evaluate and update your projects and compare them with your capacity. Your decisions are transparent to everyone. Through focus, prioritization and collaboration, Lean Portfolio Management reduces waiting times, so you can deliver results faster on the issues that matter. With Lean Portfolio Management, you are able to respond quickly to changing conditions without losing sight of your long-term goals.

How does Lean Portfolio Management work?

LPM is not software that you install and then it works. LPM is a learning journey where you learn quickly and make a lot of progress right from the start. We work with our customers to design LPM in a way that fits their environment. However, there are some basic principles that we rely on:

1. Transparency: Everyone involved has a clear view of what work is prioritised, what needs to be done when, and what resources are being used where.
2. Prioritization: Projects are prioritized according to their value to customers or the business.
3. Focus and flow: The focus is on a few, but the right, issues over a period of time. We keep projects small enough to deliver results quickly and regularly.
4. Continuous feedback: Regular feedback loops ensure that adjustments can be made quickly.
5. Synchronisation: Stakeholders consult with each other and work in sync, avoiding delays and conflicts.

Denkplan: More than just a tool

At Pragmatic Solutions we rely on the denkplan.com framework, which we have co-developed. LPM is the central component of Denkplan, the framework supports the entire process from strategy development to operational implementation. Denkplan ensures that your strategy remains visible, flexible and consistent. With collaborative tools such as Impact Maps, Portfolio Boards and Kanban Boards, we encourage collaboration and ensure that you are always able to respond to new challenges with speed and focus, and that everyone is aligned to common goals.

The bottom line

Lean Portfolio Management is not just a set of tools. It is a way of thinking and a form of cross-functional collaboration that helps you to optimize your implementation work and keep an eye on market changes and long-term business goals. Through our collaborative partnership and use of denkplan.com, Pragmatic Solutions will help you to effectively execute your strategies and maintain the flexibility required to succeed in today's marketplace.