Implementing SAFe: Portfolio Kanban

Managing the Portfolio Backlog with Kanban involves visualizing and controlling the flow of business epics and enablers within the SAFe framework.

In SAFe, the Portfolio Kanban system is a powerful tool for managing the portfolio backlog, which consists of significant initiatives known as portfolio epics. These epics represent strategic objectives and are taken from the initial idea stage through various process states until either approved for implementation or rejected.

Before an epic is committed to implementation, it undergoes a crucial phase of analysis and approval. This process is orchestrated by Epic Owners, individuals responsible for essential collaborations required for business epics. Additionally, Enterprise Architects play a role in guiding enabler epics, which support the technical considerations of business epics.

One of the challenges organizations face is a lack of rigor in managing their portfolio backlog, leading to less critical efforts continuing. At the same time, potentially more valuable initiatives are delayed or starved of resources. Choosing the best ideas is insufficient to advance the portfolio; it demands a purposeful journey.

Lean Portfolio Management (LPM) plays a pivotal role in this process. LPM and stakeholders identify specific epics aligned with the portfolio’s vision. The Portfolio Kanban system facilitates the alignment of strategy and execution by identifying, communicating, and governing the selection of the most strategic initiatives (epics) for the SAFe portfolio.

While opportunistic epics are considered, LPM has a fiduciary responsibility to ensure the flow of epics that best align with the portfolio’s strategic themes, vision, and economic framework. Achieving a better future state involves “Development Value Streams” adopting a ‘one-portfolio’ mindset, collaborating to achieve higher-level objectives and broader enterprise goals.

The figure below illustrates the epic’s journey through the Portfolio Kanban system, from the Funnel stage to completion. The Reviewing, Analyzing, and Ready states have explicit Work in Process (WIP) limits. In contrast, the MVP sub-state has an implicit WIP limit based on available capacity and value stream budgets.

The design of the Kanban system should evolve to meet the specific needs of a portfolio, incorporating continuous improvements. These enhancements may involve adjusting WIP limits, reconfiguring Kanban states, or introducing classes of service to optimize the flow and priority of epics, ensuring the portfolio backlog is effectively managed.

Portfolio Kanban States

The subsequent section describes the default states within the portfolio Kanban. It’s crucial to emphasize that these states serve as an illustrative process. The Kanban’s configuration may adapt over time, incorporating enhancements drawn from practical portfolio insights. Such enhancements might encompass modifications to Work in Process (WIP) limits, partitioning or consolidating Kanban states or integrating service categories to enhance the management of epic flow and prioritization.

Funnel

The “Funnel” Kanban state is an intake stage for significant business and technology ideas within a specific portfolio. These ideas can originate from various sources, including strategic considerations, Agile Teams or Agile Release Trains (ARTs), or suggestions from customers and partners. The primary purpose of this state is to capture ideas that are expected to be substantial, potentially exceeding the epic threshold guardrail or significantly impacting the portfolio’s strategic or business model.

Epics entering the Funnel are initially described in the form of an Epic Hypothesis Statement. Unlike other Kanban states, the Funnel does not have Work in Process (WIP) limits because it functions as a repository for these initial ideas, which may or may not progress further in the portfolio management process. These ideas are essentially candidates for consideration.

If, upon an initial review, it is determined that an idea is unlikely to exceed the epic threshold guardrail or isn’t a significant portfolio concern, it may be moved to the Kanban of the Agile Release Train (ART) or Solution Train, as it may be more relevant at that level.

Initiatives that contribute to the portfolio’s vision and roadmap, including updates from the enterprise strategy or other portfolios, are identified and fed directly into the Kanban portfolio, which includes the Funnel. Additionally, the Continuous Exploration process plays a role in discovering user and market needs, often identifying epics that are then considered within the Funnel state.

Reviewing

During the “Reviewing” state, “Epics,” which are significant enterprise investments, are evaluated and refined. During this state, an Epic Owner takes responsibility for the epic and its definition.

In the “Reviewing” state, the primary focus is on defining the intent and purpose of the epic. The Epic Owner collaborates with relevant stakeholders to develop a comprehensive Epic Hypothesis Statement, which includes four main components:

1. Epic Description: This structured portion provides a high-level description of the epic in general terms, helping stakeholders understand its scope and purpose.
2. Business Outcome Hypothesis: This component outlines the anticipated quantitative or qualitative benefits that will be realized if the hypothesis behind the epic is proven true.
3. Leading Indicators: Early measures are identified during this stage, which can help predict the potential business outcomes of the epic. These indicators are crucial for tracking progress and success.
4. Nonfunctional Requirements (NFRs): Attributes such as security, reliability, performance, maintainability, scalability, and usability are defined as constraints or restrictions for the epic.

Additionally, in the “Reviewing” state, Work in Progress (WIP) limits may be specified, indicating the maximum number of epics allowed in this state simultaneously. If there is no available Epic Owner to work on the epic, it effectively serves as an implicit WIP limit, preventing unnecessary backlog buildup.

The “Reviewing” state also involves establishing preliminary size and cost estimates for the epic. This information calculates the Weighted Shortest Job First (WSJF) estimate, which helps prioritize the epic relative to other items in the reviewing state.

Finally, the epic undergoes review as part of the regular portfolio synchronization agenda. If there is sufficient knowledge and consensus that the epic is ready for further analysis and development, it may be approved to progress to the “Analyzing” state. However, if the epic does not appear viable or aligned with the portfolio’s strategic themes or guardrails, it is moved to the “Done” state. This decision frees up capacity for more promising alternatives within the portfolio.

Analyzing

During the “Analyzing” Kanban, promising Epics undergo in-depth evaluation and analysis to determine their viability and potential for further investment.

Several vital roles collaborate actively during the “Analyzing” state, including Business Owners, Enterprise Architects, System and Solution Architects, Product and Solution Management, and Agile Teams. This collaboration is essential to ensure a comprehensive assessment of the epic.

Key activities that typically occur during the “Analyzing” state include:

1. Identification and Review of Solution Alternatives: Various potential solutions or approaches are identified and thoroughly reviewed to determine the most suitable path for the epic.
2. Defining the Minimum Viable Product (MVP): The core features and functionalities required for the MVP are described, clearly understanding what needs to be developed initially.
3. Establishing Refined Cost Estimates: Precise cost estimates are calculated not only for the MVP but also for the full scope of the epic, allowing for better financial planning.
4. Creating the Lean Business Case: A Lean Business Case is developed, outlining the rationale, expected benefits, and financial aspects of the epic. This document plays a crucial role in decision-making.
5. Small Research Spikes: Research spikes are conducted to assess the technical and business viability of the epic. These spikes provide valuable insights into the feasibility of the proposed solutions.
6. Initial Customer Validation: Early validation with potential customers or stakeholders is carried out to gather feedback and ensure alignment with their needs and expectations.
7. Updating WSJF (Weighted Shortest Job First): The WSJF of the epic is recalculated concerning other epics in the “Analyzing” state. This helps in prioritizing and sequencing work effectively.

The decision-making process in the “Analyzing” state is more rigorous. The Lean Business Case and WSJF are used as a basis for the ‘Go/No-go’ decision by the Lean Portfolio Management (LPM). A ‘Go’ decision indicates that the epic is approved for implementation and will be sequenced using WSJF. In contrast, a ‘No-go’ decision moves the epic to the “Done” state, signaling it won’t proceed.

Typically, only a limited number of epics are in the “Analyzing” state at any given time and are subject to regular review by LPM. Since initiating and implementing an epic consumes valuable capacity, careful evaluation and alignment with strategic objectives are essential before progressing to the next stage. Additional considerations beyond WSJF, such as the Lean Business Case, are considered to make informed decisions. During portfolio synchronization meetings, LPM makes the final determination, ensuring that the Epics selected for implementation align with the organization’s goals and priorities.

Ready

Epics in the Analyzing state with the highest priority are pulled into the Ready state as soon as space is available. This is a low-cost wait state where Epics are periodically reviewed and prioritized by updating WSJF and other relevant factors.

Implementing

In SAFe Portfolio Kanban, the “Implementing” state represents the phase where epics are actively worked on by Agile Release Trains (ARTs) and Solution Trains for development. This phase involves breaking Epics into features and capabilities, pulling them into backlogs, and initiating Epic’s Minimum Viable Product (MVP) development.

The “Implementing” Kanban state in SAFe Portfolio Kanban signifies the execution phase of Epics within the framework. At this stage, the focus is on turning high-priority epics into tangible deliverables. Here’s a breakdown of what happens during this state:

• Epic Decomposition: The Epic Owner collaborates with various stakeholders to dissect the epic into smaller, manageable components known as Features and Capabilities. This decomposition process ensures that the epic’s objectives are translated into actionable work items.
• Backlog Inclusion: The features and capabilities resulting from the decomposition are then included in the backlogs of the responsible Agile Release Trains (ARTs) and Solution Trains. These backlogs serve as the prioritized lists of work items to be tackled.
• MVP Development: The primary goal during the “Implementing” state is to initiate the development of the Minimum Viable Product (MVP) associated with the epic. The MVP represents the core features and functionalities that will provide value to customers and users.
• Progress Monitoring: Throughout this phase, Lean Portfolio Management (LPM) closely monitors the progress of the MVP. This monitoring involves tracking leading indicators, Value Stream Key Performance Indicators (KPIs), and conducting demonstrations to assess the MVP’s business outcome hypothesis.
• Resource Allocation: It’s crucial to understand the available capacity within the ARTs, as the prioritization and sequencing of work are influenced by it. The Weighted Shortest Job First (WSJF) prioritization method is often used to decide which epics should advance to the MVP state based on capacity and value.
• Budget Considerations: The allocation of funds for the MVP is closely managed. The work on the MVP continues until the allocated budget has been expended or until the hypothesis associated with the MVP can be effectively evaluated.
• Adaptability: SAFe emphasizes adaptability, and organizations can adjust these rules and processes to suit their specific needs. Flexibility is essential to ensure that the framework aligns with the unique context and goals of the organization.

Implementing: MVP

In SAFe Portfolio Kanban, the “MVP” sub-state is a crucial phase within the “Implementing” Kanban state. It’s where Epics with the highest Weighted Shortest Job First (WSJF) advance to develop the Minimum Viable Product (MVP). The Epic Owner collaborates with Agile Teams during this sub-state to work on the MVP and evaluate its business outcome hypothesis.

The “MVP” sub-state encompasses the following key aspects:

• WSJF Prioritization: Epics that have the highest WSJF, which considers factors like value, time criticality, risk reduction, and opportunity enablement, are selected to move into the “MVP” sub-state. This prioritization ensures that the most valuable and time-sensitive work receives immediate attention.
• Epic Owner’s Role: The Epic Owner leads during the “MVP” sub-state. They collaborate closely with Agile Teams, which are responsible for implementation. Their primary tasks include overseeing the activities needed to develop the Minimum Viable Product and assessing the business outcome hypothesis associated with it.
• MVP Development: Work during this sub-state is focused on developing the Minimum Viable Product. The MVP represents the minimal features and capabilities that can be deployed to provide value to customers and users. It serves as a crucial step toward delivering the epic’s intended benefits.
• Budget Management: The work on the MVP continues until the allocated budget has been exhausted or until the hypothesis can be effectively evaluated. Budget management is a critical aspect of this sub-state to ensure that resources are optimally utilized.
• Adaptability: As with other aspects of SAFe, organizations can adapt the rules and processes of the “MVP” sub-state to align with their specific needs and circumstances. Adaptability allows organizations to tailor SAFe to their unique context.

Implementing: Persevere

In SAFe Portfolio Kanban, the “Persevere” sub-state is where epics advance if their associated business outcome hypothesis is proven true during the “MVP” sub-state. In this phase, teams continue implementing additional features and capabilities, with Agile Release Trains (ARTs) managing ongoing feature prioritization in various value streams.

The “Persevere” sub-state involves the following key elements:

• Hypothesis Validation: Epics that successfully validate their business outcome hypothesis during the “MVP” sub-state progress to the “Persevere” sub-state. This means that the MVP delivered the expected value and outcomes.
• Continuous Development: In the “Persevere” sub-state, teams continue to work on the epic by implementing additional features and capabilities. These enhancements contribute to the ongoing development and evolution of the epic.
• ART Responsibility: Agile Release Trains (ARTs) take on the responsibility of managing the ongoing prioritization of features within various value streams. This prioritization ensures that the most valuable work is continually addressed.
• “Done Enough” State: The goal in the “Persevere” sub-state is to reach a state where the epic is considered “done enough” to meet the needs and objectives. This means the Epic has delivered sufficient value and functionality to fulfill its intended purpose.
• WSJF Adaptation: Over time, as the epic matures in the “Persevere” sub-state, the WSJF prioritization may shift to prioritize new capabilities and features from other sources as higher priorities. This adaptive approach ensures that the portfolio remains aligned with changing business needs.
• Epic Owner’s Role: Epic Owners remain available to assist Agile Release Trains (ARTs) and Solution Trains responsible for implementation. Their involvement helps ensure that the epic continues to deliver value and meets evolving business requirements.
• Flexibility: SAFe allows organizations to adapt and tailor the “Persevere” sub-state to their specific needs and evolving contexts. This adaptability is a fundamental aspect of the SAFe framework, allowing organizations to optimize their Agile practices.

Done

In SAFe Portfolio Kanban, an Epic’s “Done” state signifies that it is no longer a portfolio concern. It can occur when certain conditions are met, such as ejection from the portfolio kanban, MVP results, or no need for additional portfolio governance.

The “Done” Kanban state in SAFe Portfolio Kanban is a significant milestone that indicates the status of an Epic from a portfolio perspective. It is essential to understand that achieving Epic’s “Done” state does not necessarily mean completing the entire scope outlined in the Lean business case. Instead, an Epic is considered “Done” when one of the following conditions is met:

• Ejection from Portfolio Kanban: An Epic can be considered “Done” if it is removed or ejected from the portfolio kanban by Lean Portfolio Management (LPM) at any of the earlier states within the kanban workflow. This may occur due to strategic shifts, changing priorities, or other reasons that make the Epic no longer relevant to the portfolio.
• MVP Disproves the Hypothesis: If the Minimum Viable Product (MVP) developed for the epic disproves the original business outcome hypothesis, the Epic can be considered “Done.” This means that the expected value or outcomes were not achieved, and further investment in the epic may not be justified.
• Hypothesis Proven, No Governance Needed: In cases where the hypothesis associated with the epic is proven to be true, LPM may determine that additional portfolio governance is no longer required. This decision may be based on the epic’s successful outcomes and alignment with portfolio objectives.

In scenarios where the epic reaches the “Done” state, it may still have some ongoing activities or responsibilities. Various Agile Release Trains (ARTs) may continue working on the epic, and the Epic Owner may be tasked with stewardship and follow-up. However, the epic itself is no longer a primary portfolio concern.

To keep LPM informed of the epic’s progress and outcomes, leading indicators, Value Stream Key Performance Indicators (KPIs), and Guardrails are utilized. These metrics help ensure that the portfolio remains aware of the epic’s status and any potential impacts on the overall portfolio strategy and goals.

Setting up a Portfolio Kanban Board

Define Columns and Swimlanes

In SAFe Agile, setting up a Portfolio Kanban Board begins with defining columns and swimlanes. Columns represent different stages of the portfolio management process, like “Backlog,” “In Progress,” “Review,” and “Done.” Swimlanes to categorize different initiatives, epics, or portfolios, providing a visual separation and organization of work items.

Identify Work Item Types

The next step is to define the work items that will be managed on the board, such as initiatives, epics, and features. Each work item type should have clearly defined criteria, including its purpose, size, and priority. This clarity ensures that all stakeholders have a common understanding of the portfolio components.

Establish WIP Limits

Setting Work in Progress (WIP) limits for each column is crucial to prevent overloading and optimize flow. WIP limits control the amount of work initiated, focusing the team on completing work items efficiently. This approach prevents bottlenecks and maintains a steady, manageable workflow.

Add Metrics and Visualizations

Incorporating relevant metrics and visualizations on the Kanban board, like cycle time, lead time, and cumulative flow diagrams, is essential. These metrics provide insights into the performance of the portfolio management process. They help teams to identify areas for improvement and make data-driven decisions.

Facilitate Collaborative Decision-Making

The final step is encouraging collaborative decision-making by involving all relevant stakeholders in the Portfolio Kanban board. This inclusivity ensures the alignment of the portfolio management process with the organization’s strategic goals. It enables effective prioritization and resource allocation, fostering a unified approach to portfolio management.

Implementing SAFe Portfolio Kanban

Define Portfolio-level Policies

The first step in implementing SAFe Portfolio Kanban is to define portfolio-level policies. This foundational action involves creating clear guidelines for managing the portfolio Kanban board. It encompasses setting criteria for initiating, prioritizing, and managing work items at the portfolio level. Additionally, it involves establishing roles and responsibilities for stakeholders, ensuring a structured approach to portfolio management.

Populate Portfolio Kanban Board

Once policies are set, the next step is populating the Portfolio Kanban board with relevant work items. This action aligns the board with the organization’s strategic goals and priorities. It’s essential to ensure work items are accurately represented on the board, with detailed descriptions, dependencies, and deadlines. This step effectively visualizes the organization’s strategic initiatives and promotes efficient workflow management.

Monitor and Manage Workflow

Continuous monitoring and managing the Portfolio Kanban board workflow are crucial. This involves tracking the progress of work items, updating their status, and managing dependencies and blockers in real-time. Utilizing metrics and visualizations on the Kanban board, such as cycle time and cumulative flow diagrams, is key to identifying bottlenecks, risks, and areas for improvement.

Collaboration and Decision-Making

Encouraging collaboration among stakeholders and facilitating decision-making at the portfolio level is essential for effective Portfolio Kanban implementation. The Kanban board is a visual aid for discussions, reviews, and prioritization sessions. Regular portfolio reviews are crucial for evaluating progress, ensuring alignment with strategic goals, and making informed decisions.

Continuous Improvement

The final step in implementing SAFe Portfolio Kanban is fostering a continuous improvement culture. Regularly reviewing and refining the Portfolio Kanban board and associated policies is vital. Encouraging stakeholder feedback and utilizing it to identify opportunities for optimization and innovation in the portfolio management process drives ongoing enhancements and adaptability.

How does the Portfolio Backlog feed into PI Planning?

The Portfolio Backlog feeds into PI Planning by providing the prioritized Epics, broken down into Features and User Stories, forming the basis of work for the Agile Release Trains during the upcoming Program Increment.

This key event has four critical intersections with the portfolio backlog:

1. PI Planning and Portfolio Backlog Prioritization: PI Planning helps Agile teams to understand and prioritize the most important work items in the portfolio backlog. The event allows for discussion and understanding of business goals, thus enabling teams to align their work items with these strategic objectives.
2. Refinement of Epics through PI Planning: During PI Planning, teams can refine and break down epics into features and user stories, providing additional details to the portfolio backlog. This results in a more effective implementation of the epics.
3. Visualizing PI Objectives in the Lean Portfolio Kanban: The PI Planning outputs, particularly the PI Objectives, can be visualized and tracked in the Lean Portfolio Kanban. This provides transparency into the progress of work across the organization.
4. Feedback Loop and Continuous Learning: PI Planning also serves as a feedback mechanism, allowing teams to learn and adapt their strategies based on the results of the previous PI. This feedback can then update and refine the portfolio backlog, leading to a more effective and efficient workflow.

What are the SAFe Core Competencies?

SAFe Core Competencies are a set of seven capabilities essential for achieving Business Agility.

The Scaled Agile Framework (SAFe) defines seven core competencies, and they are:

1. Lean-Agile Leadership: Inspires adoption of Agile practices.
2. Team and Technical Agility: Enhances team capabilities and technical skills.
3. Agile Product Delivery: Delivers customer value through fast, integrated delivery cycles.
4. Enterprise Solution Delivery: Manages large-scale, complex solutions.
5. Lean Portfolio Management: Aligns strategy and execution.
6. Organizational Agility: Enables quick, decentralized decision-making.
7. Continuous Learning Culture: Encourages innovation and improvement.

These competencies provide a roadmap for organizations to navigate their transformation to Lean, Agile, and DevOps practices.

What are the SAFe Principles?

The SAFe Principles are a set of ten fundamental principles derived from Lean and Agile methodologies that guide the implementation of SAFe.

SAFe principles are guidelines derived from Agile practices and methods, Lean product development, and systems thinking to facilitate large-scale, complex software development projects. The ten principles that make up the SAFe framework are as follows:

1. Take an economic view: This principle emphasizes the importance of making decisions within an economic context, considering trade-offs between risk, cost of delay, and various operational and development costs.
2. Apply systems thinking: This principle encourages organizations to understand the interconnected nature of systems and components and prioritize optimizing the system as a whole rather than individual parts.
3. Assume variability and preserve options: This principle highlights the importance of maintaining flexibility in design and requirements throughout the development cycle, allowing for adjustments based on empirical data to achieve optimal economic outcomes.
4. Build incrementally with fast, integrated learning cycles: This principle advocates for incremental development in short iterations, which allows for rapid customer feedback and risk mitigation.
5. Base milestones on an objective evaluation of working systems: This principle emphasizes the need for objective, regular evaluation of the solution throughout the development lifecycle, ensuring that investments yield an adequate return.
6. Make value flow without interruptions: This principle focuses on making value delivery as smooth and uninterrupted as possible by understanding and managing the properties of a flow-based system.
7. Apply cadence and synchronize with cross-domain planning: This principle states that applying a predictable rhythm to development and coordinating across various domains can help manage uncertainty in the development process.
8. Unlock the intrinsic motivation of knowledge workers: This principle advises against individual incentive compensation, which can foster internal competition and instead encourages an environment of autonomy, purpose, and mutual influence.
9. Decentralize decision-making: This principle emphasizes the benefits of decentralized decision-making for speeding up product development flow and enabling faster feedback. However, it also recognizes that some decisions require centralized, strategic decision-making.
10. Organize around value: This principle advocates that organizations structure themselves around delivering value quickly in response to customer needs rather than adhering to outdated functional hierarchies.