Scaled Agile Framework (SAFe) Program Consultant Practice Test

What is an example of a traditional mindset regarding Lean Portfolio Management?

1. Dynamic resource allocation

2. Centralized annual planning

3. Continuous feedback loops

4. Agile investment strategies

The correct answer is: Centralized annual planning

A traditional mindset regarding Lean Portfolio Management is best exemplified by centralized annual planning. In this approach, organizations typically engage in a top-down, inflexible planning model where budgets, resources, and project priorities are set once a year, often leading to a rigid response to changes in the market or among customer needs. This can undermine the adaptive and responsive qualities that Lean Portfolio Management aims to achieve. Unlike centralized annual planning, Lean Portfolio Management advocates for more agility and flexibility in the planning process. It encourages organizations to be responsive to changes in real time, allowing for adjustments based on ongoing feedback rather than waiting for a yearly cycle. Dynamic resource allocation, continuous feedback loops, and agile investment strategies are all elements that promote change, adaptability, and responsiveness—qualities at the core of Lean and Agile principles. By recognizing centralized annual planning as a traditional mindset, it highlights the contrast between older management practices and modern, agile approaches within Lean Portfolio Management.