The best way to foster flow of value, innovation, and apply Lean budgeting in an enterprise is to implement the Lean Portfolio Management (LPM) core competency. LPM connects the Lean-Agile principles and practices to the business strategy of the enterprise1. It provides a governance and alignment model for the portfolios within the enterprise, ensuring that they are aligned and funded to create and maintain the solutions needed to meet business targets1.

LPM is one of the seven core competencies of the SAFe framework and is essential for achieving Business Agility. It involves three primary dimensions: Strategy and Investment Funding, Agile Portfolio Operations, and Lean Governance1. By implementing LPM, an organization can:

Align its strategy and execution by applying Lean and Agile principles at the portfolio level.

Establish a Lean-Agile budgeting model that supports the flow of value and enables innovation.

Use Portfolio Kanban to visualize and manage the flow of epics through the portfolio.

Support operational excellence and coordinate across value streams.

Implementing LPM allows an enterprise to adapt to the fast-changing market conditions and to deliver innovative solutions more rapidly, which is crucial for maintaining a competitive edge in the digital era1.