Establishing Lean Budgets
Portfolio SAFe establishes Lean Budgets as the mechanism to provide financial governance over the organization’s portfolio, solution, and team investments. In this manner, the organization as a whole remains always focused on maximizing value.
Instead of funding departments or projects, SAFe funds value streams. In other words, the organizations make funds available to the streams of activities that collectively add value to each of the portfolio investments. Moreover, the Lean-Agile discipline of program increments allows product and solutions managers, in collaboration with the ART and solution train members, to reassess priorities, and therefore the allocation of funds and other resources to each value stream, on a frequent and iterative basis.
The mechanics of lean budgeting starts with the Portfolios’ Epic Owners, who assess value and cost estimates at a strategic level, assign budgets to portfolio items, and provide governance downstream...