Establishing Lean Budgets
Traditional Project portfolio approaches inhibit the flow of value because of several factors, but here are some of the most common challenges that we encounter:
- Project cost accounting
- People are organized in functional silos
- Overly detailed business cases
- Projects governed by waterfall phase gates measuring task completion
If we are to operate in a Lean-Agile way, then we fundamentally need a different way to govern, which will require a mindset change at the portfolio level.
In this chapter, we will explore the following:
- The investment horizon model
- How to move away from traditional Project cost accounting to Lean-Agile budgeting
- How we can use the technique of participatory budgeting to help establish the funding for each Value Stream
