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The Portfolio Vision is a description of the future state of a portfolio’s Value Streams and Solutions and describes how they will cooperate to achieve the portfolio’s objectives and the broader aim of the Enterprise. DetailsThe portfolio vision sets a longer-term context for near-term decisions in a way that is both practical and inspirational, clearly articulating why the future state is something worth achieving. Understanding the longer-term view helps Agile Teams, Agile Release Trains, and Solution Trains make more informed choices about the development of functionality in both the short and long run. Lean Portfolio Management (LPM) has the primary responsibility for ensuring the strategic direction of the portfolio maps to the strategic themes and enterprise strategy. This requires a clear understanding and communication of the portfolio vision. In the book Switch [1], authors Dan and Chip Heath liken this future vision to a ‘destination postcard,’ as Figure 1 illustrates. Figure 1. A postcard from the future is a way to describe the portfolio visionThe portfolio vision should have the following characteristics:
Business Owners or senior leaders typically present this longer-term view and business context during the Program Increment (PI) Planning event. These leaders can inspire and align the teams, increasing their engagement and fostering their creativity to achieve the best results. Introducing the SAFe Portfolio CanvasThe SAFe portfolio canvas (Figure 2) is based on the Business Model Canvas (see this topic in the Enterprise article) developed by Alexander Osterwalder [1]. The portfolio canvas defines the Development Value Streams that are included in a SAFe portfolio, the value propositions and the Solutions they deliver, the customers they serve, the budgets allocated to each value stream, and other key activities and events required to achieve the portfolio vision. Figure 2. The portfolio canvasDownload The Portfolio Canvas Each section of the portfolio canvas and its blocks are described next 1. Value Propositions The value propositions describe the customers and the value delivered by the solutions of each value stream, as well as the customer segments and relationships, budget and KPIs /revenue. Use a separate row for each development value stream.
2. Resources and Activities The resources and activities describe the key partners, activities and other resources needed to achieve the value propositions.
3. Cost Structure and Revenue Streams The cost structure and revenue streams describe how the portfolio’s costs are structured and define how revenue or value is achieved.
Capturing the Current State of the PortfolioThe current state canvas represents the as-is state for the portfolio, enabling alignment of the organization on its structure, purpose, and status. One way to capture the current state is to assemble one or more teams to create a shared understanding. The team should include the Agile Release Train (ART) and value stream Business Owners, Lean Portfolio Management (LPM), Epic Owners, Architects. RTEs, Product and Solution Management, Product Owners and other portfolio stakeholders A straightforward approach to capture the current state is to iterate through each of the canvas’ building blocks, summarizing the key aspects. Teams typically use sticky notes with a few keywords to fill out each building block (Figure 3). The real power of the canvas is to represent the entire portfolio on one page and to gain insights. As part of filling out the current state portfolio canvas, it can be useful to reason further about each value proposition. One way to do this is to create separate Value Stream canvases (see this topic in the value stream article), which are then rolled up to the portfolio (Figure 3). The appropriate stakeholders in each value stream should develop their Value Stream Canvas. Figure 3. Creating the portfolio canvas from a set of value stream canvasesEnvisioning the Future StateThe next step is to envision the future state, which helps define the vision for the portfolio. The difference between the current and future state represents the gap, which is translated into the vision to attain the future state. Understanding Opportunities and ThreatsThere are many tools and techniques to help understand the opportunities for the future state. Some of these techniques include the SWOT analysis and TOWS strategic options matrix, which can help develop a plan for the future so that the business can survive and thrive in the long run. The SWOT and TOWS analysis are meant to be used together. The SWOT analysis (Figure 4) is used to identify the strengths, weaknesses, opportunities, and threats related to the current business situation. Figure 4. SWOT analysisThe information from the SWOT analysis is used to fill-in the strengths, weaknesses, opportunities, and threats of the TOWS strategic options matrix (Figure 5) using the four outer boxes (e.g., Internal Strengths, External Opportunities) The key difference between the SWOT and TOW analysis are the outcomes that they create. A SWOT analysis is a great way to uncover the current situation of your value stream, product or portfolio, while TOWS is used primarily for identifying strategic options to create a better future state. Figure 5. TOWS Strategic Options Matrix [3]Evaluating Alternatives to Determine a Future StateThe portfolio’s Strategic Themes and SWOT and TOWS analysis are critical inputs to exploring alternatives for the future state. LPM uses the current state portfolio canvas as a starting point to explore the different ways in which the portfolio could evolve in alignment with the strategic themes. Start by selecting a specific block in the portfolio canvas, identifying a potential change or opportunity, and then explore how it impacts the other parts of the canvas (Figure 6). Figure 6. Exploring different scenarios to evolve a solution portfolioFor example, consider a portfolio for a printing company that has invested heavily in the on-demand printing of books. The value stream may want to capture a different customer segment as the foundation of the future state (such as customized books for schools) or may explore a change in customer relationships (such as moving to a self-service model). Each of these changes may impact other blocks on the canvas. Some of the changes to achieve the future state will require implementing large initiatives, and the team will need to create business and enabler Epics that feed directly into the Portfolio Kanban. Maintaining the Portfolio VisionThe creation of the vision is not a once-and-done exercise. It is updated by using the current and future state Portfolio Canvas. As new information is learned about the evolving set of portfolio solutions, portfolio stakeholders periodically review and update the canvas and the vision. Other triggers include the introduction of new solutions, mergers and acquisitions, the market rhythms of the portfolio defined in the portfolio Roadmap, and other strategic changes that may affect the portfolio’s value streams or solutions. Learn More[1] Osterwalder, Alexander, and Yves Pigneur. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley, 2010. [2] Heath, Chip, and Dan Heath. Switch: How to Change Things When Change Is Hard. Broadway Books, 2010. [3] https://brungerblog.wordpress.com/2016/03/20/tows-matrix-for-marketing-brainstorming/ Last update: 27 September 2021 The information on this page is © 2010-2022 Scaled Agile, Inc. and is protected by US and International copyright laws. Neither images nor text can be copied from this site without the express written permission of the copyright holder. Scaled Agile Framework and SAFe are registered trademarks of Scaled Agile, Inc. Please visit Permissions FAQs and contact us for permissions. © 2022 Scaled Agile, Inc. All rights reserved. What can be used to envision future state of a portfolio?A SWOT analysis is a great way to uncover the current situation of your value stream, product or portfolio, while TOWS is used primarily for identifying strategic options to create a better future state.
What is the future state of the product in Agile?The Vision is a description of the future state of the Solution under development. It reflects customer and stakeholder needs, as well as the Feature and Capabilities proposed to meet those needs.
What makes up the portfolio vision?Portfolio Vision – The portfolio Vision is a description of the future state of a portfolio's Value Streams and solutions and describes how they will cooperate to achieve the portfolio's objectives and the broader aim of the Enterprise.
What is a key responsibility of Agile portfolio operations?Agile portfolio operations facilitate coordination across the portfolio's value streams, maintaining alignment between strategy and execution, and fostering continued operational excellence.
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