Lean Budgets is a set of practices that minimize overhead by funding and empowering Value Streams rather than projects while maintaining financial and fitness-for-use governance. This is achieved through objective evaluation of working systems, active management of Epic investments, and dynamic budget adjustments.
Each SAFe Portfolio exists for a purpose: to realize some set of Solutions that enable the business strategy. Each portfolio must work within an approved budget, as the operating costs for solution development are a primary factor in economic success.
Many traditional organizations quickly realize, however, that the drive for business agility through Lean-Agile development conflicts with current methods of budgeting and project cost management and accounting. The result may be that the move to Lean-Agile development—and realizing the potential business benefits—is compromised. Or, worse, it’s simply unachievable.
SAFe provides strategies for Lean budgeting that eliminates the overhead of traditional project-based funding and cost accounting. In this model, Lean Portfolio Management (LPM) fiduciaries have control of spending, yet programs are empowered for rapid decision-making and flexible value delivery. This way, enterprises can have the best of both worlds: a development process that is far more responsive to market needs, along with professional and accountable management of technology spending.