Reducing Overheads SAFe 4.5

Each SAFe portfolio provides a set of business solutions to run a business smoothly. There should be a confined operating budget to execute each portfolio, as the cost of operating each technical solution is a primary factor in every business. However, many traditional companies make out that, doing business using Lean-Agile development gives rise to an intrinsic conflict with the budgeting and project cost accounting methods. The result is worst and unproductive.

alignleftTo cope with this, SAFe provides strategies called Lean-Agile budgets. Lean-Agile budgets can directly solve this conflict of traditional project funding. With the Lean Budgets model, fiduciaries can keep control on the expenditures required for the project. Also, the model is empowered with the programs like rapid-decision making and flexible value delivery. This model can be productive for the enterprises in two ways:

  • Enterprises can yield the best development processes which form the foundation of all the marketing aspects.
  • Can manage the technology expenditures professionally.

According to Scaled Agile Institute, Lean-Agile Budgets can be defined as- 

“A set of practices that minimizes overhead by funding and empowering Value Streams rather than projects, while maintaining financial and fitness-for-use governance.”

According to the law by a fiduciary government for the development and delivery of IT, hardware and software, ‘every SAFe portfolio operates within a familiar and sanctioned investment expenditure’. This principle is applied to the products, services and any kind of solutions within a SAFe portfolio. The following figure illustrates how the traditional strategic planning process allows all portfolios to operate within a budget in an enterprise.

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